Abstract

The European Union (EU) has set power-to-liquid (PtL) targets to advance energy transition and achieve a 90% reduction in transport emissions by 2050. At the EU level, the recent amendments to the Renewable Energy Directive (RED III), together with the ReFuelEU Aviation Regulation and the FuelEU Maritime Regulation, define these PtL targets, which are also subject to implementation at the national level. However, the interaction between EU targets and national implementation strategies remains complicated. This article investigates the case of Germany, in which national PtL quotas for aviation fuel exceeded EU obligations and evaluates the revision of these PtL quotas in Germany. 

To understand the role of PtL targets in achieving climate goals, this article investigates the interaction between RED III targets and specific PtL aviation and maritime quotas. Considering EU PtL targets as policy instruments, this article examines whether it is possible to implement more ambitious PtL targets for aviation and maritime at the national level within EU policy objectives. Key findings highlight the main types of policy instruments used for PtL targets as well as the interaction between RED III targets and PtL aviation and maritime quotas.

The article concludes that the EU regulatory framework provides a foundation for PtL market development. However, successful implementation of PtL targets requires a coordinated approach to balancing the EU targets with national regulatory flexibility, as well as consistent approaches for specific markets such as aviation and maritime. For effective deployment of PtL technologies and decarbonisation of the transport sector, understanding the interaction between RED III, ReFuelEU Aviation Regulation, and FuelEU Maritime Regulation is essential.

This paper will be part of the OGEL Special Issue on "Clean Energy Projects and Risk Mitigation". More information here www.ogel.org/news.asp?key=841