Green energy

EU path towards net-zero emissions

The European Green Deal aims to reduce greenhouse gas emissions by at least 55% by 2030. By 2050, Europe aims to become the world’s first climate neutral continent. This target is enshrined in law in the EU Climate Law. With regard to the transport sector, the Commission will publish a Sustainable Transport Investment Plan (STIP) in 2025, which will include short and medium-term measures to prioritise the promotion of specific renewable and low-carbon fuels for aviation and shipping, on which many energy-intensive industries rely. It will also accelerate the deployment of recharging infrastructure.

Meanwhile, new options for clean ship propulsion are being tested and implemented. The Commission recognises that the conversion of the fleet should be gradual due to the long lifetime of vessels. However, it hopes that smaller vessels and shorter distances on inland waterways, as well as the emergence of zero-emission propulsion technologies, will allow hydrogen and electricity to enter the market more quickly.

Decarbonisation of IWT within reach

A near-term transition to zero greenhouse gas (GHG) emissions in IWT is achievable through the widespread use of sustainable drop-in fuels, such as hydrotreated vegetable oil (HVO100). At the same time, the elimination of air pollutant emissions is possible with after-treatment equipment. The use of sustainable and renewable drop-in fuels allows complete decarbonisation without the need to modify existing engines or refuelling infrastructure. However, the switch is currently hampered by the inability to pass on the significantly higher price of HVO to customers, resulting in competitive disadvantages compared to users of fossil fuels. It is therefore imperative to ensure an annual supply of 1.6 million tonnes of sustainable drop-in fuels at diesel-competitive prices, which requires an EU regulatory framework and coordinated national efforts.

Mid-term scenario

Relying solely on renewable drop-in fuels carries potential risks due to the possibility of supply and price volatility. Consequently, it is recommended that other alternative fuel solutions such as battery-electric propulsion, methanol and hydrogen be developed concurrently to mitigate these risks and ensure resilience. The higher costs of these zero-emission energy solutions, both in terms of operation and capital, mean that regulation complemented by funding will be key to overcoming implementation barriers, ensuring legal certainty, fostering investment and expanding renewable fuel supply networks.

Alternative refueling

The EU adopted in 2024 a new Alternative Fuels Infrastructure Regulation (AFIR) as part of the Fit for 55 Package, on which Parliament and Council reached a deal in March 2023. Mandatory targets are proposed for shore-side electricity supply in sea and inland ports. All TEN-T core inland should install by 2025 at least one shore-side electricity facility, all TEN-T comprehensive inland ports should follow by 2030.

Green energy transport value chain

Priorities for INE

In the short term

INE calls on the EU institutions to prioritise an annual supply of 1.6 million tonnes of sustainable drop-in fuels at diesel-competitive prices for IWT, backed by an EU regulatory framework and coordinated national efforts.
Sufficient shore-side power is important to decarbonise inland waterway vessels at berth. Continued EU co-financing through the Connecting Europe Facility and other funding programmes is essential to install these expensive facilities. Two other important factors to be addressed are grid access at berth and sufficient grid capacity.

In the mid term

The national alternative fuel frameworks are welcome, but battery, hydrogen and other sustainable energy infrastructure should definitely be deployed in a corridor approach. Installing alternative refuelling infrastructure at every inland port is economically unviable and practically unnecessary. It could lead to oversupply in one region and undersupply in another, as inland ports are not evenly distributed along waterways.
The European corridors should be used to plan and coordinate the development of green energy corridors that meet the needs of waterway users, industry and geographical conditions. There is a double advantage in integrating water transport from the outset in the developing value chains for renewable energy, from production to end user. The best way to achieve upscaling is to create transport-energy corridors linking ports as energy hubs. A relatively small sector such as inland navigation will certainly benefit from economies of scale and cooperation to accelerate its transition. In addition, its potential as a high-volume carrier of renewable energy can be exploited.