This report contains main developments in fuel quality and emissions legislations in the EU and EEA, including those at the MS levels.

Analysis

United Kingdom

France

Germany

Italy

Spain

Portugal

Sweden

Netherlands

United Kingdom,France,Germany,Italy,Spain,Portugal,Sweden,Netherlands,EU

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The European Union&rsquo;s (EU) drive to promote environmental and energy policies and contain the effects of climate change, is at its peak. Key policies and legislation are due to be implemented to reach the EU&rsquo;s goals to achieve a 55% CO2 emissions reduction target by 2030, relative to 1990 levels (also known as the &lsquo;Fit for 55&rsquo; Package), and to become the first net zero carbon continent by 2050.
Ambitious environmental and energy targets have undoubtedly affected fuel quality, vehicle emission standards and energy efficiency, with increasingly ambitious legislation adopted or being prepared at EU and national levels. During the previous years, Stratas Advisors has observed numerous major developments such as a shift from diesel to less polluting gasoline fuels, promotion of &lsquo;clean fuels&rsquo; with high blends of biofuels and synthetic fuels playing an ever-increasing role, but also a growing share of alternative fuels. EU is set to adopt Euro 7, further tightening vehicle emission requirements from 2025, as well as increasingly demanding overall emission reduction goals leading to a de facto ban on the sale of light-duty vehicles (LDVs) with internal combustion engines (ICE) from Jan. 1, 2035. This is a double challenge to automotive manufacturers, which are required to implement significant adjustments.
2021 and 2022 have been eventful years with regard to EU legislative and regulatory developments related to fuel quality, overall emissions reduction, vehicle emission requirements and energy efficiency.&nbsp;On July 11, 2021, the European Commission (EC) proposed the &lsquo;Fit for 55&rsquo; Package, a legislative bundle affecting 12 EU directives and regulations pertaining to energy and transport and aiming to deliver massive decarbonization of the European energy and transport sector within the next 15 years. Most of the proposed legislation started its legislative procedure in 2022, undergoing review and debate within the European Parliament (EP) and the Council of the EU, which are both to adopt their proposed amendments and positions and then participate in Trilogue negotiations to agree on a final version of the legislation.&nbsp;
Furthermore, Directive 98/70/EC (also known as the Fuel Quality Directive or FQD) is under review at EU level and is expected to be approved in 2023.&nbsp;An increase in the maximum allowed FAME content in conventional diesel from B7 to B10 is among the main expected changes of the FQD.
Since the last report&nbsp;(see Insights, <a href="~/link.aspx?_id=AEB766A626B949A3B78005C04749EED6&amp;_z=z">Jan. 29, 2021</a>), there have been new developments related to fuel quality and vehicle emissions in seven EU MS: Croatia, Czech Republic, Finland, France, Lithuania, Slovenia and Spain. Among these, Croatia, Czech Republic, Finland and Spain revised their national fuel quality legislations.&nbsp;Across Europe, E10 has been progressively rolled out since 2009. So far, 15 EU MS have officially adopted E10, whereas the share of E10 in total gasoline sales is higher than 90% in seven MS. More EU MS, such as Poland, Ireland and Austria, are planning to introduce E10 in the near future. The U.K. introduced E10 in September 2021 in Great Britain, and in October 2022 in Northern Ireland.
All diesel fuel sold in the EU contains biocomponents. In 2020, 86.2% of the diesel fuel sold in the EU is B7, whereas B7+ had a market share of 13.8% (see figure below). This was a significant change compared to 2019 and 2018, when B7 had a market share of 99.2%, with B7+ accounting for the remaining 0.8%.&nbsp;
Diesel Blend Shares in the EU (2018-2020) <img alt="" />
<img alt="" src="https://cdn.aglty.io/stratas-advisors/upload/blobid0.png" style="margin-bottom: 20px;" />
Source:&nbsp;EU Fuel Quality Monitoring Report (2018-2020),&nbsp;January 2023
The full report examines key developments and significant changes that have occurred regarding key aspects of the EU regulatory framework on conventional and alternative fuels, the implementation of legislation in the MS, vehicle emission and fuel efficiency (CO2) requirements and future developments affecting the transportation sector.
The report covers the following topics:
<ul style="background-color: #ffffff; margin-left: 16px;">
<li style="padding-left: 15px;">Relevant EU policy and legislation changes in energy and transport;</li>
<li style="padding-left: 15px;">Developments in relation to the FQD and its upcoming revision;</li>
<li style="padding-left: 15px;">MS implementation of the FQD and its deviations;&nbsp;</li>
<li style="padding-left: 15px;">Gasoline and diesel grades available in the MS, and their biofuel blending levels;&nbsp;</li>
<li style="padding-left: 15px;">Specifications of CNG, LPG and other alternative fuels;&nbsp;</li>
<li style="padding-left: 15px;">Non-road diesel specifications;&nbsp;</li>
<li style="padding-left: 15px;">Fuel additives;&nbsp;</li>
<li style="padding-left: 15px;">Energy taxation; &nbsp;</li>
<li style="padding-left: 15px;">Vehicle emissions and fuel efficiency; and</li>
<li style="padding-left: 15px;">Restrictions on diesel vehicles and potential future bans on ICE vehicles.&nbsp;</li>
</ul>

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Increasingly Ambitious Legislations to Encourage Rapid Transition in Fuel and Automotive Industries of EU Member States

C:\PS\Output\ContentFiles\Stratas-SiteCore-analysis\Content-Increasingly Ambitious Legislations to Encourage Rapid Transition in Fuel and Automotive Industries of EU Member States.txt

<ul>
<li>12 key EU directives and regulations are being replaced or amended as part of the Fit for 55 package announced in July 2021 and currently under deliberation and approval at EU level;</li>
<li>This wide-ranging legislative bundle - covering renewable energies, emission reduction, emission trading, fuel quality, energy efficiency, alternative fuel infrastructure and sustainable maritime transport &ndash; is expected to further increase the level of environmental and climate ambition of EU legislation, which is already the highest in the world;</li>
<li>Directive 98/70/EC (also known as the Fuel Quality Directive or FQD) is under review at EU level and is expected to be approved in 2023;</li>
<li>An increase in the maximum allowed FAME content in conventional diesel from B7 to B10 is among the main expected changes of the FQD;</li>
<li>All diesel fuel currently sold in the EU contains biocomponents with B7 accounting for most of the sales, but B7+ grades are also gaining significant market share increases;</li>
<li>As of January 2023, EN 15940:2016+A1:2018+AC:2019 &lsquo;Paraffinic diesel fuel,&rsquo; has been transposed by all EU Member States (MS), where hydrotreated vegetable oil (HVO) blends or HVO100 are commercially available at least in nine MS;</li>
<li>There are a total of 15 EU MS selling E10 gasoline, while its share of total gasoline sales is higher than 90% in seven MS;</li>
<li>Euro 7 &ndash;&nbsp;presented on Nov. 16, 2022 and planned to be implemented from 2025 &ndash; is set to introduce overall stricter vehicle emission requirements not only limiting to tailpipe emissions, but also covering battery performance for EVs and PM emissions from brake pad abrasion.</li>
<li>Euro 6 is also being updated, with Euro 6e entering into force on Sept. 1, 2023;</li>
<li>Groundbreaking requirements for car manufacturers in terms of vehicle emissions reduction targets and benchmarks for production of zero- and low- carbon emission vehicles are in place;</li>
<li>The popularity of diesel vehicles continued to rapidly decrease to about 17% of new passenger car (PC) registrations in 2022, down from a peak of 55% registered just 10 years earlier; and</li>
<li>Electric and hybrid PCs are becoming more and more popular in Europe, as their combined share in Q3 2022 reached 31.1%, almost doubling the share of diesel cars (16.5%).</li>
</ul>

Biofuels 

XTL 

Alternative Fuels 

Vehicles

Biofuels ,XTL ,Alternative Fuels ,Vehicles

Europe

Fuels & Markets

Eastern Europe

Mediterranean Europe

Northwest Europe

EU,Eastern Europe,Mediterranean Europe,Northwest Europe