Europe is faced with an inflationary supply chain crisis due to the commercial road transport sector being heavily impacted by the unprecedented threat to fuel prices and energy availability.
With escalating gas fuel prices, especially for LNG, economic dislocation in the transport sector is inevitable. Trucking companies must not be discouraged from considering cleaner fuel alternatives to diesel, like bio-LNG. The growth potential of biomethane production relies on a strong and sustainable NGV market. Limiting its development is the antithesis of the EU’s Green Deal and its ambition to accelerate the decarbonization of the transport sector.
What’s at stake:
- 3,200 European transport companies relying on biomethane-powered fleets
- 31,000 CNG and LNG trucks on the road
- CO2 reductions of 776,000 tons per year with bio-CNG and bio-LNG
- 326 million tons of goods moved annually
NGVA Europe asks governments to stabilize CNG and LNG prices in Europe urgently in order to support the transport sector and the communities that depend on them by considering the following actions:
1) Reduce energy taxes and excise duties to ensure CNG/LNG prices are stabilized and do not exceed the level of petrol and diesel;
2) Establish rescue funds to protect transport companies operating bio-CNG and bio-LNG vehicles from economic dislocation or possible bankruptcy;
3) Include bio-CNG and bio-LNG in incentive policies such as road user charges, zero-emissions zones, etc. to avoid unfair market distortions oriented toward zero-tailpipe-emission vehicles;
4) Prioritize renewable energy subsidies to stimulate biomethane fuel production in support of the Green Deal targets;
5) Use taxation and tax relief as a means to support the market uptake of low and zero-carbon fuels by not applying energy taxes and excise duties on the renewable component of the fuel.
Timm Kehler, President of NGVA Europe said: “Without immediate support, there will be a devastating domino effect on national economies and businesses alike, which also will have a lasting, negative impact on the environment. Transport companies relying on bio-CNG and bio-LNG need urgent clarity on fuel price deterioration so they do not lose faith in the most reliable, low carbon technology currently available for heavy-duty trucking.”
Source: NGVA Europe