Thord Stefan Backe, member of the European Economic and Social Committee, charts the transition to a long-term sustainable transport system to achieve climate neutrality in Europe by 2050
For some time, the EU has aspired to lead the green transition – including transport – by aiming to achieve climate neutrality in 2050. The Fit 55 package is seen as an important step in this process by allocating a 55% reduction in emissions CO2 by 2030 is a legal obligation.
These triads are progressing well – most recently agreeing on amendments to the emissions trading system, which includes land transport, maritime transport and aviation, as well as the EU’s aviation proposal, where an interim agreement has just been reached.
These agreements clearly demonstrate a high level of ambition to decarbonize transport, as do the recently adopted rules on CO2 emission levels for cars and small trucks, and the recently submitted proposal to strengthen the rules on CO2 emissions from heavy vehicles.
The European Union has proven that it is capable of using the “stick” to deal with all these points. For example, the EU’s mix of aviation-related obligations and rules on eligible sustainable fuels is perhaps the most stringent in the world.
Sustainable aviation fuel
But there are still some problems. ETS, fuel and CO2 regulation combined mean increased costs. For example, current production of sustainable aviation fuel worldwide is about 25 million tons, while aviation needs will be between 350 and 450 million tons by 2030 under agreed rules.
These fuels also cost four times more than the kerosene currently used. According to the airline association, Airlines for Europe (A4E), the cost of ensuring sustainable aviation fuel by 2030 will reach €20 billion.
Concretely, this means reduced competitiveness for European airlines and increased ticket prices and freight costs.
The situation is different in the United States under the Inflation Act, simply because the financing is there to boost fuel production and support airlines to reduce additional costs. The Commission is considering such “carrot” or support initiatives, but the proposed resources are very limited.
Key aspects of the Green Deal to create a sustainable transportation system
This brings me to the essential elements that I, and indeed the entire Economic and Social Committee, in the opinion on the green transition for transport adopted in April 2023, consider the essential elements of the Green Deal to be a success rather than a dead letter. .
For us, the key for the Green Deal to succeed and for the EU to take the lead in the green transition is public and business buy-in. They must be prepared to meet the target of reducing emissions by 90% by 2050 and, in particular, the means used to achieve this goal.
We see three main conditions for this success:
First, companies need to feel that they are not burdened with excessive costs and that they will remain competitive inside and outside the EU. Second, employees must view the transition as acceptable and have a real possibility to adapt to the new working conditions in a socially acceptable way. Third, citizens – in both urban and rural areas – must be guaranteed access and mobility at reasonable costs and under good general conditions.
This means, for example, that the framework must look realistic and attractive across all parts of the transport sector – zero-emission or low-emission solutions for aviation or heavy road transport must appear feasible and financially attractive to consumers and businesses.
Requirements for alternative fuels vary in Member States
Regarding alternative fuels, it is also necessary to remember that conditions vary between Member States. For example, Sweden, Finland, Estonia and Italy are struggling to reach a better deal on biofuels – and so far have had very limited success. In fact, technology neutrality is essential because of the diversity of Member States and because the long-term perspective of a sustainable transport system means the emergence of new solutions and new means of payment, which requires openness and focus on results.
Drive positivity in the transportation sector
At the European Economic and Social Committee, we highlight the importance of sending positive signals, such as promoting multimodality by getting the best out of every situation and enhancing efficiency through digitalization and improved capabilities, for example.
Coherence is also essential, for example, between the development of sustainable fuels and the necessary distribution infrastructure.
Social sustainability is another key element, including good accessibility at a reasonable price, employee involvement in the green transition and broad consultation with all concerned.
There may be a risk of a backlash if there is too much pressure and too little real encouragement in the actions taken to implement the Green Deal.
It would be great if measures taken in the EU to implement the Green Deal were seen as more attractive to businesses and individuals.
The focus should be on how best to get results from a sustainable transport system, with more emphasis on encouragement rather than restrictions!
