The Renewable Energy Directive (RED II) is the legal framework for the development of renewable energy across all sectors of the EU economy. The revision of RED II increases the share of renewable energy in the EU’s overall energy consumption from 32 percent to 42.5 percent by 2030 with an additional 2.5 percent indicative top up that would allow  consumption to reach up to 45 percent.

RED II affects all sectors of the EU economy. In particular, RED II has set specific targets for the transport sector. Member States can choose between:

• Setting a binding target of 14.5 percent reduction of greenhouse gas intensity in transport from the use of renewable fuels by 2030 or;
• Setting a binding target of at least 29 percent share of renewables within the final consumption of energy in the transport sector by 2030.

Furthermore, the revision sets up an additional binding combined sub-target of 5.5 percent advanced biofuels (biofuels not derived from food-based feedstocks) and Renewable Fuels of Non-Biological Origin (RFNBOs) in the share of renewable energies supplied to the transport sector. Last but not least, in conjunction with FuelEU there is a minimum requirement of 1 percent RFNBOs in the share of renewable energy supplied to the shipping sector in 2030.

RED II also specifies the sustainability and greenhouse gas emissions saving criteria for biofuels, bioliquids and biomass fuels. The GHGs emission savings criteria from the use of biofuels and bioliquids and RFNBOs in the transport sector are:

The revision of Energy Taxation Directive (ETD) will remove outdated exemptions and incentives for the use of fossil fuels and especially in EU maritime transport. The updated rules will pave the way for the transition from fossil fuels towards cleaner renewable fuels. The current legislative proposals are mainly focused on:

• A new structure of tax rates based on the energy content and environmental performance of fuels. Minimum tax rates will be based on the energy content (expressed in Euros per GJ).
• Extending the taxable base with the inclusion of additional products and removing current exemptions and reductions.

As per current proposals the minimum tax rates of fuels used for transport, will be set as follows:

• For conventional fossil fuels and non-sustainable biofuels, a minimum tax rate of €10.75/GJ;
• For LNG, LPG and RFNBOs derived from fossil fuels, €7.17/GJ — for a transitional period of 10 years — before being taxed at the same rate as conventional fossil fuels;
• For sustainable biofuels, a minimum rate of €5.38/GJ;
• For advanced sustainable biofuels and biogas, RFNBOs such as e-hydrogen and related fuels for a transitional period of 10 years — a minimum rate of €0.15/GJ.

The new regulation for the deployment of alternative fuels infrastructure (AFIR), sets mandatory targets for the deployment of:

1. Refueling points at ports for liquefied natural gas (LNG).

2. EU ports to provide a minimum shore-side electricity supply for seagoing containerships and seagoing passenger ships, working together along with the FuelEU regulation.

3. Member States to develop draft national policy frameworks (NPFs) for the development of the market as regards alternative fuels in the transport sector.

In particular, by 1 January 2025, member States shall ensure that an appropriate number of refueling points for LNG are put in place at TEN-T core maritime ports.

TEN-T is EU’s trans-European transport network policy, a key instrument for the development of efficient and high-quality transport infrastructure across the EU. TEN-T consists of two layers, the core and the comprehensive network. The first includes the most important connections linking major cities and nodes and shall be completed by 2030. The latter connects all regions of the EU to the core network and needs to be completed by 2050.

Furthermore, in conjunction with FuelEU Regulation, by 1 January 2030, member States shall ensure that at least in TEN-T maritime ports, shore-side electricity infrastructure shall be developed for seagoing containerships and passenger ships. In more detail, TEN-T core and TEN-T comprehensive ports for which the annual number of port calls over the last three years, by seagoing containerships and seagoing ro/ro passenger ships is above 100 and 40 respectively, shall be equipped to provide each year shore-side electricity supply for at least 90 percent of the total number of port calls of seagoing container ships and seagoing ro-ro passenger ships of above 5,000 gross tons (gt).

The third key measure of AFIR is the development of National Policy Frameworks (NPFs) focused on the development of the market regarding the alternative fuels in the transport sector and the deployment of the relevant infrastructure. In that order, by 1 January 2025, member States shall prepare and send to the Commission a draft NPF that will contain at least:

• An overview of the planned initiatives for the deployment of infrastructure for alternative fuels in maritime ports, such as for electricity and hydrogen;
• A deployment plan for alternative fuels infrastructure in maritime ports other than liquefied methane and shore-side electricity, for instance hydrogen and ammonia;