Energy prices must be reduced, bureaucracy must be eliminated and green solutions must be introduced. These are the main headlines of the European Commission’s proposal for a Clean Industrial Deal which was presented in Brussels.
Details of the Deal have been confirmed in a 24-page document released in Brussels on Wednesday (26 February). The Deal proposes, among other things, the launch of a new mechanism under the European Hydrogen Bank to de-risk investments in fuels for shipping.
The European Commission plans to launch the Hydrogen Mechanism under the European Hydrogen Bank in the second quarter of 2025 to “connect offtakers and suppliers, linking participants with financing and de-risking instruments to facilitate aggregation of offtakers’ demand for hydrogen and hydrogen-derived fuels.”
To de-risk and accelerate the uptake of hydrogen production in the EU, the Commission will launch a third call under the Hydrogen Bank in the third quarter of 2025 with a budget of up to €1bn.
“Leveraging EU and national ETS revenues is essential to build industrial capacity in Europe and to bridge the immense price gap between conventional and clean fuels that can be up to five times more expensive. In this regard, grants- and auctions-as-a-Service mechanisms can help pool national ETS revenues to support these objectives,” stated the European Community Shipowners’ Association (ECSA) in its release.
“EU member states must use the 9 billion of the shipping ETS revenues to support the production of clean fuels. We also urge the Commission to cut red tape and ensure an international level playing field,” said Sotiris Raptis, ECSA Secretary General.
The Deal positions decarbonisation as a powerful driver of growth for European industries.
The European Commission presented a raft of measures and recommendations intended to boost European industries and cut their greenhouse gas emissions.
According to the World Shipping Council (WSC), key aspects of the deal, including accelerating renewable energy deployment, promoting renewable and low-carbon hydrogen, and increasing EU-level funding for the clean transition, are critical to producing the green marine fuels needed to decarbonise shipping.
WSC cautions that current investments have been too low in key elements needed for green marine fuels, such as green hydrogen.
A record number of green-fuel-capable ships are hitting the water right now, but the supply of these fuels remains limited, and cost up to four times more than fossil fuels.
The WSC sees the Clean Industrial Deal as an opportunity for Europe to bridge the fuel price gap and build key infrastructure needed to drive transition.
“We’re really pleased to see investments in renewable energy, green hydrogen, and clean transport infrastructure prioritised today,” noted Joe Kramek, WSC president and CEO.
“If the Clean Industrial Deal is fully realised, it represents an opportunity for Europe to strengthen its position as a global shipping hub. As one of the world’s largest exporters, the EU’s economic power and global influence depend on shipping. However, without the necessary investment and commitment, the EU risks being left behind.”
The European Commission has promised new interventions to de-risk hydrogen investment and make energy affordable, as part of a Clean Industrial Deal which will mobilise over €100bn in the short term to support EU-made clean manufacturing.
“We know that too many obstacles still stand in the way of our European companies from high energy prices to excessive regulatory burden. The Clean Industrial Deal is to cut the ties that still hold our companies back and make a clear business case for Europe,” commented European Commission President Ursula von der Leyen.
