A move to allow trucks to use more green fuels in order to hit carbon reduction targets (the Carbon Correction Factor) has been rejected by the European Parliament.
The rejection of the CCF has been welcomed by shipping groups as allowing land transport more extensive use of green fuels to meet carbon targets would put pressure on hard-to-decarbonise sectors, such as shipping, to meet theirs.
Danish maritime lobby group Danish Shipping expressed satisfaction with the vote's outcome.
"CCF, if implemented, would have hastened the adoption of green fuels in the trucking industry on land," Danish Shipping said in an emailed statement.
However, Danish Shipping cautions against allowing trucks to run on synthetic fuels in their bid to be climate neutral.
"The broadened definition of climate neutral fuels raises concern by allowing trucks running on synthetic fuels." If trucks can use these fuels, shipping's access to them will be squeezed.
"Increasing the CO2-targets for heavy-duty vehicles and excluding the CCF is a strong signal for upcoming negotiations," the group said.
Danish Shipping's Nina Porst has urged regulators to stand firm on the definition of climate neutral fuels in the negotiations which are expected to be concluded early next year.