EU's 2040 Climate Target 'Provides Long-Term Investment Security': Bunker Holding

CEO Keld Demant suggested the EU's direction of travel may have an influence on the IMO's outlook for global GHG emissions targets for shipping. Image Credit: Bunker Holding

Marine fuels conglomerate Bunker Holding has welcomed the European Commission's recommendation of a 90% GHG emissions reduction target for 2040.

The target, which includes shipping, was set in the European Commission's recommendations for the EU's climate law on Tuesday.

"We welcome this communication and commitment from the EU as it provides long-term investment security for us to engage in partnerships, last-mile delivery arrangements, facilities, and promise of prioritised supplies of alternative fuels to the shipping industry," Bunker Holding said in a LinkedIn post on Wednesday.

"Especially the fact that the Commission proposes alternative fuels, including advanced biofuels and e-fuels, should be prioritised for the shipping sector."

CEO Keld Demant suggested the EU's direction of travel may have an influence on the IMO's outlook for global GHG emissions targets for shipping.

"We expect that the EU will be leading by example in the crucial negotiations ahead of us at IMO," Demant said in the post.

"Bunker Holding is fully committed to deliver on our promise of being the industry's preferred partner in supplying the low- and zero-emission fuels of the future."

European shipping body the ECSA also welcomed the proposals.

"It's the first time we see such a strong commitment to give shipping priority access to low- and zero-emission fuels such as advanced biofuels and e-fuels," Sotiris Raptis, secretary general of the ECSA, said in a statement on the organisation's website on Tuesday.

"The price gap is immense, as the cost of sustainable fuels can be four times higher compared to fuels currently used in shipping.

"We look forward to working with the Commission to translate this commitment into immediate action, and to leverage the earmarked ETS revenues through dedicated calls already under the current Innovation Fund."