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FETSA View: Expectations For The Next Legislative Mandate

FETSA’s executive director Ravi Bhatiani discusses the group’s expectations for the EU’s emissions targets and energy transition efforts.

The recent adoption by the European Commission of a new 2040 climate target of 90% emissions reductions, as well as continued energy transition efforts by the EU in developing hydrogen and CCUS infrastructure show that the energy transition planning continues at pace in Europe despite increasing criticism from many sectors – notably agriculture.

Political Will For The Energy Transition

The energy transition is not the only political priority. Initiatives like the Antwerp Declaration for a European Industrial Deal, as well as European Commission recommendations to include fossil fuel infrastructure investment plans in national policies, show signs that governments are starting to acknowledge the concerns of industrial stakeholders in policy making.

This being said, the overriding topic in international discussions continues to be the geopolitical volatility that the world is experiencing. There is an intense policy focus on the linked energy and supply chain disruptions that could result from Arctic, European, Middle Eastern and South China Sea conflict scenarios developing. This has put security of energy supply as a top agenda item for both the International Energy Agency and Europe as they prepare for worst-case scenarios.

This has triggered a huge amount of interest in the role of FETSA and its members on topics like stockholding obligations and security of supply for existing energy carriers (including natural gas), future energy carriers and critical raw materials in addition to the usual energy transition adaptation topics.

FETSA’s Role In Policy Changes

FETSA is regularly consulted by universities, military academies, governments (energy and foreign ministries) and international organisations on these topics. The group proactively discusses these topics with all interested stakeholders, including the EU, IEA and NATO. This gives FETSA a privileged position in policy making.

FETSA has turned into a key advisor to public authorities, in addition to being an advocacy based trade body. The group provides options and choices to policy makers, which then use FETSA’s
suggestions to make policy and new laws. A good example of this is FETSA’s work to ensure that storage is now listed in legislation as being a Net Zero Industry. This should be an enabler to attract external capital and facilitate permitting.

Read more here.


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