Eurofuel Newsletter - October
Dear members and friends of Eurofuel,
As we enter the final months of 2026, discussions around Europe’s energy transition are increasingly focused not only on decarbonisation, but also on affordability, energy security and the practical challenges of transforming Europe’s existing building stock.
The recent State of the Union address, the European Commission’s Affordable Housing Act and the ongoing discussions on RED IV all point to the importance of finding solutions that can work in different buildings and different local circumstances. For Eurofuel, this is particularly relevant to the millions of households living in existing homes where the transition to lower-carbon heating needs to be affordable and technically feasible.
The role of renewable molecules is also becoming increasingly part of this discussion. Recent policy exchanges on RED IV highlighted that renewable fuels can complement electrification where direct electrification is not feasible. This is an important perspective as Europe considers its post-2030 energy framework.
At the same time, developments at the national level remain important. Germany’s recent roadmap towards the phase-out of fossil fuels, including its approach to climate-neutral heating fuels, shows how Member States are developing their own pathways towards 2045.
In this newsletter, we look at these developments, as well as the latest situation in the oil market and some upcoming events that may be of interest to our members.
I wish you an interesting read.
Martin Reichard
President, Eurofuel
State of the Union: affordability and energy independence remain key priorities
On 16 September, European Commission President Ursula von der Leyen presented the Commission’s priorities for the year ahead in her State of the Union address.
Energy prices, competitiveness and Europe’s energy independence featured prominently in the speech. Von der Leyen stressed the importance of affordable, home-grown energy and referred to renewables, nuclear, biomethane and other domestic energy sources. She also highlighted the need for a technologically neutral approach while increasing Europe’s energy independence.
For the heating sector, the focus on affordability is particularly relevant. The cost of the energy transition and its impact on households will remain an important consideration as the EU and Member States implement further climate and energy measures.
The State of the Union also highlighted the Commission’s housing agenda, including the new Affordable Housing Act.
Affordable Housing Act: focus on affordability and existing buildings
On 9 September, the European Commission presented its Affordable Housing Act, together with a Commission Recommendation on housing affordability and supply in areas under housing stress.
The package aims to support Member States and local authorities in addressing housing affordability and availability. The Recommendation places particular emphasis on increasing the supply of affordable housing, making better use of land and existing buildings, and simplifying planning and permitting procedures.
The focus on existing buildings is particularly relevant to the heating sector. Renovation and the decarbonisation of existing homes can involve high costs and technical constraints. The affordability of both renovation and heating solutions will therefore remain an important consideration as Member States implement their building and climate policies.
For Eurofuel, the housing agenda reinforces the importance of considering different solutions for existing buildings and ensuring that the transition remains affordable for households.
Germany: roadmap towards climate-neutral heating fuels by 2045
Germany published its Roadmap for Transitioning Away from Fossil Fuels on 23 September. The roadmap sets out the policy framework and strategies for achieving climate neutrality and moving away from the use of fossil fuels by 2045.
For heating, the German government is proposing a framework under which fuels used for heating buildings would need to become fully climate-neutral by 2045. The proposed approach includes a green gas/green oil quota and a gradual increase in the use of bio-components from 2029. The details of the green gas quota are expected to be set out in separate legislation.
The development is relevant for Eurofuel members as Germany considers how climate-neutral fuels can contribute to the decarbonisation of existing buildings alongside other heating solutions.
RED IV: renewable fuels can complement electrification
On 29 September, Eurofuel attended a policy panel discussion on “Preparing for RED IV – how can renewable energy deliver for heating, industry and rural communities?”
Paula Rey García, Head of Unit for Renewables and Energy System Integration Policy (ENER.C.1) at the European Commission, highlighted that green molecules are expected to complement electrification where direct electrification is not feasible, particularly in sectors such as heating and transport. Affordability was also highlighted as an important consideration.
For buildings, she stressed that the immediate priority is to implement the existing legislative framework, while RED IV is still under development, with simplification and flexibility among the issues being considered.
The discussion was relevant to Eurofuel’s work on renewable liquid fuels and the decarbonisation of existing buildings. It also underlined the importance of considering complementary energy carriers alongside electrification, particularly where technical or economic conditions make full electrification more challenging.
Oil market: supply remains stable while prices remain a concern
On 29 September, the European Commission’s Oil Coordination Group reviewed the latest developments in the oil market. The Commission reported that EU supply remains stable for the time being, although global market tightness continues to put pressure on prices.
The Commission also noted that EU emergency oil stocks remain high and that several Member States are taking measures to ease the price burden, particularly for vulnerable consumers. The next Oil Coordination Group meeting, including industry representatives, is scheduled for 15 October.
For Eurofuel, the discussion is relevant in the context of energy affordability and security of supply, which remain important considerations for households and the wider heating sector.