WORKING GROUP RENEWABLE FUELS

As reported in the MLC Position Paper, CNG will still be the most readily accessible competitor to fossil fuels for many years to come, boasting excellent “environmental” performance and currently unparalleled operating economy and reliability
.

For this reason, it is essential that
EU, national, regional and local institutions ensure a balanced allocation of resources
for both investment and management, taking into account the timing of development and deployment of different technologies and related facilities.

Excise taxes and incentives, which directly impact vehicle operating costs, should be calculated by favoring
solutions that ensure low emissions (not just locally) and decarbonization, such as biomethane, electricity from renewable sources, or green hydrogen
.

The industrial production of vehicles, important components (e.g., batteries) and plants must be approached with an expanded logic of the type
Life Cycle Analysis
,
which takes into account all stages from raw material extraction to final recovery and disposal (cradle to grave)
: for example, initial analyses by the Polytechnic University of Milan have shown that electric vehicles, with the upstream impacts related to lithium and rare earth collection, treatment, and transport, and downstream impacts related to battery and motor disposal, have economic, environmental, and social advantages and disadvantages that require further investigation.

Investment, especially public investment, in the establishment of refueling networks/stations, must be
consistent with technology deployment capabilities and pursued consistently with respect to policies initiated, as in the case of LNG/CNG refueling networks
.

In this context, because of its ability to give immediate results with respect to the issues of environmental sustainability, investment and operating costs, reliability, and flexibility of use, it is important to encourage the development of CNG in road transport in Italy
:

1. in its various versions (CNG for cars and urban vehicles and LNG for freight vehicles and suburban buses), mainly favoring:
   • The use of bio-methane (free of fossil CO2 emissions) through incentives for its production and favorable excise taxes on its consumption;
   • The purchase of CNG vehicles (cars, vans, trucks and buses) through incentives;
   • The development of retrofit for cars and heavy vehicles converted to Dual Fuel[1] through incentives and other forms of support[2].
2. The Completion of the national networks of CNG/LNG stations., particularly along highways and at strategic junctions in the road network and in areas of central and southern Italy (currently still lacking or undersized), encouraging investment in the creation of new facilities by operators through subsidized financing and/or incentives.
3. The
   Supporting the domestic industry of the vehicle, component and plant supply chain,
   favoring:
   • La
     research, development and innovation
     , especially through the
     tax credit
     and other forms of investment support;
   • The
     development of the internal market
     with the support of
     targeted and appropriate incentives
     (as reported in the previous points);
   • The
     international market
     , advocating the interests of the supply chain in all institutional fora (starting with the European Union) and fostering entry into ever new countries interested in this technology.

Attached is the letter dated Jan. 31, 2022 from the associations sent to the government on the topic of thermal engines and fuels.