We examine how these regulations are reshaping the fuel market and the wider energy transition.

New European regulations are not only redefining the energy framework; they are also reshaping the very architecture of the market itself. Initiatives such as the Renewable Energy Directive III (RED III) and the FuelEU Maritime regulation form part of a broader legislative package designed to accelerate the decarbonisation of Europe’s energy system, directly affecting producers, traders, logistics operators and industrial consumers.

A new regulatory landscape for Europe’s energy sector

The European Union aims to achieve climate neutrality by 2050 and to reduce greenhouse gas emissions by at least 55% by 2030 compared with 1990 levels, as part of the European Green Deal.

This process is largely structured through the Fit for 55 legislative package, which combines renewable energy penetration targets, the expansion of the European carbon market (EU ETS), and sector-specific regulations covering areas such as transport, industry and aviation.

The rationale is clear: the energy system still accounts for more than 75% of the European Union’s emissions. Any credible decarbonisation strategy must therefore involve a profound transformation in the way energy is produced, distributed and consumed.

Within this regulatory framework, two measures stand out for their direct impact on the fuel market: RED III, which sets the EU’s overarching energy targets, and FuelEU Maritime, which focuses specifically on maritime transport.

The new RED III framework for fuels in Europe

The Renewable Energy Directive III, adopted in 2023, updates Europe’s renewable energy policy and significantly raises the level of climate ambition.

The directive stipulates that at least 42.5% of the European Union’s final energy consumption must come from renewable sources by 2030. An additional indicative target could raise this figure to 45%, should Member States step up their efforts.

In the transport sector, the directive introduces two possible pathways for Member States:

• achieving a 14.5% reduction in greenhouse gas emission intensity, or
• reaching at least 29% renewable energy in transport energy consumption by 2030.

RED III also promotes the development of new energy carriers, including:

• advanced biofuels
• renewable fuels of non-biological origin (RFNBOs), such as renewable hydrogen and certain e-fuels
• specific targets for the use of renewable hydrogen in industry

For companies in the hydrocarbons sector, this regulation does not imply an immediate replacement of traditional fuels. What it does establish is a framework for the gradual evolution of the energy mix, in which liquid fuels will continue to play a significant role for years to come, albeit alongside new lower-carbon solutions. In other words, RED III does not remove the role of the traditional energy sector, but it does clearly signal the direction in which it is expected to evolve.

Spain has not yet completed the transposition of the RED III directive. However, since May 2025 it has already been taken into account within international biofuel certification schemes such as ISCC.

FuelEU Maritime and the evolution of maritime fuels

While RED III sets the general framework, FuelEU Maritime represents a concrete application within one of the most energy-intensive sectors. Approximately 75% of the European Union’s external trade is transported by sea, making maritime transport a vital component of the continent’s logistics system.

However, it is also a sector that remains heavily dependent on fossil fuels. For this reason, the regulation (in force since 2025) aims to progressively reduce the emissions intensity of fuels used by ships operating in European ports.

The regulation promotes the use of renewable and low-carbon fuels (such as e-methanol, e-ammonia and certain biofuels) and forms part of a broader regulatory framework that also includes the EU Emissions Trading System (ETS) applied to maritime transport.

For the energy sector, this means that demand for maritime fuels will gradually diversify. Energy logistics, port supply chains and trading operations will need to adapt to a market in which different energy solutions coexist.

A sector in transition, not in replacement

It is important to understand that Europe’s energy transition is not taking place through the immediate substitution of one type of fuel for another.

Europe still depends significantly on liquid fuels to guarantee mobility, logistics and industrial activity. The transition will therefore be gradual, and both economically and technologically complex.

Over the coming decades, a range of energy solutions will coexist: conventional fuels (increasingly efficient), biofuels, synthetic fuels and emerging renewable energy solutions.

Ensuring security of supply, managing complex logistics chains and adapting to an evolving regulatory environment will remain key elements in the functioning of the European energy system.