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Methanol Institute is calling for a ‘well-to-wake’ approach in GHG accounting of fuels


26 Aug 2021



In connection with the Fit for 55 legislative package proposed by the European Commission, the Methanol Insitute (MI) has published a position paper calling on policy-makers to adopt a ‘well-to-wake’ approach in greenhouse gas (GHG) emissions accounting of fuels, to support the decarbonization of maritime transport.

MI believes an approach that accounts for GHG emissions of the fuel’s entire value chain is essential to stimulate the uptake of renewable fuels that can drive the maritime industry’s energy transition.

The increased integration of low carbon and net carbon neutral fuels at an accelerated rate is fundamental to attain the decarbonisation targets laid out by the European Union and the International Maritime Organization, aimed at protecting Earth’s climate from harmful greenhouse gas emissions. To effectively stimulate the uptake of fuels that will drive the maritime industry’s energy transition, policymakers must employ mechanisms that account for the GHG emissions of the fuel’s entire lifecycle. The arguments laid out in this position paper support the Methanol Institute’s policy recommendation of applying a well-to-wake approach in GHG accounting of maritime transport on the basis of three key implications: i) Policy should present investment signals to foster innovation and renewable power generation at scale to address the reduction of GHG emissions based on the entire environmental profile of fuels to avoid incentivizing the large-scale reallocation of GHG emissions to upstream fuel production processes; ii) The burden of decarbonization should belong to the entire maritime sector; iii) The imminent threat of climate change and the associated fast-approaching targets require a mechanism that supports the uptake of sustainable fuels without delay; and iv) Not only should policy present investment signals it should incorporate incentives.

The full position paper is available here: