Inland waterway transport (IWT) is a highly competitive and sustainable sector that plays a vital role in the various pillars of the Clean Industrial Deal. The IWT sector calls upon the Commission to include inland waterway transport in the upcoming European Maritime/Waterborne Industrial Strategy, the European Port Strategy and the Sustainable Transport Investment Plan. Recognized as a highly competitive, energy-efficient, safe, and sustainable alternative to other transport modes, inland waterway transport helps alleviate congestion on overloaded road and rail networks for both goods and passengers. Europe’s new industrial future and circular economy depend heavily on IWT as carrier of the building blocks of the EU economy, including renewable fuels. Increasing cargo volumes on inland waterways can make a significant contribution to achieving the European Green Deal policy objectives.

A near-term transition to zero greenhouse gas (GHG) emissions in inland waterway transport is within reach through the widespread adoption of Hydrotreated Vegetable Oil (HVO). HVO as renewable drop-in fuel enables full decarbonisation and can be used immediately in existing and modern internal combustion engines to replace fossil diesel. Moreover, HVO is fully compatible with the current refuelling infrastructure. However, the shift is currently hindered by the inability to pass on the considerably higher price of HVO to customers, leading to competitive disadvantages compared to fossil fuel users.

In order to capitalise on the benefits and opportunities presented by HVO in the short term, it is essential to prioritise support for an annual supply of 1.6 million tons HVO for IWT at competitive pricing with diesel. This should be backed by a stable EU regulatory framework and coordinated efforts of EU Member States. This approach would deliver a viable business case to barge operators and represent a major step forward in the decarbonisation of IWT, aligning with the EU Green Deal and supporting the objectives of a modal shift.

Creating dependency on HVO as the sole energy source carries potential risks in terms of availability (demand competition from other modes and sectors) and price volatility. Consequently, it is recommended that other alternative fuel solutions such as battery-electric propulsion, methanol and hydrogen be developed concurrently to mitigate these risks and ensure resilience. The higher costs of these zero-emission energy solutions, both in terms of operation and capital, mean that regulation complemented by funding will be key to overcoming implementation barriers, ensuring legal certainty, fostering investment and expanding renewable fuel supply networks. A stable, technology-neutral regulatory framework combined with incentives for innovation is essential to achieving full decarbonisation