EU war on truck emissions to boost LNG but oil demand impact limited

Tackling growing road transport emissions is one of the EU’s biggest challenges in meeting its long-term climate change commitments. The European Commission’s recent proposals to set CO2 emissions standards for new large trucks from 2025 could be good news for companies like Italy’s Snam offering LNG – or even bio-LNG — as an alternative fuel. But the impact on oil demand seems likely to remain minor, estimated at around 170,000 barrels per day from 2020 to 2040. S&P Global Platts editors Siobhan Hall and Frank Watson discuss the trends in transport energy demand as EU policy-makers seek to lower oil use to cut emissions, improve urban air quality and reduce oil import dependence.

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