Executive Summary

The European Green Deal sets out an objective of resource efficiency, reaching zero emissions by 2050 and protecting, conserving and enhancing the EU’s natural capital, with an intermediate target of a 50 to 55% reduction of emissions by 2030. The European Commission adopted a set of proposals to make the EU’s climate, energy, transport, and taxation policies fit for reducing net greenhouse gas (GHG) emissions by at least 55% by 2030, compared to 1990 levels. 1 In the fishing sector, this translates to a reduction of 30% by 2030 compared to 2005 levels. 2, 1 The Farm to Fork Strategy is at the heart of the European Green Deal, aiming to make food systems fair, healthy and environmentally friendly.

This GHG emission reduction objective in the EU occurs while fuel use is an essential component of the fisheries’ economy. Some fisheries are unprofitable without subsidies, but fuel-intensive fisheries can also be profitable when the landed species are highly priced - even with high fuel expenses. Most EU fisheries’ dependency on fossil fuels impairs their long-term economic profitability and resilience, and there has been no incentive to reduce absolute fuel consumption in the sector until recent years. The situation has worsened since the combined shocks of the COVID-19 pandemic and the Russian invasion of Ukraine caused oil and gas prices to soar in 2022. Fishers in Europe acknowledge their energy dependence on unreliable external sources. Hence, sustainable fisheries and normative management are crucial to developing incentives toward reducing fuel use and increasing the incentives for implementing lowcarbon or carbon-neutral alternatives to support the decarbonisation of the marine capture fishing sector.

This report investigates technical and strategic solutions to reduce fuel use in the EU fleet sector and aims to support the energy transition of the EU fleet. There are existing solutions to reduce fuel use in fisheries, from technical solutions ( Subsection 2.3 and Appendix F ) to more extensive changes such as phasing out the more energyhungry fishing techniques and practices. The study identifies emissions reduction potential from fuel savings when fisheries implement existing technical solutions, switch toward the least fuel-intensive fishing techniques, use green energy, and reduce or avoid indirect emissions by changing fishing grounds and displacing the more detrimental practices pressuring the seabed from carbon-rich habitats. Such actions should ultimately reduce CO 2 emissions released into the atmosphere to help achieve the

2030 and 2050 environmental targets for the EU fishing sector.

This work aligns with supporting the requirements of the EU Common Fisheries Policy (CFP) 3 and the European Maritime and Fisheries Fund (EMFF) Regulation in financially supporting the implementation of the CFP and the sustainable development of EU fisheries, with a priority objective in “ Promoting environmentally sustainable, resource-efficient, innovative, competitive and knowledge-based fisheries .” 4 The CFP also includes provisions for EU Member States (MS), when distributing fishing opportunities among the fishing agents, to provide incentives for using energyefficient fishing vessels.

In relation to the direct consumption of fuel burnt by vessels whilst fishing, the study confirms that bottom trawling is the most intensive fishing technique in most cases in the EU , independent of vessel size. Based on these findings, the study suggests re-allocating the fishing effort currently used by bottom trawling to other fleet segments and estimates that this could translate in million litres of fuel saved each year and in turn, help reduce the harmful emissions of the EU fishing sector.

Related to the indirect release of marine carbon from the disturbance of bottom-contacting gears sweeping the seabed, here the study found that a tremendous amount of carbon currently stored in deep sediments is likely released by fishing activities touching the seabed. This may represent 10 to 15 times the amount of direct fuel burnt by fishing activities . However, significant uncertainties in those estimates require further research at different geographical scales. Such uncertainty also pertains to the gain (or risk) of displacing fishing efforts outside the identified blue carbon habitats.

The report identifies both short-term and strategic, long-term actions towards reducing fuel use. In the short term, the key finding is to recognize that reducing the GHG emissions of fisheries to reach a 30% reduction of direct emissions by 2030 is achievable . The target is reachable through a combination of different means, such as (i) fishing effort re-allocation to the least fuel intensive fishing techniques and phasing out the most energy-inefficient fishing techniques , such as mobile bottom-contacting gears.

(ii) Banning mobile bottom-contacting gears in existing Marine Protected Areas (MPAs) that have high carbon storage potential , as they are shown to have the most potential to disturb carbon storage. While also ensuring the avoidance of indirect CO 2 emissions and further degradation of carbonrich habitats by protecting and removing harmful fishing pressure from any identified “blue carbon” habitat. (iii) Reducing direct fuel consumption using alternative green fuels , refrigerants or innovative vessel propulsion with lower GHG emissions, and a myriad of other technological innovations such as newly, optimised gears, also to increase the catch for the same amount of fuel consumed (i.e. catch efficiency improvements).

In the long term, progress toward emissions reduction objectives needs to be secured with evidence-based, normative management, together with realistic funding opportunities to support the energy transition and compensate for the socioeconomic effects on producers and dependent retailers, as well as taxes on fossil fuels. These will incentivise the sector to change practices, unlock barriers and limit the risk of an unwished “rebound” effect whereby the fishing sector’s savings are not used to disinvest from fossil fuel use. Funding the energy transition, reducing and re-allocating fishing efforts while phasing out fuel use subsidies is key

Meanwhile, funding is also required to support the industry with capital to ensure the implementation of innovative solutions, which may be costly in the short-term (eg., electrification). However, accessing funding is too-often dependent on the existing quantity and health of fish stocks in fisheries. The current situation does not allow for companies to invest in better fishing practices that could ultimately help restore fisheries using energy transition grants or subsidies. 6 Recovering and maintaining the good health of fish populations are unavoidable prerequisites for a successful energy transition .

Without delay, we recommend that the European Union Institutions and MS ensure the following short-term 2023-2030 actions , prioritising the implementation of win-win actions with environmental co-benefits. This includes significantly reducing the contact of gears with the seabed, phasing out any bottom-contacting gears, and incentivising a switch toward other types of gears, as well as:

Robust data collection and research to help inform and develop a monitoring programme designed to collate accurate and standardized data on fuel consumption at the vessel level, using different types of innovative gears and optimised vessel specifications.

Implementing and improving the uptake of existing technologies proven to lead to fuel savings (such as optimising the vessel shape and equipment to reduce water resistance of towed nets, Subsection 2.3 and Appendix F ), as well as further research to develop and implement close-to-market, innovative and energy-efficient technologies (gear and vessel types, fishing operations).

An extensive regulatory effort to introduce fossil fuel taxes, replace subsidies that do not incentivise reducing fuel consumption, improve health and recovery of fish stocks, promote the small-scale fishing sector over the large scale fisheries, implement the current fisheries legislation to enable the EU Commission to submit proposals on areas intended to be protected jointly, and account for regional specificities and tailor-made actions in the context of the EU CFP regionalisation.

Dedicated financial instruments to fund the energy transition towards a carbon-neutral fishing sector in Europe. For example, funding could be used to reinvest money earned from fossil fuel taxes into supporting research and innovations, as well as to compensate stakeholders for the transition costs.

We further recommend that the European Union institutions and MS take longer-term 2023-2050 actions, to:

Support the development and implementation of innovative energy-efficient propulsion technologies (alternative fuel, electrification, wind-assisted propulsion), while continuing to restrict and phase-out proven energyinefficient fishing techniques. This also requires scaling up alternative gears and lowering fuel intensity to reduce adverse risks brought on by alternative gears.

Continue to identify negative side effects of some fisheries regulations (including subsidies), and identify barriers to unlock with policy solutions.

Implement stringent restrictions in already designated MPAs, that overlap with high carbon stores and create new MPAs based on protecting and restoring blue carbon habitats, accompanied by cost-efficient tools for enforcing them.

Improve the EU’s political soft power with MS and leadership in international climate policy , such as by pushing international leaders to decarbonise their fishing fleets, and continue the push for more renewable, affordable energy (electrification, green fuels and wind energy).

Implement a vessel buyback program for energy-inefficient vessels and push MS for efficient regional action plans to further reduce excess fishing capacity or imbalanced fleets.

Promote side-by-side comparison through a sustainable fishery ecolabel , and the development of a carbon footprint scoring system to influence retailers and seafood consumers to shift towards products sourced using sustainable, low-carbon fishing techniques and practices.