Climate Policy Engagement Analysis
Climate Policy Engagement Overview: Fluxys is engaged on climate policy, taking mixed positions overall. The company has communicated support for climate action in its top-line messaging. However, Fluxys has mixed engagement with climate-related regulations and the energy transition, by continuing to advocate for a role for fossil gas with an unclear timeline.
Top-line Messaging on Climate Policy: Fluxys’ top-line messaging on climate policy is positive. On its corporate website accessed in January 2023, it appeared to support the goals of the Paris Agreement and the EU Climate Neutrality objective. The company’s position on the need for climate regulation is mixed. In its comments on the EU renewable energy rules – review policy page from September 2020, it appeared to broadly support regulatory frameworks in relation to the energy transition, however, in Fluxys Belgium’s Annual Financial Report, 2021, the company did not appear to take a position on regulations such as the ‘Fit for 55’ package.
Engagement with Climate-Related Regulations: Fluxys appears to have mixed engagement with climate-related regulations. In its comments on the EU renewable energy rules – review policy page from September 2020, it appears to support specific proposals, surrounding renewable and low-carbon gases, from the revision of the Renewable Energy Directive (RED II). However, it is unclear if it supports the other proposals from the revision. In tweets from June 2022, the company also appears to support the RePowerEU package and more specifically support its 2030 hydrogen targets related to renewable hydrogen production and importation. Dunkerque LNG, a subsidiary of Fluxys, also appeared to support the inclusion of hydrogen and its derivatives in the EU Carbon Border Adjustment Mechanism (CBAM) in its consultation comments from June 2022. Fluxys did not appear to take a clear position on the EU Emissions Trading System (ETS) in its comments on EU renewable energy rules – review policy page.
Positioning on Energy Transition: Fluxys takes mixed positions on the energy transition, however, it continues to promote a role of fossil gas without defining a timeline. Fluxys appears to support an increased role for hydrogen and biofuels such as biomethane in its comments on the Clean energy - an EU hydrogen strategy policy page, from June 2020. In the same policy response, the company appears to promote green hydrogen but also suggests a role for blue hydrogen dependent on Carbon Capture and Storage (CCS).
However, in Fluxys Belgium’s Annual Report 2021, published in April 2022, it appears to support a role for LNG and bio-LNG as alternative fuels in sectors such as shipping and transport with no mention of CCS or methane abatement measures. In the same report, the company also appears to largely promote both options together as similar alternatives . Comments made by Fluxys on the EU Green Deal - Revision of the Energy Taxation Directive in November 2021 also appear to advocate for reduced taxation of fossil gas compared to other fossil fuels.
Industry Association Governance: Fluxys publicly discloses a limited list of industry association memberships on its website, without providing details on the type of membership and role within each industry association, their climate policy position, how the company influences or attempts to influence their climate policy positions, governance processes for assessing and/or resolving potential cases of misalignment. The company has not published a review of its industry association memberships. The company excluded memberships to industry associations including Hydrogen Europe and Gas Infrastructure Europe (GIE) both of which take mixed positions on climate policy, with GIE continuing to promote the long-term role of fossil gas.