Netherlands plans changes to biofuels law

Market: Biofuels
02/12/20

The Dutch government plans to introduce ambitious changes to the country's biofuels legislation in order to implement the EU's revised Renewable Energy Directive (RED II).

A draft law published this week plans to incrementally lift the Dutch biofuel quota, which stipulates the minimum energy share of renewables in transport, from 16.4pc in 2022 to 27.1pc in 2030.

The energy share of crop-based biofuels that obligated parties can count towards the quota will be capped at 1.2pc from 2022, down from the current cap of 5pc.

The energy share of biofuels produced from used cooking oil (UCO) and animal fats is planned to be capped at 8.4pc with double counting from 2022, well above the limit of 3.4pc for double counting laid out in the RED II. As the use of waste-based biofuels accounted for around 70pc of total renewable energy in transport in 2019, the Dutch government sees the limit laid out in the RED II as a substantial restriction on the use of these biofuels.

The minimum energy share of advanced biofuels produced from feedstock listed in Part A of Annex IX of the RED II will be set at 1.7pc in 2022 and increase on a yearly basis to 7pc — double-counting included — in 2030.

Obligated parties will not be able to use biofuels produced from food and feed crops with a high risk of indirect land use change (ILUC) — namely palm oil — to fulfil the Dutch blending mandate from 2022.

Advanced and waste-based biofuels will remain eligible for double counting towards the achievement of the national blending target, but the double-counting mechanism for waste-based biofuels will be phased out from 2025.

The draft law also introduces an annual obligation for suppliers of heavy fuel oil and diesel for inland shipping by obliging suppliers to take part in the renewable fuel unit (HBE) scheme.

From 2022, only advanced biofuels supplied to maritime shipping will be eligible for HBE generation. A pending decision of the Dutch government about the use of renewable energy in shipping in 2021 is likely to have a similar result.

Unlike Germany and France, the Dutch government is not planning to introduce a quota for biojet.

The draft law is being discussed within the government and consultations with industry associations will continue until 6 January. The RED II directive will have to be implemented into Dutch law by 30 June 2021.

By Sophie Barthel

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