The EU REDIII introduces a revised target of at least 42.5% renewable energy in the overall energy consumption in the EU across all sectors by 2030; up from 32% in EU REDII. It also includes notable changes to renewable fuel obligations in the transport sector, including aviation. The following outlines the most significant changes in the EU REDIII pertinent to transport.
The Renewable Energy Directive is the main legal framework for the development of clean energy across all sectors of the EU economy. It requires EU Member States to use a certain percentage of renewables in their total energy consumption with an overarching aim of reducing overall greenhouse gas (GHG) emissions. The transport sector, including aviation, falls under the EU RED application scope. The first version was adopted in 2009, and superseded by a revised version in 2018 (“EU REDII”). The EU REDII was recently revised and published in the Official Journal as of 31 October 2023 (“EU REDIII”). Obligations under EU REDIII and RefuelEU Aviation will come into effect in 2025.
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The EU REDIII introduces a revised target of at least 42.5% renewable energy in the overall energy consumption in the EU across all sectors by 2030; up from 32% in EU REDII. It also includes notable changes to renewable fuel obligations in the transport sector, including aviation. The following outlines the most significant changes in the EU REDIII pertinent to transport.
Changes in obligation on fuel suppliers in the transport sector
The EU REDIII includes revised obligations on fuel suppliers to reinforce the regulatory framework of each member state for renewable energy use in transport:
- At least a 29% share of renewable energy in the final consumption of energy by 2030 or at least 5% greenhouse gas intensity reduction by 2030, compared to the baseline set out in Article 27(1).
- The combined share of advanced biofuels and biogas is 1% in 2025, and 5.5% in 2030 with at least 1% being renewable fuel of non-biological origin.
Changes in energy content multipliers for advanced biofuels
Advanced biofuels and biogas produced from the feedstocks listed in Part A of Annex IX for the aviation and maritime transport modes shall be considered to be 1.2 times their energy content. Regarding the renewable fuels of non-biological origin, a multiplier of 1.5 times their energy content will be applied.
Additional sustainability criteria for renewable fuels
Biofuels, bioliquids, and biomass fuels produced from agricultural biomass shall not be made from raw material obtained from land with a high biodiversity value. In addition to the categories mentioned in RED II, such as primary forest and other wooded land, highly biodiverse forest and other wooded land, areas protected by the law to safeguard nature, species, ecosystems, and highly biodiverse grassland, the EU RED III also added heathland.
National policies for biomass energy production shall also take measures to minimize adverse impacts on biodiversity, the environment, and the climate, in addition to disruptions to the biomass raw material market. The Member States shall also design support schemes to avoid incentivizing unsustainable pathways and distorting competition with the material sectors. The use of woody biomass is regulated to ensure its highest economic and environmental added value.
Greenhouse gas reductions requirements
Energy from renewable fuels of non-biological origin shall be counted towards Member States’ shares of renewable energy and the targets. only if the greenhouse gas emissions savings from the use of those fuels are at least 70%. Energy from recycled carbon fuels may be counted towards the greenhouse gas intensity reduction target by 2030 only if the greenhouse gas emissions savings from the use of those fuels are at least 70%.
The methodology for assessing greenhouse gas emissions savings from renewable fuels of non-biological origin and from recycled carbon fuels shall ensure that no credit is given for carbon captured from fossil sources that has already received an emission credit under other provisions of law.
The full text of the EU REDIII in the Official Journal can be accessed via this link.