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RED III trilogue deal maintains the role of sustainable biodiesel in EU climate objectives

RED III trilogue deal maintains the role of sustainable biodiesel in EU climate objectives
Ecobränsle, a Swedish producer and distributor of RME biodiesel.

On 30 March, EU negotiators reached a deal on the revision of the Renewable Energy Directive (RED III), an outcome that has been welcomed by the European Biodiesel Board (EBB).

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Amongst other things, the provisional agreement includes a strong 42.5 percent renewables target for 2030 (+2.5 percent aspirational), coupled with a 14.5 percent greenhouse gas (GHG) emission reduction target for transport, increasing the EU’s decarbonization ambitions.

While EBB says that it still needs to analyze the text’s fine print, it already recognizes the “significance of the higher overall renewables target”, which represents an important signal to the market, and will foster additional investments in the sector.

Moreover, the higher ambition for the transport sector, with a 14.5 percent GHG intensity reduction target, up 1.5 percent from the initially proposed 13 percent, is “a greatly needed but realistic target that will require all sustainable renewable energy sources to contribute.”

To deliver on these ambitious targets, EBB says that it is also pleased that the cap on crop-based biofuels is maintained at the 2020 consumption level – with a max of 7 percent – and the framework for crops remains stable until 2030.

As the leading renewable energy source in transport in 2020, biodiesel will be instrumental in delivering the 2030 objectives. Regarding waste and residues, the continuation of double counting for Annex IX-B feedstocks also “recognizes the key role these raw materials have in today’s EU decarbonization efforts.”

Notably, negotiators also took on board EBB’s views on reinserting the option for farmers to use regional average values for cultivation emissions (NUTS II), which alleviates administrative burden while still allowing those that want to use actual values to do so.

The biodiesel industry delivers sustainable food, feed, bio-sourced products, and biofuels for all transport modes. We are pleased to see that the RED III negotiations delivered ambitious and stable EU legislation, namely by confirming the role of crop and waste-based biodiesel in the decarbonization of the European transport sector. The higher ambitions now adopted will require all renewable technologies and fuels to step up, this is now our focus, stated Xavier Noyon, Secretary-General of EBB.

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