<article><p class="lead">Germany's parliament, the Bundestag, passed a <a href="https://direct.argusmedia.com/newsandanalysis/article/2216524">new biofuels law</a> yesterday, transposing the recast of the Renewable Energy Directive (RED II).</p><p>The country's greenhouse gas (GHG) emission reduction obligation is now scheduled to increase to 25pc by 2030, from 6pc currently. Obligated oil companies will have to significantly increase the use of renewables in transport while the amount of crop-based biofuels that can be counted towards the blending mandate will be capped at 4.4pc with palm oil-based biofuels banned from 2023 onwards, the German environment ministry said today. It joins <a href="https://direct.argusmedia.com/newsandanalysis/article/2018258">France</a>, <a href="https://direct.argusmedia.com/newsandanalysis/article/2181022">Austria</a> and <a href="https://direct.argusmedia.com/newsandanalysis/article/2165298">the Netherlands</a> who will not allow palm oil as raw material for transport biofuels from 2022 onwards.</p><p>The minimum share for biofuels made from advanced feedstock listed in Annex IX part A of RED II will increase to 2.6pc by 2030, from close to nothing currently, the BMU said. Anything above the minimum share will be eligible for double-counting apart from biofuels made from palm oil mill effluent (POME), which will be excluded.</p><p>The use of POME, currently categorised as advanced feedstock, is considered as "not expedient", the Bundestag said, urging the government to demand a removal of POME from Annex IX part A of RED II in the upcoming negotiations on the RED II in Brussels. Promoting the use of POME — a waste product of palm oil production — in Europe would give a wrong incentive, according to the Bundestag.</p><p>Biofuels made from animal fats category 1 and 2 can be counted towards the quota for the first time from next year, while the use of waste-based biofuels produced from feedstock listed in Annex IX part B will be capped at 1.9pc.</p><p>The use of green hydrogen in transport and refineries can be double counted, and green electricity used to charge electric cars can be counted threefold towards the German GHG quota.</p><p>Upstream emission reduction (UER) projects can be counted towards the country's blending mandate until and including 2026.</p><p>The use of green hydrogen made from biogenic sources will be revisited in 2026. </p><p>"We go far beyond what is required from the EU with the new quota for climate-friendly fuels", environment minister Svenja Schulze said. "In the future, only those technologies that are efficient and make traffic really sustainable will be funded: electromobility in road traffic, advanced biofuels made from waste and residues and green hydrogen in refineries. We specifically promote synthetic fuels where non-fossil alternatives are lacking, for example in air traffic," she said. </p><p class="bylines">By Sophie Barthel</p></article>
