To comply with required cuts in greenhouse gas emissions (GHG quota), the oil industry will in the next two years only be allowed to usecarboncredits from renewable energy and electricity achieved in the same year. This is a new provision in Germany’s 38th Federal Immission Control Ordinance that has been adopted by the Federal Cabinet. In principle, it is possible to save up surplus fulfilments of the GHG quota from the past and use them as an offset at a later date. The German government is taking this option off the table for 2025 and 2026. The new rules will enter into force before the end of this year.
Environment Minister Steffi Lemke: “Today the German government is sending a strong market signal to boost renewable energy in transport. With this immediate action, we are shoring up the trajectory for CO2 reduction in fuels and improving the economic situation of manufacturers of advanced biofuels and green hydrogen as well as charge point operators.”
The current reduction quota is 9.35 percent, and it will be gradually raised to 25 percent by 2030. To comply with the required GHG reductions, producers can opt, for example, for sustainable biofuels from waste or renewable synthetic fuels. The use of power in electric vehicles or green hydrogen in refineries also improves thecarbon footprint of the petroleum producer and can be counted towards its reduction target.
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