Higher greenhouse gas reduction quota for transport fuels applies in Germany

Germany’s greenhouse gas reduction quota for transport fuels has increased as planned as of 1 January 2022. Mineral oil companies must now reduce the emissions of their fuels by 7 percent compared to 2010 (2021: 6%). They most commonly use – and due to easy availability will likely continue to use – biodiesel, bioethanol and biomethane for this purpose, the German Biofuel Industry Association (VDB) writes in a press release. The use of biofuels can also help reduce costs for emission allowances under the German CO2 price on heating and transport fuels, the VDB said. As of 1 January 2022, one tonne of CO2 costs 30 euros under this scheme, up from 25 euros in 2021.

Emissions from the transport sector have not fallen in Germany since 1990, making it the only sector that has not achieved any greenhouse gas reductions. Germany has had a binding quota for transport fuels since 2007, which is to grow to 25 percent by 2030 according to legislation passed in 2021. The greenhouse gas reduction quota is one means of cutting emissions from road transport. Companies that supply fuel in Germany are obliged to reduce the greenhouse gas emission of all the products they place on the market by a certain percentage – this is called the greenhouse gas reduction quota. They fulfil this obligation, inter alia, by placing renewable energy products on the market. With the 2021 legislation, the government put an emphasis on achieving these cuts by promoting electric mobility rather than the increased use of biofuels. It also banned the use of palm oil in the tank as of 2023.