Draft Ordinance Energy in Transport open for consultation - main elements

02-12-2020 | 27.1% by 2030 - that is the proposed share of renewable energy in the Netherlands transport, according to the recent draft 'Besluit Energie Vervoer' (Ordinance Energy in Transport), published by the Netherlands Government and now open for public consultation.

Information on the consultation, closing January 6, 2021 ais provided at the end of this news item.

A copy of the Draft Besluit can be downloaded here.

Main elements in the draft Besluit

What are the main elements mentioned in the draft Besluit?

Covered time period

The draft Besluit covers the years 2022 to 2030.

For 2021 a separate Besluit has been published. See the official announcement.This builds on the RED1 legislation. The obligation is set at 17.5%, an increase of 1.1%-pt to the 2020-level. Conventional biofuels are limited to max 5%. The minimum share for advanced biofuels (from Annex IX-A feedstocks) is 1.2% (including double counting).

The annual obligation in the draft Besluit

In 2022 the obligation is set at 16.4% (equal to 2020-level, lower than 2021 level). In 2023 it climbs to 17.4% (lower than 2021 level). in the following years it climbs linearly to 27.1%.

The limit for conventional biofuels

Throughout the 2022-2030 period, the share of conventional biofuels are limited to 1.2% of the total energy consumed in Netherlands transport. Use of palm oil based biofuels is not possible, given the European qualification for palm als a high ILUC risk feedstock, unless the players oil is certified for a low ILUC risk.

The sub-target for advanced biofuels

The minimum share of biofuels produced from residues and wastes, as mentioned in annex IX-a in RED-II (see document in Platform library here) will grow from 1.7% in 2022 to 7.0% in 2030 (including double counting, so in physical terms it represents at least 3.5% in 2030).

The limit for biofuels from used cooking oil and animal fats (Annex IX-B)

Throughout the 2020-2030 period, the use of biofuels from used cooking oil and animal fats is limited to 8.4% (including double counting, reflecting a physical share of 4,2%). This reflect more or less the actual volumes of these biofuels in 2019.

The category 'other'

The renewable energy in transport is divided in four categories, three of which have been discussed above (conventional, advanced biofuels and Annex IX-B). the remains category 'other' contains the following fuels and energy carriers:

• renewable electricity
• gaseous renewable fuels [1] , described in the Besluit as hydrogen[2] on basis of renewable electricity. In the consultation one could point out that also methane from renewable electricity should fall under this category,
• liquid renewable fuels [1], and
• liquid biofuels from crops that don't entail a risk of expansion of agricultural land (catch and cover crops)

This share of fuels  and energy carriers of this category is determined by the gap between achieved shared of the other categories and the annual obligation percentage. As an example, in 2030 is the obligation 27.1%. If conventional contributes 1.2%, annex IX-B establishes 8.4%, advanced biofuels deliver 7%, the necessary share of 'other' is 11.5% (27.1-1.2-8.4-7).

Registration of renewable electricity

The Besluit widens the registration option for renewable electricity. Not only for road transport, but also for inland shipping the option is possible. Also rules around metered charging points are widened to allow more supply of electricity.

A third addition is the introduction of a 'direct-line' option, which enables accounting for the supply of  100% renewable electricity instead of applying the average renewable share in Dutch electricity grid. The supplied renewable electricity may not have recieved exploitation subsidy. The Besluit follows the multiplier for electricity as mentioned in RED2, which means multiplying the supplied renewable electricity with a factor 4.

In the explanatory note that accompanies the draft Besluit it is stated that for 2030 it is assumed that 4.18 PJ renewable electricity will be registered in the system of the Netherlands Emission authority. This is based on the 2020 Climate and Energy Exploration (KEV2020) by the Netherlands Environmental Assessment Agency (PBL) which assumed in 2030 12.6 PJ of electric mobility, of which 47% of the electricity is assumed to be registered.

Inland shipping, seagoing shipping and aviation

• For inland shipping a 5 PJ biofuel deployment (in 2030) has been agreed in a "Green Deal Inland Shipping, Maritime Shipping and ports". The inland shipping is now part of the national obligation.
• The international shipping and aviation sector are not part of the annual obligation. For shipping the Besluit excludes the sector from the obligation. For aviation it is stated that the fuel 'kerosene' is not a fuel covered in the obligation (only diesel, gasoline and heavy fuel oil are covered in the Besluit)
• For both sectors the opportunity exists to register Renewable Energy Units (HBEs) for fuels supplied in these sectors. The opportunity ends on 1 january 2025 at the latest, unless sector specific policy makes earlier ending possible
• For maritime shipping the opportunity to register Renewable Energy Units is only possible for advanced biofuels (Annex IX-A)
• In the Regeling (Regulation) the multiplier factor for use of renewable energy in shipping and aviation will be set. It can consider to use multipliers higher than 1, or use multiplier lower than 1, depending on the desire to support utilization (in aviation), or to prevent large scale use when the implementation of national targets are at stake (a possibility seen for shipping)

Internet consultation - deadline 6 January 2021

The Ministry of Infrastructure and Water Management has opened the internet consultation to receive comments and feedback on the draft Besluit.

Reactions can be submitted via https://www.internetconsultatie.nl/redii_besluit_energie_vervoer_kalenderjaren_2022_2030

The ministry also organises a digital information event (in Dutch). Purpose of the meeting is to pose questions, but not meant to submit positions. The event is planned on 9 december 2020 from 09:30 to 11:00. Registration is possible via https://forms.gle/kCudJKsnyGyUSNhi6

Notes:

[1] It is important to note that where in Dutch text the word 'renewable fuel' is used it is represents 'renewable fuels on non-biological origin'.
The Wet Milieubeheer (Law on environmental management) uses a different definition on renewable fuels and biofuels than is described in the Renewable Energy Directive (2). The Directive definition (1) in article 2 states: ‘energy from renewable sources’ or ‘renewable energy’ means energy from renewable non-fossil sources, namely wind, solar (solar thermal and solar photovoltaic) and geothermal energy, ambient energy, tide, wave and other ocean energy, hydropower, biomass, landfill gas, sewage treatment plant gas, and biogas'. and other that definition two subcategories for fuels are defined: (33) states: ‘biofuels’ means liquid fuel for transport produced from biomass. Definition (36) indicates how non-biological renewable fuel are to be defined: ‘renewable liquid and gaseous transport fuels of non-biological origin’ means liquid or gaseous fuels which are used in the transport sector other than biofuels or biogas, the energy content of which is derived from renewable sources other than biomass. In the Dutch wet Milieubeheer two definitions are used: 'biofuels' and 'renewable fuels'. For 'biofuels' the law refers to RED definition 33 and for renewable fuels to RED-definition 36.

[2] PBL expects tat in 2030 about 0,24 PJ renewable hydrogen will be registered in transport. The European commission still needs to determine the Greenhouse gas threshold for renewable fuels of non-biological origin. whether renewable hydrogen will be subject to a multiplier factor and which multiplier will be used, will be settles in the upcoming Regulation.

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