The Fit for 55 legislative package defined 'renewable fuels of non-biological origin’ (RFNBO) as liquid and gaseous fuels the energy content of which is derived from renewable sources other than biomass (Article 2(36) of the Renewable Energy Directive - RED III).
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14 March 2024 Commission Delegated Regulation (EU) amending Delegated Regulation (EU) 2023/1184 as regards aligning a technical term with Directive (EU) 2018/2001 of the European Parliament and of the Council adopted by the European Commission, C(2024) 1621 final
Directive (EU) 2023/2413 of the European Parliament and of the Council of 18 October 2023 amending Directive (EU) 2018/2001, Regulation (EU) 2018/1999 and Directive 98/70/EC as regards the promotion of energy from renewable sources, and repealing Council Directive (EU) 2015/652 (RED III) published in the EU Official Journal
9 October 2023
Member states will have the possibility to discount the contribution of RFNBOs in industry use by 20% under two conditions:
20 June 2023 Commission Delegated Regulation (EU) 2023/1184 of 10 February 2023 supplementing Directive (EU) 2018/2001 of the European Parliament and of the Council by establishing a Union methodology setting out detailed rules for the production of renewable liquid and gaseous transport fuels of non-biological origin published in the EU Official Journal Commission Delegated Regulation (EU) 2023/1185 of 10 February 2023 supplementing Directive (EU) 2018/2001 of the European Parliament and of the Council by establishing a minimum threshold for greenhouse gas emissions savings of recycled carbon fuels and by specifying a methodology for assessing greenhouse gas emissions savings from renewable liquid and gaseous transport fuels of non-biological origin and from recycled carbon fuels published in the EU Official Journal
30 March 2023 Council and Parliament reach provisional deal on renewable energy directive (RED III) to raise the share of renewable energy in the EU’s overall energy consumption to 42.5% by 2030 with an additional 2.5% indicative top up that would allow to reach 45%. The provisional agreement provides that, among others, industry would increase their use of renewable energy annually by 1.6%.
27 June 2022 Fit for 55 - Council agrees on higher targets for renewables |
Renewable fuels of non-biological origin are important for increasing the share of renewable energy in sectors and for uses where other alternatives might be unfeasible or more expensive. Directive (EU) 2023/2413 amended Directive (EU) 2018/2001 on the promotion of the use of energy from renewable sources and extended the scope of the promotion of renewable fuels of non-biological origin to cover other sectors than transport. Accordingly, the term ‘renewable liquid and gaseous transport fuels of non-biological origin" was replaced with the term “renewable fuels of non-biological origin’ throughout the Directive.
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Directive on the promotion of the use of energy from renewable sources (RED) |
Earlier provisions on renewable fuels of non-biological origin under RED II were limited in scope and applied to transport only.
Following the amendment, RFNBO definition also refers to liquid and gaseous fuels used in the electricity sector, in non-energy purposes in the industrial sector and in the heating and cooling sector.
Rules for determining RFNBO fully renewable
Methodology for the production of renewable liquid and gaseous transport fuels of non-biological origin is laid down by Commission Delegated Regulation (EU) 2023/1184 of 10 February 2023 supplementing RED III.
The Regulation lays down detailed rules for determining when electricity used for the production of renewable fuels of non-biological origin can be considered fully renewable. These rules apply to the production of renewable fuels of non-biological origin via electrolysis and analogously for less common production pathways. They shall apply regardless of whether the renewable fuel of non-biological origin is produced inside or outside the territory of the European Union.
Other issues
Fit for 55 Package established the rule that gas and electricity from renewable sources are to be considered only once for the purposes of calculating the share of gross final consumption of energy from renewable sources. Energy produced from renewable fuels of non-biological origin shall be accounted in the sector - electricity, heating and cooling or transport - where it is consumed.
The proposal included the requirement for the EU Member States to ensure that the contribution of renewable fuels of non-biological origin used for final energy and non-energy purposes was 50 % of the hydrogen used for final energy and non-energy purposes in industry by 2030. Calculation of that percentage is to be made in accordance with the new Article 22a of the RED II.
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On 31 October 2023 the Directive (EU) 2023/2413 of the European Parliament and of the Council of 18 October 2023 amending Directive (EU) 2018/2001, Regulation (EU) 2018/1999 and Directive 98/70/EC as regards the promotion of energy from renewable sources, and repealing Council Directive (EU) 2015/652 (RED III) has been published in the EU Official Journal.
The above legislative proposals have been included in the final text, with the reservation, that Article 22a has the final wording as in the box below. In particular, according to the RED III Member States must ensure that the contribution of renewable fuels of non-biological origin used for final energy and non-energy purposes shall be at least 42 % of the hydrogen used for final energy and non-energy purposes in industry by 2030, and 60 % by 2035.
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Mainstreaming renewable energy in industry 1. Member States shall endeavour to increase the share of renewable sources in the amount of energy sources used for final energy and non-energy purposes in the industry sector by an indicative increase of at least 1,6 percentage points as an annual average calculated for the periods 2021 to 2025 and 2026 to 2030. Member States may count waste heat and cold towards the average annual increases referred to in the first subparagraph up to a limit of 0,4 percentage points, provided that the waste heat and cold is supplied from efficient district heating and cooling, excluding networks which supply heat to only one building or where all thermal energy is consumed only on-site and where the thermal energy is not sold. If they decide to do so, the average annual increase referred to in the first subparagraph shall increase by half of the waste heat and cold percentage points counted. Member States shall include the policies and measures planned and taken to achieve such indicative increase in their integrated national energy and climate plans submitted pursuant to Articles 3 and 14 of Regulation (EU) 2018/1999 and their integrated national energy and climate progress reports submitted pursuant to Article 17 of that Regulation. When electrification is considered to be a cost-effective option, those policies and measures shall promote the renewable-based electrification of industrial processes. Those policies and measures shall endeavour to create conducive market condition for the availability of economically viable and technically feasible renewable energy alternatives to replace fossil fuels used for industrial heating with the aim of reducing the use of fossil fuels used for heating in which the temperature is below 200 °C. When adopting those policies and measures, Member States shall take into account the energy efficiency first principle, effectiveness and international competitiveness and the need to tackle regulatory, administrative and economic barriers. Member States shall ensure that the contribution of renewable fuels of non-biological origin used for final energy and non-energy purposes shall be at least 42 % of the hydrogen used for final energy and non-energy purposes in industry by 2030, and 60 % by 2035. For the calculation of that percentage, the following rules shall apply:
For the purposes of point (c) of the fifth subparagraph of this paragraph„ in order to determine the energy content of fuels not included in Annex III, the Member States shall use the relevant European standards for the determination of the calorific values of fuels, or where no European standard has been adopted for that purpose, the relevant ISO standards. 2. Member States shall promote voluntary labelling schemes for industrial products that are claimed to be produced with renewable energy and renewable fuels of non-biological origin. Such voluntary labelling schemes shall indicate the percentage of renewable energy used or renewable fuels of non-biological origin used in the raw material acquisition and pre-processing, manufacturing and distribution stage, calculated on the basis of the methodologies laid down either in Commission Recommendation (EU) 2021/2279 (*19) or in ISO 14067:2018. 3. Member States shall report the amount of renewable fuels of non-biological origin that they expect to import and export in their integrated national energy and climate plans submitted pursuant to Articles 3 and 14 of Regulation (EU) 2018/1999 and in their integrated national energy and climate progress reports submitted pursuant to Article 17 of that Regulation. On the basis of that reporting, the Commission shall develop a Union strategy for imported and domestic hydrogen with the aim of promoting the European hydrogen market as well as domestic hydrogen production within the Union, supporting the implementation of this Directive and the achievement of the targets laid down herein, while having due regard to security of supply and the Union’s strategic autonomy in energy and level playing field on the global hydrogen market. Member States shall indicate in their integrated national energy and climate plans submitted pursuant to Articles 3 and 14 of Regulation (EU) 2018/1999 and in their integrated national energy and climate progress reports submitted pursuant to Article 17 of that Regulation how they intend to contribute to that strategy. |
Directive (EU) 2023/959 of the European Parliament and of the Council of 10 May 2023 amending Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union and Decision (EU) 2015/1814 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading system, Recital 68
Renewable liquid and gaseous fuels of non-biological origin and recycled carbon fuels can be important for reducing greenhouse gas emissions in sectors that are hard to decarbonise. Where recycled carbon fuels and renewable liquid and gaseous fuels of non-biological origin are produced from captured CO2 under an activity covered by this Directive, the emissions should be accounted for under that activity. To ensure that renewable fuels of non-biological origin and recycled carbon fuels contribute to greenhouse gas emission reductions, and to avoid double counting for fuels that do so, it is appropriate to explicitly extend the empowerment in Article 14(1) of Directive 2003/87/EC to the adoption by the Commission of implementing acts laying down the necessary adjustments for how to account for the eventual release of CO2, in a way that ensures that all emissions are accounted for, including where such fuels are produced from captured CO2 outside the Union, while avoiding double counting and ensuring appropriate incentives are in place for capturing emissions, taking also into account the treatment of those fuels under Directive (EU) 2018/2001.
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Directive (EU) 2018/2001, as amended by Directive (EU) 2023/2413 of the European Parliament and of the Council of 18 October 2023 (RED III)
Article 29a Greenhouse gas emissions saving criteria for renewable fuels of non-biological origin and recycled carbon fuels 1. Energy from renewable fuels of non-biological origin shall be counted towards Member States’ shares of renewable energy and the targets referred to in Articles 3(1), 15a(1), 22a(1), 23(1), 24(4) and 25(1) only if the greenhouse gas emissions savings from the use of those fuels are at least 70 %. 2. Energy from recycled carbon fuels may be counted towards the targets referred to in Article 25(1), first subparagraph, point (a), only ifthe greenhouse gas emissions savings from the use of those fuels are at least 70 %. 3. The Commission is empowered to adopt delegated acts in accordance with Article 35 to supplement this Directive by specifying the methodology for assessing greenhouse gas emissions savings from renewable fuels of non-biological origin and from recycled carbon fuels. The methodology shall ensure that credit for avoided emissions is not given for CO 2 from fossil sources the capture of which has already received an emission credit under other provisions of law. The methodology shall cover the life-cycle greenhouse gas emissions and consider indirect emissions resulting from the diversion of rigid inputs such as wastes used for the production of recycled carbon fuels. |
Regulatory chronicle
14 March 2024
Commission Delegated Regulation (EU) amending Delegated Regulation (EU) 2023/1184 as regards aligning a technical term with Directive (EU) 2018/2001 of the European Parliament and of the Council adopted by the European Commission, C(2024) 1621 final
8 March 2024
31 October 2023
Directive (EU) 2023/2413 of the European Parliament and of the Council of 18 October 2023 amending Directive (EU) 2018/2001, Regulation (EU) 2018/1999 and Directive 98/70/EC as regards the promotion of energy from renewable sources, and repealing Council Directive (EU) 2015/652 (RED III) published in the EU Official Journal
9 October 2023
42% of the hydrogen used in industry should come from renewable fuels of non-biological origin (RFNBOs) by 2030 and 60% by 2035.
Member states will have the possibility to discount the contribution of RFNBOs in industry use by 20% under two conditions:
- if the member states’ national contribution to the binding overall EU target meets their expected contribution,
- the share of hydrogen from fossil fuels consumed in the member state is not more 23% in 2030 and 20% in 2035.
20 June 2023
Commission Delegated Regulation (EU) 2023/1184 of 10 February 2023 supplementing Directive (EU) 2018/2001 of the European Parliament and of the Council by establishing a Union methodology setting out detailed rules for the production of renewable liquid and gaseous transport fuels of non-biological origin published in the EU Official Journal
Commission Delegated Regulation (EU) 2023/1185 of 10 February 2023 supplementing Directive (EU) 2018/2001 of the European Parliament and of the Council by establishing a minimum threshold for greenhouse gas emissions savings of recycled carbon fuels and by specifying a methodology for assessing greenhouse gas emissions savings from renewable liquid and gaseous transport fuels of non-biological origin and from recycled carbon fuels published in the EU Official Journal
30 March 2023
Council and Parliament reach provisional deal on renewable energy directive (RED III) to raise the share of renewable energy in the EU’s overall energy consumption to 42.5% by 2030 with an additional 2.5% indicative top up that would allow to reach 45%.
The provisional agreement provides that, among others, industry would increase their use of renewable energy annually by 1.6%.
27 June 2022
Fit for 55 - Council agrees on higher targets for renewables
Documentation
European Commission Proposal for a Directive of the European Parliament and of the Council amending Directive (EU) 2018/2001 of the European Parliament and of the Council, Regulation (EU) 2018/1999 of the European Parliament and of the Council and Directive 98/70/EC of the European Parliament and of the Council as regards the promotion of energy from renewable sources, and repealing Council Directive (EU) 2015/652, COM(2021) 557 final