Jun 25, 2025
Netherlands releases draft for RED III biofuels.
The updated draft legislation from the Dutch government aims to implement the EU's revised Renewable Energy Directive (RED III) by proposing the elimination of double-counting for renewable energy from Annex IX feedstocks.
This draft establishes a greenhouse gas (GHG) emission reduction requirement for land and shipping sectors, excluding aviation, which was part of an earlier draft. The RED III mandate will be effective starting in 2026.
Obligated entities must meet the mandate by submitting a sufficient number of emission reduction units (EREs) for each sector. The flexible credit allowance allows EREs from the land sector to help meet obligations in inland and maritime shipping, but not vice versa.
Fuel suppliers with an annual consumption exceeding 500,000 liters will need to include a 14.4% share of renewable fuels in their annual deliveries by 2026, rising linearly to 27.1% by 2030.
Crop-based biofuels will be capped at 1.4% of total energy consumption until 2030 and won’t count towards targets for maritime and inland shipping and aviation.
The counting of Annex IX Part B biofuels, such as used cooking oil and animal fats, will be restricted to 4.29% in the land sector and 11.07% in inland shipping. EREs from Annex IX Part B fuels won't be eligible in maritime shipping.
Additionally, the draft sets a minimum share of emission reductions from Annex IX Part A and renewable fuels of non-biological origin (RFNBO) across all sectors.
By 2030, RED III mandates that 5.5% of all fuels supplied must be advanced biofuels, including at least 1% RFNBOs. The Netherlands' draft separates these targets to minimize investment risks.
Refineries utilizing renewable hydrogen can earn refinery reduction units (RAREs), which can help suppliers meet RFNBO sub-targets in various sectors.
Correction factor delay: The ministry will postpone introducing a "correction factor" of 0.4 for hydrogen demand incentives to avoid affecting the direct use of hydrogen in transport.
This correction factor would limit emission reduction credits from renewable hydrogen used in transport fuel production to a fraction of those from direct use in transport.
The government may consider implementing a correction factor from 2030.
Despite the EU Fuel Quality Directive raising the maximum bio-based component share to 10% in diesel, the Dutch government mandates that suppliers continue providing B7 diesel (up to 7% biodiesel) for cars that can't use B10.
Companies can carry over excess EREs to the next compliance year. Companies with annual obligations can forward up to 10% of their EREs, while registered companies can carry forward 4%. Renewable fuel tickets from 2026 will convert to EREs on April 1, 2026.
This draft establishes a greenhouse gas (GHG) emission reduction requirement for land and shipping sectors, excluding aviation, which was part of an earlier draft. The RED III mandate will be effective starting in 2026.
Obligated entities must meet the mandate by submitting a sufficient number of emission reduction units (EREs) for each sector. The flexible credit allowance allows EREs from the land sector to help meet obligations in inland and maritime shipping, but not vice versa.
Fuel suppliers with an annual consumption exceeding 500,000 liters will need to include a 14.4% share of renewable fuels in their annual deliveries by 2026, rising linearly to 27.1% by 2030.
Crop-based biofuels will be capped at 1.4% of total energy consumption until 2030 and won’t count towards targets for maritime and inland shipping and aviation.
The counting of Annex IX Part B biofuels, such as used cooking oil and animal fats, will be restricted to 4.29% in the land sector and 11.07% in inland shipping. EREs from Annex IX Part B fuels won't be eligible in maritime shipping.
Additionally, the draft sets a minimum share of emission reductions from Annex IX Part A and renewable fuels of non-biological origin (RFNBO) across all sectors.
By 2030, RED III mandates that 5.5% of all fuels supplied must be advanced biofuels, including at least 1% RFNBOs. The Netherlands' draft separates these targets to minimize investment risks.
Refineries utilizing renewable hydrogen can earn refinery reduction units (RAREs), which can help suppliers meet RFNBO sub-targets in various sectors.
Correction factor delay: The ministry will postpone introducing a "correction factor" of 0.4 for hydrogen demand incentives to avoid affecting the direct use of hydrogen in transport.
This correction factor would limit emission reduction credits from renewable hydrogen used in transport fuel production to a fraction of those from direct use in transport.
The government may consider implementing a correction factor from 2030.
Despite the EU Fuel Quality Directive raising the maximum bio-based component share to 10% in diesel, the Dutch government mandates that suppliers continue providing B7 diesel (up to 7% biodiesel) for cars that can't use B10.
Companies can carry over excess EREs to the next compliance year. Companies with annual obligations can forward up to 10% of their EREs, while registered companies can carry forward 4%. Renewable fuel tickets from 2026 will convert to EREs on April 1, 2026.