The Union for the Promotion of Oil and Protein Plants (UFOP) has welcomed the German Bundestag's decision to increase the greenhouse gas reduction obligation for fuels.
The law provides for an increase from 6% today to 7% in 2022 and to 25% in 2030.
UFOP has repeatedly called for a more ambitious GHG quota system.
The aim is to give domestic agriculture and the biofuel industry more planning certainty in the medium term, while at the same time giving new options such as biofuels from residues, synthetic fuels and hydrogen opportunities.
The legislative resolution sets the signal for allowing higher blending ratios for biodiesel in heavy-duty transport and bioethanol in passenger cars.
A corresponding amendment to the 10th Federal Immission Control Ordinance (BImSchV) will create the necessary flexibility for companies to meet the rising GHG quota in the competition for alternative fuels that are as GHG-efficient as possible.
The corresponding European fuel standards are available for B10, B30 and, in the foreseeable future, for E20.
UFOP points out that sustainably certified biofuels are fully taxed when used in blending. However, biofuels are not subject to the CO2 pricing of fossil fuels, which will increase in the coming years.
The respective blending proportion therefore reduces the additional price increase that is to be expected in the future due to the steadily rising CO2 price of fossil fuels, UFOP emphasised.
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