The Renewable Energy Directive II (RED II)

A need for a predictable and stable renewable energy policy over the long term and that prevents fragmentation of the EU single energy market.

FuelsEurope welcomes the Renewable Energy Directive II as the policy instrument to promote renewable energy in the electricity, heating & cooling and the transport sector. Transport can play an important role in achieving the EU-wide renewable energy target by the use of renewable transport fuels.

Biofuels that are economically and environmentally sustainable have a role to play in the future of transport since they do not need new filling infrastructure. Moreover, the fleet in operation can deliver the benefits of biofuels in terms of lower greenhouse gas (GHG) emissions immediately. All biofuels –both first-generation and advanced – should contribute provided they meet robust and science-based sustainability criteria based on the entire life-cycle emissions.

Although the RED II recognises the contribution of renewable fuels of non-biological origin, it does not properly address the effective and efficient use of them, such as:

  • It is unclear on how the use of sustainable renewable hydrogen can contribute.
  • Certain restrictions are put forward on the use of renewable electricity for the production of renewable liquid and gaseous transport fuels of non-biological origin.

Homogenous policy across the EU will be key in creating conditions that remain predictable and stable over the long term and that prevent fragmentation of the EU single energy market.

Advanced biofuels as well as renewable liquid and gaseous transport fuels of non-biological origin require extraordinary efforts in R&D and the commitment of significant and long-term investments. Regulatory certainty and predictability are essential conditions for investors in such high-risk projects.

Where mandates are used, particular care is required in setting targets that should be realistically achievable. The legislation should leave sufficient flexibility to achieve the overall objective in the most effective way.