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European Union

European Union Establishes Minimum Threshold for Greenhouse Gas Emissions Savings from Recycled Carbon Fuels

Strategic Insights

— 2 min read

The European Commission has issued a new regulation, effective June 20, 2023, setting a minimum threshold for greenhouse gas emissions savings from recycled carbon fuels at 70%. This regulation complements Directive (EU) 2018/2001 on the promotion of the use of energy from renewable sources and aims to reduce greenhouse gas emissions in the transport sector. The regulation introduces a clear methodology for calculating greenhouse gas emissions savings from renewable liquid and gaseous transport fuels of non-biological origin and recycled carbon fuels.

Key Takeaways:

  • The European Union has established a minimum threshold for greenhouse gas emissions savings from recycled carbon fuels at 70%.
  • The regulation introduces a methodology for calculating greenhouse gas emissions savings from renewable liquid and gaseous transport fuels of non-biological origin and recycled carbon fuels.
  • The greenhouse gas emissions accounting methodology should take into account the full life-cycle emissions from producing renewable liquid and gaseous transport fuels of non-biological origin and recycled carbon fuels.
  • Credits will not be granted for capturing CO2 that has already been taken into account under other provisions of Union law.
  • Renewable liquid and gaseous transport fuels of non-biological origin and recycled carbon fuels can be produced in various processes, which may yield a mixture of different types of fuels.
  • The fossil fuel comparator for renewable liquid and gaseous transport fuels of non-biological origin and recycled carbon fuels should be set at 94 gCO2eq/MJ in line with the value set out for biofuels and bioliquids in Directive (EU) 2018/2001.
  • The main objective of promoting recycled carbon fuels is to reduce greenhouse gas emissions by improving the efficiency of use of eligible feedstock compared to present uses.

Statistics:

  • Minimum threshold for greenhouse gas emissions savings from recycled carbon fuels: 70%
  • Greenhouse gas emissions accounting methodology: calculates full life-cycle emissions from producing renewable liquid and gaseous transport fuels of non-biological origin and recycled carbon fuels.
  • Fossil fuel comparator for renewable liquid and gaseous transport fuels of non-biological origin and recycled carbon fuels: 94 gCO2eq/MJ.
  • Date of entry into force: June 20, 2023 (20th day following publication in the Official Journal of the European Union).

Sources:

  • COMMISSION DELEGATED REGULATION (EU) 2023/1185 of 10 February 2023
  • Directive (EU) 2018/2001 of the European Parliament and of the Council
  • Directive 2003/87/EC of the European Parliament and of the Council
  • Regulation (EU) 2021/1119 of the European Parliament and of the Council
  • Directive 2008/98/EC of the European Parliament and of the Council

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