Biofuels sales requirement: Transport Biofuels Act 2007

Since 1 January 2007, petrol and diesel producers and suppliers, such as oil companies and traders are obliged deliver a certain percentage (in terms of energy value) of their petrol and diesel sales in the Netherlands in the form of biofuels. In 2007 this amount was 2%, rising to 3.25% in 2008. The target for 2009 had been 4.5%, rising to 5.75% in 2010. In October 2008, the Act was modified to change the 2009 and 2010 targets. These were reduced to 3.75% and 4% respectively. This is partly to allow for rules on the sustainability of biofuels to be elaborated. Categories of biofuels that do not meet minimum sustainability criteria may be excluded under ministerial regulations. The percentages do not exclusively refer to blending of biofuels with conventional fuel, but a percentage of their sales in terms of energy value. Pure biofuels also count towards the requirement, provided the necessary market share is achieved. The requirement can also be traded between suppliers. Petrol and diesel manufacturers must be able to prove (via their company accounts) that they have met their biofuel obligations. These can show the amounts of biofuels purchased, the amounts in stock at the beginning and end of the year, and the amounts sold or transferred to other suppliers. The requirement can also be traded between suppliers, where those that blend or sell biofuels amounts above the requirement can sell these to suppliers that are unable to meet the requirement. Proof of the transaction is provided through bio-tickets that take the form of a contract between a buyer and a seller.

Want to know more about this policy ? Learn more