VERBIO SE 
If an oil company has overfulfilled the targets in the past, it may no longer count this towards 2025 and 2026, the Federal Cabinet decided in Berlin on Wednesday. This will only be possible again in 2027. In the past, mineral oil companies often overfulfilled the greenhouse gas reduction quota (GHG quota), for example by selling more biodiesel. According to the Ministry of the Environment, this amounted to 3.4 million tons in 2022 alone, 24 percent more than required. The decision can come into force immediately. The Bundestag or Bundesrat do not have to approve the regulation. This means that the decision can take effect even after the break-up of the traffic light coalition.
Federal Environment Minister Steffi Lemke (Greens) spoke of a strong market signal for renewable energies in the transport sector. "With this immediate measure, we are securing the target path for CO2 reductions in the fuel sector and improving the economic situation of manufacturers of advanced biofuels and green hydrogen as well as operators of charging stations." If the demand for climate-neutral alternatives to fossil fuels increases, this will also strengthen climate protection in the transport sector in the long term.
The GHG quota obliges the petroleum industry to reduce the CO2 emissions of its fuels. The quota currently stands at 9.35% and will gradually increase to 25% in 2030. Manufacturers can use biofuels made from residual and waste materials or renewable synthetic fuels such as e-fuels to meet the GHG quota. The use of electricity in electric vehicles or green hydrogen in refineries also improves the fuel supplier's carbon footprint and can therefore be counted towards the obligation.
(Report by: Markus Wacket; edited by Christian Götz. If you have any questions, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)
