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If you’re involved in the production of renewable and low-carbon fuels, understanding why certification matters isn't just a bureaucratic burden—it's a core part of the value chain, and therefore of your job. Let’s dive into why the EU's push for sustainability compliance is something you can’t afford to ignore.
As the world moves towards a more sustainable future, the European Union has implemented a series of directives that significantly impact the production and usage of renewable fuels.
Sounds complex? Let’s demystify the picture!
First - what is renewable or green, and what isn’t? In the world of fuels, “green” or “renewable” is defined as compliance to the EU’s Renewable Energy Directive II (RED II), which outlines specific rules for producing renewable fuels derived from renewable electricity. Delegated Acts on articles 27 and 28 of RED II specify the necessary standards and methodologies for calling fuels “renewable” - or in the EU jargon: Renewable Fuels of Non Biological origin (RFNBOs). RFNBOs have thus become the EU standard for “green”, in other words: only RFNBO-certified molecules can effectively contribute to reducing the carbon footprint of fossil fuel-reliant industries.
The EU’s legislative push for RFNBOs is grounded in two key directives: RED II and RED III. Is there even any difference?
Yes, there is.
RED II, enacted in 2018, establishes the legal framework for renewable energy in the EU. It includes specific rules defining RFNBOs (given by Delegated Acts). Under RED II, the electricity used in RFNBO production must be from certain renewable sources, and the directive outlines the necessary criteria for greenhouse gas (GHG) emission savings and sustainability. The main goals of RED II are to reach a 32% renewable energy share in final energy consumption within the transport sector.
Fast forward to 2023, and RED III raises the stakes. It mandates that industries such as ammonia and chemicals production, oil refining, and steel must source at least 42% of their hydrogen from renewable sources by 2030, increasing to 60% by 2035. Additionally, the directive requires that by 2030, 1% of all transport fuel must be RFNBOs, such as green hydrogen and its derivatives.
But it doesn’t stop there. The EU has bolstered these directives with the legislative package “Fit for 55”, including more directives that make RFNBOs essential:
All in all, the EU is turning up the heat on RFNBO with its RED II and RED III directives, accompanied by FuelEU Maritime, ReFuelEU Aviation, and more - pushing industries to go greener, faster. From hydrogen-powered ships to synthetic fuel in planes, these rules are all about cutting emissions and boosting renewable energy. Certification is the golden ticket here - without it, you're not playing in the EU’s green game!
It’s not just regulations and directives driving the change - market forces are adding their own pressure as well. Increasing costs of carbon fuel the green transition: Industries that are heavy carbon emitters, such as steel and chemical production, are under immense pressure to decarbonize. This pressure comes from the EU's Emissions Trading System (ETS) and the Carbon Border Adjustment Mechanism (CBAM), which make it financially advantageous for companies to reduce their carbon footprints. However, achieving this reduction requires access to low-carbon raw fuels and feedstock - RFNBOs being at the root.
In this context, the certification of RFNBOs becomes critical, not just for market access but also for aligning with the EU's long-term climate goals.
The EU's RED II and RED III directives aren’t just airy, intangible policies - they're the stepping stones to making industry net-zero a reality. They set the standards for green raw materials, establishing clear targets and incentives for industries to decarbonize, backed by regulations such as FuelEU Maritime and ReFuelEU Aviation. With the EU ETS and CBAM adding to the pressure, the demand for certified green materials is only going to grow. Those who invest in certification now will not only meet legal requirements but also position themselves as industry net-zero leaders (5 reasons why Fast-Movers might be getting it right).
As the market evolves, certification schemes, verifiers, and traceability systems will become your allies in maintaining the integrity of green materials across the supply chain. But how does certification actually work? And is this really a smooth and straightforward process? Book a demo with Atmen to learn more about the certification process and discover how we can assist you with upcoming challenges down the certification road, simplifying it every step of the way.
