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A

Additionality

Additionality is a concept defined in the Renewable Energy Directive II (RED II, Delegated Act on Article 27). It ensures that new renewable energy installations are built specifically to meet the additional demand - for example extra demand triggered by electrolytic hydrogen production. This principle aims to promote the deployment of new renewable energy sources, ensuring that the increased electricity demand from electrolysers does not lead to higher fossil fuel usage elsewhere in the grid. Additionality counts as one of the three pillars of the RFNBO standard (Renewable Fuels of Non Biological Origin) defined in RED II, and thus as one important prerequisite for certifying fuels as renewable. In practice, additionality isn’t required for renewable fuels projects becoming operational before 2028.

Ammonia

Ammonia (NH₃) is a compound composed of nitrogen and hydrogen, widely used in agriculture as a fertiliser and in various industrial processes. It is primarily produced through the Haber-Bosch process, which combines nitrogen from the air with hydrogen, making ammonia an important final product in the hydrogen value chain. Beyond its traditional applications, ammonia is gaining attention in the hydrogen economy as a potential hydrogen carrier and fuel because it can be easily liquefied and transported. Additionally, when produced using green hydrogen, ammonia can serve as a clean energy vector, helping to decarbonise various sectors, including transportation and industry. This dual role enhances its significance in both existing applications and emerging energy solutions.

Audit

An audit is an official inspection of an organisation's processes, typically conducted by an independent certification body (auditor, verifier) who is accredited to do so. The audit process checks accuracy of reporting and compliance with established standards and regulations.

B

Batch

A batch is a certain quantity or lot of a product. It is also sometimes called a consignment.

Biofuels

Biofuels are liquid or gaseous fuels derived from biological materials, such as plant or animal waste, which can be used to replace traditional fossil fuels in various applications. Common types of biofuels include ethanol, produced from crops like corn and sugarcane, and biodiesel, made from vegetable oils or animal fats.

Biomass

Biomass refers to organic materials derived from agriculture, forestry, and related industries that can be used as a renewable energy source. It includes wood, agricultural crops, waste from forests and farms, and organic waste from industrial and municipal sources. Biomass can be converted into biofuels.

Book and Claim

The book-and-claim approach is a chain of custody method that separates the physical product from its sustainability attributes. Producers generate sustainability credits for their products, which can be sold to consumers who wish to support sustainable production. This method does not require the physical product - e.g. electricity, which is hard to physically trace - to be traced through the supply chain, as the sustainability claims are managed via a separate bookkeeping system. In other words, product attributes can be exchanged and monetized separately from the physical commodity. Example: A renewable electricity producer generates green certificates for the electricity they produce. These certificates can be purchased by companies to claim they are using renewable electricity, even if the actual energy consumed is from a different source. In this example of electricity, guarantees of origin (GOs) are created following the book-and-claim approach.

C

CO2 for Power-2-X Production

In Power-2-X production, the selection of carbon feedstock is an important determinant of sustainability and efficiency. The carbon feedstock can be solid carbon or CO2. CO2 can be sourced by:

Industrial Point Sources: Includes emissions from the energy and industry sectors (production of cement, iron, steel, chemicals, etc. releases CO2 emission as a byproduct)
Direct Air Capture (DAC): Involves capturing CO2 directly from the atmosphere.
Biogenic Carbon: CO2 can be sourced from biomass processing or combustion.

Captured CO2 stemming from a fuel that is deliberately combusted for the specific purpose of producing the CO2 cannot receive a deduction. CO2 that has received an emissions credit under other provisions of the law can also not receive a deduction. Besides this, CO2 carbon feedstock variations can be identified via five options:

Fossil fuel option:
- CO2 must stem from an activity listed under EC Directive 2003/87/EC (such as production of coke, aluminium, glass, …)
- CO2 must have been taken into account upstream in an effective carbon pricing mechanism (EU ETS, …)
- CO2 must have been incorporated into the chemical composition of the fuel before 2036
DAC option: “The CO2 has been captured from the air” - only Delegated Act so far.
Biogenic option:
- The fuels from which CO2 is derived must comply with sustainability and GHG saving criteria (RED II Art. 29). Certification of the biofuel process used to derive the carbon to demonstrate alignment with the RED II criteria might be needed
- The CO2 capture did not receive emissions credits from CO2 capture and replacement under the RED II framework
RFNBO option: CO2 can stem from an RFNBO (or RCF) process, but one of the other options should have been used initially to qualify.
Geological option: CO2 stems from a geological source and was previously released naturally

Carbon Accounting

Carbon Accounting is the systematic approach of measuring and monitoring a company’s CO2 equivalent emissions. In this process, all greenhouse gases (GHG) are considered. Carbon accounting is useful for calculating the carbon footprint across scope 1, 2, and 3, align the own entity to the rapidly changing regulatory environment and compliance with standards, and measure own emissions in comparison to general emission reduction targets. A globally recognized way to calculate emissions is described by the GHG Protocol.

Carbon Border Adjustment Mechanism (CBAM)

CBAM is an European Union policy designed to address the risk of carbon leakage by imposing a carbon price on imports of certain goods from countries with less stringent climate policies. As of 2026/2027, hydrogen importers will have to buy and surrender CBAM certificates based on the embedded emissions of their imported goods. Hydrogen and ammonia are some of these goods. The aim is to ensure that EU companies, which are subject to strict carbon regulations, are not disadvantaged by imports from countries with lower environmental standards. CBAM will apply to energy-intensive sectors such as cement, steel, aluminium, fertilisers.

Carbon Capture and Storage (CCS)

CCS is a technology aimed at capturing CO2 emissions from industrial processes and power generation, preventing them from entering the atmosphere. The captured CO2 is then transported, typically via pipelines, and stored underground in geological formations such as depleted oil and gas fields or deep saline aquifers.

Carbon Capture, Utilisation, and Storage (CCUS)

CCUS extends the concept of CCS by including the utilisation of captured CO2 for various industrial purposes, such as enhanced oil recovery or conversion into chemicals and fuels.

Carbon Contracts for Differences (CCfD)

CCfD are financial agreements between governments and companies that set a fixed carbon price to incentivise low-carbon technology investments. If the market price falls below the set price, the government compensates the company, reducing investment risk. This mechanism supports industries like steel and chemicals in transitioning to greener production methods.

Carbon Market

On a carbon market, emission rights are traded in order to increase the incentive for market participants to reduce their emissions. The less you emit, the more emission rights you can sell and benefit from this sale. A carbon market can be based on cap-and-trade systems (such as the European Emission Trading System (ETS)) or taxes, for example.

Carbon Removals and Carbon Farming Certification (CRCF) Regulation

The Carbon Removal and Carbon Farming Certification Regulation (CRCF) is a key component of the EU's Industrial Carbon Management Strategy, which aims to advance technologies for capturing, storing, transporting, and utilising CO2 emissions from industrial sources, as well as removing CO2 from the atmosphere. This regulation establishes the first EU-wide voluntary framework for certifying carbon removals, including Direct Air Capture (DAC) and biogenic methods, carbon farming, and carbon storage in products through Carbon Capture, Utilisation, and Storage (CCUS). It mandates third-party verification and the publication of certification details in an EU-wide registry. Although a provisional agreement was adopted by the European Parliament in April 2024, the European Commission still needs to develop Delegated Acts to operationalise quality criteria, rules for certification schemes, and guidelines for third-party verifiers. Additionally, synergies with existing schemes, such as Renewable Fuels of Non-Biological Origin (RFNBO), are anticipated, particularly concerning participation in certification schemes, audits, recertification processes, and the management of the certification registry.

Certificate

A certificate is a site-specific proof issued by a certification body, which guarantees that a processing unit or warehouse has successfully completed a prior audit and is therefore compliant with a certification scheme. In the RED II context, most often a site certificate is valid for five years but can be cancelled if the subsequent yearly audit finds that the practices onsite are not compliant. Certificates are made public in certification registries.

In the renewable fuels industry, the term “certificate” is often used also for “Proofs of Sustainability”, which are batch-level certificates. For a company to be allowed to issue proofs of sustainability, its production site must have obtained a certificate following a yearly audit by a certification body.

Certification Body

The certification body, also known as “verifier” or “auditor”, is conducting a partial on-site audit to ensure the site's compliance with the certification scheme. After a successful audit, a site-specific certificate can be issued. These audits are conducted annually. Certification bodies are independent of the certification scheme to maintain neutrality. They are accredited by governments. Examples include TÜV, DEKRA, Bureau Veritas, DNV, among others.

Certification Scheme

Certification schemes, often referred to as “label owners”, such as ISCC, REDcert, and CertifHy. These are usually private companies with strictly regulated roles. Their responsibilities include translating regulations (e.g., RED II) into specific requirements for economic operators, obtaining accreditation from the EU and governments as "recognised schemes”, and managing the registry of economic operators' certificates. Additionally, they provide training for both economic operators and certification bodies interested in their label.

Chain of custody

A chain of custody ensures that the integrity of the product's journey is maintained throughout the supply chain. The chain of custody provides credibility by associating a batch of material or product with specific characteristics, such as sustainability and greenhouse gas (GHG) savings. Maintaining a robust chain of custody is critical for verifying that sustainability attributes are accurately transferred, monitored, and controlled at every stage.

Commission Delegated Regulation (CDR)

The CDR are regulations adopted by the European Commission to supplement and provide detailed rules for implementing EU directives. For example, CDR 2023/1184 and CDR 2023/1185 supplement RED II by setting out specific rules for the production and certification of RFNBOs, including methodologies for assessing greenhouse gas emissions and ensuring renewable electricity use.

D

Delegated Act on Article 27 RED II

The Delegated Act on Article 27 of the Renewable Energy Directive II (RED II) outlines the criteria for considering electricity used in the production of RFNBO (such as green hydrogen) as fully renewable. It focuses on ensuring additionality, temporal correlation, and geographical correlation. These criteria aim to promote genuine renewable energy usage, reduce greenhouse gas emissions, and support new renewable energy projects.

Additionality mandates that the renewable electricity plant must have been commissioned within 36 months before the electrolyser.
Temporal correlation requires that the electricity is consumed within the same hour it is produced.
Geographical correlation ensures that the renewable energy source and the production facility are within the same or adjacent bidding zones.

Delegated Act on Article 28 RED II

The Delegated Act on Article 28 of the Renewable Energy Directive II (RED II) establishes a minimum greenhouse gas (GHG) emissions saving threshold of 70% for recycled carbon fuels and specifies a methodology for assessing GHG emissions savings from RFNBO such as green hydrogen. This regulation ensures comprehensive lifecycle emissions accounting, including production, processing, transportation, and end-use, to guarantee significant GHG reductions compared to fossil fuels. The methodology promotes transparency and accuracy, supporting the EU's climate goals by ensuring that only fuels achieving substantial emissions reductions are credited.

Digital Product Passport (DPP)

A DPP is a concept that involves using digital technology to create a comprehensive record of a product's lifecycle. As a tool to create transparency and unlock circularity, the European Commission proposes DPPs that share product information across the entire product lifecycle. A DPP contains Guarantees of Origins (GO), Proofs of Sustainability (PoS), supplier info, and other product quality and safety KPIs.

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E

EU Hydrogen Bank

The EU Hydrogen Bank, also known as the EU H2 Bank, is an initiative by the European Commission to boost the development and deployment of hydrogen energy across the EU as part of the European Green Deal. Its primary aim is to support the scale-up of hydrogen production, particularly green hydrogen, by providing significant funding to bridge the cost gap with fossil fuels. The bank targets sectors like heavy industry and transport, supporting projects that enhance hydrogen infrastructure and usage. Collaboration among EU institutions, member states, and industry stakeholders is essential for creating a unified hydrogen market.

EU Industrial Carbon Management Strategy

The EU Industrial Carbon Management Strategy aims to advance technologies for capturing, storing, transporting, and using CO2 emissions from industrial sources and removing CO2 from the atmosphere. It focuses on three main pathways: CCS (capturing CO2 for permanent geological storage), CCU (using captured CO2 in synthetic products, chemicals, or fuels), and CO2 removal (capturing atmospheric CO2 for permanent storage). This strategy requires coordinated policies at national and EU levels, strategic infrastructure planning, and collaboration among stakeholders. By 2030, the goal is to deploy infrastructure for 50 million tons/year CO2 storage, with economically viable carbon value chains by 2040, and full integration into the EU economy post-2040. Key sectors include cement, steel, natural gas processing, biomass electricity production, low-carbon hydrogen, refining, waste incineration, and thermal heat production.

Electrolysis

Electrolysis is a process used in hydrogen production where water (H₂O) is split into hydrogen (H₂) and oxygen (O₂) using an electric current. This method involves passing electricity through water in an electrolyzer, which causes the water molecules to break apart. When renewable energy sources, such as wind, solar, or hydropower, are used to provide the electricity, the resulting hydrogen is referred to as renewable hydrogen, as the process emits no greenhouse gases.

Emission Factor

An emission factor is a coefficient that quantifies the emissions associated with a specific activity or process. For example, an emission factor can be used to calculate the greenhouse gas emissions from hydrogen compression based on the amount of electricity consumed. Emission factors are essential for regulatory reporting and compliance with greenhouse gas reduction targets.

Emission Trading System (ETS)

The ETS is a cornerstone of the EU's policy to combat climate change and its key tool for reducing greenhouse gas emissions cost-effectively. It operates on a cap-and-trade principle, where a cap is set on the total amount of certain greenhouse gases that can be emitted by installations covered by the system. Companies receive or buy emission allowances which they can trade with one another as needed. This creates a financial incentive for companies to reduce their emissions. The cap is reduced over time, so that total emissions fall.

The development of the European Union Emission Trading System (EU ETS) can be outlined as follows:

Inception (2005): The EU ETS was launched in 2005 as the world's first and largest international emissions trading system, initially covering only CO2 emissions from power plants and energy-intensive industries.
Phase I (2005-2007): This pilot phase aimed to test the system, establish infrastructure, and create a carbon market. It faced challenges such as overallocation of allowances, leading to low carbon prices.
Phase II (2008-2012): Coinciding with the Kyoto Protocol’s first commitment period, Phase II expanded the scope to include more sectors and introduced stricter allocation rules. However, it still faced issues of overallocation and economic recession impacts.
Phase III (2013-2020): Significant reforms were introduced, including a single EU-wide cap on emissions, auctioning of allowances instead of free allocation, and inclusion of additional greenhouse gases. This phase also saw the inclusion of aviation emissions and more robust monitoring, reporting, and verification (MRV) requirements.
Phase IV (2021-2030): The current phase focuses on further strengthening the system with a steeper annual reduction in the cap (2.2% per year), more sectors and gases included, and the introduction of the Market Stability Reserve (MSR) to address the surplus of allowances. Reforms aim to align with the EU's 2030 climate and energy framework and the European Green Deal's goal of carbon neutrality by 2050.

F

FuelEUMaritime

The FuelEU Maritime initiative is part of the EU's broader "Fit for 55" legislative package, which aims to reduce greenhouse gas (GHG) emissions by at least 55% by 2030. This regulation focuses on increasing the use of renewable and low-carbon fuels in the maritime sector to support decarbonisation efforts. Starting from January 2025, FuelEU Maritime sets stringent well-to-wake (whole life cycle) GHG intensity requirements for ships over 5,000 gross tonnage operating in EU waters, covering emissions from fuel extraction to use on board. Additionally, from 2030, passenger and container ships will be required to connect to onshore power supplies while at berth in major EU ports to reduce emissions during docking. This requirement will be extended to all ports with onshore power supply capabilities by 2035. The initiative adopts a technology-neutral and goal-based approach, encouraging innovation and allowing ship operators to choose the most suitable compliance strategies based on their specific operational profiles. Eligible fuels to reduce well-to-wake emissions include renewable fuels of non-biological origin (RFNBOs) such as hydrogen and e-fuels.

G

Geographical Correlation

Geographical correlation in the context of the Delegated Act on Article 27 of RED II mandates that the renewable electricity used for RFNBO production must be sourced from the same or an adjacent bidding zone where the production facility is located. This proximity ensures that the renewable energy is relevant and physically connected to the location of the RFNBO production, enhancing the traceability and authenticity of the renewable claims.

Green Premium

A green premium - in the hydrogen ecosystem - generally refers to the additional cost associated with producing or buying renewable hydrogen compared to conventional or grey hydrogen.

Greenhouse Gas (GHG)

Greenhouse Gases are gases that trap heat in the atmosphere, contributing to the greenhouse effect and climate change. Common greenhouse gases include carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O). Reducing GHG emissions is a primary goal of renewable energy policies like the RED.

Greenhouse Gas Protocol (GHG Protocol) and Scope 1-3

The GHG Protocol is a globally recognized framework for measuring and managing greenhouse gas emissions, developed by the World Resources Institute and the World Business Council for Sustainable Development. It categorises emissions into three scopes. The GHG Protocol provides comprehensive guidelines for companies to prepare accurate GHG inventories, identify reduction opportunities, and develop effective emission management strategies. It is widely adopted by businesses, governments, and organisations to ensure transparency, meet regulatory requirements, and achieve voluntary climate commitments.

Scope 1 covers direct emissions from owned or controlled sources, such as fuel combustion in company-owned vehicles or emissions from industrial processes.
Scope 2 includes indirect emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the reporting company, like the electricity used to power office buildings.
Scope 3 encompasses all other indirect emissions in a company’s value chain, including both upstream and downstream activities, such as emissions from business travel, waste disposal, and the use of sold products.

Guarantee of origin (GO)

A GO is the outcome of verifying a product’s chain of custody by the book-and-claim approach. A GO discloses the origin of a product to the end consumer. In the hydrogen space, GOs cannot be used to prove decarbonization against targets. Proofs of sustainability based on the mass balancing chain of custody can.

H

Hydrogen

Hydrogen is the lightest and most abundant chemical element in the universe. It is a colourless, odourless, and highly flammable gas at room temperature. Hydrogen is found in water and organic compounds and plays a crucial role in energy production through processes like hydrogen fuel cells. Its potential as a clean energy source makes it a key focus in efforts to reduce greenhouse gas emissions and combat climate change. Hydrogen is often categorised by colours to indicate its production method. Below, these methods are sorted by increasing GHG footprint:

Green Hydrogen: Produced by electrolysis using renewable energy sources (wind, solar, hydropower); no CO₂ emissions.
Pink Hydrogen: Produced by electrolysis using nuclear energy; low carbon emissions, depending on nuclear power.
Blue Hydrogen: Produced from natural gas with carbon capture and storage (CCS); lower carbon emissions than grey and brown/black hydrogen.
Turquoise Hydrogen: Produced through methane pyrolysis, generating solid carbon instead of CO₂; still under development and less common.
Yellow Hydrogen: Produced by electrolysis using grid electricity; GHG footprint depends on the energy mix of the grid, which can include non-renewable sources.
Grey Hydrogen: Produced from natural gas through steam methane reforming (SMR); significant CO₂ emissions.
Brown/Black Hydrogen: Produced from coal gasification; the highest CO₂ emissions due to the use of coal.

The key difference between low-carbon hydrogen and renewable hydrogen lies in their energy sources: Renewable hydrogen is derived from renewable sources like wind or solar and one example of RFNBO, while low-carbon hydrogen is produced from non-renewable sources, both achieving a minimum 70% reduction in greenhouse gas emissions compared to fossil fuels.

I

ISO 14065

ISO 14065 is an international standard developed by the International Organization for Standardization (ISO) focusing on the validation and verification of greenhouse gas (GHG) emissions and removals. It ensures the integrity, accuracy, and credibility of GHG data, which is essential for effective climate action and environmental management. The standard applies to third-party organisations that validate or verify environmental reports, providing criteria for accreditation to ensure these bodies are impartial and competent. ISO 14065 is part of the broader ISO 14000 series of environmental management standards and is often used alongside other standards like ISO 14064, which deals with quantifying and reporting GHG emissions.

Independent Power Producer (IPP)

An Independent Power Producer is a company that generates electric power beyond the traditional utility companies and sells it to utilities and end users. IPPs can operate in competitive electricity markets and may own plants that produce electricity using a variety of sources. They are crucial in driving the transition towards more sustainable and renewable energy sources globally, as they often invest in and develop renewable energy projects. These producers typically enter into power purchase agreements (PPAs) with utility companies or other end users to sell the electricity generated at agreed prices. The rise of IPPs has been facilitated by the deregulation of the electricity markets in many parts of the world, allowing for more competition and private investment in the energy sector. This has led to increased efficiency, innovation, and the adoption of newer technologies in power generation.

M

Mass Balance

Mass balance is a chain of custody method that involves mixing sustainable and non-sustainable materials during production while tracking the proportion of sustainable material throughout the supply chain. This method allows for the gradual increase of certified recycled and bio-based feedstocks in existing infrastructures. It preserves the sustainable attributes of certified feedstocks through detailed bookkeeping, even when mixed with non-certified materials. For example, a processing unit mixing 30% certified recycled and 70% fossil feedstocks can claim this ratio in the final product. Benefits include enhanced recycling rates, sustainable feedstock integration without new infrastructure, and increased supply chain transparency. Certification schemes like ISCC verify these processes, ensuring credible sustainability claims. Mass balance aids the transition to a circular economy by scaling up recycled and bio-based material use, reducing fossil resource dependency, and promoting sustainable production.

Methane and SMR

Methane (CH₄) is a simple hydrocarbon and the primary component of natural gas. It is produced through natural processes, such as the decomposition of organic matter in wetlands, and human activities, including the extraction and refinement of fossil fuels. Methane is a significant source of hydrogen production through steam methane reforming (SMR), where it reacts with water under high temperatures to produce hydrogen (H₂) and carbon dioxide (CO₂). However, this method generates substantial greenhouse gas emissions. To mitigate these emissions, carbon capture, utilisation, and storage (CCUS) technologies can be employed. CCUS involves capturing the CO₂ produced during SMR, then either utilising it in industrial processes or storing it underground to prevent it from entering the atmosphere, thereby reducing the overall carbon footprint of hydrogen production.

P

Power Purchase Agreement (PPA)

A PPA is a contract between a renewable energy producer and a buyer, such as an RFNBO producer, for the purchase of renewable electricity. PPAs provide a long-term, stably priced supply of renewable energy, supporting the financial viability of renewable energy projects and ensuring that hydrogen production is consistently powered by renewable sources.

Proof of Sustainability (PoS)

A PoS is the outcome of verifying a product’s chain of custody by the mass balancing approach. A PoS declares sustainability attributes of a batch and can be used to prove decarbonization against targets. A site operator can only issue PoS if the site is certified.

R

RFNBO (Renewable Fuels of Non-Biological Origin)

RFNBO are defined in Article 2(36) under the EU Renewable Energy Directive II (RED II). They refer to liquid or gaseous fuels, other than biofuels or biogas, where the energy content is derived from renewable sources other than biomass. Essentially, RFNBOs are fuels produced using renewable electricity to create hydrogen and hydrogen-derived fuels (e-ammonia, e-methanol, e-kerosene, …). In Article 27 and 28 of RED II, certain calculation rules are given which have to be fulfilled by RFNBO. Two Delegated Acts on articles 27 and 28 published in 2023 determine exact rules defining the RFNBO standard.

ReFuelEU

ReFuelEU Aviation is a regulatory initiative by the European Union aimed at increasing the use of Sustainable Aviation Fuels (SAF) to reduce greenhouse gas emissions from the aviation sector. This initiative is part of the broader "Fit for 55" package, aiming to reduce EU greenhouse gas emissions by 55% by 2030. The initiative mandates aviation fuel suppliers to gradually increase the proportion of SAF blended with conventional jet fuel at EU airports. By 2025, the share of SAF in EU airports is set to be 2%, increasing to 70% by 2050, with specific targets for synthetic aviation fuels as well (1.2% share by 2030, 35% share by 2050).

Renewable Energy Directive (RED)

The RED is a key policy framework established by the European Union to promote the use of renewable energy sources. Initially adopted in 2009 (RED I) and subsequently revised in 2018 (RED II) and 2023 (RED III), the directive sets binding targets for EU member states to increase their share of renewable energy in gross final energy consumption. It covers a wide range of renewable sources, including wind, solar, hydro, and biomass, and introduces specific measures to ensure sustainability and reduce greenhouse gas emissions. RED provides the regulatory framework for defining and promoting RFNBO.

RED I: Adopted in 2009, RED I set the initial framework for promoting renewable energy across the EU, establishing a target of 20% renewable energy in the EU's overall energy mix by 2020. It also introduced the concept of national renewable energy action plans to guide member states in achieving their targets.
RED II: Enacted in 2018, RED II raised the renewable energy target to 32% by 2030 and included provisions for advanced biofuels and sustainability criteria for biomass. It emphasised the importance of renewable energy in the transport sector, setting specific sub-targets for renewable fuels. It also integrates the requirements for RFNBOs.
RED III: Adopted in 2023, RED III further increases the ambition with a target of at least 40% renewable energy by 2030 and broadens the scope to include more stringent sustainability criteria and new sectors like heating and cooling. RED III also focuses on how to implement the goals of RED II and III.

S

Sustainable Aviation Fuel (SAF)

SAF encompass various types of aviation fuels produced from sustainable sources to reduce greenhouse gas emissions in the aviation sector. By 2025, SAF is expected to make up 2% of fuel used at EU airports, with this share rising to 70% by 2050. Specific targets for e-fuels include a 1.2% share by 2030 and 35% by 2050, as set by ReFuelEU. SAF can be derived from biological or synthetic sources, with e-fuels specifically referring to synthetic fuels made using renewable energy. There are several types of SAF:

Synthetic Aviation Fuels (E-Fuels): These are fuels produced using hydrogen (either from RFNBO or low-carbon sources) and CO2 (sourced from direct air capture, biogenic sources, or industrial point sources). E-fuels must achieve at least a 70% reduction in greenhouse gas emissions compared to a fossil comparator of 94 gCO₂eq/MJ, as per RED II guidelines.
Aviation Biofuel: This kerosene-based fuel is produced from sustainable biomass feedstocks.
Recycled Carbon Aviation Fuels: These kerosene-based fuels are made from recycled carbon sources, such as off-gas from steel mills, as defined in RED.
Aviation Hydrogen: Produced either from RFNBO or low-carbon sources, it can be used as a fuel directly in some aviation applications.

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T

THG Quota

The THG-Quota, established under German law since 2015, mandates a yearly reduction in greenhouse gas (GHG - in German “THG”) emissions for companies placing over 5,000 litres of fossil diesel or gasoline on the market. This regulation aims to increase the share of renewable energy in the mobility sector and reduce GHG emissions, aligning with the Renewable Energy Directive (RED) and the Paris Agreements. Companies can meet the quota by providing biofuels, power-based fuels like hydrogen or synthetic methane, counting upstream emission reductions, or through quota transfer agreements. The quota system allows for trading emission reduction credits, ensuring flexibility and compliance while encouraging the use of sustainable fuels and technologies. The Federal Environment Agency in Germany oversees compliance and reporting related to these quotas.

Temporal Correlation

Temporal correlation in the context of the Delegated Act on Article 27 of RED II requires that the renewable electricity used to produce RFNBOs must be generated concurrently with the fuel's production. This ensures that the electricity used is truly renewable at the time of hydrogen production, avoiding the use of non-renewable electricity during periods when renewable generation is not available.

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Traceability

Traceability refers to the ability to identify and trace the origin, processing history, and distribution of materials throughout the supply chain. This concept not only includes physically tracing products but also understanding what they are made of and how they have been processed. Essentially, traceability is about having a transparent map of a product's journey from inception to final delivery, ensuring every step complies with sustainability standards.

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