Delays to the GHG Quota Slow Down Bio-LNG and Climate Action in Heavy-Duty Transport

The German Bundestag has unexpectedly removed the second and third readings of the greenhouse gas reduction quota (GHG quota) from today’s agenda. This delays a key instrument that could further expand the significant price advantage of bio-LNG over diesel. Particularly in light of the recent sharp increase in diesel prices, this has caused concern for Dr. Timm Kehler, CEO of the association Die Gas- und Wasserstoffwirtschaft:

“Bio-LNG is already available today as a climate-friendly alternative for heavy-duty transport that is not only immediately deployable but also economically compelling: At prices below EUR 0.90 per kilogram, bio-LNG is significantly cheaper than diesel, which currently costs well over EUR 2.00 per liter. Moreover, the energy content of one kilogram of bio-LNG is considerably higher than that of one liter of diesel. In times of crisis such as today, when diesel and gasoline prices are soaring, bio-LNG remains price-stable at a low level. At the same time, the fuel is increasingly being produced in Europe and is therefore less vulnerable to geopolitical crises and price shocks on international energy markets.

It is therefore all the more difficult to understand why the coalition parties are now hitting the brakes. The GHG quota can be the decisive instrument to further increase the price advantage of bio-LNG and accelerate its uptake in heavy-duty transport. Especially now, operators of bio-LNG infrastructure and vehicles need clear signals to ensure the continued deployment of renewable fuels and to provide companies with planning certainty for investments.

Following the market distortions caused by suspected misdeclared imports, it is also clear that reliable rules for control, transparency, and fraud prevention are urgently needed. The GHG quota can only be effective if its integrity is ensured. The industry has made substantial upfront investments at its own expense and, without state subsidies, has established a nationwide refueling infrastructure: around 200 filling stations now distribute almost exclusively climate-neutral bio-LNG. Infrastructure, vehicles, and fuels are therefore available. What is missing are clear and reliable political framework conditions that enable investment and accelerate market ramp-up.”