GHG Quota: German Bundestag Sends Important Signal for Climate-Friendly Fuels

The German Bundestag is debating today the amendment of the greenhouse gas reduction quota (GHG quota). With a more ambitious increase pathway and a higher sub-quota for renewable fuels of non-biological origin (RFNBOs), a key impetus is being set for scaling up climate-friendly fuels. Dr. Timm Kehler, CEO of the association Die Gas- und Wasserstoffwirtschaft, comments:

“After lengthy negotiations, it is good that clarity has finally been achieved: the GHG quota will be extended until 2040 and made significantly more ambitious. This provides an important boost for the ramp-up of renewable fuels such as bio-LNG and bio-CNG. The increase in the RFNBO sub-quota compared to the original cabinet draft also sends a strong signal for the market ramp-up of hydrogen and its derivatives in the transport sector. This simultaneously strengthens the entire value chain—from production to infrastructure and applications.

Particularly in heavy-duty transport, the GHG quota creates the conditions for renewable alternatives such as bio-LNG and bio-CNG to remain competitive with diesel. However, the quota alone is not sufficient. The market can only grow if these fuels are also recognized as climate-friendly in toll regulations and EU fleet average rules.

Measures to prevent fraud, introduced as part of the GHG quota amendment, are also important. This marks a first step towards ensuring that the GHG quota can once again fulfill its role as an effective and trustworthy climate protection instrument in the future. It is now crucial that the Biofuels Sustainability Ordinance is adopted swiftly and that the agreed measures are consistently implemented and effectively monitored.”