Kehler: “The Act on the GHG Quota Restores Market Integrity, Strengthens Advanced Fuels, but Poses a Risk for Bio-LNG.”

At its cabinet meeting today, the federal government discussed the draft bill to further develop the greenhouse gas reduction quota (GHG quota) as part of the implementation of the EU Renewable Energy Directive (RED III). Dr. Timm Kehler, CEO of the association Die Gas- und Wasserstoffwirtschaft, views the cabinet draft as an important step that finally restores confidence in the market, but also identifies significant risks.

“The new requirements for the GHG quota create more reliable framework conditions. In particular, the tightened measures for fraud prevention send a clear signal: the GHG quota market must once again stand for genuine climate protection. Mandatory on-site inspections are a key building block for this.

Beyond that, the draft contains substantial changes compared with the status quo: a new quota level for advanced fuels such as Bio-LNG and the elimination of double counting, as well as a new sub-quota for RFNBOs (Renewable Fuels of Non-Biological Origin) with triple counting until 2036. This will reshape the market.

However, the elimination of double counting for Bio-LNG may trigger unforeseen distortions and jeopardize the role of this widely established alternative in the truck segment. The further parliamentary process will need intensive discussion to provide a future perspective for investments already made.

What is clear is this: Bio-LNG remains one of the most cost-effective and practical compliance options. This alternative fuel is widely accepted, technologically mature, and available at around 200 filling stations in Germany. Numerous trucks using this only market-ready alternative to diesel are currently operating in Germany and save around 450,000 tonnes of CO₂ per year. Bio-LNG therefore already makes an important contribution to the defossilization of transport and should receive political support.”