Sustainable Procurement Strategies for EU Fuel Marketers
Targray Biodiesel programs for the European market are designed to ensure that RED II compliance can be carried out efficiently, and in the most cost-effective manner possible. Operating out of Geneva, Switzerland, our EU Biodiesel Team leverages its expertise in compliance, trading, hedging, taxation and supply chain management to create valuable biodiesel procurement solutions for customers in fuel markets throughout Europe.
About the Renewable Energy Directive (RED II)
The Renewable Energy Directive (RED) establishes an overall policy for the production and promotion of energy from renewable sources in the European Union. The original RED required the EU to fulfill at least 20% of its total energy needs with renewables by 2020 – to be achieved through the attainment of individual national targets. All EU countries had to ensure that at least 10% of their transport fuels came from renewable sources by 2020.
In the 2018 revision of the Renewable Energy Directive (RED II), the overall EU target for Renewable Energy Sources consumption by 2030 has been raised to 32%. Member States must require fuel suppliers to supply a minimum of 14% of the energy consumed in road and rail transport by 2030 as renewable energy. Moreover, within the 14% transport target of RED II, there is a dedicated target for advanced biofuels produced from specific feedstocks. These fuels must be supplied at a minimum of 0.2% of transport energy in 2022, 1% in 2025 and increasing to at least 3.5% by 2030.
Greenhouse gas savings thresholds in RED II
|Plant operation start date||Transport biofuels||Transport renewable fuels of non-biological origin||Electricity, heating and cooling|
|Before October 2015||50%||–||–|
|After October 2015||60%||–||–|
|After January 2021||65%||70%||70%|
|After January 2026||65%||70%||80%|