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The REDII Delegated Acts (DAs) have been officially released, marking a significant milestone in the field of renewable energy and Carbon Capture and Utilisation (CCU). The enforcement of these Delegated Acts is scheduled to commence on July 10, 2023. The regulations, namely the Delegated Act on Additionality and the Delegated Act on GHG Methodology, hold significant importance not only for the current EU legislation, REDII, but also for the forthcoming EU legislation, REDIII, which is in its final stages of development.

The first regulation focuses on the concept of “additionality” and outlines the conditions under which renewable electricity can be utilised for the production of Renewable Fuels (RFNBOs) and Recycled Carbon Fuels (RCFs). The primary objective is to ensure that the production of green hydrogen and CCU fuels contributes to the expansion of renewable energy assets rather than relying solely on existing ones.

The second regulation addresses the greenhouse gases (GHG) methodology and establishes that for fuels to be labelled as RFNBOs or RCFs, they must achieve a minimum of 70% GHG savings compared to their fossil fuel equivalents. The methodology provides the necessary factors and criteria for calculating whether these fuels meet the 70% threshold.

CO₂ Value Europe welcomes the publication of these two pieces of legislation as they represent crucial enablers for the production and widespread adoption of CCU fuels, which are vital for achieving the European Union’s defossilisation goals.

However, while we appreciate the European Commission’s objective of promoting the use of biogenic CO₂ and Direct Air Capture (DAC) CO₂ to achieve climate neutrality, we also identify a challenge concerning the sunset clause for industrial carbon use. Particularly for unavoidable process emissions, as setting a strict deadline might become a significant barrier to kick-starting large-scale production of CCU fuels.

For a comprehensive understanding of these legislations, we encourage our members to refer to the joint statement we shared back in March and the links below, as it accurately represent these final legislations.

Find more about the Delegated Act on Additionality here.

Find more about the Delegated Act on GHG Methodology here.

Find our Joint Statement here.