Strengthening the European Commission's Certification of Biofuels

This blog was coauthored by Sacha Alberici and Gemma Toop.

Since 2010, the European Commission has recognized voluntary schemes (or certification schemes) as the main mechanism to demonstrate that biofuels meet the sustainability requirements of the Renewable Energy Directive (RED), which is needed for the fuels to be counted toward European renewable energy targets. Voluntary schemes have played a critical role in facilitating industry compliance with sustainability standards, and will continue to do so under REDII to 2030. REDII expands the expected role of voluntary schemes to also certify fuels produced from forest biomass and renewable gases such as biomethane and hydrogen. 

With the introduction of REDII comes the need to reassess all voluntary schemes to confirm they cover the criteria in the new directive. Guidehouse is working with the European Commission to strengthen and harmonize the schemes’ rules and practices, taking into consideration the experience from RED. A new implementing regulation act translates the lessons learned into specific rules designed to guide biofuel certification onto a good path to 2030. Key topics that will have a big impact include the following:

• Scheme governance and transparency: To improve voluntary scheme transparency and make information available to the whole industry, the implementing act proposes that schemes publish key information freely on their website. This includes a scheme governance structure and contact details; a list of scheme participants, their certification status, and their certificates or summary audit reports; and results of the annual monitoring activities by schemes. 
  

• Mass balance: Fuel supply chains are required to use a mass balance system to trace sustainability information down the fuel supply chain. This enables materials to be physically mixed, while the integrity of the sustainability information is maintained down the chain. The practical application of the mass balance system has been prone to different interpretations by the market. The act aims to overcome this with rules to confirm sustainability characteristics are assigned to the correct product group by providing a standard list of sustainability characteristics that need to be passed down the chain, and by giving guidance for auditors to check that the rules are applied correctly.
  

• Wastes and residues: Waste and residues (such as used cooking oil) provide an important source of sustainable feedstock, but there have been examples of bad practices and fraud. The act proposes rules that strengthen audits of waste and residue supply chains so only real wastes and residues are encouraged. For the first time, the European Commission is providing a positive list of materials that can be classed as wastes or residues for the purpose of sustainability and greenhouse gas certification, which is designed to give more certainty to the market and improve consistency across schemes and countries. 
  

Establishing the Path for Bio Sustainability

The new act is an opportunity to improve the certification of biofuels used in the European Union and set the standard and direction for the next decade of bio sustainability. For several of the topics, especially mass balance, scheme participants will need practical guidance from voluntary schemes to understand the new rules . For some topics, participants will also need to continue working to develop the system in tandem with the market. For example, participants should determine how to ensure robust accounting of gases like biomethane and hydrogen transported across a gas grid. Contact Guidehouse with questions regarding the implementing act or sustainability certification for bioenergy.