German cabinet sets 59% GHG quota by 2040, bans double-counting, adds SAF mandate

The “Second Law for the Further Development of the Greenhouse Gas Reduction Quota” is designed to implement the EU’s RED III directive and the ReFuelEU Aviation regulation into national law. It aims to provide investment security for producers of advanced biofuels and green hydrogen while cracking down on fraudulent imports that have plagued the market in recent years. Market activity across the biofuels complex in recent weeks has been suppressed amid ongoing speculation about the expected timeline for implementing Germany’s RED III bill. The German Cabinet was initially scheduled to discuss the legislation in the first week of October, with the aim of transposing it ahead of Jan. 1, 2026. Subsequently, however, the Cabinet postponed reaching a decision on the bill week to week, amid a reported lack of consensus among the key ministries involved in drafting the bill. As a result, the available window for the bill to pass this year through both the lower and upper houses of ...