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Dec 2019

UCOME proposed for DC in 2020

Local sources revealed this week that the Danish Parliament is currently studying a draft of law that would amend the Biofuels Act and introduce major changes to the regulatory environment. After years of delaying, authorities finally do what it takes to comply with the RED target next year.

The draft of law will be debated and amended until December 17, before it is voted on December 19. We list here the main proposals of the current version:

  • Increase of the blending mandate from 5.75% to 7.6% e.c. in 2020. From 2021, the blending requirement would be decreased back to 5.75% e.c.
  • Advanced sub-target of 0.9% e.c, which would only confirm the current Biofuels Act. This point is reportedly discussed by Deputies, as some argue that there is not enough supply.
  • The drat contains a provision allowing The Ministry of Climate and Energy to reduce the global mandate or the advanced sub-target in case “ (…) 2) advanced biofuels are disproportionately expensive; 3) there is a lack of sustainable biofuels”.
  • Introduction of the Annex IX Part A and B for the definition of eligible feedstocks to the advanced sub-target and the DC scheme; that would imply that UCOME would become eligible to the DC market from 2020. Until now, Denmark was the only EU country to double count TME but not UCOME.
  • A minimum 5% vol. share within the gasoline sales would be introduced from 2020 in order to support ethanol, which enjoys a lower ILUC factor.
  • A roll-out allowance of 0.5% e.c of the obligation into the next year would be possible, but not during years when Denmark has obligations at the EU level (like 2020).
  • Biofuels that would be used in the aviation and maritime sectors would be eligible to meet the 7.6% e.c mandate.