Published on May 08, 2023 on our customer app
The French government published its proposal for the 2024 budget law (“Projet de loi de finances 2024” or “PLF 2024”) today, including all the rules applying for the TIRUERT framework in 2025.
The budget law will be debated during Q4-23 at the Parliament, with many amendments to be proposed, including for the article 13 “Strengthening tax incentives for the use of renewable energy in transport”.
Diesel/Gasoline renewable ambitions revised up
- Diesel renewable blending obligation increased from 9% e.c in 2024 to 9.4% (+0.4%)
- Advanced sub-target for the diesel obligation increased from 0.5% e.c in 2024 to 0.7% (+0.2%)
- 9B cap for the diesel blending obligation increased from 1.1% e.c in 2024 to 1.2% (+0.1%)
- Gasoline renewable blending obligation increased from 9.9% e.c in 2024 to 10.5% (+0.6%)
- Advanced sub-target for the gasoline obligation increased from 1.3% e.c in 2024 to 1.8% (+0.5%)
- 9B cap for the gasoline blending obligation increased from 0.9% e.c in 2024 to 1.1% (+0.2%)
- Cap for thin juice sugar beet (EP2) increased to from 1.1% e.c in 2024 to 1.2% (+0.1%)
- Share of thin juice sugar beet (EP2) accounted as crop decreased from 50% in 2023-2024 to 40% in 2025.
Note that all targets are expressed after multiple counts (MC).
More changes for the SAF mandate
- Double counting of renewable energy used in aviation abolished from 2025 (in line with RefuelEU)
- Obligation level increased from 1.5% e.c (MC) in 2024 to 2% e.c (physical), implying an impact of + 166% (equivalent 0.75% physical in 2024 to 2% in 2025).
- Penalty level in case of non-compliance (buy-out option) increased from EUR 1’680/cum to EUR 2’800/cum (+ 66%).
No maritime blending mandate proposed
Contrary to what the Minister of Ecologic Transition suggested last June, the PLF 2024 does not mention a maritime blending mandate to be enforced from 2025. This comes as a major surprise to us, as the Ministry was determined, at the time, to create a national framework to make sure the FuelEU regulation (2% GHG reduction) would be respected in France from 2025. This topic may be addressed during the debate.
We’ll follow up closely the debates at the Parliament in the coming weeks and report on any new significant proposal. The final text shall be voted before year-end and possibly around mid-December.