Classification and sustainability criteria for renewable fuels

In the project, the Renewable Energy Directive (RED) has been mapped to identify which types of value chains leave room for interpretation of the regulations and what consequences this may entail. The ability of RED to promote resource efficiency has also been evaluated.

Through the Renewable Energy Directive (RED), the EU promotes the use of renewable fuels. RED includes a standardized method for classifying and calculating greenhouse gas emissions from fuels. However, uncertainties remain regarding its application in certain cases, for example regarding blended feedstocks and for integrated fuel production facilities. In this project, RED was mapped to identify value chains where different interpretations are possible and to assess their consequences. RED’s ability to reward resource-efficient concepts was also evaluated.

Several areas have been identified where we see that clarifications and amendments are needed for RED to function as a policy instrument that drives a sustainable transition of the energy system in an efficient way. The general conclusions of the project can be summarized as follows:

RED lacks clarifications and concrete examples and is therefore generally difficult to interpret.
RED is inconsistent.
RED does not always reward resource-, energy-, and climate-efficient concepts.

The project has therefore developed recommendations to make RED clearer, more consistent, and better at rewarding resource efficiency.