In 2019, the EU adopted the ‘Clean Energy for All package’ to help decarbonize the EU’s energy system and move towards cleaner energy. This package included a revision of the Renewable Energy Directive, also known as REDII.

REDII laid out common rules to ensure efficient and consistent checks for businesses in the realm of clean energy. Specifically, those rules and checks relate to businesses’ compliance with the EU’s sustainability criteria, their provision of accurate data on greenhouse gas (GHG) emission savings, and their compliance with the criteria for certification of low-indirect land-use change. Moreover, the regulation sets out a number of specific rules, such as the implementation of a mass balance system.

Voluntary certification schemes, such as the International Sustainability and Carbon Certification (ISCC), and national certification schemes of EU member states were given the responsibility to help ensure that biofuels, bioliquids, and biomass fuels are sustainably produced by verifying compliance with the EU sustainability criteria. For the certification process itself, an external auditor verifies that businesses comply with the requirements at each stage of the production chain.

On October 9, 2023, the Council of the EU adopted once again new rules on the Renewable Energy Directive. The proposal to revise the directive came as a response to the energy aspects of the EU’s climate transition under the ‘Fit for 55 Package’. This package aims to align the EU’s climate and energy legislative framework with its 2050 climate neutrality objective and with its objective of reducing net greenhouse gas emissions by at least 55 percent by 2030 compared to 1990 levels.

With the second revision of the directive, the Council aims to raise the share of renewable energy in the EU’s overall energy consumption to 42.5 percent by 2030. Each member state will contribute to this common target, mostly by achieving more ambitious sector-specific targets. Those sub-targets will speed up the integration of renewables in sectors where incorporation has been lower.

To reach the binding targets in the transport and industry sectors, the use of advanced biofuels and renewable fuels of non-biological origin is even more emphasized. Moreover, the directive strengthens the sustainability criteria for the use of biomass for energy in order to reduce the risk of unsustainable bioenergy production. Member states will ensure that the cascading principle is applied, with a focus on support schemes and with due regard to national specificities.

We are delighted to see that the EU is making steps in the right direction. With these new targets, companies will be even more confronted with supply chain traceability in the future. Do not hesitate to contact us if you want to explore automated supply chain traceability.

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