EU Renewable Energy Directive target
Every EU Member States has a mandatory renewable energy in transport target to achieve by 2020. For Ireland, it is set out that 10% of Ireland's energy must be renewable in the transport sector. In 2010, the Government put in place the Biofuels Obligation Scheme to assist Ireland in its effort to meet this obligation. This scheme ensures that a proportion of the transport fuel used in the State consists of environmentally sustainable biofuels. It is administered by the National Oil Reserves Agency and further details on the scheme are available on their website www.nora.ie.
Currently, the Biofuels Obligation Scheme places a requirement on suppliers of road transport fuels that 8% (by volume) of the fuels (generally gasoline and motor diesel) they place on the market in Ireland are produced from renewable sources, e.g. ethanol and biodiesel.
Draft Order increasing the obligation rate
In April 2018, the Minister for Communications, Climate Action and Environment published the Biofuel Obligation Scheme Policy Statement. This was informed by the responses received to the Biofuel Obligation Scheme public consultation which took place in December 2017 and January 2018.
Following on from this, on the 20th of April 2018, the Minister for Communications, Climate Action and Environment published a draft order proposing that the percentage rate referred to in section 44C(3)(b) of the National Oil Reserves Agency Act 2007 (as amended) shall be 11.111 per cent with effect from 1st January 2019 in order to increase the obligation to 10% by volume from 2019.
The closing date for submissions was Friday 18th May 2018. The consultation is now closed.