Notice of public consultation regarding a proposed increase of the Biofuel Obligation rate
On 6th October 2015, the Minister for Communications, Energy and Natural Resources, Mr. Alex White, T.D., announced a public consultation in respect of a proposed increase in the rate of the Biofuels Obligation Scheme. The Biofuels Obligation Scheme was introduced with effect from 1st July 2010 by the Energy (Biofuel Obligation and Miscellaneous Provisions) Act 2010, and is administered by the National Oil Reserves Agency.
The Biofuels Obligation Scheme requires suppliers of road transport fuels to include a certain percentage of biofuel across their general fuel mix, and works on the basis of tradable certificates. The current obligation rate is 6.383% or 6/94, meaning that for every 94 litres of fossil fuel an obligated party has placed on the market, it must hold 6 certificates. Certificates are awarded on the basis of 2 certificates per litre of sustainable biofuel if that biofuel is produced from wastes or residues or 1 certificate per litre for all other sustainable biofuels.
It is estimated that in order to achieve the binding target for Ireland of 10% a biofuel obligation rate of 12% by volume may be needed by 2020. Therefore the obligation rate must be increased progressively and in a managed and phased basis over the coming years. The Department is now seeking views on an increase to the biofuel obligation rate from 2016.
This consultation closed on Friday 30th October 2015 and 16 responses were received. The non-confidential elements of these responses are available at the 'View Submissions' link below.
Submissions were received from:
Department of Public Expenditure and Reform
National Oil Reserves Agency
Green Biofuels Ireland
Department of Transport, Tourism and Sport
Composting and Anaerobic Digestion Association of Ireland (Cré)
National Standards Authority of Ireland
the Irish Bioenergy Association
Irish Petroleum Industry Association
Department of Environment, Community and Local Government