What is the Renewable Energy Directive?

The Renewable Energy Directive (known as RED II) sets a binding target on the share of renewable energy sources to be used as part of the gross energy use in the European Union (EU) of at least 32%. The recently provisionally agreed amendments to the Directive (to be RED III) change that to 42.5% with an aim that could take it to 45% by 2030.

How does this affect shipping?

For the transport sector the provisional agreement allows member states to choose between:

  • a binding target of 14.5% reduction of greenhouse gas intensity in transport from the use of renewables by 2030; or
  • a binding target of at least 29% share of renewables within the final consumption of energy in the transport sector by 2030

when setting targets in their national legislation.

However, given that FuelEU Maritime has provisionally binding targets for greenhouse gas intensity already for shipping, they are not expected to change for shipping.

A further target within the above targets has been provisionally set that advanced biofuels (generally derived from non-food-based feedstocks) and renewable fuels of non-biological origin (RFNBOs) should make up a combined 5.5% share of the of renewable energy target by 2030, with RFNBOs making up a minimum of 1% of that.