The Ministry for Ecological Transition and the Demographic Challenge (MITECO) opened the proposed Royal Decree for the promotion of renewable fuels to a public hearing this Thursday . The proposed Royal Decree transposes Directive (EU) 2023/2413 (DER III).and establishes market penetration obligations for transport fuel suppliers to ensure compliance with the National Integrated Energy and Climate Plan (PNIEC 2023-2030), which provides for a 16.3% reduction in greenhouse gas (GHG) emissions by 2030.

To meet the PNIEC objective, the focus will be on the use of domestic renewables, prioritizing electrification—with a new incentive system called e-credits—and fuels with lower impacts, such as those derived from waste treatment or non-biological sources (RFNBO). Achieving these goals will result in progressive savings in fossil fuel imports reaching €3 billion annually by the end of the decade, representing 10% of Spain’s current energy trade deficit of €30.442 billion in 2024. In addition to the economic impact, the measures will also contribute to strengthening our strategic autonomy: a reduction in energy imports is estimated to be equivalent to 2.5% of primary energy consumption in 2030, and up to 10% in the transport sector.

This proposed Royal Decree proposes a change in the methodology for accounting for efforts to decarbonize transport, as it envisions a system based on GHG emissions reductions, as opposed to the traditional energy content calculation, which will boost demand for products with a lower carbon footprint. In this regard, it sets the annual GHG emissions reduction path for fuel suppliers for rail transport, domestic shipping, and road transport, and recognizes the targets set out in the ReFuelEU Aviation Regulation for aviation. It also introduces subtargets for advanced biofuels, biogas and renewable fuels, advanced bioethanol, and intermediate-use RFNBO, used in refinery transformation processes.

EMISSION REDUCTION OBLIGATIONS

To meet the targets set by DER III and achieve the ambition of our NECP, this proposed Royal Decree doubles the current renewable energy penetration targets in road transport for 2030 and introduces new modal emissions reduction targets for parent companies of fuel suppliers in other areas of the transport sector:

· In road transport, the GHG reduction target is 15.6% by the end of the decade.

In air transport, the objectives set by the ReFuelEU Aviation Regulation are recognized. This regulation establishes that sustainable aviation fuels must represent 2% of the total from 2025 to 2029 and 6% from 1 January 2030, all measured in tonnes rather than GHGs.

In maritime transport, a target is set, applicable only to coastal shipping (between Spanish ports), which must achieve a 3% GHG reduction by 2030.

· In non-electrified rail transport, a GHG emissions reduction target of 5.4% has been set for 2030.

Furthermore, it expands the number of entities obligated to contribute to the emissions reduction target and introduces the concept of qualified entities into the legislation. Those who, while not required to meet renewable energy targets in transportation, can also obtain renewable fuel certificates, which can be sold to obligated entities to meet their respective obligations. This increases market options for meeting the targets and encourages new business models.

SUB-OBJECTIVES OF RENEWABLE FUELS IN TRANSPORT

In addition to the general GHG reduction obligations by mode of transport, the draft Royal Decree incorporates sub-targets to promote the consumption of fuels with lower impacts. These fuels, such as NBOs and advanced biofuels, will make it easier to meet GHG obligations thanks to a system of multipliers. That is, each energy unit will have a higher value when calculating GHG reductions, as indicated in the Directive being transposed.

· Subtarget for advanced biofuels, biogas, and other renewable fuels for transport purposes, of 5.5%, plus an additional subtarget for RFNBO—regardless of the final sector in which they are consumed—of 2.5%. These have multipliers to promote them compared to fuels derived from food and feed crops.

· An additional specific sub-target for advanced bioethanol on gasoline sales in road transport of 0.5% by 2030, to boost the circular economy by utilizing waste already generated in our territory.

· Intermediate-use RFNBO sub-target of 1.5% by 2030, to be applied only in refinery transformation processes, when replacing fossil-based hydrogen.

ELECTRICITY CREDITS IN TRANSPORTATION: E-CREDITS

To help achieve the established goals, the regulation lays the groundwork for the creation of a renewable electricity credit (e-credit) mechanism, a voluntary system for those required to introduce renewable energy into transportation to account for the clean energy consumed by electric vehicles. At the same time, e-credits will provide additional income for charging station operators.

The e-credits will strengthen the Executive’s commitment to the progressive electrification of the economy in general and transportation in particular. They will be valid for a maximum period of 24 months from the date of issue. MITECO will manage the exchange mechanism, as well as their recognition and accounting.

FLEXIBILITY AND DISTINCTIVE SEALS

To facilitate the achievement of the goals set for those whose activities involve different modes of transport, the regulation also proposes the establishment of a flexibility mechanism that allows them to include excess energy from renewable fuels supplied to a given mode of transport in the rest of their objectives.

In this regard, the company also seeks to highlight, for the first time, decarbonization efforts through two awards that will annually recognize companies that have successfully certified the greatest reduction in GHG emissions with renewable fuels and electricity, with the “Leader in Energy Transition in the Transport Sector” seal. Those that have certified the largest number of RFNBOs will, in turn, receive the “Leader in Certified Renewable Hydrogen” seal.

NATIONAL SUSTAINABILITY VERIFICATION SYSTEM

The sustainability characteristics for RFNBO and low-carbon fuels are defined, which must be implemented in accordance with DER III and the methodologies established in the delegated regulations. This not only provides greater guarantees for consumers, but also prevents misleading advertising or greenwashing practices .

As a new development, the creation of a National Sustainability Verification System is planned for these fuels, as well as for biogas and its derivatives. These national schemes will cover all stages of the value chain, from origin to market, with the aim of incentivizing their use to meet renewable energy targets in transport. This measure provides users with a traceability system parallel to those currently offered by the voluntary schemes recognized by the European Commission, thus minimizing the associated certification costs.

STRENGTHENING THE FIGHT AGAINST FRAUD

MITECO may inspect economic operators participating in the National Sustainability Verification System—which will be implemented by ministerial order—to ensure compliance with sustainability and GHG emission reduction requirements.

The regulation also provides for strengthening the oversight mechanisms of the verification entities responsible for certifying the penetration of renewable energy so that, if cases of non-compliance are detected, they are reported to the certification body, which may suspend or revoke the corresponding accreditation.

Finally, a specific sanctioning regime is established for obligated entities that fail to meet their emission reduction targets, with financial fines; in the event of repeated violations, temporary suspension of activity or even disqualification is contemplated.

Those interested in submitting objections may do so until September 8 by emailing [email protected] , indicating in the subject line “AeIP Objections to the Royal Decree on Transposition of DER III.”