European Directives require EU Member States to undertake efforts to increase the share of renewable energy in the transport sector. In addition, they impose an obligation on fuel suppliers to reduce greenhouse gas emissions from their fuels by 6%. Each Member State implements these obligations in its own way.
Energy for Transport system
In the Netherlands, these obligations have been translated into a system of Energy for Transport legislation and regulations. The annual obligation requires companies to continuously increase the share of renewable energy use for transport. The reduction obligation is the requirement to reduce greenhouse gas emissions. The system also incorporates the Dutch renewable energy ambitions set out in the Climate Agreement.
Implementation through a market mechanism
At the heart of the Energy for Transport system is a market mechanism based on renewable energy units (hernieuwbare brandstofeenheden, HBEs). Both the annual obligation and the reduction obligation are expressed as a required number of HBEs. In order to comply, companies subject to an obligation must ensure they hold sufficient HBEs in their account in the Energy for Transport Registry before 1 May of each year.
HBEs are created when companies deliver renewable energy and register the relevant deliveries in the REV. Companies that are subject to an obligation can choose to register deliveries to obtain HBEs or to purchase HBEs from other companies. To this end, the Dutch government has set up an emissions trading system through which participants can jointly deliver their mandatory share of renewable energy in the most cost-effective way.
The Market mechanism and HBEs page provides further details on the operation of the market mechanism, its participants and HBEs.