Biofuel quota (Distribution obligation system)

Updated: 07.01.2019

Author: Karl Wikberg

The Act on the Promotion of Biofuels in Transport obliges vendors of petrol and diesel to fulfil a defined quota of biofuels. The amount of biofuels has to be increased year by year to make up 20% of the total sales by the year 2020 (§ 5 Act No. 446/2007).

Eligible technologies

This obligation only applies to biofuels. 


Biofuels have to comply with the requirements defined in the Act on Biofuels and Bioliquids (§ 5 § 2 Act No. 446/2007, § 5, Act No. 393/2013).


Amount of quota and period of application

Obligation period

Quota obligation


6.0 %


8.0 %


10.0 %


12.0 %


15.0 %


18.0 %

2020 and afterwards

20.0 %

When biofuel is produced from waste, residues or inedible cellulose or lignocelluloses, its energy content is counted as double when calculating the final amount of biofuels (§5 Act No.446/2007).

Fees and penalty charges

If the retailer fails to fulfil the quota, a fine will follow. The penalty payment will be calculated based on the amount by which the retailer has failed to fulfil the quota, where each mega joule (MJ) is charged € 0.04  (§ 11 Act No. 446/2007).


The quota obligation applies to fuel retailing companies (§ 3 Act No. 446/2007).


Process flow

  •  The obligated company has to send an annual report to the Tax Administration showing the part of petrol, diesel and biofuels in their annual sales and thereby proving the fulfilment of obligation. The report has to be sent within March for the previous calendar year (§ 7 Act No. 446/2007). 
  • If the company fails to fulfil the quota the Tax Administration is entitled to charge a penalty payment (§ 11 Act No. 446/2007). 
  • In case where the obligated company presents false or otherwise incomplete data about their sales, the Tax Administration has the right to impose an error payment of at least € 500 and at most up to € 5000 (§ 12 Act No. 446/2007). 
  • If the fuel retailing company has exceeded the quota of biofuels during one calendar year, it shall be taken into account for the following calendar year (§5 b Act No.446/2007).

Competent authority

The Finnish Tax Administration

Distribution of costs


The costs are borne by the consumers.

Distribution mechanism

The obliged companies pass on the costs arising from the quota obligation to the consumers by adding a surcharge to their fuel.


Further information

Basic information on legal sources