Biofuel quota (Obbligo di immissione)
Updated: 07.02.2019
Author: Jasmin Schwarz
In 2006, the quota “obbligo di immissione in consume” was introduced to reduce CO2 emissions in the transport sector. It defines a share of biofuelsThis scheme defines the share of biofuels that transport fuel suppliers need to include in their supply to the transport sector. Since 2018 transport fuel suppliers are requested to not only fulfil a general biofuel quota but also a quota of advanced biofuel.
To monitor whether the biofuel quota (“obbligo di immissione”) is reached, The biofuel certificates system was introduced. One consumption release certificate “CIC’s” (“Certificati Immissione in Consume”) normally attests 10 Gcal of biofuel fed into the gas system for transport. However, advanced biofuels (defined in Annex 3, DM 02.03.2018) receive a CIC for every 5 Gcal of biofuel fed into the system. (Art. 11.1, j, DM 02.03.2018). transport fuel suppliers who do not reach the biofuel quota can buy those certificates on a dedicated trading platform.
Eligible technologies
Eligible are all producers of fuels derived from biomass in form of gas (bio-methane, bio-hydrogen) or as liquids (bio-ethanol, bio-diesel) used in the transport sector (Art.1,b,c,DM 10.10.2014). Advanced biofuels are biofuels that are exclusively produced from raw materials such as agricultural and industrial wastes residues, ligno-cellulosic materials, cellulosic materials and algae listed in Annex 3, DM 02.03.2018.
| Biofuels | Eligible are all producers of fuels derived from biomass in form of gas (bio-methane, bio-hydrogen) or as liquids (bio-ethanol, bio diesel) used in the transport sector (Art.1,b,c,DM 10.10.2014). Biomethane generated form biohydrogen is eligible (Art. 1.1, DM 02.03.2018) |
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Amount
| Amount of quota and period of application | The quota is calculated with the formulas laid out in Art.11.1 e, m, DM 02.03.2018. For the time period from 2015-2022 the following quotas are foreseen (Art.11.1 e, DM 02.03.2018):
- 2015: 5% biofuels, of which 0% advanced biofuels
- 2016: 5.5% biofuels, of which 0% advanced biofuels
- 2017: 6.5 % biofuels, of which 0% advanced biofuels
- 2018: 7% biofuels, of which 0,6% advanced biofuels
- 2019: 8% biofuels, of which 0,8% advanced biofuels
- 2020: 9% biofuels 2019: 8% biofuels, of which at least 0,9% of advanced biofuels
- 2021: 9% biofuels, of which at least 1,5% of advanced biofuels (Art.1, DM 13 dicembre 2017)
- From 2022 on: 9% biofuels, of which 1,85% of advanced biofuels
The quota for advanced biofuels is divided into two sub-categories (Art.11.1 f, DM 02.03.2018):
- advanced biomethane (75%)
- other advanced biofuels (25%).
One certificate attests 10 gcal of biofuel or 5 gcal of advanced biofuels.
Under certain conditions biofuel producers are entitled to receive more certificates than they would receive based on the amount of Gigacalories. (“maggiorazioni”). (DM 02.03.2018) |
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| Fees and penalty charges | The respect of the quotas is monitored through a certificates system (see below) The amount for non-compliance with the obligation is fixed 750€ per certificate, depending on the degree of non-compliance (Art. 1.2 DM 20.01.2015) The penalty threshold and the maximum quota certrificates that can be postponed to the next year is defined in Annex 4, DM 02.03.2018). |
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Addressees
The obligated party are all subjects that feed gasoline or diesel for consumption in the system. (Art. 2.1, k, DM 10.10.2014)
The entitled party are all qualified producers of biofuels.
Procedure
Process flow | The process of verification of the biofuel quota works as follows:
By 31 January of each year, the obligated parties communicate to the competent authority the total amount of gasoline, diesel, biofuels and advanced biofuels fed in the system in the previous year and the share of biofuels they are to feed in the system in the current year (Art. 4.1, DM 10.10.2014)
From 1 to 31 October of each year, the competent authority verifies the amounts corresponding to the certificates with the information received by 31 January and verifies compliance to the obligation (Art. 7.2, DM 10.10.2014)
Access of bioful producers to certificates:
First the producer needs to request to be qualified through the portal of GSE providing information defined in Art. 9, DM 02.03.2018 not later than one year after entry into operation. GSE evaluates the request of qualification within 120 day. (Art. 9.3, DM 02.03.2018).
If the producers are qualified, GSE issues the CICs on a monthly basis in accordance with the procedures established by the GSE (Link) no later than 90 days after the end of the month to which the CIC refers. (Art. 5.1, DM 02.03.2018). |
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Competent authority | The Ministry of Agricultural, Alimentary and Forestal Policies (art. 5, c. 1, D 110/08). |
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Distribution of costs
| Consumers | The charges for the release of certificates are invoiced by GSE to Gas and Diesel suppliers. (Art. 6.1, c, DM 02.03.2018) The emission of biofuel certificates creates additional costs to producers and importers. These costs are mirrored by gasoline prices. |
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| Distribution mechanism | - The Authority, through the obligation, creates additional costs to producers and importers
- Producers increase their prices to withstand those costs
- Costs are redistributed to consumers
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Italy
