Biofuel quota
Updated: 18.01.2019
Author: Cristina Blajoin
There is a quota in place for adding biofuels to petrol and diesel (Art. 9 par. 6 Emergency Ordinance No. 80/2018). Starting from 1 January 2019, the bleding mandate for bioethanol will increase from 4.5% to 8% (art.3 par.3 letter b) Emergency Ordinance No.80/2018), whereas the bleding mandate for diesel will remain 6.5% (art. 9 par.6 Emergency Ordinance No.80/2018). Only certified biofuels satisfying specific sustainability criteria can be accounted into fulfilling the prescribed quota. These criteria are determined by law (Art. 11 par. 4-10 Emergency Ordinance No. 80/2018).
Eligible technologies
Biofuels fulfilling specific sustainability criteria are eligible. The sustainability criteria are regulated by law (Art. 11 par. 4-10 Emergency Ordinance No. 80/2018). Emergency Ordinance No. 80/2018 specifies technical specifications of gasoline (Annex 2) and diesel fuel (Annex 3) that can be sold to the final consumer.
Amount
| Amount of quota and period of application | As specified in the Emergency Ordinance No.80/2018,starting from 1 Janaury 2018, the mandatory quota for diesel is 6.5% and for bioethanol is 8% (art. 9 par.6 Emergency Ordinance No.80/2018).
Aside from fulfilling the prescribed biofuel quota, fuel retailers are obliged to meet reduction quota for greenhouse gas emissions. By 31 December 2020, fuel retailers have to reduce the greenhouse gas emissions of one unit of fossil fuel over its whole life-cycle by up to 10%, with a minimum of 6%, compared to the standard amount of greenhouse gas emissions of one unit of fossil fuels utilised in 2010 (art. 9 par. 1 Emergency Ordinance No.80/2018). |
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| Adjustment of quotas | The act does not specify any procedures for adjusting the quota level. |
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| Fees and penalty charges | Fuel retailers may be penalised for not fulfilling the defined quota and for not respecting the prescribed sustainability criteria with RON 70,000 - 100,000 (app. € 15,000 – 21,500) (art. 13 par. 2 letter a) Emergency Ordinanace No. 80/2018).
For not respecting the biofuel’s sustainability criteria (art. 11 par. 4-8 Emergency Ordinance No. 80/2018) as well as for failing to report on time about the fulfilment of the mandatory quota the economic operator is penalised with RON 50,000 - 70,000 (app. € 10,750 – 15,000) (art. 13 par. 2 letter b) Emergency Ordinanace No. 80/2018). Further, a penalty charge of RON 30,000 – 50,000 (app. € 6,450 - 10,450) falls due in case that fuel retailers does not show the relevant information regarding the standards and fuel specifications as indicated in the art. 3 par. 6-7 and art. 5 par. 4-5 of the Emergency Ordinance No. 80/2018 (art. 13 par. 2 letter c) Emergency Ordinanace No. 80/2018). |
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Addressees
Obligated party: Fuel retailers are obliged to fulfil the required quotas on an annually basis marketing biofuels which meet the prescribed sustainability criteria (Art. 12 par. 1 Emergency Ordinanace No. 80/2018). Fuel retailers are economic operators which exise duty for importing and/or producing fuels. (art.2 par.1 letter o Emergency Ordinance No. 80/2018).
Procedure
Process flow | - Biofuels taken into account for quota fulfilment need to be certified according to specific sustainability criteria. The sustainability criteria for biofuels are regulated by law (Art. 11 par. 4-10 Emergency Ordinance No. 80/2018).
- The fuel retailer has to account for the quota fulfilment on an annual basis and has to submit the yearly reports to the competent authority (art. 12 par. 2 Emergency Ordinanace No. 80/2018).
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Competent authority | The Ministry of Economy, Trade and Business Environment is responsible for verifying and monitoring the compliance with the prescribed biofuel quota (art. 4 par. 1,2 Decision No. 935/2011). |
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Distribution of costs
| Consumers | The costs are born by the costumers. |
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| Distribution mechanism | The obligated companies pass on the costs arising from the quota obligation to the consumers by adding a surcharge to their fuel prices. |
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