Biofuel quota

Updated: 31.01.2017

Author: Stefan Ćetković

The Biofuel Act sets that the Croatian State needs to adopt an Energy Action Plan and file in annual reports on placing biofuels on the market (Art. 7 and 8 Biofuel Act). The latest National Biofuel Action Plan was adopted in the year 2010 and sets the goal of a biofuel market share of 10% in the transport sector by 2020. 

These objectives are obliging the actors on the market to follow the goals set in the action plans and to prepare their own plans and programmes of placing biofuels on the market (Art. 14 and 15 Biofuel Act).

The Act also foresees that the Ministry of Economy issues Quota Obligation Rules and an Environmental Penalty Decree issued by the Government in case the obligations are not met (Art. 14a and 29 Biofuel Act).

Eligible technologies

According to the Biofuel Act in conjunction with the Energy Action Plan, the quota obligations apply to biofuels.

Biofuels

Pursuant to Art. 20 § 1 Biofuel Act the following biofuels are eligible:

  • biodiesel from rapeseed,
  • bioethanol from corn,
  • bioethanol from sugar beet,
  • biodiesel from waste cooking oil
  • biodiesel from lignocellulosic raw materials,
  • bioethanol from lignocellulosic raw materials,
  • biogas,
  • biomethanol.

Amount

Amount of quota and period of application

The Energy Action Plan from the year 2010 sets the following goals per year (page 47 National Biofuel Action Plan 2011 - 2020):

2016 5.16 % share of biofuels

2017 6.53 % share of biofuels

2018 7.78 % share of biofuels

2019 9.01 % share of biofuels

2020 10.05 % share of biofuels

All data refers to % of share in the usage of energy in the sector of transport.

Adjustment of quotas

The methods and formulae for the calculation of adjustment of quotas are issued by the Ministry of Economy and are an integral part of the Quota Obligation Rules (Art. 8 Quota Obligation Rules).

Fees and penalty charges

The penalty for not fulfilling the obligation is calculated based on the formula set in Art. 3 Environmental Penalty Decree.

Addressees

A distributor, who trades diesel or petrol for motor vehicles or vessels and is according to the Excise Duty Act obligated to pay the excise duty tax, is deemed to be the obligated party for placing biofuels on the market and is the addressee of the quota obligations. The only exception are small retailers (Art. 4 § 1 no. 19 Biofuel Act).

Procedure

Process flow

The obligated party sends annual reports containing data and analyses on the fulfilment of obligations in the previous year and future measures. If the obligated party failed to achieve the amount of biofuel, it shall indicate in its annual report that the missing quantity will be put on the market in the following year.

The report is submitted to the Ministry of Economy together with the prescribed documentation by the end of February for the previous year.

If in two consecutive years he failed to fulfil the prescribed obligation, the Ministry of Economy shall issue a decision on the payment of a fine (in accordance with the Environmental Penalty Decree) in favour of the Environmental Protection and Energy Efficiency Fund (Art. 16 and 17 Quota Obligation Rules).

Competent authority

The Ministry of Economy

Distribution of costs

Others

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

Consumers

The costs are borne by the consumers.

Croatia

Further information