Biofuel quota (Act on Sustainable Biofuels)
Updated: 04.01.2019
Author: Karl Wikberg
The Act on Sustainable Biofuels obliges importers and producers of petrol and diesel to meet a defined quota of biofuels (§ 3 par. 1 Act 674/2011). Obliged fuel suppliers may pass on this obligation to other companies (§ 3 par. 5 Act 674/2011).
Eligible technologies
Only biofuels are subject to the obligation.
Biofuels | Biofuels are understood as liquid or gaseous fuel for transport produced from biomass (§ 2 no. 1 Act 674/2011). |
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Amount
Amount of quota and period of application | The providers of petrol or diesel fuels have to ensure that biofuels make up at least 5.75% and advanced biofuels at least 0.9% measured by energy content of the company’s total annual fuel sales. The obligation must be fulfilled by the end of each calendar year (§ 3 par. 1 Act 674/2011). |
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Adjustment of quotas | The Climate and Energy Minister may lower the amount of quota obligation in the event of a crisis or lack of biofuels (§ 3 par. 6 Act 674/2011) |
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Fees and penalty charges | If a provider fails to fulfil the quota, he will be punished by a fine (§ 8 Act 674/2011). |
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Addressees
The quota obligation applies to companies, which declare and pay energy tax according to Act on the Energy Tax on Mineral Oil Products and the like for liquid fuel sold for transportation, or the natural gas supplier that supplies gaseous fuel to a gas stations, or companies which neither declare nor pay energy tax for fuel, but sell fuel to a company that declares and pays energy tax and consumes fuel (§ 2 No. 10 and § 3 Act 674/2011).
Procedure
Process flow | - The obliged company sends an annual report to the Climate and Energy Minister as evidence for the fulfillment of the obligation (§ 5 Act 674/2011).
- Penalty charge. If a company fails to fulfil the quota, the responsible authority charges a penalty (§ 8 Act 674/2011).
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Competent authority | Danish Energy Agency |
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Distribution of costs
Consumers | The costs are borne by the consumers. |
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Distribution mechanism | The obliged companies pass on the costs arising from the quota obligation to the consumers by adding a surcharge to their fuel. |
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