Biofuel quota (Substitution obligation for biofuels)

Updated: 18.12.2017

Author: Jörn Banasiak

The substitution obligation on imports and wholesales of fossil fuels was introduced in 2011 through an amendment to Legal Notice 278 of 2007 to promote the use of biofuels. The amendment obliges the licensed importers and wholesalers of petroleum products to place on the market a minimum amount of biofuel as a percentage of the total content of petrol and diesel that is imported or wholesaled (§ 33 (1) S.L. 423.28).

Eligible technologies

Subject to the obligation are biofuels. 

Biofuels

Biofuels including liquid or gaseous fuel produced from biomass, including biodiesels, biodimethylethers, bioethanols, biogases, biogydrogens, biomethanols, bio-ETBEs, bio-MTBEs, pure vegetable oils and synthetic biofuels (§ 2 (2) S.L. 423.28).

Amount

Amount of quota and period of application

Year

Minimum biofuel content of the total petroleum placed on the market by an authorised petroleum importer and/or wholesaler (in %):

2011

1.5

2012

2.5

2013

3.5

2014

4.5

2015

5.5

2016

6.5

2017

7.5

2018

8.5

2019

9.5

2020

10.0

(Sixth schedule S.L. 423.28)

Adjustment of quotas

The quotas are calculated incrementally starting from 1.5% in 2011 (Sixth schedule S.L. 423.28).

Fees and penalty charges

Any person who wilfully or through negligence breaches one of the provisions included in the regulation is considered guilty and shall, on conviction, be liable to imprisonment for a period up to eighteen months, or to a total fine of up to € 69,881.20, or to € 1,397.62 for each day in which the offence persists, or both (§ 34 S.L. 423.28). 

Addressees

Importers and/or wholesalers of petroleum (§ 33 (1) S.L. 423.28).

Procedure

Process flow

  •  The acquisition, importation, transfer, possession, keeping, blending, bottling, wholesaling and lending of any petroleum product requires an authorisation (§ 3 (1) S.L. 423.28). 
  • For the import or wholesale of petroleum, a signed declaration in the form and manner established by the Authority shall be provided (§ 3 (2) S.L. 423.28). 
  • For the declaration, a yearly administrative fee of € 500 shall be paid to the Authority. In case the Authority finds the declaration to be incorrect, false and/or incomplete, a bank guarantee of € 2,000 shall be made in favour of the Authority (§ 3 (2) S.L. 423.28). 
  • Authorisations for the import and/or wholesale of petroleum are valid for a period of six years (§ 6 (4) S.L. 423.28)

Competent authority

Malta Resources Authority (MRA)

Malta

Further information

  • Regulator for Energy & Water Services
  • +356 2295 5000
  • REWS website

Basic information on legal sources