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). |
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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 %): |
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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) |
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Adjustment of quotas | The quotas are calculated incrementally starting from 1.5% in 2011 (Sixth schedule S.L. 423.28). |
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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). |
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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)
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Competent authority | Malta Resources Authority (MRA) |
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