Biofuel quota (National Indicative Target)

Updated: 14.02.2017

Author: Michał Gulczyński

The Act on Biocomponents and Liquid Biofuels obliges producers, importers and suppliers of fuels to meet a defined quota of biofuels. The act introduces the national indicative targets (NCW), i.e. annual minimum percentages of biofuels and other renewable fuels in the total amount of liquid fuels. The NCW levels are determined every three years for a period of 6 years by the Council of Ministers.

Eligible technologies

The obligation applies to biofuels and biohydrogen only (art. 2 par. 1 no. 11 Act on Biocomponents and Liquid Biofuels).
Biocomponents supplied or used to produce fuels must meet quality requirements as evidenced by certification from accredited certification bodies (art. 22 par. 1 Act on Biocomponents and Liquid Biofuels).

Biofuels

The following biocomponents are eligible:

  • bioethanol
  • biomethanol
  • biobutanol
  • ester
  • dimethyl ether
  • pure vegetable oil
  • bio liquid hydrocarbons
  • bio propane-butane 
  • liquefied biomethane
  • compressed biomethane and biohydrogen, which are produced from biomass for use in the manufacture of liquid fuels or biofuels (art. 2 par. 1 no. 3 Act on Biocomponents and Liquid Biofuels).

Hydrogen

Biohydrogen is eligible (art. 2 par. 1 no. 11c Act on Biocomponents and Liquid Biofuels).

Amount

Amount of quota and period of application

The obliged companies have to ensure that biofuels make up a certain percentage of the company’s total annual sale or consumption of fuel (art. 23 par. 1 Act on Biocomponents and Liquid Biofuels). The following quotas have been set for the period from 2013 to 2018 (§ 1 Regulation on the National Indicative Targets):

  • 2013 - 7.10%
  • 2014 - 7.10%
  • 2015 - 7.10%
  • 2016 - 7.10%
  • 2017 - 7.80%
  • 2018 - 8.50% 

Adjustment of quotas

Every 3 years by 15 June, the Council of Ministers shall determine, by regulation, the National Indicative Targets for the next six years, taking into account the technical manufacturing conditions (art. 24 par. 1 Act on Biocomponents and Liquid Biofuels).

The Council of Ministers may, by regulation, lower the amount of quota obligation in the event of extraordinary market events leading to changing conditions of supply of agricultural raw materials or biomass (art. 24 par. 2 Act on Biocomponents and Liquid Biofuels).

Fees and penalty charges

If an obliged company fails to fulfil the quota, it will be punished with a fine (art. 33 par. 1 no. 5 Act on Biocomponents and Liquid Biofuels). The amount of the fine is calculated with a formula described in art. 33 par. 5 Act on Biocomponents and Liquid Biofuels).

Addressees

All companies which produce, import, supply or use fuels for their own purposes are obliged to meet the biofuels quota (art. 23 par. 1 in conjunction with art. 2 par. 1 no. 25 Act on Biocomponents and Liquid Biofuels).

Procedure

Process flow

The obliged company sends an annual report to the president of the Energy Regulatory Office within 90 days after the end of the calendar year as evidence for the fulfilment of the obligation (art. 30b par. 1 Act on Biocomponents and Liquid Biofuels).

Competent authority

Energy Regulatory Office (Urząd Regulacji Energetyki)

Distribution of costs

Consumers

The costs are borne by the consumers.

Poland

Further information