Biofuel quota

Updated: 06.02.2019

Author: Moïra Jimeno

Companies introducing fuels for consumption shall incorporate a certain percentage of biofuels in the fuels they supply to the market. DL 117/2010 (art. 11, no.1) sets the percentage of biofuels that shall be incorporated from 2011 to 2020.

Eligible technologies

Obligation to incorporate biofuels in the fuels provided for consumption from 2011 to 2020. 

Biofuels

Eligible (art. 1 (no. 1) of DL 117/2010).

Amount

Amount of quota and period of application

Generally, companies introducing fuels for consumption shall incorporate the following percentage of biofuels, in energy content, relative to the quantity of fuels they supply to the market (art. 11 DL 117/2010 amended by L 42/2016):

  • 2011 and 2012 — 5.0%;
  • 2013 and 2014 — 5.5%;
  • 2015, 2016 and 2017 — 7.5%;
  • 2018 — 9.0%;
  • 2019 and 2020 — 10.0%.

Companies shall incorporate by the end of 2014, a minimum of 6.75% (v/v) of biodiesel (specified by EN 14214) in the diesel provided for the transport (art. 28 DL 117/2010).

Adjustment of quotas

The quotas are already defined for the period 2011 - 2020.

Fees and penalty charges

If the above-mentioned companies do not meet the quota provided for in art. 28 DL 117/2010, they are subject to pay a compensation of € 2,000 per unit of biofuel entitlement (TdB) missing. As an alternative to the referred amount, the National Entity for the Fuels Market (ENMC) upon request of the company, may authorise to meet the obligation quota in the following trimester, considering the obligation fulfilled with the presentation of 1.5 TdBs for each missing TdB (art. 24 DL 117/2010 amended by art. 24 DL 69/2016). Each TdB represents 1 TOE (art. 13 DL 117/2010). The amount to be paid shall be reviewed before 31 December 2014 (art. 1 Ordinance 301/2011).

Addressees

Companies that supply fuels for consumption (art. 11 DL 117/2010 amended by DL 6/2012).

Procedure

Process flow

DL 117/2010 sets a system with the issuance of biofuels entitlements (Título de Biocombustível, TdB) to verify the compliance with the blending targets. The TdBs are tradable units and provide an alternative way to fulfil the targets. The TdBs are valid for 2 years (art. 13 DL 117/2010) and the criteria and information required for the emission of the TdBs are listed in articles 15 to 17 DL 117/2010. 

The companies introducing fuels for consumption shall send to the National Entity for the Fuels Market (ENMC) the TdBs of the biofuels incorporated in the previous trimester, until the end of the following month. Afterwards, the ENMC cancels the TdBs (art. 18 DL 117/2010).  

Competent authority

The National Laboratory for Energy and Geology (LNEG) verifies the compliance with the sustainability criteria (from July 2014, art. 2 DL 224/2012) and the DGEG supervises the procedure (art. 20 and 22 DL 117/2010). Ordinance 8/2012 sets the functions of the Sustainability Criteria Compliance Coordination Entity (ECS, Entidade Coordenadora do Cumprimento dos Critérios de Sustentabilidade) within the LNEG.

According to art. 23 DL 117/2010, the DGEG will notify the European Commission every two years (starting in 2013) of the amounts of biofuels incorporated in the previous years.

Distribution of costs

Consumers

The costs are borne by the consumers.

Distribution mechanism

The obliged companies pass the costs arising from the quota obligation to the consumers. However, in order to maintain an acceptable cost to the consumer, Ordinance 41/2011 established a formula for calculating the maximum selling price of biodiesel that can be performed by producers when selling their production to the companies obliged to incorporate biodiesel.

Portugal

Further information

  • Ministério da Economia, da Inovação e do Desenvolvimento. Direcção Geral de Energia e Geologia (DGEG) – Directorate General for Energy and Geology at the Ministry of Economy, Innovation and Development
  • +351 217 922 782
  • DGEG website
  • Racionalizacao.Energia(at)dgge.pt