Factsheet: Biofuel quota

Biofuel quota

Key Information

Country/Region:

Description: 
This Decree-law defines the sustainability criteria for biofuels and sets mandatory blending targets for biofuels in the transport sector from 2011 to 2020. For 2013 the percentage of biofuels, in energy content, relative to the quantity of fuel supplied to the market is 5,5%, this increases to 7,5% in 2015 (art. 11 DL 117/2010 amended by DL 6/2012). If the quota's are not met, the supplier has to pay 2,000 euro per unit of biofuel entitlement missing. 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, Order 41/2011 established a formula for calculating the maximum selling price of biodiesel that can be practiced by producers when selling their production to the companies obliged to incorporate biodiesel. According to article 19(1) biofuels produced by dedicated small producers (PPD, Pequenos Produtores Dedicados) benefit from tax exemption.
Goal/Aim: 
Setting out a minimum share of biofuels in the transport sector.

Sector/Topic targeted:

Status: