EU Council finally adopts RED III. Member States have 18 months to implement it

The Council of the European Union formally adopted on 9 October 2023 the revised Renewable Energy Directive (RED III). It raises the binding EU target for the renewables share in 2030 from 32% to 42.5%, with an additional 2.5 percentage points as an indicative supplement. After approval by Parliament (12 September) and the Council, the directive will be signed and published in the Official Journal of the EU, and Member States will receive about 18 months to implement it. For the biogas and biomethane sector, a stage of preparation for national rules begins.

What is changing

Adoption of the directive closes a legislative cycle that began in 2021. The directive will enter into force twenty days after publication, and most of its provisions will have to be transposed by countries within about 18 months of that date. For renewable gases, the most important are:

• extended sectoral targets for transport, industry, heating and buildings,
• improved rules on tracking and certifying fuels, including gaseous ones,
• tightened sustainability and emission-saving criteria for bioenergy,
• simplified permitting procedures and recognition of renewables as being in the public interest.

In practice, countries are to create national systems of guarantees of origin and databases that will be compatible with the EU ones.

Significance for the industry in Poland

Poland has two parallel tasks. First, to implement RED III, including the targets for transport and heating, taking biomethane into account. Second, to refine the rules introduced in August 2023 into the Act on Renewable Energy Sources (the register of producers, guarantees of origin, the support system). It will be important for the industry that the legislative process include consultation with producers and grid operators.

High sectoral targets may create demand for biomethane in industrial heating and transport, but they require support instruments and infrastructure. A risk factor is uncertainty about the pace of national work.

What to pay attention to

Companies should analyse which provisions will affect their business model: sustainability criteria, the list of feedstocks (Annex IX), reporting obligations and permitting procedures. It is worth taking part in public consultations on national drafts.

What 18 months means

A year and a half for transposition seems a long time, but the legislative process in Member States can be slow: consultations, inter-ministerial coordination, parliamentary work. For biomethane investment, it would be beneficial for draft acts to be presented earlier, so that the industry can plan projects in advance. The biggest risk is a situation in which the rules appear just before the deadline and businesses have little time to adapt.

What next

After the directive is published, the Commission will prepare implementing and delegated acts. In Poland the climate ministry will begin work on a draft act implementing the directive, which should take into account the findings of industry consultations.