RED III and renewable electricity

The 2023 revision of the Renewable Energy Directive (RED III) was adapted to momentous changes in the transport sector and road transport in particular: The role of gaseous and liquid fuels will shrink over time, as Battery Electric Vehicles (BEVs) will dominate in the longer term. Already by 2030, a rapid growth in BEV sales will result in a significant share of the existing fleet running on electricity.

In that context, it is crucial to reserve a greater role for renewable electricity (RES-E) as transport fuel, moving away from an exclusive reliance on biofuel blending mandates. The RED III obliges member states to introduce a credit mechanism in all EU27 to allow operators of public  recharging points to sell credits for the RES-E charged by BEVs to fuel suppliers. This will require significant changes in how member states promote renewables in transport. In this briefing, T&E advocates for an ambitious implementation of these credit mechanisms, in a way that supports the roll-out of public recharging infrastructure, electromobility in general and also encourages drivers to maximize the share of RES-E in their recharging sessions.

Drawing on best practices in countries with a credit mechanism, the following recommendations will deliver on the above-mentioned goals:

• For public recharging, credit should not be limited only to metered kWhs, but also introduce credits for rolling out (fast-recharging) capacity.
• Private recharging should be included in the scope. Fixed values for different types of BEVs are an easy way to recognize that the bulk of RES-E recharging will be ‘behind the meter’.
• It should be possible to credit 100% RES-E by introducing workable rules on a ‘direct connection’ between a recharging point and e.g. wind and solar.
• Multipliers to recognize the higher efficiency and GHG savings are crucial to adequately credit RES-E. The RED III’s 4x multiplier for RES-E is a good starting point.