📋 Tender Overview
The Ministry of Economic Affairs and Employment requests comments on proposed amendments to the Act on the Promotion of the Transport Use of Renewable Fuels (Act on Distribution Obligations) and the Act on Biofuels, Bioliquids and Biomass Fuels. In connection with the legislative amendments, the current Act on the Reduction of Life Cycle Greenhouse Gas Emissions from Certain Fuels would also be repealed.
The main objective of the proposal is to bring the legislation on the distribution obligation into line with the entries in the Government Programme. At the same time, the national provisions required by RED III will be implemented. The new provisions based on the directive will ensure that the renewable energy targets in transport in accordance with the directive will be achieved in Finland in 2030.
"The share of renewable fuels will continue to rise in order to reduce transport emissions. In addition, we will further develop the legislation on distribution obligations by introducing a new flexibility mechanism through which alternative emission reduction measures can be utilised, and we will introduce a separate obligation level for synthetic fuels based on renewable electricity and hydrogen (RFNBO) to accelerate investments," says Minister of the Environment and Climate Change Kai Mykkänen.
The legislative proposal amending the distribution obligation proposes that the increases in the distribution obligation levels for 2025–2027 be eased from the current act so that they would rise moderately from the 2024 level (13.5%). In accordance with the Government Programme, the distribution obligation would be 16.5 per cent next year, 19.5 per cent in 2026 and 22.5 per cent in 2027.
Synthetic renewable fuels of non-biological origin would be subject to their own gradually increasing minimum share obligation for the years 2028–2030. The minimum share obligation for these RFNBO fuels would be four percentage points in 2030. The RFNBO minimum share obligation is considered to promote new investments in Finland. In addition, renewable transport electricity delivered through publicly available charging points would be added as part of the range of means included in the distribution obligation.
At the same time, provision would be made for a so-called flexibility mechanism, within which a distributor could fulfil the distribution obligation by financing other alternative emission reduction measures implemented in Finland, primarily in the effort sharing sector. Later, the intention is to expand the distribution obligation so that the distribution obligation could also be fulfilled through emission reduction measures targeted at the land use sector. Certain technical amendments would also be made to the Act on Distribution Obligations.
The Act on Biofuels, Bioliquids and Biomass Fuels would be amended as required by the new definition of renewable fuels of non-biological origin.
The proposal is related to the 2025 budget proposal and is intended to be discussed in connection with it. The proposed acts are intended to enter into force on 1.1.2025.
Comments on the draft HE can be submitted until 26.7.2024
The draft Government proposal has been prepared as official work by the Ministry of Economic Affairs and Employment in cooperation with the Ministry of the Environment, the Ministry of Transport and Communications, the Ministry of Agriculture and Forestry and the Ministry of Finance.
Opinions on the draft HE can be given Lausuntopalvelu.fiLink to another sitewebsite. The statement does not need to be sent separately to the ministries by e-mail or post. The person issuing the statement must registerLink to another site and log in on the lausuntopalvelu.fi website. All statements made are public and will be published on the website.
If it is not possible to issue a statement in the Statement Service, it can also be sent by e-mail to kirjaamo.tem(at)gov.fi. The statement must mention case number VN/11908/2023.
On 11.6., the Ministry will organise a discussion event on the draft law in TEAMS
The Ministry of Economic Affairs and Employment will organise a discussion event on Tue 11.6. at 9.30–10.30 for those interested in the draft act. The event will be held via Teams. In it, the ministry's officials in charge present the draft law and answer questions. You can register for the event by 10.6. using this form.Link to another site You will then receive a direct link to the Teams meeting before the event.
