The decree-law requiring minimum quotas for the incorporation of biodiesel into road diesel entered into force on February 27, 2009, according to a statement published yesterday in the Diário da República. Under the new legislation, oil companies are required to incorporate 6% biodiesel into their diesel this year and 10% in 2010.
The new rules, approved by the Cabinet on December 23, target producers of biofuels that replace diesel intended to be incorporated into fossil fuels for road transport and “any entities” that supply diesel for road consumption. Small producers of biofuels or other renewable fuels are excluded.
The law provides for fines ranging from 500 to 3,740 euros for natural persons, and from 2,500 to 44,891 euros for legal entities, in cases of violation of the minimum mandatory founding quotas or “unlawful refusal to sell by biofuel producers”.
The decree-law also provides that entities are obliged to register with the General Directorate of Energy and Geology (DGEG) for the possession of the minimum biofuel certificate (CdB) in diesel fuel that allows them to achieve the specified establishment objectives.
Biofuel not enough to meet targets
The certificate states that after the corresponding Community Directive has been transposed into domestic law, “legal and regulatory measures have been adopted with the aim of promoting the effective introduction of biofuels and other renewable fuels into the transport market.” “Total or partial exemption from the tax on petroleum and energy products is foreseen for biofuels introduced for consumption.”
The document acknowledges that “the national industry’s response to the challenge has been rapid, with an installed capacity of 540,000 tonnes of biofuels instead of diesel (biodiesel).” However, “as in other EU countries, the current rate of integration of biofuels or other renewable fuels into national consumption still appears insufficient to ensure compliance with short-term national targets.”
