Message 001
Communication from the Commission - TRIS/(2024) 1244
Directive (EU) 2015/1535
Notification: 2024/0253/NL
Notification of a draft text from a Member State
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Does not open the delays - N'ouvre pas de délai - Kein Fristbeginn - Не се предвижда период на прекъсване - Nezahajuje prodlení - Fristerne indledes ikke - Καμμία έναρξη προθεσμίας - No abre el plazo - Viivituste perioodi ei avata - Määräaika ei ala tästä - Ne otvara razdoblje kašnjenja - Nem nyitja meg a késéseket - Non fa decorrere la mora - Atidėjimai nepradedami - Atlikšanas laikposms nesākas - Ma jiftaħx il-perijodi ta’ dewmien - Geen termijnbegin - Nie otwiera opóźnień - Não inicia o prazo - Nu deschide perioadele de stagnare - Nezačína oneskorenia - Ne uvaja zamud - Inleder ingen frist - Ní osclaíonn sé na moilleanna
MSG: 20241244.EN
1. MSG 001 IND 2024 0253 NL EN 08-05-2024 NL NOTIF
2. Netherlands
3A. Ministerie van Financiën
Belastingdienst/Douane centrale dienst voor in- en uitvoer
3B. Ministerie van Economische Zaken en Klimaat,
Directie Wetgeving en Juridische Zaken
Afdeling Klimaat en Energie
4. 2024/0253/NL - N00E - ENERGY CARRIER
5. Act amending the Environmental Management Act and the Economic Offences Act in relation to increasing the share of gas from renewable sources in total gas supplies to customers (Green Gas Blending Obligation Act)
6. This concerns an administrative obligation on energy suppliers to offer gas from renewable sources (green gas) in the supplies via the distribution system to the ETS2 customer group.
7.
8. The proposal for a Green Gas Blending Obligation introduces an administrative obligation for energy suppliers established in the Netherlands to deliver a certain proportion of their gas supplies to their customers corresponding to the green gas ETS2 customer groups. The draft law adapts the already existing Environmental Management Act and adds a title (Title 9.9) in Article I (B), which includes the proposed green gas blending obligation. The emissions reports required by ETS2 shall serve as a basis for determining total gas deliveries per calendar year, per energy supplier. On the basis of these emission reports – and supporting information on the total gas supplies to the ETS1 customer groups – the Dutch emission authority determines the market share of each energy supplier falling under the obligation in total gas supplies to the relevant customer groups. An absolute target is set for each calendar year – expected from 1 January 2026 and in any case until 1 January 2030 – for the supply of green gas in subordinate regulations for all suppliers under liability combined, growing exponentially from 2026 to 2031 up to 3.8 Mt of CO2 chain emission reduction by 2030. This obligation is therefore divided between the individual energy suppliers according to their market share in the total gas supplies concerned. The obligation takes shape by introducing a new tradable unit: the green gas unit. One green gas unit represents a contribution to the annual liability of one kg CO2 equivalent chain reduction. These are emissions along the entire chain, i.e. the production, transport, distribution and use of renewable energy.
The emission reduction unit added as a result of entering a quantity of blended gas from renewable sources represents a quantity of kilograms of carbon dioxide equivalent (kg CO2 eq) chain-emission savings. In a register to be newly set up by the Dutch Emissions Authority, energy suppliers are able to enter a quantity of green gas and convert this into green gas units in order to fulfil their obligation . The green gas to be entered will for the time being correspond to the number of guarantees of origin purchased by the energy supplier (depending on the practical impact of the Union Database).
The proposed Article 9.9.4.1 ‘Entering gas from renewable sources’ sets out the requirements for gas from renewable sources that is eligible for entry and can count towards the national green gas blending obligation. This concerns gas from renewable sources produced from a production installation located in the Netherlands, fed into the Dutch distribution network or transmission network, supplied to customers in the calendar year immediately preceding that date and complies with the requirements laid down in Article 9.9.4.2. These requirements concern the sustainability and greenhouse-gas emissions saving criteria laid down by or pursuant to general administrative order and other requirements imposed by or pursuant to general administrative regulation. The condition that green gas must have been produced in the Netherlands in order to be eligible for entry is a temporary measure. This is supported by the accompanying explanatory memorandum under section 3.1 and explained under point 9 of this form.
The requirements that are to be laid down in underlying legislation under the proposed Article 9.9.4.2 are in line with the requirements of the Renewable Energy Directive. This is further explained in the explanatory memorandum in section 2.4. This concerns a producer of green gas having to satisfy two conditions. It must be able to demonstrate that a certification scheme approved by the European Commission (EC) has been added for the biofeedstock used, called the Proof of Sustainability (PoS), and that the producer is certified in accordance with the RED criteria. For this reason, a mutual recognition provision does not apply.
The Dutch Emissions Authority has several tools to ensure compliance with the obligation is maintained. This concerns imposing an order subject to periodic penalty payments, imposing an administrative fine, or transferral to the criminal justice chain.
Only green gas that meets the sustainability requirements referred to in Directive (EU) 2018/2001 and any sustainability requirements that may be defined in greater detail are permitted in the proposed Green Gas Blending Obligation Act. In doing so, the Dutch Emissions Authority monitors the certification of sustainability or greenhouse-gas emissions saving criteria. In the draft law, green gas is also only produced from a production installation located in the Netherlands and this is fed into the Dutch distribution or transmission network. The exclusion of green gas produced in other countries is of a temporary nature. A basis has been included in the draft law to prepare this in underlying legislation.
A possibility for a total or partial exemption from the annual obligation has been included in the form of a buy-out, in the event the production of green gas is lagging behind, and this is to lead to unwanted scarcity and price developments.
9. The aim of this measure is to increase the use of green gas in the Netherlands, and incentivise the production of green gas. A guaranteed demand will provide sufficient confidence to make the necessary investments on the supply side. Incentivisation with grants alone has led to insufficient results. Together with the development of ETS to energy suppliers, this measure can make a considerable conservation impact and achieve a significant reduction in greenhouse gas emissions. In doing so, the measure pursues a general objective; namely, protecting the environment.
The measure will temporarily differentiate according to the location of producing green gas. Only green gas produced in the Netherlands can count towards compliance with the blending obligation. This does not prohibit imports from other Member States, and therefore the recognition of guarantees of origin issued in another Member State. Green gas produced in other Member State is permitted in the renewable energy obligation for transport, to comply with ETS obligations and when companies take the initiative to further go green. The temporary exclusion of green gas produced abroad in the proposed blending obligation is necessary to thus incentivise domestic production in order to meet the high aspirations that the European Union and the Dutch Government have set.
This temporary restriction has been assessed in the light of Article 34 of the Treaty on the Functioning of European Union (TFEU). In accordance with the principle of proportionality, the proposed measure is appropriate and necessary for achieving the legitimate aim pursued, and the measure may not exceed what is necessary to achieve that objective. In that regard, it is clear from established case-law that national measures that might impede trade within the European Union may in particular be justified by imperative requirements of environmental protection, such as the requirements laid down in the RED. The use of renewable energy sources promotes the protection of the environment by contributing to the reduction of greenhouse-gas emissions; It contributes to the protection of the health and life of humans, animals and plants, which are among the reasons for general interest referred to in Article 36 TFEU. On the basis of Article 36 TFEU, the provision of Article 34 shall not preclude prohibitions or restrictions on imports, exports or transit, which have been justified on grounds of, inter alia, the protection of health and the life of humans, animals or plants.
As regards the principle of non-discrimination, environmental protection objectives can justify national environmental protection measures that might impede intra-European Union trade on the grounds of nationality, provided that such measures are proportionate to the objective pursued. An absolute target is set for the application of the proposed blending obligation, the exclusion of imported green gas is necessary in order to significantly increase national production of green gas instead of redistributing existing green gas production in the EU. The increased national production of green gas will be needed to achieve the increasing environmental protection objectives. In doing so, the Netherlands is making a maximum contribution to the EU objectives, is guaranteeing additional green gas production instead of redistributing existing production in the EU, and is contributing to a reinforced, robust green gas market.
Finally, the measure must not go beyond what is necessary to achieve the objective. The exclusion of green gas produced abroad is expected to be a temporary measure necessary for making significant use of the growth potential of the Dutch green gas market to scale up national production of green gas. The measure will be closely monitored and periodically reviewed, inter alia, to determine whether the exclusion of green gas produced abroad is still a necessary part of the blending obligation. The Government also includes in this the development of the European green gas market, the production volume and the production price level in other Member States, as well as the availability of incentivisation instruments and sales markets in other Member States. When it appears at European level that there is a mature market and a level playing field with green gas being broadly incentivised and valorised, the need for this restriction may be removed.
Additional information necessary for assessment:
The proposal for a green gas blending obligation is also being used in the light of achieving the Union’s binding overall target for 2030 for the use of renewable energy as laid down in Article 3 of Directive (EU) 2018/2001 of the
European Parliament and the Council of 11 December 2018 on promoting the use of energy from renewable sources.
10. Numbers or titles of basic texts:
11. No
12.
13. No
14. No
15. No
16.
TBT aspects:
The draft is a technical regulation or a conformity assessment
SPS aspects: No
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European Commission
Contact point Directive (EU) 2015/1535
email: grow-dir2015-1535-central@ec.europa.eu
