Government approves 10% biofuel requirement for 2020

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The EU directive calls for a share of biofuels in road transport energy of at least 10% by 2020. Source: (Martin Dremljuga/ERR)

The government on Thursday approved amendments to the Liquid Fuel Act according to which 10% of all energy used for road transport needs to come from biofuel by 2020.

The approved bill writes a European Union directive into national legislation. The requirement of the directive is the same, namely that all fuels used in the country’s road transport need to include at least 10% biofuels by the year 2020.

Fuels produced from renewable sources, mainly green electricity, made up for just 0.2% of the energy used for transport in Estonia, the government’s press office said on Thursday.

According to the bill, the fuels released from the state’s excise warehouses need to contain at least 3.3% biofuels starting as early as May 1, 2017. In April 2018, this is to increase to 6.4%, then to at least 8% in 2019, and to reach the full 10% required by the EU in the year 2020.

The change is expected to affect fuel prices. Gasoline is expected to become about 0.5 cent more expensive per liter, the increase of the price of diesel will be higher, at 1 to 1.15 cent per liter. For 2020, the price increase could reach 1.5 to 4.5 cents per liter compared to 2016’s levels.

Editor: Editor: Dario Cavegn

Source: BNS

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