Content of two enabling Acts required by the Renewable Energy Directive (RED II) adopted by the European Union (EU)

The second authorization bill defines a method for calculating life-cycle greenhouse gas emissions from renewable fuels from non-biological sources. The approach takes into account greenhouse gas emissions throughout the life cycle of fuels, including upstream emissions, emissions associated with obtaining electricity from the grid, processing, and transporting these fuels to the final consumer. The method also clarifies ways to co-produce greenhouse gas emissions from renewable hydrogen or its derivatives in facilities that produce fossil fuels.

The European Commission says RFNBO will only count towards the EU's renewable energy target if it reduces greenhouse gas emissions by more than 70 percent compared with fossil fuels, the same as the renewable hydrogen standard applied to biomass production.

In addition, a compromise appears to have been reached on whether to classify low hydrocarbons (hydrogen produced by nuclear power or possibly from fossil fuels that can be carbon captured or stored) as renewable hydrogen, with a separate ruling on low hydrocarbons by the end of 2024, according to the Commission's note accompanying the authorisation bill. According to the Commission's proposal, by December 31, 2024, the EU will stipulate in its enabling Act ways of assessing the reduction of greenhouse gas emissions from low-carbon fuels.