EU: European Commission issues new guidance on RFNBOs under RED

On September 2, 2024, the European Commission (EC) published guidance regarding the targets for the consumption of renewable fuels of non-biological origin (RFNBOs) in the industry and transport sector under the Renewable Energy Directive III (RED III). Since the revised RED III expands the definition of RFNBOs to cover all applications, not just their use as transport fuels, which was the focus in the previous RED II definition, the guidance clarifies how RFNBOs contribute to both transport and industry goals, and ensures transparency in emissions calculations.

RFNBOs are defined as fuels derived from renewable energy sources other than biomass, including synthetic fuels and green hydrogen. Under the RED