Biofuels

Biofuel Obligation Scheme

Background to Biofuel Obligation

As set out in the Energy Policy Framework, the Bioenergy Action Plan and the Programme for Government, the Government has introduced a biofuel obligation to ensure that a certain percentage of the transport fuel used in the state consists of biofuels. Such an obligation scheme will be a key component in achieving a 10% penetration of renewable energy in transport by 2020, to which the Government has committed under the proposed new EU Renewable energy and climate change packages, set out by the European Commission.

This type of regulatory mechanism is increasingly being adopted across the EU and generally supplants earlier and more direct means of supporting biofuels, such as excise tax relief schemes. The biofuel obligation scheme should allow for a gradual uptake of these new fuel supplies and will adopt the new sustainability criteria which will come with the new binding EU targets. While other forms of renewable energy will play an important role in transport by 2020, it is expected that biofuels will retain a substantial role, and that successively higher obligations rates will be required to deliver that overarching 10% target.

The Biofuel Obligation Scheme (BOS) began on 1 July 2010. It is being administered by the National Oil Reserves Agency (NORA).

Press Releases

29 Sept 2008 Minister Ryan proposes new target for biofuels in Ireland

9th Nov 2009 Minister Ryans announcement re Biofuels Obligation

Regulatory Impact Analysis (RIA)

Download the RIA paper through the following link BiofuelsObligationRIAJuly09.pdf

Legislation

Energy (Biofuel Obligation and Miscellaneous Provisions) Act 2010

National Oil Reserves Agency Act 2007

S.I. No. 322/2010 — Energy (Biofuel Obligation and Miscellaneous Provisions) Act 2010 (Commencement of Certain Provisions) Order 2010.