Germany ups carbon emission targets for transport, bans palm oil fuels from 2023

London, (Quantum Commodity Intelligence) – Germany has increased targets for emissions cuts in its transport sector and banned the use of palm oil-based fuels from 2023.

The Bundestag passed a law Thursday transposing into national law the European Union's recast of the Renewable Energy Directive II.

The German transport sector now has to reduce emissions 7% by 2022, 12% by 2026 and 25% by 2030, up from a 6% target in 2021.

As well as banning the use of palm oil products to meet the target after 2023, the law also placed effective caps at 4.4% on the amount of crop-based fuels that will count towards the target, while also making contributions from green hydrogen and renewable electricity count double and triple, respectively.

"Only those technologies that are efficient and make traffic really sustainable will be promoted: electromobility in road traffic, advanced biofuels made from waste and residues and green hydrogen in refineries. We promote synthetic fuels in a targeted manner where there are no non-fossil alternatives: in air traffic," said Federal Environment Minister Svenja Schulze.

A minimum target of 0.5% liquid fuels from renewable electricity in aviation will also be introduced starting in 2026, increasing incrementally to 2% in 2030.

The greater use of renewable electricity within carbon-cutting targets has been pushed by the Green Party, which is part of the ruling coalition.

However, environmental groups were critical despite the higher emissions cut targets and promotion of renewable electricity.

"The earlier phase-out of palm oil is a great success ... the positive effect is, however, undermined... palm oil diesel now, contrary to the original draft, can be replaced by environmentally harmful cultivated fuels such as soy and rapeseed - replacing one evil with another," said Sascha Müller-Kraenner, Federal Managing Director of DUH.