Exploring systems of renewable fuels certificate and their trading mechanisms

For: European energy company

[September 2022 – December 2022]

A large European energy company, active in the sustainable mobility and energy transition field, sought insights into the Dutch Renewable Energy in Transport system (HBE system). They recognised it could be potentially interesting to have a similar system in their home market, and therefore wanted to better understand how this market mechanism helps to deliver the targets of the Renewable Energy Directive in the Netherlands. They aimed to understand what would be their role if they would be an obligated party, as well as to draw lessons for the potential development of similar market mechanisms for the implementation of the Renewable Energy Directive in other EU Member States.  

Through a structured information package, studio Gear Up supported this client with insights into the intricacies of the Dutch HBE system. We delivered a comprehensive report detailing the system’s framework, explaining the categories of Dutch renewable fuel units, rules and conditions for obligated parties, and the practicalities of registering renewable fuels under this system. We facilitated an on-site workshop at the client’s headquarters, and guided the discussion between the members of various company divisions that are all engaged in the regulatory landscape of renewable energy in transport, had a different interest with regard to some issues. Through this project, our client gained a nuanced understanding of the HBE system. This empowers them to advocate for potential adoption of a similar system in their home markets, and to explore their strategic positioning in the potential trading of renewable energy and renewable fuel units in multiple EU Member States. 

Related

Analysis of SAF allowances (FEETS) – 2024-price update

February 2025, the European Commission adopted a new support mechanism on ‘SAF allowances’: used to bridge the price gap for the use of alternative fuels to accelerate the roll out of SAF.
We reviewed this mechanism in order to assess its expected impact on supporting the development of SAF market. We conclude that the policy design would require additional policy instruments to support the broader development of the SAF market.

Read More

Current POME-based biofuels in EU fall within current production potential 

According to studio Gear Up’s numerical analysis, the current volume of POME-biofuels deployed in the EU are in the range of current production volumes of POME residues. We advise to keep a close look on the future volumes of POME-based biofuels, given the upper limits of production. Strengthening the information position of renewable fuels supply chains with more frequent auditing and historical data of POME-oil production are needed.

Read More

SAF allowances may not be the best instrument to ramp up SAF production

Sustainable Aviation Fuels (SAF) are renewable fuels that replace fossil based kerosine in aircrafts and are seen as an important option to mitigate climate emissions in the aviation sector. Generally, these alternative fuels are more expensive than their fossil counterpart, kerosene. In order to support the uptake of SAF, the European Commission has introduced several policy instruments.

Read More
Scroll to Top