German auto industry pushes for implementation of RED III for climate protection

The Association of the Automotive Industry (VDA), Germany’s auto industry, is urging an approach to implementing the Renewable Energy Directive (RED III), which would introduce renewable fuels into national law and contribute to climate protection.  

It includes a long-term target path and a Green House Gas (GHG) quota that, if exceeded, will automatically increase through a mechanism to maintain investment incentives in renewable energy sources. 

VDA President Hildegard Muller said, "Europe can only achieve its CO2 reduction targets with a course that is open to all possible solutions and technology. Politicians are called upon to establish incentives for the ramp-up of renewable energy sources and thus to guarantee and promote investment."

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RED III was revised in 2023. Its objective is for EU member states to transition the transport sector away from fossil fuels in the long term, as part of its climate target. 

It discusses the expansion of renewable energy sources in the transport sector, with a focus on charging infrastructure and sustainable fuels. 

Renewable fuels offer the potential to enable the long-term operation of the existing stock of vehicles with combustion engines in a largely climate-neutral manner. 

However, the increased adoption of zero-emission vehicles, such as fuel cell trucks, can also be encouraged. 

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Muller explained, "The fact is: the ramp-up of electromobility, including hydrogen vehicles in the commercial vehicle sector, will enable significant CO2 savings in the coming years. At the same time, this is not enough, as there will still be vehicles with combustion engines in Germany for a long time to come.”

He added "Even if the federal government's goal of 15 million electric cars by 2030 is met, at least 40 million cars and trucks with combustion engines will still be on German roads."

Thus, the VDA is also calling for a 5% sub-quota for Renewable Fuels of Non-Biological Origin (RFNBOs) by 2030.  

The federal government, as shown in the national energy and climate plan, expects a greater need for RFNBO than in RED III. 

The VDA also suggests revising the multiple counting by 2030, which means that the energy placed on the market will be counted several times.  

The intention is to encourage investment in certain renewable technologies and market expansion.