Renewable Energy Directive III (RED III) Targets for Renewable Fuels in Transport

In 2023, the European Union (EU) adopted an amendment of the Renewable Energy Directive, which is referred to as “RED III”. It thereby raised the collective target for renewable energy consumption across all sectors in Europe significantly to at least 42.5 % in 2030. The RED III target for transport was ambitiously increased and additional energy sub-targets were set for individual fuel fulfilment options (see table below). As in RED II, RED III allows multipliers for certain fuels and use cases, when they comply with the energy targets. This incentivizes these options and puts them on a level playing field with others. The directive must be transposed into Member State’s national law within 18 months after its publication in the Official Journal of the EU. Member States need to oblige fuel suppliers to meet the set goals for the transport sector. However, they have some flexibility in national implementation and can, for example, set higher targets for fuel suppliers.