A Landmark Draft for Clean Mobility
In a decisive move towards cleaner transport, Germany has published a draft law that signals a fundamental shift in its energy strategy. This proposal, issued by the Federal Ministry for the Environment, aims to cut greenhouse gas emissions across the entire transport sector while aligning with the European Union’s Renewable Energy Directive (RED III) and ReFuelEU Aviation rules.
Beyond Compliance: Setting the Pace for Europe
Rather than simply meeting the EU’s baseline expectations, the legislation raises Germany’s ambitions significantly. It sets a binding target for greenhouse gas reductions from transport fuels at 53 percent by 2040. This target is built on the foundation of over 77 percent renewable energy use in the transport sector, making Germany a clear frontrunner in sustainable mobility.
The Role of Green Hydrogen and RFNBOs
At the heart of this strategy lies a commitment to Renewable Fuels of Non-Biological Origin (RFNBOs), including green hydrogen and synthetic e-fuels. The legislation introduces a progressive mandate starting at 0.1 percent in 2026 and scaling up to 12 percent by 2040. This is a bold leap beyond the EU’s minimum requirement of 1 percent by 2030.
Such fuels are set to play a pivotal role in decarbonizing not only road transport, but also the more energy-intensive maritime and aviation sectors.
Traceability and Sustainability: Closing Loopholes
To ensure environmental integrity, the draft law enforces rigorous traceability standards. Only fuels verified through on-site government inspections will qualify under the quotas. In parallel, soy- and palm-based biofuels—criticized for their environmental and social impacts—will be completely phased out.
This creates a new benchmark for fuel sustainability, addressing long-standing concerns around greenwashing and supply chain transparency.
Legal Timelines and Political Will
Germany is legally required to implement RED III by May 2025. While other EU member states face delays and potential legal action from the European Commission, Germany’s early and ambitious draft is a strategic move that signals readiness and foresight. Final legislative approval is expected in 2025, with rollout beginning in 2026.
Industry Reaction: A Model to Follow?
Jorgo Chatzimarkakis, CEO of Hydrogen Europe, called the draft “a forward-looking approach that deserves recognition and emulation across Europe.” His comments reflect a growing industry consensus that Germany’s alignment with RED III and ReFuelEU is not only regulatory but also strategic—designed to spur market development and infrastructure readiness for hydrogen-based fuels.
Implications for the Broader Energy Transition
This draft law has far-reaching implications. It positions green hydrogen not as a marginal technology, but as a mainstream solution integral to national decarbonization. It also reduces the regulatory uncertainty that has hampered investment in new fuel technologies, offering clarity and direction for market actors.
For sectors like aviation and maritime—where emissions are hard to abate—the plan signals a realistic pathway toward the EU’s climate targets.
Conclusion: Redefining Ambition in Transport
Germany’s draft legislation is not just a policy document; it is a quiet yet powerful redefinition of ambition in transport fuel reform. By prioritizing RFNBOs, enforcing sustainability standards, and extending mandates across all modes of transport, Germany is not only fulfilling its legal obligations—it is laying the groundwork for a future transport system driven by clean energy.
As other countries grapple with the complexities of RED III compliance, Germany’s draft may serve as both a blueprint and a challenge: to move faster, aim higher, and integrate renewable hydrogen not as an alternative, but as a necessity.