Norway allows companies using biofuels to claim zero-rate emissions in EU Emissions Trading System

In Norway, operators of installations, aircraft operators, shipping companies and regulated entities in the EU Emissions Trading System (EU ETS) and ETS2 can zero-rate emissions from the combustion of biofuels if the sustainability and greenhouse gas emissions saving criteria in the revised Renewable Energy Directive (EU) 2018/2001) are met. Zero-rating emissions means that the operators do not need to surrender allowances for the emissions. 

It follows from the EU ETS legislative framework that zero-rating of the same volume of biofuels cannot be double counted by operators in the EU ETS and ETS2. Nevertheless, the Norwegian Environment Agency’s assessment is that there is no legal barrier to a batch of biofuel that meets the sustainability criteria in the revised Renewable Energy Directive ((EU) 2018/2001), being used to both fulfill a biofuel mandate and to be zero-rated in the EU ETS and ETS2.