Germany sets mandates for the use of green hydrogen in transport starting from next year — with penalties for non-compliance

Germany has approved an amendment to its transport greenhouse gas reduction quota (THQ) as part of implementing the EU’s updated Renewable Energy Directive (RED III). The goal is to accelerate the use of green hydrogen and its derivatives — known as renewable fuels of non-biological origin (RFNBOs), including green ammonia, methanol, and e-fuels — in the transport sector. The amendment sets binding minimum RFNBO shares in all transport fuels starting in 2026 and introduces penalties for non-compliance. The quotas begin at 0.1% in 2026, rise to 0.5% in 2028, and reach 1.2% in 2030, slightly above the EU-wide 1% requirement but lower than Germany’s earlier draft target of 1.5%. After 2030, the mandated share continues to increase: 1.5% in 2032, 2.5% in 2034, 4% in 2036, 5% in 2037, 6% in 2038, 7% in 2039, and 8% in 2040. The amendment also allows the “refinery route,” enabling oil companies to count the substitution of grey hydrogen with green hydrogen in their refining processes toward meeting their quotas.