Ladies and gentlemen, dear readers,
On February 25, the German Bundestag held the first reading of the draft of a Second Act on the Further Development of the Greenhouse Gas Reduction Quota (GHG Quota). In a joint position paper, associations from the fuel industry, among others, are calling on the Bundestag to improve the draft law. They argue that higher minimum quantity quotas, more flexible market conditions, and fewer regulatory loopholes should provide companies with greater planning certainty and thus support the market expansion of renewable fuels. The associations’ joint position paper is attached.
The greenhouse gas (GHG) quota is to increase to 59% by 2040. In the Environment Committee, the biofuel industry, the petroleum industry, and environmental associations debated costs, climate impact, and “agrofuels.”
The planned increase in the greenhouse gas reduction quota (GHG quota) in Germany, which serves as a key instrument for CO₂ reduction in the transport sector, is receiving a mixed response.
While the draft legislation from the Federal Government, which envisages increasing the quota to 59 percent by 2040, is generally welcomed as a step towards climate protection, there are significant differences in the assessment by associations and companies.
Here are the main aspects of the differing assessments:
Positive voices & support:
- Quota path: The continuation of the quota path to 2040 is viewed positively.
- Sustainability & fraud prevention: The ban on palm oil and soy, as well as stricter measures against fraud (especially regarding imported biofuels), are welcomed.
- Further development: The extension of the quota to maritime and air transport is welcomed.
- Sub-quota: The increase of the sub-quota for advanced biofuels is supported.
Criticism & calls for improvements:
- Investment security: Representatives of the biofuel industry are calling for improvements in the parliamentary process to guarantee investment security.
- Criticism of double counting: The planned double counting of certain biofuels is being discussed controversially.
- Market uncertainty: The market for greenhouse gas quotas is proving turbulent.
- Focus on e-fuels: There is criticism that the focus may be too heavily on e-fuels, while sustainable biofuels (e.g., from waste materials) should still play a major role.
- Environmental aspects: Environmentalists generally criticize biofuels from arable crops (1st generation) as environmentally nonsensical.
“The hearing in the Bundestag’s Environment Committee in March 2026 made it clear that while there is agreement on the need for climate protection in transport, the path and the weighting of the different fuel types are still controversial”. Bundestag https://www.bundestag.de/dokumente/textarchiv/2026/kw10-pa-umwelt-1145888#:~:text=*%20Lesung.%20*%20Anh%C3%B6rung.
The German Maize Committee (DMK) welcomes the legislature’s intention to relax the rigid limits on maize use. However, experts believe these limits do not go far enough to resolve conflicting objectives. The current draft proposes raising the maize cap from the current 25% to 30%. The DMK sees this as a step in the right direction, but farms still lack the means to efficiently produce biogas. With the new Renewable Energy Sources Act (EEG), the legislature aims to promote the expansion of solar power installations on agricultural land. At the same time, ensuring food independence is a political priority.
In addition, the Building Energy Act (GEG) stipulates a gradual increase in the proportion of biomethane. To resolve this conflict of objectives, farms must be given the opportunity to harvest the maximum possible potential biogas yield from their land. Currently, this is only possible with the use of maize in biogas plants. “Compared to other crops, maize still delivers the highest methane yield per hectare. Capping the use of maize in biogas plants was never technically or economically sound,” says Dr. Burkard Kautz, Managing Director of the Maize Committee.
The concern of environmental organizations that raising the maize cap will increase the succession of maize crops is technically unfounded. For example, the GAEC 7 regulation, within the framework of the conditionality of the EU’s Common Agricultural Policy (CAP), stipulates that the main crop must be changed on the same land no later than the third year.
According to ePure, the European Commission’s decision to circumvent the democratic process by provisionally applying the EU-Mercosur trade agreement is yet another sign that the agreement is bad for Europe – especially for the strategically important EU renewable ethanol industry and the European agricultural sector. The Commission is not only ignoring the European Parliament’s vote to refer the agreement to the Court of Justice of the European Union to review its legality, but also repeated warnings from sensitive agricultural sectors such as European bioethanol producers. It has offered the Mercosur countries, effectively Brazil, a large share of the EU ethanol market. In doing so, the EU is jeopardizing European biorefineries that produce food, animal feed, fuels, fertilizers, and much more. The last-minute “safeguards” in the EU-Mercosur agreement, intended to appease farmers, are cosmetic at best and will be ineffective for ethanol imports. The procedures are complex, the hurdles are high, and the response times are slow. The mere possibility that Mercosur could double its annual ethanol exports highlights a serious flaw in the agreement. Ethanol should have been classified as a sensitive commodity from the outset. The duty-free ethanol allowances granted to Mercosur countries are based on outdated models that do not reflect current market conditions and price realities. The European Commission has not conducted an impact assessment for renewable ethanol. https://www.epure.org/press-release/european-renewable-ethanol-producers-oppose-provisional-application-of-the-eu-mercosur-agreement/
The Spanish Murueta shipyard has launched the “Bahía Beatriz,” a diesel-electric hybrid chemical tanker designed for the transport and delivery of new fuels such as methanol, ethanol, and other biofuels. Chartered by Repsol, the vessel is the third of its kind in the Mureloil fleet and the shipping company’s seventh supply vessel. It is also the first ship of its type in Spain to be certified as a “bunker methanol” vessel. The ship’s concept and design were developed by Mureloil SA, which contributed its extensive experience in bunkering, in collaboration with the Murueta shipyard’s engineering department. This is the 336th vessel built at the shipyard. https://shipandbunker.com/news/emea/996639-mureloil-launces-hybrid-bunker-tanker-for-repsol-charter
The United Nations Convention to Combat Climate Change (UNCCCC) has approved the first certificates for the UN Climate Market established under the Paris Agreement. The approved project is a clean cooking initiative in Myanmar that distributes efficient cookstoves to reduce harmful household air pollution and lessen pressure on local forests. The project is coordinated with authorized participants from the Republic of Korea. The certificates approved for Korea can be transferred to Korean entities for use in the Korean emissions trading system, thus contributing to the Republic of Korea’s Nationally Determined Contribution (NDC). The remaining amount will be used by Myanmar for its own NDC. These adjustments result in credited reductions that are approximately 40 percent lower than those under the Climate Change Determination Model (CDM). This ensures that the issued certificates better reflect the actual impacts in the current context. This lays the foundation for the mechanism’s broader role in supporting mitigation measures that deliver tangible community benefits. https://unfccc.int/news/un-carbon-market-approves-first-ever-issuance-of-credits-under-the-paris-agreement
Germany has successfully completed a hot-run test campaign for the new European rocket engine, Greta. It demonstrated stable operation, controlled shutdowns, and multiple restarts on a mobile test stand developed by ArianeGroup for the European Space Agency (ESA) at the ArianeGroup site in Trauen, Germany. Greta uses hydrogen peroxide and ethanol as propellants – a more sustainable alternative with a lower CO₂ footprint compared to monomethylhydrazine, which is used in most conventional rocket engines of this thrust class. Greta was ignited multiple times between July and November 2025, demonstrating stable operation, including controlled shutdowns. During the test campaign, the engine ran continuously for over 40 seconds each time. Sustainable propulsion: Greta is considered a “green” engine. Compared to conventional engines, which often use toxic monomethylhydrazine, hydrogen peroxide and ethanol are significantly more environmentally friendly and easier to handle. The project underlines the trend towards more environmentally friendly, so-called “green” fuels in European space travel. https://www.dlr.de/de/ar/themen-missionen/raumfahrttechnologien/traegersysteme/greta
Samsung C&T Engineering & Construction Group and Axens have signed a Memorandum of Understanding to collaborate on the deployment of Carbon Capture, Utilization, and Storage (CCUS) projects. This partnership marks a significant step forward in their shared commitment to support industry decarbonization efforts. By combining Samsung C&T’s global project execution expertise with Axens’ cutting-edge CCUS technologies, the parties aim to accelerate the deployment of impactful and cost-effective solutions that reduce carbon emissions. Axens’ CCUS portfolio covers the entire value chain—from CO2 capture, to CO2 conditioning and utilization. Axens’ solutions are designed to address the needs of hard-to-abate industries such as power generation, LNG, cement, steel, and refining, including: The DMXTM technology which reduces energy consumption by up to 30% compared to conventional amine systems, enabling cost-effective CO2 capture from industrial flue gases. CO2 conditioning and utilization: ensuring CO2 purity for transport, storage, or conversion into e-fuels and chemicals, supporting a circular carbon economy. https://www.axens.net/resources-events/news/samsung-ct-and-axens-join-forces-accelerate-global-deployment-ccus-projects
In India, sugarcane is cultivated on 5.4 million hectares, with Uttar Pradesh, Maharashtra, Karnataka, and Tamil Nadu being the largest producers. Traditionally grown as a monoculture, sugarcane provides farmers with an income only once a year, after a long growing season of 10–15 months. During this time, farmers often rely on middlemen or moneylenders to make ends meet. At the same time, sugar mills operate for only 3–5 months a year, limiting ethanol production to a restricted period, even though sugarcane currently supplies 30–35% of India’s ethanol needs. To address this gap, the ICAR – Indian Institute of Maize Research in Ludhiana, as part of the flagship project “Increasing Maize Production in the Ethanol Industry Catchment Area,” funded by the Indian Ministry of Agriculture and Farmers’ Welfare, developed an innovative intercropping system of sugarcane and maize. The approach was developed to increase soil productivity, ensure a year-round supply of raw materials for dual-feed ethanol distilleries, and improve farmers’ incomes. https://agrospectrumindia.com/2026/02/02/how-integrated-sugarcane-based-industries-are-driving-sustainable-growth-ethanol-output-rural-transformation.html
Circulose recently announced the recommissioning of its industrial-scale production facility in Ortviken (Sundsvall, Sweden). This marks a significant step toward scaling up production of next-generation materials for the global fashion industry. The company plans to resume production of CIRCULOSE®, a recycled pulp made entirely from discarded cotton textiles, in the fourth quarter of 2026. In 2024, under the new ownership of private equity firm Altor, Circulose realigned its strategy, focusing on securing offtake commitments from partner brands to bring CIRCULOSE® back to market at scale. https://www.circulose.com/en/circulose-restarts-commercial-scale-production-at-ortviken-plant-in-sundsvall-sweden/
GreenValue has successfully supported Balance Renewable Energies in the further expansion of its biogas plant portfolio. The biogas plants in Saxony, Saxony-Anhalt, and Mecklenburg-Western Pomerania have a combined thermal input capacity of 46 MW. Following the acquisition, the plants will undergo technical modernization under the management of the new owner. “The findings obtained during the due diligence process open up the possibility for continued successful operation in the coming years,” said Kellermann. The biogas plants currently process renewable raw materials. At four locations, the electricity generated is fed into the grid of the respective local grid operator, while the heat is supplied to various consumers via district heating networks. The biogas plant in Mecklenburg-Western Pomerania is equipped with a biogas upgrading plant with a capacity of 1,366 Nm³ of biomethane per hour. https://www.greenvalue.de/en/news/