This concerns an administrative obligation on energy suppliers to offer gas from renewable sources (greengas) in the supplies via the distribution system to the ETS2 customer group.

Act amending the Environmental Management Act and the Economic Offences Act in relation to increasingthe share of gas from renewable sources in total gas supplies to customers (Green Gas Blending Obligation Act)

The proposal for a Green Gas Blending Obligation introduces an administrative obligation for energysuppliers established in the Netherlands to deliver a certain proportion of their gas supplies to their customerscorresponding to the green gas ETS2 customer groups. The draft law adapts the already existingEnvironmental Management Act and adds a title (Title 9.9) in Article I (B), which includes the proposed greengas blending obligation. The emissions reports required by ETS2 shall serve as a basis for determining totalgas deliveries per calendar year, per energy supplier. On the basis of these emission reports – and supportinginformation on the total gas supplies to the ETS1 customer groups – the Dutch emission authority determinesthe market share of each energy supplier falling under the obligation in total gas supplies to the relevantcustomer groups. An absolute target is set for each calendar year – expected from 1 January 2026 and in anycase until 1 January 2030 – for the supply of green gas in subordinate regulations for all suppliers underliability combined, growing exponentially from 2026 to 2031 up to 3.8 Mt of CO2 chain emission reduction by2030. This obligation is therefore divided between the individual energy suppliers according to their marketshare in the total gas supplies concerned. The obligation takes shape by introducing a new tradable unit: thegreen gas unit. One green gas unit represents a contribution to the annual liability of one kg CO2 equivalentchain reduction. These are emissions along the entire chain, i.e. the production, transport, distribution and useof renewable energy.

The emission reduction unit added as a result of entering a quantity of blended gas from renewable sourcesrepresents a quantity of kilograms of carbon dioxide equivalent (kg CO2 eq) chain-emission savings. In aregister to be newly set up by the Dutch Emissions Authority, energy suppliers are able to enter a quantity ofgreen gas and convert this into green gas units in order to fulfil their obligation . The green gas to be enteredwill for the time being correspond to the number of guarantees of origin purchased by the energy supplier(depending on the practical impact of the Union Database).
The proposed Article 9.9.4.1 ‘Entering gas from renewable sources’ sets out the requirements for gas fromrenewable sources that is eligible for entry and can count towards the national green gas blending obligation.This concerns gas from renewable sources produced from a production installation located in the Netherlands,fed into the Dutch distribution network or transmission network, supplied to customers in the calendar yearimmediately preceding that date and complies with the requirements laid down in Article 9.9.4.2. Theserequirements concern the sustainability and greenhouse-gas emissions saving criteria laid down by orpursuant to general administrative order and other requirements imposed by or pursuant to generaladministrative regulation. The condition that green gas must have been produced in the Netherlands in orderto be eligible for entry is a temporary measure. This is supported by the accompanying explanatorymemorandum under section 3.1 and explained under point 9 of this form.
The requirements that are to be laid down in underlying legislation under the proposed Article 9.9.4.2 are inline with the requirements of the Renewable Energy Directive. This is further explained in the explanatorymemorandum in section 2.4. This concerns a producer of green gas having to satisfy two conditions. It must beable to demonstrate that a certification scheme approved by the European Commission (EC) has been addedfor the biofeedstock used, called the Proof of Sustainability (PoS), and that the producer is certified inaccordance with the RED criteria. For this reason, a mutual recognition provision does not apply.
The Dutch Emissions Authority has several tools to ensure compliance with the obligation is maintained. Thisconcerns imposing an order subject to periodic penalty payments, imposing an administrative fine, ortransferral to the criminal justice chain.
Only green gas that meets the sustainability requirements referred to in Directive (EU) 2018/2001 and anysustainability requirements that may be defined in greater detail are permitted in the proposed Green GasBlending Obligation Act. In doing so, the Dutch Emissions Authority monitors the certification of sustainabilityor greenhouse-gas emissions saving criteria. In the draft law, green gas is also only produced from aproduction installation located in the Netherlands and this is fed into the Dutch distribution or transmissionnetwork. The exclusion of green gas produced in other countries is of a temporary nature. A basis has been included in the draft law to prepare this in underlying legislation.
A possibility for a total or partial exemption from the annual obligation has been included in the form of a buy-out, in the event the production of green gas is lagging behind, and this is to lead to unwanted scarcity andprice developments.