Renewable Energy Directive

Renewable Energy Directive

The Renewable Energy Directive plays a vital role in Europe’s climate ambition. It is one of the main legislative framework that promotes renewable energy across the EU, mandating that by 2030 at least 42.5% of total energy consumption comes from renewable sources (aiming for 45%). Entering into force on November 20, 2023, the revised directive, RED III, raises targets and accelerates permitting to meet the EU’s 55% greenhouse gas reduction goal. 

The Directive defines what counts as renewable energy, how progress is calculated and which technologies or feedstocks qualify for support. However, one of its unintended consequences is increasing the pressure in the oleochemical industry. As renewable targets increase, so does the demand for bio-based energy sources, including fats and oils that the oleochemical industry relies on.

The oleochemical sector depends on plant oils and rendered animal fats (Category 3) as core inputs for producing bio‑based chemicals used in detergents, lubricants, cosmetics, pharmaceuticals, plastics and more. By subsidising the use of valuable fats and oils for bioenergy, RED unintentionally distorts competition and equal playing field.

Under current RED rules, these same materials are treated as biomass eligible for energy subsidies, leading to an increasing diversion of valuable feedstock to energy production. Oleochemical producers cannot match subsidised energy prices, even though their applications deliver greater economic and environmental value.

APAG advocates therefore the introduction of the cascading use and circularity to upgrade by-products, extend material lifecycles and offer biodegradable, low-carbon alternatives. As well as ensuring greater coherence between RED, the Waste Framework Directive, the Bioeconomy Strategy, and the Circular Economy Act.