Biodiesel blending requirement

In February 2009, Decree Law 49/2009 instituted mandatory quotas for use of biofuel in diesel blends, requiring that these contain at least 6% biodiesel (B-6). The quota is to rise to 10% in 2010. The law establishes the use of Biofuel Certificates (CdB) for compliance purposes. The General Directorate of Energy and Geology (DGEG) will issue one CdB to producers for every 1000 litres of biofuel destined to substitute for fossil fuels in the transportation sector. Diesel distributors must register with the DGEG and demonstrate ownership of sufficient certificates to comply with the minimum biofuel quota. The DGEG is to establish electronic accounts for each affected entity. Non-compliance with the quota requirement can entail fines up to EUR 44 891, of which 30% go to the DGEG and 70% to the Portuguese Carbon Fund, a financial instrument for acquiring emissions credits.

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