The German government agreed on Wednesday to raise the share of renewable energies in the transport sector to 28 percent by 2030, which was twice as high as the European Union's (EU) requirement.
"We need more modern, clean technologies in Germany if we are to achieve our climate targets in the transport sector," said Minister for the Environment, Svenja Schulze, in a statement.
Germany met the EU requirement with a greenhouse gas reduction quota, which currently obligated oil companies to reduce greenhouse gas emissions of their fuels by six percent, according to the German Ministry for the Environment (BMU).
To achieve this, companies could use climate-friendly energy products such as green hydrogen, electricity or progressive biofuels. According to the amended law, the quota would gradually rise to 22 percent by 2030.
The share of progressive biofuels produced from residual products such as straw and liquid manure would increase from zero to at least 1.75 percent by 2030, according to the BMU. The share of biofuels from food and animal feed would be frozen at the status quo and the cap of 4.4 percent would no longer be exceeded.
"Increasing biofuels made from crops for food and animal feed is not an option for us," said Schulze. "Clearing forests and destroying nature for biofuel is unacceptable." The amendment also included the gradual phase-out of biofuels made from palm oil.
Electricity-based fuels based on green hydrogen were expected to make an "important contribution" to climate targets in the transport sector, the BMU noted.
Furthermore, the necessary production capacities for electricity-based fuels would still need to be established, according to the ministry. For this reason, the government would use green hydrogen first where there are no more efficient climate-friendly alternatives than direct electricity use, which would apply to industry and aviation.
Following the decision by the government, the draft law still has to be approved by the Bundestag and Bundesrat, the lower and upper house of the German parliament.
Editor: Galia
