Dutch green gas blending obligation passes lower house of parliament

The lower house of the Dutch parliament passed the national green gas blending obligation on Oct. 6, with the rules expected to take effect in 2027.

Lawmakers voted on the main legislative package, including 12 proposed amendments, four of which were passed, covering rules on the suspension of the rules determining the blending obligation and buy-out price, on the use of buy-out fees, on evaluation proceedings, and on annual monitoring.

A September proposal to cap the maximum total reduction that can be mandated at 1.425 million metric tons of CO2 equivalent starting in 2031 was rejected, along with proposals to exclude manure feedstocks and to delay the entry into force of the obligation until 2028.

One approved amendment gives the parliament four weeks to review key implementing rules before the government formally adopts them.

Another amendment to direct price support will require buyout fees to be returned to energy customers through methods such as direct payments, rebates, or a funded support program that reduces energy bills.

The evaluation deadline will be brought forward from five years to three years, and the final text will also include annual monitoring reports to be submitted to both chambers of the Dutch parliament.

The bill was initially submitted to parliament in May and outlines the renewable gas blending obligations Dutch suppliers must meet. The legislative text will now move to the upper house, the Senate, for review.

The rules require annual reductions in emissions by supplying biomethane into the national gas grid, starting with a 0.63 million metric tons of CO2 chain-emission reduction in 2027 and rising to 2.85 MMtCO2 by 2031.

The bill introduces a separate tradable unit -- the Green Gas Unit, or GGE -- to comply with the blending obligation. Suppliers may buy out all or part of their annual obligation, acting as a price ceiling if GGEs become scarce. The buyout price has been set at €450/mtCO2e.