EU gives green light for biogas on access to sustainable finance

The decision to label the production of biogas from anaerobic digestion as a low-carbon activity recognizes its valuable contribution to climate-neutrality, even though the chosen criteria are not fully aligned with the Renewable Energy Directive.

The regulation also supports the role of biogas and biomethane in providing renewable heat and power and recognizes the need to integrate “low-carbon gases,” including biomethane, in existing natural gas grids.

The manufacture and operation of some vehicles using biomethane is included in the regulation, for instance bi-mode trains and coastal vessels or, in very specific cases, freight road vehicles .

Earmarking green investments only for zero emission vehicles, according to a tailpipe approach, will strongly penalize the scale-up of sustainable solutions, such as biomethane, in road and maritime transport, as well as in non-electrified segments of the rail network.

The EU Taxonomy puts too strict restrictions on the use of renewable gas in building heating systems and fails to identify highly efficient gas appliances and hybrid heat pumps as sustainable assets.

The EBA calls for higher transparency in the elaboration of the next batch of the EU Taxonomy by the European Commission and the Platform of Sustainable Finance, expected to be adopted by the end of the year.

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