Stricter sustainability criteria and new calculation methods force sector to review
The European Union has taken an important step towards a more sustainable energy system with the introduction of RED III in 2023. The revised directive sets stricter requirements and introduces new methods for calculating renewable energy, according to a recent publication by Statistics Netherlands (CBS).
One of the most important changes is the lowering of the threshold for sustainability criteria: biomass installations from 7,5 MW thermal capacity (and biogas installations from 2 MW) must meet strict sustainability requirements. For district heating, there are partly more flexible rules. As a result, more installations are subject to supervision, and the importance of certified sustainable biomass is increasing.
Higher goals and adjusted calculations
RED III increases the joint EU target for 2030 to 42,5 percent renewable energy, with the ambition to achieve 45 percent. The Netherlands contributes to this with a national target of 39 percent. The directive not only revises the targets, but also the way in which the share of renewable energy is calculated. New definitions of the numerator (renewable energy) and denominator (final consumption) lead to a higher score than under the old method.
Renewable heat, cold and transport
In addition to electricity and biomass, renewable heat and cold are also receiving more attention. The Netherlands must increase the share of renewable heat and cold by an average of 1,9 percentage points per year. In the transport sector, biofuels from certain residual flows, as stated in Annex IX-A of the directive, are counted twice. Countries can opt for a share of 29 percent renewable energy in transport, or for a greenhouse gas reduction of at least 14,5 percent compared to fossil fuels.
Consequences for companies and governments
The new rules call for better monitoring, certification and reporting. Producers of biomass and users of bioenergy must take into account stricter requirements for the origin, efficiency and sustainability of their raw materials and processes.
Source: The influence of RED III on renewable energy calculations – CBS, 2025
