Minister O’Brien announces 2026 renewable fuel rates

Minister for Transport Darragh O’Brien has signed regulations giving effect to transport elements of the EU Renewable Energy Directive, including the Renewable Transport Fuel Obligation (RTFO) rates for 2026.
Regulations come into effect on 1 January 2026 and set rates as:

• Renewable Transport Fuel Obligation (RTFO) rate: 32%
• Advanced biofuel and Renewable Fuel of Non-Biological Origin (RFNBO) obligation rate: 5%
• Crop cap: 3%
• High indirect land use change (ILUC) risk cap: 60% of the total amount supplied in 2019.

The Renewable Transport Fuel Policy 2025–2027, published in June 2025, sets out a pathway for increasing renewable transport fuel use. This is to support achievement of Ireland’s Climate Action Plan and EU Renewable Energy Directive 2030 targets, for an increased share of renewable energy in transport and transport decarbonisation. This includes annual increases in the RTFO rate to 2030. The indicative trajectory of RTFO rates set out in the Policy is reviewed annually, with analysis from the National Oil Reserves Agency (NORA) to reflect market developments.
“Government remains committed to achieving national and EU renewable energy targets for transport. The 2026 increase to the RTFO rate incentivises increased supply of sustainable renewable transport fuel, providing immediate climate change mitigation.
“The revision of the combined advanced biofuel and RFNBO obligation rate for 2026 reflects global supply challenges and sustainability concerns around certain imported biofuels, as well as the strong response of industry to regulations introduced in June to address concerns in relation to POME-derived biofuel. The revised rate represents an increase on the 2025 rate, ensuring continued progress toward 2030 targets while protecting consumers and public transport services from undue cost impacts.”

Minister for Transport Darragh O’BrienRecent analysis shows that while supply of advanced biofuel has performed strongly against the 1.5% 2025 obligation, there has been a decrease in advanced biofuel supply since 2024. Fuel suppliers have responded to concerns raised in relation to the sustainability of imported palm oil mill effluent (POME) derived-biofuel to the EU, and to measures introduced in Ireland in June 2025 reducing additional certificates incentives for POME-derived biofuel. For this reason, the NORA revised its modelling for the combined advanced biofuel and RFNBO obligation rate for 2026 to 6.5%, reflecting rapid and significantly changing market dynamics. Further recent analysis of the market indicated the need for a further reduction of the ABO to 5%, to avoid adverse impacts on consumer pump prices and public transport services.
While lower than originally anticipated, the revised rate is an increase on the 2025 level, maintaining progress toward 2030 targets and supporting investment and growth in domestic renewable fuel production.
The regulations also give effect to transport elements of the Renewable Energy Directive (RED III), including:

• Amendment of the definition and provisions for the advanced biofuel obligation to include renewable fuels of non-biological origin (RFNBO),
• New provision for the award of certificates for supply of renewable electricity at public charging points,
• The Annex IX list of feedstocks eligible for double counting under the RED, aligned to amendments made under Directive 2024/1405.