Greenhouse Gas Reduction Quota (THG-Quote)

The Second Act to Further Develop the Greenhouse Gas Reduction Quota (THG-Quote), adopted in 2026, strengthens Germany's principal market-based instrument for reducing greenhouse gas emissions from transport fuels by amending the Federal Immission Control Act (BImSchG). The legislation implements the revised EU Renewable Energy Directive (RED III) transport decarbonization requirements by requiring fuel suppliers to achieve progressively larger reductions in the lifecycle greenhouse gas emissions of the fuels they place on the market, reaching 65% by 2040. Its objective is therefore to reduce emissions from the transport sector by changing the fuel mix.