Department of Mineral Resources and Energy
The Biofuels Regulatory Framework has been released.
The mineral resources and energy department published the Regulatory Framework in Government Gazette 43003.
Cabinet approved the Regulatory Framework in December 2019.
According to cabinet, the Framework will facilitate the implementation of the Biofuel Industrial Strategy.
Cabinet added that “biofuels are internationally recognised as immediate less carbon-intensive substitute. They blend fuel for conventional mineral fuels so as to reduce air pollutant from the use of transport fuel”.
Five areas are to be regulated including the Feedstock Protocol, the Mandatory Blending Regulations, the cost recovery mechanism for blending of biofuels, the biofuels subsidy mechanism for biofuels farmer support and biofuel manufacturer’s support and the selection criteria for biofuel projects requiring a subsidy.
The Biofuels Regulatory Framework is designed to provide a policy and regulatory framework for the implementation of the Biofuels Industrial Strategy of 2007 that called for a 2% penetration level of biofuels into the national liquid fuels pool by 2013.
However, as no major biofuels manufacturers had emerged by the start of 2014, government decided to develop a Regulatory Framework conducive to the development of biofuels.
A draft position paper on the Regulatory Framework was published for comment in 2014.
According to the Regulatory Framework, the “first phase of the biofuels programme will be continually monitored and its impact (socio-economic benefits, cost to the economy, issues arising from the industry) reported to Cabinet which will make the decision on the implementation of the next phase once the 4.5% penetration levels of biofuels in the national transport fuel pool has been achieved”.