Biofuel rules cover road fuel, aviation and shipping in very different ways, and only the EU, the UK and a few of their member states tie a numbered hydrogen quota to them. This maps the rules and the hydrogen incentives country by country, with each status flagged, from summaries because no primary text was opened.
The Hydrogen Behind the Biofuel Mandate: A Country-by-Country Map of Who Is Covered, What Counts, and Which Hydrogen Gets Paid For
Biofuel policy is usually described country by country as a blend percentage, which hides two things: what each rule actually covers, and which hydrogen it pays for. Ethanol and biodiesel blends do not touch hydrogen at all. Renewable diesel, sustainable aviation fuel and e-fuels do, because the oils are hydrotreated and the synthetic fuels are built from hydrogen. This piece maps the rules country by country, then looks at where hydrogen enters them and where hydrogen has its own incentive.
How much to trust it. Every figure comes from search-result summaries of law-firm notes, trade press and agency pages. No primary text was opened, several sources conflict, and some items were proposals or committee decisions, not law. Each table has a status column for that reason. Where a number could not be confirmed it is flagged, and some countries are missing because nothing reliable turned up.
Three ways governments force biofuel into the pool
Almost every rule below is one of three designs. A volumetric mandate sets a blend share (E20, B40) and puts the duty on fuel suppliers. A greenhouse-gas credit system sets a carbon-intensity target and lets suppliers trade credits (US RINs and state standards, Canada, Brazil’s CBIOs, the German and Dutch quota systems). A tax credit, levy or subsidy pays for the fuel instead of obliging anyone (the US 45Z credit, Singapore’s SAF levy, Indonesia’s palm export levy). The design matters for hydrogen, because a credit system can reward the hydrogen content of a fuel through its carbon intensity, while a blend percentage cannot.
Road fuels: who is covered, region by region
| Country | Instrument and level | Coverage | How it works | Status |
|---|---|---|---|---|
| United States (federal) | Renewable Fuel Standard, 2026-27 final rule: 26.81 billion RINs in 2026, 27.02 in 2027; biomass-based diesel 9.07 billion RINs in 2026 (one source says 8.86) | Road petrol and diesel; jet and heating oil can generate RINs. Obligated: refiners and importers | Tradable RINs against an annual percentage standard; 70% of 2023-25 small-refinery exemption volumes reallocated | In force from 15 Jun 2026. Half-RIN for imported fuel only intended from 2028 |
| United States (tax) | 45Z Clean Fuel Production Credit: at most $0.20 a gallon, or $1.00 with wage and apprenticeship rules, scaled down by carbon intensity | Fuel made in the US from North American feedstock, sold to unrelated parties; SAF premium removed after 2025 | Per-gallon tax credit, extended to 31 Dec 2029 by the 2025 tax law | Proposed regulations of 3 Feb 2026; no final rules found |
| California, Oregon, Washington, New Mexico | Low-carbon fuel standards. California credit price about $63 to $66 a tonne in early 2026; Washington 2026 benchmark 92.00 gCO2e/MJ for petrol; Oregon aims for 20% by 2030 | Road fuels, plus aviation and marine fuel credits in some states | Tradable carbon-intensity credits | In force; New Mexico compliance proof due April 2028 |
| Canada | Clean Fuel Regulations (2022): carbon-intensity reduction on fossil petrol and diesel suppliers | Road fuels; credits also for hydrogen as a vehicle fuel and for charging | Tradable compliance credits | In force. Domestic-content or credit-multiplier amendments not yet in the Gazette; a 2027 review is due |
| Brazil | Fuel of the Future law: E30 and B15 since 1 Aug 2025; RenovaBio target of 48.09 million CBIOs for 2026; SAF greenhouse-gas cut of 1% in 2027 rising to 10% in 2037 | Petrol, diesel, domestic aviation operators | Volumetric blends, tradable CBIO credits, SAF certificates | E30 and B15 in force. B16 and E32 pending, likely 2027 or later. SAF decree of 12 Aug 2026 reported by one source |
| Argentina | Law 27.640: 12% ethanol in petrol; biodiesel 7.5% restored in January 2026 | Petrol and diesel | Volumetric blend with tax exemption | Senate passed a bill on 17 Sep 2026 raising blends to 15% and 10%; not law until the lower house acts |
The United States has the most layered system: a federal volume standard, a federal tax credit and several state markets, all paid for by different parties. Brazil’s blends are the highest in the table. Two pending changes could matter next year: Canada’s domestic-content rule and Argentina’s higher blends.
| Country | Instrument and level | Coverage | How it works | Status |
|---|---|---|---|---|
| European Union | Renewable Energy Directive III: either 29% renewables in transport by 2030 or a 14.5% greenhouse-gas cut; at least 5.5% advanced biofuels and e-fuels, with at least 1% e-fuels | Road and rail, with shipping and aviation counted; crop-based fuels capped; used cooking oil and tallow soft-capped (1.7% in one report) | National obligations on fuel suppliers; member states write the law | Transposition due May 2025; reported counts of states that have legislated e-fuel quotas range from 4 to 12 of 27 |
| Germany | Greenhouse-gas quota law: 17.5% in 2027, 26.5% in 2030, 41% in 2035, 65% in 2040 as adopted, per one law-firm summary (the cabinet draft was lower) | Road fuels; e-fuel sub-quota (0.1% in 2026, about 1.2% in 2030, 8% or 10% in 2040 depending on the source) | Tradable quota certificates; refineries to use e-fuel hydrogen in place of fossil hydrogen | Bundestag adopted 24 Apr 2026; Gazette publication not confirmed |
| United Kingdom | Renewable Transport Fuel Obligation rising to 14.6% by 2032; SAF Mandate 2% in 2025, 3.6% in 2026, 5.2% in 2027, 10% in 2030, 22% in 2040 | Road and non-road fuel; jet fuel suppliers above 15.9 TJ a year | Tradable certificates with a buy-out option; a Revenue Certainty Mechanism of guaranteed prices for SAF producers is being set up | SAF Act reported to have received Royal Assent on 5 Mar 2026; the levy design and the RTFO reform are pending |
| Netherlands | Emission-reduction units replaced renewable-energy units from 1 Jan 2026; 14.4% in 2026 and 27.1% in 2030 in the June 2025 draft | Road fuels; used cooking oil excluded in the draft | Tradable units | Figures are draft-stage; final text not checked |
| France, Sweden, Italy, Spain | France's TIRUERT tax incentive extended to end-2026 (dates conflict); Sweden's reduction obligation cut to 6% for 2024-26; Italy has transposed RED III; Spain adopted a greenhouse-gas mandate in July 2026 | Road fuels | Tax incentive (France); obligations (others) | Thinly sourced; Poland, Norway and Switzerland not found |
In Europe the obligation sits on fuel suppliers and is set in national law, so the real picture is the 27 national texts, and the reported count of states that had legislated their e-fuel quotas ranged from 4 to 12. Germany and the Netherlands run the most developed quota markets; the German figures rest on one law-firm summary of the adopted text.
| Country | Instrument and level | Coverage | How it works | Status |
|---|---|---|---|---|
| India | Ethanol 20% reached in 2025-26; compressed biogas obligation 1% of CNG and PNG in FY2025-26, 3% in FY2026-27, 4% in FY2027-28, 5% from FY2028-29 | Petrol, CNG and piped gas; biodiesel blend about 0.6% (one site) | Volumetric blends and obligations on oil and gas companies | E20 in force. E21 for 2027 and E25 for 2029 only under evaluation; standards for E22 to E30 reportedly notified May 2026 |
| Indonesia | Biodiesel B40 in force; B50 timing contradictory; ethanol E10 targeted for 2027 | Diesel and petrol; palm export levy of 12.5% (from 1 Mar 2026) funds the subsidy | Volumetric mandate paid for by an export levy | B50 launch on 1 Jul 2026 reported but not confirmed; E10 faces a supply gap |
| China | No domestic ethanol or biodiesel mandate found; 13% export rebate on used cooking oil ended 1 Dec 2024 | Trade policy rather than a blending rule | Export tax treatment | No binding SAF mandate; the 15th Five-Year Plan names SAF without a target |
| Japan | E10 planned by 2030 and E20 by 2040; SAF supply obligation of 1% in FY2030-31, 3% in FY2031-32 and 5% a year from FY2032-33 | International-flight jet fuel suppliers of at least 3,000 kilolitres a year, at seven airports | Supply obligation | Approved by a METI committee on 24 Aug 2026 (one source); legal vehicle not identified. The old target was 10% by 2030 |
| South Korea | SAF mandate for international departures: 1% from 2027, 3 to 5% by 2030 and 7 to 10% by 2035 to be confirmed | International flights | Obligation with deferred penalties | Final 2030 and 2035 levels not set |
| Singapore | SAF levy on tickets sold from 1 Apr 2026 for flights departing from 1 Oct 2026: S$1 to S$10.40 economy, four times that for premium cabins | Passengers, cargo, business aviation (not transit) | A levy that pays airlines' SAF costs, sized for a 1% target in 2026 | In force |
| Australia | No mandate. Consultation opened 18 Aug 2026 on volumetric targets for 2029 to 2035; A$1.1 billion Cleaner Fuels Program | Fuel suppliers (proposed) | Production incentive now, mandate proposed | Proposed |
| Malaysia, Thailand, Philippines, Vietnam | Malaysia B10 with B20 in some regions (B15 or B20 expansion reported); Thailand moving to E20 and B7 with a planned 1% SAF; Philippines B3 and E10; Vietnam E10 from 1 Jun 2026 | Road fuels | Volumetric blends | Several statuses unconfirmed: Thai SAF, Vietnamese rollout, Philippine B5 postponed |
| South Africa, Kenya | South Africa: biodiesel minimum 5% and bioethanol 2% to 10% (regulation of 2015); Kenya: E5 then E10 under 2025 regulations | Road fuels | Volumetric blends | South Africa enforcement not found; Kenya from one press release |
Asia-Pacific mixes high blends in palm-producing countries, aviation obligations in the rich economies, and policies that are still being drafted. China is the outlier: no domestic blending mandate turned up, and the main lever found was removing the used-cooking-oil export rebate, which pushes that feedstock toward home producers.
Aviation and shipping: the fast-growing coverage
The headline numbers are not like for like. The UK and EU figures are obligations in law. Japan’s long-stated 10% by 2030 is only a target, and the rule a METI committee approved in August 2026 would require 1% in FY2030-31, rising to 5% from FY2032-33. India’s 5% is indicative, and South Korea’s 2030 level is still to be confirmed. Brazil and Singapore are left out because their measures are a greenhouse-gas cut and a levy, not a blend share.
| Instrument | Level | Coverage | Status |
|---|---|---|---|
| FuelEU Maritime (EU) | Greenhouse-gas intensity 2% below a 91.16 gCO2e/MJ baseline in 2025-29, 6% in 2030-34; e-fuels count double until 2033 or 2034, sources differ | Ships calling at EU ports | In force; a revision was proposed in Jul 2026 |
| IMO Net-Zero Framework | Global fuel standard plus a carbon price, with 2028 targets | International shipping | Not adopted: the vote was adjourned on 17 Oct 2025 (57 to 49); the autumn 2026 outcome was not found |
| ReFuelEU Aviation (EU) | 2% SAF in 2025, 6% in 2030 (1.2% of it synthetic), 20% in 2035 (5% synthetic) | Fuel suppliers at EU airports; the minimum may be met as an average across airports | In force; a review is due in 2026 or 2027, sources differ |
| CORSIA (ICAO) | Offsetting above the baseline; eligible fuels cut the requirement. Goal agreed in 2023: aviation fuel 5% less carbon-intensive in 2030 | International flights | Default life-cycle values at the Eighth Edition (Nov 2025) |
Shipping is the least settled. The IMO framework would set a global fuel standard, but its adoption was adjourned in October 2025 and the outcome of the autumn 2026 session was not found. Until then, the EU’s FuelEU Maritime is the only binding rule in the table.
Hydrogen incentives, as found
| Country | Type of support | Size and period | Status |
|---|---|---|---|
| United States | Production tax credit (45V), up to $3 a kilogram for 10 years | Construction must begin before 1 Jan 2028 (previously 2033) | In force; no 2026 Treasury guidance found; about $7.56 billion of hub awards cancelled in 2025 |
| Canada | Clean Hydrogen investment tax credit | 40%, 25% or 15% by carbon intensity; halved in 2034 and ended after | In force (Bill C-15, 26 Mar 2026) |
| European Union | Hydrogen Bank auctions: fixed premium per kilogram for up to 10 years | Third auction (7 May 2026): about EUR 1.09 billion for 9 projects, about 1.1 GW; lowest premium EUR 0.44 or 0.57 a kg depending on the source | In force; a fourth auction due by end-2026 |
| Germany | Core hydrogen grid and an e-fuel quota; penalty of EUR 14 a kg cited | About 9,040 km of network by 2032 | Capacity reservations open since Mar 2026 |
| United Kingdom | Hydrogen Allocation Rounds: 15-year strike-price contracts | HAR1: 11 projects at a weighted GBP 241 a megawatt-hour; HAR2: 27 projects shortlisted (765 MW) | HAR2 awards not found |
| Japan | Price-gap contracts for difference, 15 years | JPY 3 trillion; six projects selected by Mar 2026; targets of 3 Mt in 2030 and about 12 Mt in 2040 | In force since the Oct 2024 Act |
| South Korea | Clean Hydrogen Power Bidding Market | 2026 round cut to 500 GWh a year of clean hydrogen; certification threshold 4 kg CO2e a kg | Results not found |
| India | National Green Hydrogen Mission and the SIGHT incentive | Rs 19,744 crore outlay; up to Rs 50 a kg in year 1, tapering over three years (sources differ) | A green hydrogen consumption obligation for refineries and fertiliser plants was not found notified |
| Australia | Hydrogen Production Tax Incentive; Hydrogen Headstart | A$2 a kg from 1 Jul 2027 to 30 Jun 2040; up to A$2.25 billion for Headstart | Legislated; Headstart round 2 outcomes expected late 2026 or early 2027 |
| Brazil | Production credits (PHBC) and tax relief (Rehidro) | Up to R$18.3 billion of credits for 2028-32; local-content minimums reported | First auction date conflicting (late 2026 or 2027) |
| China | Targets and city-cluster pilots, no per-kilogram subsidy found | 2 Mt a year of renewable hydrogen by 2030, from trade press | Policy shifting toward demand mandates |
| Oman, UAE, Saudi Arabia, South Africa | Oman: land-lease cuts, contracts for difference, 10-year tax exemption. UAE: strategy only. Saudi Arabia: one large project, no incentive found. South Africa: no direct incentive | UAE target 1.4 Mt a year by 2031 | Oman round 3 award not found |
These incentives come in four shapes: a per-kilogram credit (the US, Australia, India), an auction or contract for difference (the EU, UK, Japan, Korea, Oman), an investment or tax relief (Canada, Brazil), and a demand rule that forces buyers to take hydrogen (the EU and German e-fuel quotas). The IEA found that announced public support fell by nearly two-thirds between its 2024 and 2025 reviews, to a cumulative $38 billion, and that supply-side support outweighed demand-side support by $1.5 to $1. A hydrogen producer that depends on a per-kilogram credit also faces a clock: the US credit needs construction to begin before 1 January 2028.
Where hydrogen enters a biofuel rule
- Hydrotreating. Renewable diesel and HEFA jet fuel are made by reacting oils with hydrogen. One published figure is 25 to 50 kilograms of hydrogen per tonne of feedstock (a trade-press figure; a research paper cited by an advocacy group gives 35.7 kilograms for jatropha oil). No source gave a figure per tonne of product. This blog’s earlier pieces on India’s SAF hydrogen bill and refinery hydrogen work through this.
- Refinery hydrogen. The EU rule text on industry requires 42% of industrial hydrogen to be renewable by 2030 and 60% by 2035, with exclusions that include hydrogen used as an intermediate in fuel production (the sentence was truncated in the source, so check it). Germany’s law is reported to oblige refineries to use e-fuel hydrogen in place of fossil hydrogen. Hydrogen Europe asks that all such hydrogen count toward the transport targets; that is an industry position, not the rule.
- E-fuel quotas. The EU requires 1.2% synthetic jet fuel from 2030, rising to 5% in 2035. The UK’s power-to-liquid obligation is 0.2% in 2028, 0.5% in 2030 and 3.5% in 2040, with one source giving 4%. Germany sets a road-fuel e-fuel quota, and the Netherlands and Italy report one too. Japan, India and Korea showed no e-fuel sub-mandate.
- Credits that stack, or do not. The only stacking rule found is American: one source says a facility cannot claim 45Z for a year in which it claims 45V, 45Q or the related section 48 credit. That is a facility-level rule, and how it treats a fuel plant buying hydrogen from a separate plant was not found. Washington’s clean fuel standard adds provisions for electrolysis energy for e-jet and marine fuel. The UK’s RTFO already gives all compliant hydrogen double certificates as a development fuel. Orrick reports that EUR 300 million of EU Hydrogen Bank money is earmarked for hydrogen used in SAF and marine fuel. For the EU Hydrogen Bank, Japan and India, no stacking rule with biofuel credits was found.
- Ethanol and biodiesel. Blend mandates in India, Brazil, Indonesia and the United States have no hydrogen component. Their carbon-intensity treatment is a separate question, which this blog covers in the CORSIA and RIN pieces linked below.
Why quotas and credits are needed is in the cost gap. The three estimates found differ in year, basis and currency, but all put electric kerosene well above fossil jet, and the most recent index above HEFA by a multiple. For comparison, one source puts HEFA SAF at about twice fossil jet, up to five times in mandated markets, and IATA estimates global SAF output at 1.9 million tonnes in 2025 and 2.4 million in 2026, which is under 1% of jet fuel.
What changed in 2026, and what is only proposed
- Done: the US 2026-27 volume rule took effect on 15 June; Singapore’s levy started selling on 1 April; Vietnam’s E10 date was set for 1 June (rollout unconfirmed); Australia legislated its hydrogen incentive.
- Adopted but unconfirmed in force: Germany’s revised quota; Japan’s SAF obligation; the UK SAF Act.
- Proposed: Canada’s domestic-content rule; Argentina’s higher blends; Australia’s fuel demand mechanism; E21 and E25 in India; the EU’s post-2030 transport rule and its ETS and FuelEU revisions.
- Contradictory: Indonesia’s B50, Malaysia’s B15 or B20, Korea’s auction results, and the first Brazilian hydrogen auction.
What this means for India
India’s ethanol blend reached 20% and the compressed biogas obligation is mandatory, but the post-E20 steps and the SAF targets are indicative, and no green hydrogen consumption obligation for refineries or fertiliser plants was found notified. The country’s hydrogen support is a per-kilogram incentive that tapers, plus refinery awards. Compared with the EU and UK, which tie hydrogen to fuel with a numbered quota, India pays for hydrogen in one box and sets SAF targets in another. See the blog’s pieces on the three credit systems, CORSIA values and the cost of hydrogen.
Where the data stop
- No primary text. Every figure is a summary of a summary; check the statute or notice before quoting a number.
- Conflicts left open. US biomass-based diesel 2026 (9.07 or 8.86 billion RINs), the German 2040 e-fuel quota (8% or 10%), the UK 2040 power-to-liquid share (3.5% or 4%), Indonesia’s B50, and the Global Biofuels Alliance membership (19 or 28, both old).
- Missing countries and items. New Zealand, Nigeria, Colombia, Mexico, Norway, Switzerland, Poland’s targets, Saudi biofuel and SAF policy, Kenya’s hydrogen, CORSIA’s numeric default values and phase dates, and the text of the EU refinery-hydrogen counting rules.
- Not found anywhere: a stacking rule between the EU Hydrogen Bank, Japan’s contracts for difference or India’s SIGHT and any biofuel credit.
- Dated by source. The 60-country blending count is end-2023; the cost estimates are different years; the UK SAF percentages come from one ICAO slide deck.
What would fix this
- The IEA and REN21 should publish a single, dated table of national blending and SAF obligations with a legal-status column (in force, adopted, proposed), so figures like the 60-country count are refreshed past 2023.
- The European Commission should publish the counting rule for e-fuel hydrogen used in refineries toward the transport targets, and a table of which member states have legislated their e-fuel quotas.
- The US Treasury should say in the final 45Z regulations how the 45V exclusion applies when a fuel plant buys hydrogen from a separate plant, so the stacking question has an answer.
- India’s Ministry of New and Renewable Energy and the Ministry of Petroleum and Natural Gas should state whether a green hydrogen consumption obligation for refineries has been notified, and at what levels, so the missing link to the SAF targets is either closed or acknowledged.
- Japan’s METI should name the legal vehicle and entry-into-force date of its SAF supply obligation, so the gap between the 10% target and the 1% to 5% rule is clear.
- ICAO should publish a default life-cycle value for power-to-liquid fuel in its CORSIA table if one exists, or state that none does, so e-fuel mandates have a common yardstick.
These are proposals from this blog, not recommendations any agency has adopted.
Sources and caveats
All figures were collected on 14 October 2026 from search-result summaries; no primary document was opened, and statuses can change. Americas: EPA RFS 2026-27, IRS 45Z proposed regulations, CRS on 45V, Washington Ecology, Torys on Canada’s credits, Mayer Brown on Brazil SAF, Mattos Filho on Brazil hydrogen, Los Andes on Argentina. Europe: Clean Hydrogen Observatory, EBB transposition overview, Gleiss Lutz on the German quota, ICAO slides on the UK SAF Act, Orrick on SAF mandates, Hydrogen Europe on the third auction, EUR-Lex 2025/2359. Asia-Pacific and others: Kotak Neo on India’s ethanol roadmap, S&P on Japan’s SAF proposal, ESG Today on Singapore, ATO on the hydrogen incentive, White & Case on Australia, Petromindo on Indonesia, White & Case on Japan’s hydrogen Act, Oman Observer. Global: ICAO CORSIA eligible fuels, IMO briefing, REN21 GSR 2024, IEA Global Hydrogen Review 2025, Hydrogen Insight on IEA e-fuel costs, CEA KERMIT study, Argus e-SAF indexes, IATA, Dec 2025. Charts: the aviation chart combines obligations, indicative targets and a target, labelled by status; the cost chart combines estimates from different years and currencies. Items written from memory by the research and not search-verified (the EU crop cap and the 2040 to 2050 ReFuelEU shares) are left out of this article.
About this article: Researched, written and edited by Umashankar Triplicane Dwarakanathan, with AI research assistance; every figure is meant to trace to the primary source cited. See the Editorial Policy for how sourcing, AI use and corrections work.