On March 1, 2018, the European Commission announced the approval of a €4.7 billion Italian support scheme for the production and distribution of advanced biofuels, including advanced biomethane, for use in the transport sector.  Under the scheme, producers of advanced biomethane and biofuels will receive a premium to compensate for higher production costs compared to fossil fuels.  The scheme will run from 2018 until 2022 and will be financed by transport fuel retailers who are required to blend a certain percentage of advanced biofuels and biomethane.  According to Commissioner Margrethe Vestager, “[t]he scheme will encourage the production and consumption of advanced biofuels in Italy, while limiting distortions of competition.”  Additionally, the measure will help Italy reach its 2020 target for the use of renewable energy in transport under the European Union Renewable Energy Directive (RED).

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