RED III — what changes for UCO collectors after 2026

A new annex to the Renewable Energy Directive shifts the double-counting accounting formula for UCO-based biodiesel. Here is a step-by-step look at what this means for Ukrainian collectors between 2026 and 2028.

Brief context

The Renewable Energy Directive (RED) is the EU's primary regulatory instrument for decarbonising transport fuels. RED II (2018) established double counting for UCO-based biodiesel: 1 litre counts as 2 "green" litres in country-of-blend reporting. RED III (2023, implementation 2025–2026) shifts the emphasis.

The central change in RED III is stricter supplier-side ISCC documentation. The question of UCO origin is addressed through real-time mass-balance accounting.

Three changes that matter for Ukraine

1. Cap on double counting in the fuel blend

RED III limits the share of double-counted categories to 1.7% of the total transport fuel volume per year (country-level). In countries with large UCO import volumes (Netherlands, Germany), quota fills quickly, so trade contracts should be planned well ahead.

2. Higher traceability bar

From January 2026 — mandatory registration of points-of-collection in the pan-European Union Database (UDB). Every partner establishment must have a system entry. Registration is performed by the collection operator.

3. Lab confirmations for exporters

Every UCO batch exported to the EU from 2027 onwards requires a laboratory passport issued by an accredited lab. Accreditation details to be confirmed.

What changes for the operator

Operationally — a substantial IT load: UDB integration, lab APIs, online mass-balance sync. EKO-OYLIS treats compliance infrastructure as an ongoing investment. For clients, the changes remain invisible — same container, same schedule, same manager.

Conclusions

RED III is not "competition drives up price" but "the bar has risen, small collectors without compliance will leave the market". For EKO-OYLIS partners, preparation for the transition is already underway.