11-2026 Newsletter Task 37
Newsletter IEA Bioenergy Task 37: 11/2026
Policy Issues
Topics:
- Environmental groups petition to end federal grants for on-farm digesters
- USDA pauses on-farm digester loan agreements
- USA: Farm Bill Draft Expands Support for Organics Infrastructure
- In Canada, the government is supporting the transition of vehicle fleets to gas
- EPA finalizes update to the Renewable Fuel Standard with more favorable biogas terms
- Mexico moves to formalize biomethane market
- British Columbia regulator upholds RNG definition
- Senate releases farm bill draft
- Biogas tax credit questions remain
- South Korea publishes 2026 output targets for biogas producers
- Guidelines for trans-European energy infrastructure
- EU states approve one-year ETS2 delay
- What are France’s ambitions for biomethane?
- French biomethane mandate at risk after EU opens legal action
- Commission approves €3.7 billion Czech State aid scheme for sustainable biomethane
- Italy finalises biomethane funding system
- Netherlands Delays Green Gas Mandate
- German Federal Network Agency: 2026 max. values for tenders of biomethane plants
- Support of Investments in emission-reducing measures for AD of Livestock manure
- Support for Biogas in Catalonia
- Germany’s transport sector reform: New demand for certified biomethane
- Sweden launches $106 million biogas production package
- Poland introduces auction-based support system for biomethane production
The Americas
Environmental groups petition to end federal grants for on-farm digesters
In January, a coalition of 34 environment and agriculture groups are urging the U.S. Department of Agriculture to declare on-farm manure digesters ineligible for funding through the Rural Energy for America Program. The groups include environmental organizations such as Friends of the Earth, the Waterkeeper Alliance and Food & Water Watch, as well as agriculture-centered advocacy groups like Farm Aid and Animal Legal Defense Fund. They say digesters do not provide sufficient benefits and take money away from other projects that could be funded through the Rural Energy for America program. The petition comes amid continued advocacy against government programs that subsidize anaerobic digesters.
USDA pauses on-farm digester loan agreements
End of January, the U.S. Department of Agriculture’s Rural Business Cooperative Service (RBCS) paused the acceptance, processing and awarding of loan note guarantees to anaerobic digesters for up to 90 days while it conducts an investigation into loan delinquencies and project underperformance. Projects in the Rural Energy for America Program that had already received such agreements are still able to access funding. In the announcement, RBCS disclosed 21 loans to digester projects totaling $386.4 million are seeing a delinquency rate of 27%. In April, the federal agency’s pause on loan guarantees for new projects was extended past the 90-day deadline and will now go through the end of the year.
USA: Farm Bill Draft Expands Support for Organics Infrastructure
The 2026 Farm Bill was pas sed by the House Agriculture Committee in early March, moving to the full House of Representatives for consideration. The legislation provides a significant shift in federal policy for the organics recycling industry. It moves several critical waste and energy initiatives from experimental status into long-term frameworks. A central development in the 2026 draft is the formalization of the Composting and Food Waste Reduction program (CFWR). The Energy Title continues to be a primary source of capital for the AD sector through the Rural Energy for America Program, or REAP. The bill doubles the maximum amount for a loan guarantee from $25 million to $50 million.
In Canada, the government is supporting the transition of vehicle fleets to gas
Ottawa has announced new funding to support 155 projects focused on sustainable mobility. The federal government is allocating $97 million (€60 million) toward infrastructure, fleet modernization, and public awareness initiatives. $84.4 million (€52 million) will fund 122 projects to install over 8,000 charging stations for electric vehicles, while approximately $5.7 million (€3.5 million) is earmarked for the transition to CNG through purchase incentives provided to transport companies. Specifically, three companies are receiving support under the program: UPS Canada, Tomlinson, and Westcan Bulk Transport. Ottawa has also allocated 7.2 million Canadian dollars for 30 projects focused on education and awareness.
More (in French)
EPA finalizes update to the Renewable Fuel Standard with more favorable biogas terms
In March, the U.S. Environmental Protection Agency (EPA) has signed the final rule to continue its Renewable Fuels Standard (RFS) Program and set the volumetric obligations for renewable fuels (RVOs) used in on-road transportation for 2026 and 2027. Under the rule, EPA agency clarified that renewable natural gas (RNG) accounts for approximately 91 percent of the total volume for both years. The Set 2 rule, as the update is called, sets the level of credits that refiners and importers of petroleum fuels must purchase to offset the carbon intensity of their fuels. The credits are generated by producers of alternative fuels, including those derived from corn, soybeans, organic waste and landfill gas, among other sources. The final rule also keeps a proposal to cut in half the amount of credits that foreign fuels and feedstocks can generate beginning in 2028, per a release from the agency on Friday. In 2024, 86 percent of all on-road fuel used in natural gas vehicles in the U.S. was RNG, surpassing industry’s goal of achieving 80 percent by 2030.
Mexico moves to formalize biomethane market
Mexico’s Ministry of Energy (Sener) is to create an official standard for its biomethane market. The move will help establish supply chain traceability and strict grid injection protocols. The technical standards required to operationalize biomethane commercialization, grid injection norms, quality specifications, and measurement protocols, had not yet been published. The NOM under development is the instrument that will fill that gap.
British Columbia regulator upholds RNG definition
British Columbia’s Utilities Commission (BCUC) has concluded that no major changes to its definition of renewable natural gas (RNG) are warranted, following an inquiry of environmental groups. The final report, published on 26 May 2026, confirms that public utilities may continue to acquire biomethane and its associated environmental attributes from out-of-province sources — including locations with no physical pipeline connection to BC — provided those attributes are transferred to customers and retired at the point of sale (book and claim system). The panel ruled that “displacement” of fossil gas, as required under the amended Greenhouse Gas Reduction (Clean Energy) Regulation, does not necessitate physical displacement within BC’s pipeline system.
Senate releases farm bill draft
End of June the U.S. Senate Committee on Agriculture released its long-awaited draft of the farm bill, which funds the U.S. Department of Agriculture for five years, includes provisions considered beneficial to organics recycling. The bill would make permanent community compost funding programs run by the USDA’s Office of Urban Agriculture. It would also make anaerobic digestion projects eligible for funding under the program. And like the House version, the Senate’s farm bill draft would also double the maximum loan guarantee for projects funded by the Rural Energy for America Program from $25 million to $50 million.
Biogas tax credit questions remain
One year after President Donald Trump signed the One Big Beautiful Bill Act, key questions about implementation of the Clean Fuel Production Tax Credit, known in the tax code as 45Z, remain unanswered. Yet the 45Z credit has remained largely out of reach for the biogas industry for much of its life due to ongoing questions about emissions calculations. The U.S. Department of Energy on June 12 released updated life cycle emissions guidance for renewable natural gas and other alternative fuels, though it did not include the manure calculations.
Asia-Pacific
South Korea publishes 2026 output targets for biogas producers
The Ministry of Environment pre-announced legislation of the subordinate statutes of the “Act on the Promotion of Production and Use of Biogas using Organic Waste”. According to the draft of the subordinate statutes, mandatory producers in the public sector will be given a target production rate of 50% in 2025 and 80% in 2045. Mandatory producers in the private sector will be given a target production rate of 10% in 2026 and 80% in 2050. Mandatory producers in the private sector include those who discharge livestock excreta with more than 20,000 or more pigs, livestock excreta disposal facilities with a daily capacity for treatment of 100 tons or more supported by the central or local governments, and those who discharge food waste with an annual emission of 1,000 tons or more.
Europe
Guidelines for trans-European energy infrastructure
In the new TEN-E Regulation, a new centralized EU scenario for electricity, gas and hydrogen would be made by the Commission (instead of the TSOs) and would dictate the assessment of infrastructure needs performed by grid operators. This scenario should be based on EU renewable energy and climate targets. It remains to be confirmed how this scenario and subsequent infrastructure need assessments will take into account biomethane production, pipeline of projects and the long-term biomethane potential.
EU states approve one-year ETS2 delay
EU countries have formally adopted a new climate target requiring the bloc to cut net greenhouse gas emissions by 90 per cent by 2040 compared with 1990 levels, strengthening the EU’s pathway toward climate neutrality by mid-century, despite opposition from several central and eastern European countries during earlier negotiations. The measure amends the EU’s climate law and establishes the bloc’s next major milestone after the existing goal of reducing emissions by at least 55 per cent by 2030, giving industry and investors clearer expectations for the clean-energy transition in the following decade. Under the compromise adopted Thursday by the Council of the EU, at least 85 per cent of emissions reductions must come from domestic cuts, while up to 5 per cent may be met through high-quality international carbon credits from 2036 onwards, provided they comply with the Paris Agreement.
What are France’s ambitions for biomethane?
Early February, the French government published its third Multi-Year Energy Program (PPE 3). This document covers the period 2023-2035 While the text emphasises low-carbon electrification and the revival of nuclear power, it also sets targets for so-called “non-electric” sectors. Biomethane is one of the levers identified to reduce the share of fossil fuels, which is to fall from 58% in 2023 to 40% in 2030. The PPE 3 forecasts an increase in biomethane production from 9 TWh today to 47-82 TWh in 2035. An intermediate milestone is set at 44 TWh injected in 2030, almost three times more than the current capacity of 15.7 TWh with more than 800 injection sites in service.
More (in French)
French biomethane mandate at risk after EU opens legal action
The European Commission has launched legal action against France over a biomethane support scheme that favours domestic production, in a move that signals a widening crackdown on national measures that restrict cross-border trade. The decision marks a further escalation in enforcement of EU internal market rules, following a similar ruling against Ireland early April. According to the Commission, France’s certificate system – which requires suppliers to source biomethane or credits from domestic producers – restricts imports from other EU member states and breaches free movement of goods provisions under a central EU treaty.
Commission approves €3.7 billion Czech State aid scheme for sustainable biomethane
The European Commission has approved a €3.7 billion Czech scheme to support the construction of biomethane production stations in line with the objectives of the Clean Industrial Deal. The scheme is expected to support installations with a total output of 350 million standard cubic meters of sustainable biomethane. The aid will take the form of a direct price support scheme, with a two-way contract for difference that provides a bonus for each MWh of biomethane produced for a duration of 15 years, based on a so-called strike price. If market prices of natural gas are lower than the strike price, the State will pay the producers. If they are higher, the companies will pay back the difference. The beneficiaries will be selected through a competitive tendering procedure.
Italy finalises biomethane funding system
Italy has finalized a €2.2 billion funding scheme to accelerate national biomethane production, aiming for 5.8 billion cubic meters (cbm) annually by 2030. This target nearly doubles Italy’s current production. Supported by the EU-backed National Recovery and Resilience Plan (PNRR), the scheme provides capital grants (up to 40%) and 15-year tariffs for projects coming online by mid-2028, focusing on agricultural waste and manure. Funding supports new, upgraded, or converted biomethane plants, with a focus on advanced biomethane for transport and heating. The initiative strongly supports the agricultural sector, utilizing manure and agricultural by-products.
Netherlands Delays Green Gas Mandate
The Netherlands has pushed back its mandatory green gas blending requirement to January 2027 instead of 2026, raising fresh doubts about Europe’s ability to scale biomethane production tenfold by 2030. To offset the setback, Dutch authorities have attached higher blending targets to the first year of implementation — a compromise that reflects both genuine political commitment to green gas and the considerable difficulty of deploying it at scale. The timing is awkward for Brussels. The European Union’s REPowerEU plan, launched to end dependence on Russian pipeline gas, calls for 35 billion cubic meters of biomethane production annually by 2030. The challenge is not unique to Europe. In the United States, the Inflation Reduction Act has turbocharged investment in renewable natural gas through tax credits, but project developers there similarly cite permitting bottlenecks and grid interconnection delays as persistent obstacles. Japan and South Korea, both heavily dependent on liquefied natural gas imports, are exploring domestic biomethane blending as part of broader hydrogen and green gas strategies
German Federal Network Agency: 2026 max. values for tenders of biomethane plants
The German Federal Network Agency has published two specifications for the maximum values for tenders for biomass and biomethane plants in 2026. The maximum value for new biomass plants is 19.43 ct/kWh, and for existing biomass plants it is 19.83 ct/kWh. A maximum value of 23.13 ct/kWh has been set for biomethane plants. No bids were submitted for biomethane tenders last year The increase corresponds to the maximum increase permitted by law. The specifications apply to tenders in the coming twelve months. This means that they already apply to the two bidding dates for the biomass and biomethane tenders on April 1, 2026.
More (in German)
Support of Investments in emission-reducing measures for AD of Livestock manure
German operators of biogas plants, as well as farms participating in biogas projects, are once again to receive support for climate-friendly investments. The goal is to increase the anaerobic digestion of livestock manure and to establish emission-reducing technologies, primarily to reduce climate-damaging methane emissions from livestock farming. The funding guidelines and the “easy-Online” electronic application system were presented during an online seminar. The presentations on the guidelines are available for download on the event website.
More (in French)
Support for Biogas in Catalonia
Catalonia will allocate an additional 25 million euros in 2026 to support the deployment of new biogas production facilities. This funding complements the 46 million euros already committed for 2024. The program maintains two main funding streams: The first concerns the construction of biogas production facilities, and the second focuses on the treatment of digestate from supported or existing facilities.
More (in French)
Germany’s transport sector reform: New demand for certified biomethane
Germany has implemented the revised Renewable Energy Directive (RED III) for the transport sector and finalized its reform of the Greenhouse Gas Reduction Quota (GHG Quota). The reform raises Germany’s own climate targets significantly, and thus structurally increases demand for certified biomethane from across the EU. The current reform extends the obligation to 2040 and raises the targets substantially, aiming for a 65% greenhouse gas reduction by 2040 with a sub-quota for advanced biofuels of 9% of the energy content of fuels placed on the market. The reform also tightens fraud prevention. Mandatory on-site audits for producers of biofuel are designed to confirm that certified volumes reflect genuine emissions reductions. The legislation addresses also the supply of biomethane from across the EU: biomethane injected into the interconnected gas grid in any EU member state can be credited against Germany’s GHG Quota, without the need for physical transport to Germany.
Sweden launches $106 million biogas production package
Sweden has opened applications for gaseous and liquified biogas production support, allocating an SEK 1.035 billion ($106 million) budget covering manure-based biogas and upgraded biomethane. The scheme provides compensation per kilowatt-hour of biogas produced from manure and per kilowatt-hour of biogas upgraded to biomethane, regardless of whether delivered in gaseous or liquid form. Under the Swedish scheme, the plant must produce biogas within Sweden, with said production occurring between 1 January 2026-31 December 2026. Likewise, feedstocks used in the production process must align with the EU RED III, Annex IX, which includes feedstocks such as manure, municipal biowaste, agricultural residues, wastewater sludge, used cooking oil, Category 1&2 tallow, lignocellulosic materials and algae grown on land.
Poland introduces auction-based support system for biomethane production
President Andrzej Duda signed sweeping amendments to Poland’s Renewable Energy Sources (RES) Act on October 15, 2026, establishing a major new support framework for the biomethane sector. It introduces a dedicated, competitive auction system overseen by the Energy Regulatory Office (URE) to provide long-term revenue certainty and fixed-price contracts for large-scale biomethane facilities with an electrical capacity exceeding 1 MW. Small biomethane plants below 1 MW have already tasted the advantage of a feed-in premium (FIP) system, larger plants have for long lacked investment opportunities. The legislative proposal tries to reverse this loss by implementing a competitive auction process, anchoring biomethane producers with the kind of financial security it requires for long-term sustainability. Auction winners can receive long-term support (up to 20 years), and facilities are permitted to participate in subsequent auctions for any uncontracted production volumes.