In our ongoing quest to add green value along the supply chain, navigating sustainability regulations is crucial for providing traceable and reliable biofuel feedstocks globally. As these products cross multiple borders and regulatory lines, both European and national, compliance becomes essential. In this edition of Terms we own, Connex’ Sustainability Executives Sophia Thiel and Mariana Alday Olivares explain the importance of these regulations and why INS certification is integral to our operation and therefore one of the Terms We Own
What is INS?
The Italian National Scheme (INS) is Italy’s regulatory framework for certifying the sustainability and greenhouse gas (GHG) emissions savings of biofuels, aligning with the European Union’s Renewable Energy Directive II (RED II). This scheme verifies that biofuels used in Italy, whether produced domestically or imported, meet specific sustainability standards that are critical for both environmental protection and the promotion of renewable energy.
Key Aspects of the Italian National Scheme
The INS requires users to demonstrate at least a 65% reduction in GHG emissions compared to fossil fuels by 2021. It also ensures compliance with land use, biodiversity, and social criteria. Companies involved in the production, trading, or use of biofuels in the region must be certified under INS, verifying the entire supply chain for transparency and traceability. Italy maintains a national register of certified biofuels, crucial for monitoring and reporting sustainable biofuel use, ensuring only certified products receive incentives or count towards national renewable energy targets. Additionally, Italy recognizes several voluntary schemes approved by the European Commission that align with national requirements.
The impact on the supply chain
The INS has streamlined the biofuel supply chain by enforcing rigorous certification processes, ensuring transparency and traceability from feedstock cultivation to final product. This has enhanced the credibility of biofuels, boosted investor confidence, and facilitated compliance with international sustainability standards, ultimately promoting a more sustainable and accountable biofuel industry.
Its relevance to our work at Connex
For biofuel trading companies like Connex, obtaining certification under the INS is crucial for market access, as it allows legal sales and use of products in Italy, thereby expanding business opportunities. Compliance with this scheme helps avoid legal and financial penalties, ensuring adherence to stringent EU sustainability regulations. The INS also provides a competitive advantage, positioning companies as leaders in sustainability, which is increasingly valued by consumers and businesses. Additionally, certified biofuels often qualify for national incentives like tax breaks or subsidies, reducing costs and boosting profitability. By participating in the scheme, companies contribute to Italy’s and the EU’s renewable energy targets, particularly in reducing greenhouse gas emissions in the transport sector, fostering stronger relationships with regulators and stakeholders.
In short…
The INS is essential for sustainable biofuel trading companies, providing a clear certification framework that ensures products meet strict sustainability standards. Even if a company is already ISCC certified, obtaining INS certification offers significant advantages, including full compliance with national laws, access to specific market segments, eligibility for local incentives, and enhanced trust and credibility within the Italian market. For biofuel trading companies looking to maximize opportunities and minimize risks in Italy, dual certification with both ISCC and INS is a strategic move.
Do you want to know more about INS, sustainability, regulations or speeding up the energy transition? Contact the Connex Sustainability Team sustainability@connex.trading, our lines and doors are always open!