Italian biomethane update – RED III and GO auction results

The recently released 5/2026 decree implements RED III with implications for biomethane in transport and power, and non-transport biomethane volumes auctioned in December settled above EUR 10/MWh. On 20 January 2026, the Italian RED III transposition measure “Decreto Legislativo 9 genniao 2026, n. 5” (d.lgs. 5/2026) was gazetted, and will enter into force on 4 February 2026. It increases the targets for advanced biofuels, which should stimulate further demand for biomethane, and tightens requirements for biomass power, heat, and cooling applications.