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How is the ERE price formed? The market behind emission reduction units - ERE Certificaten Nederland

The price of an ERE is driven by supply and demand on a regulated market. What moves that price, and what can businesses expect?

ERE Registratie Editorial 5 February 2026 4 min read
market ERE

More and more companies with charging infrastructure are discovering that their charging sessions have financial value in the form of emission reduction units (EREs). But how is the price of such a unit actually determined? And what should you watch if you want to estimate revenue?

How the ERE system works

The ERE system is a market mechanism managed by the Netherlands Emissions Authority (NEa) through the Energy for Transport Register (REV). The principle is similar to emissions trading: parties that save CO₂ by supplying renewable energy to transport earn credits. Parties that are legally required to do so buy those credits.

One ERE equals one kilogram of avoided CO₂ emissions, calculated over the full life cycle of the energy carrier.

Demand for EREs is created by the annual obligation on fuel suppliers. They must show that an ever-larger share of the energy they deliver to the transport sector results in CO₂ reduction. The required reduction percentage rises gradually — from 14.4% in 2026 to over 27% in 2030.

Fuel suppliers that do not deliver enough renewable energy themselves must buy EREs from parties with a surplus. That structural demand underpins the market price.

Supply: who generates EREs?

EREs are generated by companies that register renewable energy in the REV. The two main sources are:

  • Biofuels: traditionally the largest source, especially advanced biofuels from waste and residues.
  • Electricity for transport: a growing share, from public and private charging points.

For electricity, the number of EREs is calculated as follows:

EREs = delivered kWh × renewable share × 183 g/MJ × 3.6 MJ/kWh ÷ 1,000

Where the renewable share is 50.4% for grid power in 2026, or 100% with proven own generation from solar or wind.

What drives the price?

The ERE price moves continuously and is influenced by several factors:

Biofuel market

Biofuels still dominate ERE supply. Price swings in the international biofuel market — for example from changing import flows from Southeast Asia or production disruptions — feed straight into the ERE price.

Regulation and policy

Policy changes have a large impact. Think of the fossil reference value (currently 183 g CO₂/MJ), rules on double counting for certain feedstocks, and whether specific energy carriers are allowed.

Growth of electric transport

As more electric vehicles hit the road and more charging points are connected, supply of EREs from electricity grows. In time this can increase total supply and put pressure on the price, although the impact is still limited compared with biofuels.

Seasonality and trading behaviour

Around deadlines for the annual obligation, demand can spike temporarily. Speculative trading plays a role too, as on other commodity markets.

Historical price development

Under the previous HBE system, the price fluctuated roughly between €7 and €19 in recent years, with a three-year average around €12 per unit. Conversion to EREs is not one-to-one, because the unit is now based on kilograms of CO₂ reduction rather than energy content.

For electricity from the grid, the current calculation yields revenue of roughly €0.06 to €0.12 per delivered kWh, depending on the market price. With your own renewable generation, this can rise to €0.12 to €0.25 per kWh.

A sample calculation

Suppose a logistics company charges four electric vans, each using 25,000 kWh per year, plus four electric cars at 5,000 kWh each. That is 120,000 kWh (120 MWh) in total.

Using grid power (50.4% renewable) and an assumed ERE price of €0.30 per kg CO₂:

  • EREs generated: 120,000 × 0.504 × 183 × 3.6 ÷ 1,000 ≈ 39,849 EREs
  • Gross revenue: about €11,955 per year

With own solar panels (100% renewable), this rises to about €23,700 per year — a doubling.

What should you take away?

The ERE price is not fixed. It is the outcome of a dynamic market where regulation, energy prices and technology come together. For companies with charging infrastructure, it is important to:

  • Budget realistically: do not assume the highest market price; use a range.
  • Optimise where your power comes from: own generation structurally yields more.
  • Follow the market: prices can shift quickly because of policy or international developments.

The ERE system rewards companies that help make transport cleaner. The key is to stay well informed and keep registration in good order.