Germany has introduced a draft legislation aimed at making green hydrogen and synthetic fuels central to the country’s transport decarbonisation strategy. The law aligns with the Renewable Energy Directive (RED III) and ReFuelEU Aviation regulations of the European Union. It sets a national target of reducing transport fuel emissions by 53% by 2040, which would result in over 77% renewable energy use in the sector. Notably, the targets apply to all transport modes, including road, shipping, and aviation. The draft law includes a binding quota for renewable fuels of non-biological origin, starting at 0.1% in 2026 and increasing to 12% by 2040, exceeding the EU's 2030 minimum requirement. The legislation also entails phasing out food-based biofuels, banning soy- and palm-derived fuels, and implementing stricter sustainability verification measures. Only fuels verified through government inspections would count towards quota compliance. The draft law responds to the EU’s deadline for member states to adopt RED III by May 2025, with Germany showcasing proactive steps. If approved, the law will solidify green hydrogen's role in decarbonising heavy transport, supporting Germany's target of achieving net-zero emissions by 2045. It aims to offer clear signals to investors and technology providers in the renewable fuels sector. Final approval is expected later in 2025, paving the way for implementation in 2026.