5 Reasons Your Fleet Isn’t Ready for RED III and What to Do About It

Many fleets aren’t ready for RED III, falling short on fuel traceability, GHG tracking, advanced biofuel use, smart procurement, and Scope 3 strategies. Heeding Marketplace helps close these gaps with certified fuels, automated reporting, and AI-driven sourcing, turning compliance into a competitive advantage.
RED III
Written by
Alec Whitten
Published on
July 31, 2025

In November 2023, the European Union’s revised Renewable Energy Directive (RED III) came into effect, raising the binding renewable energy target in transport to 29 percent by 2030. This marks a major turning point for logistics providers, fleet operators, and fuel buyers across Europe.

RED III introduces stricter rules on fuel sourcing, greenhouse gas (GHG) emissions tracking, and certification. While the directive provides a framework for progress, many fleets are unprepared for its requirements particularly when it comes to documentation, procurement, and emissions accountability.

Based on recent market insights, here are five critical gaps and how platforms like Heeding Marketplace help you close them quickly and effectively.

1. Your Fuel Isn’t Traceable

Using cleaner fuels is no longer enough. Under RED III, only certified, traceable fuels count toward compliance. Every liter must be backed by verifiable sustainability credentials such as ISCC, REDcert, or equivalent schemes to be considered RED III-eligible.

What to do:
Heeding Marketplace connects you with pre-vetted, certified suppliers of RED III-compliant fuels like XTL (a Renewable Fuel of Non-Biological Origin). Every transaction is supported by the documentation you need for internal audits, government reporting, or client contracts, all inone platform.

2. You’re Not Measuring GHG Reductions Properly

RED III shifts the focus from fuel type to measurable impact. Fleets must now demonstrate well-to-wheel GHG reductions, tracking everything from feedstock origin to final combustion.

What to do:
Heeding’s built-in emissions tracking engine calculates the full lifecycle emissions of each fuel purchased through the marketplace. You get automated RED III-compliant GHG reporting that supports your regulatory submissions and your customers’ ESG requirements.

3. You Rely on Conventional Biofuels

Conventional biofuels made from food or feed crops are capped at 7 percent of transport energy use under RED III. The directive encourages the use of advanced biofuels and RFNBOs like XTL, which deliver lower emissions and unlock compliance multipliers.

What to do:
On Heeding Marketplace, you can source advanced fuels from trusted producers, including multiple categories of RFNBOs that are already RED III-aligned. These fuels improve your compliance score and future-proof your fleet against upcoming policy shifts.

4. You Lack Fuel Procurement Intelligence

Many procurement teams still buy fuel based on price alone. But with rising carbon regulations and customer ESG expectations, lowest-cost doesn’t mean lowest-risk.

What to do:
Heeding uses AI to optimize fuel sourcing, helping you evaluate suppliers based on GHG intensity, traceability, compliance value, and logistics costs. You get full visibility and smarter control over how and from whom you source, without manual guesswork.

5. You Have No Strategy for Scope 3 Decarbonization

Corporate buyers are under pressure to reduce Scope 3 emissions — and transport is often the biggest contributor. If your fleet can’t provide cleaner options, clients may start looking elsewhere.

What to do:
By sourcing RED III-compliant fuels through Heeding, you can offer your customers measurable GHG reductions, backed by real-time data and verified certification. This positions your business as a strategic partner in decarbonization, not just a logistics vendor.

RED III isn’t just another regulatory hurdle. It is a wake-up call and a chance to lead.

Fleet operators who move now will avoid compliance penalties, win more sustainable contracts, and gain visibility in a rapidly changing market. Heeding Marketplace brings together all the tools you need to stay RED III-compliant and competitive in one integrated platform.

Discover how Heeding can help you stay ahead:
Visit www.myheeding.com or contact us at contact@myheeding.com

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