The government has passed a biofuels obligation which will ensure an average of 4% of fuels are more eco-friendly, at no cost to the consumer.
The biofuels used must produce 35% less greenhouse gases than their fossil fuel comparators, petrol and diesel, Energy Minister Eamon Ryan said.
Stringent conditions will also be introduced in relation to the source and type of biofuels supplied.
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In order for biofuels to be counted towards the obligation, they must meet the EU Sustainability Criteria for biofuels.
"We do not have oil supplies of our own in Ireland but we can produce biofuels," said Mr Ryan.
"Every year, we send over €6bn a year overseas on our import fossil fuel bill. This figure will rise even more as oil becomes more expensive and more difficult to find."
The Minister continued: "We need an alternative to fossil fuels in order that we have a secure energy supply into the future. Biofuels can provide part of the answer.
"This Obligation will place responsibility on fuel suppliers to move towards low-carbon fuel."
He said the new law would build up the Irish biofuels production capacity, providing a guaranteed market for the bio-energy sector.
The Biofuels Obligation will be administered by the National Oil Reserves Agency (NORA) and fuel supply companies will be obliged to meet this cost.
(PR/KMcA)
