The purpose of the Act is to promote the use of sustainable biofuels for land transport and to reduce cradle to grave greenhouse gas emissions from transport in order to contribute to the fulfillment of Denmark's international climate commitments. The Act sets mandatory levels of biofuels use for companies and is regularly amended to update these levels.

The 2016 amendment introduces requirements for the use of 0.9 per cent of advanced biofuels in land transport fuels, amends the definition of which companies are covered by the law, and authorises to establish rules for compliance with MRV regulation to promote CO2 emissions reduction from maritime transport and rules on access to ships.