Biofuels - Brussels approves UK bioethanol excise duty reduction

Tue 02 March 2004 View all news

On 03 February 2004, the European Commission approved the UK’s excise duty reduction for bioethanol used for road transport. The reduction of 20 pence below the excise duty for ultra low sulphur petrol and sulphur free fuel will take effect from January 2005 and has been approved until 31 December 2010. The duty reduction will be granted automatically to any producer of bioethanol in the UK or importer of bioethanol provided that the fuel concerned meets the specified definition of bioethanol. The Commission ruled that the duty reduction complied with its guidelines for environmental aid. Governments across the EU are gearing up to implement last year’s Biofuels Directive (2003/30/EC) which asked Member States to set indicative biofuel targets for 2005 and 2010, based around EU reference values of 2% for 2005 and 5.75% for 2010. The LowCVP Fuels Working Group at its next meeting on 12 February will advise on key issues for the UK implementation of the Biofuels Directive.

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