European Commission publishes biofuels proposals to limit global land conversion and cut use of food-based crops
Thu 18 October 2012
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The European Commission has published important proposals to limit global land conversion for biofuel production and raise the minimum required GHG saving threshold for new installations to 60%. The proposals will also limit the use of food-based biofuels and include a promise to review the policy and scientific evidence on indirect land-use change (ILUC), which will take place in 2017. EU Climate Commissioner Connie Hedegaard called the proposals a clear signal that first-generation biofuels are “not the future in Europe”.
A European Commission spokesperson said that the new proposals aims to stimulate the development of alternative, second generation biofuels from non-food feedstock, like waste or straw, which emit substantially less greenhouse gases than fossil fuels and do not directly interfere with global food production.
The Commission is proposing to amend the current legislation on biofuels through the Renewable Energy and Fuel Quality Directives and to:
• Impose a 5% cap on the amount of crop-based biofuels in the EU’s 2020 transport mix;
• End public subsidies for biofuels after 2020 unless they can demonstrate “substantial greenhouse gas savings”;
• Quadruple credits for some second-generation biofuels, to provide production incentives;
• Introduce a 60% greenhouse-gas-saving threshold that will apply to new biofuels installations from 1 July 2014;
• Review the policy and scientific evidence on ILUC, which will take place in 2017.
The EC was reported to have backtracked on its initial leaked draft plans to introduce mandatory accounting for the indirect greenhouse gas emissions of specific feed-based biofuels under the Fuel Quality Directive. As a result, first-generation biofuels may still be counted towards meeting the EU’s separate target for a 6% reduction in fuel greenhouse gas emissions.
The EC's proposals were attacked by industry and environmental organisations. The biggest farming and biofuels associations expressed dissatisfaction with the Commission’s proposals.A large grouping of biofuels industry organisations said in a joint statement: “The EU farmers and biofuels industries remains steadfastly opposed to the European Commission’s proposal to limit biofuels made from certain arable crops and to add indirect land use change [ILUC] to the renewable energy and fuel quality directives.”
The REA's Head of Renewable Transport Clare Wenner said: “We are pleased to see that the European Commission has listened to industry’s concerns, which we have had to articulate under great pressure in a very short time frame. The decision not to implement mandatory ILUC factors until sufficient research has been carried out is welcome.
“However, the proposals to cap crop-based biofuels at 5% of transport and to withdraw support altogether after 2020 remain. These proposals constitute a wholesale withdrawal of political support from the Commission, and will deter the very investors that the Commission wants to invest in innovations for non-food advanced biofuels.”
The REA outlined five main areas of concern in a press release.
Imke Lübbeke, WWF’s senior renewable energy policy officer, said: “The biofuels proposal is only a half measure. It doesn’t reflect the urgent need to ensure the industry responsibly sources the right biofuels, so as to deliver greenhouse gas reduction. By proposing to cap the use of biofuels from food crops at 5% of final transport energy consumption by 2020, the European Commission is doing the right thing. The proposal will stop increasing the severe impacts on nature and people at large scale.”
“However, we are also concerned that the indirect climate impact of biofuels has not been taken into account. As a result, fuel suppliers will be free to continue blending biodiesel made from palm oil, soybeans and rapeseed into their fuels and claiming credit for cutting emissions despite evidence that the opposite can be true. Proper recognition of the significant and harmful environmental impacts of carbon emissions associated with biofuels is long overdue.”
Meanwhile, a leak of EU data reported by EurActiv says that greenhouse gas emissions from biofuels such as palm oil, soybean and rapeseed are higher than those for fossil fuels when the effects of Indirect Land Use Change (ILUC) are counted. The default values assigned to the biofuels compare to those from Canada’s oil sands – also known as tar sands – according to the figures, which EurActiv says should be released along with long-awaited legislative proposals on biofuels next spring.
Next steps in the RED/FQD proposals:
• 1 July 2014: New biofuels installations must meet a 60% greenhouse gas saving threshold
• 1 Dec. 2017: Biofuels installations in operation before 1 July 2014 must meet a greenhouse gas saving threshold of 35%
• 31 Dec. 2017: The Commission will submit a review of policy and best scientific evidence on ILUC to the European Parliament and Council
• 1 Jan. 2018: Biofuels installations in operation before 1 July 2014 must meet a greenhouse gas saving threshold of 50%
• 1 Jan. 2020: Deadline for 10% of EU's transport fuels to be sourced from renewable energies.
• 2020: European Commission will not support further subsidies to biofuels unless they can demonstrate "substantial greenhouse gas savings"
The LowCVP with member and industry stakeholders recently met with UK transport minister Norman Baker to discuss the process required to introduce E10 (10% bioethanol; 90% petrol) in the UK. Domestically produced ethanol has been shown to provide more reliable and verifiable greenhouse gas savings than product sourced otherwise. For more information, please contact the LowCVP Secretariat.
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