Brussels, 07/05/2012 (Agence Europe) - The Commission has not yet settled the matter of the impact on greenhouse gas emissions of indirect land-use change (ILUC) associated with increased biofuel production. Three options, each more or less unfavourable to biofuels, are on the table, the major problem relating to bio-diesel which, depending on the arrangements that obtain, may no longer be considered a renewable energy.
Caught between the target set by the renewable directive of green energy providing 20% of the EU's primary energy generation by 2020 (and 10% in transport) and the requirement in the renewables and fuel quality directives (the latter making provision for a 6% reduction in greenhouse gas emissions from transport by 2020) that, in order to be considered as renewables, biofuels must reduce greenhouse gas emissions by 35% compared with the fossil fuel they replace, the European Commission is having difficulty in resolving the thorny issue of how to take account of ILUC in assessing how biofuels are doing on the carbon count. This requirement is proving very difficult to satisfy for biodiesel which, unlike ethanol, is largely produced within the EU and is one of the main ways of achieving the 10% renewables target in the EU transport sector.
Called on by the Council and the European Parliament to bring forward a legislative proposal which takes account of the impact of ILUC on the greenhouse gas emissions of biofuels, the Commission was unable to reach a decision at its meeting on 2 May and discussions continue. Three options are on the table. The first, supported by Commissioners Günther Oettinger (energy), Karel De Gucht (trade), Antonio Tajani (industry) and Michel Barnier (internal market) suggests increasing the level of greenhouse gas reduction by biofuels compared with fossil fuels to 60%, rather than the 35% as at present. This option would mean that European biodiesel, made from rapeseed, would remain sustainable, but would rule out biodiesel made from palm oil or soy bean. The second option, which has the backing of Commissioners Connie Hedegaard (climate) and Janez Potocnik (environment), proposes the introduction of a sustainability criterion linked to ILUC for biofuels, calculated on the basis of the International Food Policy Research Institute (IFPRI) model. This would virtually rule out biodiesel from being considered a renewable energy. The third option, a compromise between the two previous possibilities, proposes increasing the greenhouse gas emissions reduction requirement to 60% compared with fossil fuels while at the same time bringing in penalties related to ILUC for biofuels. Commission President José Manuel Barroso has asked Commissioners Oettinger and Hedegaard to bring forward papers as speedily as possible. (EH/transl.rt)