Brussels, 21/09/2012 (Agence Europe) - In mid-October, the European Commission will unveil draft legislation to change the Renewables and Fuel Quality Directives to take account of the impact of indirect land-use changes (ILUC) on CO2 emissions from the production of biofuel.
After two years of talks, the Commission has drawn up draft legislation to take account of the impact of indirect land-use changes on greenhouse gas emissions from the production of biofuel. In order for the EU to reach its two climate change targets for 2020 - cutting CO2 by 20% and increasing the proportion of renewable energy in transport to 10% - the Commission wants to shift the emphasis from first generation biofuels (burning food, basically) to second generation biofuels generated from waste, seaweed or specially grown crops.
Two European Commission departments have been given responsibility for drawing up the legislation. DG Climate wants strong penalties to apply to first generation biofuels, but DG Energy wants less binding measures to avoid damaging European industry. The two departments have managed to strike a compromise, and the draft legislation (still being discussed by the two departments) will be submitted to the College of Commissioners in October, before being submitted to the European Parliament and Council of Ministers. It will suggest that the proportion of energy generated by first generation biofuels (which is already nearly 4.5%) should be capped at 5% of final energy consumption in transport by 2020. In order to achieve the 10% share of biofuel for transport by 2020, the Commission suggests greater financial incentives for fuels generating little or no ILUC emissions. In the post-2020 period, the Commission promises to phase out all public subsidies for biofuel generated from edible sources.
In order to cap first generation biofuels at 5% of final energy consumption for transport, the Commission suggests tightening emissions rules, starting with the introduction of ILUC penalties, which will have a huge impact on biodiesel but will not affect bioethanol from maize, beet and wheat. Later, the reduction in greenhouse gases required for biofuels over their hydrocarbon equivalents will be raised from 35% at present to 60%. This would only apply to plants coming on stream after 1 July 2012. For plants already in place, the 35% reduction will continue to apply until 2018, when it will rise to 50%. (EH/transl.fl)