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Europe Daily Bulletin No. 10860
SECTORAL POLICIES / (ae) energy

Second ministerial ILUC examination at Council

Brussels, 05/06/2013 (Agence Europe) - The second Energy Council under the Irish Presidency of the Council of Ministers in Luxembourg on 7 June will again examine the draft directive on Indirect Land Use Change (ILUC).

Biofuels. European energy ministers will debate the complex draft text for a second time. This was proposed by the Commission in October 2012 and seeks to toughen up requirements on carbon emissions from biofuel production and cap first-generation biofuel emissions from agricultural crops: draft directive on Indirect Land Use Change, which will amend the “renewables” directive, 2009/28/EC, and the directive on petrol quality, 1998/70/EC (see EUROPE 10712). These texts frame, respectively, the promotion and use of biofuels in the EU setting out a 10% renewables benchmark in energy consumption in the transport sector by 2020, and fuel quality, setting a benchmark of 6% in the reduction of CO2 emissions and fuels used in the transport sector by same year.

The Irish Presidency will present a progress report with a view to a common Council position. Overall, member states support the aim of combating global indirect land use change resulting from the production of biofuels that compete with human food and animal feed production. Nonetheless, many delegations are concerned by a change in policy that could create uncertainty for investors, compromise existing investment and make the achievement of EU objectives on renewables more costly and difficult. The report covers the main themes tackled in the working group, particularly the 5% threshold for conventional biofuels, ILUC factors, treatment of new installations, the bonus for degraded land, preventing fraud, the revision clause and delegated acts.

Internal market. The Council will adopt conclusions on the Commission communication adopted in November 2012 on the functioning of the internal energy market (see EUROPE 10731). These conclusions outline an approach devised for completing integration of the internal market and meeting the 2014 and 2015 deadlines, as well as improving the position of consumers and their rights.

Energy and innovative technologies. Ministers will also hold a policy debate on the Commission communication adopted on 2 May, which will inform the ongoing rethink on R&D and innovation priorities in the energy sphere up until 2020 and beyond, as well as the ways to support implementation of these priorities. The Presidency has focused discussion on the question of the validity of the 2008 European strategy for developing energy technologies and the SET Plan.

International relations. Finally, the Council will be briefed on the most recent developments, including EU-Russia relations, the International Energy Agency, the fourth ministerial meeting on clean energy, the Southern Gas Corridor and the EU-Algeria protocol for an energy agreement. (EH/transl.fl)

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EXTERNAL ACTION
SECTORAL POLICIES
INSTITUTIONAL
ECONOMY - FINANCE - BUSINESS