Brussels, 17/10/2013 (Agence Europe) - On 16 October, the European Commission found that a 12-month phase-out of excise duty reductions granted by Belgium to seven biofuel producers was in line with EU state aid rules. In 2005, Belgium adopted a biofuel support scheme reducing excise duties for a limited number of bioethanol and FAME producers, to be selected through a call for applications based on environmental and economic parameters. The seven producers, who were selected in 2006 following a call for applications, will continue to benefit from the reduction until 30 September 2014 for a limited volume of biofuels, so as to ensure a smooth transition towards a new biofuel support scheme to be put in place in 2014. The new scheme that will be notified to the Commission before the end of 2013 will promote the production of particularly sustainable biofuels. The Commission approved the scheme for a duration of six years, which expired on 30 September 2013. In 2012, Belgium applied for a prolongation until 2019 of the initial scheme. However, since the organisation of the call for application in 2006, the biofuel market has evolved, with Belgium introducing a supply obligation in 2009 and the Commission adopting Directive 2009/28/EC on renewable energy, which contains specific sustainability criteria for biofuels. The phasing-out period will give Belgium the time needed to set up the new scheme and at the same time allow the sector to adapt to the new situation. (FG/transl.fl)