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Europe Daily Bulletin No. 11098
SECTORAL POLICIES / (ae) energy

Ministerial biofuels and ILUC agreement expected

Brussels, 11/06/2014 (Agence Europe) - On Friday 13 June, the European energy ministers are expected to approve the agreement, tied up by the EU28 ambassadors on 28 May, on the compromise proposed by the Greek Presidency to take account of the indirect land use change (ILUC) in the sustainability criteria of biofuels. The issue of Ukraine's security of supply in Russian gas and the transit of Russian gas through Ukraine to the EU will be discussed over lunch - as will the Italian-Russian gas pipeline project, South Stream.

Biofuels/ILUC. The second Energy Council under the Greek Presidency of the Council of Ministers of the EU will try to tie up a political agreement on the thorny draft directive on ILUC, amending Directives 98/70/EC on fuel quality and 2009/28/EC on the promotion of renewable energy. The new text aims to limit the impact of ILUC on greenhouse gas emissions, while protecting current investment in the production of biofuels. As in the compromise tabled by the Lithuanian Presidency in 2013 - on which the Council was not at that time able to find agreement - the text provides for a 7% cap on the share of first generation biofuels, with the target of 10% renewables in fuel consumption in transport by 2020. The Greek Presidency compromise included a binding sub-target of at least 0.5% advanced biofuels production in 2020, including possible derogations (see EUROPE 11092).

Energy policy. The ministers will discuss the follow-up to the European Council meeting in March. European Commissioner for Energy Günther Oettinger will present the delegations with a report on the completion of the internal energy market, as well as the Commission's new strategy to ensure the EU's energy supply and to reduce its dependence on other countries - a strategy that was presented on 28 May (see EUROPE 11090). Lastly, the ministers will have a policy debate on the action framework for the 2030 energy and climate policy, on the basis of a draft tabled by the Commission in January (see EUROPE 11002) and discussed by the European Council in March (see EUROPË 11044). The Council is also due to adopt conclusions on the prices and costs of energy and the protection of vulnerable consumers and competitiveness, following the Commission's communication on this in January (see EUROPE 11002).

Multilateral frameworks. The Greek Presidency and the Commission will inform the Council of the latest developments in external energy relations, and the Council will hold a policy debate on the importance of multilateral frameworks (the Energy Community, the Energy Charter Treaty, the International Energy Agency - IEA, and cooperation in the Mediterranean). (EH)

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