On 31 March, the European Commission approved an Italian measure supporting the production and distribution of advanced biofuels, in particular advanced bio-methane.
This regime, with an indicative envelope of €4.7 billion over the period 2018-2022, will take the form of a premium to producers, to allow them to cover the additional costs linked to the production of biofuels and bio-methane, which are higher than those required for the production of fossil fuels. This premium, which will be re-examined every year to ensure that producers are not overcompensated, may also be increased in the event of investments to improve the distribution and liquefaction of advanced bio-methane.
The Commission also noted that this regime would encourage farmers to produce advanced biofuels and bio-methane from their activity, to run machinery and agricultural vehicles.
As to the financing, this will be provided by retail fuel sales companies for use in transport.
The Commission examined the regime in light of the 2014 guidelines on state aid for environmental protection and energy. Having found that it would help Italy to achieve the environmental objectives it has set itself for 2020, it concluded that the measure is compatible with EU state aid rules. (Original version in French by Lucas Tripoteau)