Brussels, 07/02/2006 (Agence Europe) - As announced, the European Commission adopted, on 8 February, a strategy for promoting greater use of biofuels in the EU (EUROPE 9119). It above all suggests reviewing the provisions of the May 2003 directive on biofuels, calling on industry not to oppose the introduction of biofuels on the market, and developing the supply of Community raw materials while safeguarding imports. This initiative completes the biomass action plan presented last December.
According to EurObservER estimates, the EU's production of biofuels amounted to 2.4 million tonnes (t) in 2004: 0.5 million tonnes of bioethanol and 1.9 million tonnes of biodiesel. The EU is the main region of the world for the development of biodiesel. Germany is the largest biodiesel producer in the EU, with 1.035 million tonnes (in 2004), well ahead of France (348,000 t), Italy (320,000 t), Denmark (70,000 t), the Czech Republic (60,000 t) or Austria (57,000 t). Estimates show that the EU's biodiesel production capacity should reach between 3.8 and 4.1 million tonnes mid-2006.
Spain is the EU's leading bioethanol producer with 194,000 t in 2004, ahead of France (102,000 t), Sweden (52,000 t), Poland (36,000 t) and Germany (20,000 t). According to the estimates available to the Commission, bioethanol production was to exceed one million tonnes in 2005 and production capacity may triple by the end of 2007. In 2004, world bioethanol production for fuel purposes was by way of 30 billion litres, i.e. around 2% of global petrol use. World production is expected to increase by 11% in 2005. The leading bioethanol producer is Brazil (sugar cane) but the United States may soon overtake. The Commission specifies that a number of ACP countries are contemplating diversifying their activities to produce bioethanol but admits that such countries would find production difficult at competitive prices. These ACP countries are exploring biofuels options with the help of EU Member States. One example of this is a successful partnership between a Danish laboratory and the University of Dar es Salaam, in Tanzania. Feasibility studies are being carried out on using cotton oil as biodiesel in Brazil and West Africa.
The biofuels strategy presented by the Commission comprises seven fields of action:
Stimulating demand for biofuels: The Commission will bring forward a report in 2006 with a view to a possible revision of the Biofuels Directive, which sets “reference values” of a 2% market share for biofuels in 2005 and a 5.75% share in 2010. The 2005 objective was not met, with the share of biofuels reaching 1.4% at best. The Commission's report, which could result in legislative proposals, will above all cover national targets of market share for these products and the possibility of making their use compulsory.
Capturing environmental benefits: The Commission will assess the extent to which biofuels may help to reach CO2 emission reduction targets for vehicles. It will asses the feasibility of a sustainability assurance (certification) scheme for biofuel feedstock cultivation in the EU and third countries.
Developing production and distribution: The Commission plans to set up a group of experts responsible for assessing the possibilities provided by biomass and biofuels in the context of national rural development programmes. It also plans to call on the industries concerned to provide a technical justification for practices that hinder the introduction of biofuels onto the market, contemplating the monitoring of company behaviour in order to prevent discrimination towards these products.
Expanding feedstock supplies: Reform of the sugar sector, decided last November, aims to make sugar production for bioethanol eligible for both the non-food regime on set-aside land and the energy crop premium (45 euros per hectare over a surface area of maximum 1.5 million ha). Reform of the sugar sector also confirmed the need not to limit, with quotas, beetroot produced for bioethanol production. By the end of the year, the Commission will analyse the way the aid regime for energy crops is working.
The Commission hopes, moreover, to study the possibility of transforming larger quantities of intervention cereals into biofuels. Such a measure would make it possible to reduce the amount having to be exported without refund.
Before the end of the year the Commission will present a forestry action plan in which energy uses of forest material will play an important role. It will analyse to what extent organic waste from the paper industry, animal fats and recycled cooking oils could be used as energy resources.
Enhancing trade opportunities: the Commission favours maintaining Community market access conditions for imported bioethanol that are no less favourable than those provided by trade agreements currently in force, also taking into account the problem of preference erosion. It also intends to put forward proposals to amend standards on biodiesel to facilitate the use of a wider range of vegetable oils in its production and to allow ethanol to replace methanol in the production of biodiesel.
Supporting developing countries: the Commission will ensure that accompanying measures for ACP countries affected by sugar sector reform in Europe can also be used to develop the production of bioethanol in these countries.
Supporting research: the Commission will continue to encourage technological development and considers that high priority should be given to research into the “bio-refinery” concept - finding uses for all parts of the plant - and into second-generation biofuels.