Brussels, 08/04/2008 (Agence Europe) - Berlin's rejection of massive biofuel development comes as a serious warning for the Community's green fuel policy, based on the mandatory target, as agreed by the European Council in 2007, of including 10% of biofuels in total fuel consumption for the transport sector in each member state by 2020. While the general results of biofuels are increasingly challenged at the international level, the EU pursues its course and the Council is currently examining the question of biofuel sustainability. Several sources, however, confirm that, given the growing concern over the impact of biofuel development, it is not to be ruled out that, in Council as in other Commission DGs, the target figures will be reviewed downward.
Germany has given up one of the pillars of its environmental policy. German Environment Minister Sigmar Gabriel announced, on Friday 4 April, that a flagship measure for developing biofuels would be abandoned. “We underestimated the problem”, he admitted. Such an avowal condemns his E10 blend fuel project, whereby the proportion of ethanol in traditional petrol would have been increased from 5 to 10% in 2009 (and to 20% in 2020) in order to reduce CO2 emissions. According to a study by the German car importers' federation (VDIK) published the same day, nearly 3.3 million vehicles, i.e. 30% of the foreign vehicles in Germany, are unable to use the E10 blend which, as it is more corrosive than traditional fuel, could prematurely wear out some engine parts and which is unsuitable for vehicles of over 15 years old. Mr Gabriel had pledged to give up his project if the number of vehicles not adapted exceeded one million. The project was, moreover, under fire from criticism voiced by environmental associations such as Greenpeace, which denounce the conditions in which the colza and soya essential for biofuels are grown, and by the powerful German automobile club (ADAC), which fears extra cost for consumers. Although such a rebuff is to the detriment of Berlin's environmental policy, which was to go further and faster than the EU when it comes to combating climate change, Mr Gabriel nonetheless reaffirmed his commitment in favour of a strategy that aims to reduce Germany's CO2 emissions by 40% (compared to 20% for the EU) by 2020. In his view, this target is plausible if the share of renewables in electricity production rises to 30% by 2020 against 27.5% initially foreseen. For transport, Mr Gabriel wants to be able to count on 2nd generation biofuels which are more performant and which are needed by the Germany industry to meet the aim of 120 grams of CO2 emitted per kilometre.
The previous day, in Austria, political parties, automobile clubs and environmental activists called on the government to reconsider its decision to double the proportion of biofuels in traditional fuels from 2010. The automobile clubs consider there are 400,000 vehicles using petrol that are not adjusted to using fuel with 10% ethanol. The Greens, for their part, evaluate at 700,000 hectares the additional surface area that should be devoted to producing biofuels in order to reach the target set.
Generally speaking, the results achieved by biofuels are increasingly challenged at the international level. There are more and more studies which conclude that the use of cereals for producing biofuels is pushing world food prices upwards and contributing to deforestation and the disruption of ecosystems. The OECD warns that first generation biofuels (biodiesel and bioethanol) from food crops used for energy production are not competitive without strong government support, and that the push in their favour creates unbearable strain that influences the markets. It also stresses that second generation biofuels (from plant waste) is the subject of priority research. The FAO, for its part, recommends that biofuels should not be produced in regions that are vulnerable when it comes to food safety or water sources.
The EU holds firm its policy course. Within an ad hoc working group, the Council is currently looking at the question of biofuel sustainability for biofuels produced and imported into the EU, in order to develop criteria on which two legislative texts may be based: the directive on fuel quality and the directive on renewable energies for implementation of the 10% objective. The Commission suggests that, in order to be taken into consideration in the 10% objective of a member state, a biofuel should bring about greenhouse gas emissions savings of at least 35% compared to fossil fuels. In a draft compromise, the Slovenian EU Presidency suggests going further than this to prevent producers from investing too massively in first generation biofuels that have a low CO2 output. The fixing of a higher percentage is the subject of negotiation in the Council where some member states demand a threshold of 50-60%. The Slovenian compromise is based on a two-stage approach consisting of setting a first 35% threshold that will then be increased proportionally.
It remains that, given the growing concerns about the consequences of biofuel development, several voices are being heard in the Council and in a number of DGs at the Commission to review the 10% target downward. The Slovenian Presidency itself does not rule this out. And the Italian prime minister, Romano Prodi, has on several occasions publicly called for such an in-depth review. (E.H.)