Brussels, 15/07/2008 (Agence Europe) - Growing international concern about the sustainability of biofuel is increasing the pressure on the EU's target of biofuel providing 10% of EU fuel consumption for transport by 2020 set out in the draft Renewables Directive. Meeting in Toyako, Japan, on 8 July 2008, G8 leaders tried to reach agreement on biofuel in the wake of the world food crisis and the spiralling cost of farm commodities. In order to ensure the compatibility of policies on the production and sustainable use of biofuel with food security, and to speed up the development and sale of second generation biofuels (in other words, biofuel made from non-edible plants or non-edible biomass or waste), they pledged to work together and with other partners to develop scientific criteria and indicators for the production and use of second generation biofuels. The week before, the International Monetary Fund (IMF) recommended a review of biofuel subsidies, particularly in the developed world, because first generation biofuels (made from food products) are not a competitive ecological alternative to fossil fuels in terms of price. In a report assessing the macroeconomic impact of high oil and food prices, the IMF notes that less ambitious biofuel policies that are more favourable to trade would make it possible to reduce pressure on food prices by cutting competition for farmland and resources. A month earlier, the OECD recommended a drastic cut in biofuel subsidy programmes to stem the rising farm commodity prices. These concerns and warnings at international level reflect growing concern at EU level.
As if to disguise a shared desire to go back on the target agreed by the March 2007 European Council, EU energy ministers at an informal meeting early in July decided, the chair of the meeting - French Minister Jean-Louis Borloo explained, that they had “discovered” that there are no binding targets for the development of biofuels in the plan to combat climate change unveiled by the European Commission in January 2008, but it is foreseen that renewable energy should provide 10% of fuel for transport in the EU by 2020 (see EUROPE 9698). The European Commission also reacted by pointing out that it had interpreted the 10% target to mean 10% of biofuels because they were a “realistic solution” for replacing oil. It said, however, that it was leaving the door open for other sources of energy, like hydrogen and electricity, as long as they are renewable, but would not accept electricity generated from nuclear power. In an opinion on the draft Renewables Directive adopted on 7 July 2008 (see EUROPE 9703), the European Parliament's environment committee called three days later for a review of the 10% target, suggesting it be replaced with a renewable energies target of between 8% and 10%, describing 8% as being more realistic. (E.H./transl.fl)