Archive

Chronicle of the policy debate on the amendment of RED / FQD (Directive (EU) 2015/1513)

EBTP Response to the ILUC Directive

The European Biofuels Technology Platform (EBTP) appreciates that the on-going debate about the biofuels legislation through the RED and FQD review is settled for now; this debate has caused many uncertainties and blocked many investment decisions for the past three years. However EBTP would like to comment on key elements of the final legislation:

The non-binding and double counted advanced biofuels target of 0.5% is not ambitious enough to foster the deployment of advanced biofuels. Member States have options to go below 0.5% and experience in the EU demonstrates that indicative targets are usually not achieved. A European wide and binding sub target is the most effective way to support innovative pathways. Innovative pathways are based on technologies with a high implementation potential and high well-to-wheel energy efficiency, but also high upfront development and demonstration costs, since they are not yet widely commercially available. By securing market demand, investments can be made in deployment.
The EBTP is in favour of the decision to maintain dedicated energy crops or the so-called “grassy energy crops with a low starch content” among the advanced biofuels feedstocks list. Dedicated energy crops provide best land-use efficiency, can be grown also on marginal or degraded land and are able to create additional income for farmers.

The cap of 7% on the contribution of biofuels from food crops is a political compromise that affects the healthy sustainable conventional biofuels industry in Europe. The vision for advanced biofuels industrialisation is related to the existing conventional biofuels industry where technical, operational and financial synergies exist with advanced innovative pathways. Capping all conventional biofuels without distinction is not providing the sector with reassurances that policy-makers can define objective and evidence-based biofuels policy in the future. However, the recognition of the concept of low ILUC risk conventional biofuels is a positive signal. The final ILUC directive is a first step towards a stable and consistent framework for biofuels in Europe. Howeverit is urgent to define a new biofuel policy post 2020. A coherent European approach on the development and implementation of legislation, policies, projects and programmes in the field of alternative transport fuels, contributing towards an energy-efficient, decarbonised transport sector is needed in order to address the key challenges faced by the transport sector in Europe in terms of GHG emissions and energy dependency. Sustainable biofuel technologies have a key role to play in addressing these challenges.

Process to reach the compromise agreement

In October 2012, the EC published a proposal to minimise the climate impact of biofuels, by amending the current legislation on biofuels through the Renewable Energy and the Fuel Quality Directives. In particular, the proposals suggest:

To increase the minimum greenhouse gas saving threshold for new installations to 60% in order to improve the efficiency of biofuel production processes as well as discouraging further investments in installations with low greenhouse gas performance.
To include indirect land use change (ILUC) factors in the reporting by fuel suppliers and Member States of greenhouse gas savings of biofuels and bioliquids;
To limit the amount of food crop-based biofuels and bioliquids that can be counted towards the EU's 10% target for renewable energy in the transport sector by 2020, to the current consumption level, 5% up to 2020, while keeping the overall renewable energy and carbon intensity reduction targets;
To provide market incentives for biofuels with no or low indirect land use change emissions, and in particular the 2nd and 3rd generation biofuels produced from feedstock that do not create an additional demand for land, including algae, straw, and various types of waste, as they will contribute more towards the 10% renewable energy in transport target of the Renewable Energy Directive.

pdf icon EBTP comments on the RED / FQD Review - a consensus of comments made by members of EBTP Working Group 4 Policy and Sustainability as well as members of the EBTP Steering Committee.

On 12 December 2013 the European Council failed to reach an agreement on a compromise proposal put forward by the Lithuanian Presidency, based on a 7% cap on conventional biofuels. This meant no decision was possible before the European Parliamentary elections in May 2014, and is now unlikely to be made before the end of 2014.

On 11 September 2013 a narrow majority of MEPs voted that "first generation" biofuels should not exceed 6% of the final energy consumption in transport by 2020, as opposed to the current 10% target in existing legislation, while advanced biofuels should represent at least 2.5% of energy consumption in transport by 2020. The MEP vote also endorsed double-counting of biofuels produced from UCO or animal wastes and a minimum 7.5% limit of ethanol in gasoline. Finally, they decided to include an iLUC factor in the Fuel Quality Directive methodology as of 2020. Rapporteur, Ms Lepage, was two votes short of receiving a mandate to negotiate with member states, who then failed to reach a common position of their own in December 2013 (as described above).

Since December 2013, the Council's preparatory bodies continued to work further on the proposal, with a view to facilitating political agreement, which was reached in June 2014 (as outlined above).

The ongoing uncertainty in European biofuels policy from 2012-2014 deterred investment in the industry, making it harder for demonstration and flagship plants to secure the funding needed for commissioning. This potentially puts on hold the creation of 1000s of new jobs in the European Bioeconomy. The barriers to investment in advanced biofuels are highlighted in a report by Agra CEAS Consulting, published in December 2013, EU Biofuels Investment Development: Impact of an Uncertain Policy Environment.

On 9 December 2014, the Transport, Telecommunications and Energy Council adopted without debate its first-reading position on the "draft Directive on indirect Land-Use Change", which amends the Fuel Quality Directive and Renewable Energy Directive. The European Parliament iniially adopted its first reading position on 11 September 2013. In December 2013, the Energy Council examined a presidency compromise text of this draft directive. However, there were still some outstanding issues. Therefore, the Council's preparatory bodies continued to work further on the proposal, with a view to facilitating political agreement, which was reached in June 2014.
See: Proposal for a Directive of the European Parliament and of the Council amending Directive 98/70/EC relating to the quality of petrol and diesel fuels and amending Directive 2009/28/EC on the promotion of the use of energy from renewable sources (first reading) - Political agreement

See also: Correction to the above document (this affects a single sentence).

Process to reach the compromise agreement on amendment of the RED

To increase the minimum greenhouse gas saving threshold for new installations to 60% in order to improve the efficiency of biofuel production processes as well as discouraging further investments in installations with low greenhouse gas performance.
To include indirect land use change (ILUC) factors in the reporting by fuel suppliers and Member States of greenhouse gas savings of biofuels and bioliquids;
To limit the amount of food crop-based biofuels and bioliquids that can be counted towards the EU's 10% target for renewable energy in the transport sector by 2020, to the current consumption level, 5% up to 2020, while keeping the overall renewable energy and carbon intensity reduction targets;
To provide market incentives for biofuels with no or low indirect land use change emissions, and in particular the 2nd and 3rd generation biofuels produced from feedstock that do not create an additional demand for land, including algae, straw, and various types of waste, as they will contribute more towards the 10% renewable energy in transport target of the Renewable Energy Directive.

pdf icon EBTP comments on the RED / FQD Review - a consensus of comments made by members of EBTP Working Group 4 Policy and Sustainability as well as members of the EBTP Steering Committee.

Since December 2013, the Council's preparatory bodies continued to work further on the proposal, with a view to facilitating political agreement, which was reached in June 2014 (as outlined above).

Emission performance standards for new passenger cars

Regulation (EC) No 443/2009, amended in Regulation (EU) No 333/2014, sets emission standard targets for new passenger cars in the EU:

130 g/120 g CO₂/km limit for new cars in 2012 (10 g by additional measures)
Limit of 95 g CO₂/km in 2020
Step by step approach; bonus for eco innovations
% bonus for E85 cars until Dec 2015 if sustainable E85 is available at least at 30 % of all filling stations of the Member State where the car is registered.

Directive on deployment of alternative fuels infrastructure

On 29 September 2014, New EU rules were adopted to ensure the build-up of alternative refuelling points across Europe with common standards for their design and use, including a common plug for recharging electric vehicles. Member States must set and make public their targets and present their national policy frameworks by end-2016. See Directive on the deployment of alternative fuels infrastructure 2014/94/EU (also known as the CPT Directive).

Based on the consultation of stakeholders and national experts, as well as the expertise reflected in the Communication from the Commission of 24 January 2013 entitled ‘Clean Power for Transport : A European alternative fuels strategy’, electricity, hydrogen, biofuels, natural gas, and liquefied petroleum gas (LPG) were identified as currently the principal alternative fuels with a potential for long-term oil substitution, also in light of their possible simultaneous and combined use by means of, for instance, dual-fuel technology systems.

New rules on state aid for biofuels 2014-2020 (April 2014)

In April 2014, the EC introduced new guidelines on state aid for environmental protection and energy, including renewable energy and biofuels.

Press release summarising main points: Commission adopts new rules on public support for environmental protection and energy

Full guidelines: Guidelines on State aid for environmental protection and energy 2014-2020

Commission Vice President in charge of competition policy, Joaquín Almunia, said, "The new guidelines provide a framework for designing more efficient public support measures that reflect market conditions, in a gradual and pragmatic way. Europe should meet its ambitious energy and climate targets at the least possible cost for taxpayers and without undue distortions of competition in the Single Market."

In relation to biofuels, the guidelines state:

(112) In view of the overcapacity in the food-based biofue l market, the Commission will consider that investment aid in new and existing capacity for food-based biofuel is not justified. However, inve stment aid to convert food-based biofuel plants into advanced biofuel plants is allowed to cover the costs of such conversion. Other than in this particular case, investment aid to biofuels can only be granted in favour of advanced biofuels.

(113) Whilst investment aid to support food-based biofuel will cease with the entry into force of these Guidelines, operating aid to food-based biofuels can only be granted until 2020. Therefore such aid can only be granted to plants that started operation before 31 December 2013 until the plant is fully depreciated but in any event no later than 2020.

(114) In addition, the Commission will consider that the aid does not increase the level of environmental protection and can therefore not be found compatible with the internal market if the aid is granted for biofuels which are subject to a supply or blending obligation, unless a Member State can demonstrate that the aid is limited to sustainable biofuels that are too expensive to come on the market with a supply or blending obligation only.

'sustainable biofuel' means a biofuel fulfilling the sustainability criteria set out in Article 17 of Directive (EC) 2009/28 of the European Parliament and the Council on the promotion of the use of energy from renewable sources and any amendment thereof.

Archive Legislation

Some previous legislative and related documents are listed below. The entries are divided into the following sections:

Fuels
Vehicles
Markets

Fuels

COM(2007) 18 . Proposal, of 31 January 2007, for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directive 98/70/EC as regards the specification of petrol, diesel and gas-oil and the introduction of a mechanism to monitor and reduce greenhouse gas emissions from the use of road transport fuels and amending Council Directive 1999/32/EC, as regards the specification of fuel used by inland waterway vessels and repealing Directive 93/12/EEC - download (PDF 88Kb)

Opinion of the European Economic and Social Committee on The development and promotion of alternative fuels for road transport in the European Union OJ C 195, 18.8.2006

COM 2003/30/EC ("Biofuels Directive") of the European Parliament and of the Council of 8 May 2003 on the promotion of the use of biofuels or other renewable fuels for transport Official Journal L 123, 17/05/2003 P. 0042 - 0046

COM/2001/0547 final Communication from the Commission to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions on alternative fuels for road transportation and on a set of measures to promote the use of biofuels

COM(2001) 547 final: Communication of the European Commission of 07/11/2001 on an Action Plan and two Proposals for Directives to foster the use of Alternative Fuels for Transport, starting with the regulatory and fiscal promotion of biofuels

Directive 98/70/EC of the European Parliament and of the Council of 13 October 1998 relating to the quality of petrol and diesel fuels and amending Council Directive 93/12/EEC OJ L 350, 28.12.1998, p. 58–68

Commission Directive 87/441/EEC of 29 July 1987 on crude-oil savings through the use of substitute fuel components in petrol OJ L 238, 21.8.1987, p. 40–41

Vehicles

Opinion of the Committee of the Regions on the Proposal for a Directive of the European Parliament and of the Council on the promotion of clean road transport vehicles OJ C 229, 22.9.2006, p. 18–21

Directive 98/69/EC of the European Parliament and of the Council of 13 October 1998 relating to measures to be taken against air pollution by emissions from motor vehicles and amending Council Directive 70/220/EEC, OJ L 350, 28.12.1998, p. 1–57

Markets

Council Directive 2003/96/EC of 27 October 2003 restructuring the Community framework for the taxation of energy products and electricity (Text with EEA relevance) OJ L 283, 31.10.2003, p. 51–70

2003/238/EC: Commission Decision of 15 May 2002 on the aid scheme implemented by France applying a differentiated rate of excise duty to biofuels (notified under document number C(2002) 1866) Official Journal L 094 , 10/04/2003 P. 0001 - 0042

2002/550/EC: Council Decision of 27 June 2002 authorising the United Kingdom to apply a differentiated rate of excise duty to fuels containing biodiesel in accordance with Article 8(4) of Directive 92/81/EEC OJ L 180, 10.7.2002, p. 20–21

Commission Regulation (EC) No 2546/95 of 30 October 1995 amending Commission Regulation (EC) No 3199/93 on the mutual recognition of procedures for the complete denaturing of alcohol for the purposes of exemption from excise duty OJ L 260, 31.10.1995, p. 45–46.

'Anti-dumping' duties

As of 27 November 2013 the EU will impose definitive anti-dumping duties on imports of biodiesel from Argentina and Indonesia. The antidumping measures consist of an additional duty of on average 24.6% for Argentina and 18.9% for Indonesia. The measures are based on a decision taken this week by the Council, following a 15-month investigation carried out by the European Commission. It revealed that Argentine and Indonesian biodiesel producers were dumping their products on the EU market. The dumped exports had a significant negative effect on the financial and operational performance of European producers.

COMMISSION REGULATION (EC) No 193/2009 imposing a provisional anti-dumping duty on imports of biodiesel originating in the United States of America

EC procedure started 13 June 2008 on initiative of
European Biodiesel Board
Background: subsidies for B99 in the US
Anti-dumping and countervailing duties approved on 11 Mar 2009 and published 12 Mar 2009 (EC 193 and 194/2009), differentiated by producer
Anti dumping duty 23.6-208.2 €/t
Countervailing duty 211.2-237.0 €/t

Joint input to SET Plan governance discussion from four ETPs and EUREC

On 18 March 2015 the European Commission presented to the SET Plan Steering Group the first draft of its proposals for reforming the governance of the SET Plan. In meetings with European Technology Platforms (ETPs) in renewable energy in the weeks that followed, EUREC offered to draft a joint reaction to the EC’s proposals, and they accepted the proposal.

The emerging joint EUREC-ETP consensus was discussed with the European Commission on 8 June in a meeting between the EC and representatives from EUREC and the ETPs. Five main messages (see below) were sent two days later, with a full-length paper being sent to the EC and national delegates to the SET Plan Steering Group on 31 August. The final paper was signed by the ETPs EU PV TP, RHC-Platform, EBTP and ETP-Smart Grids, as well as EUREC. [Souce: EUREC website October 2015].

LINKS

EU Strategy for Biofuels (2006)

Emission performance standards for new cars

Climate Change: 2050 - the future begins today