EU agrees deal to cap production of food-based biofuels

Green transport news – by GreenWise staff
16th June 2014
A European political stalemate that has been blamed for stopping investment in the biofuels industry for almost two years appeared to have been lifted on Friday when European Ministers agreed to set a cap on the use of food-based biofuels in transport fuel.
The agreement by the EU Energy Council sees several measures to incorporate ‘indirect land use change’ (ILUC) into EU biofuels policies, including setting a seven per cent limit on transport energy from biofuels produced from food crops, such as maize or rapeseed. Last year, EU Ministers failed to agree a proposed five per cent cap on the use of biofuels based on food crops.

Biofuels are seen a critical to Europe reaching its renewable transport energy target of 10 per cent by 2020, but concerns are growing over the un-intended consequences of growing biofuel crops – research has shown they displace other food crops, pushing up food prices, and in some instances increasing carbon emissions. Currently around five per cent of EU transport fuel comes from renewable sources.

More research in advanced biofuels
European Energy Commissioner Guenther Oettinger said that Friday’s deal meant more research and development would go into advanced biofuels, which instead of food crops are made from sources such as waste and algae.

“We think this proposal is much better than nothing,” Reuters reported the Commissioner as saying.

As well as the seven per cent cap on biofuels made from food crops, Friday’s compromise includes mandatory report of ILUC factors for crop-based biofuels, multiple counting of transport energy sources towards EU renewable transport target and overall renewable energy targets, and a target of 0.5 per cent transport energy from advanced biofuels.

“Saga” drawing to a close
The Renewable Energy Association (REA), which represents those working in the UK biofuels industry, welcomed Friday’s deal, saying it effectively brought to a close “almost two years of investment-blocking policy paralysis in the low carbon fuels sector” and cleared the path for the UK Government to set out domestic biofuels policies to 2020.

“This is a compromise that will frustrate parties on both sides of the debate, but the overriding feeling is one of relief that the ILUC saga is finally drawing to a close,” REA Chief Executive Dr Nina Skorupska said.

“Our members and stakeholders have grappled with this issue for several years, when they would rather have been focusing their efforts on creating jobs in sustainable biofuel production. We urge the Government to get its own house in order now so that the transport sector can get the low carbon momentum back on track and catch up with the progress being made in renewable heating and electricity. “

The agreement reached on Friday by the European Energy Council now needs to be voted on by Ministers in the new European Parliament before becoming law.

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EU agrees deal to cap production of food-based biofuels
EU Ministers have set a seven per cent limit on transport energy from biofuels produced from food crops