Decision on future European biofuels policy delayed until 2015
Fri 18 October 2013
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A decision on the future of biofuels in Europe was delayed at an October 17 meeting of the Environment Committee of the European Parliament. The Committee voted against allowing negotiations with member states on a draft law to cap the use of food crop-based biofuels and measure indirect emissions arising from production from 2020. This means that a decision on future biofuels legislation is now unlikely to be reached before 2015.
The development was described as "bad news for industry and investors" by some companies across the sector. However, delay was the preferred outcome of the ENVI meeting for some associations representing the biofuels supply chain in Europe who wrote to European Parliamentarians before the vote to urge them to reject the request to begin early second reading negotiations.
The difference in opinion across the industry revolved mainly around how policy makers should deal with the issue of indirect land-use change (ILUC).
MEP Corinne Lepage, rapporteur of the biofuels draft law, was hoping to start a fast-tracked second-reading procedure, arguing the overwhelming majority of industry stakeholders want "a quick result" that could deliver policy certainty prior to next year's European elections.
The proposal split the biofuels industry. Earlier in October, Danish company Novozymes, BA, DONG Energy, WWF and NGO Transport & Environment were among 15 companies and NGOs calling on the EU to start early second-reading negotiations in the hope of delivering a "sustainable, lasting, and stable policy framework for the biofuels industry" before the elections in May 2014.
However, fast-tracked negotiations were strongly opposed by conventional biofuel producer groups, who would be most affected by new rules requiring firms to calculate ILUC emissions arising from deforestation, draining of peatlands and other land clearance for biofuels.
Six industry bodies argued the science underpinning ILUC calculations is too imprecise to be used to underpin legislation and urged Council representatives to reject a second reading, arguing "no hasty decisions" should be made because of time pressure before May 2014 and that EU institutions needed time for "a healthy debate ... before reaching definitive conclusions".
The move was welcomed by Raffaello Garofalo, secretary general of the European Biodiesel Board (EBB). He said: "After the publication of up to date authoritative studies on ILUC a widening range of decision makers supports a more prudent and open-minded approach.
"Even MEPs close to Ms Lepage realised that early second reading would not have provided sufficient time to assess the relevance of science used in policy."
But some companies and campaigners said that the EBB and the rest of the conventional biofuels lobby has been engaging in stalling tactics because the status quo works to their benefit.
Business Green reported that Kåre Riis Nielsen, director of European affairs at Novozymes, who said the ENVI decision was "bad news for industry and investors who need clarity".
"Once again policy-makers are delaying decision-making on ILUC," he added. "Ongoing regulatory uncertainty is jeopardising all the parallel EU efforts to attract much needed investments in innovative renewable energy technologies, including in advanced biofuels.
"Despite the absence of mandate, we are urging Member States to continue the negotiations on the ILUC proposal and finalise their 1st reading position before the end of the Lithuanian Presidency."
Note: On 16 October 2013, the Transport & Tourism Working Group of the European Parliament Intergroup hosted a workshop to discuss the issue of biofuels for the transport sector, in light of its recent developments at the European policy level. This occasion brought together key policy-makers and experts from DG Energy, the European Biofuels Technology Platform, the European Biomass Industry Association and the NGO Transport & Environment. A summary report and presentations are now available:
'The future of biofuels as alternative fuel for the transport sector'.
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