EU agrees deal on 7% limit for food-based biofuels

Wed 18 June 2014 View all news

The European Union's energy ministers have agreed on a 7% cap on food-based fuels for use in transport; higher than the 5% originally recommended by the European Commission. The text agreed by energy ministers includes the reporting of ILUC emissions, but not their accounting in EU fuel quality targets.

The deal, which still needs European Parliamentary approval is an attempt to overcome a stalemate which began late last year when European Union governments failed to agree on a proposed 5 percent cap on the use of biofuels based on crops such as maize or rapeseed.

European Energy Commissioner Guenther Oettinger said: "We think this proposal is much better than nothing."

"We need to support research and development in advanced biofuels so we can move forward from generation one into generation two and generation three," he added, referring to more sophisticated biofuels which do not compete with growing crops for food.

The proposed 7 percent limit is part of a goal to get 10 percent of transport fuel from renewable sources by 2020, as part of efforts to curb greenhouse gas emissions and EU dependence on imported oil and gas.

The compromise supported by ministers includes a 0.5 percent non-binding target for next-generation biofuels, which environment campaigners say is nowhere near enough to make a difference.

The agreement could mean that the overall goal to get 10 percent of transport fuel from renewable sources by 2020 is missed, analysts say. Currently around 5 percent of EU transport fuel comes from renewable sources.

Thomas Nagy, executive vice-president of Novozymes , which makes enzymes used in the production of advanced biofuels, said the decision enabled "a reboot of the decision-making process".

However, he said there was a "lack of ambition and absence of incentives to allow the conventional biofuel industry to develop sustainably" and urged the European Parliament, which will resume debate of the draft law later this year, to propose amendments. 

EurActiv reported the positions of various other stakeholders:

Pietro Caloprisco, clean fuels officer at Transport and Environment, an NGO, said: "With this modest reform, Europe puts a lid on biofuels that emit more CO2 than the fossil fuels they are meant to replace. While it recognises that many biofuels cause indirect emissions, it fails to ensure full carbon accounting and kick-start cleaner fuels.

“It is disappointing that some countries have signaled their reluctance to even discuss the 7% cap with the Parliament," Caloprisco added, in a statement. "We encourage the Italian presidency not to ignore the calls from several other member states to improve the text during the upcoming negotiations."

Raffaello Garofalo, secretary-general of the European Biodiesel Board, said "it is not useless to remind that all the biodiesel produced today in Europe has anyhow to be considered as 'ILUC-free' or at least as 'low-ILUC-risk-Biofuel' according to the new concept introduced in the Council agreement, since the EU volumes of production are stable since 2011 and no change or impact on land use has recently occurred or will occur because of EU biodiesel production covered in the 7% target."

Robbie Blake, an environmental campaigner at Friends of the Earth Europe, said: “Europe’s thirst for biofuels is causing people around the world to go hungry, rainforests to be cleared, and global warming to accelerate. This decision to limit their use is welcome but too little and very late. We need to phase out this reckless use of food for fuel completely.”

The UK Renewable Energy Agency's Chief Executive Dr Nina Skorupska said: “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. 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. ”

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