Europe reaches agreement on Renewable Energy Directive

Thu 18 December 2008 View all news

The European Commission, Parliament and member states have reached an agreement on the final terms of the Renewable Energy Directive which paves the way for the EU to achieve a 20% renewables contribution to total energy demand by 2020. The so called 20:20:20 plan also sets binding targets for the use of renewable fuels in transport.

Under the terms of the Directive, each Member State has a legally binding renewables target for 2020. By June 2010 each state must draw up a National Action Plan (NAP) detailing how they plan to meet the 2020 targets. Member states will report on progress every two years.

Included in the renewables targets is a 10 percent goal for transportation fuels including biofuels, electricity and hydrogen. The 10 percent target is to be reviewed in 2013.  New measures incorporated into the EU Directive include minimum greenhouse gas (GHG) reduction targets for biofuels and sustainability criteria.

The Directive sets a GHG reduction target for biofuels of 35 percent compared with fossil fuels. For biofuels producers in operation in January 2008, the requirement will take effect April 1, 2013. In 2017 the requirement will increase to a 50 percent GHG reduction, and for new producers after 2017 the target will be 60 percent.

Targets for GHG emission reductions include all transport fuels – fossil fuels as well as biofuels, blends, electricity and hydrogen. The revised Fuel Quality Directive requires fuel suppliers to reduce GHG emission caused by extraction or cultivation, including land-use changes, transport and distribution, processing and combustion of transport fuels.

The Directive seeks to promote more sustainable biofuels by allowing second-generation biofuels - which do not compete with food or feed production - to be double credited in the 10 percent target. The Directive also calls for the European Commission to develop a methodology to measure GHG emissions from indirect land use by 2010.

There is also a provision for the phasing in of 10% Ethanol (E10) petrol. However, to avoid potential damage to old cars, the continued marketing of petrol containing a maximum 5% ethanol is guaranteed until 2013, with the possibility of an extension to that date if needed.

The Low Carbon Vehicle Partnership has played a leading role in the development of sustainability and carbon accreditation systems for biofuels in the UK and this approach has attracted significant levels of interest in Europe and elsewhere. (See LowCVP link.)

Meanwhile, in an update on the UK Government's response to the Gallagher Review of the indirect effects of biofuels production, the Transport Secretary Geoff Hoon said that the Government remains committed to meeting the 10% EU target for renewable transport fuels by 2020 but that rigourous sustainability criteria applicable to the target should address the indirect as well as direct effects on land use; and that the 10% target be subject to rigorous review to take account of the emerging evidence.

In a statement Mr Hoon said: "The UK Government has led the debate in Europe on the need to address the indirect effects of biofuels on land use and so ensure that the Renewable Energy Directive will include sustainability criteria that address these indirect effects. The Directive put forward for approval requires the Commission to, by 31 December 2010, submit a report to the Council and the European Parliament on the impact of indirect land use change on greenhouse gas emissions. This report shall where appropriate be accompanied by a proposal for a methodology through which the greenhouse gas emissions caused by indirect land use change will be taken into account, with a view to the Council and European Parliament endeavouring to agree this methodology by 2012. "

Mr Hoon said that the Government recognises the fact that the scientific evidence around the indirect effects of biofuels is not yet certain enough to develop such a methodology now. His statement notes, however, that the pace of research into indirect land use change has been accelerating rapidly. He says that the UK Government is working with international partners and scientific experts to develop a biofuels research programme to address gaps in the evidence around the indirect effects of biofuels which will help ensure that development of any methodology to take into account indirect land use change is based on the best available science.


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