Germany replaces biofuels tax incentive with fuels obligation
Tue 13 December 2005
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Germany's new government has introduced a requirement for petrol and diesel to include minimum levels of biofuel, replacing a tax incentive for the uptake of transport biofuel.
The switch is intended to more effectively increase the use of biofuels in transport. Along with other EU countries, Germany is aiming to achieve the non-binding target of a 5.75% share of transport biofuels by 2010.
The German move provoked anger from hauliers and transport organisations who fear that the removal of the incentive will add to the sector's costs.
Meanwhile, Ireland's budget for 2006 will introduce €105m in tax relief for transport biofuels over the next three years. The measure is intended to help Ireland reach a 2% biofuels share by 2008 and cut 0.25m tonnes of CO2 per year according to the finance ministry.
Other budget allocations include €65m in grants to boost biofuels, combined heat and power, biomass commercial heaters and domestic renewable heat.
Related Links
Ireland Government news release
German transport organisation news release (in German)
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