13 Strategy for biofuels
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6153/06
COM(06) 34
+ ADD 1
| Commission Communication: An EU strategy for biofuels
Commission Staff Working Document — Annex to the Communication An EU strategy for biofuels Impact Assessment
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| Legal base | — |
| Document originated | 8 February 2006
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| Deposited in Parliament | 15 February 2006
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| Department | Transport |
| Basis of consideration | EM of 27 February 2006
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| Previous Committee Report | None, but see footnote 37
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| To be discussed in Council | Various dates set
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| Committee's assessment | Politically important
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| Committee's decision | Cleared
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Background
13.1 As we noted in our Report of 1 February 2006, the Commission
produced in December 2005 a Biomass Action Plan,[37]
setting out the environmental and other benefits of promoting
biomass in heating, electricity and transport, and the ways in
which this might be achieved. The current document concentrates
on the role which liquid biofuels used for transport could play
in this context.
The current document
13.2 The Commission suggests that the three main aims of the proposed
Biofuels Strategy should be to:
- further promote the use of biofuels in the Community, and
ensure that their production and use is sustainable;
- improve the cost-effectiveness of biofuels by
supporting the development of advanced production techniques;
and
- to explore the opportunities which biofuels offer
to developing countries.
13.3 The Strategy sets out the following seven main
areas in which the Commission intends to take action.
Stimulating the demand for biofuels
13.4 The Biofuels Directive[38]
sets Member States targets of a 2% market share for biofuels in
2005 and 5.75% in 2010, and the Commission says that it will prepare
a report by the end of 2006 into the effectiveness of the Directive,
with a view to its possible revision. This report will consider,
among other things:
- whether or not it remains appropriate
to require Member States to set their own national market share
targets in this area, in the light of the widely different targets
which they have set thus far;
- whether or not biofuel obligations[39]
are an appropriate way of supporting the use of biofuels, how
these might interact with fiscal incentives, and whether there
is more which the Community should do to encourage their use;
and
- the possibility of requiring that only biofuels
whose production complies with minimum sustainability standards
should count towards Member States' targets, thus responding to
widespread concerns that some biofuels — particularly those
imported from the developing world — could have a negative
environmental impact (if, for example, their cultivation led to
the destruction of tropical rainforests).
In the meantime, the Commission notes that the 2%
market share target for 2005 was not achieved, with 1.4% likely
to be the most favourable outcome.
13.5 The Commission will also encourage Member States
to give favourable treatment to the most environmentally friendly
biofuel production processes, and will encourage the Council and
European Parliament to reach rapid agreement on the legislative
proposal it put forward recently on the public procurement of
clean and efficient vehicles.[40]
Capturing the environmental benefits of biofuels
13.6 The Commission will explore how best to encourage
the use of biofuels delivering the greatest carbon savings, as
well as how to ensure that biofuel feedstock cultivation avoids
water pollution, soil degradation and the disruption of species
and habitats, and is thus compatible with overall environmental
sustainability. It will also consider how biofuel use might count
towards the carbon dioxide emission reduction targets for car
fleets, and it will review the standards laid down in the Fuel
Quality Directive[41]
limiting the amount of biofuel which can be blended into petrol
and diesel.
Developing the production and distribution of
biofuels
13.7 The Commission will encourage Member States
to ensure that the potential benefits of biofuels are considered
in the preparation of various regional and rural development strategies,
and it will set up an ad hoc group to facilitate this. It will
also explore a number of technical barriers to the introduction
of biofuels.
Expanding feedstock supplies
13.8 The Commission will take a number of actions
to encourage the production of biofuels in the Community from
a variety of feedstocks, including sugar, cereals, forest material
and organic waste material. It will monitor the impact of biofuel
demand on commodity and by-product prices as well as on food supply
and prices, and it will assess by the end of 2006 the implementation
of the special aid for energy crops introduced as part of the
reforms of the Common Agricultural Policy agreed in 2003.
Enhancing trade opportunities
13.9 The Commission will seek to simplify the arrangements
for imports of biofuels from third countries, which currently
enter the Community under a variety of different tariff codes.
It says that it will maintain the preferential access conditions
in force for certain forms of imported ethanol, and will aim to
strike a balance between the needs of domestic bioethanol producers
and the interests of international trading partners in future
trade negotiations. It will also propose amendments to the current
biodiesel standard to facilitate the use of a wider range of vegetable
oils (including, for example, palm and soya).
Supporting developing countries
13.10 The Commission will explore opportunities for
strengthening international co-operation, especially with developing
countries, in the area of biofuel production. In particular, it
will explore the scope for supporting the development of the ethanol
sector in countries affected by the reforms to the Community's
sugar regime. It will also develop a Biofuels Assistance Package
to support the development of biofuels in countries and regions
where this could offer a good option for sustainable poverty reduction.
Supporting research and development
13.11 The Commission will continue to support research
into the development of biofuels in a number of ways.
The Government's view
13.12 In his Explanatory Memorandum of 27 February
2006, the Minister of State at the Department of Transport (Dr
Stephen Ladyman) says that the Government shares the Commission's
view that biofuels have an important role to play in reducing
total carbon dioxide emissions from the transport sector, and
agrees that policies on biofuels need to be integrated with those
on the use of biomass in other sectors.
13.13 He points out that the review of the Biofuels
Directive during 2006 may have a number of implications, particularly
if it proposes a move away from the current system under which
Member States have a degree of flexibility to set their own national
biofuel sales targets, and that it may also affect the development
of the UK's Renewable Transport Fuel Obligation if it makes any
recommendations in this area. However, he says that the Government
welcomes the Commission's new emphasis on the need to ensure that
biofuels deliver the greatest possible carbon benefits and are
cultivated in a sustainable way, adding that the UK has been advocating
this for some time, and is developing its own carbon and environmental
assurance schemes as part of its Renewable Transport Fuels Obligation.
It also supports the Commission's aim of balancing domestic production
and imports of bioethanol, but will wish to consider carefully
the sustainability aspects of this approach, especially in relation
to products such as palm oil and soya. Finally, the Minister says
that the Government welcomes the Commission's intention to review
the existing fuel quality standards.
Conclusion
13.14 In this Communication, the Commission has
sought to develop in greater detail those aspects of its recent
Biomass Action Plan which relate to the use of biofuels in transport.
However, as with the earlier document, it has at this stage essentially
set out those actions which it intends to pursue, many of which
are likely to be the subject of subsequent legislative proposals.
In view of this, and the Government's continuing general support
for what is proposed, we see no pressing need for the further
consideration of this document by the House, and we are therefore
clearing it.
37 (27113) 15741/05; see HC 34-xvii (2005-06), para
7 (1 February 2006). Back
38
Directive 2003/30/EC. OJ No. L.123, 17.5.2003, p.42. Back
39
Such as the Renewable Transport Fuels Obligation which the UK
is due to introduce in April 2008. Back
40
(27162) 5130/06; see HC 34-xx (2005-06), para 2 (1 March 2006).
Back
41
Directive 98/70/EC (OJ No. L.350, 28.12.1998, p.58) as amended
by Directive 2003/17/EC (OJ No. L.76, 22.3.2003, p.10). Back
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