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28th January 2008

The European Commission’s new Directive aiming to establish national renewable energy targets includes a binding 10% minimum target for biofuels in transport to be achieved by each Member State, on which the Commission issued a Memo on 23 January, explaining inter alia that the same 10% target for each Member State was set to ensure consistency in transport fuel specifications and availability.

While it would technically be possible for the European Union to meet its biofuels needs solely from domestic production, the EC says it is both likely and desirable that these needs will be met through a combination of domestic EU production and imports.

The memo acknowledges that concerns have been raised about whether biofuel production is sustainable, and accepts that while biofuels are a crucial part of renewable energy policy and a key solution to growing emissions in the transport sector, they must not be promoted unless they are produced sustainably.

Although the majority of biofuels currently consumed in the EU are produced in a sustainable manner, the concerns are legitimate and need to be addressed. The Directive therefore sets out stringent environmental sustainability criteria to ensure that biofuels that are to count towards the European targets are sustainable and that they are not in conflict with the EU’s overall environmental goals.

This means that they must achieve at least a minimum level of greenhouse gas savings and respect a number of requirements related to biodiversity. Among other things this will prevent the use of land with high biodiversity value, such as natural forests and protected areas, being used for the production of raw materials for biofuels.

Biofuels cost more than other forms of renewable energy and without a separate minimum target for biofuels, they will not be developed.

This matters, says the Memo, because greenhouse gas trends are worst in transport, and biofuels are one of the few measures – alongside vehicle fuel efficiency – realistically capable of making a significant impact on greenhouse gas emissions from transport. In addition, the oil dependence of the transport sector is the most serious security of supply problem of all.

And finally, the EC says “We must remember to send the right signals for the future: the old cars of 2020 are being built today. Vehicle manufacturers need to know what fuel to design for.”

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