Detail

European Union

Biofuels

Biodiesel

01/03/2018

Renewable energy

Biofuel policy

Saw the European Parliament vote for a reform of the bloc\'s Renewable Energy Directive that would, inter alia: i) freeze production of crop-based biofuels at 2017 levels, while capping their share in total road/rail transport fuels; and ii) phase out, by 2021, the use of biofuels that bring about strong indirect land use changes.

With regard to the pending reform of the EU’s Renewable Energy Directive (RED), the European Parliament voted in favour of a proposal that would freeze production of crop-based biofuels at 2017 levels, while capping their share in total road/rail transport fuels at 7 percent. At the same time, the joint share of “advanced” fuels (defined as fuels with a lower impact on land use), waste-based biofuels, renewable electricity and fuels of non-biological origin should amount to at least 1.5 percent in 2021, rising to 10 percent in 2030. Furthermore, EU lawmakers proposed to remove, by 2021, palm oil-based biodiesel from the list of biofuels that count towards the bloc’s renewable fuel targets (while all other vegetable oils could be used as feedstock until 2030). Likely marking the end of the EU’s palm-based diesel imports, the latter proposal attracted strong criticism from palm oil producing countries in Southeast Asia. As for the bloc’s overall renewable energy targets, the Parliament’s proposal envisages that, by 2030, a minimum of 35 percent of total energy consumption comes from renewable sources, while the share of renewables in transport should be at least 12 percent. Moreover, energy efficiency would need to be raised by 35 percent. The final shape of the EU’s RED will only emerge after tripartite negotiations have taken place between the Parliament, the Commission and the Council of Ministers (see also MPPU Dec.’16, June’17 and Jan.’18).