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Biofuels – EU policy context Funding and Legislation Workshops Glasgow, 26 May 2011

Biofuels – EU policy context Funding and Legislation Workshops Glasgow, 26 May 2011. Francesca Giannini Scotland Europa. White Paper on the Future of Transport. Commission Communication – March 2011; pending Council/Parliament adoption Roadmap for next decade (40 initiatives proposed)

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Biofuels – EU policy context Funding and Legislation Workshops Glasgow, 26 May 2011

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  1. Biofuels – EU policy context • Funding and Legislation Workshops • Glasgow, 26 May 2011 Francesca Giannini Scotland Europa

  2. White Paper on the Future of Transport Commission Communication – March 2011; pending Council/Parliament adoption • Roadmap for next decade (40 initiatives proposed) • Goal of 60% cut in transport emissions by 2050 • From “user pays” to “polluter pays” Key targets include: • Halve use of ‘conventionally fuelled’ cars in urban transport by 2030; phase out completely in cities by 2050; CO2-free movement of goods in major urban centres by 2030 • 40% low carbon fuels in aviation; 40% cut in shipping emissions by 2050

  3. Renewables Directive New Directive adopted in 2009 (replaces 2003 Directive): • Legal target: 10% renewable fuels in transport mix of each EU country by 2020 National Action Plans indicate will reach 11% by 2020 • 1st generation biofuels expected to make up vast majority of target • EU intention for 2nd generation fuels/hydrogen/electricity to contribute from 2015

  4. Fuel Quality Directive New Directive adopted in 2009 (replaces 1998 Directive): • EU-wide quality standards ( pollutant emissions) for fuel sources • New requirement – road transport fuel suppliers to reduce emissions by 6% / unit energy by 2020 May be increased to 10% after 2012 review • Monitoring “well to wheel” CO2 emissions & reducing against fossil fuel baseline • Allows higher volumes of biofuels in petrol

  5. Sustainability criteria Apply to Renewables & Fuel Quality Directives: • Must deliver GHG savings of minimum 35% Target rises to 50% in 2017; 60% for fuels from new plants in 2018 • Should not come from forests, wetlands & nature protection areas Only biofuels that meet the EU's sustainability requirements can count towards targets • Guidelines on additional national voluntary schemes published – June 2010 Land use change • Stakeholder consultation on indirect land use change impacts – autumn 2010 • Commission report in December 2010 Decision not to legislate at this stage – uncertainties in impact calculation models • Impact assessment to be published – July 2011 May be accompanied by legislative proposals on indirect land use change

  6. Clean Vehicles Directive Adopted in 2009: • Requires lifetime energy & environment impacts taken into account in public procurement Including CO2 emissions, energy consumption, pollutant emissions • Sets common rules to calculate lifetime emissions Aims: • Internalising external transport costs • Encourage wider deployment of clean vehicles

  7. Energy Taxation Directive Proposal to revise Directive – April 2011; Pending Council/Parliament adoption • Sets minimum duties – heating & transport fuels • New proposal to restructure tax to base on CO2 & energy content (not volume): • €20 per tonne CO2 • €9.6/GJ for motor fuels Aims: • CO2 price signal for business and consumers • Preferential treatment of low CO2 fuels (inc. biofuels) • Encourage energy efficiency If agreed, would enter into force 2013

  8. Strategic Energy Technology Plan European Industrial Bioenergy Initiative (EIBI) – launched in 2010 • Public/private/academic partnership • Direction from European Biofuels Technology Platform • Expected investment need – €9 bn to 2020 Objectives: • enable commercial availability of advanced bioenergy at large scale & advanced biofuels up to 4 % of EU transport needs by 2020 • strengthen EU technology leadership Implementation (2010-2012): • Demonstration projects: first commercial demonstration unit • Flagship project: first economically viable commercial scale unit Future actions: • Biofuels for aviation sector; 2nd generation fuels; sustainability criteria • Longer term R&D – innovative bioenergy value chains

  9. Future initiatives EU Strategic Transport Technology Plan – due mid-2011 Aims: • Coordinate & pool RD&D of key sustainable transport technologies Roadmaps for key technologies • Set focus of EU policy & funding support for transport sector Biofuels expected to be covered in Initiative on Fuels and Energy Technologies Stakeholder consultation closes 27 May Further actions • clean transport systems strategy in 2012 • three-part strategy for transport in cities – also link to Smart Cities initiative

  10. Further information: • www.ec.europa.eu/transport/strategies/2011_white_paper_en.htm • www.ec.europa.eu/energy/renewables/biofuels/biofuels_en.htm • www.ec.europa.eu/taxation_customs/taxation/excise_duties/energy_products/legislation/index_en.htm • www.setis.ec.europa.eu/activities/implementation-plans/European%20Industrial%20Bioenergy%20Initiative_-EIBI.pdf/view

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