Renewable energy – EU policy update

1. Renewable energy – EU policy update Mihail DUMITRU European Commission, Directorate-General for Agriculture

2. Europe 2020 – priorities • Smart growth • Sustainable growth • Inclusive growth

3. Europe 2020 - targets Climate change/energy is one the 5 targets of the 2020 strategy • 20 (30) % reduction of GHG emissions • 20% share of renewable energy • 20% increase in energy efficiency By 2020 ambitious goals

5. Flagship initiatives Innovation Union • refocusing R&D and innovation policy on major challengesfor our society like climate change, energy and resource efficiency, health and demographic change

6. Renewable Energy Directive • Sets mandatory targets: 20% RE share (10% RE in transport), but no specific targets for bioenergy and biofuels • Requires national action plans • Standardises “guarantees of origin” (certifying the renewable origin of electricity or heat) and enables the transfer of these • Requires sustainability of biofuels • Requires reduction of administrative and regulatory barriers, improves access to the electricity grid

7. CAP & renewable energy • CAP reforms and decupling – farmers are free to chose what to produce (food, feed, energy, material, environment) • Support for energy crops- for a short period • Health Check – renewable energy among priorities • 2007-2013 CAP pillar II a wide range of measures supporting energy efficiency, reduction of GHG emissions, production & consumption of a wide range of renewable energy, farm diversification, short rotation coppice, etc • Sustainability of biomass production

8. Energy in agriculture • Agriculture consumer & producer of energy • Consumer - three energy inputs (diesel fuel, fertilizer, and electricity) • In agriculture, supply disruption of even a short duration could mean a substantial reduction or the complete loss of an entire growing season • producer of energy - bioenergy

9. Renewable energy - Agriculture Role of Agriculture to 20/20/20 target • GHG emission • Bio-energy alternative to conventional energy • Energy efficiency

10. Outline • Prospects for bioenergy in the EU • Sustainability of bioenergy

12. Bioenergy • Plays a key role in achieving the EU goals in terms of renewable energy and climate change • Benefits from clear, ambitious and binding targets • Can expect dynamic growth in the foreseeable future • Has to make things better – has to be sustainable

14. Projections using PRIMES/GreenX estimate that around 165-195 Mtoe of biomass would be used in 2020 to achieve the 20% renewables in primary energy target. • The European Environment Agency (EEA) report of 2006 concluded that 235 Mtoe in 2020 can be theoretically available even if strict environmental constraints are applied • But many other studies have been published, which come up with substantially higher and lower estimates

15. EU 27 Biomass Potential by Sector (BEE, 2008)

16. Sustainability of bioenergyis already part of the CAP

17. Sustainability Criteria: Objectives • Ensure a minimum GHG saving (level of ambition is increasing over time) • Prevent conversion of high carbon stock lands • Avoid losses of/damage to highly biodiverse land • Ensure environmental and social standards

18. Sustainability Criteria • Legally binding for biofuels and other bioliquids, condition for elegibility to the mandates and for support by Member States (Renewable Energy Directive) • Should also apply (with few exceptions, modifications) to other biomass for energy use (Commission Report, 25.2.2010)

19. Ensure minimum GHG saving • Increasing thresholds: From 35% to 50% from 2017 (60% for new plants), derogation for operating plants up to 04.2013 • Calculation: In reference to replaced fossil fuel, Life-Cycle from cultivation to final use (LUC included), detailed methodology in the Directive • Operators can choose: take defaultvalues from the Directive or calculate actualvalues for GHG saving

20. Protect biodiversity • No use of material from primary forest, protected areas, unless compatible with nature protection and highly biodiverse grassland (to be defined)

21. Ensure environmental and social standards • Cross-compliance rules for agricultural biomass from the EU only • Reporting obligations for operators: Information on measures taken on soil, water & air protection, and social requirements. Details to be provided by the Commission soon (clause of no excessive burden)

22. Sustainability of other biomass • Less than 5% solid/ gaseous biomass is imported to EU (for electricity, heating and cooling), but imports of pellets are increasing. • Many small sized energy-producers in the EU, where there are concerns about efficient use • EU forestry, agriculture and waste management subject to environmental rules • Solid biomass and biogas have generally high GHG savings

23. CAP post 2013 • The CAP towards 2020: Meeting food, natural resources and territorial challenges of the future Priorities for Rural development policy: • Promoting farms viability and competitivness • Promoting resource efficiency in agri-food sector • Promoting transition to low-carbon economy • Protecting and enhancing ecosystems dependent on agriculture and forestry • Realising the growth and jobs potential of rural areas