RenewableS 2013 GlObal STaTUS RePORT - REN21

04 POLICY LANDSCAPE
for all renewable energy, heat, and power production into one
law and instituted a renewable heat bonus of USD 2.60/GJ
(EUR 2.00/GJ) for systems that deliver heat to district heating
networks or for industry. 79 In Denmark, a number of financial
provisions were established to promote renewable heating,
including a new fund of USD 7.6 million (DKK 42 million) to
facilitate the conversion of oil and gas heat to renewable heat
and USD 6.3 million (DKK 35 million) to promote new renewable
technologies, including large heat pumps. 80
Germany increased subsidies for renewable heat projects;
Italy approved a grant scheme for renewable heating systems
with an eye towards enacting a FIT in the coming years; and
Luxembourg strengthened a support mechanism for renewable
energy in the building sector, including a USD 2,600 (EUR
2,000) increase in support for geothermal heat pumps, per
household. 81 In addition, Portugal enacted a new USD 1.35
million (EUR 1 million) grant scheme to support the installation
of solar thermal systems on existing buildings; and the United
Kingdom reopened the Renewable Heat Premium Payment
grant programme and released proposed rates for the domestic
portion of the Renewable Heat Incentive FIT, which was
expected to be enacted in summer 2013. 82
Elsewhere, Uruguay implemented a number of new incentives
for solar thermal technologies, including tax exemptions
for solar heating equipment; India enacted a new national
programme to provide financial support for the development of
CSP for heat applications; and the Indian state of Uttarakhand
increased existing rebates for solar water heaters. 83
Not all changes were supportive of renewable heat. The
Canadian ecoENERGY Retrofit-Homes programme, which
included grants to homeowners installing solar water heaters,
was allowed to expire, and the Energy Ministry has suggested
removing legislation requiring 2% renewable content in home
heating oil. 84 In New Zealand, a grant scheme to support solar
water heaters expired in mid-2012. 85
■■Transport Policies
Policies supporting the use of renewable fuels in the transport
sector have been identified at the national level in 49 countries
as of early 2013, up from 46 identified in GSR 2012. Common
policies include biofuel production subsidies, biofuel blend
mandates, and tax incentives. Blending mandates have been
identified in 27 countries at the national level and in 27 states/
provinces. (See Reference Table R15.)
Biofuel support policies in Europe and the United States continued
to come under pressure from groups concerned about the
potential impacts of fuel crops on food production and on land,
biodiversity, and water, as well as net greenhouse gas emissions
from biofuels life-cycle processes. As a result, some major
markets are facing increasing pressure to move away from supporting
both first-generation and advanced feedstock biofuels.
The European Commission proposed setting a 5% cap on
the first-generation biofuel share of total transport fuels and
eliminating subsidies for food crop-based biofuels production
by 2020, while at the same time allowing fourfold counting of
the shares of advanced biofuels. 89 Although it is unlikely that
these changes will be acted on in 2013, the proposals have had
an impact on the sector including in Austria, which temporarily
suspended the introduction of E10 pending clarification on EU
biofuel regulations. 90 In the United States, the Renewable Fuels
Standard remained in place despite significant pressure to
waive it in the face of drought conditions. 91 For the second year
in a row, however, the cellulosic fuel component of the target
was reduced, cut from 1.9 billion litres (500 million gallons) to
39.7 million litres (10.5 million gallons). 92
Changes in fiscal support for biofuels continued throughout
2012 and early 2013. The U.S. biofuels industry benefitted from
an extension of the USD 1.01/gallon (USD 0.27/litre) tax credit
for cellulosic ethanol production and the reintroduction of the
USD 1/gallon (USD 0.26/litre) biodiesel tax credit. 93 Australia
pledged USD 15.7 million (AUD 15 million) in grants for the
development of advanced biofuels. 94 Brazil doubled an earlier
pledge to support the development of new techniques for creating
fuel from sugarcane bagasse, committing nearly USD 1 billion
(BRL 2 billion) in loans and grants through 2014. 95 However,
existing support was allowed to expire in New Zealand, where
the biofuels grant scheme ended in June 2012, and in the
United Kingdom, where the duty differential on biofuels from
used cooking oil closed out in early 2012. 96
Electric vehicles (EVs) can be an important complement to
renewable energy development, as they offer the potential to
fuel vehicles with renewable electricity and to serve as a form of
electricity storage from renewables. Many countries continued
to support the development of markets for EVs and the linkage
to renewable energy. This includes countries in the EU, where,
since 2009, electricity from renewable energy used in electric
vehicles has received preferential standing towards meeting the
10% renewable transport mandate, accounting for 2.5 times
the energy content of the electricity input. 97 As of early 2013,
New blend mandates were introduced in 2012 by South Africa
with an E10 mandate; by Turkey, which implemented an E2
mandate in early 2013; and by Zimbabwe, which approved
an E5 mandate. 86 The Canadian province of Saskatchewan
enacted a B2 blend mandate to complement its existing E8.5
blend mandate. 87
During 2012, three countries enacted or revised their existing
biofuel blend policies. India began enforcing a national E5
mandate that was initially intended to apply in 2006; Thailand
increased its biodiesel blend mandate from B4 to B5; and the
U.S. Environmental Protection Agency (EPA) increased the
biodiesel volume requirement for 2013 to 4.85 billion litres
(1.28 billion gallons), up from 4.16 billion litres (1.1 billion
gallons) in 2012. 88
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