English version - European Renewable Energy Council

C O N F E R E N C E P R O G R A M M ETUESDAY, 20TH JANUARY 2004DIRECTIVE ON THE PROMOTION OF BIOFUELSBiofuels for Transport:the real start in Europe now?In the EU, the transport sector relies today for more than90% of its energy on mineral oil, and a growing proportionof this will have to be imported in the future. This is unacceptablefrom the point of view of the future security of EUenergy supply, as well as from an environmental perspective(emissions of greenhouse gases), and justifies seriousefforts by all sectors of society. Moreover, global oil suppliesare finite and the majority are located in regions ofthe world, which are distant from the EU. As a result, oilprices have already shown increasing volatility in recentyears, and this volatility can only be expected to increasein the future.In this context, the EU has implemented two new Directives,which are designed to promote significant increases - up tonearly 6% in 2010 compared with the current 0.6% - in theuse of biofuels, such as biodiesel and bioethanol, for transportapplications.The keynote speeches will review the background to thetwo new EU Directives, European policy in biofuels andpresent active national policy options promoting andensuring that there is a significant future growth in the useof biofuels for transport applications in the enlarged EU.12001000800600400200Biodiesel production in million of litres0France(mainly for transport)Germany(mainly for transport)■ 2000■ 2001■ 2002Italy(mainly for heating)Austria, Denmark,Sweden and United KingdomTotal biodieselSource: European Commission, 2003In 2002, the total production of biodieseland biodiesel was 1364 million litreswhich is equivalent to 1 Mtoe.The EU target for 2010 of 5.75% isequivalent to 18 Mtoe400300200100In May 2003, the European Parliament and theCouncil adopted the Directive on the promotion ofbiofuels for transport. This was the first Directive inthis field, its main objective is to raise the part ofbiofuels used for transport purposes from the current0.6% to 2% by 2005 and to 5.75 % by 2010.Biofuels, include, bioethanol, biodiesel and any fuelfor transport produced from renewable energysources. National governments should, accordingto the Directive introduce measures to promote theproduction and use of biofuels in their territory.THE NEW FISCAL DIRECTIVEON THE TAXATION OF ENERGY PRODUCTSThe Council Directive adopted in October 2003widens the scope of the EU’s minimum rate system,previously limited to mineral oils, to all energyproducts including coal, natural gas and electricityand updates the minimum rates for mineraloils which had remained unchanged since 1992.Energy products are taxed only when used as afuel or for heating. Among other provisions theDirective allows Member States to exempt renewableenergy sources, including biofuels, as well asenergy used for carriage of goods and passengersby train, metro, tram or trolleybus. In addition,Member States can refund part of the taxes paidby firms investing in energy efficiency. According tothe new Directive which restructures the Communityframework for the taxation of energy productsand electricity, Member States are allowed toapply fiscal advantages for encouraging the use ofrenewable energy and improving energy efficiencyin their countries.Bioethanol production in million of litres0■ 2000■ 2001■ 2002France Spain Sweden totalbioethanolSource: European Commission, 200315B I O F U E L S F O R T R A N S P O R T