Biofuels boosted by EU plan

08 February 2006

The EU announced on Wednesday 8 February a seven-point plan for boosting the production of biofuels that could lead to an introduction of mandatory targets for biofuel production, writes Jon Eldridge. “Member states must be encouraged to favour biofuels (including second generation products), and consideration will be given to biofuel obligations,” the European Commission said. “We can see that things are moving in the right direction though not fast enough.” EU agriculture chief, Mariann Fischer Boel said. “Whether targets will be mandatory or not will be a political discussion that will take place later this year.” The Danish commissioner declined to reveal her personal view on the imposition of mandatory targets. The new strategy identifies several areas where biofuel production should be supported including the development of new markets, both in the EU and overseas, and research. “To reach our goals we need to invest in the research of biofuels, in particular the second generation of biofuels,” Fischer Boel said. Development commissioner Louis Michel said that developing countries have the potential to become great producers of biomass, in particular those countries affected by recent sugar reforms. “Many developing countries are naturally well placed for the production of biofuel feedstocks, particularly those traditionally strong in sugar production. The expanding EU market for biofuels will provide them with new export possibilities,” he said. The European Landowners Organisation, which has highlighted the need to increase biomass production in the EU, is broadly supportive of the EU’s new strategy. Cécile Bonino, a spokesperson for the organisation, told Euro-correspondent.com that it supports tax breaks to bolster production. "We are happy that the Belgian tax incentive was given a green light by the EU last week,” she said. Belgium is one several EU countries that have introduced tax breaks for biofuels. Commissioner Fischer Boel said that the disadvantage of biofuels are their high costs but that the energy taxation directive was important because it allows member states to set their own levels of taxation. Following recent energy crises in Eastern Europe, alternative sources are back on the EU agenda. In an article published last week in the Parliament Magazine, Mariann Fischer Boel wrote, “We cannot rely forever on ‘black gold’ to meet our energy needs. The gold of the future might just be green.” In fact, the agriculture commissioner says that the time is right for biofuels. “Crude oil prices remain high. We face stringent targets under the Kyoto Protocol. And the recent controversy over imports of Russian gas has underlined the importance of increasing Europe’s energy self-sufficiency. Raw materials for biofuel production also provide a potential new outlet for Europe’s farmers, who have been freed by CAP reform to become true entrepreneurs.” The paper published today sets out three main aims: * to promote biofuels in both the EU and developing countries. * to prepare for large-scale use of biofuels by improving their cost-competitiveness and increasing research into ‘second generation’ fuels. * to support developing countries where biofuel production could stimulate sustainable economic growth. A version of this article originally appeared at ICIS News.

 

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