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Oct. 19, 2012 American Soybean Association (ASA) reports: As expected this week, the European Commission published its proposal to revise the Renewable Energy Directive (RED), capping food-based fuels at 5 percent, rather than the 10 percent target under the initial RED. In a significant change from previously leaked versions, the proposal does not include crop related greenhouse gas (GHG) indirect land use change factors. The main features of the proposal as outlined by the Commission are: • Reduced accountability for biofuels under member states' obligations on renewable targets. Member states can only count biofuels for 5 percent out of the 10 percent mandatory renewable energy use target established under the RED, thus reducing the original 10 percent target for biofuels. This 5 percent limit only applies to biofuels and bioliquids produced from food and oil crops. It should be noted that the production can actually be higher than 5 percent within member states; however, only 5 percent will account towards the renewable targets. • Increases GHG savings threshold to 60 percent for new installations already in operation on July 1, 2014 • Fuel suppliers will not be accountable for indirect emissions from biofuels: the reporting obligations will not have an impact on the 'sustainability claims' for biofuels (for now, and possibly only until 2020). • Indirect land use change (ILUC) factors, or emission penalties to account for ILUC, could be introduced as of Jan. 1, 2021. • After 2020, biofuels should only receive financial support if they lead to substantial GHG savings and are not produced from crops used for food and feed. The proposal will now go to the Council of Ministers (EU member states governments) and the European Parliament under the EU's ordinary procedure. Both institutions have the power to introduce amendments before finally adopting the legislation. Parliament has already made it very clear that they are in favor of including ILUC factors, and some EU governments may have the same view. The process is expected start before the end of the year and to take a year or longer. Member states will have 12 months to implement the new directive after it is adopted. Industry and non-government organizations will undoubtedly continue working to influence the final shape of the legislation. Tweet |
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