EU policy outlook on biofuels



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EU policy outlook on biofuels PLATTS Biofuels Seminar, 13 April 2016. Geneva Ruta Baltause European Commission, DG - Renewable and CCS Unit

Agreed headline targets 2030 Framework for Climate and 2020-20 % Greenhouse Gas Emissions 20% Renewable 20 % Efficiency 10 % Interconnection 2030-40 % Greenhouse Gas Emissions 27 % Renewable 27%* Efficiency * To be reviewed by 2020, having in mind an EU level of 30% New governance system + indicators 15 % Interconnection

Emission reductions in ETS and non-ets

European Council Conclusions: 2030 Framework for Climate and (October 2015): it is important to reduce greenhouse gas emissions and risks related to fossil fuel dependency in the transport sector. The European Council therefore invites the Commission to further examine instruments and measures for a comprehensive and technology neutral approach for the promotion of emissions reduction and energy efficiency in transport, for electric transportation and for renewable energy sources in transport also after 2020. 4

Overview relevant incentives 2016 Ongoing: Public consultation on future bioenergy policy (until 10 May 2016) Evaluation of public consultation on Renewable policy post 2020 Spring to Summer 2016: Communication on decarbonisation of transport Proposal for Effort Sharing Decision and LULUCF End of 2016: Proposal for a new Renewable Package including a new policy for sustainable biomass and biofuels Reporting on ILUC and progress on renewables 5

Share of energy from renewable sources in transport in 2014 (Eurostat)

Renewables sources in transport (Eurostat, SHARES 2014)

ILUC Directive Main objective: Limit indirect effects of EU biofuels Measures taken: 7% cap for agriculture-crop based biofuels Incentives to promote electro-mobility and incentives for advanced renewable fuels of nonbiological origin: o Count double o Indicative Sub-target o Harmonised list of feedstocks Changes to GHG emissions savings threshold ILUC reporting 8

2016 reporting requirements for the Commission By end of 2016 and in subsequent regular biennial progress reports under RED ILUC research developments Availability and sustainability of advanced biofuels Technological developments, economic and environmental impacts of dedicated energy crops By end of 2016 - report to the EP and to the Council. The best available scientific evidence on ILUC GHG associated with the production of biofuels and bioliquids It can be accompanied by legislative proposals for further measures Cost-efficient biofuels from non-land using and non-food feedstock (Article 3(1) ILUC): - assessment of availability by 2020 - environmental, economic and social impacts, - the need for additional criteria to ensure their sustainability

2017 reporting requirements for the Commission By 6 April 2017 - report to the EP and the Council By end of 2017 - report to the EP and to the Council Can be accompanied by legislative proposals for: 1) introduction of adjusted ILUC emission factors into sustainability criteria 2) further measures to prevent fraud, incl. at EU level; 3) promotion of sustainable biofuels after 2020 in a technology-neutral manner Report on voluntary schemes, including the identification of best practices. Can be accompanied by a legislative proposal on best practices improvement The effectiveness of the ILUC-Directive measures in limiting ILUC emissions The effectiveness of the incentives provided for biofuels from non-land-using feedstocks and non-food crops Competition of resources The possibility of setting out criteria for the identification and certification of low ILUC-risk biofuels and bioliquids The potential economic and environmental benefits and risks of increased production and use of dedicated energy crops Barriers for more bioethanol in petrol (If appropriate) information on financing and other support measures and progress towards reaching the level of 0,5% of the use of advanced biofuels at the EU level as soon as possible

Some of the Globium study findings Land use change emissions from conventional biofuels - likely to be substantial, particularly in case of biodiesel Some inherent uncertainty cannot be avoided in the estimation of such emissions and many parameters and assumptions influence the results. Major uncertainties remain with respect to detailed estimates, often considerable ranges of modelling results exist Land use change emissions for individual conventional crop-specific scenarios are approximately similar to previous IFPRI study. However, important difference is the very high LUC impacts from palm oil and soybean oil based biofuels, arising particularly from deforestation and peat land drainage effects ILUC values can be reduced - by effective policies, addressing unsustainable agriculture/ forest management practices Biofuels made from energy crops - low or negative LUC risks (for agriculture and forestry residues the removal rate matters). Amount of land use change in ha - larger compared to IFPRI study: 8.8 Mha or 0.6% of the total global crop area in 2012 compared to 1,7 Mha resulting from IFPRI study of 2011

Thank you for your attention! More information: http://ec.europa.eu/energy/renewables/