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ILUC DIRECTIVE
After months of intense debate in the Parliament, the ENVI Committe approved its position on the revision of the Renewable Energy and Fuel Quality Directives (the ILUC Directive). This new step brings this dossier closer to a final resolution. The ILUC Directive was proposed by the European Commission in October 2012, bringing much uncertainty to a developing sector due to the important changes it contains, such as a cap in the promotion of first generation biofuels or Indirect Land Use Change (ILUC) factor accounting. According to several scientific studies, using farmland to produce biofuel crops is pushing farmers to use more lands for food crops, therefore fostering deforestation and thus greenhouse gas emissions and land grabbing.
This revision has been debated by the Council and the Parliament for the last 2 years and so far they have been incapable of finding a common position. As a matter of fact, the ENVI Committee approved its position on a second reading since in 2013 it failed to secure a sufficient majority for the previous rapporteur to negotiate an agreement with the Council. The ENVI committee aproved the amendments to the draft law by 39 votes in favour to 26, with 4 abstentions and moreover, gave a strong mandate to Nils Torvalds, the new ILUC Directive rapporteur to negotiate with the Council. The main points included in this position are the following:
- A cap of 6% for first-generation biofuels (based on edible crops). These would not qualify for the 10% renewable energy in transport goal by 2020 once overcame that limit. This cap also includes energy crops
- A mandatory goal of at least 1,25% for the use of advanced biofuels including double and multiple counting depending on the feedstock (algae x4, lignocellulosic biomass x2, used cooking x2 only for the 10% general goal, etc.)
- ILUC factors accounting in relation to the decarbonization goals
- Stronger sustainability criteria for waste-based biofuels, which should comply with the hierarchy criteria (reusing and recycling before burning it as a fuel)
- A more comprehensive and clear list of feedstocks
- Revision clause that allows the Commission to review the ILUC factors and to take the measures to improve its implementation (delegated acts)
- A mandate to further promote advanced biofuels after 2020
Discussions with the Council are scheduled to take place during March and an agreement is expected for the next months. The positions between Council and Parliament are not so distant (the Council backs a 7% first generation biofuels cap, a 0,5% advanced biofuels goal) so there is hope for a final understanding between the two institutions which brings to an end this polemic dossier. The industry sees the final approval of the ILUC Directive as an opportunity to bring back stability to the sector and a more clear perspective for the next years
Check the ENVI Committee position on the ILUC Directive in the following link: http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+REPORT+A8-2015-0025+0+DOC+XML+V0//EN
ENERGY UNION
The European Commission presented in the end of February the Energy Union communication, the first one of a series of documents which will put energy at the center of the EU policy action. The Energy Union is one of the flagship projects that the Juncker Commission will implement during the next 5 years. It aims at reaching a more sustainable, secure and affordable energy for the EU economy. The Energy Union shall be based in 5 different pillars: Energy security, promotion of renewables, energy efficiency, research and development and specially the creation of a common energy market.
This new iniciative focuses on the completition of the internal market for energy and thus, the right implementation of the existing legislation (Third Energy Package) which would liberalize the sector. Besides, it gives great importance to the construction of infrastructure such as electric and specially gas connections, and on the other hand, building partnerships with energy suppliers. Thus, the Energy Union iniciative is clearly focused on the supply security side and on avoiding any energy crisis, supporting the invest in infrastructures that will keep on bringing foreign fossil fuels and which might end up being too expensive and even needless if we take into account the decarbonization goals (40% by 2030) and the falling energy consumption.
The Energy Union communication includes in its annex a list with the future actions included in this framework, among which the most relevant for the biomass sector are:
- Renewable Energy Package: including a new Renewable Energy Directive for 2030; best practices in renewable energy self-consumption and support schemes; bioenergy sustainability policy (to be published in 2015-2017)
- Communication on Waste to Energy (to be published in 2016)
- Communication on decarbonising the transport sector, including an action plan on second and third generation biofuels and other alternative, sustainable fuels (to be published in 2017)
- EU strategy for Heating and Cooling (to be published in 2017)
The Energy Union iniciative is of course closely related to the Climate policy and as a matter of fact, at the same time the Commission also presented its Communication on the Paris Protocol, describing its strategy and the commitments on the decarbonization of its economy to be negotiated during the United Nations Climate Change Conference to be held in Paris in December. The EU has agreed to reduce greenhouse gas emissions reduction target of at least 40%, compared to 1990.