1. Kristīne Kozlova DG TREN, European Commission 2 April 2009 The Renewable energy directive: final agreement and next steps EUROPEAN COMMISSION

2. | 2 Biofuels in the Renewable Energy Directive The new Renewable energy directive. Binding national targets for renewable energy shares. Indicative trajectory towards 2020 targets per Member State. 10% renewable energy in transport target confirmed. Sustainability criteria and monitoring for biofuels. Member States national action plans – in 2010. System of cooperation and flexibility mechanisms with Member States or third countries and “statistical transfers” between Member States to help reach targets cost effectively. Requires reduction of administrative and regulatory barriers, improved information and training and renewables’ access to the electricity grid

3. | 3 Biofuels in the Renewable Energy Directive Biofuels sustainability scheme and monitoring. Apply to single consignments of biofuel. Single EU scheme. Applies to both EU production and imports. Applies to biofuels and bioliquids, review for other bioenergy by end of 2009. Accompanied by monitoring rules in the EU and third countries

4. | 4 Biofuels in the Renewable Energy Directive 1. Greenhouse gas impact. Sustainability criterion: » Minimum requirement for GHG saving, relative to fossil fuel, of at least 35%, 50% in 2017 (60% for new installations) » For current plants only after April 2013 » Rules for calculation of GHG saving » Use of default values to reduce administrative burden

5. | 5 Biofuels in the Renewable Energy Directive 2. Land with high carbon stock. Sustainability criterion: » Land use change (positive and negative) is counted in the greenhouse gas calculation » No conversion of: Wetland ‘Continuously forested area’ Undrained peatland » Commission report in 2010 on how to address indirect land use change

6. | 6 Biofuels in the Renewable Energy Directive 3. Land with high biodiversity value. Sustainability criterion: » No raw material from: - forest undisturbed by significant human activity - highly biodiverse grassland - nature protection areas (unless compatible with nature protection)

7. | 7 Biofuels in the Renewable Energy Directive 4. Good agricultural and environmental condition. No rules (e.g. concerning water use, soil erosion) identified that could be used universally, so:. The ‘Cross-compliance’ rules in the EU’s common agricultural policy will apply. Companies to report on measures taken for water, air and soil protection (without consequences). Commission to determine what is to be reported (must be appropriate, relevant and without an excessive administrative burden). Review in 2012 on whether to make it mandatory

8. | 8 Biofuels in the Renewable Energy Directive Social sustainability. Companies to report on certain social aspects like labour standards etc.. Commission to determine what reporting is appropriate. Commission monitoring on the same issues. Commission monitoring the impacts on food security » Difficult to link to individual consignments of biofuel » Effects not necessarily negative » May raise issues under international (trade) law ► Therefore no criteria, but monitoring rules

9. | 9 Biofuels in the Renewable Energy Directive Practical operation of the scheme. Enforcement of the sustainability criteria – responsibility of Member States. The Commission can accredit international agreements and voluntary schemes as sufficient proof. Member States must accept this evidence.. Member States will report on (biofuels part): » sectoral and overal shares of renewable energy and measures to promote the growth of RES » RES support systems/schemes » commodity price developments/land use changes » impacts on biodiversity, water and soil » achieved GHG savings » excess production of RES/need for imports (including biofuels)

10. | 10 Biofuels in the Renewable Energy Directive Practical operation of the scheme. The Commission will monitor » Origin of biofuels consumed in the EU and the impacts of their production in the EU and third countries » Commodity price changes » Dialogue/information exchange with 3rd countries, consumers/producers, civil society – incl. on food prices » GHG savings from biofuels. The Commission reports: » Environmental costs/benefits of biofuel use » Impacts of increased demand, incl. socioeconomic and environmental » Availability of 2nd generation biofuels » Review the min GHG thresholds (in 2014) » Cost-efficiency of measures

11. | 11 Biofuels in the Renewable Energy Directive What the Commission will do in…. 2009 » Adopt template for NAPs » Report on Biomass sustainability criteria » Criteria for biodiverse grassland » Criteria for degraded land » List of biofuel sustainability reporting requirements for economic operators » Decisions (if applied for) on compliance of national or intl voluntary schemes. 2010 » Report on indirect land use change » Guidance for MS on areas with lower GHG values from agriculture » Report on feasibility of area lists with lower GHG values in 3rd countries » Report on operation of sustainability verification methods

12. | 12 Biofuels in the Renewable Energy Directive What Commission will do in…. 2011 » Methodology for accounting RES in electric vehicles » Methodology for accounting RES in hydrogen vehicles. 2012 » First bi-annual biofuels sustainability reports on impacts in MS and 3rd countries » First RES progress report, including on biofuels progress » Report on the effectiveness of sustainability criteria reporting system and operation of the verification systems » Report on typical and default GHG (new Annex V) and possible adaptation of GHG values to scientific progress. 2014 » General review report incl. on feasibility of passing to higher GHG threshold, availability of 2nd generation biofuels

13. | 13 Biofuels in the Renewable Energy Directive Thank you – kristine.kozlova@ec.europa.eu