1. Biofuels – National legislation and GHG reductions
Thomas Weber
Environment Ministry
Germany

2. Overview Legislative framework (presentation by Environment Ministry)
Key elements of regulation
Government authorization for GHG reduction
(presentation by Environment Ministry)
Research activities towards a GHG reduction scheme
(presentation by Horst Fehrenbach, IFEU)

3. Biofuels Policy New legal framework in force since January 2007
Old system: Bio fuels were tax exempt (tax advantage: Diesel: 0,47 €/L; Gasoline: 0,65 €/L)
High biofuels consumption yielded drastically reduced energy tax income:
Year
bn €
2004
0,6
2005
1,2
2006
2,1

4. Bio fuel quota act – Quota issues
Since January 2007 companies which place motor fuels on the market have been obligated to ensure that a legally defined minimum share (quota) of the fuel they sell is biofuel.
Based on the energy content, the quota is set at 4.4% for diesel and 1.2% for petrol for 2007.
In 2009 an overall quota of 6.25% for both types of fuel will be introduced. No changes with regard to the minimum quotas for either diesel or petrol.
Over the following years the overall quota will be raised to 8% by The minimum quotas for petrol and diesel will remain applicable after 2010.

5. Biofuels quotas Diesel Petrol Overall 2007 4,4 % 1,2 % 2008 2,0 % 2009
2,8 %
6,25 %
2010
3,6 %
6,75 %
2011
7,0 %
2012
7,25 %
2013
7,5 %
2014
7,75 %
2015
8,0 %
Quota relate to energy content.
Diesel and petrol quota will stay in place after 2009.

6. Bio fuel quota act – Tax issues
Decreasing tax concession for pure biodiesel and vegetable oil outside the quota for a transitional period until the end of 2011
Pure biofuels counted toward the quota are fully taxed.
Tax concessions are granted for second generation biofuels, biogas and pure bioethanol (E85) until 2015.

7. Bio fuel quota act – Tax issues
(Cent/l)
Until 7/2006
8-12/2006 9
2007
2008
15,1
2009
21,1
2010
27,1
2011
33,0
Ab 2012
45,0
Within the quota biofuels are fully taxed.
Decreasing tax incentive for pure biodiesel and pure vegetable oils outside the quota.

8. Sustainability aspects
Bio fuel quota act authorises the government to set minimum sustainability criteria in three areas:
sustainable cultivation of agricultural land
protection of natural habitats
minimum level of GHG savings
If criteria are not fulfilled:
No tax incentive.
Biofuel not counted towards quota.

9. GHG multiplication factor
Biofuel quota act authorises the government to introduce a multiplication factor for different biofuels based on their GHG savings.
Multiplication
factor
x %
100 %
Min. GHG
reduction
GHG reduction

10. Sustainability aspects
Goverment intends to use all mentioned authorisations by issuing a sustainability regulation.
Currently on-going work on draft regulation.

11. FQD – Early action in GHG reduction
Early action needs to be taken into account.
Uniform EU baseline, e.g. GHG emissions of fossil fuels (without biofuels) in 2010

12. Research on GHG reduction scheme
Presentation by Horst Fehrenbach (IFEU)