1. Folie 1 Bioenergy and Climate Protection Programme of the Federal Government Clemens Neumann, BMELV 12. November 2008

2. 2 Main reasons behind political action towards bioenergy Environmental/climate protection Security of energy supply –Total share of energy imports in Germany 70% –Import share oil almost 100% Additional income for farmers and foresters Employment in rural regions Technological development

3. 3 Energy- and Climate-Programme Förderung der Kraft-Wärmekopplung und Ausbau des Nah- und Fernwärmenetzes Better integration of renewables in the electricity-net Promoting programs Feed-in regulations für biogas in NG-net Renewable-Energy-Heat-Regulation Strengthening R&D aiming better climate protection and energy-efficiency (part of high-tec strategy) Realisation of international projects, close political dialogue and cooperation in R&D

4. 4 European Council March 2007 CO 2 – reduction (binding): 20 % by 2020 if other industrialised countries take part: 30 % by 2020 Share in renewable energies of total energy consumption: 20 % by 2020 Share of renewables in transport 10 % by 2020 European Objectives

5. 5 Quelle: BMELV, BLE, FNR Cultivation area of bioenery

6. 6 Folie 6 Kraftstoffe Renewable Energy in Germany in 2007 Share in renewable energy of primary consumption of total energy: 8,6 % Share provided by biomass: 5,9 % Biofuels: 100 % (no other renewable source available)

7. 7 Current Situation Source: AGEE-Stat Share of Bioenergy in Renewables Use 2007 8.6% of energy is covered by renewables, of which 69% is biomass

8. 8 Biofuels in Germany Quelle: BAFA/FNR (Werte 2007: Schätzung) [in 1000 T] Share of biofuels (energetic): 2005: 3,6 % 2006: 6,3 % 2007: 7,3 %

9. 9 Fuel standards Blendings in Germany It is allowed to blend fossil fuels with up to 7 % (vol.) biodiesel or 5% bioethanol Progress on E10 is stopped, because of risks of damage for more than 3 mio. cars.

10. 10 Folie 10 Biofuels Quotas Act / Energy Taxation Act Biofuels Quotas Act (December 2006) Intention: Increasing share of biofuels to > 6,25% by 2015 (relating to energy content) Fuel selling enterprises are obligated to sell a minimum quota of biofuels Biofuels are fully taxed within the quota Pure biofuels enjoy tax privileges until 2012 E85 and the 2nd generation of biofuels enjoy tax exemption until 2015 (pure as well as in blendings) Pure biofuels used in agriculture remain tax-exempt

11. 11 Framework Conditions for Biofuels Germany Biofuel Quota Act (Jan 2007) –Introduction of biofuel quotas for: Producers and traders of Diesel fuel and gasoline Producers of biofuels (biodiesel, vegetable oils) –Quotas related to energy content YearTotal quotaDiesel quotaPetrol quota 2007-4,401,20 2008-2,00 20095,252,80 20106,253,60 20116,25 20126,25 20136,25 20146,25 20156,25

12. 12 Energy Taxation Act (August 2006) Until July 2006: Compensation of cost disadvantages of biofuel production plus small incentive Since August 2006: Avoiding overcompensation of fiscal support Gradual increase of taxes for biodiesel and vegetable oil fuel Adjustment of fiscal support of biofuels due to changes in cost structures

13. 13 Framework Conditions for Biofuels Germany Energy Tax Act (Aug 2006) –Since Aug 2006 taxation of pure biofuels –Tax exempted: 2nd generation until 2015 Biofuels used in agriculture and forestry YearTax rate biodiesel (Cents/l) Tax rate vegetable oil (Cents/l) 200690 200792,15 20081510 200918 20102426 20113033 From 2012 45

14. 14 Market Incentives Programme Promotion of heat generation using renewable energy sources. Investment grants. KfW programme. From 2009 up to 500 mln. € p. a. Apart from basic subsidies, an innovation bonus provides for higher subsidisation of things like additional emission reductions and improved efficiency, large solar collector systems, process heat and the use of biomass in schools and churches.

15. 15 ELECTRICITY: Renewable Energies Act (EEG) July 2004; effective instrument in electricity generation from RenEn Applies to: wind, solar, biomass, geothermic energy Guarantee of feed-in of produced electricity from renewable energies Feed-in tariff depends on plant-capacity/size, used technology and thermal utilization The Renewable Energy Sources Act (EEG) was amended in 2008 based on the results of an evaluation report (2007) Guaranteed payments will range from 3,5 (huge hydropower) to 43,01 ct/kWh e (small solar on buildings). An extra bonus is guaranteed for renewable raw materials (2,5-11 ct/kWh el ) (biomass grown exclusively for energy use; use of residual and secondary products is allowable but is not subsidised) or combined-heat and power generation

16. 16 Folie 16 Sustainable biomass production EU/Germany:Imports of biomass are increasing. increasing critics in media and public: Biomass production under doubtful conditions Biomass production in connection with clearing tropical rainforests Objective: Setting up a certification system for biomass production which is valid around the world. German government is working together with European partners and producer countries and encourages discussion on the international level (FAO/ Global Bioenergy Partnership).

17. 17 National measures to ensure sustainable biomass production Biofuels Quota Act The Biofuels Quota Act includes the possibility to add sustainability regulations as precondition for later promotion Biofuels have to meet certain criteria Requirements of a sustainable land-use of agricultural area and Requirements of protection of natural habitats and Special potential of Green House Gas reduction (30 % to 40 %) Sustainable production will be necessary to obtain support (tax and quota)

18. 18 Discussion: Biofuels vs. Food Thesis: „Increasing food prices caused by demand for biofuels“ Fact is: Biofuels only have little influence Main reasons for increasing food prices in the past are: Global increasing demand for food and feed Change in consumption habits (more meat in developing countries) Bad harvests caused by weather Low stock levels Effects caused by venturers

19. 19 Research and Development (BMELV) Actual focus points: BtL (Research and Development) Biomass combustion: Reduction of dust emissions Innovative utilisation of biogas Biogas production: Process optimisation in fields of microbiology and process control => Agency for Renewable Resources (FNR)

20. 20 So finally the aim of our policy is to avoid the following:

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22. 22 Thank you for your attention!