1. Biofuels – EU policy context Funding and Legislation Workshops Glasgow, 26 May 2011 Francesca Giannini Scotland Europa

2. White Paper on the Future of Transport Commission Communication – March 2011; pending Council/Parliament adoption  Roadmap for next decade (40 initiatives proposed)  Goal of 60% cut in transport emissions by 2050  From “user pays” to “polluter pays” Key targets include:  Halve use of ‘conventionally fuelled’ cars in urban transport by 2030; phase out completely in cities by 2050; CO2-free movement of goods in major urban centres by 2030  40% low carbon fuels in aviation; 40% cut in shipping emissions by 2050

3. Renewables Directive New Directive adopted in 2009 (replaces 2003 Directive):  Legal target: 10% renewable fuels in transport mix of each EU country by 2020 National Action Plans indicate will reach 11% by 2020  1 st generation biofuels expected to make up vast majority of target  EU intention for 2 nd generation fuels/hydrogen/electricity to contribute from 2015

4. Fuel Quality Directive New Directive adopted in 2009 (replaces 1998 Directive):  EU-wide quality standards ( pollutant emissions) for fuel sources  New requirement – road transport fuel suppliers to reduce emissions by 6% / unit energy by 2020 May be increased to 10% after 2012 review  Monitoring “well to wheel” CO2 emissions & reducing against fossil fuel baseline  Allows higher volumes of biofuels in petrol

5. Sustainability criteria Apply to Renewables & Fuel Quality Directives:  Must deliver GHG savings of minimum 35% Target rises to 50% in 2017; 60% for fuels from new plants in 2018  Should not come from forests, wetlands & nature protection areas Only biofuels that meet the EU's sustainability requirements can count towards targets  Guidelines on additional national voluntary schemes published – June 2010 Land use change  Stakeholder consultation on indirect land use change impacts – autumn 2010  Commission report in December 2010 Decision not to legislate at this stage – uncertainties in impact calculation models  Impact assessment to be published – July 2011 May be accompanied by legislative proposals on indirect land use change

6. Clean Vehicles Directive Adopted in 2009:  Requires lifetime energy & environment impacts taken into account in public procurement Including CO2 emissions, energy consumption, pollutant emissions  Sets common rules to calculate lifetime emissions Aims:  Internalising external transport costs  Encourage wider deployment of clean vehicles

7. Energy Taxation Directive Proposal to revise Directive – April 2011; Pending Council/Parliament adoption  Sets minimum duties – heating & transport fuels  New proposal to restructure tax to base on CO2 & energy content (not volume):  €20 per tonne CO2  €9.6/GJ for motor fuels Aims:  CO2 price signal for business and consumers  Preferential treatment of low CO2 fuels (inc. biofuels)  Encourage energy efficiency If agreed, would enter into force 2013

8. Strategic Energy Technology Plan European Industrial Bioenergy Initiative (EIBI) – launched in 2010  Public/private/academic partnership  Direction from European Biofuels Technology Platform  Expected investment need – €9 bn to 2020 Objectives:  enable commercial availability of advanced bioenergy at large scale & advanced biofuels up to 4 % of EU transport needs by 2020  strengthen EU technology leadership Implementation (2010-2012):  Demonstration projects: first commercial demonstration unit  Flagship project: first economically viable commercial scale unit Future actions:  Biofuels for aviation sector; 2 nd generation fuels; sustainability criteria  Longer term R&D – innovative bioenergy value chains

9. Future initiatives EU Strategic Transport Technology Plan – due mid-2011 Aims:  Coordinate & pool RD&D of key sustainable transport technologies Roadmaps for key technologies  Set focus of EU policy & funding support for transport sector Biofuels expected to be covered in Initiative on Fuels and Energy Technologies Stakeholder consultation closes 27 May Further actions  clean transport systems strategy in 2012  three-part strategy for transport in cities – also link to Smart Cities initiative

10. Further information:  www.ec.europa.eu/transport/strategies/2011_white_paper_en.htm  www.ec.europa.eu/energy/renewables/biofuels/biofuels_en.htm  www.ec.europa.eu/taxation_customs/taxation/excise_duties/energy_product s/legislation/index_en.htm  www.setis.ec.europa.eu/activities/implementation- plans/European%20Industrial%20Bioenergy%20Initiative_-EIBI.pdf/view