EU negotiators close to deal on biofuels

ENDS Europe Daily - November 19, 2008

Source: http://www.endseuropedaily.com/articles/index.cfm?action=article&ref=26614

MEPs and EU governments are close to reaching a deal on proposals to boost consumption of biofuels within the bloc, as part of ongoing negotiations on a draft EU renewable energy directive, ENDS has learnt. According to a source close to the parliament's lead negotiator – Luxembourg's Green MEP Claude Turmes – an agreement on the biofuel provisions in the draft law could be sealed by next week. Key to any deal will be a willingness by EU governments to include the impact of indirect land-use change when calculating greenhouse gas emissions from biofuels. "We understand that more and more member states are ready to accept such a proposal", the source said.

The most likely compromise will see a clause added to the directive calling on the European commission to propose detailed rules for quantifying the impact of indirect land use change in 2010. These would enter force in 2012. In return, MEPs will have to drop their demands for sub-targets in the EU's overall 10 per cent target for renewables in transport by 2020, which almost all member states oppose. The parliament had said that at least two-fifths of this share should come from "non-food and feed competing" second-generation biofuels, or from cars running on green electricity and hydrogen. In other areas of the proposal, the main sticking point is the plan for a review in 2014 of the overall renewables target for 2020, proposed by the French EU presidency. MEPs are deeply opposed to "a review clause that could undermine legal certainty" in the law, according to the source. Member states are divided on the merits of such a review, and the parliament hopes it can exploit this division to have the clause deleted.

Both institutions are also sticking to their separate positions on proposed interim targets for the share of renewables in the run-up to 2020. The parliament wants to make the interim targets legally binding on member states, but the council believes they should remain purely indicative. But agreement has largely been reached on the proposed flexibility mechanisms available to member states in achieving their national renewables targets. Both the council and parliament have rejected the commission's proposal for a mandatory trading scheme between countries in favour of more flexible rules. The French presidency is expected to present updated compromise proposals for approval by EU governments on Friday, ahead of the next round of talks with MEPs, scheduled for next Wednesday.