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Compromise Deal on Renewable Energy and Climate Change Package

EU leaders struck a compromise deal on the renewable energy and climate change package at a Summit held in Brussels in December, which includes binding measures to ensure that 10% of transport fuels come from renewable energy, such as biofuels, by 2020.  

Under the move, EU heads of state and governments stuck to their ambitious targets of cutting greenhouse gas emissions by at least 20% for renewable energy in the total energy consumption by 2020. This figure could increase to 30% if other developed countries agree to comparable reductions. In order to achieve these cuts, EU leaders agreed that at least 20% of energy used in the EU should come from renewable energy sources by 2020. They added that 10% of transport fuels must come from renewable energy, such as first or second-generation biofuels, by 2020.

The compromise backs the target of at least 10% renewable energies in the transport sector by 2020:

• "second-generation" biofuels produced from waste, residues, or non-food cellulosic and ligno-cellulosic biomass will be double credited towards the 10% target;
• renewable electricity for trains will be counted only once;
• renewable electricity consumed by electric cars will be considered 2.5 times its input;
• to be counted, biofuels must save at least 35% of greenhouse gas emissions compared to fossil fuels. From 2017, greenhouse gas emission savings of existing installations must be at least 50%, those of new installations at least 60%;
• the Commission will develop a methodology to measure the greenhouse gas emissions caused by indirect land use changes.  This is when crops for biofuel production are grown in areas which have previously been used to grow a food crop and this food crop production then moves to other areas which were not in use before (e.g. existing forests).
• Around a third of the target is to be made from renewable energy such as electric vehicles. 

First / Second Generation Biofuels

But in a bid to encourage the use of second-generation biofuels, they stipulated that second-generation biofuels, produced from waste, residues, or non-food cellulosic and ligno-cellulosic biomass, will be double credited towards the 10% target. While renewable electricity consumed by electric cars will be considered 2.5 times its input and renewable electricity for trains will be counted only once. First generation biofuels, which are currently widely used in the EU, include biodiesel made from oilseeds and bioethanol made from cereals or sugar containing plants and blended with diesel / petrol. An increase in their use could provide extra sources of income for farmers.

Sustainability Criteria

In order to count towards the 10% target, EU leaders agreed that biofuels must respect strict environmental sustainability criteria. This will ensure that any fuel must result in a minimum greenhouse gas saving of 35%, when compared with conventional fuel, rising to 50% for existing installations and to 60% for new installations in 2017. Furthermore, the Commission will develop a methodology to measure the greenhouse gas emissions caused by indirect land use changes. This is when crops for biofuel production are grown in areas which have previously been used to grow a food crop and this food crop then moves to other areas which were not used before, such as existing forests. 

Review

In addition, EU leaders agreed that the Commission will review implementation of the EU directive to promote renewable energy use by 2014, but that this will not affect the overall 20% target and it will serve to improve, if necessary, the efficiency of cooperation mechanisms.   

5/1/09