Trade
In 2007 the EU will have imported roughly 800 mln litres* of ethanol for the fuel
stream – that equals more than one third of total EU-production* from Brazil only.
And the trend is still pointing up-wards. The number shows, that Europe is already
today the continent, which is very open to biofuel imports if not the most open
one in the world. The EU allows duty free ethanol access from the least developed
countries (LDC), countries belonging to the African, Caribbean and Pacific group
of states (ACP) and states falling under the Generalised System of Preferences (GSP+).
A total suppression of import duties is thus not only unnecessary, but would even
harm the development of those regions as well as the European agricultural and industrial
sector. Replacing all our fuel ethanol needs by imports would undermine the security
of supply goal as well as sustainability objectives. Unrestrained expansion from
production in Third countries could after all result in unwanted environmental effects.
eBIO therefore would like to see a coherent European import policy in 2008 to close
existing loopholes and thus to pave the way for a strong domestic industry. Part
of this policy needs to be the introduction of a single tariff line for all ethanol
imported for fuel use.
Feedstock availability
The year 2007 was marked by high grain prices caused by strong increased demand
in Asia, very poor weather conditions in many grain exporting countries and a strong
increase in speculation with soft commodities. These higher prices also triggered
an emotional debate on the impact of biofuel product and food availability and prices.
Ironically, the first that fell victim of these high grain prices was the biofuel
industry itself as it squeezed profitability margins in the bioethanol sector substantially.
As a reaction on this price development the European Union decided to abolish for
at least one year the set aside obligation, which until the early Nineties subsidized
non-production. The expected extra yield of certainly more than 10 mio tonnes will
have a positive effect on the overheated cereals market in 2008 and is going to
ease the situation of many European ethanol producers. Furthermore, eBIO expects
that the promotion of bioethanol will give a new incentive to European farmers to
adapt their production to the new market realities. Increased yields, rationalized
production processes and a market-based agricultural business will secure food and
fuel supply for the decades to come.
For additional information contact:
European Bioethanol Fuel Association (eBIO)
Ms Gloria Gaupmann, Assistant Secretary General