The EU is entering the next phase with the Renewable Energy bill

Roughly one month after the U.S.A. signed their Energy Independence and Security Act (EISA) into law, the Commission’s proposal for a Directive on Renewable Energy Sources has seen the light of day. It aims at further promoting all renewable energy sectors in the EU since they have a positive impact on the environment, security of supply and economic growth in the EU. But is this proposal also the right way forward for the European bioethanol industry? eBIO will take a closer look on the pros and cons of the proposed Directive.

Center piece – the 10% binding target
The introduction of a minimum binding 10% biofuels target per energy content in 2020 is obviously very good news for the industry. By affirming what has already been agreed upon at the highest political level of the EU in March 2007 the Commission acknowledges one important thing: Biofuels are for the time being the only well-know, easy to use and reliable domestic energy source that additionally curbs greenhouse gas (GHG) emissions from the transport sector. As we could witness in the U.S.A. and Brazil an obligation has a positive effect on the growth of the sector. Finally, it grants part of the investment security needed in Europe to bring this young industry forward.
However, the Commission only went half way and failed to define intermediate targets for biofuels – as it did for the other sectors. The experience with the current biofuels directive shows that most of the Member States tend to wait a long time with the measures necessary to promote biofuels. Intermediate targets are thus needed to prevent a rude awakening in 2019 and to step-wise attain the 10% target.