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EU, UK Move on Biofuel Sustainability
EU - The EU is moving to tighten up the environmental standards around new measures to lift the use of biofuels across the region. Britain, meanwhile, has ordered a review of its national transport green fuels target on the eve of its introduction.In January, the EC proposed as part of its climate policy package targets to lift the proportion of renewable fuels sold for transportation in the EU to 10 per cent of all fuels by 2020. But the EC and member governments have come under pressure from environmentalists to ensure that the uptake of biofuels actually leads to net reductions in greenhouse gas emissions. And in a sustainable way without threatening further forest clearing and the squeezing out of food crops.
The European Commission has since proposed that the carbon dioxide emissions from the use of biofuels must be at least 35 per cent lower than the fossil fuels they are substituting after taking into account the full life cycle of the biofuels – their production, transportation to market and use. But a biofuels task group set up by EU governments has concluded that the 35 per cent benchmark is not high enough, EurActiv reports.
It now appears that what will be proposed for inclusion in the relevant laws – both the Renewables and Fuel Quality Directives – will be a benchmark that starts off at 35 per cent and then rises over time to a higher level. Agreement has not been reached in the task group on what the higher level would be but somewhere between 40 and 60 per cent is believed under consideration.
British review
A similar review of standards is underway in the UK where transport minister Ruth Kelly has asked the Renewable Fuels Agency to look into the sustainability implications of the Renewable Transport Fuels Obligation (RTFO).
The RTFO comes into force in Britain this month requiring 2.5 per cent of road fuels sold to be biofuels. It will rise to 5 per cent by 2011. Green groups have called on the government to postpone its introduction until the benefits have been assured.
The Renewable Energy Association says the UK biofuels industry is committed to sustainable production and use and green groups are risking losing the valuable contribution green fuels stand to make to the climate cause.
Biofuel scam
A prime example of unsustainable practices in the biofuels market is the recently-exposed trading scam which sees biofuel merchants taking cynical but legal advantage of US agricultural subsidies.
Under the “splash and dash” scam, European traders ship biodiesel to the US where a token drop of American fuel is added in order to claim a 20 cents per litre subsidy for the whole shipment. It's then shipped back to the EU and sold at lower prices, with local producers unable to compete.
The practice means any emissions savings from the use of the green fuel instead of petro-diesel are cancelled out by the shipping emissions associated with the return journey across the Atlantic. The EU is considering what action it take to prevent the practice.
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