THE RENEWABLE ENERGY DIRECTIVE

Brussels, 15 February 2008Brussels, 15 February 2008

Mauro POINELLIMauro POINELLIDG AGRI, European CommissionDG AGRI, European Commission

THE JAN 23 THE JAN 23 “CLIMATE CHANGE PACKAGE”“CLIMATE CHANGE PACKAGE”

• ETS Scheme

• RES directive proposal

• Environmental State Aid Guidelines

(other energy and environmental policies)

THE RES DIRECTIVE PROPOSAL

• Reducing GHG emissions

• Enhancing security of energy supply

• Promoting technological development

• Providing opportunities for regional development

INCREASE USE OF RENEWABLE ENERGIES FOR:

……BY MEANS OF MANDATORY TARGETSBY MEANS OF MANDATORY TARGETS

• Mandatory shares in 2020:

– 20% overall RE in EU energy consumption

• Break down by MS

– 10% min RE in petrol & diesel used in transport • Binding for each MS

……TO BE ACHIEVED TO BE ACHIEVED WITH FLEXIBILY & SUBSIDIARITYWITH FLEXIBILY & SUBSIDIARITY

• Intermediate targets– Overall indicative “trajectories”

• National action plans– Sectoral targets for H/C, e, T– Measures to be taken– Develop availability of biomass

...TO BE ACHIEVED COST-EFFECTIVELY...TO BE ACHIEVED COST-EFFECTIVELY

• Physical and virtual trade of RE across UE

• GO:– Extension to H (e)– Standardized requirements– Safeguards for MS in well justified cases

• Removal of administrative, grid, market barriers

…TO BE ACHIEVED SUSTAINABLY:

Sustainability Criteria apply to:

– Biofuels (liquid and gaseous fuels used in transport)

– Other bioliquids (liquid fuels used in heating and electricity)

• By 2010, the Commission will report on criteria for other energy uses of biomass

THE SUSTAINABILITY CRITERIATHE SUSTAINABILITY CRITERIA

Aimed to ensure:

• A minimum GHG saving

• Avoid loss of high biodiversity land

• Avoid loss of high carbon-stock land

• Environmental requirements for agriculture

• Diversification of feedstocks

Ensuring GHG saving

Min. saving of 35%, compared to fossil fuel

• LC: from cultivation to final use• The directive set:

– Default values– Method for calculating GHG saving

Biofuel producers can choose to:– use default values; or– provide actual values, if so wished

Land use change, is part of the LC

Greenhouse gas savings from important first generation biofuels (lifecycle basis)

0%

10%

20%

30%

40%

50%

60%

70%

80%

typicaldefault

Source: proposed renewable energy directive (data from JEC Consortium)

Biodiversity criteria

No use of raw material from:

• forest undisturbed by significant human activity

• highly biodiverse grassland

• nature protection areas, unless compatible with

nature protection

High carbon-stock land criteria

No conversion of:

• wetland; or

• “continuously forested area”.

…and

Land use change, appropriately considered– Disincentive for grassland;– Incentive for desert land.

In generalIn general, demand expansion for agricultural commodities has so , demand expansion for agricultural commodities has so far been met mainly by productivity increases, not land use changefar been met mainly by productivity increases, not land use change

Change in production volumes and land use, 1980-2006

43%

64%

167%

17%

46%

-6%cereals sugar oil crops

production (tons)

land area (hectares)

Source: FAOSTAT

In particular for biofuelsIn particular for biofuels, some of the extra demand for , some of the extra demand for land is offset by reduced demand for feedsland is offset by reduced demand for feeds

m

Source: Sheffield Hallam University (2004); Technical assistance for various aspects related to the promotion of the use of biofuels in the EU - Eltrop et al. ( 2007)

Agricultural crops: ratio (mass) between biofuel raw material and by-product (generally used for animal feed)

64%

39%

20%

36%

61%

80%

wheat rape seed soya

raw material for biofuel

by-product

Environmental requirements for agriculture (for EU only)

biofuel production must comply with the “cross compliance” rules already in force under the CAP.

Diversification of feedstocks

Promotion of more technologically advanced biofuels

by double counting biofuel from:- wastes & residues;- ligno-cellulosic material; - non-food cellulosic material.

ENSURING THE CRITERIA ARE ENSURING THE CRITERIA ARE RESPECTEDRESPECTED

Penalty: only sustainable biofuels can be:

• Counted against the EU target• Considered eligible for financial support• Counted for the national biofuel obligation

Simplicity: only one scheme for the whole EU

• MS must apply the criteria set in the Directive• MS cannot go further

ENSURING THE CRITERIA ARE VERIFIED

The mass balance system:• Criteria apply to each consignment• Tracking consignments and evidence

• MS have primary responsibility for verification

“Certification schemes”• Accreditation of “certification schemes”• International agreements• MS must accept the evidence of these schemes

Review of the directive

MS reporting on:

• Developments in the use and availability of biomass resources for energy purposes

• Price and land use effects of biomass use

• Impacts of biofuel production on biodiversity, water resources, water quality and soil quality

Commission reporting on:

• Environmental benefits and costs of different biofuels

• Impact of increased demand on sustainability

• Impact on the food security in developing countries

• Impact on biomass-using sectors

… and, if appropriate, propose corrective action.

Transposition deadline

31 March 2010

-------------------------------------------------

Thank you