European Commission proposes revamp of EU biofuels policy

On October 17, 2012, the European Commission adopted a proposal for a new directive amending the two major pieces of EU legislation on biofuels: Directive 2009/28/EC on the promotion of the use of energy from renewable sources (Renewable Energy Directive or “RED”) and Directive 98/70/EC relating to the quality of petrol and diesel fuels (Fuel Quality Directive or “FQD”), both in force since 2009.1

Both the RED and the FQD intend to promote the use of biofuels in the EU by establishing a 10 percent share objective for the use of renewable energy in transport by 2020, and 6 percent reduction objective for greenhouse gas (GHG) emissions associated with transporting fuel. Given the absence of carbon-neutral fully marketable alternatives such as electric cars or advanced biofuels, these EU objectives mainly rely on the use of conventional biofuels (oil based biodiesel and sugar and cereal based bioethanol).

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