In January 2007 the European Commission put forward an integrated energy/climate change proposal that addressed the issues of energy supply and climate change. Two months later, European Heads of State endorsed the plan and agreed to an Energy Policy for Europe.
The plan called for a:
20% increase in energy efficiency
20% reduction in greenhouse gas (GHG) emissions
20% share of renewables in overall EU energy consumption by 2020
10% biofuel component in vehicle fuel by 2020
These targets are indeed very ambitious: the share of renewable energy in 2007 was only 8.5%. To achieve a 20% share by 2020 will require major efforts across all sectors of the economy and by all Member States. A European approach is needed to ensure that the effort for reaching the 20% target is shared equitably between Member States.
Legislative package in the field of energy and climate
On 23 January 2008, the European Commission put forth an integrated proposal for Climate Action [1], referred to as the "Energy-Climate Legislative Package". After nearly a year of intensive negotiations, the Energy-Climate Package was finally adopted by the 27 EU Member States on 12 December 2008, by the European Parliament on 17 December 2008 [2], and finally by the Council of the European Union on 6 April 2009 [3]. In order to achieve the European renewable energy targets, the Council adopted the European Directive 2009/28/EC [4]. The latter is presented below.
European Directive 2009/28/EC
The European Directive 2009/28/EC of 23 April 2009 on the promotion of renewable energy [4] aims at achieving by 2020 a 20% share of energy from renewable sources in the EU's final consumption of energy and a 10% share of energy from renewable sources in each member state's transport energy consumption.
To achieve these objectives, the directive for the first time sets for each member state a mandatory national target for the overall share of energy from renewable sources in gross final consumption of energy, taking account of countries' different starting points. The main purpose of mandatory national targets is to provide certainty for investors and to encourage technological development allowing for energy production from all types of renewable sources. To ensure that the mandatory national targets are achieved, member states have to follow an indicative trajectory towards the achievement of their target.
Each EU Member State will adopt a national renewable energy action plan setting out its national targets for the share of energy from renewable sources consumed in transport, electricity, heating and cooling in 2020 and will notify it to the Commission by June 2010. To reach the mandatory targets, Member States will apply support schemes or measures of cooperation between different member states and with third countries.
Global target of 20% renewable energy in the final energy consumption of the EU
If the overall 20% target for renewables is to be reached in an effective manner, the individual targets for each Member State have to be determined as fairly as possible. The Commission has therefore implemented a simple method to define the targets, which provides for a fair distribution of effort across the Member States. In addition, the creation of a tradable guarantee of origin regime allows Member States to reach their targets in the most cost-effective way possible: instead of developing local renewable energy sources, Member States will be able to buy guarantees of origin (certificates proving the renewable origin of energy) from other Member States where the development of renewable energy is cheaper to produce.
The targets of individual Member States by 2020 are presented in the table below.
Table: Objectives of Member States in terms of the share of renewable energy by 2020
Country
Share of renewable energy
2005
2020
AT
Austria
23.3
34.0
BE
Belgium
2.2
13.0
BG
Bulgaria
9.4
16.0
CY
Cyprus
2.9
13.0
CZ
Czech Republic
6.1
13.0
DE
Germany
5.8
18.0
DK
Denmark
17.0
30.0
EE
Estonia
18.0
25.0
EL
Greece
6.9
18.0
ES
Spain
8.7
20.0
FI
Finland
28.5
38.0
FR
France
18.3
23.0
HU
Hungary
4.3
13.0
IE
Ireland
3.1
16.0
IT
Italy
5.2
17.0
LT
Lithuania
15.0
23.0
LU
Luxembourg
0.9
11.0
LV
Latvia
34.9
42.0
MT
Malta
0.0
10.0
NL
Netherlands
2.4
14.0
PL
Poland
7.2
15.0
PT
Portugal
20.5
31.0
RO
Romania
17.8
24.0
SE
Sweden
39.8
49.0
SI
Slovenia
16.0
25.0
SK
Slovakia
6.7
14.0
UK
United Kingdom
1.3
15.0
EU-27
EU 27
8.5
20.0
Target of 10% renewable energy in the transport sector
The 10% target for renewable energy in the transportation sector has been set at the same level for each Member State in order to ensure consistency in transportation fuel specifications and availability. Member States which do not have the relevant resources to produce biofuels will easily be able to obtain renewable transport fuels from elsewhere. While it would technically be possible for the European Union to meet its biofuel needs solely from domestic production, it is both likely and desirable that these needs will in fact be met through a combination of domestic EU production and imports from third countries.
Within the past few years, concerns have been raised about whether biofuel production is actually sustainable. Whilst biofuels are a crucial part of renewable energy policy and a key solution to growing emissions in the transport sector, they must not be promoted unless they are produced sustainably. Although the majority of biofuels currently consumed in the EU are produced in a sustainable manner, the concerns are legitimate and need to be addressed.
The Directive therefore sets out stringent environmental sustainability criteria to ensure that biofuels that are to count towards the European targets are sustainable and that they are not in conflict with our overall environmental goals. This means that they must achieve at least a minimum level of greenhouse gas savings and respect a number of requirements related to biodiversity. Among other things this will prevent the use of land with high biodiversity value, such as natural forests and protected areas, being used for the production of raw materials for biofuels.
The articles of the Directive 2009/28/CE concerned more particularly with biofuels are the articles 17 to 21. The main elements of these articles are summarized below.
Regardless of whether the raw materials were cultivated inside or outside the territory of the Community, biofuels can be accounted for with respect to the target of 10% renewable energy in transport (and therefore with respect to the national targets in terms of renewable energy) and benerit from possible financial support from the Member States, only if they fulfil the following sustainability criteria:
The greenhouse gas emission saving from the use of biofuels shall be at least 35%
Biofuels shall not be made from raw material obtained from land with high biodiversity value (i.e. primary forest and other wooded land where there is no clearly visible indication of human activity, areas designated for nature protection purposes or for the protection of rare, threatened or endangered ecosystems or species, or highly biodiverse grassland).
Biofuels shall not be made from raw material obtained from land with high carbon stock (i.e. wetlands, continuously forested areas).
Biofuels shall not be made from raw material obtained from peatland.
For information purposes, the articles 17-21 of the Directive 2009/28/CE are quoted below. It should be mentioned that this is only an abridged and incomplete version of the articles, limited to the most significant elements only. The complete articles can be found on the legal notice of the Directive [4].
Article 17. Sustainability criteria for biofuels and bioliquids
Irrespective of whether the raw materials were cultivated inside or outside the territory of the Community, energy from biofuels and bioliquids shall be taken into account for the purposes referred to in points a), b) and c) only if they fulfil the sustainability criteria set out in paragraphs 2 to 6:
measuring compliance with the requirements of this Directive concerning national targets;
measuring compliance with renewable energy obligations;
eligibility for financial support for the consumption of biofuels and bioliquids.
However, biofuels and bioliquids produced from waste and residues, other than agricultural, aquaculture, fisheries and forestry residues, need only fulfil the sustainability criteria set out in paragraph 2 in order to be taken into account for the purposes referred to in points a), b) and c).
The greenhouse gas emission saving from the use of biofuels and bioliquids taken into account for the purposes referred to in points a), b) and c) of paragraph 1 shall be at least 35%.
With effect from 1 January 2017, the greenhouse gas emission saving from the use of biofuels and bioliquids taken into account for the purposes referred to in points a), b) and c) of paragraph 1 shall be at least 50%. From 1 January 2018 that greenhouse gas emission saving shall be at least 60% for biofuels and bioliquids produced in installations in which production started on or after 1 January 2017.
The greenhouse gas emission saving from the use of biofuels and bioliquids shall be calculated in accordance with Article 19(1).
In the case of biofuels and bioliquids produced by installations that were in operation on 23 January 2008, the first subparagraph shall apply from 1 April 2013.
Biofuels and bioliquids shall not be made from raw material obtained from land with high biodiversity value, namely land that had one of the following statuses in or after January 2008, whether or not the land continues to have that status:
primary forest and other wooded land where there is no clearly visible indication of human activity and the ecological processes are not significantly disturbed;
areas designated for nature protection purposes or for the protection of rare, threatened or endangered ecosystems or species;
highly biodiverse grassland.
Biofuels and bioliquids shall not be made from raw material obtained from land with high carbon stock, namely land that had one of the following statuses in January 2008 and no longer has that status:
wetlands;
continuously forested areas;
land spanning more than one hectare with trees higher than five metres and a canopy cover of between 10 % and 30 %, or trees able to reach those thresholds in situ […].
Biofuels and bioliquids shall not be made from raw material obtained from land that was peatland in January 2008.
Agricultural raw materials cultivated in the Community and used for the production of biofuels and bioliquids shall be obtained in accordance with the requirements and standards under the provisions referred to under the heading "Environment" in part A and in point 9 of Annex II to Council Regulation (EC) No. 73/2009 of 19 January 2009 [5] and in accordance with the minimum requirements for good agricultural and environmental condition defined pursuant to Article 6(1) of that Regulation.
[…]
Article 18. Verification of compliance with the sustainability criteria for biofuels and bioliquids
Where biofuels and bioliquids are to be taken into account for the purposes referred to in points a), b) and c) of Article 17(1), Member States shall require economic operators to show that the sustainability criteria set out in Article 17(2) to (5) have been fulfilled. For that purpose they shall require economic operators to use a mass balance system […].
The Commission shall report to the European Parliament and the Council in 2010 and 2012 on the operation of the mass balance verification method described in paragraph 1 and on the potential for allowing for other verification methods in relation to some or all types of raw material, biofuel or bioliquids.
Member States shall take measures to ensure that economic operators submit reliable information and make available to the Member State, on request, the data that were used to develop the information. Member States shall require economic operators to arrange for an adequate standard of independent auditing of the information submitted, and to provide evidence that this has been done.
Les obligations prévues au présent paragraphe s'appliquent indépendamment du fait que les biocarburants ou les bioliquides sont produits à l'intérieur de la Communauté ou importés.
The Community shall endeavour to conclude bilateral or multilateral agreements with third countries containing provisions on sustainability criteria that correspond to those of this Directive. Where the Community has concluded agreements containing provisions relating to matters covered by the sustainability criteria set out in Article 17(2) to (5), the Commission may decide that those agreements demonstrate that biofuels and bioliquids produced from raw materials cultivated in those countries comply with the sustainability criteria in question.
The Commission may decide that voluntary national or international schemes setting standards for the production of biomass products contain accurate data for the purposes of Article 17(2) or demonstrate that consignments of biofuel comply with the sustainability criteria set out in Article 17(3) to (5).
The Commission may decide that voluntary national or international schemes to measure greenhouse gas emission saving contain accurate data for the purposes of Article 17(2).
The Commission shall adopt decisions under paragraph 4 only if the agreement or scheme in question meets adequate standards of reliability, transparency and independent auditing. In the case of schemes to measure greenhouse gas emission saving, such schemes shall also comply with the methodological requirements in Annex V.
[…]
Article 19. Calculation of the greenhouse gas impact of biofuels and bioliquids
For the purposes of Article 17(2), the greenhouse gas emission saving from the use of biofuel and bioliquids shall be calculated as follows:
where a default value for greenhouse gas emission saving for the production pathway is laid down in part A or B of Annex V and where the el value for those biofuels or bioliquids calculated in accordance with point 7 of part C of Annex V is equal to or less than zero, by using that default value;
by using an actual value calculated in accordance with the methodology laid down in part C of Annex V; or
by using a value calculated as the sum of the factors of the formula referred to in point 1 of part C of Annex V, where disaggregated default values in part D or E of Annex V may be used for some factors, and actual values, calculated in accordance with the methodology laid down in part C of Annex V, for all other factors.
By 31 March 2010, Member States shall submit to the Commission a report including a list of those areas on their territory classified as level 2 in the nomenclature of territorial units for statistics (NUTS) or as a more disaggregated NUTS level in accordance with Regulation (EC) No. 1059/2003 of the European Parliament and of the Council of 26 May 2003 on the establishment of a common classification of territorial units for statistics (NUTS) [23] where the typical greenhouse gas emissions from cultivation of agricultural raw materials can be expected to be lower than or equal to the emissions reported under the heading "Disaggregated default values for cultivation" in part D of Annex V to this Directive, accompanied by a description of the method and data used to establish that list. That method shall take into account soil characteristics, climate and expected raw material yields.
The default values in part A of Annex V for biofuels, and the disaggregated default values for cultivation in part D of Annex V for biofuels and bioliquids, may be used only when their raw materials are:
cultivated outside the Community;
cultivated in the Community in areas included in the lists referred to in paragraph 2; or
waste or residues other than agricultural, aquaculture and fisheries residues.
For biofuels and bioliquids not falling under points a), b) or c), actual values for cultivation shall be used.
[…]
Annex V may be adapted to technical and scientific progress, including by the addition of values for further biofuel production pathways for the same or for other raw materials and by modifying the methodology laid down in part C. Those measures, designed to amend non-essential elements of this Directive, inter alia, by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 25(4).
Regarding the default values and methodology laid down in Annex V, particular consideration shall be given to the method of accounting for wastes and residues, the method of accounting for co-products, the method of accounting for cogeneration, and the status given to agricultural crop residues as co-products.
[…]
Article 20. Implementing measures
The implementing measures referred to in the second subparagraph of Article 17(3), the third subparagraph of Article 18(3), Article 18(6), Article 18(8), Article 19(5), the first subparagraph of Article 19(7), and Article 19(8) shall also take full account of the purposes of Article 7a of Directive 98/70/EC[7].
Article 21. Specific provisions related to energy from renewable sources in transport
Member States shall ensure that information is given to the public on the availability and environmental benefits of all different renewable sources of energy for transport. When the percentages of biofuels, blended in mineral oil derivatives, exceed 10 % by volume, Member States shall require this to be indicated at the sales points.
For the purposes of demonstrating compliance with national renewable energy obligations placed on operators and the target for the use of energy from renewable sources in all forms of transport referred to in Article 3(4), the contribution made by biofuels produced from wastes, residues, non-food cellulosic material, and ligno-cellulosic material shall be considered to be twice that made by other biofuels.
