THE RENEWABLE ENERGY DIRECTIVE Brussels, 15 February 2008 Mauro POINELLI DG AGRI, European Commission

THE JAN 23 “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 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 WITH 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 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 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

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 general, demand expansion for agricultural commodities has so far been met mainly by productivity increases, not land use change Source: FAOSTAT

In particular for biofuels, some of the extra demand for land 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)

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 RESPECTED 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 Thank you