Biofuels will be “devastated” by new EU renewables targets, says trade group

In the UK, the Renewable Fuels Association said that the UK biofuels industry “stands to be devastated by draft proposals being developed by the European Commission.” Four elements of the EC proposals are highly problematic, the group warned, including:  The proposal to limit crop biofuels to no more than half the 10% target for renewable transport with immediate effect;  the removal of all subsidies for crop-based biofuels post-2020; The proposed retrospective introduction of a 60% GHG saving requirement for all new biofuels plant in operation after July 2012; and the proposed ILUC factors in the Fuel Quality Directive (FQD).

Clare Wenner, Head of Renewable Transport at the REA, said: “The UK industry is particularly vulnerable to these proposals because it is small and because investment has been hindered by the lack of clear domestic policy. The great irony is we have been repeatedly asking for a clear pathway to 2020, not least to secure investment in technological advancement. Nobody listened. Now Europe is planning a quantum leap which threatens to wipe us out. It is a double whammy and an absolutely galling prospect for companies that have invested millions in good faith.”