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How important is it that an additional criteria for ILUC is added to the EU sustainability schemes?
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Tank Storage Canada expo & conference
September 28 - 29
Calgary, Alberta, Canada
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2101 Ethanol Conference & Trade Show
August 02 - 04
Missouri, US |
American Coalition for Ethanol Convention
August 03 - 05
Missouri, US |
NISTM Missouri State Storage Tank Conference
August 19
Missouri, US |
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Volume 2, Issue 6
Feature: The new EU directive on fuel quality standards and its implications |
Even though the rather technical fuel quality directive (FQD) has taken a back seat in recent months, overshadowed by the much politicised Renewable Energy Directive, it is nevertheless a crucial piece of legislation for the EU bioethanol industry. There are three key reasons for this: a) it introduces a decarbonisation mechanism with a view to reducing greenhouse gas (GHG) emissions of fossil fuels; b) it allows – under certain conditions – direct blending of ethanol in warmer parts of Europe; and c) it makes E10 blends possible by increasing the maximum ethanol content and oxygen content in petrol. The new directive will amend, rather substantially, a 10-year old directive that sets technical specifications based on health and the environment for fossil fuels. It was first changed in 2003 and then had to be reviewed two years later partly due to biofuels.1 Contrary to the existing provisions of Directive 98/70, in which biofuels are merely mentioned as one of several fossil fuel components, the amended text gives the strong impression that the directive is now a law on biofuel quality standards.2 This is mainly due to the fact that the new directive introduces a mechanism to monitor and reduce GHG emissions, the so-called decarbonisation mechanism. Decarbonisation mechanism The EU committed itself under the Kyoto Protocol to reduce GHG emissions by at least 20% unilaterally by 2020 and by 30% if a global agreement can be reached. All sectors will need to contribute to these goals. The combustion of road transport fuel is responsible for around 20% of community GHG emissions. Therefore the new FQD requires fuel suppliers to reduce life cycle GHG emissions3 of the fuel they put on the market. By 2020 they need to achieve a (mandatory) reduction of at least 6% compared to the EU-average level of GHG emissions in 2010 with possible interim targets of 2% by 31 December 2014 and 4% by 31 December 2017. The fuel suppliers are free to choose how to achieve these targets. They can either decrease their emissions by reducing flaring and venting at production sites (upstream) or by using more biofuels or alternative fuels (downstream). These instruments are not mentioned in the body of the law; they are mentioned in a recital. Biofuels used for compliance with the GHG reduction target need to comply with the sustainability criteria, which are defined by the Renewable Energy Sources Directive (RESD) and have been entirely copied into the FQD.4 An additional (indicative) 4% reduction may be obtained through the use of carbon capture and storage technologies and electric vehicles (2%) and the purchase of credits under the Clean Development Mechanism of the Kyoto Protocol (2%). The total required reduction by 2020 could therefore be increased to up to 10%. The strong link between the RES-D and the FQD is not only demonstrated by having the sustainability criteria in common but also through the fact that a review of this decarbonisation mechanism needs to take place in 2014. The new law states that: ‘At the latest in 2014, the Commission shall submit a report to the European Parliament and the Council relating to the achievement of the GHG emission target for 2020 referred to in Article 7a, taking into account the need for consistency between this target and the target referred to in Article 3(3) of Directive 2009/.../EC [on the promotion of the use of energy from renewable sources], concerning the share of energy from renewable sources in transport, in the light of the reports referred to in Articles 20(6) and 20(7) of that Directive’.
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