EU urges more use of biofuel

The European Commission is contemplating setting mandatory targets for member states in a bid to boost EU biofuel production and usage.

Following the adoption of an ambitious EU strategy for biofuels with a range of potential market-based, legislative and research measures, Agriculture Commissioner Mariann Fischer Boel said the Commission would be considering the question of mandatory targets as part of a revision of the EU's under-performing Biofuels Directive.

"The Commission will discuss mandatory targets later this year," she said.

According to the Biofuels Directive, EU member states are bound to aim at having two per cent biofuel content by 2005 and 5.75 per cent by 2010. However, the EU in general is far from achieving these targets.

Biodiesel accounted for 0.1 per cent of total fuel used for road transport in 2004, a significant improvement on the 0.02 per cent achieved in 2003.

Malta's usage of biofuels is also very low. According to the latest EU figures, during 2004 only 0.1 per cent of the total fuel used for road transport consisted of biofuel, amounting to about 0.18 million litres. However, this was still a significant improvement on the year before as in 2003 biofuel consumption reached only 0.02 per cent. Malta's target for last year was set at 0.3 per cent; data for 2005 are still not available.

The new EU strategy sets out three main aims. The promotion of biofuels in both the EU and developing countries, preparation for large-scale use of biofuels by improving their cost competitiveness and increasing research into second generation fuels, and support to developing countries where biofuel production could stimulate sustainable economic growth.

Ms Boel said it is clear that Europe needs to stimulate the demand for biofuels.

"Member states should consider granting tax incentives in favour of the industry, by utilising the resources of the EU's energy taxation directive. We need to invest in second generation biofuels. If we don't strike now we will miss the boat," she warned.

Biofuels are transport fuels produced from biomass feed-stocks and organic material. The EU's production of biofuels amounted to 2.4 million tonnes in 2004, about 0.8 per cent of EU petrol and diesel consumption.

Brazil is the world's leading producer of bioethanol, followed by the US. The EU, with a production of almost 0.5 million tonnes, is estimated to have produced 10 per cent of the world's bioethanol.