EU panel votes to cut biofuels target from crops

A key panel of European Union lawmakers voted to lower a target for using traditional biofuels produced from crops in road transport fuel by 2020 as part of the EU's plan to fight climate change.

The executive European Commission has proposed that 10 percent of all road transport fuel should come from renewable sources, without specifying how much of that should be biofuels or vehicles powered by renewable electricity or hydrogen.

The European Parliament's influential industry committee endorsed the overall target but voted that at least 40 percent of it should be achieved with electricity or hydrogen from renewable sources, or second generation biofuels from waste.

That would leave just six percent coming from traditional biofuels made from grains and other food stocks, which have been criticised for pushing up food prices.

The committee's decision will likely serve as parliament's position in negotiations with the 27 EU member states later this year or in early 2009 on the final shape of the legislation.