European Union biofuels directives

In the European Union, ethanol is consumed in Spain, France, Sweden and Germany, especially after conversion into ETBE (ethyl tert-butyl ether), except in Sweden, but its use is increasing in all the other countries. New uses of bioethanol, e.g., in ethanol-direct fuel cells or as raw material for other chemicals, will further expand bioethanol use and production. Table 9.1 summarizes bioethanol production in different countries by 2004 [1], Owing to political decisions (EU directive setting at 5.75% the proportion of biofuels in fuels) and incentive taxation... 

The role of biocomponents in traffic fuel is increasing. The European Union Directive [1] on the promotion of the use of biofuels for transport purposes states that by the end 2005 traffic fuels should have contained 2% of components produced from renewables. The figure rises to 5.75% by the end of 2010 and up to 20% by the end of 2020. This directive defines biofuel as a liquid or gaseous fuel for transport produced from biomass, biodiesel as a methyl ester produced from vegetable or animal oil, of diesel quality, to be used as biofuel and synthetic biofuel as synthetic hydrocarbons or mixtures of synthetic hydrocarbons, which have been produced from biomass. The European Commission also encourages member states to lower tax rates on pure and/or blended biofuels, to the offset cost premium over petroleum-based fuels [1, 2]. 

Biofuels, obtained from renewable resources, have in fact a central place in the European Union proposals for a Common Energy Policy, with a target of 5.75 vol.% of transportation fuel from biosotrrces by 2010 in EU (Biofuels directive 2003/30/Ec) and a possible target of 10 vol.% in 2020. 

In recent years, production of biodiesel has expanded in both the European Union and the United States. In2006, European countries prodnced approximately 5.6bilUon liters of biodiesel compared with 0.86biUion liters produced in the United States (Durret et al., 2008). The future development of biodiesel in Europe is mainly driven by the Renewable Energy Directive, which has a binding target of 10% biofuels in the transport sector until 2020. The main feedstock for biodiesel in Europe is still rapeseed oil, with a share of approximately 70% 13% is covered by soybean oil, and almost 7% comes from waste frying oil and animal fat (Mittelbach, 2010). Soybean oil is the primary source of biodiesel production in the United States (Karmakar et al., 2010). 

The Directive 2009/28/EC also promotes biodiversity protection of threatened species in those lands where biodiesel and bioliquid production would have negative impacts on flora and fauna. Raw materials used in biodiesel and bioliquid production should therefore achieve the status of sustainable, by competent bodies, before being processed. In the longer term, the 2007 Renewable Energy Road Map (European Commission, 2007) specifies the adoption of a minimum 10% consumption of biofuels in the transport sector. Biofuels use in the transport sector would contribute to 14% of total market fuels (corresponding to about 43 million tons of Equivalent Oil) and the share may increase from either current bio—ethanol production in Sweden or biodiesel production in Germany and other European Union countries or other feedstock such as ethanol from straw, rapeseed oil, palm oil, and second-generation biofuels mainly obtained from wood processes (De Lucia, 2010). 

Various support policies are adopted across countries to promote biofuels use. In the European Union, the Commission Directive 2009/28/EC on the promotion of energy from renewables establishes Member States shares in renewables required by the Commission by 2020. Renewables shares are illustrated in Table 2.2, as well... 

Commission Directive 2003/30/EC of the European Parliament and of the Council of 8 May 2003 on the promotion of the use of biofuels and other renewable fuels for transport. Official Journal of the European Union, L 123, 42—46. 

In June 2010, the European Commission adopted a scheme for certifying sustainable biofuels under the Renewable Energy Directive (RED) (2009/28/EC). Under this scheme, all biofuels used in the European Union have to comply with sustainability criteria, including ... 

In the United States, for instance. Volumetric Excise Tax Credits for the blending of fuel ethanol and biodiesel are being provided to biofuel producers under the American Jobs Creation Act since 2004. In the European Union, the Energy Taxation Directive permits exemptions or reductions from energy taxation for biofuels (Directive 2003/96/EC). Currently, nearly all EU member states (with the exception of Finland and the Netherlands) provide partial or total tax exemptions or deduction, most aimed at hnal consumption (European Commission, 2011). Because the tax exemption has an upper bound equal to the acmal level of the fossil fuel tax, the instrument has proven to be highly effective in those EU member states with fossil fuel tax levels high enough to compensate for the additional production costs of biofuels (Wiesenthal et al., 2009). 

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