EU reaches deal on renewables target

www.environmental-finance.com
Paris, 11 December:

A crucial part of the EU's energy and climate package was wrapped up on Tuesday, with compromise reached between members of the European Parliament and the French EU presidency to boost the use of renewables in Europe. But, as EU leaders gathered in Brussels to hammer out the rest of the climate package, environmentalists said they feared economic concerns could undermine efforts to reform the EU emissions trading scheme.

The renewable energy deal aims to increase the amount of the EU's energy is produced from renewable sources to 20% by 2020. It sets binding targets for all EU member states, which must submit National Action Plans to the European Commission by June 2010 detailing how they will meet them. Negotiators finally gave in to demands from Italy for a review in 2014, but said the review would "not affect the overall 20% target but serve to improve, if necessary, the efficiency of cooperation mechanisms".

These "cooperation mechanisms" will allow EU member states to achieve their national renewable targets through joint projects with other member states. Also, they allow for green power consumed by member states, but produced by new projects in third countries, to count towards EU targets.

The compromise also set a 10% renewables target for the transport sector to be partially reached through renewable electricity for trains and electric cars, as well as through greater use of biofuels. To avoid the potentially negative effects of biofuels, the compromise said that second-generation biofuels, produced from waste, residues, or non-food cellulosic and ligno-cellulosic biomass, would be double-credited towards the 10% target.

To be counted towards the target, biofuels must lead to at least 35% fewer greenhouse gas emissions compared to fossil fuels, stated the compromise, which also asked the Commission to develop a methodology to measure the emissions caused by indirect land-use changes resulting from biofuels production.

Ramon de Miguel, president of European Bioethanol Fuel Association (eBIO), said the legislation would "safeguard the current production capacity that required capital investments of over €5 billion, as well as thousands of jobs ... and set the scene for new investments to further improve the technological profile of European ethanol production".

Christian Kjaer, chief executive of the European Wind Energy Association (EWEA), called the deal "the world's most important energy law". Frauke Thies, Greenpeace EU renewables policy campaigner, said it was a "landmark deal" and gave the EU "eight out of ten" for its efforts.

Green MEP Claude Turmes said the deal was "a source of encouragement at the beginning of the week in which EU leaders will meet to decide on whether the EU keeps it leadership and credibility on climate policies". The compromise must now be formally endorsed by all member states and is expected to be put to a first-reading vote during the Parliament's plenary session in Strasbourg on 15-18 December.