Europe has recently set targets for the incorporation of liquid biofuels in normal (fossil) gasoline and diesel, starting from from a level of 2 % in 2005, reaching 5.75 % substitution by the year 2010 and 20 % by the year 2020. In 2003, two guidelines have been approved that should stimulate the development of bio-fuels in Europe, particularly for the transport sector that accounts for 32 % of the total energy use within the European community. A first European guideline (2003/30/EC) lays down the objectives: by 2005, 2 % of all fuel consumption in Europe has to be covered by biofuels. This minimum percentage increases progressively in order to obtain a minimum percentage of 5,75 % in 2010. By 2020 the European Commission wants to reach 20% substitution.
Today, this percentage is only 0,3 % and is very unevenly divided amongst the different countries of the European Union. In order to obtain those objectives, Europe would need to produce no less than 9,3 million ton of bio-ethanol by 2010. This boils down to 3,7 million ha of wheat and sugar beets, a number to be compared with the 5,6 million hectare of uncultivated farmland for which the European Commission pays its farmers in order to produce absolutely nothing!
A second European guideline (amendment 92/81/EC) sets the conditions for the use of biofuels, in particular the fiscal aspects. The fiscal aspects are extremely important since the taxation of petroleum based motor fuels in Europe is traditionally very high, and amounts to more than half of the price paid at the gas pump. The guideline clears the road for a tax exemption of biofuels but leaves it up to the member states to choose for a full or partial tax exemption of biofuels, depending on the political will of the member state. Each member state has to find out the best way to reach the objectives set by the first guideline. The conversion of the European directives into national laws already leads to strong differences in the various member states. Whereas Germany has already decided to exempt biofuels completely from taxation several years ago, Belgium has only very recently exempted biofuels from taxation, thus laying the base for the development of the biofuel industry.
In december 2007, the European Commission launched a new directive on the promotion of sustainable road transport. In that directive, the target is set at 10% biofuels by 2020 (COM(2007) 817). In the same directive, sustainability criteria for biofuels are defined, such as the sustainability of renewable resources for biofuels and a minimal reduction in CO2 emissions.
More information on biofuels in Europe via the Biofuels Technology Platform.