After several months of debates on the findings of scientific studies regarding the actual benefits of biofuels in reducing greenhouse gases emission, the European Commission recently presented a proposal aimed at modifying the current legislation on biofuels.

The proposal is contained in the long-awaited EU plan to address the indirect land use change (ILUC) impact of biofuels. ILUC theory refers to the fact that if food crops are employed to produce biofuel, then its production increases the overall global demand for agricultural land. If farmers meet that extra demand by cutting down primary forest and draining peatland, the result is millions of tonnes of additional carbon emissions.

According to the new legislation draft, the use of biofuels made from crops such as rapeseed and wheat would be limited to 5% of total energy consumption in the EU transport sector until 2020. At the same time, there are plans to offer market incentives to advanced non-land using biofuels made from household waste and algae, in order to try to reach the EU's 10% target in the transport sector.

First generation biofuels will not be immediately abandoned but new plants for their production from food crops will have to certify a GHG emission reduction of 60% compared to traditional fossil fuels, in order to ensure the highest efficiency in the production processes.

Regarding the long term tendency, however, the Commission is of the view that in the period after 2020, biofuels that do not lead to substantial greenhouse gas savings (when emissions from indirect land-use change are included) and are produced from crops used for food and feed should not be subsidised.

For more information please visit the European Commission website