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Advanced biofuels producers criticise “bad day for industry and investors” as Environment Committee vote pushes back debate on new rules By Will Nichols 18 Oct 2013 EU lawmakers have effectively postponed the creation of a stable policy regime for biofuels until 2015 in a move that is “bad news for industry and investors”, companies across the sector said yesterday. The Environment (ENVI) Committee of the European Parliament yesterday voted against allowing negotiations with member states on a draft law to cap the use of food crop-based biofuels and measure indirect emissions arising from biofuels production from 2020. The European Parliament approved revising the current biofuels regulations last month. But the motion to start negotiations with the European Council, made up of ministers from member states, was only passed by one vote, which meant it required a second reading before a final vote. MEP Corinne Lepage, rapporteur of the biofuels draft law, was bidding to start a fast-tracked second-reading procedure, arguing the overwhelming majority of industry stakeholders want “a quick result” that could deliver policy certainty prior to next year’s European elections. The proposal split the biofuels industry. Earlier this month, Danish company Novozymes, BA, DONG Energy, WWF and Transport & Environment were among 15 companies and NGOs to call on the EU to start early second-reading negotiations in the hope of delivering a “sustainable, lasting, and stable policy framework for the biofuels industry” before the elections in May 2014. But fast-tracked negotiations were strongly opposed by conventional biofuel producer groups, who would be most affected by new rules requiring firms to calculate indirect land use change (iLUC) emissions arising from deforestation, draining of peatlands and other land clearance for biofuels. In a letter sent this week, six industry bodies argued the science underpinning iLUC calculations is too imprecise to be used to underpin legislation and urged Council representatives to reject a second reading, arguing “no hasty decisions” should be made because of time pressure before May 2014 and that EU institutions needed time for “a healthy debate … before reaching definitive conclusions”. The move to fast track a decision was subsequently quashed by ENVI yesterday, so it is now unlikely that a decision on new biofuels regulations will be taken before 2015. The move was welcomed by Raffaello Garofalo, secretary general of the European Biodiesel Board (EBB). “After the publication of up to date authoritative studies on ILUC a widening range of decision makers supports a more prudent and open-minded approach,” he said in a statement. “Even MEPs close to Ms Lepage realised that early second reading would not have provided sufficient time to assess the relevance of science used in policy.” But campaign groups warned EBB and the rest of conventional biofuels lobby was simply engaging in stalling tactics because the status quo benefits them. Nusa Urbancic, clean fuels manager at campaign group Transport & Environment (T&E), said: “This is an unfortunate case of vested interests winning out over innovators willing and able to produce more sustainable biofuels.” The decision also drew criticism from Kåre Riis Nielsen, director of European affairs at Novozymes, who said the ENVI decision was “bad news for industry and investors who need clarity”. “Once again policy-makers are delaying decision-making on iLUC,” he added. “Ongoing regulatory uncertainty is jeopardising all the parallel EU efforts to attract much needed investments in innovative renewable energy technologies, including in advanced biofuels. “Despite the absence of mandate, we are urging Member States to continue the negotiations on the iLUC proposal and finalise their 1st reading position before the end of the Lithuanian Presidency.” Continue reading →