Commission adopts proposals on alternative fuels
On 7 November the European Commission adopted a series of proposals to encourage the use of alternative transport fuels. The action plan and two proposals for Directives aim to reduce the dependence of European transport on petrol, starting with the regulatory and fiscal promotion of biofuels (combustible fuels produced from plants and organic waste). The Commission sees biofuels as the most viable alternative fuel source in the short to medium term. In spite of the European Union's commitment to an eight per cent reduction in greenhouse gas emissions by 2008 to 2012 under the Kyoto protocol, the EU is continuing to see a strong growth in carbon dioxide emissions. Furthermore, the transport sector's overwhelming dependence on oil is a key factor in the Union's heavy reliance on energy imports. 'The transport market is today almost entirely dependent on oil-based fuels,' said Energy and Transport Commissioner Loyola de Palacio. 'This coherent action plan for an alternative fuel strategy for transport will tackle this over-dependence, which is a significant source of environmental and supply concerns for the European Union.' Agriculture Commissioner Franz Fischler added: 'The production of bioenergy can offer new sources of farm income. It could become a concrete demonstration of a sustainable, multifunctional agriculture.' The action plan drawn up by the Commission outlines a strategy to achieve a 20 per cent substitution of diesel and gasoline fuels in the road transport sector by 2020. It highlights three fuel sources which would each be able to cater for over five per cent of total transport fuel use by this date - biofuels, natural gas, hydrogen and fuel cells. The action plan also invites contributions from industry and non-governmental organisations to clarify outstanding issues relating to the introduction of natural gas and hydrogen as transport fuels. The first proposed Directive would establish a minimum level of biofuels as a proportion of fuels sold, starting with 2 per cent in 2005 and reaching 5.75 per cent in 2010. The second proposed Directive proposes to allow, but not oblige, Member States to reduce excise duties on biofuels, whether pure or blended with other fuels. It is hoped that the implementation of such tax measures would help to offset the high cost of manufacturing biofuels compared to fossil fuels and encourage the growth of the biofuel industry. The proposal would allow Member States to reduce excise duties in proportion to the percentage of biofuel incorporated into fuel without the need for a specific authorisation from the EU Council of Ministers. The proposal is subject to review before 1 January 2008. Internal Market Commissioner Frits Bolkestein said: 'The proposed directive to allow Member States to reduce excise duties on biofuels would introduce an important incentive for economic operators to turn towards products which promote sustainable development.' Speaking at the climate change negotiations on Marrakech on 7 November, EU Environment Commissioner Margot Wallström underlined her determination to reach decisions which will help the Kyoto protocol to enter into force. 'We are here in Marrakech to finish a job,' Ms Wallström said. 'Some intense negotiations still lie ahead, though. We are clearly not there yet.' She said that the EU Kyoto package put forward by the Commission in October 'confirmed our ambition to maintain EU leadership in the fight against climate change.' She added: 'The tragic events of 11 September emphasise the need for coordinated, multilateral responses on issues which are impossible for countries to solve individually. Climate change is one such very crucial issue.'