The EU Energy Council has signed a political agreement on measures to include indirect land use change (ILUC) into EU biofuels policies.
The move would effectively mark the Renewable Energy Association to a close to almost two years of investment-blocking policy paralysis in the low carbon fuels sector.
The compromise package's key elements include a 7% cap on transport energy from crop-based biofuels and mandatory reporting of ILUC factors for crop-based biofuels
In addition to providing for multiple counting of transport energy sources towards EU renewable transport targets and overall renewable energy targets, the package caters for a goal of 0.5% transport energy from advanced biofuels from non-crop feedstocks.
REA chief executive Dr Nina Skorupska said, 'We urge the government to get its own house in order now so that the transport sector can get the low carbon momentum back on track and catch up with the progress being made in renewable heating and electricity. "
The proposals, if agreed, will go to second reading in the new European Parliament, prior to becoming law.
The proposals are expected to offer room for the existing biofuels industry to grow and invest in the advanced biofuels development with even greater greenhouse gas savings, while the REA continues to oppose the ILUC factors use in greenhouse gas accounting for biofuels.
For nationally binding renewable energy targets in the 2030 energy and climate change framework, scheduled to be finalised by October, the REA continues to maximise the contribution of renewable power, heating and transport fuels towards climate change mitigation and improved energy security.