http://ens-news.com/ens/jun2002/2002-06-10-02.asp
ens
EU Energy Ministers Dilute Biofuels Measure

BRUSSELS, Belgium, June 10, 2002 (ENS) - European Union energy 
ministers have scaled back the first part of a European Commission 
plan to increase the use of agricultural biofuels in transport as a 
means of combating climate change.

Meeting in Brussels on Thursday and Friday, the council said proposed 
minimum targets for achieving market penetration should be indicative 
and optional rather than mandatory.

The Commission's target for biofuels to make up two percent of 
transport fuel sold by 2005 and 5.75 percent by 2010 remains intact 
in the agreement, which is still provisional pending an opinion from 
the European Parliament.

Only three countries - Austria, Spain and Italy - supported making 
them binding, well short of a blocking minority.

Traffic on England's M4 Motorway (Photo courtesy Freefoto.com)
The Commission said today it is "open" to accepting the compromise 
but will wait for the parliament to reach its opinion before 
accepting defeat. The parliament's industry committee is leading 
consultations and is to vote on the dossier in Strasbourg tonight.

Plugged as a major European Union initiative in the fight against 
rising greenhouse gas emissions, the biofuels package has been coolly 
received by both environmentalists, who say the climate benefits are 
unproven, and conventional oil-based fuel producers, who say it will 
not reduce fossil fuel dependence.

"This has been motivated by agricultural support rather than 
environmental outcome - and we're pleased that's been appreciated [by 
ministers]," campaigner Frazier Goodwin of NGO Transport and 
environment told reporters today.

Softer indicative targets might benefit the climate by fostering 
development of biofuels from non-agricultural sources such as 
forestry waste, Goodwin said.

Tax incentives to encourage biofuel use met a warmer reception. 
Unanimous agreement was reached in principle on the second part of 
the package, introducing tax breaks for biofuels.

The text is "not too different" from the Commission's original 
proposal, according to one EU official, but final adoption has been 
blocked by the UK in retaliation for France's decision last week to 
oppose an EU energy tax just ahead of domestic parliamentary 
elections.

France is the strongest supporter of fiscal aids for biofuels. Both 
items are on the agenda of next week's council of finance ministers.

In other items treated at last week's council, held jointly with 
industry ministers, governments rubber-stamped an agreement to 
improve energy efficiency in buildings, adopted a resolution on 
sustainable development, and approved a new set of EU guidelines on 
state aid to the coal industry.

{Published in cooperation with ENDS Environment Daily, Europe's 
choice for environmental news. Environmental Data Services Ltd, 
London. Email: [EMAIL PROTECTED]



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