EU restricts use of first generation biofuels to promote advanced biofuels

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Courtesy of Bergeson & Campbell, P.C.

On April 14, 2015, Members of the European Parliament and certain ministers agreed to limit how biofuels derived from agricultural crops would be accounted for in the European Union's (EU) goal to increase the use of renewable energy. The new law caps the use of first generation biofuels to seven percent of the total energy use being counted towards the EU's renewable energy goal of ten percent. Member States will have the opportunity to reduce the cap of crop-based biofuels at their discretion. The law came about in part from fears about food security and negative indirect land use change (ILUC) occurring due to widespread crop-based biofuels. The EU has used ILUC to calculate the net greenhouse gas (GHG) production of biofuels, despite concerns that it is scientifically flawed. The agreement reached will eliminate the ILUC factor as a way to judge the benefits of fuels in the EU, but will still need to be reported by fuel suppliers. The agreement will be voted on during the April 27-30, 2015, plenary session. Member States will have until 2017 to enact the legislation.

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