EP seals climate change package

The new renewables directive seeks to ensure that by 2020 renewable energy makes up at least 20% of the EU's total energy consumption. In 2005 renewable energies - that is energy produced from hydro power, solar, wind, biomass or geothermal sources - accounted for less than 7% of the EU's total energy consumption, says Eurostat.
 
To achieve the 20% target, the new directive will lay down mandatory national targets to be achieved by the Member States through promoting the use of renewable energy in the electricity, heating and cooling, and transport sectors. Member States could meet their targets more easily by promoting energy efficiency and energy saving, says the compromise text.
 
During the informal negotiations ahead of Parliament's vote, MEPs made sure that the renewable energy action plans, which Member States will have to draw up to demonstrate how they are going to achieve their national targets, must fulfil certain minimum requirements.
 
10% from renewables in the transport sector by 2020
 
The agreement foresees that by 2020 renewable energy - biofuels, electricity and hydrogen produced from renewable sources - account for at least 10% of the EU's total fuel consumption in all forms of transport. Each Member State will thus have to increase its share of renewable energy in transport to 10%. Biofuels, for example, accounted for only around 1% of all transport fuels consumed in the EU in 2005, says Eurostat.
 
The agreement with Council did not take up the Industry Committee's proposal to set an interim target of 5% by 2015 for renewables in road transport fuel.
 
Promote more sustainable "second-generation" biofuels
 
The Industry Committee, voting on a report by Claude Turmes (Greens/EFA, LU) on 11 September 2008, had specified that the 10% target should relate to road transport only and stipulated that at least 40% of this target (i.e. 4% of all road transport fuels) would have to come from "second-generation" biofuels, electricity or hydrogen - an amendment which was not taken up in the final compromise agreement.
 
Unlike traditional, "first-generation" biofuels, the second generation ones do not compete with food or feed production as these biofuels are, for example, produced from wastes, residues, or non-food cellulosic and ligno-cellulosic biomass such as algae, wood residues, or paper waste. To promote those new, more sustainable alternatives, "second-generation" biofuels will be double credited towards the 10% target, says the compromise text.
 
While green electricity for trains will count only once towards the target for the transport sector, renewable electricity consumed by electric cars will be counted at 2.5 times its input, states the amended proposal.

Sustainability criteria for biofuels
 
The new legislation will also establish binding criteria to ensure that biofuels production is environmentally sustainable. For example, to count towards the transport fuel target, the use of biofuels must save at least 35% of greenhouse gas emissions compared to fossil fuels (the Industry Committee had advocated a saving of 45%). From 2017 onwards, the greenhouse gas emission savings of biofuels produced in existing production plants must be at least 50% compared to fossil fuels. The greenhouse gas emissions of biofuels produced in new installations will have to be at least 60% lower than those from fossil fuels.

Peatland
 
Biofuels made from crops grown in an area that was peatland in January 2008 should not count towards the transport target, says the text, unless the cultivation and harvesting of the raw material does not involve drainage of previously undrained soil.
 
Indirect land use change
 
By 2010 the Commission will have to develop a methodology to measure the greenhouse gas emissions caused by indirect land use changes - that is, for example, when crops for biofuel production are grown in areas which have previously been used to grow a food crop and this food crop production then moves to other areas which were not in use before (e.g. existing forests).
 
Ensure social sustainability, too
 
Parliament's Industry Committee had inserted binding social sustainability criteria, such as respect for the land rights of local communities or the fair remuneration of all workers, into the draft directive. However, as doubts remained about whether such fixed social sustainability criteria were in line with the rules of the World Trade Organisation, the revised text now requires the Commission to monitor the impact of the EU's biofuel policy and if necessary propose corrective action, especially if increased biofuels production leads to rising food prices or does not comply with social sustainability criteria.
 
Proof for green electricity
 
The European Commission had proposed that "guarantees of origin" should be used for trading renewable energy shares in the EU to enable Member States to achieve targets jointly. However, the Council Presidency agreed with the Industry Committee's call that those "guarantees of origin" should only prove to consumers how much of the energy supplied to them comes from renewable sources.
 
Co-operation to achieve renewables targets jointly
 
The political agreement fully incorporated the Industry Committee's proposal for cooperation mechanisms to allow Member States to achieve their renewables targets jointly. It will, for example, be possible for Member States to run joint projects on green electricity production, heating or cooling, or to transfer renewable energy "statistically" between each other. Member States may also join or partly coordinate their national support schemes so that renewable energy produced in one Member State counts towards the national target of another Member State.
 
Large projects with a very long lead time
 
The compromise text also enables Member States to count towards their national targets  "green" electricity consumed in the EU but produced by newly constructed joint projects with third countries such as future solar thermal plants to be built in Northern Africa under the Mediterranean Solar Plan. 
 
Such renewable energy plants or interconnectors linking a Member State to these plants whose construction might have started by 2016 but which would nevertheless not be operational by 2020 due to a very long lead time may be accounted for in the calculation of a Member State's renewable energy share, says the amended proposal for a directive.
 
Member States with a high share of aviation
 
Energy consumed in aviation can make up a large percentage of some Member States' gross energy consumption. As technological and regulatory constraints have so far prevented the commercial use of biofuels in aviation, there should be a "partial exemption" for these Member States when their total energy consumption is calculated, says the text. The revised directive states that the amount of energy consumed in aviation should be no more than 6.18% of a Member State's total energy consumption. For the peripheral island Member States Cyprus and Malta, which rely heavily on aviation, the share of energy consumed in aviation taken into account will be a maximum of 4.12% of their final consumption.
 
Improve access of renewables to grid infrastructure
 
The directive as amended also requires Member States to develop transmission and distribution grid infrastructure, intelligent networks, storage facilities and electricity systems that can be operated safely while accommodating renewable energies. Green electricity should either be given priority or guaranteed grid access.
 
2014 review will not change the 20% target
 
MEPs and the Council Presidency agreed that the Commission's evaluation of the implementation of the directive, which is to take place by 2014, will not affect the overall 20% target but will serve to improve, if necessary, the efficiency of co-operation mechanisms. The Commission's review should also assess whether the transport target can be reached while ensuring a sustainable biofuels production as well as the commercial availability of second generation biofuels and of electric, hybrid and hydrogen powered vehicles.
 
Post-2020 Renewable Energy Roadmap
 
The compromise text requires the Commission to present in 2018 a Renewable Energy Roadmap and if necessary new proposals for the post-2020 period.
 
Member States will have to bring into force the laws, regulations and administrative provisions necessary to comply with the directive within 18 months after its publication in the EU's Official Journal.

The compromise was adopted with 635 votes in favour, 25 against and 25 abstentions.