(Consultation procedure)

The European Parliament,

–   having regard to the Commission proposal to the Council (COM(2001) 547(1)),

–   having been consulted by the Council pursuant to Article 93 of the EC Treaty (C5-0030/2002),

–   having regard to Rule 67 of its Rules of Procedure,

–   having regard to the report of the Committee on Economic and Monetary Affairs and the opinions of the Committee on Agriculture and Rural Development, the Committee on the Environment, Public Health and Consumer Policy and the Committee on Industry, External Trade, Research and Energy (A5-0218/2002),

1.  Approves the Commission proposal as amended;

2.  Calls on the Commission to alter its proposal accordingly, pursuant to Article 250(2) of the EC Treaty;

3.  Calls on the Council to notify Parliament should it intend to depart from the text approved by Parliament;

4.  Asks to be consulted again if the Council intends to amend the Commission proposal substantially;

5.  Instructs its President to forward its position to the Council and Commission.

Text proposed by the Commission   Amendments by Parliament Amendment 1 RECITAL 2 a (new) (2a) The Commission White Paper on European transport policy for 2010: time to decide(1) expects CO2 emissions from transport to rise by 50% between 1990 and 2010, to around 1113 billion tonnes, the main responsibility resting with road transport, which accounts for 84% of transport-related CO2 emissions. From an ecological point of view, the White Paper therefore calls for dependence on oil (currently 98%) in the transport sector to be reduced by using alternative fuels such as biofuels. _____________ (1) COM(2001) 370. Amendment 2 RECITAL 4 (4)  The Communication of the Commission entitled 'A Sustainable Europe for a Better World: A European Union Strategy for Sustainable Development', highlights the important role of alternative fuels, including biofuels, in tackling climate change and in the development of clean energies. (4)  The Communication of the Commission entitled 'A Sustainable Europe for a Better World: A European Union Strategy for Sustainable Development', highlights the important role of alternative fuels, including biofuels, in tackling climate change and in the development of clean energies. In this connection, consideration should also be given to pure, cold-pressed vegetable oil, such as rapeseed oil, which does not undergo any chemical change and can thus be produced in an environmentally friendly way, and whose by-products also contain protein and can be used as animal feed. Amendment 3 RECITAL 4 a (new) (4a) With a view to fulfilling the objectives in respect of sustainable development and environmental protection, the policy choices made with regard to the promotion of biofuels should minimise the harmful effects on agriculture, employment and land use. Amendment 4 RECITAL 4 b (new) (4b) It is estimated that world oil consumption will be around 115 million barrels a day in 2020, as compared with around 77 million barrels a day in 2000. The transport sector will account for 71% of final demand for oil in 2020. The Commission, in its communication on the European Union's oil supply(1), stated that it expects the European Union"s dependence on oil imports to rise from its current rate of 75% to over 85% in 2020. _____________ (1) COM(2000) 631. Amendment 21 RECITAL 5 a (new) (5a) The increased use of biofuels should be accompanied by a careful analysis of the environmental impact in relation to the cultivation, processing and consumption of raw materials. The increased use of such fuels appears desirable only if the environmental impact presents clear advantages by comparison with the use of traditional fuels. In particular, a study should be carried out into land use, more intensive agriculture, the relationship with alternative sustainable land use, the protection of water courses, energy efficiency, greenhouse gas potential, combustion characteristics and particle formation. Amendment 22 RECITAL 6 a (new) (6a) With a view to achieving sustainable development objectives and, in particular, to slow down climate change, there is a need for differentiated pricing for fuels, in order to internalise their ecological, social and economic cost. This long-term change should be supported by a review in the short term of the existing legal framework. Amendment 5 RECITAL 7 (7)  It is therefore desirable to establish a Community framework for reducing excise duties so as to promote biofuels, thereby contributing to the better functioning of the internal market and affording Member States and economic operators a sufficient degree of legal certainty. (7)  It is therefore desirable to establish a Community framework for reducing and providing an exemption from excise duties so as to promote biofuels, thereby complying with the objectives of promoting the use of biofuels, contributing to the better functioning of the internal market and affording Member States and economic operators a sufficient degree of legal certainty. Amendment 6 RECITAL 7 a (new) (7a) Where more favourable national taxation framework conditions already exist in Member States or have already been submitted before 1 January 2003, these should be kept in place until the quantitative objectives for biofuels produced in the EU proposed in this Directive have been achieved. Amendment 7 RECITAL 10 a (new) (10a) At present not all the biofuels available on the market meet strict environmental efficiency criteria. In some cases their production is linked to very high energy input and greenhouse gas emissions. However, technological advances in this area can only lead to improvements. Consequently research and technological development in the field of the sustainability of biofuels should be promoted. Amendment 8 RECITAL 16 a (new) (16a) Article 4(3) of Directive 92/81/EEC provides that 'the consumption of mineral oils within the curtilage of an establishment producing mineral oils shall not be considered a chargeable event giving rise to excise duty as long as the consumption is for the purpose of such production'. For reasons of equity, it should therefore be stipulated that the consumption of biofuels within the curtilage of an agricultural holding producing biofuels should not be regarded as a chargeable event giving rise to excise duty as long as the consumption is for the purpose of such production. Amendment 9 ARTICLE 1, POINT 3 a (new) Article 4, paragraph 3 (Directive 92/81/EEC) 3a. Article 4(3) is replaced by the following: "3. The consumption of mineral oils within the curtilage of an establishment producing mineral oils shall not be considered a chargeable event giving rise to excise duty as long as the consumption is for the purpose of such production. Similarly, the consumption of biofuels within the curtilage of agricultural holdings and agricultural trade organisations producing biofuels shall not be considered a chargeable event giving rise to excise duty as long as the consumption is for the purpose of such production. However, where such consumption is for purposes not related to that production and in particular for the propulsion of vehicles, this shall be considered a chargeable event giving rise to excise duty." Amendments 10, 11 and 12 ARTICLE 1, POINT 4 Article 8 c, paragraph 2, subparagraphs 1 and 2 (Directive 92/81/EEC) 2.  The levels of taxation applied by Member States on the products made up of or containing biofuels referred to in Article 8b may be lower than the minimum rates specified in Directive 92/82/EEC. However, the level of taxation of these products, if intended for use, offered for sale or used as motor fuel, may not be lower than 50 %of the normal rate of excise duty applied by the Member State on corresponding fuels. 2.  The levels of taxation applied by Member States on the products made up of or containing biofuels referred to in Article 8b may be lower than the minimum rates specified in Directive 92/82/EEC. Particularly low tax rates shall be set for those fuels which meet particularly stringent environmental efficiency criteria and a total tax exemption may be applied for unblended biofuels. Amendment 13 ARTICLE 1, POINT 4 Article 8 c, paragraph 3 (Directive 92/81/EEC) 3.  The Member States, which on 1 January 2001 totally exempted products solely made up of biofuels, may continue totally to exempt those products until 31 December 2003. Deleted Amendment 14 ARTICLE 1, POINT 4 Article 8 d, paragraph 1 (Directive 92/81/EEC) 1.  Products made up of or containing biofuels referred to in Article 8b, used by local public passenger transport, including taxis, and by vehicles operated under the responsibility of a public authority may qualify, under fiscal control, for an additional reduction of a value equivalent to the reduction provided for Article 8b. 1.  Products made up of or containing biofuels referred to in Article 8b, used by public passenger transport, including taxis, and by vehicles operated under the responsibility of a public authority may qualify, under fiscal control, for an additional reduction of a value equivalent to the reduction provided for Article 8b. Amendment 15 ARTICLE 1, POINT 4 Article 8 g (Directive 92/81/EEC) Member States shall communicate to the Commission the schedule of excise duty reductions applied in accordance with point IIa by 31 December 2002 and every twelve months thereafter. Member States shall communicate to the Commission and to the European Parliament the schedule of excise duty reductions applied in accordance with point IIa by 31 December 2002 and every twelve months thereafter. Amendment 16 ARTICLE 1, POINT 4 Article 8 h (Directive 92/81/EEC) No later than 31 December 2007 the Commission shall report to the Council on the fiscal, economic, agricultural, energy, industrial and environmental aspects of the reductions granted in accordance with this point IIa. Additional exemptions or reductions granted in favour of biofuels according to the procedure of Article 8(4)of Directive 92/81/EEC shall also be reviewed. The Commission shall, if necessary, put forward proposals for their abolition, amendment or extension. No later 31 December 2007 the Commission shall report to the Council and to the European Parliament on the fiscal, economic, agricultural, energy, industrial and environmental aspects of the reductions granted in accordance with this point IIa. Additional exemptions or reductions granted in favour of biofuels according to the procedure of Article 8(4) of Directive 92/81/EEC shall also be reviewed. The Commission shall, if necessary, put forward proposals for their abolition, amendment or extension. Amendment 24 ARTICLE 1, POINT 4 Article 8 h a (new) (Directive 92/81/EEC) Article 8 ha No later than 31 December 2007 the Commission shall submit a communication to the European Parliament and the Council on differentiated pricing for fuels in order to internalise their ecological, social and economic cost. The Commission shall, if necessary, bring forward proposals for this purpose.

(1) OJ C 103 E, 30.4.2002, p. 217.