European Union Official Sets Tough Standards for Producing Biofuels Sold in EU

European Union Official Sets Tough Standards for Producing Biofuels Sold in EU

By Scott Doggett June 10, 2010

European Union Energy Commissioner Guenther Oettinger set out tough standards for producing biofuels sold in the EU, demanding producers meet strict environmental criteria to ensure their makers don't create greenhouse-gas emissions or destroy forests or wetlands.

The rules, which take effect immediately, will require certificates to guarantee that all biofuels -- whether grown in the 27-nation EU or imported -- are sustainably produced on land already used for farming in early 2008, according to various wire reports.

Production must be independently monitored to see how much fertilizer is used to grow the crop, how much to process it into fuel and how much to transport it to the market.

Additionally, only biofuels that represent at least a 35 percent saving in greenhouse gas use compared to oil or diesel would be allowed and would get financial help from governments, such as low taxes or direct payments to suppliers.

The European Commission says it could revoke the certificates at any time biofuel suppliers are not providing truthful information.

About 26 percent of biodiesel and 31 percent of bioethanol used in the EU in 2007 was imported -- mostly from Brazil and the United States.

Environmental groups took a dim view of the plan, saying it will not tackle the most acute problem: that the move toward more biomass production drives deforestation, damages the environment, creates greenhouse-gas emissions and encourages land-grabbing in Asia and South America.

The EU has set a target that by 2020 at least 10 percent of transport fuel comes from biofuels -- up from 3.4 percent in 2008 and 0.5 percent in 2003.

Scott Doggett:  is an AutoObserver.com Associate Editor.