• 1 day Shell Oil Trading Head Steps Down After 29 Years
  • 1 day Higher Oil Prices Reduce North American Oil Bankruptcies
  • 1 day Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 1 day $1.6 Billion Canadian-US Hydropower Project Approved
  • 1 day Venezuela Officially In Default
  • 2 days Iran Prepares To Export LNG To Boost Trade Relations
  • 2 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 2 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 2 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 2 days Rosneft Announces Completion Of World’s Longest Well
  • 2 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 3 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 3 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 3 days Santos Admits It Rejected $7.2B Takeover Bid
  • 3 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 3 days Africa’s Richest Woman Fired From Sonangol
  • 3 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 3 days Russian Hackers Target British Energy Industry
  • 3 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 4 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 4 days Lower Oil Prices Benefit European Refiners
  • 4 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 4 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 4 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 5 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 5 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 5 days OPEC To Recruit New Members To Fight Market Imbalance
  • 5 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 5 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 5 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 5 days GE Considers Selling Baker Hughes Assets
  • 5 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 5 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 6 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 6 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 6 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 8 days The Oil Rig Drilling 10 Miles Under The Sea
  • 8 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 8 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 8 days Italy Looks To Phase Out Coal-Fired Electricity By 2025
Oil Survives Bearish Backlash

Oil Survives Bearish Backlash

Crude benchmarks posted steep losses…

European Parliament Prepares to Discuss Future of Biofuels in the EU

European Parliament Prepares to Discuss Future of Biofuels in the EU

Policies concerning biofuels in the EU is a controversial topic, but this week members of the European parliament (MEPs) are preparing to tackle the subject and clear any doubts surrounding the future of the sector.

Currently the EU has a set target of gaining 10% of its transport fuel from green sources by 2020, however questions are being asked over whether the biofuels contributing to the achievement of this target are really leading to lower greenhouse gas emissions, or whether the drive to achieve the target is actually detrimental to the environment.

MEPs will vote on introducing limits to the amount of biofuels produced from crops that can be used to help towards the 10% target, and whether emissions produced whilst clearing areas such as rainforests, wetlands, and grasslands, known as indirect land use change (ILUC), should be taken into account when determining the emissions produced from using biofuels.

If the MEPs vote to include ILUC emissions in the biofuel calculations, most forms of biodiesel could become obsolete in terms of the EUs 10% target, as they will create higher emissions than the fossil fuels they are intended to replace. Some within the industry argue that, due to that fact that biodiesel accounts for about 75% of EU biofuels, using ILUC emission figures would make attaining the 10% target virtually impossible. They claim that by introducing overly strict standards the industry could be heavily damaged, risking the jobs of 70,000 people now employed in biofuels throughout the EU, and the €20 billion a year that the industry contributes to the EU Growth Domestic Product.

Related article: Algae Produces more Fat for Biofuels when Starved

There are even some environmental groups that have asked the EU to completely abandon the 10% target, complaining that it could only be achieved by importing huge amounts of biofuels from outside of the region, and that it is wrong for the EU to offer subsidies of €6 billion a year to an industry that may produce higher carbon emissions.

The European Parliament’s Environment Committee (ENVI) has suggested that biofuels should not be allowed to count for more than 5.5 percent of the 2020 target, and that the ILUC calculations should be immediately included in order to prevent the production of unsustainable biofuels.

The Industry, Research and Energy Committee (ITRE) has asked that biofuels account for no more than 6.5 percent, with the ILUC calculations coming into effect in 2016. They also want a target of two percent to be supplied by advanced biofuels that do not compete for crop land, hoping that this will encourage investment and expansion in this sector.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News