The European Union has a relative short history of biofuels policy, whose course has been dramatically changed on 17 December 2008.

It all started in 2003 with the first Biofuel Directive (Directive 2003/30/EC), which set indicative targets to promote the use of renewable fuels in the transport sector. The target was set at 2% by energy content for 2005, and at 5.75% for 2010. Every year the EU Member States must submit their national reports to the European Commission in which they indicate how far they have progressed in achieving their targets.

The chart below shows that the EU biofuels policy up to date is not exactly a success story: Only 3 out of 25 member States (Germany, Austria and Sweden) reached the 2005 target. If biofuel promotion and use continues at this speed it is very unlikely that the majority of member state will fulfill the 2010 target.


Biofuels Target: reference value 2010

Despite the dissatisfactory track record of most of the member states the EU heads of state emphasised the important role of biofuels in reducing emissions from the road transport sector and in increasing security of energy supply. During the 2007 Spring Council the political agreement of a 10% binding target for renewable energy in transport has been struck as part of an overall 20% renewable energy target by 2020. On 23 January 2008 the European Commission put forward an ambitious package of proposals to drive the EU’s fight against climate change and promote renewable energy up to 2020 and beyond. Within this Climate and Energy Package, the Commission published the draft of a Renewable Energy Directive, which translated the political will into a legislative proposal. On 17 December 2008 the European Parliament and Council found an agreement on the Climate and Energy Package. As a result, the Renewable Energy Directive (Directive 2009/28) entered into force on 25 June 2009 and is going be transposed to the national legislation of the EU 27 by 5 December 2010.

The Renewable Energy Directive will shape the future biofuel policies of the EU Member States. Its core elements are the 10% binding target for renewables in transport and the introduction of a comprehensive and unparalleled set of sustainability criteria that biofuels need to fulfill to be counted towards the target.

The Renewable Energy Directive was discussed within a legislative package also containing the Fuel Quality Directive (Directive 2009/30). This Directive sets technical specifications for fuels, together with a target for the reduction of life cycle greenhouse gas emissions. Entered into force on 25 June 2009, the Fuel Quality Directive will be transposed into national legislation by 31 December 2010 at the latest.