Who could have imagined that over the last year the oil industry would be facing so many radical changes and high-carbon tar sands would be having such a tough time? The year 2015 told us that these kinds of positive changes can happen rapidly when economics, citizen mobilisation and political leadership converge in the same direction.
Europe’s diesel cars received indirect subsidies totalling almost €27 billion last year through lower fuel taxes, a new study has found. Diesel fuel was taxed at, on average, 14 cent less per litre than petrol in 2014, according to Europe’s tax deals for diesel, which was published by T&E last month.
The environmental direction of Canada’s new Liberal Party government is known – easily an improvement on Stephen Harper’s hostile Conservative administration. But the extent to which new prime minister Justin Trudeau (pictured) moves the G7 country away from its tar sands obsession remains to be seen. Particular concern surrounds his commitment to the controversial Keystone XL oil pipeline.
Transport is the greatest consumer of energy in the developed world, consuming more than industry, the International Energy Agency (IEA) has found for the second consecutive year. In the EU, transport still lags behind industry in total final energy consumption, but the gap is narrowing, and road transport’s continued reliance on oil is making the sector increasingly slow to embrace lower-emission energy.
New figures show the amount of biofuels being used for transport in the EU rose by 6.1% in 2014, but the increase is less than the fall in transport biofuels registered in 2013. The rise suggests trends are going in the wrong direction as biodiesel takes up the most important part of the increase, though the figures should be treated with caution because there is limited information on the type of feedstocks used to produce these biofuels.
New research has suggested that investing in public and low-emission transport could bring massive financial savings in addition to making a sizeable contribution to reducing greenhouse gases.
It is impossible to have missed the news on cheap oil and gas, and what it is doing to our economies. A Google search for ‘oil price drop’ shows you what Reuters, BBC, Bloomberg, Forbes, etc – the big boys – have to say on the subject. And shale plays a key role in both. And indeed, oil costs less than it did in 2008 and 2012. And indeed, this is having a big economic impact. It means that Europe in 2014 saved around 1% of GDP, more than €100 billion, in import bills. A free and welcome boost. But this column is not seeking to add to what Reuters has to say. It wants to offer two other perspectives.
Bioenergy accounted for more than half of all renewable energy demand in Europe in 2014, according to projections just released by the European Commission. Burning biomass and biofuels account for 47% and 9%, respectively, of renewable energy, versus 11% from wind, 17% from hydro and 7% from solar.
A report in the Netherlands has highlighted the need for greater transparency on the origin and carbon footprint of biofuels if they are to play a role in a more sustainable transport fuels market.