How EU states can tackle unsustainable biofuels and promote cleaner alternatives?
RED III implementation for Europe's member states
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Member states need to implement the third version of the Renewable Energy Directive by May 2025. It is a difficult task as the ambition for renewables in the transport sector has increased significantly.
There is also still high demand for crop biofuels, the most unsustainable energy source, to decarbonise the transport sector. It is therefore crucial to understand what options are available for member states to avoid doing more harm than good.
Higher renewable target in transport still favours crop biofuels
The changes to the overall target for renewables in the transport sector (RES-T) will increase the volumes of biofuels needed by 2030 - with a new 29% energy target. It will still favor crop biofuels, not only food & feed crops like rapeseed or soy but also intermediate crops that could potentially lead to negative land use changes. The status quo on the cap for food and feed biofuels and the lack of more effective action to phase-out palm and soy before 2030 remain key issues for member states to tackle.
A big surge for advanced and waste biofuels
A surge in demand for advanced and waste biofuels is expected as they are being incentivised not only via the RES-T target but also with the denominator expansion, more ambitious changes to sub-targets on Part A biofuels, the enlargement of the list of Annex IX feedstocks and the additional demand for these feedstocks in ReFuelEU and FuelEU Maritime. This can result in many negative environmental and climate issues as well as cases of fraud.
T&E's recommendations:
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Member States can reduce the overall RES-T target from 29% to 22% in energy terms or in carbon intensity from 14.5% to 11% by phasing out support for food and feed biofuels, and starting with an immediate phase out of palm and soy
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Member States should limit the contribution of intermediate crops towards RES-T targets
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Member States should require more information from economic operators regarding compliance on sustainability criteria on biofuels
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Member States should disclose information per fuel supplier to increase transparency
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Member States should reduce the sub-target for advanced biofuels (Part A of Annex IX) to 3.5% and increase the sub-target for RFNBOs to 2%
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Member States should limit or exclude problematic Annex IX feedstocks, such as intermediate crops and crops grown on severely degraded land, from counting towards sub-targets or renewables targets all together
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Member States should identify the domestic availability of advanced and waste biofuels with a special attention to waste hierarchy, the cascading principle, biodiversity and ecosystem services
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Member States should fight fraud by reviewing completely the certification system for biofuels
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