Optimising the ‘grandfathering’ of existing biofuels production

The European Union supports the consumption of biofuels in several ways, most notably through the Renewable Energy Directive (RED), which contains a 10% target for renewable energy in transport to be reached by 2020.

The Fuel Quality Directive (FQD) also obliges (fossil) fuel suppliers to reduce the greenhouse gas impact of their fuels by 6% by 2020.

Biofuels are expected to play a major role in achieving both targets.

Given that these laws are a key part of the EU’s climate strategy, it’s key to ensure that the use of biofuels actually leads to a global reduction in CO2 emissions. But Indirect Land Use Change (ILUC) and its associated emissions threaten this goal. An impressive body of scientific work shows that ILUC effects due to EU biofuel policies are likely to be considerable, even if the exact outcomes of modelling studies vary. If left unchanged, EU policy will lead to more greenhouse gas emissions, not less.