The European Union relies on foreign companies to supply 80% of its oil imports, according to a new study on the continent’s oil dependency. Russian firms supply more than one-third (36%) of imported crude, and just two of the top 10 oil suppliers to the EU are European – Shell and Norway’s Statoil.
By Jelena Simjanovic, clean energy directorWHAT I LEARNED IN 2016: I joined T&E in late summer, soon after the European Commission published its Low-emission Mobility Strategy. Its goals looked promising: increasing efficiency of the transport system; speeding up the development of low-emission alternative energy for transport; and moving towards zero-emission vehicles. While I had a general idea about biofuels and sustainability issues around them, I entered the transport world after 10 years of working on a variety of energy sector issues and carbon markets. I feel privileged to have a job where I can learn as much as I have learned in the past five months, while at the same time utilising my extensive knowledge of the electricity and energy markets for the discussion on transport electrification and development.
Some of the world’s most valuable forests are still being destroyed in order to make palm oil, of which a considerable portion ends up as biodiesel for use on Europe’s roads. That is the striking message from an investigation by a global alliance of NGOs, including T&E, that has uncovered horrific deforestation in Indonesia’s pristine rainforest in the remote province of Papua. T&E says this highlights the urgent need for the EU to correct the anomalies in European legislation that allow climate-harming biofuels to count towards climate targets.
Last year was the one in which it became plain for everyone to see that transport had turned from being the grey sheep to the black sheep in Europe and the world’s efforts to improve the environment.
Further decarbonisation of transport through a shift to alternative fuels and electro-mobility forms a major part of the European Commission’s strategy for an ‘energy union’, unveiled last week. With transport being responsible for more than 30% of EU energy consumption and a quarter of emissions, the Commission said legislation on ‘decarbonising the transport sector, including an action plan on alternative fuels’ would be put forward in 2017.
EU governments last week agreed three modest targets to cut greenhouse gas emissions, increase the share of renewable energy and improve energy efficiency by 2030. Environmental groups said the goals would not do enough to cut Europe’s dependence on fossil fuels and put it on track to meet its own 2050 climate pledges.
New research from the US has highlighted the dangers for the fight against climate change if the EU does nothing to reduce dependence on dirty oil such as Canadian tar sands. The US Natural Resources Defense Council (NRDC) says if the EU Fuel Quality Directive is not comprehensively implemented, the amount of tar sands oil imported from Canada by 2020 will be 175 times greater than in 2012. This flood of tar sands would increase the carbon intensity of European fuels by 1.5%, making it more difficult and more expensive to meet the FQD’s 6% target by 2020.
Efforts to reduce the amount of food crops used to make transport fuels have suffered a setback with the defeat of a proposal that would have limited how much of the EU’s renewable fuels target could be made up from food-based biofuels. T&E said the proposal “was ugly, but the status quo is even worse”.
Hopes of having the full social and environmental effects of biofuels reflected in EU legislation before 2020 are fading after another round of negotiations led to further weakening of the European Commission’s proposal. With an agreement likely in the Council of Ministers next month, it looks as if the requirement for member states to report the effects of indirect land-use change (ILUC) will be further weakened. Also, food-based biofuels that are worse for climate change than traditional petrol and diesel will be allowed to increase by 50% from today’s levels and will not be capped under the Fuel Quality Directive (FQD).