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Biofuels directive (Directive 2003/30/EC) - Introduction of a biofuels quota; bioethanol quota

FACT SHEET NO.: Cat-No.5 / Subcat-No.5.3-1

General Information

Title

FACT SHEET NO.: Cat-No.5 / Subcat-No.5.3-1

Category

5. Efficiency standards & Flanking measures

Subcategory

5.3 Standards: environment

Transport policy measure (TPM)

Biofuels directive (Directive 2003/30/EC) - Introduction of a biofuels quota; bioethanol quota

Description of TPM

This Directive promotes the use of biofuels in the EU. The Directive stipulates that 5.75% of all transport fuels should be replaced by bio fuels in 2010 and up to 10% in 2020. The ECs general objective is that biofuel should be sustainable. In that sense the intention of the Directive is positive, but the TPM may have some negative side effects, depended upon its implementation.
• On the positive side there is the development of biofuel as an alternative to fossil fuels. This will lead to less CO2 emission. Also, new technologies to produce biofuel are being developed. (see WorldBank, 2008, World Energy Council, 2010 & UNCTAD, 2008).
• The main challenge is to develop biofuels which do not compete with the food chain. This concerns a negative side of the Directive. For example, Tabeau (2009) indicates that the Directive has an impact on the markets for cereals, oilseeds and sugar. The imports to Europe will grow more than twice. The study shows that domestic prices of biofuel crops and sugar is expected to rise by 25% and 19% respectively.

Implementation examples

General measure

Objectives of TPM

The directive stipulates that 5,75% of all transport fuels should be replaced with biofuels by 2010.

Choice of transport mode / Multimodality

No change

Origin and/or destination of trip

No change

Trip frequency

No change

Choice of route

No change

Timing (day, hour)

No change

Occupancy rate / Loading factor

No change

Energy efficiency / Energy usage

Biofuel seems to be more fuel efficient, therefore less fuel is needed

Main source

[1] Directive 2003/30/EC of the European Parliament and of the Council of 8 May 2003 on the promotion of the use of biofuels and other renewable fuels for transport.
[2] World Energy Council (2010): Biofuels: Policies, Standards and Technologies. London: World Energy Council.
[3] World Bank (2010):Advanced Biofuel Technologies. Status and Barriers. Policy Research Working Paper 5411.
[4] UNCTAD (2008): Biofuel production technologies: status, prospects and implications for trade and development. New York/Geneva: UNCTAD.
[5] Biofuels (2011): Ethical issues - Nuffield Council on Bioethics
[6] What are the Effects of Biofuels and Bio products on the Environment, Crop and Food Prices and World Hunger? - KD Communications (Karen Daynard) and Terry Daynard (2011)
[7] Tabeau et al (2009): Impact of the EU Biofuels Directive on the EU food supply chain. Paper prepared for presentation at the 113th EAAE Seminar 'A resilient European food industry and food chain in a challenging world', Chania, Greece, September 3-6, 2009.
[8] ActionAid (2012) Fuel for thought. Addressing the social impacts of EU biofuels policies. Brussels: Actionaid.

Traffic Impacts

Passengers 

         

Transport operators 

           

Unassigned 

         

Travel or transport time

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Risk of congestion

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Vehicle mileage

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Service and comfort

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Overall impacts on social groups

Implementation phase

Operation phase

Summary / comments concerning the main impacts

As the volume of biofuel increases, the volume at sea will increase, as well as the imports into the EU. This may lead to extra traffic in ports, both on sea and land side. On the other hand if fossil fuel is replaced (partly) by biofuel, then this will lead to less transported volumes. In the end the two may level out each other.

Quantification of impacts


Economic Impacts

Passengers 

         

Transport operators 

           

Unassigned 

         

Transport costs

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Private income / commercial turn over

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Revenues in the transport sector

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Sectoral competitiveness

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Spatial competitiveness

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Housing expenditures

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Insurance costs

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Health service costs

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Public authorities & adm. burdens on businesses

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Public income (e.g.: taxes, charges)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Third countries and international relations

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Overall impacts on social groups

Implementation phase

Operation phase

Summary / comments concerning the main impacts

The introduction of biofuels is not without debate. Concerns are about food security, food prices, infringment of farmer rights, biodiversity aqnd pollution in third countries. On the other hand, development of new technologies will help to overcome problems. The World Energy Council (2010) states that technology is a key factor to enhance both food and bio-energy production and increase the output without adverse economic and environmental implications.

Quantification of impacts


Social Impacts
Environmental Impacts

Passengers 

         

Transport operators 

           

Unassigned 

         

Air pollutants

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Noise emissions

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Visual quality of the landscape

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Land use

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Climate

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Renewable or non-renewable resources

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Overall impacts on social groups

Implementation phase

Operation phase

Summary / comments concerning the main impacts

The environmental impacts concern CO2 emission. A Canadian study indicates that a substitution of 10% into gasoline means a 62% reduction in net greenhouse gas, on a per-litre base. The corn prices will rise by $ 0.4-0.6 per bushel (see KD communications 2011).
The use of biofuels concern mainly road transport.
An often mentioned incentive for using biodiesel is its capacity to lower greenhouse gas emissions compared to those of fossil fuels. If this is true or not depends on many factors. Especially the effects from land use change have potential to cause even more emissions than what would be caused by using fossil fuels alone (see KD Communication)

Quantification of impacts


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