Germany’s second parliamentary chamber – the Bundestag - finally sealed a piece of legislation on the promotion of biofuels on 18 June, after the first chamber – the Bundesrat - had rejected it. The former was able to maintain a lowering of the obligatory biofuels quota from 6.25% to 5.25%, raising it to 6.25% in 2010 only and freezing the level until 2014. However, the latter won a slower phasing out of the current biofuel tax breaks. Taxes will now rise by 3 euro cent instead of 6 to 18 euro cent per litre. The German biofuel industry criticised the outcome, arguing that this was not enough to save national producers from a current wave of bankruptcies. To view the official parliament statement (in German), click here. Following the official entry into force of the EU’s biofuel legislation in early June, the German government issued a sustainability ordinance in early July, which has already been given a green light by the parliament. The ordinance lays down the requirements for the sustainable production of liquid biomass – including palm oil – used to generate power. To view the ordinance text as agreed (in German), click here.

On 7 July, EU Member States agreed to impose definitive anti-dumping and countervailing measures against US biodiesel imports as of 12 July. These will be upheld for the next five years. Provisional measures had already been put in place in March to offset further harm to European producers ahead of the final decision. The decision was welcomed by the association of European biodiesel producers (EBB), which launched the complaint. EBB Secretary General Raffaello Garofalo said it was a positive conclusion “for the defence of our endangered industry”. To view the EU document on the Member States’ decision, click here. To view the EBB press release, click here.

On 8 July, G8 leaders meeting in Italy recognised the need to keep global temperature rise below two degrees Celsius above pre-industrial levels, and agreed on a global long-term goal of reducing global emissions by at least 50% by 2050 and, as part of this, on an 80% or more reduction goal for developed countries by 2050. This high-political level commitment was received by commentators as a positive step in the run-up to the international Copenhagen climate talks in December this year. However, leaders are yet to agree on the issue of financing of climate change mitigation measures in developing countries. They also failed to seal an agreement on crucial mid-term CO2 reduction targets. The G8 summit was therefore rated a “missed opportunity” to break the deadlock in international climate talks by environmental NGO Greenpeace. To view the G8 chair summary, click here.

European laws adopted within the framework of the ‘Climate and Energy Package’ and aimed at reducing CO2 emissions have now been published in the EU’s statute book, the so-called Official Journal. This means that the clock starts ticking to implement the legislation. Each of the 27 Member States has 18 months to implement the RED into national law, meaning the deadline will be around October 2010. For the FQD, implementation is required by 31 December 2010. Besides the Renewable Energy Directive (RED) and the Fuel Quality Directive (FQD), EU countries will also translate laws relating to emissions trading, passenger car emissions and carbon capture and storage among others. To view the RED, click here. To view the FQD, click here.

In May, the German Bundesrat (upper parliamentary chamber) refused to give its consent to proposed changes to national biofuels legislation. The Bundesrat’s approval is needed to enable the adoption of proposals that were agreed by the Bundestag (lower chamber) in late April after months of heated political debate and the withdrawal of specific sustainability requirements for palm oil and soybean oil. The upper chamber does not support the lowering of Germany’s obligatory biofuels quota, which it wants to maintain at 6.25. It is also demanding further tax breaks for biodiesel and vegetable oil. The matter is now being dealt with by a conciliation committee made up of representatives of both parliamentary chambers, which is set to meet again to discuss the beleaguered biofuels law on 18 June.

Centre-right parties have been strengthened in the European Parliament elections, which took place from 4-7 June. Some environmentalists fear that the centre-right’s traditional pro-business stance and the loss of some of its “greener” members in the new Parliament could translate into less overall support for green legislation. However, the Green Party was also able to boost their share of votes and win 8 additional seats. The second-largest political grouping in the Parliament, the Socialists, took a battering throughout Europe, which could lead them to take a more leftist stance and work more closely with the greens. The next Parliament will play an important role in environmental and climate change policies, as well as regulation in the food area. Meanwhile, the success of the centre-right, particularly in France and Germany, means that the re-appointment of European Commission President Jose Manuel Barroso is virtually certain. For the latest election results, click here.

Policy-makers and NGOs are pushing European governments to be ambitious ahead of the Copenhagen Summit. On 4 June, EU Environment Commissioner Stavros Dimas urged: “The climate conference in December is the world’s last chance to prevent the dangerous, perhaps even catastrophic levels of climate change that are projected by scientists to occur as early as 2050”. To view the full speech, click here. Meanwhile, international climate talks opened in Bonn (1-12 June) with the topic of Reducing Emissions from Deforestation and Forest Degradation (REDD) figuring high on the agenda. Environmental NGOs such as Greenpeace launched campaigns during the Bonn talks to increase pressure on governments and ensure Europe keeps its ambitions high despite the economic crisis. To view Greenpeace’s press release, click here.

After EU leaders reached a political agreement on the “climate and energy package” last December, the legal and translation services worked intensively throughout early 2009 to produce the final texts. These were rubber-stamped by member states in Brussels on April 6. To view, click here.

The EU’s ‘Energy and Climate Change’ package was formally adopted by Member States in Brussels on 6 April. This includes two pieces of legislation concerning biofuels - the Renewable Energy Directive (RED) and the Fuel Quality Directive (FQD) – and a set of sustainability criteria for biofuels. No significant changes have been made to the texts agreed by EU governments and the European Parliament in December last year. Publication of the final RED and FQD texts in the EU’s statute book is now expected to take place in May. Twenty days after publication, the clock will start ticking for EU Member States to transpose the legislation into national law. They will have 18 months to implement the RED, meaning the deadline will fall somewhere around October 2010. For the FQD, implementation is required by 31 December 2010. To view the Council press release, click here.

On 23 April, the German Parliament – the Bundestag – adopted a controversial piece of draft legislation on the promotion of biofuels. The new law seeks to delay the introduction of higher biofuels blends in order to address concerns about food competing with fuels. Earlier this year, MPs were forced by the European Commission to scrap provisions that specifically singled out biofuels from palm and soy and would have obliged operators to demonstrate their compliance with sustainability criteria, resulting in a de facto exclusion from the scheme. Parliamentarians have now urged the government to implement the EU’s sustainability criteria swiftly (see previous article) and set up a certification system for energy from biomass. To read the German Parliament press release (in German), click here.

The European Commission wants to accelerate its work on legislative proposals to quantify the impact of indirect land use change (ILUC) on the overall greenhouse gas (GHG) emissions savings of biofuels. Originally scheduled for the end of next year, the Commission is now keen to present its proposals as soon as March 2010, ahead of EU Member States presenting national renewable energy action plans in June that year. Several Commission departments have already started studying the issue of indirect land use change and a public consultation is expected in mid-2009.

A Commission communication on the EU position it will defend at the UN Copenhagen climate conference in December stirred strong reactions from the European Parliament and environmental and social NGOs in early February. Parliament President Hans-Gert Poettering welcomed the paper and said it was “an important step towards leading our international partners to conclude an agreement”. Greenpeace, WWF and Oxfam criticised the document, arguing its proposals on emission reduction targets and aid to developing countries were too weak. To read the Commission Communication, click here.

The European Commission is expected to announce the introduction of provisional anti-dumping and anti-subsidy duties on US B99 biodiesel imports in early March. This follows complaints made by the EU biodiesel industry in April 2008. According to Reuters, the expected anti-dumping duties “would range from 2 euros to 19 euros per 100 kilograms and the anti-subsidy duties from 23 to 26 euros per 100 kg”. In January, the European Biodiesel Board said European industry was “more and more hit by the catastrophic consequences of B99 unfair exports” and urged a “strong reaction in the short term to ensure the future viability of the EU biodiesel industry”. To read the Reuters article, click here.

The implementation of EU and international policies to combat climate change and drive energy efficiency will be key priorities in 2010 for the European Commission, which published its annual policy strategy for next year on 18 February. Implementation of the EU climate and energy package - which includes the Renewables Directive with its 20% renewable energy and 10% biofuels targets - will figure high on the agenda. The EU is also stepping up its green investments and will continue to promote biodiversity protection in 2010. To read the Commission’s 2010 policy strategy, click here.

On 4 February, the European Parliament adopted recommendations on future EU climate change policy ahead of the Copenhagen climate change conference in December. MEPs are calling for ambitious cuts of 80% in greenhouse gas emissions by 2050, which would establish the EU as an international leader. On biofuels, the Parliament’s non-binding recommendations urge the EU to take a global perspective and point to the commercial opportunities for developing countries. They also insist on the need to resolve the issue of possible competition with food production and sustainability. The European Parliament is particularly concerned about indirect effects and social aspects related to biofuels cultivation. It is therefore keen to push the EU to develop a global set of sustainability standards for biofuels. To read the full Parliament report, click here.

A new international agency to promote renewable energies across the world was launched in Bonn, Germany, on 26 January. The International Renewable Energy Agency (IRENA) is supported by 75 countries, the US and the UK not being among the signatories. The US, however, is expected to join at a later stage as President Obama’s administration has set out ambitious goals for the use of renewables in electricity. EU Energy Commissioner Andris Piebalgs urged all EU Member States to support the agency. IRENA is meant to be the first truly international organisation offering both industrialised and developing countries support and concrete advice to help them reach higher shares of renewable energies and move towards low carbon economies. It will work closely with other related international organisations and initiatives, only offering its services at the request of member states. To view the IRENA website, click here.