EU eyes legal action over states' failure to meet biofuel targets
Brussels (Platts)--25May2005
The European Commission is hoping to take legal action against member states that have failed to adopt the EU's targets for the use of biofuels in transport at a national level, a key official at the European Commission's energy and transport directorate said Wednesday. Under the EU's 2003 biofuels directive, member states are required to set indicative targets for market penetration of biofuels. The EU has said it wants to see biofuels making up at least 2% of transport fuels by 2005, rising to 5.75% by 2010. Although the directive states the targets are indicative, the European Commission believes it has a legal case against members states that fail to give a compelling and reasoned explanation for missing the goals, Paul Hodson said on the sidelines of a refining conference in Brussels. In March, the EU sent its first legal warnings to 19 states out of the EU's 25 members that failed to transpose the directive by the deadline of Dec 31, 2004. To date, Belgium, Italy, Luxembourg and Slovenia have still not submitted national reports and Cyprus, Estonia, France, Portugal have yet to set definitive targets. Of the national targets submitted so far, the average level biofuels use across the European Union is 1.4% for end-2005, with 12 of the EU25 setting targets below 2%. "I must say we are disappointed," Hodson told the refining conference. "Biofiels usage has as least picked up significantly in nearly all members states [but] we have a law and we going to make damn sure member states implement it." Countries that have set a reference value below 2% include the UK, Denmark, Finland, France, Greece, Hungary, Ireland, Malta, Netherlands, Poland and Portugal. Under the EU's 2003 directive members states must give a clear target for biofuel use and propose "motivated" plans for achieving the target. Hodson said the commission plans to argue that some member states have not provided good reason, or motivation, for setting their targets below 2%. "We have to make a legal case that the word 'motivate' means to give a good reason and we have to make a factual case that the member states have not given a good reason," Hodson said. He said the main reasons member states have given explaining why their biofuel targets are below 2% fall in three categories: that their energy biomass policies are focused at stationary fuel use rather than in transport, that the penetration rates cannot be accelerated, and finally that biofuels are "not a good idea." Hodson said a legal decision would likely be made in July on whether to proceed with infringement proceedings for those member states that have not submitted plans and have not given solid reasons for setting a target of less than 2%. This story was originally published in Platts Petrochemical Alert http://www.petrochemcialalert.platts.com
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