EU public wants fiscal measures, standardization to boost biomass

EU public wants fiscal measures, standardization to boost biomass

Brussels (Platts)--2May2005


Fiscal measures and standardization topped the results of the European
Commission's public poll in the first quarter 2005 on its proposed biomass
action plan. But the EC's own impact assessment expected this month is likely
to focus first on streamlining existing European Union-level policies across
such diverse areas as energy, environment, agriculture and regional policy.

The EC identified biomass as an underperforming sector in its review of
renewables last year, which concluded that the EU would miss its target of
doubling the proportion of energy from renewable sources to 12% of the EU's
total energy use by 2010 without taking further measures. It proposed
developing a biomass action plan covering all potential fuels including
biomass, agricultural and forestry residues and waste, and all uses--heating,
cooling, power and transport biofuels. The EU has available biomass resources
of about 150-180-mil metric tons of oil equivalent/year--but it only uses
about 50-55mtoe/year.

The EC sees its common agricultural policy--subsidizing farmers--and regional
structural funds--which aim to bring the poorer EU members up to the EU
average prosperity level--as having great potential to boost biomass. In
agriculture, under the 2003 CAP reform farmers in the 15 pre-May 2004 EU
member states can claim a Eur45/hectare premium for growing energy crops
(except sugar beet). The aim is to support climate change objectives to reduce
emissions. But the premium is not available to the ten new, mostly central and
eastern European member states--a region which many see as having huge
potential for energy crops--until 2008. 

The EC is proposing a total budget of Eur336-bil (US433-bil) for the EU25 for
the 2007 13 structural funds, including Eur63-bil for the cohesion fund,
available to EU member states with gross national income per capita of less
than 90% of the EU average--mainly the new member states. Renewables and
energy efficiency projects are eligible, but in competition with transport
networks and sustainable transport.

The EC is negotiating with member state governments the high level strategic
guidelines on how the 2007-13 funds should be spent to ensure consistency with
wider EU policies. EU regional policy commissioner, Danuta Hubner, plans to
present a draft to EU regional policy ministers at an informal meeting on May
20-21, and already sees environmental protection--as well as transport
networks and innovation--as one of the core priority themes. "These are the
areas where the cohesion policy--with its unique system of governance,
reliable and stable financial framework for investment and leverage effect--
can contribute to the real change on the ground," Hubner told the Committee of
Regions last month. The EC hopes that the Council of member states government
will approve the budget for the structural funds by end-2005 and adopt the
strategic guidelines early 2006.

This story was originally published in Platts European Power Alert
http://www.europeanpoweralert.platts.com

Please visit: www.platts.com

Their coverage of energy matters is extensive!!.