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Executive Summary

Policy and Programs Regulations influencing the EU biofuels and biomass market are the EU Energy and Climate Change Package (CCP) and the Fuel Quality Directive (FQD). The Package includes the “20/20/20” mandatory goals for 2020, one of which is a 20 percent share for renewable energy in the EU total energy mix. The European Commission expects (EC) heat and power production from solid biomass to account for about 45 percent of the renewable energy use in 2020. The share of liquid biofuels is projected to be about twelve percent. In the Renewable Energy Directive (RED), which is part of the CCP, specific sustainability requirements are laid out for liquid biofuels. These include minimum greenhouse gas emissions reductions, land use and environmental criteria as well as economic and social criteria. The implementation of harmonized sustainability requirements for solid biomass is postponed to after 2020. On June 13, 2014, the EU Energy Council reached a political agreement on the future policy for biofuels. The main features are a seven percent cap on conventional biofuels, made from feed and food feedstock, and further support of the transition to second and third generation biofuels. The Council aims to reach an agreement with the EC and Parliament in October.

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