EU renewables deal to boost electric cars and second gen biofuels

Yesterday's deal on the EU's 2020 renewable energy targets will result in a significant boost for electric car manufacturers and producers of so-called second generation biofuels after member states agreed to significant reforms to the controversial target requiring 10 per cent of transport fuels come from biofuels.

The original renewable energy action plan had required a tenth of all transport fuels to come from renewable fuels, essentially equating to biofuels. However, with research suggesting many biofuels made from crops such as palm oil, sugar cane and corn are contributing to rising food prices and in some cases deforestation many scientists and campaigners had argued that while well intentioned, the target would do more harm than good.

In response to these concerns, member states yesterday finalised a deal with the European Parliament that will see the 10 per cent target retained, but the definition for renewable fuel extended to cover renewable electricity used to power cars and trains.

In an attempt to further promote electric cars and second generation biofuels made from waste and non-food energy crops such as jatropha over conventional biofuels, renewable electricity consumed by electric cars will count for 2.5 times its input towards the overall 10 per cent target, while second generation biofuels will similarly be double credited.

Steve Hartridge, managing director of G-Wiz electric car supplier GoinGreen, welcomed the move, claiming it should represent a significant boost to the emerging electric car industry.

"I hope national governments embrace the targets and this filters through to national programmes to promote electric vehicles," he said. "If the EU is to count renewable energy used by electric cars at 2.5 times the actual amount, they are obviously serious about the technology."

Where conventional biofuels are still used, the EU said they will have to deliver greenhouse gas emission savings of 35 per cent compared with conventional fuels, and under the legislation, the European Commission will be required to report on how to measure biofuels impact on land use changes within two years.

Mark Breddy, Greenpeace Brussels spokesman, welcomed the wider 20 per cent renewable energy target and the attempts to minimise the potentially negative effects of the 10 per cent biofuel target, but warned that the new rules still did not go far enough.

"The push for electric cars and more sustainable biofuels is good news, but the legislation does not rule out the continued large scale use of biofuels that have been shown to be unsustainable."

There will also be concerns about the extent to which the new targets will be monitored and enforced given the current difficulty in tracking precisely where biofuels have originated from.

In its most recent report, the UK's Renewable Fuels Agency found that less than 20 per cent of biofuels in the UK met sustainability standards and that there was no information on the fuels' country of origin in more than 40 per cent of cases – a scenario that could make it difficult to ascertain which biofuels should be allowed to count towards the target.