Biofuels in the European Union, a vision for 2030 and beyond

The European Union is strongly dependent on fossil fuels for its transport needs. In order to reduce this dependence and to meet our sustainability goals, we need a clean, secure and affordable supply of transportation fuels. There, biofuels can provide a very significant contribution in the short to medium term, and the Commission takes an active approach to promote the use of biofuels. For example, the Commission has recently adopted the Biomass Action Plan and the EU Strategy for Biofuels, and gives a high priority to research and development for biofuels and biofuel technology in the Framework Programmes for Research.

The EU road transport sector accounts for more than 30% of the total energy consumption in the Community. It is 98% dependent on fossil fuels with a high share of imports and thus extremely
vulnerable to oil market disturbance. The growing transport sector is considered to be one of the main reasons for the EU failing to meet the Kyoto targets. It is expected that 90% of the increase of CO2 emissions between 1990 and 2010 will be attributable to transport.

Europe has defined ambitious targets for the development of biofuels. The aim is to improve European domestic energy security, improve the overall CO2 balance and sustain European
competitiveness. The development of innovative biofuel technologies will help to reach these objectives.

The current production of liquid biofuels in the EU 25 is about 2 Mtoe, which is less than 1% of the market. Although there have been marked increases in production and use in recent years, the market share is at risk of failing the EU policy target for 2010 of 18 Mtoe used in the transport sector. The EU has a significant potential for the production of biofuels. It is estimated that between 4 and 18% of the total agricultural land in the EU would be needed to produce the amount of biofuels to reach the level of liquid fossil fuel replacement required for the transport sector in the Directive 2003/30/EC. Furthermore, biofuels can contribute to the EU’s objectives of securing the EU fuel supply while improving the greenhouse gas balance and fostering the development of a competitive European (biofuels and other) industry.

An ambitious and achievable vision for 2030 is that up to one quarter of the EU’s transport fuel needs could be met by clean and CO2-efficient biofuels. A substantial part will be provided by a competitive European industry, using a wide range of biomass resources, based on sustainable and innovative technologies. Biofuel development will create opportunities for biomass providers, biofuel producers and the automotive industry. Also, the European technology will be used in 2030 in many countries exporting biofuels to Europe.

Reaching the vision means considerably increasing domestic biofuel production, while balancing it with international biofuel trade. This will not only require substantial investment in biomass production, harvesting, distribution and processing, but also calls for agreed biofuel and biofuel-blend standards.

The purpose of the present document is to address all relevant issues and provide a vision and outline strategy, with emphasis on RTD&D, to increase, markedly, biofuels production and use in the EU. A good co-ordination between major European actors will be essential and would be facilitated by joint research and innovation programmes and joint operation of experimental facilities.