Biotech Updates

EU 2009 Biofuels Report Highlights

July 17, 2009
http://gain.fas.usda.gov/Recent%20GAIN%20Publications/General%20Report_The%20Hague_Netherlands-Germany%20EU-27_6-15-2009.pdf
http://www.thebioenergysite.com/articles/370/eu-27-biofuels-annual-report-2009

Global Agricultural Information Service (GAIN) of the United States Department of Agriculture (USDA) Foreign Agricultural Service, recently released its 2009 Biofuels Annual Report for Europe. The biofuels market in the European Union (EU) is said to be driven by consumption mandates and incentives. The EU Directive 2003/30 sets non-binding targets for biofuel consumption, but member states are left to choose the strategies (support measures, tax incentives, penalties, etc) to achieve these targets. Biodiesel dominates the EU transport-biofuels market, accounting for 72% of market share in 2008, followed by ethanol at 24%. Some highlights of the report are: (1) in the summer of 2008, the EU biodiesel market suffered further deterioration (which started in 2007) due to drops in fossil fuel prices and policy changes in Germany. However, the bioethanol market expanded and exceeded forecasts, (2) in 2010, an upward trend in both biodiesel/bioethanol production and imports is expected, as a result of higher domestic demand spurred by biofuel-use mandates, (3) by 2010, the EU is not expected to achieve Directive 2003/30 target of 5.75%, and (4) because the biofuel targets for 2020 (laid down in the EU Energy and Climate Change Package (CCP)) were finally adopted by the European Council on April 6, 2009, member states are required submit their respective national action plans by June 2010..