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Bioenergy: Policy and Status

Bioenergy: Policy and Status. AgEng2008 conference, Crete 23-25 June 2008. Anthi CHARALAMBOUS DG TREN, D2 Technology and Innovation in Energy. EUROPEAN COMMISSION. . Contents. Background (energy in figures) The Energy & Climate Package January 2008 The SET Plan (November 2007)

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Bioenergy: Policy and Status

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  1. Bioenergy: Policy and Status AgEng2008 conference, Crete 23-25 June 2008 Anthi CHARALAMBOUS DG TREN, D2 Technology and Innovation in Energy EUROPEANCOMMISSION

  2. Contents • Background (energy in figures) • The Energy & Climate Package January 2008 • The SET Plan (November 2007) • Food Prices (May 2008) • Financial Instruments/support (2007-2013) • Conclusions

  3. Bioenergy in the Global scene already plays a major rolesupplying ~10% of world primary energy supplies IEA Renewables Information 2007

  4. Breakdown of renewable electricity in 2005 (normalised) for the EU-27

  5. RES-Heating Cooling expected growth Heating and cooling projections by 2020 Source: Renewable Energy Roadmap COM(2006) 848 final

  6. Source: EurObserv’ER 2007

  7. Current status: Bioethanol

  8. Contents • Background (energy in figures) • The Energy & Climate Package January 2008 • The SET Plan (November 2007) • Food Prices (May 2008) • Financial Instruments/support (2007-2013) • Conclusions

  9. Package of energy and climate measures (January 2008) Reform of emissions trading scheme (ETS) National targets for greenhouse gas emissions in non-ETS sectors (buildings, transport, agriculture) Directive on Carbon Capture and Storage (CCS) Renewable Energy Directive Reform of environmental state aid guidelines  11

  10. Renewable Energy Directive Sets targets for 2020: National targets for the overall share of renewable energy (adding up to 20%) Targets for renewable energy in transport (10%) Flexibility in meeting targets: Electricity and large-scale heat consumed in one Member State can count towards the target of another Removes obstacles to the use of renewable energy: Improving administrative procedures, information provision and grid access Higher blends of biofuel in diesel Improves the performance of renewable energy: Efficient forms of renewable energy in buildings Biofuel sustainability and national reporting Incentive for second-generation biofuels  12 Climate Action: Biofuels in the renewable energy directive

  11. The RES Directive (1) Sets mandatory national targets for RES shares, including 10% biofuels share, in 2020 (Art.3 and 5) Requires national action plans(Art. 4) Standardises “guarantees of origin” (certifying the RES origin of electricity or heat) (Art. 6, 7, 8 & 10) Enables the transfer of guarantees of origin to give Member States flexibility to meet their targets by developing cheaper non domestic renewable energy (Art. 9)

  12. The RES Directive (2) • Reforms, or requires reforms of administrative and • regulatory barriers to the growth of RES (Art. 12) • Requires improvements in provision of information • and training regarding renewable energy (Art. 13) • Improves renewables’ access to the electricity grid • (Art. 14) • Creates a sustainability regime for biofuels(Art. 15- • 18)

  13. National Renewables Targets Shares of renewable energy, 2005 and 2020 Sets mandatory national targets for renewable energy shares, including 10% biofuels share, in 2020: from 8.5% to 20% for the EU overall.

  14. How do we get there? BioPower is estimated to triple by 2020 in relation to 2005

  15. The EU Biomass Action Plan Communication COM(2005)628 final Purpose: achieve 12% RES target by 2010, diversify energy mix, reduce greenhouse gas emissions, job creation and stabilisation of rural regions Main features: • supplemantary to EU legislation • holistic approach: from biomass mobilisation to end use, from awareness rising to research • comprising all energy sectors: electricity, heating/ cooling, transport fuels

  16. National Biomass Action Plans (nBAPs)  6 ms currently have developed a nBAP (Denmark, Esthonia, Ireland, Netherlands, Slovenia and UK)  7 ms can be considered in preparation phase (AT, BG, CZ, FR, DE, LV, SK)  14 ms have no nBAPs 18 Climate Action: Biofuels in the renewable energy directive |

  17. Biofuels sustainability – Criteria • Greenhouse gas impact • Land use/ carbon stock • Biodiversity • Environmental requirements for agriculture 19 Climate Action: Biofuels in the renewable energy directive |

  18. Biofuels sustainability – Scope • The sustainability criteria apply to: • Biofuels (liquid and gaseous fuels used in transport) • Other bioliquids (liquid fuels used in heating and electricity) • By 2010, the Commission will report on criteria for other energy uses of biomass 20 Climate Action: Biofuels in the renewable energy directive |

  19. Promotion of Biofuels (1) Sustainability criteria for biofuels GHG savings – minimum of 35% No raw materialfrom undisturbed forests, biodiverse grassland, nature protection areas (unless taken harmlessly) No conversionof wetlands and continuously forested areas for biofuel production (to protect carbon stocks) All EU biofuels must meet “cross compliance” environmental rules

  20. Promotion of Biofuels (2) • Consequences of not meeting the criteria: • Biofuels do not count towards targets • Not eligible for national biofuel obligations • Not eligible for tax exemptions and similar financial support • Verification of compliance: • Responsibility of Member States • To reduce the administrative burden, Commission can decide that “certification schemes” give reliable proof of compliance • If so, all Member States have to accept these certificates as proof

  21. What‘s next on the overall package? Policy proposal of the Commission, January 2007 Endorsed by the European Council, March 2007 Endorsed by Parliament, September 2007 Legislative proposal of the Commission, January 2008 Discussion by Council of Ministers, European Council and Parliament through to 2009 Adoption May 2009??? 

  22. Contents • Background (energy in figures) • The Energy & Climate Package January 2008 • The SET Plan (November 2007) • Food Prices (May 2008) • Financial Instruments/support (2007-2013) • Conclusions

  23. 22 November ‘package’ • COM(2007)723 – SET-Plan Communication Supporting documents: • SEC(2007)1510 – Technology Map • SEC(2007)1511 – Capacities Map Impact assessment: • SEC(2007)1508 & SEC(2007)1509 • http://ec.europa.eu/energy/res/setplan/communication_2007_en.htm 25 EUROPEANCOMMISSION |

  24. The SET-Plan Some key technological challenges • First and foremost, energy efficient buildings, appliances, equipment, industrial processes and transport • Developing 2nd generation biofuels • Getting large scale offshore wind competitive within the short term • Getting photovoltaic electricity competitive to harness solar energy • Creating a European smart, bi-directional, RES friendly grid • Fuel cell and hydrogen technologies • Sustainable coal and gas technologies • Fourth generation fission nuclear reactors and future fusion technology • …

  25. The SET-PlanProposals • Joint strategic planning – Steering group + Information System • Effective implementation: • European Industrial Initiatives: strategic technology alliances. • European Energy Research Alliance • Trans-European Energy Networks and Systems of the Future – Transition planning • Increase in resources, both financial and human. • Reinforce international cooperation

  26. Contents • Background (energy in figures) • The Energy & Climate Package January 2008 • The SET Plan (November 2007) • Food Prices (May 2008) • Financial Instruments/support (2007-2013) • Conclusions

  27. Food vs Fuels • Commission Communication COM(2008)321 final (adopted 20.5.2008) – “Tackling the challenge of rising food prices Directions for EU action” • Policy responses to mitigate the effects of rising global prices • This document was discussed in the European Council 19-20 June 2008 • Short term measures in the context of the Health Check of the Common Agricultural Policy • Biofuels production is not the only cause of the increase in the global food prices 29 Climate Action: Biofuels in the renewable energy directive |

  28. Food vs Fuels • Commission Communication COM(2008)321 final (adopted 20.5.2008) – “Tackling the challenge of rising food prices Directions for EU action” • The current EU biofuel production has little impact on current global food prices • The 10% target for the use of biofuels for transport can be achieved by the new generation biofuels • The sustainability criteria (under discussion) shall ensure the production of biofuels in a sustainable way without damaging site effects 30 Climate Action: Biofuels in the renewable energy directive |

  29. Contents • Background (energy in figures) • The Energy & Climate Package January 2008 • The SET Plan (November 2007) • Food Prices (May 2008) • Financial Instruments/support (2007-2013) • Conclusions

  30. Wave/Tidal Bioenergy Wind Geothermal Solar Financing Renewables  • Community Level • National/Regional Level • Private /Other sources

  31. Community Level Funding Instruments • EU funds (2007-2013) • European Regional Development Fund (9 bln €) • Cohesion Fund ( X? bln €) • European Agricultural Fund for Rural Development( X? bln €) • EU Programmes (2007-2013) • 7th Framework Programme (2.3 bln €) • Competitiveness and Innovation Programme (CIP) ( 730 mln €)

  32. FP7 & Competitiveness and Innovation Programme (CIP) • CIP - Intelligent Energy for Europe (SAVE, STEER, ALTENER) and Integrated Initiatives: e.g. bio-businesses, co-generation, energy services. Call for proposals (TREN call opened April 2008): http://ec.europa.eu/energy/intelligent/call_for_proposals/index_en.htm • FP7 (TREN call opened April 2008): http://cordis.europa.eu/fp7/home_en.html FP7: Dissemination of knowledge and innovation-related activities CIP: Innovation support networks and take-up of proven technologies €2.3 billion on energy theme 2007-2013 €730m on IEE 2007-2013

  33. COOPERATION 2007 – 2013 (€32,4 Billion)

  34. Is it DG RTD or DG TREN ? References in the 2008 call DG TREN (call open) Open in call : FP7-ENERGY-2008-TREN-1 Open in call: FP7-ENERGY-2008-1 DG RTD (call closed)

  35. What is demonstration? • Basic research and pilot phases are finished • Industrial led projects with significant potential impact on new binding targets before 2020 • Research only if industrial partners determine the need for research during demonstration (typically less than 20%)

  36. Predominant demonstration: Typical budget repartition for eligible costs

  37. Timing of TREN Call 2008 • Call launched 29 April 2008 • Info Days in Brussels CONCERTO 3 - 4 April 2008General 20 June 2008 • Deadline for submission 8 Oct 2008! • Evaluation Nov 2008 • Info to proposers before end 2008 2009 call to be launched in July 2008

  38. Areas opened in 2008 (DG TREN) • RES-electricity generation 42 M€* • Renewable Fuel Production 35 M€* • CCS/Clean Coal 20 M€* • Smart energy networks 5 M€ • Polygeneration 5 M€* • CONCERTO 40 M€* Ideally 20 projects will be supported for about 147 M€ * Indicative amount; depending on the quality of the proposals

  39. ACTIVITY ENERGY 2: Renewable Electricity GenerationArea Energy 2.2: Biomass  • Topic Energy 2008.2.2.1: Enhancing strategic international cooperation with Russia in the field of power generation from biomass • Topic Energy 2008.2.2.1: High efficiency medium-to-large scale electricity generation from biomass and waste * Indicative amount; depending on the quality of the proposals

  40. ACTIVITY ENERGY 3: Renewable Fuel Production • Topic Energy 2008.3.1.1: Biomethane from high moisture biomass(Area 3.1: first generation) • Topic Energy 2008.3.2.2: Bioethanol from lignocellulosics(Area 3.2: second generation) * Indicative amount; depending on the quality of the proposals

  41. Energy RTD investment in the EU in 2005, if we were investing at the same rate as in ... In 1980 we were investing 4 times more than today

  42. More information • Homepage DG Energy and Transport http://ec.europa.eu/dgs/energy_transport/index_en.html • FP7 Cordis homepage: www.cordis.europa.eu

  43. Financing bioenergy at National Level • Support systems for RES-electricity • Tax credits, Tax exemptions • Investment grants, loans, interest free loans

  44. National LevelSupport for RES-e • Existing support systems for RES-electricity • Feed-in tariffs • Green certificates • Tendering procedure • Tax incentives

  45. National LevelSupport for RES-e Renewable energy promotion policies in Member States from 2006 and onwards Sources: Renewables 2007 (Global Status Report), Commission Staff Working Document Annex to the Impact Assessment

  46. National LevelSupport RES Heating/Cooling • Support measures at National level: • Tax credits • Investment grants, loans, interest free loans • Regulatory measure: • Obligations

  47. National LevelSupport Biofuels • Support and regulatory measures at National Level: • Tax exemptions • Biofuels obligation

  48. Other Instruments • European Investment Bank (EIB) • Financial products at reduced interest rates • Direct loans for larger projects (> 25 Mill € total cost) • Indirect loans for smaller projects • Other Banks

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