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European Biofuel Policies to Promote Biofuel Usage in the European Economy

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Biofuel Market in Europe to 2020 - Blending Mandates and Tax Incentives Will Accelerate Biofuel Demand in Europe


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European Biofuel Policies to Promote Biofuel Usage in the European Economy

The production of biofuel in Europe has grown significantly over the years. This was due to favorable policies adopted by the European Union (EU). In order to promote the biofuel market in Europe, the EU has formulated various directives for all the European countries. The important legislations for the immense use of biofuel are Renewable Energy Directives, (2009/28/EC, 2003/30/EC), the Energy Taxation Directives (2003/96/EC) and the Directive on the Quality of Petrol and Diesel fuels (2009/30/EC). The Renewable Energy Directive, 2003/30/EC called for a 5.75% market share of biofuel among all transport fuels. This was to be achieved by all member states by 2010. Whereas the market share directives for 2010 still remain in place, the new directive targets for 20% of the share of renewable energies in overall Europe energy consumption by 2020. The budgetary support linked to the volume of biofuel produced or consumed, support for intermediate inputs, support for value-adding factors, support related to distribution and consumption and support for research and development are some of the other key important areas of interest for the EU. The EU has been actively involved in formulating policies which will encourage and promote the use of biofuel in Europe. It also intervenes and controls the market price to maintain a balance by artificially increasing consumer and producer price whenever required. In EU, blending


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rates and border protection tariffs are very important for maintaining the dynamics of the biofuel market. The blending rate demonstrates mandatory requirements for the share of biofuel in transport fuels sold. The border protection tariff intends to protect European production of biofuel through tariffs on biofuel imports.

For further details, please click or add the below link to your browser:

http://gbiresearch.com/Report.aspx?ID=Biofuels-Market-in-Europe-to-2020-Blending-Mandates-and-Tax-Incentives-will-accelerate-biofuel-demand-in-Europe&ReportType=Industry_Report&coreindustry=ALL&Title=Clean_Technology

Higher Land Area Required For Biofuel Production Will Be a Key Restraint for the Europe Biofuel Industry

Increasing oil prices and need for energy independence will spur the development of the biofuel market in Europe. However, the supplies required to meet the increase in demand is likely to remain the same or lessen because of the availability of land. In Europe, substituting all current gasoline consumption with ethanol would require more land for rapeseed production than is presently under agricultural production. The use of technology will be central to boost the role of biofuel. If suitable technological advancement is not available, and then


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the availability of land for feedstock production will be a major challenge for the development of biofuel required to meet the demand in Europe.

Europe Will Produce 700 Mbblpd of Biofuel By 2020

Biofuel production in Europe in 2005 was 79.7 Mbblpd. The production of biofuel rose to 288 Mbblpd in 2009 with a compounded annual growth rate (CAGR) of 32% for the period 2005–2009. GBI Research estimates that the biofuel production by the end of 2020 will be 700.3 Mbblpd. The CAGR for the period 2010–2020 will be 9%. The figure below shows biofuel production in Europe for the period 2005–2020.

Europe Biofuel Production May Face Sustainability Issues

First generation fuels such as ethanol produced from corn, competes for land with food crops. The biofuel industry is dedicated to use biofuel which are grown in a sustainable way and do not compete for land or water with food crops. This is a major challenge for the growth of sustainable biofuel which do not take up productive arable land which can be used for food production. This issue has been a matter of concern for the leaders of the biofuel market. GBI research believes that in addition to developing fuels which reduces sustainability challenges, the biofuel industry will also face challenges in developing fuels which can be mass produced at a low cost with high yield and


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minimal environmental impact. Hence, to overcome this sustainability challenges, extensive research is required in the field of next generation fuels which will potentially reduce the use of arable land and will also deliver higher yields

GBI Research's new report, “Biofuel Market in Europe to 2020 - Blending Mandates and Tax Incentives Will Accelerate Biofuel Demand in Europe" provides key information and analysis on the market opportunities in the European Biofuel Market. The report provides the latest information on the biofuel production and consumption with a detailed assessment of the market forces influencing the European biofuel market. The report also provides analysis of key countries which includes Germany, France and Italy.

This report is built using data and information sourced from proprietary databases, primary and secondary research and in-house analysis by GBI Research's team of industry experts.

For further details, please click or add the below link to your browser:

http://gbiresearch.com/Report.aspx?ID=Biofuels-Market-in-Europe-to-2020-Blending-Mandates-and-Tax-Incentives-will-accelerate-biofuel-demand-in-Europe&ReportType=Industry_Report&coreindustry=ALL&Title=Clean_Technology


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Visit our report store: sustainability challenges, extensive research is required in the field of next generation fuels which will potentially reduce the use of arable land and will also deliver higher yieldshttp://www.gbiresearch.com

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