Description
In the EU, transport is responsible for an estimated 21% of all greenhouse gas emissions that are contributing to global warming, and the percentage is rising. In order to meet sustainability goals, in particular the reduction of greenhouse gas emissions agreed under the Kyoto Protocol, it is therefore essential to find ways of reducing emissions from transport. This is not the only challenge. Nearly all the energy used in the EU transport sector comes from oil. Known oil reserves are limited in quantity and restricted to a few world regions. New reserves exist, but will mostly be more difficult to exploit. Securing energy supplies for the future is therefore not only a question of reducing import dependency, but calls for a wide range of policy initiatives, including diversification of sources and technologies. In the EU a range of actions is already being taken. Vehicle manufacturers are developing new models that are cleaner and more fuel efficient, as well as working on new concepts. Efforts are also being made to improve public transport and encourage the use of environmentally-friendly modes of transport where possible. Further endeavours are needed to make reductions in the amount of energy used for transport. Developing countries face similar and even greater challenges with respect to transport energy: rising oil prices are badly affecting their balance of payments; reliance on imported fossil fuels implies vulnerability and they too are faced with the challenge of reducing greenhouse gas emissions. The central importance of energy policy in helping the EU meet the challenges of globalisation was confirmed by the Union’s heads of state and government at the informal Hampton Court summit in October 2005 where the Commission was requested to prepare proposals for the development of a reinvigorated European Energy Policy. One important element of such an approach would be means to address Europe’s over-dependency on imported oil and gas and to develop a coherent approach, based on a robust economic, environmental and social impact analysis, on how to progressively reduce this dependency. This communication looks at the role biofuels could play in this context. Processed from biomass, a renewable resource, biofuels are a direct substitute for fossil fuels in transport and can readily be integrated into fuel supply systems. Biofuels can be used as an alternative fuel for transport, as can other alternatives (see 2.1) and thus help prepare the way for further advanced developments, such as hydrogen. Although most biofuels are still more costly than fossil fuels their use is increasing in countries around the world. Encouraged by policy measures, global production of biofuels is now estimated to be over 35 billion litres. The EU is supporting biofuels with the objectives of reducing greenhouse gas emissions, boosting the decarbonisation of transport fuels, diversifying fuel supply sources and developing long-term replacements for fossil oil. The development of biofuel production is expected to offer new opportunities to diversify income and employment in rural areas.