Transposition of Biofuels Directive 2003/30/EC - Mineral Oil Tax Revision/Fuel Ordinance Amendment

Country	Austria
Year Implemented	2004
Policy Status	In force
Agency	•Federal Ministry of Agriculture, Forestry, Environment and Water Management
Related Policies	Energy Taxes
Policy Type	•Financial   •Taxes and Tax Incentives     •Tax Exemption     •Tax Reduction •Regulatory Instruments   •Quota Systems   •Regulatory Reform   •Standards
Policy Target	•Bioenergy   •Biofuels for Transport
Policy Sector	•Transport
Description	In November 2004, the Austrian Federal government transposed the Biofuel Directive - 2003/30/EC - into Austrian national law with an amendment to the Fuel Ordinance. This amendment required all fuel suppliers, from 1 October 2005, to offer 2.5% of their fuels' total energy quantity as biofuels. From 2007, this percentage will increase to 4.3%, and in 2008 the target of 5.75%, as stipulated in the Directive. The Mineral Oil Tax was revised to accompany amendment of the Fuel Ordinance. Accordingly, tax concessions will be granted with a biofuel share of at least 4.4% (for diesel since 1 October 2005, for gasoline starting on 1 October 2007). However, to profit from the tax concessions, the fuel must also be sulphur-free (less than 10 mg sulphur per kg of fuel). The use of pure biofuels as motor fuel is exempt from tax. As of June 2007, the Austrian government had planned further biofuels promotion. Increasing the use of pure biofuel in the transport market would exceed the above-mentioned aim of 5.75% market share. In addition, biogas could account for a considerable share of motor fuels by 2010, following promotion programs for natural gas driven cars - taxi fleets and public transportation as a first step. In planning its biofuels policy, the Austrian government recognizes the European Council's discussion of an EU-wide 8% target for the proportion of biofuels during its 23 and 24 March 2006 meeting.
URL	www.lebensministerium.at/article/archive/1452/?SectionIDOverride=110
Legal References	European Commission, COM (2005) 626, Biomass Action Plan, Page 30