Country:European Union
Policy status:Superseded
Date Effective:2001
Policy Type:Economic Instruments>Fiscal/financial incentives, Policy Support, Regulatory Instruments
Agency:European Commission, DG Energy and Transport
Climate Change Description:In November 2001 the European Commission adopted an action plan and two proposals for directives to foster the use of alternative fuels for transport, starting with the regulatory and fiscal promotion of biofuels [COM(2001)547]. The action plan outlines a strategy to achieve a 20% substitution of diesel and gasoline fuels by alternative fuels in the road transport sector by 2020. It concludes that only three options would have the potential to achieve individually more than 5% of total transport fuel consumption over the next 20 years: biofuels which are already available, natural gas in the medium term, and hydrogen and fuel cells in the long term. The use of fuels derived from agricultural sources – biofuels – is considered the technology with the largest potential in the short to medium term. One proposed directive would establish a minimum proportion of biofuels in total fuels sold from 2005, starting with 2% and reaching 5.75% in 2010. The second proposed directive would give member States the option of applying a reduced rate of excise duty to pure or blended biofuels, when used either as heating or motor fuel.

Last modified: Fri, 06 Jul 2012 17:14:01 CEST