02 March 2015

Discussion on reforming the EU's biofuel legislation continues

On 24 February 2015, the Environment Committee of the European Parliament voted on the “ILUC Directive” related to biofuel legislation reform. The view of the Environment Committee is based on the stance adopted last year by the EU Council, stating that the use of agricultural crops in the production of biofuels would be restricted. However, the stance of the Environment Committee differs significantly from that of the council; for example, the committee suggests a separate mandatory target for fuels manufactured from certain non-agricultural raw materials, as well as more stringent sustainability requirements than the EU Council.

The vote by the Environment Committee is one step in the process aimed at reforming biofuel legislation in the EU. The discussion continues: next, the stance of the Environment Committee must be reconciled with that of the Council and the Commission. This is expected to take place by autumn 2015.
The EU's biofuel legislation is complex, and Neste Oil believes that the legislative bodies of the EU should engage in thorough discussion of the matter. This will allow the creation of a legislative framework that establishes the necessary incentives to increase the use of waste and residues as raw material for biofuel, for example. For industry, it is also important that legislation takes a long-term approach and enables the development of European technology in the future as well.

Neste Oil considers the suggestion to restrict the use of agricultural raw materials a good way of preventing the risk of “ILUC emissions.” This stance is in line with Neste Oils' goal to continually increase the use of waste and residues in the production of renewable diesel. At the moment, waste and residues account for some 62% of the company's renewable raw material use, making Neste Oil the biggest company in the world manufacturing biofuels from waste and residues.

Additional information:
Ilkka Räsänen, Director, Public Affairs, tel. +358 10 458 5123