EU Council of Ministers reached a political agreement on reforming biofuel legislation

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The EU Council of Energy Ministers reached agreement on the ILUC Directive linked to the reform of the EU’s biofuel legislation on 13 June. The next stage will be to align the Council’s position with that of the European Parliament.

Neste Oil views the Council’s position on limiting the use of crop-based biofuels as a good way of minimizing the risk of what are known as ILUC (Indirect Land Use Change) emissions. It is also in line with Neste Oil’s goal of steadily increasing the use of waste and residues in producing renewable diesel. Waste and residues currently account for approximately 62% of the renewable inputs used by Neste Oil; and the two NEXBTL renewable diesel units at the company’s Porvoo refinery run solely on waste- and residue-based feedstock.

Neste Oil’s view is that the list of waste and residues in the Council text is too narrow, however, and that it will not promote the directive’s goal of achieving a significant reduction in CO2 emissions in its current form. Biofuels produced from waste and residues can reduce greenhouse gas emissions by as much as 90% compared to fossil fuels.

The political agreement contains a clause negotiated by the Finnish government, under which a member state can include materials that have been classified as waste or residues before the directive came into force in the member state concerned in a special sub-target.

Overall, Neste Oil’s view is that it would be a good idea to combine the current legislative review of possible ILUC risks with the proposals expected next year on EU's climate and energy policy post-2020.

Further information:

Ilkka Räsänen, Director, Public Affairs, tel. +358 (0)50 458 5123