EU to extend energy crop-aid scheme 

"The energy crop scheme has had a good start," said Agriculture Commissioner Mariann Fischer Boel. "Now it's only fair that we give farmers in all member states the chance to benefit from this support."

Under the proposed scheme, the maximum land area eligible to benefit from the EU premiums would be extended from 1.5 to 2 million hectares to make room for countries such as Poland and the Czech Republic that joined the EU in 2004. The new scheme would begin in 2007, following approval by the Council of Ministers. Member states would be allowed to contribute up to 50% of the costs.

Along with the proposal, the Commission produced a review of the scheme, which was applied for the first time in 2004 after the last reform of the Common Agricultural Policy (CAP).

The Commission says that increased use of biofuels will bring numerous benefits, by reducing Europe's dependence on fossil-fuel imports, reducing greenhouse-gas emissions and providing new outlets for farmers.

However, a growing number of sceptics question the benefits of biofuels, pointing out associated environmental problems such as soil pollution, erosion and the limited benefits in terms of carbon dioxide emissions reduction.