MEPs back tougher fuel standards for oil industry

Isabelle Muller, secretary general of the European Petroleum Industry Association (Europia)  told EURACTIV that she welcomed “a number of positive changes” made by MEPs, including a “somewhat more realistic timeline”, “less demanding reporting requirements”, “the request to work out a methodology for CO2 accounting” and “the recognition that there is a potential overlap between the Directive and the EU’s Emissions Trading Scheme”, under which oil producers and refineries are already required to make significant CO2 cuts. 

However, she pointed out that the proposal continued to lack coherence, for example, by excluding certain biofuels from the 10% target, and added that there are “still far too many elements in the proposal that would make it extremely difficult to achieve”. She believes that fossil fuels should, at present, be excluded from the emission reduction targets until these unresolved issues have been addressed.

“The concept has merits, but it lacks practicability,” she said, lamenting that there is still no recognition that fuel-makers are under pressure to “emit increasing levels of CO2 in order to produce more diesel and higher-quality fuel products”. Indeed, Europia insists the legislation, as it stands, could create a "perverse incentive" for the incomplete and inefficient conversion of crude oil, by putting highly-upgraded refineries, capable of more complex conversion techniques, at a disadvantage because they are more energy-intensive. 

Inland Navigation Europe (INE), an association that aims to promote freight traffic on the inland waterway network, agreed with MEPs that sulphur levels for barges should be cut to 10 mg/kg as soon as 2010. According to INE, delaying the introduction of stricter sulphur limits would only serve to "significantly delay the replacement of older engines by more energy-efficient ones, because these newer engines cannot run on 300ppm fuel". 

This would also be detrimental to shipowners that have already replaced their engines because no ultra-low sulphur fuel would be made commonly available on the market. 

It adds: "Last but not least, the Commission proposes 300ppm fuel only for inland waterways, while road transport and non-road machinery will use 10ppm fuel. The additional costs of producing and supplying a separate type of fuel only for inland waterway transport will undoubtedly be passed on to the users, while most inland ship engines can run without major complications on 10ppm fuel." 

Dutch Socialist MEP and rapporteur on the directive Dorette Corbey said the vote was a "victory" in the fight against climate change that would "encourage both hydrogen vehicles and electrically-fuelled vehicles" and "create an incentive for scandal-free biofuels".

Luxembourg Green MEP Claude Turmes said the life-cycle approach would "provide a real incentive for the oil industry to reduce the environmental damage it causes […] by improving its production processes, such as through reducing flaring and improving the efficiency of refineries. At the same, it discourages investment in dirty fuels, like non-conventional oil, such as tar sand or coal to liquid." 

He believes that the introduction of strict sustainability criteria for agro-fuels would ensure that fuels used towards the achievement of the reductions target "do not have major negative side affects". He added: "It is important to recognise the environmental and social problems caused by some agro-fuels - such as on food security, deforestation, soil degradation etc. - and ensure that the EU does not rush blindly down this avenue." 

However, over 20 environmental NGOs joined forces to insist that these types of agro-fuels be completely excluded from the 10% reduction target. "CO2 reduction of fuels should be delivered exclusively by the oil industry itself, not by blending agrofuels," they insisted. 

"Allowing agrofuels to make up for the fossil fuel industry's failure to cut emissions creates great uncertainty about the quantity of agrofuel imports necessary to fulfil the target. As it currently stands, the proposed directive could lead to a massive increase in agrofuel use in the EU which raises serious environmental, social and, perversely, climate concerns, particularly in developing countries which may end up having to supply such quantities of fuel," they stressed. 

With this in mind, they also asked that proposals to allow higher volumes of biofuels such as ethanol to be used in petrol should be scrapped.

The NGOs further point out that the oil industry is capable of achieving the 10% CO2 reduction by 2020 "solely through measures such as reducing gas flaring, improving energy efficiency in refineries and investing in co-generation". 

The Commission has proposed revising EU-wide specifications, contained in the 1998 Fuel Quality Directive, relating to the use of petrol, diesel and gas oil in cars, trucks, inland waterway barges, tractor locomotives and machinery (EURACTIV 01/02/07). 

The review aims to reflect the latest developments in fuel and engine technology, including the development of lower carbon fuels such as biofuels, and to tighten standards so as to help combat climate change and meet the EU's ambitious air-quality objectives (see LinksDossier on Clean Air Strategy). 

Among the proposals are amendments that would permit higher volumes of biofuels such as ethanol to be used in petrol and that would oblige fuel suppliers to ensure that greenhouse gases produced by their fuels throughout their life cycle (i.e. production, transport and use) are cut by 1% per year between 2011 and 2020 (Article 7a) (see LinksDossier on the Fuel Quality Directive). 

• 27 Nov. 2007: Report adopted in the EP's Environment Committee. 
• 23 Jan. 2008: Commission expected to present Renewables (Biofuels) Directive. 
• 15 Jan. 2008: Probable adoption of the fuel quality report in Parliament plenary.  

EU official documents

• European Parliament:Revision of fuel quality directive: cleaner and more sustainable fuels(27 November 2007)

Political Groups

• Socialist Group:Socialist MEP wins important climate change victory.(27 November 2007)
• Greens-EFA:Fuel quality and the environment: EP votes to make oil indutry take responsibility for its damaging emissions(27 November 2007) [FR]

Business & Industry

• European Petroleum Industry Association (Europia):EUROPIA cautions against undesirable delay in the legislative process of the Fuel Quality Directive due to a pending resolution of issues related to the GHG emission reduction proposal(13 September 2007)
• Inland Navigation Europe (INE):Clean Fuel improves air quality and reduces greenhouse gases