The EU has halved its 2020 biofuels target to a 10% substitution in vehicle fuels from 20% after falling short of its 2005 target, according to a report on ICIS News
(Disclosure: I work for ICIS. About ICIS)
Today's announcement that the goal is going to be 10% by that date is a more realistic assessment of where the process which started formally with the 2003 directive, and a lack of coercion has got the EU. Which was, frankly, not very far. Countries, did not start seeing biofuels as being an important part of the fuel mixture until the price of oil started rising last year. So now, the commission says it is promoting the use of biofuels as credible alternatives to oil in transport.
The Commission says:
While most biofuels deliver significant savings in greenhouse gas emissions, it is possible to produce them in ways that do not do this, or that cause other environmental problems.
That could make it harder to use coal to power biofuel processes
The Commission proposes the introduction of an incentive/support system to avoid this and to encourage the development of "second-generation" biofuels.
So we're looking at tax breaks and grants, I'd guess
The Commission says
Several policies can stimulate the use and production of biofuels at European level. Tax exemption is a longstanding form of support for biofuels. Several Member States have also announced the introduction of biofuel obligations. These oblige suppliers to put a percentage of biofuels on the market, providing investors with a safety net and boosting the biofuel industry.
A separate ICIS report says there are over 10m tonnes worth of biodiesel projects currently being built throughout Europe with nearly 3m tonnes located in Spain.
Additionally, over 4m tonnes of new bioethanol capacity was thought to be under construction in November.