Committee on Agriculture and Rural Development. of the Committee on Agriculture and Rural Development

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1 European Parliament Committee on Agriculture and Rural Development 2016/0382(COD) DRAFT OPINION of the Committee on Agriculture and Rural Development for the Committee on Industry, Research and Energy on the proposal for a directive of the European Parliament and of the Council on the promotion of the use of energy from renewable sources (recast) (COM(2016)0767 C8-0500/ /0382(COD)) Rapporteur: Marijana Petir PA\ docx PE v01-00 United in diversity

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3 SHORT JUSTIFICATION In the Draft Opinion of the Committee on Agriculture and Rural Development of the European Parliament on amending the Directive on the promotion of the use of energy from renewable sources, the Rapporteur mainly focuses on topics of importance for European agriculture and forestry, as well as on topics that have an impact on farmers, agricultural production and rural areas. In the context of the obligations assumed with the ratification of the Paris Agreement and the often-expressed commitment to achieving the objectives of European climate and energy policy, I am of the view that the Member States should set a common target of at least 27% throughout Europe for the share of energy from renewable sources in the gross final consumption of energy in the European Union. Besides the stated objective, the Rapporteur is of the opinion that the Member States should maintain the level of first generation biofuels at 7% of gross final energy consumption in the transport sector at EU level up to In order to prevent the negative effects of indirect land-use change, the share of biofuels with a risk of indirect land-use change, and in particular those whose emissions are greater than 160 gco2eq/mj, should be limited and then reduced. The Rapporteur is of the opinion that during the calculation of the gross final energy consumption from renewable sources from 2021 onwards, taking account of the specific features of each of the Member States, the Member States must be given the option of independently setting their own contribution levels for biofuels and bioliquids, as well as for biomass fuels consumed in transport, if they are produced on agricultural land from crops used for the production of food and animal feed. Member States should be able to distinguish between different types of biofuels, bioliquids and biomass fuels, taking into account indirect land-use change. At the same time, the Union must support the use of highly efficient biofuels resulting in the co-production of valuable raw materials such as protein-rich animal feed. It is also vital that such biofuels be excluded from restrictions, both at European level and at the level of Member States. In the transport sector, the Rapporteur is of the opinion that the sectorial target for the use of renewable energy namely a biofuel content of at least 15% for all fuel suppliers in road and rail transport at European level, and the targets for advanced biofuels in the period up to 2030, should be more ambitious than those proposed by the Commission. In connection with the revision and amendment of the list of sources of raw materials for advanced biofuels, the Rapporteur is of the opinion that the Commission should implement potential amendments in agreement with the European Parliament and the Council, and not through delegated acts, as it stands in the proposal. As regards the forestry sector and its contribution to the EU s common objective, the Rapporteur welcomes the introduction of sustainability criteria for biomass. However, the criteria should not be set at the level of the forestry holding, but should rather be assessed in relation to the biomass supply area. The same principles should apply when importing biomass. As forestry is not an EU competence, it is not legally possible for the EU to require individual forest owners to provide information related to the management of their forests. PA\ docx 3/38 PE v01-00

4 Furthermore, it is not appropriate or logical to require such information from the owners of forests for one particular use of wood (energy), since they are not operated exclusively for energy purposes, but also for the supply of valuable raw materials to many other parts of the economy. The proposal, as it currently stands, would consequently create an unjustified administrative and legal burden for a large number of forest owners. Instead, the EU s approach should be based on the existing legislation and initiatives of Member States. In conclusion, the Rapporteur is of the opinion that the implementation of the Directive and the attainment of the objectives should be supported through robust monitoring by means of a central database that would link up the national databases, with a view to monitoring the traceability of biofuels at European level. Ambitious objectives, as well as the high transparency of the system to monitor the implementation of those objectives, are at the heart of the success of European climate and energy policy. AMDMTS The Committee on Agriculture and Rural Development calls on the Committee on Industry, Research and Energy, as the committee responsible, to take into account the following amendments: 1 Recital 62 (62) The European Strategy for a lowcarbon mobility of July 2016 pointed out that food-based biofuels have a limited role in decarbonising the transport sector and should be gradually phased out and replaced by advanced biofuels. To prepare for the transition towards advanced biofuels and minimise the overall indirect land-use change impacts, it is appropriate to reduce the amount of biofuels and bioliquids produced from food and feed crops that can be counted towards the Union target set out in this Directive. (62) The European Strategy for a lowcarbon mobility of July 2016 pointed out that foodbased biofuels have a limited role in decarbonising the transport sector. In order to foster the uptake of advanced biofuels and ensure investors confidence in the consistency of Union policies, it is appropriate to maintain at 7 % the share of biofuels and bioliquids produced from food and feed crops in the final consumption of energy in road and rail transport that can be counted towards the Union target set out in this Directive. The current renewables target in transport should be extended beyond 2020 and the 7% maximum contribution of biofuels from arable crops to the share of renewables in transport should not be reduced. It is also important to recognise that crop-based biofuels produce valuable co-products, notably for the livestock sector, allowing the EU to decrease its protein PE v /38 PA\ docx

5 deficit by substantially reducing its dependence on imports of protein rich feed. 2 Recital 63 (63) Directive (EU) 2015/1513 of the European Parliament and of the Council 23 called on the Commission to present without delay a comprehensive proposal for a cost-effective and technology-neutral post-2020 policy in order to create a longterm perspective for investment in sustainable biofuels with a low risk of causing indirect land-use change and in other means of decarbonising the transport sector. An incorporation obligation on fuel suppliers can provide certainty for investors and encourage the continuous development of alternative renewable transport fuels including advanced biofuels, renewable liquid and gaseous transport fuels of non-biological origin, and renewable electricity in transport. It is appropriate to set the obligation on fuel suppliers at the same level in each Member State in order to ensure consistency in transport fuel specifications and availability. As transport fuels are traded easily, fuel suppliers in Member States with low endowments of the relevant resources should be able to easily obtain renewable fuels from elsewhere. 23 Directive (EU) 2015/1513 of the European Parliament and of the Council of 9 September 2015 amending Directive 98/70/EC relating to the quality of petrol and diesel fuels and amending Directive 2009/28/EC on the promotion of the use of energy from renewable sources (OJ L 239, , p. 1). (63) Directive (EU) 2015/1513 of the European Parliament and of the Council called on the Commission to present without delay a comprehensive proposal for a cost-effective and technology-neutral post-2020 policy in order to create a longterm perspective for investment in sustainable biofuels with a low risk of causing indirect land-use change and in other means of decarbonising the transport sector. An ambitious 15 % incorporation obligation on fuel suppliers can provide certainty for investors, ensure that decarbonisation in the transport sector is achieved, and encourage the continuous development of alternative renewable transport fuels including advanced biofuels, renewable liquid and gaseous transport fuels of non-biological origin, and renewable electricity in transport. It is appropriate to set the obligation on fuel suppliers at the same level in each Member State in order to ensure consistency in transport fuel specifications and availability. As transport fuels are traded easily, fuel suppliers in Member States with low endowments of the relevant resources should be able to easily obtain renewable fuels from elsewhere. 23 Directive (EU) 2015/1513 of the European Parliament and of the Council of 9 September 2015 amending Directive 98/70/EC relating to the quality of petrol and diesel fuels and amending Directive 2009/28/EC on the promotion of the use of energy from renewable sources (OJ L 239, , p. 1). PA\ docx 5/38 PE v01-00

6 The way to ensure that renewables will keep being used in liquid fuels for transport is to include an ambitious incorporation obligation, which should include crop based biofuels, the main contributor to today s decarbonisation of the transport sector. The continuation of an EU mandate for renewables in transport is necessary to ensure a long term stable policy to secure investor confidence, which is a prerequisite for any new investments in renewable fuel projects to take place. 3 Recital 64 (64) Advanced biofuels and other biofuels and biogas produced from feedstock listed in Annex IX, renewable liquid and gaseous transport fuels of nonbiological origin, and renewable electricity in transport can contribute to low carbon emissions, stimulating the decarbonisation of the Union transport sector in a costeffective manner, and improving inter alia energy diversification in the transport sector while promoting innovation, growth and jobs in the Union economy and reducing reliance on energy imports. The incorporation obligation on fuels suppliers should encourage continuous development of advanced fuels, including biofuels, and it is important to ensure that the incorporation obligation also incentivises improvements in the greenhouse gas performance of the fuels supplied to meet it. The Commission should assess the greenhouse gas performance, technical innovation and sustainability of those fuels. (64) Together with crop-based biofuels, advanced biofuels and other biofuels and biogas produced from feedstock listed in Annex IX, renewable liquid and gaseous transport fuels of non-biological origin, and renewable electricity in transport can contribute to low carbon emissions, stimulating the decarbonisation of the Union transport sector in a cost-effective manner, and improving inter alia energy diversification in the transport sector while promoting innovation, growth and jobs in the Union economy and reducing reliance on energy imports. The inclusion of those energy sources in the overall incorporation obligation of 15 % on fuels suppliers should encourage continuous development of advanced fuels, including biofuels, and it is important to ensure that the incorporation obligation also incentivises improvements in the greenhouse gas performance of the fuels supplied to meet it. The Commission should assess the greenhouse gas performance, technical innovation and sustainability of those fuels. PE v /38 PA\ docx

7 The only way to ensure that renewables will keep being used in liquid fuels for transport is to include an ambitious mandatory incorporation obligation, which should include crop based biofuels, the main contributor to today s decarbonisation of the transport sector. The Member States should require fuel suppliers to include a minimum share of 15% of renewable energy in transport by 2030, granting a homogeneous policy across the EU which is key to prevent a fragmented fuel market. 4 Recital 65 (65) The promotion of low carbon fossil fuels that are produced from fossil waste streams can also contribute towards the policy objectives of energy diversification and transport decarbonisation. It is therefore appropriate to include those fuels in the incorporation obligation on fuel suppliers. deleted Support for waste-based fossil fuels makes fossil fuels more competitive, which goes against the greenhouse gas reduction target and against the promotion of the use of renewable energy sources including agricultural and forest biomass. In principle it does not seem consistent to include fossil-based fuels in this Directive. Even more so, as there are no estimates available on their GHG performance or requirements nor any sustainability. 5 Recital 65 a (new) (65 a) The Commission, together with the Member States, should work towards implementing a single cross-checking traceability database for all biofuels. Such a system is necessary to interlink national schemes and to have a verified and PA\ docx 7/38 PE v01-00

8 transparent traceability system at Union level. In the EU there are voluntary schemes with the most stringent sustainability rules in the world, which prevent feedstocks from being grown on deforested land or areas with a high biodiversity value. Sustainability is a precondition for any form of renewable energy to be able to contribute to the decarbonisation objectives. A dedicated single European crosschecking traceability database is crucial to ensure that national schemes are interlinked to prevent and avoid any potential fraud. 6 Recital 66 (66) Feedstocks which have low indirect land use change impacts when used for biofuels, should be promoted for their contribution to the decarbonisation of the economy. Especially feedstocks for advanced biofuels, for which technology is more innovative and less mature and therefore needs a higher level of support, should be included in an annex to this Directive. In order to ensure that this annex is up to date with the latest technological developments while avoiding unintended negative effects, an evaluation should take place after the adoption of the Directive in order to assess the possibility to extend the annex to new feedstocks. (66) Highly sustainable crop-based feedstocks, as well as feedstocks which have low indirect land use change impacts when used for biofuels, should be promoted for their contribution to the decarbonisation of the economy. Especially feedstocks for advanced biofuels, for which technology is more innovative and less mature and therefore needs a higher level of support, should be included in an annex to this Directive. In order to ensure that this annex is up to date with the latest technological developments while avoiding unintended negative effects, an evaluation should take place after the adoption of the Directive in order to assess the possibility to extend the annex to new feedstocks. Crop based biofuels achieving GHG emissions in compliance with the criteria laid down in Article 26, paragraph 7, and from feedstock produced in accordance with the common agricultural policy s strict cross compliance rules, generating valuable co-products, should no count towards the cap in Article 3 and Article 7. PE v /38 PA\ docx

9 7 Article 2 paragraph 2 point g (g) biofuels means liquid fuel for transport produced from biomass; (g) biofuels means liquid or gaseous fuel for transport produced from biomass; The definition of biofuels should cover both liquid and gaseous biofuels. 8 Article 2 paragraph 2 point dd a (new) (dd a) 'highly sustainable crop-based biofuels' means biofuels that: - are produced from cereals, other starch-rich crops, sugars and oil crops, - save the GHG emissions in compliance with the criteria laid down in Article 26(7) when compared to fossil fuel in accordance with the methodology referred to in Article 28(1), - generate high value protein, other animal feed or cellulosic by-products, and - are produced from feedstocks obtained in accordance with the requirements and standards laid down in Article 93 of Regulation (EU) No 1306/2013 of the European Parliament and of the Council 1a. 1a Regulation (EU) No 1306/2013 of the European Parliament and of the Council of 17 December 2013 on the financing, management and monitoring of the common agricultural policy and repealing PA\ docx 9/38 PE v01-00

10 Council Regulations (EEC) No 352/78, (EC) No 165/94, (EC) No 2799/98, (EC) No 814/2000, (EC) No 1290/2005 and (EC) No 485/2008 (OJ 347, , p. 549). Crop based biofuels achieving GHG emissions in compliance with the criteria laid down in article 26, paragraph 7, and from feedstock produced in accordance with the Common Agricultural Policy s strict cross compliance rules, generating valuable co-products, should no count towards the cap in Article 3 and Article 7. 9 Article 2 paragraph 2 point ff (ff) waste-based fossil fuels means liquid and gaseous fuels produced from waste streams of non-renewable origin, including waste processing gases and exhaust gases; deleted It is not appropriate to include any type of fossil fuel produced without using any renewableenergy in the calculation of the share of renewable energies. If this were done, it would make fossil fuels more competitive and thus run counter to the overarching climate and energy goal of reducing the use of fossil energy sources. A definition of this fuel type is therefore deleted. 10 Article 2 paragraph 2 point mm (mm) 'forest holding' means one or more parcels of forest and other wooded land which constitute a single unit from the deleted PE v /38 PA\ docx

11 point of view of management or utilisation; As forestry is not an EU competence, it is not legally possible for the EU to require individual forest owners to provide information related to the management of their forests. It is also not appropriate to require such information from foresters for only one specific use of wood, knowing that forests are not managed for energy purposes. The proposal would create administrative and legal burdens for a large number of forest owners. 11 Article 2 paragraph 2 point mm a (new) (mm a) 'supply base level' means the geographic region from which biomass feedstock originates; The EU approach should build on existing requirements and initiatives. Carrying out risk assessments at supply base level is already common practice in several Member States, as well as the use of certification schemes, and are proven to work. This allows for risk to be evaluated when it comes to the origin of biomass, based on robust and credible information, indicators and practices, and to take appropriate measures if a risk is identified. 12 Article 2 paragraph 2 point nn (nn) 'biowaste' means biodegradable garden and park waste, food and kitchen waste from households, restaurants, caterers and retail premises, and comparable waste from the food processing industry; (nn) 'biowaste' means bio-waste as defined in point (4) of Article 3 of Directive 2008/98/EC; PA\ docx 11/38 PE v01-00

12 To ensure consistency in EU legislation, it is essential to refer to the respective definitions in other relevant parts of EU legislation. 13 Article 3 paragraph 1 1. Member States shall collectively ensure that the share of energy from renewable sources in the Union's gross final consumption of energy in 2030 is at least 27%. 1. Member States shall collectively ensure that: (a) the share of energy from renewable sources in the Union's gross final consumption of energy in 2030 is at least 27%; (b) the contribution from biofuels and bioliquids, as well as from biomass fuels consumed in transport, if produced from food or feed crops is no more than 7 % of the calculation of the Union's gross final consumption of energy in transport in 2030; and (c) from 1 January 2021, the contribution from biofuels and bioliquids, as well as from biomass fuels consumed in transport, if produced from feedstock with land use emissions greater than 160 gco2eq/mj, is no more than 10 % of the total biofuel mix at Union level and is gradually reduced to 1 % by 31 December Member States should have a possibility to include conventional biofuels of European origin in the EU's RES target that are produced with European feedstocks and which generate coproducts rich in plant protein. Also it is necessary to phase down the use of vegetable oils in PE v /38 PA\ docx

13 biofuels and bioliquids that drive direct and illegal land use changes, deforestation and greenhouse gas emissions. All these important targets should be set at the EU level. 14 Article 3 paragraph 3 3. From 1 January 2021 onwards, the share of energy from renewable sources in each Member State's gross final consumption of energy shall not be lower than that shown in the third column of the table in part A of Annex I. Member States shall take the necessary measures to ensure compliance with this baseline. 3. From 1 January 2021 onwards, the share of energy from renewable sources in each Member State's gross final consumption of energy shall not be lower than that shown in the third column of the table in part A of Annex I. Member States shall take the necessary measures to ensure compliance with this baseline, which shall include: (a) support for the use of biofuels that are generated in the course of the processing of high-value protein concentrate, other feed or cellulosic byproducts which support food security goals and the transition towards a biobased and circular economy in the Union; and (b) phasing out the use of vegetable oils in biofuels and bioliquids that drive direct and illegal land use changes, deforestation and greenhouse gas emissions from peatland. National incentives are still needed to ensure compliance with the baseline, as well to provide a solid base for achieving EU 2030 targets. 15 Article 7 paragraph 1 subparagraph 4 PA\ docx 13/38 PE v01-00

14 For the calculation of a Member State's gross final consumption of energy from renewable energy sources, the contribution from biofuels and bioliquids, as well as from biomass fuels consumed in transport, if produced from food or feed crops, shall be no more than 7% of final consumption of energy in road and rail transport in that Member State. This limit shall be reduced to 3,8% in 2030 following the trajectory set out in part A of Annex X. Member States may set a lower limit and may distinguish between different types of biofuels, bioliquids and biomass fuels produced from food and feed crops, for instance by setting a lower limit for the contribution from food or feed crop based biofuels produced from oil crops, taking into account indirect land use change. From 1 January 2021, for the calculation of a Member State's gross final consumption of energy from renewable energy sources, Member States may set a limit for the contribution from biofuels and bioliquids produced from food or feed crops, as well as from biomass fuels consumed in transport in that Member State, in accordance with Article 3(1). Member States may set a lower limit and may distinguish between different types of biofuels, bioliquids and biomass fuels produced from food and feed crops, for instance by setting a lower limit for the contribution from food or feed crop based biofuels produced from oil crops, taking into account indirect land use change. Member States should be allowed to set a limit for the contribution from biofuels and bioliquids produced from food or feed crops within an EU level framework. Also, they should be allowed to set a lower limit and may distinguish between different types of biofuels, and to take into account the ILUC effect. Phasing out of the first generation of biofuels does not send a good signal to investors in advanced biofuels. Limiting the percentage of biofuels thus fosters the use of fossil fuels. 16 Article 7 paragraph 1 subparagraph 4 a (new) The limit set out in Article 3(1), and any limits set by Member States pursuant to the fourth, subparagraph shall not apply to highly sustainable crop based biofuels. PE v /38 PA\ docx

15 The limit on crop-based biofuels should not apply to crop-based biofuels achieving the GHG emissions savings criteria and produced from feedstock that is produced in accordance with the Common Agricultural Policy s cross compliance criteria, generating valuable coproducts. 17 Article 7 paragraph 5 subparagraph 2 The Commission is empowered to adopt delegated acts in accordance with Article 32 to amend the list of feedstocks in parts A and B of Annex IX in order to add feedstocks, but not to remove them. Each delegated act shall be based on an analysis of the latest scientific and technical progress, taking due account of the principles of the waste hierarchy established in Directive 2008/98/EC, in compliance with the Union sustainability criteria, supporting the conclusion that the feedstock in question does not create an additional demand for land and promoting the use of wastes and residues, while avoiding significant distortive effects on markets for (by-)products, wastes or residues, delivering substantial greenhouse gas emission savings compared to fossil fuels, and not creating risk of negative impacts on the environment and biodiversity. deleted The modification of annex IX should be a competence of the EP and the Council and not the European Commission. Also, changing rules and impeding a level playing field could send a negative message to investors. Lessons should be learned from the experience with the existing legislation in achieving 2020 EU RES targets in the transport sector. PA\ docx 15/38 PE v01-00

16 18 Article 7 paragraph 5 subparagraph 3 Every 2 years, the Commission shall carry out an evaluation of the list of feedstocks in parts A and B of Annex IX in order to add feedstocks, in line with the principles set out in this paragraph. The first evaluation shall be carried out no later than 6 months after [date of entry into force of this Directive]. If appropriate, the Commission shall adopt delegated acts to amend the list of feedstocks in parts A and B of Annex IX in order to add feedstocks, but not to remove them. deleted The modification of annex IX should be a competence of the EP and the Council and not the European Commission. Also, changing rules and impeding a level playing field could send a negative message to investors. Lessons should be learned from the experience with the existing legislation in achieving 2020 EU RES targets in the transport sector. 19 Article 25 paragraph 1 subparagraph 1 With effect from 1 January 2021, Member States shall require fuel suppliers to include a minimum share of energy from advanced biofuels and other biofuels and biogas produced from feedstock listed in Annex IX, from renewable liquid and gaseous transport fuels of non-biological origin, from waste-based fossil fuels and from renewable electricity in the total amount of transport fuels they supply for consumption or use on the market in the course of a calendar year. With effect from 1 January 2021, Member States shall set the fuel incorporation obligation and shall require fuel suppliers to increase gradually the share of renewable energy from biofuels, advanced biofuels and biogas produced from feedstock listed in Annex IX, from renewable liquid and gaseous transport fuels of non-biological origin, and from renewable electricity supplied for transport to at least 15 % in 2030 in the total amount of transport fuels they supply PE v /38 PA\ docx

17 for consumption or use on the market in the course of a calendar year. To meet the EU s overall decarbonisation goal in non-ets sectors including transport and reach at least 27% renewables use by 2030 the EU must not roll back its 2020 ambitions for transport and the mandatory blending obligation must be more ambitious than 6.8% proposed by the EC. Consistent with growth ambitions in other sectors, each Member State should mandate its fuel suppliers to gradually increase its share of renewable energy in transport to a minimum of 15% by Article 25 paragraph 1 subparagraph 2 The minimum share shall be at least equal to 1.5% in 2021, increasing up to at least 6.8% in 2030, following the trajectory set out in part B of Annex X. Within this total share, the contribution of advanced biofuels and biogas produced from feedstock listed in part A of Annex IX shall be at least 0.5% of the transport fuels supplied for consumption or use on the market as of 1 January 2021, increasing up to at least 3.6% by 2030, following the trajectory set out in part C of Annex X. The minimum share of advanced biofuels and biogas produced from feedstock listed in Annex IX, from renewable liquid and gaseous transport fuels of non-biological origin and from renewable electricity shall be at least equal to 3 % in 2021, increasing up to at least 8,3 % in 2030, following the trajectory set out in part B of Annex X. Within this total share, the contribution of advanced biofuels and biogas produced from feedstock listed in part A of Annex IX shall be at least 0.5% of the transport fuels supplied for consumption or use on the market as of 1 January 2021, increasing up to at least 4,6 % by 2030, following the trajectory set out in part C of Annex X. The proposed targets to achieve a minimum share of advanced biofuels and biogas produced from feedstock listed in Annex IX, from renewable liquid and gaseous transport fuels of nonbiological origin and from renewable electricity, should be more ambitious. PA\ docx 17/38 PE v01-00

18 21 Article 25 paragraph 1 subparagraph 4 point a a) for the calculation of the denominator, that is the energy content of road and rail transport fuels supplied for consumption or use on the market, petrol, diesel, natural gas, biofuels, biogas, renewable liquid and gaseous transport fuels of non-biological origin, waste-based fossil fuels and electricity, shall be taken into account; a) for the calculation of the denominator, that is the energy content of transport fuels supplied for consumption or use on the market, petrol, diesel, natural gas, biofuels, biogas, renewable liquid and gaseous transport fuels of non-biological origin, waste-based fossil fuels and electricity, shall be taken into account; The denominator should take into account whole transport sector as a numerator. 22 Article 25 paragraph 1 subparagraph 4 point b paragraph 1 b) for the calculation of the numerator, the energy content of advanced biofuels and other biofuels and biogas produced from feedstock listed in Annex IX, renewable liquid and gaseous transport fuels of nonbiological origin, waste based fossil fuels supplied to all transport sectors, and renewable electricity supplied to road vehicles, shall be taken into account. b) for the calculation of the numerator, the energy content of advanced biofuels and other biofuels and biogas produced from feedstock listed in Annex IX, renewable liquid and gaseous transport fuels of nonbiological origin supplied to all transport sectors, and renewable electricity supplied to road vehicles, shall be taken into account. It is not appropriate to include any type of fossil fuel produced without using any renewable energy in the calculation of the share of renewable energies. If this were done, it would make fossil fuels more competitive and thus run counter to the overarching climate and energy goal of reducing use of fossil energy sources. PE v /38 PA\ docx

19 23 Article 25 paragraph 1 subparagraph 4 point b paragraph 2 For the calculation of the numerator, the contribution from biofuels and biogas produced from feedstock included in part B of Annex IX shall be limited to 1.7% of the energy content of transport fuels supplied for consumption or use on the market and the contribution of fuels supplied in the aviation and maritime sector shall be considered to be 1.2 times their energy content. For the calculation of the numerator, the contribution from biofuels and biogas produced from feedstock included in part B of Annex IX shall be limited to 4 % of the energy content of transport fuels supplied for consumption or use on the market and the contribution of fuels supplied in the aviation and maritime sector shall be considered to be 1,3 times their energy content. The contribution from biofuels and biogas produced from feedstock included in part B of Annex IX should be more ambitious and limited to 4% of the energy content of transport fuels supplied for consumption or use on the market. The contribution from biofuels and biogas in the aviation and maritime sector should be also motivated. 24 Article 25 paragraph 2 a (new) 2a. From 1st January 2021, Member States shall require fuel suppliers to reduce life cycle greenhouse gas emissions per unit of energy from fuel and energy supplied by up to 20 % by 31 December 2030, compared with the fuel baseline standard referred to in Directive (EU)2015/652/EC. PA\ docx 19/38 PE v01-00

20 The ambitious target of reducing GHG intensity of fuels by up to 20 % by 2030 is justified taking into account the high GHG savings from already established crop-based biofuels as well as a stronger market penetration of advanced biofuels and alternative renewable energies in transport. The obligation to reduce GHG emissions from fuels based on fuel providers has proven to be an effective tool for greater climate efficiency. 25 Article 25 paragraph 4 subparagraph 1 Member States shall put in place a database enabling tracing of transport fuels that are eligible for counting towards the numerator set out in paragraph 1(b), and require the relevant economic operators to enter information on the transactions made and the sustainability characteristics of the eligible fuels, including their life cycle greenhouse gas emissions, starting from their point of production to the fuel supplier that places the fuel on the market. From 1 January 2021, Member States shall put in place a database enabling tracing of transport fuels that are eligible for counting towards the numerator set out in paragraph 1(b), and require the relevant economic operators to enter information on the transactions made and the sustainability characteristics of the eligible fuels, including their life cycle greenhouse gas emissions, starting from their point of production to the fuel supplier that places the fuel on the market. National databases enabling tracing of transport fuels should be operational when the Directive enters into force. 26 Article 25 paragraph 4 subparagraph 1 a (new) By 31 December 2021, the Commission shall set up a dedicated single crosschecking traceability database scheme at Union level to ensure that national schemes are interlinked. PE v /38 PA\ docx

21 A dedicated single European cross-checking traceability database would be crucial to ensure that national schemes are interlinked to prevent and avoid any potential fraud. The database should be operational by the end of Article 26 paragraph 4 4. Biofuels, bioliquids and biomass fuels produced from agricultural biomass taken into account for the purposes referred to in points (a), (b) and (c) of paragraph 1 shall not be made from raw material obtained from land that was peatland in January Biofuels, bioliquids and biomass fuels produced from agricultural biomass taken into account for the purposes referred to in points (a), (b) and (c) of paragraph 1 shall not be made from raw material obtained from land that was peatland in January 2008 unless evidence is provided to show that the cultivation and harvesting of that raw material does not involve drainage of previously undrained soil. Given the growth of the population and global food demand, agricultural soils need to be kept in a good production state in order to ensure food supply in all Member States. Also, the proposal assumes that the energy use of all agricultural biomass that is grown in peatlands is unsustainable. There are current and emerging practices to use peatlands that are already in agricultural use, which have climate and other environmental benefits e.g. on biodiversity and water protection. 28 Article 26 paragraph 5 point a point i i) harvesting is carried out in accordance to the conditions of the harvesting permit within legally gazetted i) harvesting is carried out in accordance to the conditions of the harvesting permit or equivalent proof of PA\ docx 21/38 PE v01-00

22 boundaries; the legal right to harvest within the legally gazetted boundaries. There are different practices and procedures in different countries which guarantee the legality of harvesting. 29 Article 26 paragraph 5 point a point iii iii) areas of high conservation value, including wetlands and peatlands, are protected; iii) areas designated, by law or by the relevant competent authority, for nature conservation purposes, including wetlands and peatlands, are protected; The amendment provides clarity for implementation and makes the text consistent with Article 26(2)(b) and recital Article 26 paragraph 5 point a point iv iv) the impacts of forest harvesting on soil quality and biodiversity are minimised; and iv) harvesting is carried out considering maintenance of soil quality and biodiversity; and Minimise is an unclear concept and hard to prove and supervise in practice. Therefore the term should be avoided in a legal text. PE v /38 PA\ docx

23 31 Article 26 paragraph 5 point a point v v) harvesting does not exceed the long-term production capacity of the forest; v) harvesting maintains or improves the long-term production capacity of forests at country or regional level; Production capacity is a static concept whereas productivity includes the idea that capacity is not linear and pre-determined, but with proper management one can harvest more and at the same time, grow more too. Taking also into consideration the multifunctional role of forests and the socio-economic services they provide in certain geographic regions, sustainable harvesting could be best achieved at regional or national level. This provision should concern all forests at country or regional level. 32 Article 26 paragraph 5 point b introductory part (b) when evidence referred to in the first subparagraph is not available, the biofuels, bioliquids and biomass fuels produced from forest biomass shall be taken into account for the purposes referred to in points (a), (b) and (c) of paragraph 1 if management systems are in place at forest holding level to ensure that: (b) the biofuels, bioliquids and biomass fuels produced from forest biomass shall be taken into account for the purposes referred to in points (a), (b) and (c) of paragraph 1 if additional information of legality and forest management practices are provided at the supply base level to ensure that: The EU approach should build on best practices. There is no reason to introduce any exemptions, especially not for imports from countries that do not have national and/or subnational laws applicable in the area of harvest as well as monitoring and enforcement systems in place. Assessments at supply base level allows a proper risk evaluation and taking appropriate measures if a risk is identified. The EU should not lower its sustainability criteria for imported wood. PA\ docx 23/38 PE v01-00

24 33 Article 26 paragraph 5 point b point i i) the forest biomass has been harvested according to a legal permit; i) harvesting is carried out in accordance with the conditions of the harvesting permit procedure or equivalent proof of the legal right to harvest; There are different practices and procedures in different countries which guarantee the legality of harvesting. 34 Article 26 paragraph 5 point b point iii iii) areas of high conservation value, including peatlands and wetlands, are identified and protected; iii) areas designated, by law or by the relevant competent authority, for nature conservation purposes, including wetlands and peatlands, are protected; The amendment provides clarity for implementation and makes the text consistent with 26.2(b) and recital Article 26 paragraph 5 point b point iv iv) impacts of forest harvesting on soil iv) harvesting is carried out PE v /38 PA\ docx

25 quality and biodiversity are minimised; considering maintenance of soil quality and biodiversity; and Minimise is an unclear concept and difficult to prove in practice. It is more practical to require an operator to prove that its forest management practices include consideration of the maintenance of soil quality and biodiversity during harvesting. 36 Article 26 paragraph 5 point b point v v) harvesting does not exceed the long-term production capacity of the forest. v) harvesting maintains or improves long-term productivity capacity of forests at country or regional level. Production capacity is a static concept whereas productivity includes the idea that capacity is not linear and pre-determined, but with proper management one can harvest more and at the same time, grow more too. Taking also into consideration the multifunctional role of the forests and their socio-economic service in a certain geographic region sustainable harvesting could be best achieved at regional or national level. There should be no differences between Member States and third countries. 37 Article 26 paragraph 6 subparagraph 2 When evidence referred to in the first subparagraph is not available, the biofuels, bioliquids and biomass fuels produced from forest biomass shall be taken into account for the purposes referred to in points (a), (b) and (c) of paragraph 1 if management systems are in place at forest holding level to ensure that carbon stocks When evidence referred to in the first subparagraph is not available, the biofuels, bioliquids and biomass fuels produced from forest biomass shall be taken into account for the purposes referred to in points (a), (b) and (c) of paragraph 1 if management systems are in place at supply base level to ensure that carbon stocks and PA\ docx 25/38 PE v01-00

26 and sinks levels in the forest are maintained. sinks levels in the forest are maintained. A supply base level should be maintained throughout the whole Directive. 38 Article 27 paragraph 4 subparagraph 1 The Commission may decide that voluntary national or international schemes setting standards for the production of biomass products contain accurate data for the purposes of Article 26(7), and/or demonstrate that consignments of biofuels, bioliquids or biomass fuels comply with the sustainability criteria set out in Article 26(2), (3), (4), (5) and (6), and/or that no materials have been intentionally modified or discarded so that the consignment or part thereof would fall under Annex IX. When demonstrating that requirements set out in Article 26(5) and (6) for forest biomass are met, the operators may decide to directly provide the required evidence at the forest holding level. The Commission may also recognise areas for the protection of rare, threatened or endangered ecosystems or species recognised by international agreements or included in lists drawn up by intergovernmental organisations or the International Union for the Conservation of Nature for the purposes of Article 26(2)(b)(ii). The Commission may decide that voluntary national or international schemes setting standards for the production of biomass products contain accurate data for the purposes of Article 26(7), and/or demonstrate that consignments of biofuels, bioliquids or biomass fuels comply with the sustainability criteria set out in Article 26(2), (3), (4), (5) and (6), and/or that no materials have been intentionally modified or discarded so that the consignment or part thereof would fall under Annex IX. When demonstrating that requirements set out in Article 26(5) and (6) for forest biomass are met, the operators may decide to directly provide the required evidence at the supply base level. The Commission may also recognise areas for the protection of rare, threatened or endangered ecosystems or species recognised by international agreements or included in lists drawn up by intergovernmental organisations or the International Union for the Conservation of Nature for the purposes of Article 26(2)(b)(ii). A supply base level should be maintained throughout the whole Directive. PE v /38 PA\ docx

27 39 Article 27 paragraph 7 a (new) 7 a. The Commission may, at any time, verify the reliability of the information relating to the fulfilment of the sustainability criteria or the greenhouse gas emission saving submitted by economic operators operating on the Union market or at the request of a Member State. It should be made clear that the Commission should have the power and the ability to take the necessary action on its own or at the request of the Member States to ensure the credibility of the system, respect the law and to prevent any fraud. 40 Article 28 paragraph 5 subparagraph 1 The Commission shall keep Annex V and Annex VI under review, with a view, where justified, to add ing or revising values for biofuel, bioliquid and biomass fuel production pathways. That review shall also consider the modification of the methodology laid down in part C of Annex V and in part B of Annex VI. The Commission shall keep Annex V and Annex VI under review, with a view, where justified, to add, but not to revise, values for biofuel, bioliquid and biomass fuel production pathways. That review shall also consider the modification of the methodology laid down in part C of Annex V and in part B of Annex VI. The Commission should not have the power to revise values for biofuel, bioliquid and biomass fuel production pathways nor to modify the methodology laid down in part C of Annex V and in part B of Annex VI without discussing the proposals with the European Parliament and the Council as co-legislators. PA\ docx 27/38 PE v01-00

28 41 Article 28 paragraph 5 subparagraph 2 In the event that the Commission's review concludes that changes to Annex V or Annex VI should be made, the Commission is empowered to adopt delegated acts pursuant to Article 32. In the event that the Commission's review concludes that changes to Annex V or Annex VI should be made, the Commission shall submit a report to the European Parliament and to the Council. The report shall be accompanied, where appropriate, by legislative proposals amending Annex V or VI. The Commission should not have the power to revise values for biofuel, bioliquid and biomass fuel production pathways nor to modify the methodology laid down in part C of Annex V and in part B of Annex VI without discussing the proposals with the European Parliament and the Council as co-legislators. 42 Article 28 paragraph 6 6. Where necessary in order to ensure the uniform application of Part C of Annex V and Part B of Annex VI, the Commission may adopt implementing acts setting out detailed technical specifications including definitions, conversion factors, calculation of annual cultivation emissions and/ or emission savings caused by changes above and below-ground carbon stocks on already cultivated land, calculation of emission savings from carbon capture, carbon replacement and carbon geological storage. Those implementing acts shall be adopted in accordance with the examination procedure 6. Where necessary in order to ensure the uniform application of Part C of Annex V and Part B of Annex VI, the Commission may adopt implementing acts setting out detailed technical specifications including definitions. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 31(2). PE v /38 PA\ docx

29 referred to in Article 31 (2). The Commission should not have the power to revise values for biofuel, bioliquid and biomass fuel production pathways nor to modify the methodology laid down in part C of Annex V and in part B of Annex VI without discussing the proposals with the European Parliament and the Council as co-legislators. 43 Article 32 paragraph 2 2. The power to adopt delegated acts referred to in Articles 7(5), 7(6); 19(11), 19(14), 25(6) and 28(5) shall be conferred on the Commission for a period of five years from 1 st January The power to adopt delegated acts referred to in Articles 19(11), 19(14), 25(6) and 28(5) shall be conferred on the Commission for a period of five years from 1 st January The delegated acts referred to in Articles 7(5),7(6) should be deleted from this paragraph. 44 Article 32 paragraph 3 subparagraph 1 The delegation of power referred to in Articles 7(5), 7(6); 19(11), 19(14), 25(6) and 28(5) The delegation of power referred to in Articles 19(11), 19(14), 25(6) and 28(5) The delegated acts referred to in Articles 7(5), 7(6) should be deleted from this paragraph. PA\ docx 29/38 PE v01-00

30 45 Annex IX part A point g (g) Palm oil mill effluent and empty palm fruit bunches. deleted The residues generating form the production of vegetable oils with a high ILUC effect should not be counted as a appropriate feedstock for advanced biofuels. 46 Annex IX part A point g a (new) (g a) residues from olive oil extraction provided that industry standards for the feedstock processing have been respected; The addition of advanced fuels feedstock that introduces new agricultural residues should allow European agriculture to play a bigger role in the decarbonisation of transport in Union. 47 Annex IX part A point q a (new) (q a) animal fats classified as categories 1 and 2 in accordance with Regulation (EC) No 1069/2009 of the European Parliament and of the Council 1a ; PE v /38 PA\ docx