# EUR-Lex - 52012PC0595 - EN

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# 52012PC0595

**Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 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 /* COM/2012/0595 final - 2012/0288 (COD) */**

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EXPLANATORY MEMORANDUM

1.           Background

Directive 2009/28/EC[1] on the promotion of the use of
energy from renewable sources (the "Renewable Energy Directive")
established mandatory targets to be achieved by 2020 for a 20% overall share of
renewable energy in the EU and a 10% share for renewable energy in the
transport sector. At the same time, an amendment to Directive 98/70/EC[2] ("the Fuel Quality Directive") introduced a mandatory
target to achieve by 2020 a 6% reduction in the greenhouse gas intensity of fuels
used in road transport and non-road mobile machinery.

The contribution of biofuels towards these
targets is expected to be significant. Whilst both Directives include
sustainability criteria including minimum greenhouse gas saving thresholds, the
greenhouse gas emissions associated with changes in the carbon stock of land
resulting from indirect changes in land use (ILUC) are not subject to reporting
requirements under the current legislation.

The Directives invite[3] the Commission to review the impact of indirect
land-use change on greenhouse gas emissions and, if appropriate, propose ways
to minimise it whilst respecting existing investments made in biofuels
production. Pursuant to this invitation, the Commission
adopted a Communication on 22 December 2010[4]
summarising the consultations and analytical work conducted on this topic since
2008. In this report, the Commission identified a number of uncertainties and
limitations associated with the available numerical models used to quantify
indirect land-use change, whilst acknowledging that indirect land-use change
can reduce the greenhouse gas emissions savings associated with biofuels and
bioliquids, and as such, recommended that this issue was to be addressed under
a precautionary approach.

2.           Aims of the proposal

Scientific work indicates that emissions from
indirect land-use change can vary substantially between feedstocks and can
negate some or all of the greenhouse gas savings of individual biofuels
relative to the fossil fuels they replace[5].
The aim of the current proposal is to start the transition to biofuels that
deliver substantial greenhouse gas savings when also estimated indirect
land-use change emissions are reported. While existing investments should be
protected, the aims of the current proposal are to:

–
limit the contribution that conventional
biofuels (with a risk of ILUC emissions) make towards attainment of the targets
in the Renewable Energy Directive;

–
improve the greenhouse gas performance of
biofuel production processes (reducing associated emissions) by raising the
greenhouse gas saving threshold for new installations subject to protecting
installations[6]
already in operation on 1st July 2014;

–
encourage a greater market penetration of
advanced (low-ILUC) biofuels by allowing such fuels to contribute more to the
targets in the Renewable Energy Directive than conventional biofuels;

–
improve the reporting of greenhouse gas
emissions by obliging Member States and fuel suppliers to report the estimated
indirect land-use change emissions of biofuels.

The proposal also aims at protecting existing
investments until 2020. The proposal does not take a position on the actual
need for financial support to biofuels before 2020. However, the Commission is
of the view that in the period after 2020 biofuels which do not lead to
substantial greenhouse gas savings (when emissions from indirect land-use
change are included) and are produced from crops used for food and feed should
not be subsidised.

3.           LEGAL ELEMENTS
OF THE PROPOSAL

3.1.        Summary
of the proposed action

The main features of this proposal regarding
the Renewable Energy Directive are:

–
the introduction of a limit to the contribution
made from biofuels and bioliquids produced from food crops, such as those based
on cereals and other starch rich crops, sugars and oil crops, to the Renewable
Energy Directive targets to current consumption levels, without foreseeing any
limits on their overall consumption;

–
an enhanced incentive scheme in Article 3(4) to
further promote sustainable and advanced biofuels from feedstocks that do not
create an additional demand for land;

–
introduction of reporting estimated emissions
from carbon stock changes caused by indirect land-use change, based on the best
available scientific evidence, for the purposes of the calculation of the life
cycle greenhouse gas emission savings from biofuels and bioliquids, as reported
by Member States in Article 22;

–
a review process to ensure that this methodology
is updated and adapted in light of scientific developments;

–
to increase the minimum greenhouse gas saving
threshold for biofuels and bioliquids produced in new installations with effect
from 1st July 2014 in order to improve the overall greenhouse gas balance of
the biofuels and bioliquids consumed in the EU as well as discouraging further
investments in installations with low greenhouse gas performance;

–
simplification of the calculation of greenhouse
gas savings for European biofuel producers, leveling the playing field between
EU producers and producers in third countries;

–
removal of temporary provisions for addresing
indirect land-use change, which were contained in the Directives and are no
longer necessary in light of a comprehensive approach being adopted;

–
adaptation of the Renewable Energy Directive to
the entry into force of the Treaty on the Functioning of the European Union,
notably the conferral of powers to the Commission to adopt acts in accordance
with Article 290 and Article 291 thereof.

The main features of this proposal regarding
the Fuel Quality Directive are:

–
the introduction of reporting estimated
emissions from carbon stock changes caused by indirect land-use change, based
on the best available scientific evidence, for the purposes of reporting the
life cycle greenhouse gas emission savings from biofuels, as described in
Article 7a;

–
review process to ensure that this methodology
is updated and adapted in light of scientific developments;

–
increase of the minimum greenhouse gas saving
threshold for biofuels produced in new installations with effect from 1st July
2014 in order to improve the overall greenhouse gas balance of the biofuels
consumed in the EU as well as discouraging further investments in installations
with low greenhouse gas performance;

–
simplification of the calculation of greenhouse
gas savings for European biofuel producers, levelling the playing field between
EU producers and producers in third countries;

–
removal of temporary provisions for addressing
indirect land-use change, which were contained in the Directives and are no
longer necessary in light of a comprehensive approach being adopted;

–
adaptation of the Fuel Quality Directive to the
entry into force of the Treaty on the Functioning of the European Union,
notably the conferral of powers to the Commission to adopt acts in accordance
with Article 290 and Article 291 thereof.

The proposal also includes minor corrections
and clarifications in both Directives with regard to non-biofuel issues.

The measures included in this proposal limit
the contribution that conventional biofuels can make towards the attainment of
the targets in the Renewable Energy Directive. The Commission will consider any
impacts on the feasibility of reaching these targets arising from this proposal
in its future reports under Article 23 of the Renewable Energy Directive.

3.2.        Legal
basis

The primary objective of the Directives is the
protection of the environment and the functioning of the internal market. This
proposal is therefore based on Articles 192(1) and 114 of the Treaty on the
Functioning of the European Union.

3.3.        Subsidiarity
principle

Articles 19(6) and 7d(6) of the respective
Directives invite the Commission to address the issue of indirect land-use
change. The overall objective of the Fuel Quality and Renewable Energy
Directives is to contribute to the goal of reducing economy-wide greenhouse gas
emissions. As a way to achieve that, they create an EU-wide market for
sustainable biofuels. The Member States are not able to meet these challenges
individually as indirect land-use change impacts necessarily have transnational
aspects which cannot be dealt with satisfactorily by the Member States alone.

3.4.        Proportionality
principle

The proposal complies with the proportionality
principle for the following reasons:

·
It does not go beyond what is necessary to
achieve the objective of the reduction of lifecycle greenhouse gas emissions
from biofuels consumed in the EU, by taking into consideration their indirect
impact on land-use change.

·
The proposal takes the form of a Directive which
sets out the minimum fuel specification for reasons of environmental
protection. Other technical aspects of fuel specifications are not addressed in
the Directive but are left to be governed by European standards in line with
better regulation principles.

·
The proposal does not increase the financial or
administrative burden on the Union, national, regional or local governments.
The requirements in relation to these bodies are not changed from that in the
existing Directive.

·
In developing the proposals, all major
implications have been analysed in the Impact Assessment.

4.           BUDGETARY IMPLICATION

The proposal has no budgetary implication for
the Union budget.

5.           OTHER COMMENTS

This Commission proposal is accompanied by an
Impact Assessment.

2012/0288 (COD)

Proposal for a

DIRECTIVE OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

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

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 192(1) thereof, in
conjunction with Article 114 thereof in relation to Article 1(2) to 1(9) and
Article 2(5) to 2(7) of this Directive,

Having regard to the proposal from the
European Commission,

After transmission of the draft legislative
act to the national Parliaments,

Having regard to the opinion of the
European Economic and Social Committee[7],

Having regard to the opinion of the
Committee of the Regions[8],

Acting in accordance with the ordinary
legislative procedure,

Whereas:

(1)       Article
3(4) of Directive 2009/28/EC on the promotion of the use of energy from
renewable energy sources and amending and subsequently repealing Directives
2001/777/EC and 2003/30/EC[9]
requires Member States to ensure that the share of energy from renewable energy
sources in all forms of transport in 2020 is at least 10% of their final energy
consumption. The blending of biofuels is one of the methods available for
Member States to meet this target, and is expected to be the main contributor.

(2)       In
view of the Union’s objectives to further reduce greenhouse gas emissions and
the significant contribution that road transport fuels make to those emissions,
Article 7a(2) of Directive 98/70/EC relating to the quality of petrol and
diesel fuels and amending Council Directive 93/12/EC[10]
requires fuel suppliers to reduce by at least 6% by 31 December 2020 the life
cycle greenhouse gas emissions per unit of energy ("greenhouse gas
intensity") of fuels used in the Union by road vehicles, non-road mobile
machinery, agricultural and forestry tractors and recreational craft when not
at sea. The blending of biofuels is one of the methods available for fossil fuel
suppliers to reduce the greenhouse gas intensity of the fossil fuels supplied.

(3)       Article
17 of Directive 2009/28/EC establishes sustainability criteria that biofuels
and bioliquids need to comply with in order to be counted towards the targets
in the Directive and to qualify for inclusion in public support schemes. These
criteria include requirements on the minimum greenhouse gas emission savings
that biofuels and bioliquids need to achieve compared to fossil fuels.
Identical sustainability criteria are established for biofuels under Article 7b
of Directive 98/70/EC.

(4)       Where
pasture or agricultural land previously destined for the food, feed and fibre
markets is diverted to biofuel production, the non-fuel demand will still need
to be satisfied either through intensification of current production or by
bringing non-agricultural land into production elsewhere. The latter case
represents indirect land-use change and when it involves the conversion of high
carbon stock land it can lead to significant greenhouse gas emissions.
Directives 98/70/EC and 2009/28/EC should therefore include provisions to
address indirect land use change given that current biofuels are mainly
produced from crops grown on existing agricultural land.

(5)       Based
on forecasts of biofuel demand provided by the Member States and estimates of
indirect land-use change emissions for different biofuel feedstocks it is
likely that greenhouse gas emissions linked to indirect land use change are
significant, and could negate some or all of the greenhouse gas savings of
individual biofuels. This is because almost the entire biofuel production in
2020 is expected to come from crops grown on land that could be used to satisfy
food and feed markets. In order to reduce such emissions, it is appropriate to
distinguish between crop groups such as oil crops, cereals, sugars and other
starch containing crops accordingly.

(6)       Liquid
renewable fuels are likely to be required by the transport sector in order to
reduce its greenhouse gas emissions. Advanced biofuels, such as those made from
wastes and algae, provide high greenhouse gas savings with low risk of causing
indirect land use change and do not compete directly for agricultural land for
the food and feed markets. It is appropriate, therefore, to encourage greater
production of such advanced biofuels as these are currently not commercially
available in large quantities, in part due to competition for public subsidies
with established food crop based biofuel technologies. Further incentives
should be provided by increasing the weighting of advanced biofuels towards 10%
target for transport set in Directive 2009/28/EC compared to conventional
biofuels. In this context, only advanced biofuels with low estimated indirect
land use change impacts and high overall greenhouse gas savings should be
supported as part of the post 2020 renewable energy policy framework.

(7)       In
order to ensure the long-term competitiveness of bio-based industrial sectors,
and in line with the 2012 Communication "Innovating for Sustainable
growth: A Bioeconomy for Europe"[11] and
the Roadmap to a Resource Efficient Europe[12],
promoting integrated and diversified biorefineries across Europe, enhanced
incentives under Directive 2009/28/EC should be set in a way that gives
preference to the use of biomass feedstocks that do not have a high economic
value for other uses than biofuels.

(8)       The
minimum greenhouse gas saving threshold for biofuels and bioliquids produced in
new installations should be increased with effect from 1st July 2014
in order to improve their overall greenhouse gas balance as well as
discouraging further investments in installations with low greenhouse gas
savings performance. This increase provides for
investment safeguards in biofuels and bioliquids production capacities in
conformity with Article 19(6) second subparagraph.

(9)       To prepare for the
transition towards advanced biofuels and minimise the overall indirect land use
change impacts in the period to 2020, it is appropriate to limit the amount of
biofuels and bioliquids obtained from food crops as set out in part A of Annex
VIII to Directive 2009/28/EC and part A of Annex V to Directive 98/70/EC that
can be counted towards targets set out in Directive 2009/28/EC. Without
restricting the overall use of such biofuels, the share of biofuels and
bioliquids produced from cereal and other starch rich crops, sugar and oil
crops that can be counted towards the targets of Directive 2009/28/EC should be
limited to the share of such biofuels and bioliquids consumed in 2011.

(10)     The
5% limit set up in Article 3(4)d does not affect the Member States' freedom to
arrange their own trajectory as to compliance with this prescribed share of
conventional biofuels within the overall 10% target. As
a consequence, the access to the market of the biofuels produced by the
installations in operation before the end of 2013 remains fully open. Therefore
this amending directive does not affect the legitimate expectations of the
operators of such installations.

(11)     The estimated indirect land-use
change emissions should be included in the reporting of greenhouse gas
emissions from biofuels under Directives 98/70/EC and 2009/28/EC. Biofuels made
from feedstocks that do not lead to additional demand for land, such as those
from waste feedstocks, should be assigned a zero emissions factor. .

(12)     The
Commission should review the methodology for estimating land-use change
emission factors included in Annexes VIII and V to Directives 2009/28/EC and
98/70/EC respectively in the light of adaptation to technical and scientific
progress. To this end, and if warranted by the latest available scientific
evidence, the Commission should consider the possibility of revising the
proposed crop group indirect land-use change factors, as well as introducing factors
at further levels of disaggregation and including additional values should new
biofuel feedstocks come to market.

(13)     Article
19(8) of Directive 2009/28/EC and Article 7d(8) of Directive 98/70/EC include
provisions for encouraging the cultivation of biofuels in severely degraded and
heavily contaminated land as an interim measure for mitigating against indirect
land-use change. These provisions are no longer adequate in their current form
and need to be integrated in the approach laid out in this Directive to ensure
that overall actions for minimising emission from indirect land-use change
remain coherent.

(14)     It
is appropriate to align the rules for using default values to ensure equal
treatment for producers regardless of where the production takes place. While
third countries are allowed to use default values, EU producers are required to
use actual values where they are higher than the default values, or a report
has not been submitted by the Member State, increasing their administrative
burden. Therefore, current rules should be simplified so that the use of
default values is not limited to areas within the Union included in the lists
referred to in Article 19(2) of Directive 2009/28/EC and Article 7d(2) of
Directive 98/70/EC.

(15)     The
objectives of this Directive, to ensure a single market for fuel for road
transport and non-road mobile machinery and ensure respect for minimum levels
of environmental protection from use of this fuel, cannot be sufficiently
achieved by the Member States and can therefore be better achieved at Union
level, the Union may adopt measures, in accordance with the principle of
subsidiarity as set out in Article 5 of the Treaty on the Functioning of the
European Union. In accordance with the principle of proportionality, as set out
in that Article, this Directive does not go beyond what is necessary in order
to achieve those objectives.

(16)     As
a consequence of the entry into force of the Treaty on the Functioning of the
European Union, the powers conferred under Directives 2009/28/EC and 98/70/EC
upon the Commission need to be aligned to Article 290.

(17)     In
order to ensure uniform conditions for the implementation of this Directive,
implementing powers should be conferred on the Commission. Those powers should
be exercised in accordance with Regulation (EU) 182/2011 of the European
Parliament and of the Council of 16 February 2011 laying down the rules and
general principles concerning mechanisms for control by the Member States of
the Commission's exercise of implementing powers.

(18)     In
order to permit adaptation to technical and scientific progress of Directive
98/70/EC, the power to adopt acts in accordance with Article 290 of the Treaty
on the Functioning of the European Union should be delegated to the Commission
in respect of the mechanism to monitor and reduce greenhouse gas emissions, the
methodological principles and values necessary for assessing whether
sustainability criteria have been fulfilled in relation to biofuels, criteria
and geographic ranges for determining highly diverse grassland, the methodology
for the calculation and reporting of lifecycle greenhouse gas emissions, the
methodology for the calculation of indirect land-use change emissions, the
permitted level related to the metallic additives content in fuels, the
permitted analytical methods related to the fuel specifications and the vapour
pressure waiver permitted for petrol containing bioethanol.

(19)     In
order to permit adaptation to technical and scientific progress of Directive
2009/28/EC, the power to adopt acts in accordance with Article 290 of the
Treaty on the Functioning of the European Union should be delegated to the
Commission in respect of the list of biofuel feedstocks that are counted
multiple times towards the target set in Article 3(4), the energy content of
transport fuels, criteria and geographic ranges for determining highly
biodiverse grassland, the methodology for the calculation of indirect land-use
change emissions, and the methodological principles and values necessary for
assessing whether sustainability criteria have been fulfilled in relation to
biofuels and bioliquids.

(20)     The
Commission should review the effectiveness of the measures introduced by this
Directive, based on the best and latest available scientific evidence, in
limiting indirect land-use change greenhouse gas emissions and addressing ways
to further minimise that impact, which could include the introduction of
estimated indirect land-use change emission factors in the sustainability
scheme as of 1st January 2021.

(21)     It
is of particular importance that the Commission in application of this
Directive carry out appropriate consultations during its preparatory work,
including at expert level. The Commission, when preparing and drawing up
delegated acts, should ensure a simultaneous, timely and appropriate
transmission of relevant documents to the European Parliament and to the
Council.

(22)     In accordance with the
Joint Political Declaration of Member States and the Commission on explanatory
documents of 28 September 2011, Member States have undertaken to accompany, in
justified cases, the notification of their transposition measures with one or
more documents explaining the relationship between the components of a
directive and the corresponding parts of national transposition instruments.
With regard to this Directive, the legislator considers the transmission of
such documents to be justified.

(23)     Directives
98/70/EC and 2009/28/EC should therefore be amended accordingly,

HAVE ADOPTED THIS DIRECTIVE:

Article 1
Amendments to Directive 98/70/EC

Directive 98/70/EC is amended as follows:

1.           Article 7a is amended as
follows:

(a) the following paragraph 6 is inserted:

'6. Fuel suppliers shall by 31 March each year
report to the authority designated by the Member State, the biofuel production
pathways, volumes, and the life cycle greenhouse gas emissions per unit of
energy, including the estimated indirect land-use change emissions set out in
Annex V Member States shall report these data to the Commission.

(b) in paragraph 5, the introductory phrase of
the first subparagraph is replaced by the following:

'5. The Commission shall be empowered to adopt
delegated acts in accordance with Article 10a concerning in particular:'

2.           Article 7b is amended as
follows:

(a) paragraph 2 is replaced by the following:

'2. The greenhouse gas emission saving from the
use of biofuels taken into account for the purposes referred to in paragraph 1
shall be at least 60 % for biofuels produced in installations starting
operation after 1st July 2014. An installation is “in operation” if the
physical production of biofuels has taken place.

In the case of installations that were in
operation on or before 1st July 2014 , for the purposes referred to in
paragraph 1, biofuels shall achieve a greenhouse gas emission saving of at
least 35% until 31 December 2017 and at least 50% from 1 January 2018.

The greenhouse gas emission saving from the use
of biofuels shall be calculated in accordance with Article 7d(1).'

(b) in paragraph 3, the second subparagraph is
replaced by the following:

'The Commission shall be empowered to adopt
delegated acts in accordance with Article 10a concerning the criteria and
geographic ranges to determine which grassland shall be covered by point (c) of
the first subparagraph.'

3.           Article 7d is amended as
follows:

(a) paragraphs 3 to 6 are replaced by the
following:

'3. The typical greenhouse gas emissions from
cultivation of agricultural raw materials in the reports referred to in Article
7d(2) in the case of Member States, and in reports equivalent to those in the
case of territories outside the Union, may be submitted to the Commission.'

'4. The Commission may decide, by means of an
implementing act adopted in accordance with advisory procedure referred to in
Article 11(3), that the reports referred to in paragraph 3 contain accurate
data for the purposes of measuring the greenhouse gas emissions associated with
the cultivation of biofuel feedstocks typically produced in those areas for the
purposes of Article 7b(2). '

'5. By 31 December 2012 at the latest and every
two years thereafter, the Commission shall draw up a report on the estimated
typical and default values in Parts B and E of Annex IV, paying special
attention to greenhouse gas emissions from transport and processing.

The Commission shall be empowered to adopt
delegated acts pursuant to Article 10a concerning the correction of the
estimated typical and default values in Parts B and E of Annex IV.'

'6. The Commission shall be empowered to adopt
delegated acts pursuant to Article 10a concerning the adaptation to technical
and scientific progress of Annex V, including by the revision of the proposed
crop group indirect land-use change values; the introduction of new values at
further levels of disaggregation; the inclusion of additional values should new
biofuel feedstocks come to market as appropriate, review the categories of
which biofuels are assigned zero indirect land-use change emissions; and the
development of factors for feedstocks from non-food cellulosic and ligno-cellulosic
materials.'

(b) in paragraph 7, the first subparagraph is
replaced by the following:

'7. The Commission shall be empowered to adopt
delegated acts pursuant to Article 10a concerning the adaptation to technical
and scientific progress of Annex IV, including by the addition of values for
further biofuel production pathways for the same or for other raw materials and
by modifiying the methodology laid down in Part C.'

(c) paragraph 8 is deleted.

4.           Article 8 is amended as
follows:

(a) paragraph 1 is replaced by the following:

'1. Member States shall
monitor compliance with the requirements of Articles 3 and 4, in respect of
petrol and diesel fuels, on the basis of the analytical methods referred to in
the version in force of the European standards EN 228 and EN 590 respectively.'

(b) paragraph 3 is replaced by the following:

'3. Each year by 30 June,
the Member States shall submit a report of national fuel quality data for the
preceding calendar year. The Commission shall establish a
common format for the submission of a summary of national fuel quality by means
of an implementing act adopted in accordance with the advisory procedure
referred to in Article 11(3). The
first report shall be submitted by 30 June 2002. From 1 January 2004, the
format for this report shall be consistent with that described in the relevant
European standard. In addition, Member States shall report the total volumes of
petrol and diesel fuels marketed in their territories and the volumes of
unleaded petrol and diesel fuels marketed with a maximum sulphur content of 10
mg/kg. Furthermore, Member States shall report annually on the availability on
an appropriately balanced geographical basis of petrol and diesel fuels with a
maximum sulphur content of 10 mg/kg that are marketed within their territory.'

5.           Article 8a(3) is amended
as follows:

'3. The Commission shall be
empowered to adopt delegated acts pursuant to Article 10a concerning the
revision of the limit for the MMT content of fuel specified in paragraph 2.
This revision shall be done on the basis of the results of the assessment
carried out using the test methodology referred to in paragraph 1. It may be
reduced to zero where justified by the risk assessment. It cannot be increased
unless justified by the risk assessment.'

6.           In Article 10, paragraph 1
is replaced by the following:

'1. The Commission shall be
empowered to adopt delegated acts pursuant to Article 10a concerning the
adaptation to technical and scientific progress of the permitted analytical
methods referred to in Annexes I, II and III. '

7.           The following Article 10a
is inserted:

'Article 10a
Exercise of the delegation

1. The power to adopt delegated acts is
conferred on the Commission subject to the conditions laid down in this
Article.

2. The delegation of power referred to in
Article 7a(5), the second subparagraph of Article 7b(3), Articles 7d(5), 7d(6),
7d(7), 8a(3) and 10(1) shall be conferred for an indeterminate period of
time from the date of entry into force of this Directive.

3. The delegation of powers referred to in
Articles 7a(5), the second subparagraph of Article 7b(3), Articles 7d(5),
7d(6), 7d(7), 8a(3) and 10(1) may be revoked at any time by the European
Parliament or by the Council. A decision of revocation shall put an end to the
delegation of the power specified in that decision. It shall take effect the
day following the publication of the decision in the Official Journal of
the European Union or at a later date specified therein. It shall not
affect the validity of any delegated acts already in force.

4. As soon as it adopts a delegated act, the
Commission shall notify it simultaneously to the European Parliament and to the
Council.

5. A delegated act adopted pursuant to Articles
7a(5), the second subparagraph of Article 7b(3), Articles 7d(5), 7d(6), 7d(7),
8a(3) and 10(1) shall enter into force only if no objection has been expressed
either by the European Parliament or the Council within a period of 2 months of
notification of that act to the European Parliament and the Council or if, before the expiry of
that period, the
European Parliament and the Council have both informed the Commission that they
will not object. That period shall be extended
by 2 months at the initiative of the European Parliament or the Council.'

8.           Article 11(4) is deleted.

9.           Annexes are amended as set
out in Annex I to this Directive.

Article 2
Amendments to Directive 2009/28/EC

Directive
2009/28/EC is amended as follows:

1.           A new paragraph is
inserted in Article 2:

'p) ‘waste’ shall be defined as in Article 3(1)
of Directive 2008/98/EC of the European Parliament and of the Council of 19
November 2008 on waste and repealing certain Directives[13]. Substances that have been
intentionally modified or contaminated to meet that definition are not covered
by this category.

2.           Article 3 is amended as
follows:

(a) the title is replaced by the following:

'Mandatory national targets and measures for
the use of energy from renewable sources'.

(b) in paragraph 1, the following second
subparagraph is added:

'For the purpose of compliance with target
referred to in the first subparagraph, the maximum joint contribution from
biofuels and bioliquids produced from cereal and other starch rich crops,
sugars and oil crops shall be no more than the energy quantity corresponding to
the maximum contribution as set out in Article 3(4)d.'

(c) paragraph 4 is amended as follows:

(i) in point (b), the following phrase is
added:

"This indent shall be without prejudice to
Articles 17(1)a and 3(4)d;"

(ii) the following point (d) is added:

(d) for the calculation of biofuels in the
numerator, the share of energy from biofuels produced from cereal and other
starch rich crops, sugars and oil crops shall be no more than 5%, the estimated
share at the end of 2011, of the final consumption of energy in transport in
2020.

(iii) the following point (e) is added:

The contribution made by:

(i) biofuels produced from feedstocks listed in
Part A of Annex IX shall be considered to be four times their energy content;

(ii) biofuels produced from feedstocks listed
in Part B of Annex IX shall be considered to be twice their energy content;

(iii) renewable liquid and gaseous fuels of
non-biological origin shall be considered to be four times their energy
content.

Member States shall ensure that no raw materials
are intentionally modified to be covered by categories (i) to (iii).

The list of feedstock set out in Annex IX may
be adapted to scientific and technical progress, in order to ensure a correct
implementation of the accounting rules set out in this Directive. The
Commission shall be empowered to adopt delegated acts in accordance with
Article 25 (b) concerning the list of feedstock set out in Annex IX'

3.           In Article 5(5), the last
sentence is replaced by the following:

"The Commission shall be empowered to
adopt delegated acts in accordance with Article 25 (b) concerning the
adaptation of the energy content of transport fuels as set out in Annex III to
scientific and technical progress."

4.           In Article 6 (1) the last
sentence is deleted.

5.           Article 17 is amended as
follows:

(a) paragraph 2 is replaced by the following:

'2. The greenhouse gas emission saving from the
use of biofuels and bioliquids taken into account for the purposes referred to
in paragraph 1 shall be at least 60 % for biofuels and bioliquids produced in
installations starting operation after 1st July 2014. An installation is “in
operation” if the physical production of biofuels or bioliquids has taken
place.

In the case of installations that were in
operation on or before 1st of July 2014, for the purposes referred
to in paragraph 1, biofuels and bioliquids shall achieve a greenhouse gas
emission saving of at least 35% until 31 December 2017 and at least 50% from 1
January 2018.

The greenhouse gas emission saving from the use
of biofuels and bioliquids shall be calculated in accordance with Article
19(1).'

(b) in paragraph 3, the second subparagraph is
replaced by the following:

'The Commission shall be empowered to adopt
delegated acts in accordance with Article 25 (b) to establish the criteria and
geographic ranges to determine which grassland shall be covered by point (c) of
the first subparagraph.'

6.           In Article 18 (4), the
second subparagraph is replaced by the following:

'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 17(2) or
demonstrate that consignments of biofuel or bioliquid comply with the
sustainability criteria set out in Article 17(3) to (5). The Commission may
decide that those schemes contain accurate data for the purposes of information
on measures taken for the conservation of areas that provide, in critical
situations, basic ecosystem services (such as watershed protection and erosion
control), for soil, water and air protection, the restoration of degraded land,
the avoidance of excessive water consumption in areas where water is scarce and
on the issues referred to in the second subparagraph of Article 17(7). 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
17 (3 )(b) (ii).'

7.           Article 19 is amended as
follows:

(a) paragraphs 3 and 4 are replaced by the
following:

'3. The typical greenhouse gas emissions from
cultivation of agricultural raw materials in the reports referred to in Article
19(2) in the case of Member States, and in reports equivalent to those in the
case of territories outside the Union, may be submitted to the Commission.'

'4. The Commission may decide, by means of an
implementing act adopted in accordance with advisory procedure referred to in
Article 25(3), that the reports referred to in paragraph 3 contain accurate
data for the purposes of measuring the greenhouse gas emissions associated with
the cultivation of biofuel and bioliquid feedstocks typically produced in those
areas for the purposes of Article 17(2). '

(b) in paragraph 5, the last sentence is
replaced by the following:

'To this end, the Commission shall be empowered
to adopt delegated acts in accordance with Article 25 (b).'

(c) paragraph 6 is replaced by the following:

'The Commission shall be empowered to adopt
delegated acts pursuant to Article 25(b) concerning the adaptation to technical
and scientific progress of Annex VIII, including the revision of the proposed
crop group indirect land-use change values; the introduction of new values at
further levels of disaggregation (i.e. at a feedstock level); the inclusion of
additional values should new biofuel feedstocks come to market as appropriate;
and the development of factors for feedstocks from non-food cellulosic and
ligno-cellulosic materials.'

(d) in paragraph 7, the first subparagraph is
replaced by the following:

'7. The Commission shall be empowered to adopt
delegated acts pursuant to Article 25 (b) concerning the adaptation of Annex V
to technical and scientific progress, including by the addition of values for
further biofuel production pathways for the same or for other raw materials and
by modifying the methodology laid down in part C'.

(e) paragraph 8 is deleted.

8.           Article 21 is deleted.

9.           In Article 22, paragraph 2
is replaced by the following:

'2. In estimating net greenhouse gas emission
saving from the use of biofuels, the Member State may, for the purpose of the
reports referred to in paragraph 1, use the typical values given in part A and
part B of Annex V, and shall add the estimates for indirect land-use change
emissions set out in Annex VIII.'

10.         Article 25(4) is deleted.

11.         The following Article 25b
is inserted:

'Article 25 b
Exercise of the delegation

1. The powers to adopt delegated acts are
conferred on the Commission subject to the conditions laid down in this
Article.

2. The delegation of power referred to in
Article 3(4)(d), Article 5(5), the third subparagraph of Article 17(3)(c),
Articles 19(5), 19(6) and 19(7) shall be conferred on the Commission for an
indeterminate period of time from [the date of entry
into force of this Directive].

3. The delegation of power referred to in
Article 3(4)(d), Article 5(5), the third subparagraph of Article 17(3)(c),
Articles 19 (5), 19 (6) and 19 (7) may be revoked at any time by the European
Parliament or by the Council. A decision of revocation shall put an end to the
delegation of the power specified in that decision. It shall take effect the
day following the publication of the decision in the Official Journal of the
European Union or at a later date specified therein. It shall not
affect the validity of any delegated acts already in force.

4. As soon as it adopts a delegated act, the
Commission shall notify it simultaneously to the European Parliament and to the
Council.

5. A delegated act adopted pursuant to Article
3(4)(d), Article 5(5), the third subparagraph of Article 17(3)(c), Articles 19
(5), 19 (6) and 19 (7) shall enter into force only if no objection has been
expressed either by the European Parliament or the Council within a period of 2
months of notification of that act to the European Parliament and the Council
or if, before the expiry of that period, the European Parliament and the
Council have both informed the Commission that they will not object. That
period shall be extended by 2 months at the initiative of the European
Parliament or the Council.'

12.         Annexes are amended as set
out in Annex II to this Directive.

Article 3
Review

The Commission shall, before 31 December
2017, submit a report to the European Parliament and to the Council reviewing,
on the basis of the best latest available scientific evidence, the
effectiveness of the measures introduced by this Directive in limiting indirect
land-use change greenhouse gas emissions associated with the production of
biofuel and bioliquids. The report shall, if appropriate, be accompanied by a
legislative proposal based on the best available scientific evidence, for
introducing estimated indirect land use change emissions factors into the
appropriate sustainability criteria to be applied from 1st January 2021 and a
review of the effectiveness of the incentives provided for biofuels from
non-land using feedstocks and non-food crops under Article 3(4)d of Directive
2009/28/EC.

Article 4
Transposition

1.           Member States shall bring
into force the laws, regulations and administrative provisions necessary to
comply with this Directive by [twelve months
after adoption] at the latest. They shall forthwith communicate to
the Commission the text of those provisions.

When Member States adopt those provisions, they
shall contain a reference to this Directive or be accompanied by such a
reference on the occasion of their official publication. Member States shall
determine how such reference is to be made.

2.           Member States shall
communicate to the Commission the text of the main provisions of national law
which they adopt in the field covered by this Directive.

Article 5
Entry into force

This Directive shall enter into force on
the twentieth day following that of its publication in the Official Journal of
the European Union.

Article 6

This Directive is addressed to the Member
States.

Done at Brussels,

For the European Parliament                       For
the Council

The President                                                 The
President

ANNEX I

Annexes to Directive 98/70/EC are amended
as follows:

(1) Annex IV, part C is amended as follows:

(a) point 7 is replaced by the following:

'7. Annualised emissions from carbon stock
changes caused by land-use change, el, shall be calculated by
dividing total emissions equally over 20 years. For the calculation of these
emissions the following rule shall be applied:

el =
(CSR – CSA) × 3,664 × 1/20 × 1/P,

where

el =       annualised
greenhouse gas emissions from carbon stock change due to land-use change
(measured as mass (grams) of CO2-equivalent per unit biofuel energy
(megajoules));

CSR = the carbon stock per unit area
associated with the reference land-use (measured as mass (tonnes) of carbon per
unit area, including both soil and vegetation). The reference land-use shall be
the land use in January 2008 or 20 years before the raw material was obtained,
whichever was the later;

CSA = the carbon stock per unit area
associated with the actual land-use (measured as mass (tonnes) of carbon per
unit area, including both soil and vegetation). In cases where the carbon stock
accumulates over more than one year, the value attributed to CSA
shall be the estimated stock per unit area after 20 years or when the crop
reaches maturity, whichever the earlier; and

P =       the productivity of the crop
(measured as biofuel or energy per unit area per year).'

(b) points 8 and 9 are deleted.

(2) The following Annex V is added:

'Annex V

Part A. Estimated indirect land-use
change emissions from biofuels

Feedstock group || Estimated indirect land-use change emissions (gCO2eq/MJ)

Cereals and other starch rich crops || 12

Sugars || 13

Oil crops || 55

Part B. Biofuels for which the
estimated indirect land-use change emissions are considered to be zero

Biofuels produced from the following
feedstock categories will be considered to have estimated indirect land-use
change emissions of zero:

(a)
feedstocks which are not included under Part A
of this Annex.

(b)
feedstocks whose production has led to direct
land use change, i.e. a change from one of the following IPCC land cover
categories; forest land, grassland, wetlands, settlements, or other land, to
cropland or perennial cropland[14].
In such a case a "direct land use change emission value (el) should have
been calculated in accordance to Part C, paragraph 7 of Annex IV.'

ANNEX II

Annexes to Directive 2009/28/EC are amended
as follows:

(1) Annex V, part C is amended as follows:

(a) point 7 is replaced by the following:

'7. Annualised emissions from carbon stock
changes caused by land-use change, el, shall be calculated by
dividing total emissions equally over 20 years. For the calculation of these
emissions the following rule shall be applied:

el =
(CSR – CSA) × 3,664 × 1/20 × 1/P,

where

el =       annualised
greenhouse gas emissions from carbon stock change due to land-use change
(measured as mass (grams) of CO2-equivalent per unit biofuel energy
(megajoules));

CSR = the carbon stock per unit area
associated with the reference land use (measured as mass (tonnes) of carbon per
unit area, including both soil and vegetation). The reference land-use shall be
the land-use in January 2008 or 20 years before the raw material was obtained,
whichever was the later;

CSA = the carbon stock per unit area
associated with the actual land-use (measured as mass (tonnes) of carbon per
unit area, including both soil and vegetation). In cases where the carbon stock
accumulates over more than one year, the value attributed to CSA
shall be the estimated stock per unit area after 20 years or when the crop
reaches maturity, whichever the earlier; and

P =       the productivity of the crop
(measured as biofuel or bioliquid energy per unit area per year).'

(b) points 8 and 9 are deleted.

(2) The following Annex VIII is added:

'Annex VIII

Part A. Estimated indirect land-use
change emissions from biofuel and bioliquid feedstocks

Feedstock group || Estimated indirect land-use change emissions (gCO2eq/MJ)

Cereals and other starch rich crops || 12

Sugars || 13

Oil crops || 55

Part B. Biofuels and bioliquids for
which the estimated indirect land-use change emissions are considered to be
zero

Biofuels and bioliquids produced from the
following feedstock categories will be considered to have estimated indirect
land-use change emissions of zero:

(a)
feedstocks which are not included under Part A
of this Annex.

(b)
feedstocks whose production has led to direct
land use change, i.e. a change from one of the following IPCC land cover
categories; forest land, grassland, wetlands, settlements, or other land, to
cropland or perennial cropland[15].
In such a case a "direct land use change emission value (el)
should have been calculated in accordance to Part C, paragraph 7 of Annex V.'

(3) The following Annex IX is added:

'Annex IX

Part A. Feedstocks whose contribution
towards the target referred to in Article 3(4) shall be considered to be four
times their energy content

(a)
Algae.

(b)
Biomass fraction of mixed municipal waste, but
not separated household waste subject to recycling targets under Article
11(2)(a) of Directive 2008/98/EC of the European Parliament and of the Council
of 19 November 2008 on waste and repealing certain Directives.

(c)
Biomass fraction of industrial waste.

(d)
Straw.

(e)
Animal manure and sewage sludge.

(f)
Palm oil mill effluent and empty palm fruit
bunches.

(g)
Tall oil pitch.

(h)
Crude glycerine.

(i)
Bagasse.

(j)
Grape marcs and wine lees.

(k)
Nut shells.

(l)
Husks.

(m)
Cobs

(n)
Bark, branches, leaves, saw dust and cutter
shavings.

Part B. Feedstocks whose contribution
towards the target referred to in Article 3(4) shall be considered to be twice
their energy content

(a)
Used cooking oil.

(b)
Animal fats classified as category I and II in
accordance with EC/1774/2002 laying down health rules concerning animal
by-products not intended for human consumption[16].

(c)
Non-food cellulosic material.

(d)
Ligno-cellulosic material except saw logs and
veneer logs.

[1]               OJ L 140 5.6.2009

[2]               OJ L 350 28.12.1998

[3]               Article 7d(6) of Directive 2009/30/EC and
Article 19(6) of Directive 2009/28/EC

[4]               COM(2010) 811.

[5]               Indirect
land-use change emissions estimates are calculated through modelling, which,
notwithstanding recent improvements made in the science, remain sensitive to and may vary according to the modelling framework and
assumptions made.

[6]               As defined in paragraph 3.1.1 of C 160 (2010)

[7]               OJ C , , p. .

[8]               OJ C , , p. .

[9]               OJ L 140, 5.6.2009, p. 16.

[10]             OJ L 350, 28.12.1998, p. 58.

[11]             COM(2012) 60.

[12]             COM(2011) 571.

[13]             OJ L 312 of 22 November 2008, p.3.

[14]             Perennial crops are defined as multi-annual crops whose
stem is usually not annually harvested such as short rotation coppice and oil
palm as defined in (2010/C 160/02)

[15]             Perennial crops are defined as multi-annual crops whose
stem is usually not annually harvested such as short rotation coppice and oil
palm as defined in (2010/C 160/02)

[16]             OJ L 273, 10.10.2002, p. 1