WRITTEN QUESTION E-1055/98

by Giacomo Santini (PPE) , Claudio Azzolini (PPE) and Umberto Scapagnini (PPE) to the Commission

(6 April 1998)

Subject: Encouraging the non-food use of agricultural products

As part of the reform of the CAP the Commission communication to the Council and European Parliament entitled "Development and future of the CAP" (COM(91) 258, 22 July 1991) states that the use of agricultural products for non-food purposes should be encouraged.

The Commission has also supported the non-food use of agricultural products, particularly Biodiesel, and approved numerous research and development projects financed under the Thermie and Altener programmes.

Oleaginous plants for non-food use have covered almost all industrial set-aside areas, and Biodiesel represents one of the most important outlets: in 1996 17 production units with a production capacity of 1 million tonnes produced 450 000 tonnes of biofuel, corresponding to the agricultural production of some 500 000 hectares.

The White Paper on renewable energy (adopted by the Commission on 26 November 1997) sets a target of 2 % of the fuel market for biofuels. Emergency measures are essential for the 1998 marketing year pending an interim measure under Agenda 2000 since failure to find a solution could thwart years of research and development by both industry and agriculture and adversely affect the credibility of the renewable energy policy.

Does the Commission intend to adopt measures to encourage the production of seeds for non-food use on mandatory set-aside land and, considering that only a minimum percentage of mandatory set-aside land is under cultivation, adopt the solution of granting more aid to farmers who grow crops for non-food use than to those who do not?

Answer given by Mr Fischler on behalf of the Commission

(16 June 1998)

Biodiesel production from oilseeds grown on land set aside compulsorily has become in recent years an important sector of energy supply from renewable materials. It is true that this development, which also has advantages from the environmental point of view, is to some extent a by-product of the set-aside scheme. However, since compulsory set-aside was conceived as an instrument for managing the market in arable products and its rate has decreased significantly in recent years, it has proved, over the years, to be less suitable for ensuring biomass supply.

As the Honourable Members underline, the Commission has committed itself, under the Thermie and Altener programmes but especially by the adoption of the White Paper on renewable energy sources(1), in November 1997, to promoting energy production from biomass.

In this context, but also faced with the challenge posed by Agenda 2000(2) to promote more rational development of agricultural policy, if is necessary to think about new ways of ensuring stable supplies of raw materials for the biofuels industry and to consider a harmonised approach concerning the tax measures currently applied at national level.

Within the framework of Agenda 2000 voluntary set-aside should play an important role, in view of the possibility, for Member States, to allow producers to freeze up to 100 % of their arable land. This can then be used to grow raw materials for non-food purposes, for example biofuel production.

Moreover, the Commission proposals provide for market policy to be supplemented by a new rural development policy which could also offer prospects in the field of renewable raw materials. Thus Member States can obtain Community aid for their national programmes aiming at the promotion of investments concerning non-food products.

(1) COM(97) 599 final.

(2) COM(97) 2000 final.