Common Position (EC) No 1/2003 of 18 November 2002 adopted by the Council, acting in accordance with the procedure referred to in Article 251 of the Treaty establishing the European Community, with a view to adopting a directive of the European Parliament and of the Council concerning the promotion of the use of biofuels or other renewable fuels for transport
Date: 2002-11-18
Institutions: Council of the European Union
Subjects: EU environmental policy, common transport policy, exchange of information, renewable energy, substitute fuel

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I

(Information)

COUNCIL

COMMON POSITION (EC) No 1/2003

adopted by the Council on 18 November 2002

with a view to the adoption of a Directive 2003/. . ./EC of the European Parliament and of the
Council of . . . on the promotion of the use of biofuels or other renewable fuels for transport

(2003/C 32 E/01)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 175(1) thereof,

Having regard to the proposal from the Commission (1),

Having regard to the opinion of the Economic and Social
Committee (2),

Having regard to the opinion of
Regions (3),

the Committee of

the

Acting in accordance with the procedure laid down in Article
251 of the Treaty (4),

Whereas:

(1) The European Council meeting at Gothenburg on 15 and
16 June 2001 agreed on a Community strategy for
sustainable development consisting in a set of measures,
which include the development of biofuels.

(2) Natural resources, and their prudent and rational utili-
the Treaty,
sation as referred to in Article 174(1) of
include oil, natural gas and solid fuels, which are
essential sources of energy but also the leading sources
of carbon dioxide emissions.

(3) However, there is a wide range of biomass that could be
used to produce biofuels, deriving from agricultural and
forestry products, as well as from residues and waste from
forestry and the forestry and agrifoodstuffs industry.

(1) OJ C 103 E, 30.4.2002, p. 205. and OJ C 331 E, 31.12.2002, p.

291.

(2) OJ C 149, 21.6.2002, p. 7.
(3) Opinion delivered on 16 May 2002 (not yet published in the

Official Journal).

(4) Opinion of

the European Parliament of 4 July 2002 (not yet
published in the Official
Journal), Council Common Position of
18 November 2002 and Decision of the European Parliament of
. . . (not yet published in the Official Journal).

(4) The transport sector accounts for more than 30 % of final
energy consumption in the Community and is expanding,
a trend which is bound to increase, along with carbon
dioxide emissions and this expansion will be greater in
percentage terms in the candidate countries following
their accession to the European Union.

(5) The Commission White Paper ‘European transport policy
for 2010: time to decide’ expects CO2 emissions from
transport to rise by 50 % between 1990 and 2010, to
around 1 113 million tonnes,
the main responsibility
resting with road transport, which accounts for 84 % of
transport-related CO2 emissions. From an ecological point
of view, the White Paper therefore calls for dependence on
oil (currently 98 %) in the transport sector to be reduced
by using alternative fuels such as biofuels.

(6) Greater use of biofuels for transport forms a part of the
package of measures needed to comply with the Kyoto
Protocol, and of any policy package to meet
further
commitments in this respect.

(7) Increased use of biofuels for transport, without ruling out
other possible alternative fuels, including automotive LPG
and CNG, is one of the tools by which the Community
can reduce its dependence on imported energy and
influence the fuel market
for transport and hence the
security of energy supply in the medium and long term.
However, this consideration should not detract in any way
from the importance of compliance with Community
legislation on fuel quality, vehicle emissions and air
quality.

(8) As a result of

technological advances, most vehicles
currently in circulation in the European Union are
capable of using a low biofuel blend without any
problem. The most recent
technological developments
make it possible to use higher percentages of biofuel in
the blend. Some countries are already using biofuel blends
of 10 % and higher.

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(9) Captive fleets offer the potential of using a higher concen-
tration of biofuels. In some cities captive fleets are already
operating on pure biofuels and,
in some cases, this has
helped to improve air quality in urban areas.

more market-orientated common agriculture policy geared
more to the European market and to respect for flour-
ishing country life and multifunctional agriculture, and
could open a new market
innovative agricultural
products.

for

(10) Promoting the use of biofuels in transport constitutes a
step towards a wider application of biomass which will
enable biofuel to be more extensively developed in the
future, whilst not
in
particular, the hydrogen option.

excluding other options and,

(16) In its Resolution of 8 June1998 (1) the Council endorsed
the Commission's strategy and action plan for renewable
energy sources and requested specific measures in the
biofuels sector.

(11) The research policy pursued by the Member States relating
to increased use of biofuels
should incorporate the
hydrogen sector to a significant degree and promote this
the relevant Community
option,
Framework Programmes.

taking into account

(12) Pure vegetable oil

from oil plants produced through
pressing, extraction or comparable procedures, crude or
refined but chemically unmodified, can also be used as
biofuel in specific cases where its use is compatible with
involved and the corresponding
the type of engines
emission requirements.

(13) New types of fuel should conform to recognised technical
standards if they are to be accepted to a greater extent by
customers and vehicle manufacturers and hence penetrate
the market. Technical standards also form the basis for
requirements concerning emissions and the monitoring
of emissions. New types of fuel may find it difficult to
meet current
to a large
extent, have been developed for conventional fossil fuels.
The Commission and standardisation bodies
should
monitor developments and actively adapt and develop
standards so that new types of fuel can be introduced,
whilst
performance
requirements.

standards, which,

environmental

maintaining

technical

to

laid

down

ensure

(14) Bioethanol and biodiesel, when used for vehicles in pure
form or as a blend, should comply with the quality
optimum engine
standards
performance. It is noted that in the case of biodiesel for
diesel engines, where the processing option is esterifi-
standard prEN 14214 of
cation,
the European
the
Committee
for Standardisation (CEN) on fatty acid
methyl esters (FAME) could be applied. Accordingly, the
CEN should establish appropriate standards for other
transport biofuel products in the European Union.

(15) Promoting the use of biofuels in keeping with sustainable
farming and forestry practices laid down in the rules
governing the common agricultural policy could create
new opportunities for sustainable rural development in a

(17) The Commission Green Paper

the Security of Energy Supply’

‘Towards a European
Strategy for
the
objective of 20 % substitution of conventional fuels by
alternative fuels in the road transport sector by the year
2020.

sets

(18) Alternative fuels will only be able to achieve market
penetration if they are widely available and competitive.

(19) In its Resolution of 18 June 1998 (2)

the European
Parliament called for an increase in the market share of
biofuels to 2 % over five years through a package of
financial assistance
measures,
for the processing industry and the establishment of a
compulsory rate of biofuels for oil companies.

including tax exemption,

(20) The optimum method for increasing the share of biofuels
in the national and Community markets depends on the
availability of resources and raw materials, on national and
Community policies to promote biofuels and on tax
arrangements, and on the appropriate involvement of all
stakeholders/parties.

(21) National policies to promote the use of biofuels should not
lead to prohibition of the free movement of fuels that
meet the harmonised environmental specifications as laid
down in Community legislation.

(22) Promotion of the production and use of biofuels could
contribute to a reduction in energy import dependency
and in emissions of greenhouse gases.
In addition,
biofuels, in pure form or as a blend, may in principle be
used in existing motor vehicles and use the current motor
vehicle fuel distribution system. The blending of biofuel
with fossil fuels could facilitate a potential cost reduction
in the distribution system in the Community.

(1) OJ C 198, 24.6.1998, p. 1.
(2) OJ C 210, 6.7.1998, p. 215.

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for

sufficiently

cannot be

general principles providing

(23) Since the objective of the proposed action, namely the
introduction of
a
minimum percentage of biofuels to be marketed and
distributed,
the
Member States by reason of the scale of the action, and
can therefore be better achieved at Community level, the
Community may adopt measures, in accordance with the
principle of subsidiarity as set out in Article 5 of the
Treaty. In accordance with the principle of proportionality,
this Directive does not go
as set out
beyond what
to achieve that
objective.

is necessary in order

in that Article,

achieved by

(24) Research and technological development in the field of the

sustainability of biofuels should be promoted.

(25) An increase in the use of biofuels should be accompanied
by a detailed analysis of the environmental, economic and
social impact in order to decide whether it is advisable to
increase the proportion of biofuels in relation to conven-
tional fuels.

(26) Provision should be made for the possibility of rapidly
adapting the list of biofuels, the percentage of renewable
contents, and the schedule for introducing biofuels in the
transport fuel market, to technical progress and to the
the
results of an environmental
first phase of introduction.

impact assessment of

(27) Measures should be introduced for rapidly developing the
quality standards for the biofuels to be used in the auto-
motive sector, both as pure biofuels and as a blending
component in the conventional fuels. Although the biode-
gradable fraction of waste is a potentially useful source for
producing biofuels, the quality standard has to take into
account the possible contamination present in the waste to
avoid special components damaging the vehicle or causing
emissions to deteriorate.

(28) Encouragement of the promotion of biofuels should be
consistent with security of supply and environmental
objectives and related policy objectives and measures
within each Member State. In doing so, Member States
may consider cost-effective ways of publicising the possi-
bilities of using biofuels.

(29) The measures necessary for the implementation of this
Directive should be adopted in accordance with Council
Decision 1999/468/EC of 28 June 1999 laying down the
procedures
implementing powers
the exercise of
conferred on the Commission (1),

for

(1) OJ L 184, 17.7.1999, p. 23.

HAVE ADOPTED THIS DIRECTIVE:

Article 1

to replace diesel or petrol

This Directive aims at promoting the use of biofuels or other
renewable fuels
transport
purposes in each Member State, with a view to contributing
to objectives such as meeting climate change commitments,
environmentally-friendly security of supply and promoting
renewable energy sources.

for

Article 2

For the purpose of this Directive,

1.
nitions shall apply:

the following defi-

(a)

‘biofuels’ means
produced from biomass;

liquid or gaseous

fuel

for

transport

(b) ‘biomass’ means the biodegradable fraction of products,
waste and residues from agriculture (including vegetal and
animal substances), forestry and related industries, as well
as the biodegradable fraction of industrial and municipal
waste;

(c)

‘other renewable fuels’ means renewable fuels, other than
biofuels, which originate from renewable energy sources as
defined in Directive 2001/77/EC (2) and used for transport
purposes;

(d) ‘energy content’ means the lower calorific value of a fuel.

At least those products listed below shall be considered

2.
biofuels:

(a) ‘bioethanol’: ethanol produced from biomass and/or the
biodegradable fraction of waste, to be used as biofuel;

(b) ‘biodiesel’: a methyl-ester produced from vegetable or

animal oil, of diesel quality, to be used as biofuel;

(c) ‘biogas’: a fuel gas produced from biomass and/or from the
biodegradable fraction of waste, that can be purified to
natural gas quality, to be used as biofuel, or woodgas;

(d) ‘biomethanol’: methanol produced from biomass, to be used

as biofuel;

(e) ‘biodimethylether’: dimethylether produced from biomass,

to be used as biofuel;

(f)

‘bio-ETBE (ethyl-tertio-butyl-ether)’: ETBE produced on the
basis of bioethanol. The percentage by volume of bio-ETBE
that is calculated as biofuel is 47 %.

(2) Directive 2001/77/EC of

the
Council of 27 September 2001 on the promotion of electricity
produced from renewable energy sources in the internal electricity
market (OJ L 283, 27.10.2001, p. 33).

the European Parliament and of

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(g) ‘bio-MTBE (methyl-tertio-butyl-ether)’: a fuel produced on
the basis of biomethanol. The percentage by volume of
bio-MTBE that is calculated as biofuel is 36 %.

value of 5 % of fatty acid methyl ester (FAME) or of 5 % of
bioethanol, a specific labelling at
the sales points shall be
imposed.

(h) ‘synthetic biofuels’: synthetic hydrocarbons or mixtures of
synthetic hydrocarbons, which have been produced from
biomass.

(i)

‘biohydrogen’: hydrogen produced from biomass, and/or
from the biodegradable fraction of waste, to be used as
biofuel.

Article 3

Article 4

1. Member States shall report to the Commission, before 1
July each year, on the total sales of transport fuel and the share
of biofuels, pure or blended, and other renewable fuels placed
for the preceding year. Where appropriate,
on the market
Member States shall report on any exceptional conditions in
the supply of crude oil or oil products that have affected the
marketing of biofuels.

1. (a) Member

States

should

a minimum
proportion of biofuels and other renewable fuels is
placed on their markets, and, to that effect, shall set
national indicative targets.

ensure

that

following the entry into force of

In their first report
Directive, Member States shall
national
indicative targets for the first phase.
covering the year 2006, Member States shall
national indicative targets for the second phase.

this
their
In the report
indicate their

indicate the level of

(b)

(i) A reference value for these targets shall be 2 %,
calculated on the basis of energy content, of all
petrol and diesel for transport purposes placed on
their markets by 31 December 2005.

(ii) A reference value for these targets shall be 5,75 %,
calculated on the basis of energy content, of all
petrol and diesel for transport purposes placed on
their markets by 31 December 2010.

Biofuels may be made available in any of the following

2.
forms:

(a) as pure biofuels or at high concentration in mineral oil
in accordance with specific quality standards

derivatives,
for transport applications;

(b) as biofuels blended in mineral oil derivatives, in accordance
with the appropriate European norms describing the
technical specifications for transport fuels (EN 228 and
EN 590);

(c) as liquids derived from biofuels, such as ETBE (ethyl-tertio-
butyl-ether), where the percentage of biofuel is as specified
in Article 2(2).

3. Member States shall monitor the effect of the use of
biofuels in diesel blends above 5 % by non-adapted vehicles
to ensure
and shall, where
compliance with the
relevant Community legislation on
emission standards.

take measures

appropriate,

In the measures that they take, the Member States should
4.
consider the overall climate and environmental balance of the
various
types of biofuels and may give priority to the
promotion of those biofuels showing a very good cost-effective
environmental balance, while also taking into account competi-
tiveness and security of supply.

5. Member States shall ensure that information is given to
the public on the availability of biofuels. For percentages of
biofuels, blended in mineral oil derivatives, exceeding the limit

In these reports, differentiation of
compared to the reference values
3(1)(b),
following elements:

the national
targets, as
referred to in Article
shall be motivated and could be based on the

(a) objective factors such as the limited national potential for
production of biofuels from agricultural products and/or
waste, the national resources allocated to the production
of biomass for energy uses other than transport and the
specific characteristics of the national market for transport
fuels;

(b) national policies consistent with the objectives of

the
energy sector in the European Union (security of supply,
competitiveness and protection of the environment), related
to the transport sector and aiming at objectives similar to
those pursued by this Directive (meeting climate-change
commitments; contributing to security of supply in an
environment-friendly way; promoting renewable energy
sources).

2.
By 31 December 2006 at the latest, and every two years
thereafter, the Commission shall draw up an evaluation report
for the European Parliament and for the Council on the
progress made in the use of biofuels and other renewable
fuels in the Member States.

This report shall cover at least the following:

(a) the cost-effectiveness of the measures taken by Member
States in order to promote the use of biofuels and other
renewable fuels;

(b) the economic aspects and the environmental
the

share of biofuels

increasing

further
renewable fuels;

impact of
and other

(c)

the life-cycle perspective of biofuels and other renewable
fuels, with a view to indicating possible measures for the
future promotion of those fuels that are climate- and envi-
ronmentally friendly, and that have the potential of
becoming competitive and cost-efficient;

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(d) the sustainability of crops used for the production of
biofuels, particularly land use, degree of intensity of culti-
vation, crop rotation and use of pesticides;

(e) the assessment of the use of biofuels and other renewable
fuels with respect to their differentiating effects on climate
change and their impact on CO2 emissions reduction;

(f) a review of further more long-term options concerning

energy efficiency measures in transport.

On the basis of this report,
the Commission shall submit,
where appropriate, proposals to the European Parliament and
the Council on the adaptation of the system of targets, as laid
down in Article 3(1). If this report concludes that the indicative
targets are not likely to be achieved for reasons that are unjus-
tified and/or do not relate to new scientific evidence, these
proposals shall address national
including possible
mandatory targets, in the appropriate form.

targets,

Article 5

The list contained in Article 2(2) may be adapted to technical
progress in accordance with the procedure referred to in
Article 6(2). When adapting this
the environmental
impact of biofuels shall be taken into account.

list,

Article 6

1.

The Commission shall be assisted by a Committee.

3.

The Committee shall adopt its rules of procedure.

Article 7

1. Member States shall bring into force the laws, regulations
and administrative provisions necessary to comply with this
Directive by 31 December 2004 at
the latest. They shall
forthwith inform the Commission thereof.

When Member States adopt these measures, they shall contain
a reference to this Directive or be accompanied by such
reference on the occasion of their official publication. The
methods of making such a reference shall be laid down by
the Member States.

2. Member States shall communicate to the Commission the
provisions of national
in the field
covered by this Directive.

law which they adopt

Article 8

This Directive shall enter into force on the day of its publi-
cation in the Official Journal of the European Communities.

Article 9

This Directive is addressed to the Member States.

2. Where reference is made to this paragraph, Articles 5 and
7 of Decision 1999/468/EC shall apply, having regard to the
provisions of Article 8 thereof.

Done at . . .

The period laid down in Article 5(6) of Decision 1999/468/EC
shall be set at three months.

For the European Parliament

The President

For the Council

The President

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STATEMENT OF THE COUNCIL'S REASONS

I. INTRODUCTION

1. On 17 December 2001, the Commission presented a proposal (1) based on Article 175(1) of the

Treaty.

2. The Economic and Social Committee delivered its opinion (2) on 25 April 2002. The Committee of

the Regions delivered its Opinion on 16 May 2002.

3. The European Parliament adopted its opinion at first reading on 4 July 2002, approving 60
amendments. In the light of this opinion the Commission presented a modified proposal on 13
September 2002.

4. On 18 November 2002, the Council adopted its Common Position in accordance with Article 251

of the Treaty.

II. OBJECTIVE OF THE PROPOSAL

5. The objective of the proposal

is to foster the use of biofuels for transport within the EU by
ensuring a mandatory minimum share of biofuels put on the markets of Member States of 2 %,
calculated on the basis of energy content, of all gasoline and diesel put on their markets for
transport purposes by 31 December 2005, and that
this share increases, aiming towards a
minimum level of blending, in accordance with a schedule in the Annex of the proposal. The
aim of
the mechanism proposed is to contribute to compliance with the environmental
commitments made in the framework of the Kyoto Protocol and to contribute to reducing the
European Union's energy dependence on third countries.

III. ANALYSIS OF THE COMMON POSITION

6. The main changes introduced by the Council are as follows:

7.

(a) The Council extended the scope of the directive to cover not only biofuels but also other
renewable fuels for transport purposes in each Member State and broadened its objective by
stating that the purpose of this Directive is to promote the use of these fuels instead of simply
setting a percentage of biofuels to replace conventional fuels (Article 1).

(Article 3(1)(b). Member States

(b) The Council considered that indicative targets would be more appropriate than mandatory ones,
enabling Member States to introduce the necessary measures in a gradual and flexible manner,
on the understanding that the system will be reviewed after a first stage of implementation.
Therefore, the common position provides that the objective should be reached on the basis of
reference values for stage one (2 % by 31 December 2005) and stage two (5,75 % by 31
December 2010)
the
minimum proportion of biofuels and other renewable fuels placed on their markets, for
stage one as well as for stage two (Article 3(1)(a) and (b). This two-stage approach is supple-
mented by a review clause, based on reports from the Commission and Member States (Article
4(1) and (2). In their reports, Member States may differentiate the national indicative targets as
compared to the reference values, but these differentiations have to be motivated on the basis
of specific elements (Article 4(1)(a) and (b). Based on Member States' reports, the Commission
draws up an evaluation report, and submits, where appropriate, proposals for an adaptation of
the targets.

set national

indicative

targets

for

(1) OJ C 103 E, 30.4.2002 p. 205.
(2) OJ C 149, 21.6.2002, p. 7.

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8. The Council furthermore clarified/modified the following issues:

Blending: the Council did not retain the proposed proportion of blending to be achieved in the
second stage (Annex), considering that blending is not yet a standardised procedure and it should
therefore be open to Member States whether they wish to blend biofuel into the fossil fuel or not;

List of products (Article 2(2)): the Council moved the list of products considered ‘biofuels’ from the
‘synthetic biofuels’ and
Annex to Article 2(2) and added the following products:
‘biohydrogen’. While so doing, the Council also clarified that this list is an open list, which may
be adapted to technical progress in accordance with the Comitology procedure (Article 6).

‘bio-MTBE’,

Environmental balance of biofuels: the Council strengthened the link between promoting biofuels and
other renewable fuels and contributing to objectives such as climate change commitments, envi-
ronmentally-friendly security of supply and the promotion of renewable energy sources (Article 1).
Furthermore, the measures taken by Member States to ensure that a minimum proportion of
biofuels and other renewable fuels is placed on their markets have also to consider the overall
climate and environmental balance of the various types of biofuels, and, in doing so, may give priority to
those biofuels showing a very cost-effective environmental balance, while also taking into account
competitiveness and security of supply (Article 3).

Reporting obligations (Article 4): while the Council agrees that the conditions in Member States vary
considerably, the reports drawn up by Member States should motivate the differentiation of their
material targets as compared to the reference values on the basis of two sets of elements: (a)
objective factors such as production potential and allocation of biomass to other energy uses and
specific characteristics of the national transport fuel market; (b) national policies consistent with
the objectives of the energy sector, related to the transport sector in the EU and aiming at
objectives similar to those pursued by this Directive.

IV. AMENDMENTS ACCEPTED

9. Of the 60 EP amendments, the Council accepted the following 26, some of them in substance,

partially or in principle.

Recitals:

Amendment 2 (partially): related to the range of biomass that could be used (recital 3)

Amendment 3: recalls the enlargement (recital 4)

Amendment 4: underlines the importance of the use of alternative fuels (recital 5)

Amendment 7: stresses the importance of compliance with Community legislation on fuel quality
and vehicle emissions (recital 7)

Amendment 8: recalls the potential resulting from biofuels-related technology in the EU (recital 8)

Amendment 12 (partially): gives example of using biofuels (recital 9)

Amendment 14: indicates the future development of the hydrogen option (recital 10)

Amendment 15: recalls that research policy is useful to take into account the hydrogen option
(recital 11)

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Amendment 16: concerns the role of standards applicable to biofuels (recital 13)

Amendment 18: underlines that bioethanol and biodiesel should comply with quality standards
(recital 14)

Amendments 19 (partially) and 35: stresses the contribution of biofuels to other policies such as
sustainable rural development (recital 15)

Amendment 20: recalls the objectives for alternative fuels mentioned in the Green Paper on
Security (recital 17)

Amendment 21: indicates that alternative fuels should be widely available in order to become
competitive (recital 18)

Amendment 22: recalls supporting measures listed in the relevant EP resolution (recital 19)

Amendment 23: states that all parties, at the national as well as community level, have to be
involved (recital 20)

Amendment 26: stresses the technical viability of biofuels (recital 22)

Amendment 28 (in principle): underscores the need to promote research in the field of the
sustainability of biofuels (recital 24)

Amendment 29: concerns requirements laid down in Article 4(2) of the Directive (recital 25)

Amendment 30 (partially): biofuels resulting from non-chemical processes can also be used under
certain conditions (recital 12)

Amendment 31: relates to the development of appropriate quality standards for biofuels (recital
27)

Amendment 32: underlines the need for consistency of the promotion of biofuels with other
environmental and related policy objectives of Member States (recital 28)

Articles:

Amendment 58: definition of ‘biohydrogen’ added to the list of products considered to be biofuels
(Article 2(2)i))

Amendment 43: gives priority to the promotion of those biofuels showing a very cost-effective
environmental balance (Article 3(4))

Amendment 46: relates to the information of the public on the potential of biofuels and other
renewable fuels (Article 3(5))

Amendment 70 (in principle): stresses the importance of taking into account the environmental
impact of biofuels when adapting their list (Article 5).

V. AMENDMENTS NOT INTEGRATED

10. The Council considered that amendments 1, 6, 9, 11, 13, 17, 25, 27, 33, 37, 40, 41, 44, 50, 51,
52, 56, 60, 66, which the Commission has rejected, were either too restrictive (e.g. 6, 37, 40, 11),
or went beyond the objectives of the Directive (1, 9, 13, 17, 25, 27, 33, 41, 44, 50, 51, 52, 60,
66), or are already covered by existing provisions, and decided therefore not to integrate them in
its common position.