European Motor Biofuels Forum

Toespraak | 09-01-2008

The Sixth European Motor Biofuels Forum is an excellent opportunity for exchanging ideas and views on the biofuels industry. So I was happy to accept the organisers invitation to give a presentation here. The biofuels industry is enjoying explosive growth worldwide, thanks to a number of factors.

The first, of course, is the widespread concern about climate change. There is a growing sense of urgency. Many agree there has been enough talk, and that it is time for action. Time for ambitious, pragmatic and innovative action at national and international level to achieve greenhouse gas reduction. Action by all parties at all levels: government, research institutions, market parties, NGOs and society. More than ever, people are prepared to do their bit. The momentum is here.

There are strong incentives for action: the finite nature of fossil fuels and the insecurity of supply; the sharply rising demand for energy from rapidly growing economies like China and India; and the resulting rises in fuel prices.

In my presentation, I will focus on three issues:

1. What role do biofuels play in Dutch climate policy?
2. What is their role in EU policy on climate change?
3. How can we ensure sustainable production of biofuels?

Last year, I presented the programme Clean and Efficient. Its goals are to reduce greenhouse gas emissions by thirty per cent, to increase the share of renewable energy to twenty per cent, and to increase the pace of energy savings to two per cent a year. Another major priority is to achieve sustainable transport.

These are ambitious targets. And they need to be. Transport is a significant source of CO₂ emissions, twenty per cent to be precise. This means we will need to make major advances, with ambitious measures. But what type of measures, exactly?

The guiding principle of Dutch climate policy is that everyone must do their bit towards achieving the targets. These are tough objectives, and a major contribution will be required of the transport sector. There are no easy options for the sector. There will be no gain without pain.

The government will push first and foremost for effective source policy through tougher regulation and higher standards, preferably at European level. European standards will be crucial to reducing CO₂ emissions from cars. The Netherlands has set its sights on a standard of 120 to 130 grams of CO₂ per kilometre in 2012, to be cut to 100 grams in 2016 and 80 grams in 2020.

The percentage of biofuels in the energy supply will have to rise sharply after 2010. We are studying the feasibility of a mandatory twenty per cent biofuels by 2020. But more about this in a few minutes.

The government will also stimulate demand for clean and efficient vehicles and induce car owners to make sustainable choices. To this end, environmental costs will be included in the price of mobility. Businesses and individuals will be better informed about how to choose more sustainable vehicles and be given financial incentives to buy cleaner, more efficient cars. This will naturally influence the volume of biofuels required.

Government is setting a good example by making its fleet more sustainable and by purchasing cleaner public transport vehicles. Regional and local government play an essential role in this respect. The transition to sustainable transport can take place more quickly in municipalities and regions that are at the forefront of developments.

Government will encourage innovation with demonstration and incentive programmes to show people how promising innovations work in practice and how they can be successfully marketed.

These innovations are at different stages of realisation. The Car of the Future programme aims to speed up the introduction of clean, efficient, quiet, safe and smart vehicles on the Dutch market. Innovation in the Dutch car industry, aimed for instance at making vehicles more efficient, also falls under this heading. The use of environmentally-friendly fuels should go hand in hand with proactive policy to improve vehicle efficiency.

It will be impossible to sell a big investment in improving fuels unless at the same time we take a hard look at the environmental performance of our feet.

The government will also work to improve public transport and ensure better connections with other means of transport, like cars and the most sustainable of all: bicycles. A fairer kilometre levy, varying according to time, place and the vehicles environmental characteristics, will be introduced. Road users who use their cars less and produce less pollution will pay less to drive. We can make substantial environmental progress in this way.

So far, I have only talked about our national goals. Now Id like to talk about Europe. In about two weeks, the European Commission will be presenting its long awaited package of measures to boost renewable energy. We need these measures to secure the EUs position at the forefront of the international debate on climate change. In the Netherlands, the measures will help us to achieve our own goals for a clean and efficient country.

There will be a presentation by the Commission after this, so I will leave this matter to them. What I would like to talk about is our expectations for biofuels.

In the years to come, we will see a sharp rise in the consumption of biomass fuel, which in turn will give us new opportunities. Targets to increase the use of biomass in the energy and transport sectors have been set at both EU and national level.

The primary aim of these targets is, of course, to reduce greenhouse gas emissions. But they will also result in a more varied fuel mix, making us less vulnerable to fluctuations in supply.

In the spring of 2007, the European Council agreed a target of at least ten per cent biofuels on the market in 2020. This objective is conditional on cost-effectiveness, sustainability and the availability of second-generation biofuels.

It is impossible to predict right now what the situation will be in 2020, but the Netherlands will definitely continue to urge the Commission to keep close tabs on progress. I wish to emphasise that the minimum target of ten per cent in 2020 has my full support. If possible, I would like to go further; this is why I commissioned the study into the feasibility of a twenty per cent target. At the same time, we should not pursue these quantitative targets blindly. As I proposed at EU level, there should be periodic reviews to determine whether we are on course. Then, if we are not making enough progress, or if the negative effects overshadow the positive ones, we will be able to take timely action. [slide] The cure should not be worse than the disease.

This brings me to the third subject of my presentation: improving the sustainability of biomass production. We have formulated a list of sustainability criteria for biomass production for biofuel.

• The total well-to-wheel greenhouse gas emissions should be significantly lower than for fossil fuel production.
• Biomass production for biofuel should not displace food production or other local uses of the feedstock.
• It should not damage vulnerable biodiversity.
• It should not affect the quality of the soil, water or air.
• It should benefit the local economy.
• It should improve the well-being of employees and the local population.

I expect the Commission will also address the issue of sustainability in the near future and hope to hear more about that shortly.

As for the Netherlands, the Minister for Development Cooperation and I are now discussing the sustainability criteria with biomass producer countries. I very much want to hear their views. Biomass production promises developing countries economic growth. We cannot close this opportunity to them. That is why we must address this problem from a global perspective, not from a one-sided national or European point of view.

In December, for example, I had a very constructive meeting with my Malaysian counterpart. It was encouraging to hear that Malaysia is working on a certification scheme for palm oil flows based on the standards of the Round Table on Sustainable Palm Oil. The Round Table is an international organisation of private companies, NGOs and other stakeholders. Their standards largely coincide with the sustainability criteria drawn up in the Netherlands. The adoption of the RSPO standards in Malaysia is a major step in the right direction. But we need to continue pressing for two important criteria that are lacking as yet: a positive carbon balance lower emissions than in fossil fuel production and an effective response to the indirect, negative impacts of biomass production, like deforestation, declining biodiversity and competition with palm oil production for food. I hope that the Netherlands work in this area paves the way for the European Commission.

Companies, too, have their part to play in sustainability. I expect them to start reporting on sustainability next year, and I am drawing up a bill on compulsory sustainability reporting. Companies that are required to supply biofuels will be obliged to report about how they are produced. This is the only way to achieve the required degree of transparency. But they will not have to struggle with these reports unaided: we have written a sustainability reporting handbook to help them.

In conclusion, ladies and gentlemen, we live in exciting times. Many things are changing for the better. With regard to biofuels, a spirit of sustainability and innovation is spreading over the Netherlands, Europe and the world. I do not deny that there are risks and also criticism about biofuel use. But I am determined to facilitate developments while at the same time working hard to reduce the negative impacts of biomass production. I am taking on this responsibility, nationally and internationally. And I hope to work together on this with market parties, research institutions, NGOs and other governments. Sustainable biomass production demands a joint effort, regardless of where it takes place: in Europe or the developing world.

I am convinced that this is the way to responsible growth in this booming market. It is a process in which some mistakes will be unavoidable, but a crucial process nonetheless. Because transport biofuels play an important role in the transition to sustainable transport in a sustainable world.

Thank you.