The Good, the Bad & The Ugly… about ILUC


Members of the European Parliament finally endorsed the COREPER text on ILUC yesterday morning in plenary. After the disappointment of not winning concessions from Member States on any of their main points, MEPs have – against the will of many – voted in favour of the Council ILUC text. Final rubber stamp (for real this time!) should be given by Member States at the next Energy Council on 8 June.

In the meantime, in case you are confused on the outcome of almost three years of negotiations, here below you can find a summary (I couldn’t help thinking about this movie, which also happened to be quoted by Mr Torvalds during yesterday’s debate!)

“The Good”
– Little consolation that the final cap agreed is set at 7%. My comment is: better than nothing! We have always criticized such a black and white approach, but we don’t want to be too negative and at least a higher cap than the 5% proposed by the Commission will allow a little share of bioethanol to remain in the EU biofuels market.

“The Bad”
– The 0.5% non-binding target for advanced biofuels. With no incentives for advanced biofuels, their ability to participate to the 3% left of the 10% RED target is even more in doubt…

“The Ugly”
– …and, of course, the exclusion from the deal of the 6.5% sub-target for bioethanol. More sustainable biofuels will therefore not be incentivized in Europe and Member States will not move towards an E10 blend. A real disappointment for bioethanol, considering that biodiesel will cover most of the 7% cap.

It’s time to turn the ‘ILUC page’ and look beyond 2020. Policymakers need to start thinking already about the longer term and set up a credible framework for the post-2020. Low-ILUC biofuels should be promoted and sugarcane bioethanol is one of those.

We see two important milestones in particular: the revision of the Renewable Energy Directive in 2016/2017 and the wider discussions around the decarbonisation of transport. In both cases, we will be there to put sustainable biofuels at center stage.

Géraldine Kutas

Géraldine Kutas

A seasoned professional specializing in international trade policy, Géraldine Kutas leverages over a decade of experience to strengthen UNICA’s activities across the European Union, the United States and Asia. She has a deep expertise in biofuels and agricultural policies, coupled with extensive exposure to multilateral and regional trade negotiations in agriculture. Ms. Kutas is the author and co-author of several international publications on these topics.

Before joining UNICA, she was a researcher and a professor at the Groupe d’Economie Mondiale at Sciences Po(GEM), Paris, and coordinator of the European Biofuels Policy research programme (EBP). Ms. Kutas has also worked as a consultant at the Inter-American Bank of Development and for agro-business firms.

Ms. Kutas has a Ph.D. in International Economics from the Institut d’Etudes Poliques de Paris and a Master degree in Latin American Studies from Georgetown University, Washington DC.