The Belgian Presidency takes the helm at a time when much of importance is at stake for the future of EU energy policy and when the decarbonisation of transport is a top priority on the European agenda. The issues likely to be covered are broad, from emissions trading benchmarking to atomic cooperation agreements.

The Presidency will also steer discussions around key issues that will determine how important aspects of the 2009 Climate and Energy Package will be implemented. For UNICA, that represents the majority of Brazilian sugarcane ethanol producers, the issues with the most relevance relate to the implementation of the Renewable Energy Directive and the impact they will have on the use of biofuels in the EU transport energy mix.

Brazilian sugarcane ethanol has been shown through independent scientific studies to be a key fuel when it comes to reducing greenhouse gas (GHG) emissions from transport. Brazilian sugarcane ethanol reduces GHG emissions by up to 90% compared to petrol. Given the EU’s target of having 10% of energy in the transport mix from renewable sources by 2020, in order to reduce GHG emissions, Brazilian sugarcane ethanol can play a significant part in achieving this goal.

The second half of 2010 will see the publication of the highly anticipated European Commission report on the impact of indirect land use change on greenhouse gas emissions and addressing ways to minimise that impact. This report will directly tackle the issue of indirect land use change (ILUC) in relation to the growth and use of biofuels. We hope that the Presidency will drive the debate on the course set by scientific reports that have already been produced by the Commission that recognise the positive benefits of biofuels on CO2 emission reductions in transport, and on the environmental benefits of trade opening in biofuels.

Another key initiative expected from the Commission is a Communication on Guidelines for implementing the Sustainability Criteria for biofuels, which is currently blocked.  UNICA calls on the Presidency to ensure that the Guidelines are published as soon as possible, to help bring a stable policy and investment framework and allow industry to put in place the necessary measures to comply.  
Recognising the important role that Brazilian sugarcane ethanol can play in supporting the EU to reduce its CO2 emissions should be a key consideration for the Presidency in the forthcoming months.