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European Union Flag Indirect Land Use Change (ILUC) Being Misinterpreted by Fuel Companies

Changes to bio-fuel policy in the European Union have been in the works since November 2014. Now six months in, the European Parliament, the European Commission and European Union states have a comprehensive piece of legislation regarding bio-fuel policy. Known as the Indirect Land-Use Change Directive, the new legislation is already facing intense scrutiny. Several fuel companies have interpreted the legislation contrary to the original proposals by the European Commission. Lawmakers intended the bio-fuels policy to guarantee renewable energy and sustainable drilling practices in Europe.

Crude Tall Oil (CTO): Residue or Product?

At the heart of the misinformation is the classification of Crude Tall Oil (CTO) as a residue. EU lawmakers now believe that CTO must be granted special status. Multiple fuel companies are now requesting European Union decision makers to adopt the Indirect Land-Use Change Directive to classify CTO as a residue. However, these very same companies have also classified CTO as a product. In Finland and Sweden, CTO has wrongly been deemed a residue, instead of a product. The reason why chemical companies appear to be doing this is to receive state subsidies, by creating confusion and obscurity around the legislation that applies to renewables.

The result is that fuel companies in Finland and Sweden are able to circumvent the criteria for sustainability in respect of the European Union’s renewable energy laws. The scarcity of CTO requires that limitations are set in place for the chemical industries that use it. This requires resource efficiency. Additionally, the contribution of exclusive use of CTO within the EU would not be met within the bio-fuel sector. Estimates suggest that exclusive use of CTO within the EU would only contribute approximately 0.4% of the 2020 EU target of 10% set out for renewable energy within the transport sector.

Many believe that the Indirect Land-Use Change Directive places a tremendous burden on European taxpayers. Without state subsidies, many petrochemical companies would be forced to curtail operations. Biochemical industries are lobbying for a leveling of the playing fields for all industries utilizing CTO as one of their raw materials.

17 Comments

  1. Mehmet Ali Samlı says:

    Thank you for all very important informations. I think this post has got very nice tips.

  2. Vladimir Dula says:

    Biofuel is the future of sustainable development of industry, it’s better to avoid all legal traps.

  3. Austin King says:

    This is definitely an issue when it comes to the taxpayers paying for anything large like the European union has proposed. if it does help the energy market and the economy as well as the environment then so be it.

  4. AnItalianMan says:

    Great article! Just what I was looking for! Thanks so much for sharing this information on Biofuel, I think it’s the best sustainable source! I recommend reading this article!

  5. lallali says:

    Unlike ,other big economic and industrial contries, the europian union is realymaking and effort , and bio-fuel is just a small drop of what they are doing in securing a safe and sustainable future.

  6. lallali says:

    Unlike ,other big economic and industrial countries, the European union
    is really making and effort , and bio-fuel is just a small drop of what
    they are doing in securing a safe and sustainable future.

  7. taniya says:

    This is very good concept. European union has proposed. Thanks for sharing.

  8. clopex says:

    Very good article and very good idea. The energy will be more cheaper and much better. I hope it will arrive soon

  9. Mark Tuein says:

    This is very good article. I’m very happy about information that is posted here. I will recommend it to friends. Thanks!

  10. Felix Mitchell says:

    great article thanks for the information here on biofuel it was well needed

  11. Indjic Vojislav says:

    Biofuel is the future of sustainable development of industry, great article I hope it will arrive soon I recommend reading this article!

  12. Momh Adz says:

    Biofuel is the future of sustainable development of industry, it’s better to avoid all legal traps.

  13. Micky Premchand says:

    This is future. Biofuel is best way for the development of the industry and it is well needed for the society

  14. Artof1 says:

    Good article which shows the difficulty of lawmaking in E.U.Hope E.U will not be directed by the lobbying of fuel companies because biofuel is a main issue of future.

  15. Valentina says:

    Love this article, thank you for sharing information.

  16. panos kostagiannis says:

    Bio-fuel, renewable energy is the future.Great article

  17. Sam Ross says:

    The practice of some chemical companies classifying CTO as a residue just when they have also claimed it to be a product just to make money is wrong and just shows how corrupt and wrong this project is for some of these countries.

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