Mr. Kevin Brady:

Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 is commonly known as the renewable energy directive. This directive establishes a common framework for the promotion of energy from renewable sources. It sets mandatory national targets for the overall share of energy from renewable sources – 16% in Ireland's case – and lays down rules relating to renewable energy across the electricity, heating and transport sectors.

Directive (EU) 2015/1513 of the European Parliament and of the Council of 9 September 2015, commonly known as the indirect land use change or ILUC directive, amended the renewable energy directive. With a view to minimising the risk of indirect land use change occurring, this directive placed a limit on the share of energy from biofuels produced from cereal and other starch rich crops, sugars and oil crops and from crops grown as main crops primarily for energy purposes on agricultural land. These crops are commonly referred to as first generation energy crops. Indirect land use change is where the crops grown to make biofuels are displacing crops grown for food and these displaced food crops are being grown elsewhere, possibly on land which, if used for biofuels, would not satisfy the sustainability requirements that apply to biofuels. The ILUC directive placed a limit on the share of biofuels from these crops of no more than 7% of the final consumption of energy in transport in the member states in 2020.

Following the European Council conclusions in October 2014 and the energy union strategy of February 2015, the European Commission published the so-called Clean Energy for All Europeans package on 30 November 2016. The focus of this package of eight legislative proposals, including an amendment of the renewable energy directive, is on the period post 2020. The provisions of the proposed renewable energy directive build on the existing directive and provide a framework for renewable energy development to 2030. As highlighted in the committee’s letter of 19 October, first generation energy crops are of particular interest for this meeting.

Article 7 of the proposed revision to the renewable energy directive provides that in the calculation of a member state's gross final consumption of energy from renewable energy sources, the limit on the contribution from biofuels, bioliquids and biomass fuels consumed in transport, if produced from food or feed crops, will remain at 7% of final consumption of energy in road and rail transport in that member state for 2021. However, it proposed that this limit shall be reduced to 3.8% in 2030 following a trajectory set out in an annex to the proposal. The level of these biofuels in Ireland is currently circa 1%. In addition, the proposal sets out that member states may set a lower limit and may distinguish between different types of biofuels, bioliquids and biomass fuels produced from food and feed crops, for example, by setting a lower limit for the contribution from food or feed crop-based biofuels produced from oil crops, taking into account indirect land use change.

The renewable energy directive has been discussed by member states at working group level and is also being considered by the European Parliament. Ireland has expressed concerns regarding the proposed reduction which may reduce the demand for crops such as cereal and other starch rich crops, sugars and oil crops which are important break crops in rotation and diversification and could have a knock-on effect on the supply of oilseed-rapeseed meal available for animal feed. Discussions at the working group are ongoing and the Presidency, currently held by Estonia, has issued a number of revised versions of the proposal with a view to reaching agreement between the member states. Although many member states have expressed reservations about the proposal to reduce the 7% limit to 3.8% by 2030, final consensus on the proposal has not yet been reached. Discussions will continue with a view to general agreement being reached by the Council of energy Ministers.