The European renewable target for transport (10% of renewables in the transport sector by 2020) is driving mainly biofuels (projections up to 8.3% of European transport energy in 2020) with serious doubts about their sustainability both in terms of environment externalities and GHG savings. This 10% target was not meant to only drive first generation biofuels, but also other renewables in the transport sector such as renewable electricity, biofuels from waste and residues, etc.
Biofuels can have serious impacts on biodiversity and the environment if they are planted within natural habitats such as forests or high biodiverse grasslands. They can also cause damage if the demand for crops used for biofuels is leading the agricultural intensification (see agriculture section). The third impact is what is called: Indirect Land Use Change (ILUC), basically when the extra demand for biofuel crops is pushing extra agricultural land to be created in natural areas for food purposes since the biofuel crops have mopped up all the existing agricultural land. Under the Renewable Energy Directive, there are sustainability criteria for direct land use change but they do not go far enough. Moreover the issue of Indirect Land Use Change is not dealt with at all in the criteria
Greenhouse Gas impacts:
Biofuels need to show savings of 35% compared to fossil fuels and later 50 to 60%. As with the environmental impacts, currently we are only taking into account the direct impacts and not the indirect impacts. ILUC signifies emissions by the extra arable land that is being created in natural areas such as forests and peatlands. As long as these emissions have not been taken into account, the sustainability of biofuels is not secured and the least sustainable biofuels are being subsidies by taxpayers.
Without further safeguards, these policies will make the European Union a global driving force in the production of harmful biofuel crops, while contributing to an increase on net Greenhouse Gas Emissions and harmful environmental and social impacts. Current biofuels produced from food crops like maize, sugarcane, rapeseed and soybean oil are unsustainable and are causing worldwide environmental destruction. The enthusiasm about biofuels as a solution to climate change and energy security must be balanced and the risks from biofuels seriously considered. Within the transport sector, governments should not only focus on first generation biofuels but to all range of solutions (including green electricity and biofuels made from waste and residues).
The industry plays a significant role in developing business and job opportuntities in the area of biofuels. It has invested significant amounts and according to a study by Ecofys 95% of the investments would be returned by 2017. Taking this into account, stringent criteria, including full ILUC accounting, should be put in place by that time to start driving investments into more sustainable forms of transport energy.