This Renewable Energy Progress Report from the Commission is in accordance with Article 3 of Directive 2001/77/EC, Article 4(2) of Directive 2003/30/EC and on the implementation of the EU Biomass Action Plan.

In 1997 the Commission published a White Paper on renewable energy which announced a target to double the European Union’s renewable energy share to 12% by 2010. Two key pieces of legislation (Directives 2001/77/EC and 2003/30/EC) set indicative 2010 targets for all Member States and required actions to improve the growth, development and access of renewable energy. In addition, a Biomass Action Plan was adopted in 2005 to focus attention on the specific need for Member States to develop Europe's biomass resources.

Regular assessments and reports have been prepared on the EU’s progress towards its 2010 targets and on its efforts in general to develop renewable energy. The reports issued in 2007 as well as the Renewable Energy Roadmap highlighted the slow progress Member States were making and the likelihood that the EU as a whole would fail to reach its 2010 target. The Commission therefore proposed a new, more rigorous framework to drive forward the development of renewable energy and more solid, legally binding targets for 2020. It proposed new legislation covering all renewable energy and set new targets for 2020 to ensure a stable regulatory framework for the decade ahead. This new Renewable Energy Directive has now been agreed.

The purpose of this report is to provide information on progress since the 2007 reports, as required under the two current Directives (2001/77/EC and 2003/30/EC), focusing on data from 2004 to 2006 or 2007. The report also sets the scene for the future by describing the state of progress in developing renewable energy today and explaining how the new framework will drive forward the growth of renewable energy, including biomass, in the immediate years ahead.

Conclusions : the report concludes that Europe is still likely to fail to meet its 2010 renewable energy targets , despite the legislation, the recommendations, the exhortations and even legal proceedings against some Member States. However, there has been limited recent progress . In the electricity sector new policy measures have resulted in substantial growth in some Member States, six of whom achieved an increase in their share of at least two percentage points since 2004. At the same time, seven Member States’ renewable electricity shares have actually stagnated or shrunk since 2004. In the transport sector , quite a widespread change to the use of obligation measures rather than just taxation measures has contributed to an increase in the EU share of 1.6 percentage points since 2004, driven by growth in shares of over 2% in seven Member States.

Whilst some recent progress has been achieved, the rate of growth remains slow and the barriers to growth, across all sectors, remain high in most Member States. Europe is unlikely to reach either the target for the share of electricity from renewable energy sources or the target for the share of renewable energy in transport. The European Commission will continue to take legal action to ensure compliance with the existing Directives and so improve progress towards the 2010 targets.

Given the major potential contribution of renewable energy to the EU’s climate and energy goals, the new European Directive on renewable energy which will enter into force in early 2009, will provide a welcome strengthening of the legal framework.

The National Action Plans that Member States will have to prepare by 2010 will mean that all Member States, including those which so far have made very limited progress towards agreed EU objectives, will have to establish a clear plan as to how they intend to achieve their targets for renewable energy and for renewable energy in transport. They will have to explain how they intend to reform building codes and planning regimes to increase the use of renewable energy and to improve access conditions to the electricity grid. They will have to set out national sectoral targets, the measures and support schemes to be used to reach the targets, the specific measures for the promotion of the use of energy from biomass , the intended use of (statistical) transfers of renewable energy from other Member States and their assessment of the role different technologies will play in reaching the targets. Lastly, they will have to implement and monitor biofuel sustainability criteria to ensure biofuels clearly contribute to environmental objectives.

With all of these elements, the Directive will provide a stable policy regime for the rapid development of renewable energy in the EU for the next 12 years.

EUR-Lex
COM(2009)0192

This Commission Staff Working Document accompanies the Commission communication on the renewable energy progress report. It outlines the progress the European Union is making as regards the development of renewable energy.

Firstly, the Communication recalls the European policy framework for renewable energy: the importance of renewable energy for meeting our climate change and sustainability objectives, improving the security of our energy supply and developing an innovative European renewable energy industry to generate jobs and wealth for Europe.

This working document provides the background material and analysis supporting the results presented in the Communication. It also provides a summary of the detailed analysis undertaken for or by the Commission which explored the rate of progress and barriers to further growth in renewable energy and the impacts of biofuels in transport, as required under Directive 2003/30/EC.

More specifically, the particular areas dealt with in the report are as follows:

electricity sector : support schemes; administrative barriers and grid access; guarantees of origin and the Member States’ progress towards the 2010 targets. transport sector : progress in the use of biofuels and other renewable fuels; support schemes; economic and environmental impacts. biomass sector : the availability and use of biomass as well as the barriers to the uptake of bioenergy.

Lastly, the report also presents a summary of the state of implementation of the 33 actions of the Biomass Action.

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SEC(2009)0503

SP(2007)0609/2

SP(2007)0303

Results of vote in Parliament

Debate in Parliament

The European Parliament adopted a resolution based on the own-initiative report drafted by Werner LANGEN (PPE-DE, D), welcoming the two Commission communications on the biomass action plan and on an EU strategy for biofuels. It was convinced that the EU strategy for promoting biofuels, particularly against the background of the Lisbon Strategy, must be guided by efficiency and sustainability and that measures must not be allowed to generate a disproportionately high level of administrative expenditure. There was a need to create at regional, national and European level transparent and open markets for biomass and biofuels which met sustainable production standards. These markets should be integrated into the system of the World Trade Organisation (WTO) and be compatible with a single, transparent and competitive energy market.

Parliament felt that the Commission should reconsider all action plans and directives with a view to permitting the rational production and use of bioenergy and biofuels and that this should be done principally in the fields of plant production, forestry and waste management. It urged support for the cost-effective and sustainable production of biomass in the areas of electricity generation, methane production, transport and heating and cooling. However, aid and assistance in connection with biomass-based renewable energies should not distort competition on raw material markets in the long term. Whilst wood biomass was particularly suitable for developing markets operating on a Europe-wide basis, Parliament considered that the use of forest biomass must not lead to increased pressure on natural forests, halt the recovery of historically over-exploited forests or lead to expansion in monocultures or exotic species plantations and must always be promoted in ways that were compatible with improving the ecological quality of forests.

Parliament called on the Commission to develop a tool which can assess the sustainability of production and use of (bio) fuels. It felt that second-generation biofuels (BTL fuels) had a much higher energy use potential than first-generation biofuels. In addition, given the conflicting demands on biomass from waste, it was important that bio-energy should not be used as an excuse to promote waste incineration over more resource-saving options such as reuse, recycling or composting. Parliament asked the Commission to eliminate any obstacles based on European legislation so as to render possible and to promote the fermentation of manure or organic waste to produce biogas.

Parliament went on to call for the definition of different types of second generation biofuels in order to distinguish, given the impacts on the environment, between sylviculture products and products derived from lignocellulosic waste materials, landfill organic waste and raw materials of animal and vegetable origin. It recognised that further increasing palm oil production might affect natural forests and traditional food production, causing bio-diversity loss, land disputes and significant releases of greenhouse gases. The Commission was asked to subject the importation of palm oil-based products into the EU to compliance with sustainable production criteria, defined within a comprehensive certification scheme.

Member States were expected to come up with investment incentives for the production and use of biomass and biofuels that were the most efficient from a climatic point of view and compatible with structural and agricultural policy rules. Such incentive schemes must under no circumstances lead to the replacement of sustainable local food production.

Lastly, Parliament was convinced that public support for biofuels was essential. It noted the widespread public anxiety about green genetic engineering. The development of energy-intensive biomass must be environmentally safe and must not create a real or perceived threat to non-GM food production. Marked Assisted Selection (MAS), which allows the improvement of crops, through 'smart breeding', i.e. the crossing of plants of similar families rather than their genetic modification through the integration of alien genes, must provide a major contribution to the development of energy-intensive and at the same time environmentally safe biomass.

T6-0604/2006

Following the presentation by Commissioner Andris Piebalgs of the Action Plan for Energy Efficiency and in response to it, the Council adopted the following conclusions in a public debate:

The Council welcomes and supports the overall approach of the Commission's ambitious Action Plan for Energy Efficiency. Council agrees that energy efficiency and energy savings constitute a cornerstone of the Energy Policy for Europe. It confirms its commitment to work together with the European Commission and the European Parliament, and with the Community's industry and citizens, in a joint attempt to realise the Community's 20% energy saving potential by 2020, which the Commission estimates to be technically and economically feasible. The realisation of these savings could by 2020 lead to annual savings of EUR 100 billion and 390 Mtoe, whilst reducing the EU's CO2 emissions more

than twice as much as required by the Kyoto Protocol by 2012.

From a general point of view , the Council states that National Energy Efficiency Action Plans should be coordinated. The optimal implementation and enforcement of existing legislation relating to energy efficiency is essential and, with close cooperation between all players, will provide a substantial part of the energy savings which the Community is able to achieve in the short to medium term. Reporting

requirements under different legislative instruments and reporting to Eurostat should be rationalised

and streamlined. The successful implementation of the recommendations in the Commission's Action Plan also requires a continued and strengthened focus on R&D on energy efficiency in the context of the Seventh Research and Development Framework Programme (2007-2013), in the context of the energy component of the Competitiveness and Innovation Framework Programme (CIP) as well as in the context of the overall CIP. More attention and effort should be devoted to the translation of R&D results into energy-efficient products and services on the market and to the demonstration of these products and services.

Actions under the six pillars of the Action Plan on Energy Efficiency

Updating of dynamic energy performance requirements for energy-using products, buildings and energy services : dynamic and regular updating of appliance and equipment labelling, minimum performance requirements and reduced stand-by energy use are a priority area.

Improving energy transformation : during the next few decades, there will be a need to replace old electricity and heat production capacity with new. Therefore, Council underlines that it is important to ensure that the most energy-efficient technology available is used for the construction of new capacity, including the increased use of high-efficiency CHP, district heating and cooling and waste heat recovery, and whilst taking into account considerations relating to cost-effectiveness, security of supply and the environment.

Moving on transport : transport in general - including public, professional and private transport - holds a huge potential for increased energy efficiency, and a correspondingly large spectrum of possible measures exists to achieve this potential through an integrated approach. Therefore, Council encourages the Commission and Member States to ensure continuous improvement in the energy efficiency of vehicles, in combination with policies on improved driver behaviour, infrastructural measures, urban transport and multimodal transport, also by using real-time traffic and travel systems in all modes of transport and, where appropriate and practical, measures to reduce the need for transport.

Financing energy efficiency, economic incentives and energy pricing : new, innovative approaches, including public-private partnerships, are needed in order to lower the barriers to energy-efficient investments. All energy-efficiency investments which are clearly cost-efficient in the short, medium or long term should be further encouraged and facilitated. Financial institutions, business, including SMEs, and the public sector need guidance and advice, in both the investment and implementation phases of energy-efficiency projects. Structural and Cohesion Funds are essential financing sources for energy efficiency investments.

Changing energy behaviour : tailored measures and actions should be undertaken at national or local level to motivate energy users to reduce their energy consumption, in particular by "activating" the energy consumer with feedback on use - for example by smart metering - and with information on how to reduce consumption. The public sector should fulfil an exemplary role, and local and regional energy agencies have a key contribution to make. The role which education, training, ESCO's, energy managers and energy audits can play should be facilitated and promoted.

International partnerships : at the global level, minimum energy efficiency performance requirements for energy using

products and products affecting energy use, product standards, agreements on measurement

methods, labelling schemes, procurement guidelines for energy-using equipment and energy audit

programmes should be developed and implemented.

Among the many good proposals listed in the Commission's Action Plan, Council would highlight the following five actions as being of key importance for the Commission and Member States during the six-year application period of the Action Plan:

Exploit the huge energy-efficiency potential in transport, using an integrated approach and a variety of measures including voluntary agreements and legislation if necessary, inter alia by making rapid and continuous cost-effective improvements in vehicle fuel efficiency in cooperation with the automobile and fuel industries. Dynamically and regularly improve and expand the scope of minimum efficiency requirements for energy-using equipment, including standby-loss reduction. In this context, the Eco-Design Directive should be fully utilised and international co-operation on energy performance requirements should be strengthened. Improve the energy-efficient and energy saving behaviour of all energy consumers, including by demonstrating the benefits of available energy efficient technology and behaviour and for example by revising, enlarging the scope of, and regularly upgrading the Framework Directive 92/75/EC on labelling and the resulting implementing Directives. Use instruments at European, national and regional level, such as the Seventh Research and Development Framework Programme, in order to maximise the contribution which R&D, innovation and technology can make to energy efficiency. Continue the implementation of the Buildings Directive, and on the basis of experience gained from its application, utilise and develop the framework provided by the Directive to realise the potential for further energy savings from buildings".

The Council held a public policy debate on the basis of a Presidency questionnaire which focused on two important aspects of EU energy policy - namely energy efficiency and the use of renewable energy sources.

At the end of the debate, the Presidency underlined the following ideas that emerged from the debate:

• There is a consensus that energy efficiency and renewable energies form a key component of energy policy - at both national and European level.

• Energy efficiency and cost-effective use of renewable energy sources enhance competitiveness and security of supply.

• There is a need to promote and facilitate investments in cost-effective energy efficiency measures. Governments and the financial sector should cooperate in developing innovative funding tools.

• There is wide agreement on the need to raise awareness, through education, training, demonstration, feedback on energy consumption, etc., and focusing on groups such as SMEs, public authorities, children, etc. This is mainly a task for national, regional and local authorities.

• As regards the use of renewable energy sources, delegations agreed that this should be increased, since the use of renewable energy sources reduces greenhouse gas emissions and the Community's dependence on external sources of energy.

• R&D programmes at all levels should contribute to the development of new and improved technology, with a view to making renewable energies competitive.

• The large-scale investment required in renewable energy needs a stable and predictable long-term regulatory framework. Policy makers should ensure this.

• On international cooperation on energy efficiency and renewable energy, a Community initiative for an international framework agreement was generally supported in principle, even though concerns and questions as to the precise content of such an initiative must be addressed.

A6-0347/2006

A6-0347/2006

PE374.166

PE374.239

PE374.020

PE378.547

PE372.059

PE376.309

2740

The Council welcomed the Commission Communication on a Biomass Action Plan and the Commission Communication on an EU Strategy for Biofuels. In its conclusions, the Council underlined that the use of biomass as an energy source should be increased. It is convinced that an increased use of biomass can contribute to the three main objectives of energy policy (enhancing security of supply, enhancing competitiveness and promoting environmental sustainability).

The Council underlines the following general principles with respect to the definition of a biomass policy: a) an integrated approach should be followed which takes account of sustainability, the impact on growth and jobs as well as environmental issues including biodiversity conservation and life cycle analysis as far as possible, in close cooperation with all relevant sectors including agriculture, forestry and waste management and addressing socio-economic, fiscal, trade and industrial policy questions; b) the principle of subsidiarity should be respected, giving flexibility to Member States to develop their own specific policy approach and determine individual goals; choose the type(s) of biomass and energy crops and the sectors in which biomass is used; decide on the instruments for the promotion of bioenergy and on the instruments to achieve cost-effectiveness; choose the tools for achieving the objectives of the Directive on electricity from renewable energy sources; c) cost-efficiency should be an important guiding principle, at national and at EU level, for an ecologically rational promotion of bioenergy, built upon an economically sustainable, long-term financial basis while maximising environmental benefits; d) a balance should be sought between energy uses of biomass, non-energy uses of biomass and nature conservation, taking also national economic circumstances into account; e) a balanced approach regarding domestic production and imports of biomass should be found; f) the impact of relevant existing legislation in the energy sector should be assessed before revising such legislation; this requirement should not be seen as an obstacle to new legislative proposals.

The following issues should be addressed as priority :

research, development and demonstration on biomass, regarding new and efficient technologies for generation and use of renewable fuels, including raw materials. This concerns in particular second-generation biofuels, bio-refineries, efficient boiler technologies, the impact of biomass fuel emissions on air pollution and market introduction aspects; promoting the creation of well functioning, transparent and open markets for biomass at regional, EU- and global level as appropriate, taking into account environmental sustainability; the removal of technical and non-technical (including administrative) barriers at EU and at national level; information campaigns targeted at farmers, forest owners, local authorities, the energy sector and consumers; increasing the use of biomass including waste for heating and cooling purposes, in particular for cogeneration and district heating; adoption of technical standards for biofuels, as well as a revision of the fuel quality Directive to allow higher blends of biofuels in petrol and diesel.

Member States are urged to :

link support to the achievement of high energy efficiency levels and tangible, costeffective benefits for the environment and security of supply; achieve the already established indicative national targets for biofuels; create a favourable regulatory environment for investments in biomass production and the appropriate equipment and provide medium- to long-term stability and transparency for investors, also with regard to appropriate support schemes if a Member State chooses to have such a scheme.

The Commission is invited to :

take account of the abovementioned priorities; initiate shortly a discussion about the sustainability of biomass - including by comparing different types of biomass - and to provide information about the compatibility of minimum sustainability standards for bioenergy with the Community acquis in relevant policy areas; provide information about all costs and benefits of the promotion of biomass production within the EU; bring forward proposals to encourage the cost-efficient and sustainable use of biomass for heating and cooling; establish efficiency and emission criteria for biomass installations, using inter alia the Eco-Design Directive, in particular for household biomass boilers; in its ongoing review of the waste framework legislation, facilitate and further encourage the use of biomass and clean waste as fuel; review the animal by-products legislation with a view to encouraging the use of farming and food processing by-products as a renewable energy source. Such encouragement should however take into account other worthwhile uses of waste and animal by-products, including traditional uses; revise the vehicle emission testing procedure in order to take into account the use of biofuels as reference fuels for testing biofuel-powered vehicles; simplify administrative procedures for the production and use of bio-energies in the context of the CAP and assess the extension of the application of the Energy Crops Scheme to all Member States; explore the issue of simple and cost-effective measures to guarantee that biofuels are produced in a sustainable way, inter alia certification, in respect of environmental, social and technical standards, and applying to internal production as well as imported biofuels.

Member States are called upon to develop or update National Biomass Action Plans in response to the present conclusions. The Commission, on the other hand, is called upon to carry out an assessment of the implementation of relevant Community legislation in the Member States and of the actions undertaken as follow-up to these conclusions, including in the light of their contribution to the achievement of the three main objectives of European energy policy, and report to the Council by the end of 2008.

PURPOSE: to present an EU strategy for the promotion of biofuels based on a series of legislative measures as well as stimulating research into the extraction of biofuels from agricultural sources.

CONTENT: this Commission Communication, which supports the “Biomass Action Plan” published in December 2005, sets out an EU Strategy for Biofuels. It has three specific aims. They are: a) the promotion of biofuels in the EU and developing countries; b) to prepare for the large-scale use of biofuels by improving their cost-competitiveness and through the optimised cultivation of dedicated feedstock through research into “second generation” biofuels; and c) to support developing countries who have the potential to harvest biofuels by stimulating long-term economic growth.

Processed from biomass, a renewable energy source, biofuels are a direct substitute for fossil fuels in transport and can readily be integrated into fuel supply systems. Biofuels can be sued as an alternative fuel for transport and thus help prepare the way for further advanced developments, such as hydrogen. The increasing use of biofuels offers a number of advantages, notably Europe’s reduced dependence on the import of fossil fuels, a reduction in green house gas emissions, agricultural rewards as well as economic opportunities for developing countries.

The EU Strategy on Biofuels centres on seven priority policy axes, that together, from a body of measures which the Commission will adopt in order to encourage the production and use of biofuels.

1) Stimulate the demand for biofuels : the European Commission will publish, in the course of 2006 a report on the possible revision of the Biofuels Directive. This report will, inter alia , address the issues of setting national targets for the market share of biofuels, using biofuel obligations and ensuring sustainable production. It will also encourage Member States to give favourable treatment to second-generation biofuels in biofuel obligations. The Commission will seek a speedy approval of its recently adopted legislative proposal to promote public procurement of clean and efficient vehicles.

2) Capturing environmental benefits: the European Commission will examine how biofuel use can count towards the CO2 emission reduction targets for car fleets. In addition, it will work towards the sustainability of biofuel feedstock cultivation in the EU and third countries as well as examine the issues of limits in the content of ethanol, ether and other oxygenates in petrol; limits of vapour content of petrol and limits on the biodiesel content of diesel.

3) Developing the production and distribution of biofuels: the Commission will encourage Member States and regions to take account of biofuels and other bio-energy options within the context of the EU’s Cohesion policy and Rural Development policy. In addition, the Commission proposes the setting up of a specific ad hoc group to consider biomass including biofuels opportunities within national rural development programmes. It will look into practices that act as barriers to the introduction of biofuels and monitor any that may lead to a discrimination against biofuels.

4) Expanding feedstock supplies: under this measure the Commission proposes including the production of sugar for biofuels as eligible for financial support under the CAP. Within this context the following measures will be applied: make sugar production for bioethanol eligible for both the non-food regime on set-aside land and the energy crop premium; assess the opportunities for additional processing cereals from existing intervention stock into biofuels; finance a campaign to inform farmers and forest holders about the properties of energy crops and the opportunities they offer; bring forward a Forestry Action Plan and review how animal by-products legislation could be amended to facilitate the authorisation and approval of alternative processes for the production of biofuels.

5) Enhancing trade opportunities: the Commission will consider whether or not to present a proposal for separate nomenclature codes for biofuels; maintain market access conditions for imported bioethanol that are not less favourable that those provided by the trade agreements currently in force; and pursue a balanced approach in ongoing and future trade negotiations with ethanol-producing countries and regions and propose amendments to the biodiesel standard.

6) Supporting developing countries : the Commission will ensure that measures under the Sugar Protocol affected by the sugar reform can be used to support the development of bioethanol production; it will also develop a “Biofuels Assistance Package” for those developing countries with the potential to produce biofuels; and it examine how the EU can best assist the development of national biofuel platforms that are both environmentally and economically sustainable.

7) Supporting research and development : within the framework of the EU’s 7 th research programme, the Commission will continue to offer support for the development of biofuels and the strengthening of a competitive biofuel industry. In other measures, it will give priority to research into the bio-refinery concept, continue to encourage an industry led “Bio-fuel technology platform” and support the implementation of the “Strategic Research Agenda” prepared by these technology platforms.

COM(2006)0034
EUR-Lex

SEC(2006)0142
EUR-Lex

PURPOSE: to present the Commission’s biomass action plan.

CONTENT: the Commission has prepared this report on biomass fuels within the context of a wider debate on the EU’s energy policies and its shift towards the use of renewable energy. The report reminds readers that in Spring 2006, the Commission will present a Green Paper on its Energy policy in which three key objectives will be outlined. They are, competitiveness, sustainability and the security of supply. The need to reduce energy demand combined with an increased reliance on renewable energy sources are key to meeting these three objectives. Biomass plays a vital role in all of this given that it presently accounts for about half of all EU renewable energy use.

According to this report, measures spelt out in the proposed action plan could lead to an increase in biomass use. Although less than its full potential the increase in use would be in line with indicative renewable energy targets. In numbers, the increase in biomass use could result by 2010 in the following benefits:

- diversification of Europe’s energy supply and an increase in the share of renewable energy by 5%. Such steps would effectively reduce current reliability on imported energy from 48 to 42%.

- A reduction in greenhouse gas emissions of 209 million tonnes CO2eq a year.

- Direct employment for up to 250-300 000 people, mostly in rural areas.

- Potential downward pressure on the oil price as a result of lower demand for oil.

- An extension of the EU’s technological leadership in these sectors.

In its conclusions the Commission notes that Europe needs to break its dependence on fossil fuels. Biomass is one of the main alternatives. As such, cost-effective measures need to be developed at a European level in order to draw a maximum advantage from national and local innovation, in order to provide a clear way forward for major European industries and in order to share the burdens equitably. This Communications sets out a co-ordinated programme for Community action, including measures to improve demand for biomass, improve energy supply, overcome technical barriers and to develop and encourage research initiatives. The next step is to put the action plan into practice. The forthcoming Green Paper on a coherent European energy policy will offer additional benefits in terms of progress and future developments.

COM(2005)0628
EUR-Lex

SEC(2005)1573
EUR-Lex

PURPOSE: to present the Commission’s biomass action plan.

CONTENT: the Commission has prepared this report on biomass fuels within the context of a wider debate on the EU’s energy policies and its shift towards the use of renewable energy. The report reminds readers that in Spring 2006, the Commission will present a Green Paper on its Energy policy in which three key objectives will be outlined. They are, competitiveness, sustainability and the security of supply. The need to reduce energy demand combined with an increased reliance on renewable energy sources are key to meeting these three objectives. Biomass plays a vital role in all of this given that it presently accounts for about half of all EU renewable energy use.

According to this report, measures spelt out in the proposed action plan could lead to an increase in biomass use. Although less than its full potential the increase in use would be in line with indicative renewable energy targets. In numbers, the increase in biomass use could result by 2010 in the following benefits:

- diversification of Europe’s energy supply and an increase in the share of renewable energy by 5%. Such steps would effectively reduce current reliability on imported energy from 48 to 42%.

- A reduction in greenhouse gas emissions of 209 million tonnes CO2eq a year.

- Direct employment for up to 250-300 000 people, mostly in rural areas.

- Potential downward pressure on the oil price as a result of lower demand for oil.

- An extension of the EU’s technological leadership in these sectors.

In its conclusions the Commission notes that Europe needs to break its dependence on fossil fuels. Biomass is one of the main alternatives. As such, cost-effective measures need to be developed at a European level in order to draw a maximum advantage from national and local innovation, in order to provide a clear way forward for major European industries and in order to share the burdens equitably. This Communications sets out a co-ordinated programme for Community action, including measures to improve demand for biomass, improve energy supply, overcome technical barriers and to develop and encourage research initiatives. The next step is to put the action plan into practice. The forthcoming Green Paper on a coherent European energy policy will offer additional benefits in terms of progress and future developments.

COM(2005)0628
EUR-Lex