EU biofuels support package published

Commission issues formal proposals for national targets, rules allowing fiscal incentives

The European Commission unveiled another plank in its strategy to combat climate change yesterday, in two legislative proposals to boost EU production and use of agriculturally-derived biofuels as alternatives to petrol and diesel. The measures would oblige member states to set minimum market shares for biofuels and allow them to introduce tax breaks to help achieve this.

Differing little from a draft version that emerged this summer (EED 20/08/01), the Commission's initiative follows failure of an earlier EU attempt to support biofuels in 1992. More recently, a French drive to boost national production also fell foul of EU rules (EED 29/11/00).

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