I. Brief presentation of Copa & Cogeca. Basic understandings of agricultural economy. III. Roles played by biofuels in agricultural economy
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1 BI(16)8491 Implementation of the iluc Dir.: challenges and opportunities The views of European farmers and agri-cooperatives REFUREC Meeting, Brussels, 12 th October 2016
2 Content I. Brief presentation of Copa & Cogeca II. Basic understandings of agricultural economy III. Roles played by biofuels in agricultural economy IV. ILUC factors V. Directive (EU) 2015/1513: recommendations for its implementation VI. RED II post 2020: Copa &Cogeca positions 2
3 I. Who are Copa and Cogeca? Two organisations Copa Created in 1958, Copa represents 23 million European farmers and family members Cogeca Created in 1959, Cogeca represents 22,000 European agricultural cooperatives Copa and Cogeca In 1962, a joint Secretariat was created, making Copa-Cogeca one of the largest and most active lobby organisations in Brussels 3
4 I. What Copa and Cogeca do? Mission To ensure a viable, innovative and competitive EU agricultural and agri-food sector, capable of meeting growing food demand How? By promoting the views of European farmers and agricooperatives, to influence EU decision-makers, the media and public opinion 4
5 II. Successive CAP reviews 5
6 II. Farmers face various challenges The CAP is much more market oriented The CAP is more green (greening includes the obligation of crop diversification) The CAP intervention measures are limited to safety net Farmers are exposed to greater market volatility and this is expected to continue in the future EU protein deficit The EU sugar quota regime will expire in 2017 Production costs are increasing EU agriculture faces increasing competition on the domestic and the world markets Farm incomes are low compared to other sectors in the economy 6
7 EU-28 biofuel consumption Stable around 14 Kte Biodiesel more than 2/3 of the EU biofuel sector 7
8 8 The competition between food and EU sustainable Biofuels is a misconception
9 III. What roles do sustainable conventional biofuels play? Sustainable Conventional biofuels makes it easier to manage agricultural commodity markets. It is also in the interest of consumers to have stable prices for foodstuffs. Sustainable Conventional biofuels are part of the bioeconomy and green growth. This helps to diversify crops, to find alternative revenue sources, to use ressources more efficently and to better manage the environment. Sustainable Conventional biofuels alleviate the EU s plant protein deficit. They play a role in narrowing the EU s trade balance and food security for European citizens. 9
10 EU BIODIESEL Expansion starts in 2003, stagnation since ,00 12,00 10,00 8,00 6,00 4,00 2,00 0,00-2,00 UE Biodiesel - production - Consum (MioT) Biodiesel prod import HVO After a rapid expansion biodiesel stagnates since 2010 Rapeseed oil = 60-70% of feedstock of FAME biodiesel 10
11 EU Rapeseed - 7 million ha 20 Million tonnes Rapeseed area (000Ha) million tonnes rapeseed oil used in FAME biodiesel Source: DG AGRI 000 Ha 11
12 1 tonne rapeseed = 600 kg meal kg rapeseed oil. 12
13 EU sustainable biofuels from cereals Million tonnes & % of the EU total cereals availability million ton 12 10, % 10 9,1 9,5 8 7, ,2 2,6 2,8 3 2,8 2,8 3 0 Source: DG AGRI balance sheets Agenda title Title of presentation Name tt.mm.yyyy 13
14 EU sustainable biofuels from sugar beet Million tonnes & % of the EU total sugar+isoglucose availability million ton ,5 5,8 4,1 5,9 7,25 5,2 6,6 4,5 % ,24 1,35 0,9 1,47 1,5 1,28 1,74 1,03 0 Source: DG AGRI balance sheets 14
15 Bioethanol beet area between The bioethanol beet area has more than doubled since 2006 Ethanol beet area = 10 to 15 % of the total EU sugar beet area 15
16 1 litre of bioethanol produced in the EU = 1 to 1.2 kg of by-products for animal feed 16
17 EU sustainable biofuels play a role in narrowing the protein-rich by-products trade balance The EU imports 70% of the plant protein it needs, mainly soya and other meals for animal feed from South America The value of these imports stands at around 12 billion The emergence of new clients, particularly China, for suppliers in South America,, could destabilise the EU s supply markets in the long term. 17
18 IV. ILUC factors lack of transparency /major uncertainties /no international scientific consensus on the models 18
19 V. Directive (EU) 2015/ Copa-Cogeca s recommendations CAP 7% cap in the RED Directive, not less than 7% Energy crops must not be included in the cap in practice No cap in the revised FQD directive Keep FQD technologicaly neutral ILUC Reporting obligations: no optional clause applied to Member States Advanced Biofuels Copa & Cogeca support the implementation of the reference target of 0,5% which is not legally binding by all Member States as advanced biofuels must be developed commercially in parallel to sustainable conventional biofuels 19
20 VI. RED II post 2020 Copa&Cogeca s positions The Commission proposes to phase-out the EU support to conventional biofuels after 2020 (COM(2016)501 final) Copa & Cogeca disagree with this policy line Both types of biofuels are crucial in the future to achieve a low carbon economy, to comply with the Paris agreement and to balance the agricultural economy Copa & Cogeca support the EU biofuel production based on European/domestic feedstocks Indeed, European farmers must not be penalized for deforestation and conversion of land in third countries. This is a problem they are unable to tackle The EU must encourage the introduction of effective environmental legislation in third countries in order to prevent land use changes 20
21 Merci de Thank you 21
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