Measures for the promotion of biodiesel
PREMIA (June 2004 – May 2007) is a project funded by the European Commission through the Sixth Framework Programme. PREMIA aims at supporting the European Commission’s ongoing work on alternative fuels. It provides input into the revision of the Biofuels Directive and discusses a long-term, cost effective policy framework to support the market transition from conventional to alternative fuels for road transport.
The assessment of measures and market conditions related to biofuels introduction in various European Member States is a key element of PREMIA. The project analysed the production and consumption of biofuels, price evolutions (both for fossil and biofuels), feedstock production and the active policy measures and market conditions in different member states, as the experiences gained are considered valuable for the future deployment of biofuels all over Europe.
In order to obtain the right mix of policy instruments for a wide market introduction for biofuels, PREMIA looked at the assessment of past policies and at the following questions:
What is the state of technology and should there be special support for some technologies?;
How far developed is the EU biofuel market?;
What are the key drivers for biofuel support and how to achieve them?;
What are the conditions that influence a member state’s potential and interest in producing and consuming biofuels?
To answer these questions, PREMIA then grouped countries based on their economic strength, energy situation and natural suitability of growing bioenergy crops as well as the importance of the agricultural sector for the economy. In addition, possible future policy options were assessed on the basis of a number of scenarios for 2010 and 2020. These scenarios estimate the level of biofuel penetration for different levels of fossil fuel prices and different policy options, taking into account the impacts of biofuel production on the energy and agricultural markets (e.g. through increasing feedstock prices).