According to ENDS, the European Union (EU) Member States are divided on how to address the impact of indirect land use change (ILUC) when calculating emissions from biofuels, according to responses to a pre-consultation exercise on the issue by the European Commission published last week. They have different opinions on whether to include an ILUC factor in the calculation of greenhouse gas emissions from biofuels specified in the EU Renewable Energy Directive. This is one of seven policy options proposed by the commission. Non-EU countries also took part in the pre-consultation, including Brazil.

Including ILUC in the Directive is strongly favoured by the UK, Denmark and the Netherlands. (Several MEPs also wanted to integrate ILUC impacts in the calculation during the parliamentary debate on the renewable energy directive.) But other countries including France, Germany, Spain and Poland oppose this, arguing there is insufficient scientific evidence on the ILUC impacts of different types of biofuels. This view is supported by Brazil, a major exporter of ethanol produced from sugarcane.

Many countries favor other options outlined by the commission, primarily the use of international agreements to protect carbon-rich habitats from ILUC impacts. This approach is backed by trade association EBB, along with a proposal to give more recognition to biofuels produced on idle land or from non-land sources such as algae. But most countries support an option to extend possible ILUC restrictions on biofuels used in the EU to non-EU countries and other agricultural commodities. The findings will be used by the Commission to draft a formal consultation document later this year.

The Commission has pledged to finalize its proposals on ILUC impacts by March 2010 – nine months ahead of the deadline set in the renewable energy directive. This is to enable member states to take ILUC impacts into account in their renewable energy action plans, which must be adopted in June next year