Europe s energy chief took legal action against Italy and Greece on Wednesday over their failure to comply with EU rules that aim to boost demand for biofuels over the next few years. Both countries earned a "reasoned opinion" from the European Commission, the last step before they face a lawsuit at the European Court of Justice, for not sending a report on national biofuel use that was due in Brussels on July 1, 2005.

Italy also incurred the Commission s wrath for failing to give proper reasons for setting a biofuel target that was considerably below the reference value for 2005, amounting to 2 percent of petrol and diesel, laid down by the EUs biofuels directive. Biofuels, which are made from biomass -- organic matter such as wood, waste material and agricultural crops like cereals and sugar beet -- are used to power vehicles and are widely seen in the EU as a way to reduce emitted gases that heat the earth.

The EU has set non-binding targets of a 5.75 percent share for biofuels in the bloc s petrol and diesel by 2010 -- a goal that looks set to be missed. Market share was only 0.6 percent in 2003 and was below 1.0 percent in 2004, the Commission said. For 2005, the Commission fixed the reference value of 2 percent but EU governments were allowed to set their own indicative targets below this level, provided they explained why.

"I would like to urge Italy and Greece to quickly fulfil their obligations under the directive," EU Energy Commissioner Andris Piebalgs said in a statement, adding that the Commission would review the EU biofuels directive later this year. "I would also like to take this opportunity to remind member states that this year s report is due on 1 July 2006," he said.
(Planet Ark, 29/06/2006)