European margarine, paper, wood, furniture and some chemical industries urged the European Union on Tuesday not to adopt a plan to introduce binding targets for renewable energy and biofuels. The industries are concerned about the potential impact "of current shortages and price increases of their raw material, as a result of the European Commission's narrow focus on targets for renewable energies," they said in a joint statement.

EU leaders are meeting on Thursday and Friday to discuss the bloc's climate change policy, including a proposal to oblige the 27 member countries to raise the share of renewable energy to 20 percent by 2020. The European Commission, the EU executive, has also proposed a binding target for biofuels -- made from sugars, grains and vegetable oils -- to make up 10 percent of total vehicle fuel by 2020.

"Binding targets can lead to disproportionate subsidies, distort access conditions to raw materials, and take away level playing fields," the joint statement from the industries said. A worldwide rush to promote renewable energy and biofuels derived from biomass and crops have led to sharp increases in prices of grains and vegetable oils, creating a conflict with traditional users such as food industries.

The European industries, using agricultural and forestry raw materials, said their future was endangered by the EU's proposal for binding renewable targets. The industries said they should be closely involved in setting the EU's renewable energy policy and national biomass action plans to avoid conflicts over raw materials. They called on the EU to create incentives to mobilise existing biomass resources, develop new ones and increase biomass production from sustainably managed sources.

They also urged Brussels to stimulate technologies that would allow biofuels to be produced from non-food materials, such as agriculture and wood waste. The EU currently has a voluntary goal to increase renewable energy to 12 percent of the total energy mix by 2010 and a 5.75 percent target for biofuels, but they are likely to be missed. The European Commission, with strong support from Germany, says non-binding targets do not work. But France, keen to promote its nuclear industry, and several central European states object to a compulsory target.

Europe's margarine association, the Confederation of European Paper Industries and the European Confederation of Woodworking Industries were among the groups that signed the statement.
(Planet Ark,07/03/2007)