EU legislation directly influences the competitiveness of bioenergy compared to other fossil alternatives.
In 2012, AEBIOM’s Working Group Economic Competitiveness had followed closely the revision of the Energy Taxation Directive (2003/96/EC) which aimed at introducing an EU-wide CO2 tax. The WG had published a position paper reflecting the sectors views (available: AEBIOM position paper on energy taxation).
Unfortunately, negotiations have failed and it is up to Member States to decide if they want to introduce a national CO2 tax.
In 2016, surfing on the low fossil fuel prices wave, AEBIOM reactivated this Working Group to exchange on how to establish national carbon taxes and support its members in the promotion of such an important competitiveness tool for bioenergy.
In fact, even if costs are gradually brought down, it is critically difficult for bioenergy to become competitive in markets where fossil fuels are still heavily subsidised and their negative externalities for the society not priced.
Public subsidies are also an important element to support bioenergy development.
In 2014, the European Commission published its Guidelines on State aid for environmental protection and energy 2014-2020, where a market-based auctioning system is promoted for state aid granted to renewable energy installations.
In 2018, the European Commission will start working on the post-2020 state aid guidelines. AEBIOM plans to be active in representing the sector’s view towards EU policy-makers. This WG will exchange and discuss the future of state aid for bioenergy with the objective to come with a common position that AEBIOM will defend in its advocacy activities.
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