Bio-energy in Europe 2005: Policy trends and issues

This report analyses current European trends in bio-energy policies as they relate to electricity and heat production. The first part of the report analyses the effects of seven EU directives on bio-energy projects. The second part of the reports analyses the German situation with regard to bio-energy. The report concludes that:

1. Bio-energy policy gives rise to policy competition among Member States, which would have a negative impact on the cost-efficiency of bio-energy policy. Member States should therefore coordinate their bio-energy support regimes. It is not necessary to introduce a uniform system of supports through-out the EU, but it is necessary to avoid wasting subsidies.
2. Shifting biogenic waste from landfill to energy production, in particular, is a means of substantially increasing bio-energy production in Europe. This is even more important because it can potentially reduce European CO2-eq. emissions by 200-300 Mt per year. Landfill bans or substantial landfill taxes have proved to work well in many European countries in pursuit of this aim.
3. Member States should carefully consider bio-energy and bio-fuel goals in combination. This is a potential area of policy competition that may lead to wastage of subsidies and reduce the cost efficiency of both policies.