The growing use of biofuels, the measures to be taken in favour of the completion of the internal energy market as well as the industrial innovation policy of the European Union were on the agenda of the session of the Energy Council held in Luxembourg on June 7, 2013.

The session adopted a progress report on directive amendments fostering the use of innovative biofuels causing no indirect land use change and significantly restricting the application of first generation biofuels. In compliance with an earlier commitment, EU states must guarantee that at least 10 per cent of the ultimate energy consumption in the transport sector should come from renewable energy sources by 2020. Since the second and third generations of biofuel, currently still in the development phase, are not yet marketable, they are not expected to be at users’ disposal in industrial quantities by the end of this decade yet. Their application is necessary at the same time, while technological realities must be appreciated when the targets on their use are set. Thus, in accordance with the stance negotiated with industry and agricultural players, the Hungarian delegation did not support maximising the share of first generation biofuels within the above 10 percent target to 5 percent.

Deputy State Secretary for Green Economy Development, Climate Policy and Key Public Services Attila Imre Horváth renewed his proposal to work out EU programmes to provide financial assistance for the development of second generation technologies with high R&D costs and for the establishment of plants. The Deputy State Secretary also urged further scientific research to set the grounds for finalising the draft legislation. The goal of the initiative is to enable the analysis of feedstock use and the impacts of biofuel production, with the help of data collection examining potential land use change, in all areas affected (food and catering, foraging and environment protection).

The representatives of Member States adopted conclusions on the Commission communication on making the internal energy market work. In the Communication, Member States reinforced their commitment to the completion of the internal energy market. They set the directions of the measures to be accomplished in order to achieve the targets for 2014 and 2015 and to improve consumer rights and roles. The adopted conclusions are the result of long discussions and reflect a realistic compromise that is in accordance with the interests of Hungary.

The Energy Council held a policy debate on the Commission communication on energy technologies and innovation. According to this document, the related European strategy must accelerate the development of low carbon-dioxide emission technologies and new solutions.

In order to facilitate Europe’s industrial competitiveness, the energy technology and innovation policy of the EU must implement the speedy reduction of costs and the acceleration of the market access of new, sustainable technologies. Based on the schedule planned by the European Commission, the EC is to design an Integrated Itinerary by the end of this year for the attainment of these goals. This is to be followed by mid 2014 by defining, in collaboration with Member States an Action Plan to include both national and community investments.

The Hungarian delegation supported the basic principles and the idea of designing the plan documents, while they found that the deadlines were too early. Head of the delegation Attila Imre Horváth underlined that determining the energy mix was within national competence, and thus the coordination mechanism to be worked out must guarantee implementation in accordance with the subsidiarity principle. He emphasised at the same time that, during implementation, special attention must be paid to guarantee that the monitoring of energy technologies and innovation should not involve extra administrative burden for Member States.

At the Energy Council session, a briefing was held on the international energy relations of the European Union as well as on the work programme of the Lithuanian presidency in the second half of this year.

(Ministry of National Development)