Identifier
Created
Classification
Origin
07USEUBRUSSELS3268
2007-10-31 14:05:00
UNCLASSIFIED
USEU Brussels
Cable title:
USITC INFO REQUEST ON BIO-BASED CHEMICAL PRODUCTS
how-toVZCZCXYZ0001 RR RUEHWEB DE RUEHBS #3268/01 3041405 ZNR UUUUU ZZH R 311405Z OCT 07 FM USEU BRUSSELS TO RUEHC/SECSTATE WASHDC INFO RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE RUCNMEU/EU INTEREST COLLECTIVE RUCNMEM/EU MEMBER STATES COLLECTIVE
UNCLAS USEU BRUSSELS 003268
SIPDIS
SIPDIS
STATE PASS FOR USITC
USITC FOR L.M. SCHLITT
E.O. 12958: N/A
TAGS: ECON ENRG ETRD EU
SUBJECT: USITC INFO REQUEST ON BIO-BASED CHEMICAL PRODUCTS
AND LIQUID BIOFUELS
REF: STATE 133131
UNCLAS USEU BRUSSELS 003268
SIPDIS
SIPDIS
STATE PASS FOR USITC
USITC FOR L.M. SCHLITT
E.O. 12958: N/A
TAGS: ECON ENRG ETRD EU
SUBJECT: USITC INFO REQUEST ON BIO-BASED CHEMICAL PRODUCTS
AND LIQUID BIOFUELS
REF: STATE 133131
1. Summary. In response to reftel USITC request, Post
submits the following overview of activities related to
bio-based chemicals and liquid biofuels. The European Union
has a broad array of programs and organizations dealing with
the development and adoption of bio-based chemical products
and liquid biofuels. The EU is actively supporting the use
of biofuels and has set a voluntary target of 5.75 percent
biofuels use for transport by 2010. In March 2007, EU
leaders agreed to a 10 percent level of biofuels use in the
fuel supply by 2020. The EU Common Agricultural Policy
supports biofuel crop production, including a "Carbon Credit"
which gives EU farmers 45 EUR per hectare of fuel crops they
cultivate. EU trade policy does include barriers to imports
of bio-deisel and ethanol. However, because the EU is the
largest producer of bio-diesel and many ethanol exporters
benefit from preferential trade agreements, the overall trade
impact is minimal. The EU is also actively encouraging
research in biofuels and biotechnology. Under the EU
Commission's Sixth Framework Programme the EU is currently
funding a number of biofuel and biomass related projects. The
Seventh Framework Programme defines the research activities
the EU will pursue from 2007-2013 and includes funding for
research on biofuels and biotechnology.
EU BIOFUELS POLICY
--------------
2. The EU has a voluntary target of 5.75 percent biofuels
use for transport by 2010. So far, none of the member states
are close to reaching this goal. In March 2007, EU leaders
agreed to a 10 percent level of biofuels use in the fuel
supply by 2020. The European Commission is now in the
process of drafting the directive that would implement that
decision and it is scheduled to be delivered to the European
Council and Parliament in January 2008. There is also a fuel
quality directive making its way through the Parliament at
the moment which has biofuels provisions, including ones on
sustainability.
EU communication establishing 5.75 target:
http://ec.europa.eu/agriculture/biomass/biofu el/
com2006 34 en.pdf
EU AGRICULTURAL POLICY
--------------
3. The EU Common Agricultural Policy (CAP) supports bio-fuel
crop production. Fuel crops are exempt from set-aside
requirements and, since 2003, generate incentive payments for
farmers. The 2003 CAP reform introduced the "Carbon Credit"
which gives EU farmers 45 EUR per hectare of fuel crops they
cultivate. With approximately 2.84 million hectares now in
production, the EU has actually had to cut back on the amount
they give farmers as the goal of 2 million hectares has been
surpassed.
EU Commission's "Report from the Commission to the Council on
the review of the energy crops scheme":
http://ec.europa.eu/agriculture/biomass/biofu el/
com2006 500 en.pdf
4. The U.S. Department of Agriculture's Foreign Agricultural
Service Office at the U.S. Mission to the EU is the lead
agency on agricultural policy and biofuels. They produce
numerous reports all of which are published on the Global
Agricultural Information Network (GAIN).
Highlights from this year's GAIN reports include:
"EU Commission Publishes Assessment of 10 Percent Bio-Fuel
Obligation, 2007"
http://www.fas.usda.gov/gainfiles/200708/1462 91987.pdf
"EU Biofuels Annual, 2007"
http://www.fas.usda.gov/gainfiles/200707/1462 91616.pdf
"EU Agriculture Council Backs Changes in Sugar Restructuring
Scheme, 2007"
http://www.fas.usda.gov/gainfiles/200709/1462 554.pdf
"EU-27 Oilseeds and Products Annual, 2007
http://www.fas.usda.gov/gainfiles/200706/1462 91409.pdf
"EU-27 Sugar Annual, 2007"
http://www.fas.usda.gov/gainfiles/2007
"EU-27 Annual Biotechnology Report, 2007"
http://www.fas.usda.gov/gainfiles/200706/1462 91311.pdf
EU TRADE POLICIES
--------------
5. Currently, there are no specific customs classifications
for biofuels Bio-diesel imported to the EU is subject to an
ad valorem duty of 6.5 percent. However, because the EU is
the world's largest producer of bio-diesel, the trade impacts
of this duty are minimal. Bio-ethanol is treated under code
2207, which applies to both denatured and undenatured
alcohol. Under this code, import duties of 19.2 EUR/hl for
undenatured alcohol and 10.2 EUR/hl for denatured alcohol are
applied. Much of the ethanol imported, however, comes from
countries that have preferential trade agreements which can
significantly reduce if not eliminate these tariffs.
Furthermore, the EU is currently considering instituting
separate nomenclature codes for biofuels that would allow for
better tracking of imports and use specific tariffs.
More information about the EU's trade policies with regards
to biofuels can be found in the EU Commission's 2006
Communication: "An EU Strategy for Biofuels."
http://ec.europa.eu/energy/res/biomass action plan/doc/
2006 02 08 comm eu strategy en.pdf
RESEARCHQTHE SIXTH FRAMEWORK PROGRAMME
--------------
6. The EU is also actively encouraging research in biofuels
and biotechnology. Under the European Commission's Sixth
Framework Programme (FP6),the belQprojects fall under the
USITC request. This list is representative, but not
necessarily exhaustive of the projects included under FP6,
-- Pre-normative research on solid biofuels for improved
European standards. Website:
http://cordis.europa.eu/fetch?CALLER=FP6 PROJ&ACTION=D&
DOC=6&CAT=PROJ&QUERY=11921068106389&RCN=81405
-- Biofuels Technology Platform Secretariat. Website:
http://cordis.europa.eu/fetch?CALLER=FP6 PROJ&ACTION=D&
DOC=10&CAT=PROJ&QUERY=1192106810639&RCN=73983
-- New Burner Technologies for Low Grade Biofuels to Supply
Clean Energy for Processes in Biorefineries. Website:
http://cordis.europa.eu/fetch?CALLER=FP6 PROJ&ACTION=D&
DOC=11&CAT=PROJ&QUERY=1192106810639&RCN=73984
-- Increased renewable energy recovery from biomass by highly
efficient disruption process. Website:
http://cordis.europa.eu/fetch?CALLER=FP6 PROJ&ACTION=D&
DOC=5&CAT=PROJ&QUERY=1192106810639&RCN=81636
RESEARCH - THE SEVENTH FRAMEWORK PROGRAMME
--------------
7. The European Commission's Seventh Framework Programme
(FP7) defines the research activities the European Union will
pursue from 2007-2013. FP7 earmarks EUR 2.35 billion for
energy research covering a broad range of technologies,
including renewable fuel production. The renewable fuel
activity is subdivided into seven areas: first generation
biofuel from biomass; second generation fuel from biomass;
biorefinery; biofuels from energy crops; alternative routes
to renewable fuel production; biofuel use in transport; and
cross-cutting issues.
More information on the renewable fuel production activity
can be found at:
http://cordis.europa.eu/fp7/energy/about3 en.html
8. FP7 also dedicates EUR 1.9 billion for research on "Food,
Agriculture and Fisheries, and Biotechnology." The
biotechnology portion will focus on:
-- Improvement of raw materials and biomass: research for
improved crops, forest products, feed-stocks, marine products
and biomass for energy, the environment and high yield
products.
-- Bioprocesses and products based on renewables: novel
farming systems, bio-process and biorefinery concepts, and
bio-catalysis; new and improved micro-organisms and enzymes;
and forestry and forest-based products and processes.
-- Environmental biotechnology: utilization of
agro-industrial wastes and byproducts, environmental
bio-remediation and cleaner bioprocessing.
The FP7 home page is available at:
http://ec.europa.eu/research/fp7/index en.cfm
More information on biotechnology related issues in FP7 can
be found at: http://cordis.europa.eu/fp7/kbbe/home en.html
ADDITIONAL RESEARCH/REPORTS
--------------
9. Additional academic research, industry reports, and
government publications on EU policies relating to the
development and adoption of bio-based chemical products and
liquid biofuels published since 2004 include:
-- Council of Ministers endorsed the EU Life Science and
Biotechnology Strategy, May 21, 2007. Available at:
www.consilium.europa.eu/ueDocs/cms Data/docs/pressData/en/
intm/94184.pdf
-- EuropaBio (The European Association for Bioindustries) web
page on the Mid Term Review of the EU's Life Science and
Biotechnology Strategy. Website:
www.europabio.org/eu strategy.htm
-- Energy Charter Secretariat "Driving Without Petroleum? A
Comparative Guide to Biofuels, Gas-to-Liquids and
Coal-to-Liquids as Fuels for Transportation." Available at:
http://www.encharter.org/index.php?id=229
-- European Commission Joint Research Centre "Consequences,
Opportunities and Challenges of Modern Biotechnology in
Europe," 2007. Available at:
http://bio4eu.jrc.es/documents/
Bio4EUsynthesisreportEUR22728EN.pdf
LEADING FIRMS AND ORGANIZATIONS
--------------
10. A number of firms and organizations throughout the EU are
active in the fields of bio-based chemical products and
liquid biofuels. Below is a representative list of firms and
organizations with a broad European or EU-wide focus:
European Commission, Directorate General for Energy and
Transport (DG-TREN)
website:
http://ec.europa.eu/dgs/energy transport/index en.thml
EU Biofuels Technology Platform
website: http://www.biofuelstp.eu
EuropaBio (The European Association for Bioindustries)
website: http://www.europabio.org
BioFuels Europe Ltd.
website: http://www.biofuels-europe.com
USEU POC
--------------
11. USEU/ECON contacts for further USTIC information
requests are Richard Frost (biofuels),FrostR@state.gov,
32-2-508-2018 and Rob Dollinger (biotech and bio-research),
DollingerRA@state.gov, 32-2-508-2637. USEU/FAS contact for
further USTIC information requests is: David Leishman,
david.leishman@fas.usda.gov, 32-2-508-2760
Gray
.
SIPDIS
SIPDIS
STATE PASS FOR USITC
USITC FOR L.M. SCHLITT
E.O. 12958: N/A
TAGS: ECON ENRG ETRD EU
SUBJECT: USITC INFO REQUEST ON BIO-BASED CHEMICAL PRODUCTS
AND LIQUID BIOFUELS
REF: STATE 133131
1. Summary. In response to reftel USITC request, Post
submits the following overview of activities related to
bio-based chemicals and liquid biofuels. The European Union
has a broad array of programs and organizations dealing with
the development and adoption of bio-based chemical products
and liquid biofuels. The EU is actively supporting the use
of biofuels and has set a voluntary target of 5.75 percent
biofuels use for transport by 2010. In March 2007, EU
leaders agreed to a 10 percent level of biofuels use in the
fuel supply by 2020. The EU Common Agricultural Policy
supports biofuel crop production, including a "Carbon Credit"
which gives EU farmers 45 EUR per hectare of fuel crops they
cultivate. EU trade policy does include barriers to imports
of bio-deisel and ethanol. However, because the EU is the
largest producer of bio-diesel and many ethanol exporters
benefit from preferential trade agreements, the overall trade
impact is minimal. The EU is also actively encouraging
research in biofuels and biotechnology. Under the EU
Commission's Sixth Framework Programme the EU is currently
funding a number of biofuel and biomass related projects. The
Seventh Framework Programme defines the research activities
the EU will pursue from 2007-2013 and includes funding for
research on biofuels and biotechnology.
EU BIOFUELS POLICY
--------------
2. The EU has a voluntary target of 5.75 percent biofuels
use for transport by 2010. So far, none of the member states
are close to reaching this goal. In March 2007, EU leaders
agreed to a 10 percent level of biofuels use in the fuel
supply by 2020. The European Commission is now in the
process of drafting the directive that would implement that
decision and it is scheduled to be delivered to the European
Council and Parliament in January 2008. There is also a fuel
quality directive making its way through the Parliament at
the moment which has biofuels provisions, including ones on
sustainability.
EU communication establishing 5.75 target:
http://ec.europa.eu/agriculture/biomass/biofu el/
com2006 34 en.pdf
EU AGRICULTURAL POLICY
--------------
3. The EU Common Agricultural Policy (CAP) supports bio-fuel
crop production. Fuel crops are exempt from set-aside
requirements and, since 2003, generate incentive payments for
farmers. The 2003 CAP reform introduced the "Carbon Credit"
which gives EU farmers 45 EUR per hectare of fuel crops they
cultivate. With approximately 2.84 million hectares now in
production, the EU has actually had to cut back on the amount
they give farmers as the goal of 2 million hectares has been
surpassed.
EU Commission's "Report from the Commission to the Council on
the review of the energy crops scheme":
http://ec.europa.eu/agriculture/biomass/biofu el/
com2006 500 en.pdf
4. The U.S. Department of Agriculture's Foreign Agricultural
Service Office at the U.S. Mission to the EU is the lead
agency on agricultural policy and biofuels. They produce
numerous reports all of which are published on the Global
Agricultural Information Network (GAIN).
Highlights from this year's GAIN reports include:
"EU Commission Publishes Assessment of 10 Percent Bio-Fuel
Obligation, 2007"
http://www.fas.usda.gov/gainfiles/200708/1462 91987.pdf
"EU Biofuels Annual, 2007"
http://www.fas.usda.gov/gainfiles/200707/1462 91616.pdf
"EU Agriculture Council Backs Changes in Sugar Restructuring
Scheme, 2007"
http://www.fas.usda.gov/gainfiles/200709/1462 554.pdf
"EU-27 Oilseeds and Products Annual, 2007
http://www.fas.usda.gov/gainfiles/200706/1462 91409.pdf
"EU-27 Sugar Annual, 2007"
http://www.fas.usda.gov/gainfiles/2007
"EU-27 Annual Biotechnology Report, 2007"
http://www.fas.usda.gov/gainfiles/200706/1462 91311.pdf
EU TRADE POLICIES
--------------
5. Currently, there are no specific customs classifications
for biofuels Bio-diesel imported to the EU is subject to an
ad valorem duty of 6.5 percent. However, because the EU is
the world's largest producer of bio-diesel, the trade impacts
of this duty are minimal. Bio-ethanol is treated under code
2207, which applies to both denatured and undenatured
alcohol. Under this code, import duties of 19.2 EUR/hl for
undenatured alcohol and 10.2 EUR/hl for denatured alcohol are
applied. Much of the ethanol imported, however, comes from
countries that have preferential trade agreements which can
significantly reduce if not eliminate these tariffs.
Furthermore, the EU is currently considering instituting
separate nomenclature codes for biofuels that would allow for
better tracking of imports and use specific tariffs.
More information about the EU's trade policies with regards
to biofuels can be found in the EU Commission's 2006
Communication: "An EU Strategy for Biofuels."
http://ec.europa.eu/energy/res/biomass action plan/doc/
2006 02 08 comm eu strategy en.pdf
RESEARCHQTHE SIXTH FRAMEWORK PROGRAMME
--------------
6. The EU is also actively encouraging research in biofuels
and biotechnology. Under the European Commission's Sixth
Framework Programme (FP6),the belQprojects fall under the
USITC request. This list is representative, but not
necessarily exhaustive of the projects included under FP6,
-- Pre-normative research on solid biofuels for improved
European standards. Website:
http://cordis.europa.eu/fetch?CALLER=FP6 PROJ&ACTION=D&
DOC=6&CAT=PROJ&QUERY=11921068106389&RCN=81405
-- Biofuels Technology Platform Secretariat. Website:
http://cordis.europa.eu/fetch?CALLER=FP6 PROJ&ACTION=D&
DOC=10&CAT=PROJ&QUERY=1192106810639&RCN=73983
-- New Burner Technologies for Low Grade Biofuels to Supply
Clean Energy for Processes in Biorefineries. Website:
http://cordis.europa.eu/fetch?CALLER=FP6 PROJ&ACTION=D&
DOC=11&CAT=PROJ&QUERY=1192106810639&RCN=73984
-- Increased renewable energy recovery from biomass by highly
efficient disruption process. Website:
http://cordis.europa.eu/fetch?CALLER=FP6 PROJ&ACTION=D&
DOC=5&CAT=PROJ&QUERY=1192106810639&RCN=81636
RESEARCH - THE SEVENTH FRAMEWORK PROGRAMME
--------------
7. The European Commission's Seventh Framework Programme
(FP7) defines the research activities the European Union will
pursue from 2007-2013. FP7 earmarks EUR 2.35 billion for
energy research covering a broad range of technologies,
including renewable fuel production. The renewable fuel
activity is subdivided into seven areas: first generation
biofuel from biomass; second generation fuel from biomass;
biorefinery; biofuels from energy crops; alternative routes
to renewable fuel production; biofuel use in transport; and
cross-cutting issues.
More information on the renewable fuel production activity
can be found at:
http://cordis.europa.eu/fp7/energy/about3 en.html
8. FP7 also dedicates EUR 1.9 billion for research on "Food,
Agriculture and Fisheries, and Biotechnology." The
biotechnology portion will focus on:
-- Improvement of raw materials and biomass: research for
improved crops, forest products, feed-stocks, marine products
and biomass for energy, the environment and high yield
products.
-- Bioprocesses and products based on renewables: novel
farming systems, bio-process and biorefinery concepts, and
bio-catalysis; new and improved micro-organisms and enzymes;
and forestry and forest-based products and processes.
-- Environmental biotechnology: utilization of
agro-industrial wastes and byproducts, environmental
bio-remediation and cleaner bioprocessing.
The FP7 home page is available at:
http://ec.europa.eu/research/fp7/index en.cfm
More information on biotechnology related issues in FP7 can
be found at: http://cordis.europa.eu/fp7/kbbe/home en.html
ADDITIONAL RESEARCH/REPORTS
--------------
9. Additional academic research, industry reports, and
government publications on EU policies relating to the
development and adoption of bio-based chemical products and
liquid biofuels published since 2004 include:
-- Council of Ministers endorsed the EU Life Science and
Biotechnology Strategy, May 21, 2007. Available at:
www.consilium.europa.eu/ueDocs/cms Data/docs/pressData/en/
intm/94184.pdf
-- EuropaBio (The European Association for Bioindustries) web
page on the Mid Term Review of the EU's Life Science and
Biotechnology Strategy. Website:
www.europabio.org/eu strategy.htm
-- Energy Charter Secretariat "Driving Without Petroleum? A
Comparative Guide to Biofuels, Gas-to-Liquids and
Coal-to-Liquids as Fuels for Transportation." Available at:
http://www.encharter.org/index.php?id=229
-- European Commission Joint Research Centre "Consequences,
Opportunities and Challenges of Modern Biotechnology in
Europe," 2007. Available at:
http://bio4eu.jrc.es/documents/
Bio4EUsynthesisreportEUR22728EN.pdf
LEADING FIRMS AND ORGANIZATIONS
--------------
10. A number of firms and organizations throughout the EU are
active in the fields of bio-based chemical products and
liquid biofuels. Below is a representative list of firms and
organizations with a broad European or EU-wide focus:
European Commission, Directorate General for Energy and
Transport (DG-TREN)
website:
http://ec.europa.eu/dgs/energy transport/index en.thml
EU Biofuels Technology Platform
website: http://www.biofuelstp.eu
EuropaBio (The European Association for Bioindustries)
website: http://www.europabio.org
BioFuels Europe Ltd.
website: http://www.biofuels-europe.com
USEU POC
--------------
11. USEU/ECON contacts for further USTIC information
requests are Richard Frost (biofuels),FrostR@state.gov,
32-2-508-2018 and Rob Dollinger (biotech and bio-research),
DollingerRA@state.gov, 32-2-508-2637. USEU/FAS contact for
further USTIC information requests is: David Leishman,
david.leishman@fas.usda.gov, 32-2-508-2760
Gray
.