Germany Announces Cut To 2009 Biofuels Blending Target
Germany's government has trimmed its proposed biofuel blend levels in fossil fuels for 2009, the country's Environment Ministry said on Wednesday.
The cabinet approved a proposal from the ministry that oil refineries would have to mix 5.25 percent biofuels in fossil fuels by energy content in 2009 instead of a previously planned 6.25 percent blend.
From 2010 the biofuel blending level would be increased to 6.25 percent and remain fixed at that level until 2014, the ministry said in a statement.
Germany's cabinet also decided on Wednesday to increase taxes on biodiesel to 18 euro cents a litre from January 2009, from 15 euro cents now, instead of the planned increase to 21 euro cents.
Germany's biodiesel industry, Europe's largest, has been lobbying the government to trim its plans for tax rises on green fuels, after tax rises between 2006 and 2008 have drastically cut sales at petrol stations.
Germany's biodiesel industry has only been running at about 15 percent of capacity largely because of high taxes, and large numbers of producers are facing closure
Producers argue that biodiesel needs to be at least five euro cents cheaper than fossil diesel because vehicles consume more of the green fuel. The tax rises mean the price is almost the same.
Despite the slight concession of not increasing taxes as much as previously planned, an increase of any kind is likely to provide a further nail in he coffin for the German biodiesel industry for 2009.
The cabinet approved a proposal from the ministry that oil refineries would have to mix 5.25 percent biofuels in fossil fuels by energy content in 2009 instead of a previously planned 6.25 percent blend.
From 2010 the biofuel blending level would be increased to 6.25 percent and remain fixed at that level until 2014, the ministry said in a statement.
Germany's cabinet also decided on Wednesday to increase taxes on biodiesel to 18 euro cents a litre from January 2009, from 15 euro cents now, instead of the planned increase to 21 euro cents.
Germany's biodiesel industry, Europe's largest, has been lobbying the government to trim its plans for tax rises on green fuels, after tax rises between 2006 and 2008 have drastically cut sales at petrol stations.
Germany's biodiesel industry has only been running at about 15 percent of capacity largely because of high taxes, and large numbers of producers are facing closure
Producers argue that biodiesel needs to be at least five euro cents cheaper than fossil diesel because vehicles consume more of the green fuel. The tax rises mean the price is almost the same.
Despite the slight concession of not increasing taxes as much as previously planned, an increase of any kind is likely to provide a further nail in he coffin for the German biodiesel industry for 2009.