The Albanian government has opened the consultation process on a law to promote the production and use of Renewable Energy Sources for the Transport sector through the use of biofuels for internal combustion engines as a part of the process of aligning with the EU acquis as a part of its path to EU membership.
Within the EU, biofuels are something of a hot topic that has caused divides among the right and left at a member state level. But in Albania, the draft law has been presented for consultation with little in the way of a reaction, positive or negative.
EU renewable energy deal backs biofuels to cut transport emissions
The amount of biofuels in Europe’s transport sector is expected to increase after the European Parliament and EU countries agreed in the early hours of Thursday (30 March) on new rules to spur the use of renewable energy across the bloc.
Biofuels are liquid fuels and blending components that are produced from renewable sources such as biomass. They are mainly used as transportation fuels but can also be used for electricity and heat generation.
By 2030, the EU aims to increase the share of renewable energy in transport to at least 14%, including a minimum percentage of 3.5% of advanced biofuels. EU countries must set out an obligation on fuel suppliers to ensure this target’s achievement. It also wants to ban the sale of new diesel and gas cars by 2015, effectively putting an end to the combustion engine car.
“For Albania, transport is the biggest contributor of CO2 and considering its size, it is a big impact on climate change. The law provides objectives, timelines, and roles with clearly defined responsibilities,” the consultation document from the Ministry of the Environment states, adding the law is necessary to ensure that producers meet the obligation to provide enough biofuels to meet public demand.
In this context, Albania is committed within the framework of the acquis to meet the national objective for renewable energy, where the share of biofuels occupies 10% of this objective for the consumption of renewable resources at the national level with 38% in 2020 compared to the year when obligation to the MSA began.
The document provides details of the applications of biofuels which, in pure or mixed form, in a certain percentage, will be used in the transport sector for internal combustion engines, in particular biodiesel and bioethanol, in line with EU standards. It continues that the standards adopted by the EU will be adopted at a national level and must meet sustainability requirements as laid down in the law.
It also lays down the national objectives in relation to biofuels which include determining the annual quantity needed by the market, encouraging enough production, ensuring engine efficiency, protecting public health and the environment and the sustainable development of the agricultural sector.
The law will also seek to regulate import and export related to the sector, their storage, and the licensing process for those producing them locally.
Swedish climate minister dismisses far-right’s biofuel threats
Climate and Environment Minister Romina Pourmokhtari dismissed threats of political crisis from the far-right Sweden Democrats, who want the currently undecided government to reduce the number of biofuels that must be blended into petrol and diesel from the current 30% mandate to virtually zero.
There are currently some measures in palace to accommodate the production and supply of biofuels, namely Law no.9876, which was adopted in 2008 in line with EU Directive 2003/30/EC. It established a binding biofuels target of 10% by volume from 2015 imposed on wholesale companies with a license for oil byproducts.
There are also in place some further rules on establishing sustainability criteria and fuel quality requirements, but despite these laws, the supply of biofuels in Albania remains very low.
Reasons behind this include the absence of measures to enforce the blending obligation and the fact there is only one plant with a capacity of 112 million litres a year. Currently, the plant produces less than 10% of its capacity, mainly from imported vegetable oil, which is then exported to Italy.
Another version of the bill was presented several years ago, which foresaw annual minimal volumes of biofuels in the transport sector shall be no less than 7 % in the volumes of 2016, no less than 8 % in the volumes of 2017, no less than 9 % in the volumes of 2018, no less than 10 % in the volumes of 2019 and ongoing. This obligation is imposed on ‘wholesale companies possessing “trade license” for oil byproducts.’
Unfortunately, little came from the law. Furthermore, experts noted that exempting biofuels from excise and the machines used to produce them having special VAT treatment were not addressed.
Albanians have the least cars in Europe with just one in five owning a vehicle. However, much of this ownership is concentrated in the capital of Tirana and other key cities like Durres and Elbasan which suffer with poor-quality air and high levels of pollution.
Stakeholders have been invited to suggest and request revisions to the new biofuels legislation before 16 May 2023.
(Alice Taylor | Exit.al)
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