Critical Issues in Environmental Taxation series
Edited by Larry Kreiser, Ana Yábar Sterling, Pedro Herrera, Janet E. Milne and Hope Ashiabor
Chapter 3: Promotion of biofuels and EU State aid rules: the case of Spain
According to the European Commission, transport is responsible for around a quarter of EU greenhouse gas emissions, making it the second biggest emitting sector after energy. Road transport alone contributes about one-fifth of the EU’s total emissions of CO2, the main greenhouse gas. This means that significant reductions in greenhouse gas emissions from transport are required if the EU is to achieve the ‘20-20-20’ targets. In order to achieve these objectives, European Directive 2009/28/EC on the promotion of the use of energy from renewable sources sets binding targets for Member States to achieve a 10 per cent share of renewable energy in the transport sector by 2020. The Directive requires the Member States to introduce legislation and take the necessary measures to ensure that, as from 2020, alternative fuels such as biofuels account for at least 10 per cent of the fuel sold on their territory. In that sense, tax reductions in energy taxes and biofuel obligations are the two most common instruments used by Member States to promote biofuels.
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