Excise duty: reduced rate on biofuels and on mineral oils containing biofuels

The European Parliament adopted the resolution drafted by Miguel MAYOL I RAYNAL (Greens/EFA, Spain) and made some amendments to the proposal. (Please refer to the document dated 04/06/02.) With regard to alternative fuels, one amendment pointed out the advantages of pure, cold-pressed vegetable oil, such as rapeseed, which does not undergo any chemical change and can thus be produced in an environmentally friendly way. Parliament also feels that the increased use of biofuels appears desirable only if the environmental impact presents clear advantages by comparison with the use of traditional fuels. A study needs to be carried out into land use, more intensive agriculture, the relationship with alternative sustainable land use, the protection of water courses, energy efficiency, greenhouse gas potential, combustion characteristics and particle formation. Furthermore, research and technological development in the field of biofuel sustainability should be promoted. On the question of taxation, one new recital states that where more favourable national taxation framework conditions already exist or have been submitted before 01/01/03, these should be kept in place until the quantitative objectives for biofuels produced in the EU have been achieved. Finally, the Parliament wants a communication from the Commission by 31/12/07 on differentiated pricing for fuels in order to internalise their ecological, social and economic cost.�