Current situation on renewable energy sources in transport sector in Energy Community
The European Commission adopted in year 2011 a Roadmap of 40 concrete initiatives for the next decade to build a competitive transport system that will increase mobility, remove major barriers in key areas and fuel growth and employment. At the same time, the proposals will dramatically reduce Europe’s dependence on imported oil and cut carbon emissions in transport by 60% by 2050.
By 2050, key goals will include:
- No more conventionally-fuelled cars in cities
- 40% use of sustainable low carbon fuels in aviation – at least a 40% cut in shipping emissions
- A 50% shift of medium distance intercity passenger and freight journeys from road to rail and waterborne transport
- All of which will contribute to a 60% cut in transport emissions by the middle of the century.
The use of renewable energy sources is a key element in energy policy, reducing the dependence from imported fuel, reducing emissions from fossil sources, and reducing energy costs from oil prices. Directive 2009/28/EC on promotion of the use of energy from renewable sources established accounting criteria for the 2020 targets on renewable energy sources. In 2017 renewable energy had a 17.5% share in the EU gross final consumption of energy and eleven Member States already achieved their 2020-targets. The EU’s target is to obtain 20% of energy in gross final consumption of energy from renewable sources by 2020 and at least 32% by 2030.The Energy Community Contracting Parties have the obligation to reach binding targets for renewable energy in gross final energy consumption by 2020, while presently their current share in transport is at around 1%, mainly reflecting the use of renewable electricity in public transport.
According to the latest statistical data presented by the Secretariat at the Renewable Energy Coordination Group on 12 November, Bosnia and Herzegovina, Serbia and Ukraine are unlikely to meet the 2020 renewables targets, while the situation in Albania, Kosovo* and North Macedonia remains questionable due to the impact of hydrology, low investments in renewable energy or increase in energy consumption. With respect to the 10 % renewable energy target for the transport sector, no Contracting Party will meet the target, with present shares at or close to 0 %.
Among the Contracting Parties, Albania, FYR of Macedonia and Ukraine report some biofuel deployment in the transport sector in their Third Progress Reports on the promotion of renewable energy for the years. Additionally, stakeholders from Montenegro and Serbia have reported biofuel production and/or consumption. In the other CPs the production and consumption are either null or only limited to self-consumption, mainly at the farmers level, and therefore regarded as null.
RES in Energy Community Contracting Parties
For RES in transport no progress has been achieved in the past and it can be expected that without the establishment of effective policy measures it can hardly be expected that this may change in future. Thus, for RES in transport, and here specifically for biofuels we do not expect a (significant) contribution by 2020 in any of the CPs.
Setting up a comprehensive legislative and regulatory framework for biofuels will be essential in order to establish the conditions for their introduction and subsequent contribution towards the biofuels targets established under the RED.
Short description on current situation for each Contracting Party
- Albania: Shares final energy from renewable sources consumed in transport in 2017 was 13.4%, mostly biodiesel. Without the adoption of the sustainability regime and establishment of a certification scheme, the actual production and consumption of biofuels in the country cannot be counted towards the transport target. According to Renewable progress report for 2016-2017 some measures regarding primary legislation on use of biofules and sustainability criteria are underway.
- Bosnia and Hercegovina: Shares final energy from renewable sources consumed in transport in 2017 was less than 1%, mostly electricity form RES in railway transport and far below the planned National Renewable Energy Action Plan trajectory. Estimated total support in the transportation sector on an annual level is currently 0 euros.
- Georgia: NREAP was approved by the Ministry of Economy and Sustainable Development. The sustainability criteria for biofuels and bioliquids are still not adopted. NREAP includes measures for the transport sector, and the draft law defines overall principles and responsibilities with respect to the promotion of biofuels.
- Kosovo: There is not RES consumed in transport sector and no financial support provided at all. There is no certification scheme defined or relevant body established to implement the sustainability criteria for biofuels and bioliquids.
- Moldova: Energy Efficiency Agency was appointed as the certification body, including for voluntary schemes. Renewable energy share in the transport sector is 0,03% which is quite far from its obligations under NREAP.
- Montenegro: Shares final energy from renewable sources consumed in transport in 2017 was less than 1%. The Government adopted three secondary acts on biofuels, but real implementation of these decrees are still far away in the practice having in mind that financial support and mechanisms are not envisaged at all. Montenegro is the only Balkan country which has not adopted Progress report on RES for 2016-2017 even though the draft version is prepared 6 months ago.
- North Macedonia: There is not RES consumed in transport sector and no financial support provided at all. The legal framework misses transposition and implementation of the sustainability criteria for biofuels and bioliquids. Most of the biofuels currently produced in the country are exported.
- Serbia: The sustainability criteria for biofuels have not been adopted. The share of energy from renewable in the transport sector was 1,2% in 2017,mostly from the renewable electricity used in transport.
- Ukraine: Shares final energy from renewable sources consumed in transport in 2017 was around 1%. The amendments to the Law on Alternative Fuels cover the main principles of Articles 17 to 21 of Directive 2009/28/EC. However, their adoption is pending in the Parliament for more than a year, and only additional secondary acts, once in place, will ensure compliance with the mandatory acquis.
It is obvious that without real political will and concrete activities to introduce incentives, promotional campaigns or the relevant certification scheme for biofuels in most of the CPs the targets set by EU Directives will hardly be accomplished, not only by CP but also by EU MS.
On the other side, wider use of electric vehicles (e-vehicles) is one of the solutions to reduction of CO2 emission problems. E-mobility is an area that develops at a fast pace and is closely related to technology development and its future is definitely coming.
Having all this in mind, EU and Energy Community should consider the revision of policy and legislation framework in the future when it comes to biofuels in transport sector.
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