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Biofuels in Belgium

General
In the strongly regionalized state of Belgium a distinction can be made between federal policy and regional policy regarding renewable energy sources (RES). The incentive schemes for RES are most dominant at the regional level, while on the federal level the RES policy is imposed in more general terms. Attention for energy saving activities exists at both levels. For electricity, the green certificate trading and quota system has been implemented for both Flanders and Wallonia. The certificates can be traded at regional level or at federal level. The three regional energy agencies are: VIREG (Flemish Region), DGTRE (Walloon Region) and IBGE (Region of Brussels Capital). The main renewable contribution in the Belgian energy mix comes from combustible renewable biomass and waste sources. In Flanders, generation from renewable sources is expected to rise to 6% by 2010, being at 2% in 2004. In Wallonia, the objective for 2010 is a raise to 8% at the horizon 2010. In both regions there is a fast growing electricity generation coming from wind energy. Brussels-Capital has, because of its limited surface and electricity generation capacity, very limited renewable energy facilities, being mainly solar thermal demonstration projects.

According to the Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from renewable sources the target for the share of energy from renewable sources in gross final consumption of energy in the year 2020 for Belgium is 13% (in the year 2005 the share was 2.2%). The Directive has a mandatory 10 % target for transport to be achieved by all Member States, which refers to renewable sources as a whole, not biofuels alone.

Renewable energy projections according to the National Renewable Energy Action Plan for Belgium

The National Renewable Energy Action Plan (NREAP) for Belgium was submitted in December 2010. The target according to Annex I of Directive 2009/28/EC is 13% for the year 2020 and the projected NREAP share in that year exactly matches the target.  According to the projection, the most important contribution in the year 2020 is expected from biomass (renewable heating and cooling) (2034 ktoe, 38% of all renewable energy). The second most important contribution is from biomass (renewable electricity) (11.0 TWh or 949 ktoe, 18% of all renewable energy). The third largest contribution is from wind power (10.5 TWh or 901 ktoe, 17% of all renewable energy). For solar photovoltaic the contribution is projected to be 1.3 GW (1.1 TWh). Biofuels are projected to contribute 698 ktoe (biodiesel) and 91 ktoe (bioethanol / bio-ETBE) by 2020. Renewable electricity generation from solid biomass is projected to contribute 9.6 TWh (823 ktoe) and electricity from biogas 1.4 TWh (124 ktoe). The consumption of renewable heat is expected to amount to 1947 ktoe for solid biomass, 55 ktoe for biogas, and 199 ktoe for solar thermal heat.

Renewable transport fuels from biomass
Belgium implemented regulations of the European Commission through national law. Firstly, the Directive 2003/30/EC, which set goals of 2% in 2005 and 5.75% in 2010 for the use of biofuels as transportation fuel. Secondly, Directive 2003/96/EG, which sets the conditions for regulating taxes on biofuels for electricity generation and as transportation fuel.

The law on biofuels ("Wet betreffende de biobrandstoffen"/"Loi concernant les biocarburants") of 10 june 2006 reduces the excise duties on diesel oil containing at least 3,37% biodiesel and on gasoline containing at least 7% ethanol of non-chemical nature. The Act allows as well the use of rapeseed oil and motor fuels containing a higher percentage of biofuels by the regional public transport companies exempt from excise duties. Call for tender are envisaged for the marketing of biodiesel and ethanol in a programme up to 2013. According to the Royal Decree of 10 March 2006 ("Koninklijk besluit betreffende koolzaadolie gebruikt als motorbrandstof"/"Arrêté royal en matière d'huile de colza utilisée comme carburant") the use of pure rapeseed oil in transport is exempted from excise duty as of 3 March 2006.

On the federal level , an act of July  1, 2009 mandates blending of biofuels for registered oil corporations offering petrol and/or diesel products for consumption. The act, expiring by June 20 2011, may be extended by Royal Decree. The Budget Act of June 10, 2006 provides a reduced rate of excise duty for petrol containing at least 7% v/v of bioethanol (pure or in the form of ETBE) and diesel containing at least 5% v/v of FAME (Fatty Acid Methyl Ester). These excise duty rates are applied if the biofuels originate from a production unit approved by the Belgian state. This scheme started on 1 November 2006 and will end on 30 September 2013.With respect to biofuels an exemption from excise duty is granted for the biofuel part contained in fossil fuels. With respect to electric vehicles, the charging station benefits from an increased investment deduction rate of 15.5%. Furthermore, a tax deduction rate of 40% of the value of an outside electrical charging station (max. EUR 180) is available. A tax reduction for the purchase of electric cars was also introduced. The latter amounts to 30% of the acquisition value, subject to a maximum of EUR 6,500.

The table below lists the main biofuel-related measures in Belgium, partly based on the ELOBIO project.

 

 

Valid until

 

Tax incentives / mandates

 

2006

 PPO exempt from tax, based on local scale and origin and without  third-party trading

 

2006

Quota system for biodiesel, with tax reduction from October 2006

30 September 2013

2007

Quota system for bio-ethanol, with tax reduction from October 2007

30 September 2013
2009  Mandates for blending of biofuels for registered oil corporations30 September 2013

 

 

 

 

Other incentives / support programmes

 

1994

Support to fleet demonstrations of biodiesel

 

2007

Investment support to bio-ethanol facility in Wallonia.

 

2008

Flemish minister for transport stops initiative of public transport company to drive on B5

 

 

 

 

 

Market conditions

 

1996

In 1996 there was already 80,000 tonnes biodiesel production capacity in Belgium, mainly supplying the French market. In 2000 these facilities were stopped or only used for oleo-chemical purposes.

 

2007

Market uptake of biodiesel is disappointing, with only a quarter of the biodiesel quotum put on the market.

 

Future programme changes expected
Calls for tender might become into operation for the marketing of biodiesel and ethanol in a programme up to 2013.No further information is available on future programme changes.

Sources
Interactive EurObserv’ER Database http://www.eurobserv-er.org status 2007)

http://www.juridat.be (sourced May 2008)

http://mineco.fgov.be (sourced May 2008)

http://www.brusselair-premie.be (sourced September 2008)

http://www.ibgebim.be (sourced September 2008)

ELOBIO, Inventory of biofuel policy measures and their impact on the market, September 2008,  http://www.elobio.eu/publications

Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC (Entry into force on June 25th, 2009), download from http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32009L0028:EN:NOT

The National Renewable Energy Action Plans (NREAPs) are all published on the Transparency Platform on Renewable Energy: http://ec.europa.eu/energy/renewables/transparency_platform/action_plan_en.htm (sourced July - December 2010)

Renewable Energy Projections as Published in the National Renewable Energy Action Plans of the European Member States, http://www.ecn.nl/nreap (sourced December 2010)

 Interactive EurObserv’ER Database
http://www.eurobserv-er.org
Last update: June 2011

This information can be referenced without permission provided that the source is mentioned completely and correctly: 'Interactive EurObserv'ER Database, http://www.eurobserv-er.org (date of last update)'

Suggestions for improvements to the policy description can be sent to EurObserv'ER by e-mail: project@eurobserv-er.org

The EurObserv'ER barometer is a project supported by the European Commission within the DG TREN 'Intelligent Energy Europe' programme and by Ademe, the French Environment and Energy management Agency. The EurObserv'ER Barometer is the result of the investigation and research work of its authors. The European Commission is not responsible for any use that may be made of the information contained therein.