Mandatory targets set by the Directive on the Promotion of the use of energy from renewable sources (2009/28/EC): 15% share of RES on the final consumption of energy in 2020; at least 10% share of biofuels of final consumption of energy in transport in 2020. Indicative target set by the European Biofuels Directive of 2003: biofuels consumption of 5.75 % of petrol and diesel use for transport in 2010.

The potential for marketing biocomponents in Poland is gradually increasing. As early as in 2005, there were no obstacles to adding up to 5% of fatty acid methyl esters to diesel fuels (bioethanol has been used as an additive in petrol since 1994). In 2006, the entry into force of the Regulation of the Minister for Economic Affairs of 8 September 2006 on quality requirements for liquid biofuels (Journal of Laws No 166, item 1182), created the conditions for placing two types of biofuel on the market:

• fatty acid methyl esters used as direct fuel,

• diesel containing 20% of such esters.

Poland currently promotes the use of biocomponents by offering financial incentives, above all through a system of tax exemptions and tax reliefs offered on the basis of successive regulations of the Minister for Finance. Incentives in the form of exemptions from excise duty for fuels containing biocomponents, which have applied (since 1 May 2004) under the Regulation of the Minister for Finance of 26 April 2004 on exemptions from excise duty (Journal of Laws 2006, No 72, item 500, as amended) were reduced following the entry into force of the Regulation of the Minister for Finance of 22 December 2006 amended in 2009 by the Regulation on exemptions from excise duty (Journal of Laws 2009 nr 3 item 11. The introduction of these provisions was dictated by the need to bring national regulations into line with EU legislation and resulted in a weakening of the support mechanism for biocomponents added to diesel (by reducing the level of exemption from excise duty for liquid fuels containing biocomponents and for liquid biofuels). Under the provisions in force since 2009 the following are exempt from excise duty:

1) biocomponents intended for use in liquid fuels and liquid biofuels, meeting the relevant

quality requirements;

2) The following fuels, meeting the relevant quality requirements and containing over 2% of

biocomponents:

a) petrol – PLN 1.50 on each litre of biocomponents added to it,

b) diesel – PLN 1.00 on each litre of biocomponents added to it;

3) biocomponents used as direct fuel and meeting the quality requirements specified in

separate regulations – PLN 1 680 per 1 000 l, but level of exemption can’t be bigger than due excise amount

The European Commission, to which the above arrangements were notified as constituting State aid, found (in its decision of 8 March 2007) that they were compatible with the EC Treaty. It should be pointed out here that, in 2007, the aforementioned excise duty exemptions granted for using biocomponents in fuels amounted to PLN 24.3 million.

Preferential excise duty treatment will be enhanced as a result of the Act of 11 May 2007 amending the Excise Duty Act and certain other Acts (Journal of Laws No 99, item 666), which lays down, amongst other things, that excise duty rates will be as follows for the products specified below:

1) For products made by blending petrol with biocomponents and containing over 2% biocomponents, the excise duty charged on the petrol (PLN 1,565 per 1,000 l) shall be reduced by PLN 1.565 for each litre of biocomponents added to the petrol, subject to the minimum excise duty payable being PLN 10.00 per 1,000 l;

2) For products made by blending diesel with biocomponents and containing over 2% biocomponents, the excise duty charged on the diesel (PLN 1,048 per 1,000 l) shall be reduced by PLN 1.048 for each litre of biocomponents added to the diesel, subject to the minimum excise duty payable being PLN 10.00 per 1 000 l;

3) For biocomponents intended for use as direct fuel in internal combustion engines, the rate will be PLN 10 per 1,000 l.

The Regulation of the Council of Ministers of 15 June 2007 on National Indicative Targets for 2008-2013 (Journal of Laws No 110, item 757) sets the following National Indicative Targets:

- 2008 – 3.45%

- 2009 – 4.60%

- 2010 – 5.75%

- 2011 – 6.20%

- 2012 – 6.65%.

- 2013 – 7.10%.

The National Indicative Targets presented above reflect obligations stemming from Poland’s membership of the European Union. In the period 2008-10, they will increase linearly from 2.3% set for 2007 to 5.75% specified in Directive 2003/30/EC for 2010.

In 2008 the Polish National Indicator Aim was realized as follows:

I quarter - 3.00%   = 86.95% of require level 3.45%

II quarter - 3.74%   = 108.41% of require level 3.45%

III quarter – 4.21 % = 122.03 % of require level 3.45%

IV quarter – 3.89% = 112.75% of require level 3.45%

From the Polish production stems about 87 thousand tons of bioethanol in total 46.8% of the total market demand. In case of biodiesel the share of domestic production is 42.2 % of the market i.e. – 167,1 thousand tons.

Report to the European Commission for 2007 under Article 4(1) of Directive 2003/30/EC of the European Parliament and of the Council of 8 May 2003 on the promotion of the use of biofuels or other renewable fuels for transport, Poland, September 2008

National Biofuels Chamber

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