In response to concerns about the sustainability of
large-scale biofuel production, the EU introduced
mandatory sustainability criteria for biofuels in 2009.
With this sustainability scheme, the EU has set a bold
example internationally for a sustainable biofuel policy
with impacts well beyond the biofuel sector, setting a
precedent for other sectors.
The sustainability criteria address the most important
direct risks from biofuels, ensuring a minimum GHG
saving compared to fossil fuels, and protecting highly
biodiverse and high carbon stock lands, such as wetlands
and peatlands. However, the EU criteria are sometimes
criticised as they currently deal with only the direct
but not the indirect sustainability impacts of biofuel
production.
In 2012, the European Commission published a proposal
aiming to address ILUC to cap conventional biofuels at
5 % of road transport fuel and encouraging biofuels from
wastes, residues and cellulosic material.