Low blends can contribute to – but not fulfil – EU targets
Fuel suppliers appear to favour low-blends as a cost-efficient way of implementing EU targets for renewables. It is unlikely that the use of low blends alone will enable the EU to meet its climate and energy targets, but low blends in petrol and diesel can make a contribution towards fulfilment of these goals. The urgent need to reduce diesel consumption in the EU means that development of infrastructure to supply both diesel low blends and ED95 should be a priority. Market introduction of diesel low blends is challenging, as they require separate pumps, have low flash point and different infrastructure complexity compared to standard diesel. If low blends are not compulsory, they must be competitively priced for consumers. Taxation and excise on low blends varies in different EU Member States. It is questionable whether tax exemptions for the bioethanol part of low blends are effective policy. Making low blends compulsory – or increasing taxation on the fossil content of fuels – may well be a better approach.