Council rejects biofuel compromise

Proposal to restrict first-generation biofuel now on ice, may be revived in next Parliament.

A compromise on a European Commission proposal to restrict European Union subsidies for first-generation biofuel was rejected today (12 December) by energy ministers meeting in Brussels. The compromise by the Lithuanian government, which holds the rotating presidency of the Council of Ministers would have increased the cap proposed by the Commission and axed mandatory reporting of indirect land use change (ILUC) effects.  

The blocking minority combined member states who are opposed to any restrictions such as Poland and Hungary with member states who said the compromise was too watered-down, such as Denmark and the Netherlands. The file will now be handed to the incoming Greek presidency. However because the current European Parliament term will end in April, the Council is unlikely to revisit the issue until after the new Parliament comes in during the second half of 2014. 

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