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April 28, 2017

nova-Institute Publishes Commentary on Renewable Energy Directive

Lauren M. Graham, Ph.D.

By Lauren M. Graham, Ph.D.

On April 12, 2017, the nova-Institute announced the publication of its commentary on the European Commission’s proposal for a revised Renewable Energy Directive (RED).  The proposal, which is referred to as RED II, aims to raise renewable energy usage in Europe to 27 percent by 2030 and to require fuel suppliers to include a minimum share of advanced biofuels in their offering, which will increase steadily between 2021 and 2030.  In its commentary, the nova-Institute analyzed how the revisions presented in RED II would impact the biobased materials sector.  According to the report, the inclusion of CO2-biobased fuels in RED II indicates that the available support will be spread across more forms of energy supply than before, which may improve competition and access to biomass.  The report also states that the cap on biofuels produced from food or feed crops will likely allow an increase of biomass demand by biobased materials, which can be expected to contribute to an upswing of the biobased materials sector.