This report analyses current European trends in bio-energy policies as they relate to electricity and heat production. The first part of the report analyses the effects of seven EU directives on bio-energy projects. The second part of the reports analyses the German situation with regard to bio-energy. The report concludes that:
- Bio-energy policy gives rise to policy competition among Member States, which would have a negative impact on the cost-efficiency of bio-energy policy. Member States should therefore coordinate their bio-energy support regimes. It is not necessary to introduce a uniform system of supports through-out the EU, but it is necessary to avoid wasting subsidies.
- Shifting biogenic waste from landfill to energy production, in particular, is a means of substantially increasing bio-energy production in Europe. This is even more important because it can potentially reduce European CO2-eq. emissions by 200-300 Mt per year. Landfill bans or substantial landfill taxes have proved to work well in many European countries in pursuit of this aim.
- Member States should carefully consider bio-energy and bio-fuel goals in combination. This is a potential area of policy competition that may lead to wastage of subsidies and reduce the cost efficiency of both policies.