The EU should grow its way out of fossil fuel dependency, argues Mariann Fischer Boel.
"In an industrialised Europe, energy is more central to our lives than ever before. The EU accounts for around 17 per cent of global energy use, and we are the world’s biggest energy importer.

Of course, we still meet our needs mainly with oil and gas, and that will remain true in the medium term. However, we know that oil and gas reserves will not last forever. We owe it to our children, and to their children, to continue exploring the scope of alternative power sources.
It is also clear that the relationship between supply and demand on the market is not always as we would wish. The price of a barrel of oil has already reached uncomfortably high levels and is showing no signs of easing. This risks dampening our economic growth and stoking up inflation.
The recent problems with gas supplies from Russia have highlighted once again how important it is to diversify Europe’s energy sources. And we cannot be casual about the environmental pollution created by burning fossil fuels.
Under the Kyoto protocol, the EU15 member states have committed themselves to cutting greenhouse gas emissions by eight per cent from 1990 levels between 2008 and 2012.
Most new member states have also set national targets. In the EU, transport is responsible for about one quarter of greenhouse gas emissions. It is therefore essential to find ways of reducing emissions from transport.
Now more than ever, agriculture has a big part to play in energy policy. As oil prices rise inexorably, the rationale for viable alternatives such as biofuels becomes indisputable.
The seeds have already been sown through our recent agricultural reform programme. As agricultural subsidies are “decoupled” from production under a deal signed in 2003, farmers will be f
And to help build up some momentum, EU agriculture ministers agreed a sweetener in the 2003 reform deal: a special aid of €45 for every hectare devoted to energy crops. Last year, EU farmers applied for this aid for over 500,000 hectares.
Likewise, last November’s radical reform of the EU sugar market will exempt sugar grown to produce ethanol from production quotas.
While raw materials are freely available and while biofuels offer huge opportunities, they also present considerable challenges. In the European commission, we are doing our best to help meet the challenges head-on.
That is why we will this week unveil our EU strategy for biofuels.Building on last year’s biomass action plan, it will focus specifically on how we can help develop the production and use of biofuels for transport.
For me personally, this is a top priority. EU efforts so far in this area have been admirable, but insufficient. Now that the biofuels sector is showing definite signs of dynamism, it needs our support and encouragement.
One of the main tasks for the EU institutions has been to set the legal framework. Unfortunately, we are still a long way from achieving the objective in the Biofuels Directive of two per cent biofuel content in fuels by 2005.
Meanwhile, the 5.75 per cent target for 2010 looks equally far off unless we take action now to boost production. Production of biofuels in the EU amounted to 2.4 million tonnes in 2004 – 0.5 million tonnes of bioethanol and 1.9 million tonnes of biodiesel.
By the middle of this year, biodiesel production capacity is expected to reach 3.8–4.1 million tonnes. So while things are moving in the right direction, they are not moving quickly enough.
The strategy will set out seven priority areas where EU action can give a kick start to this interesting market. Firstly, we need to stimulate demand for biofuels. We will report later this year on a possible revision of the Biofuels Directive.
Member states must be encouraged to favour biofuels – both first and second generation products. Efforts will be made to capture the environmental benefits of biofuels. We must develop production and distribution channels, and find new sources of feedstock through new initiatives on forestry, animal by-products and clean waste.
We must also look into trade opportunities, and assist developing countries to exploit their potential as biofuel producers. And of course, we must enhance our research efforts into both first and second generation biofuels.
Well-supported and skilfully-targeted research and technological development will be crucial and will significantly cut the costs of biofuel production beyond 2010.
If we are successful, we will bolster environmental protection, reduce Europe’s dependence on oil imports, provide a huge market for new technologies and also provide new outlets for our farmers, particularly in the new member states of central and eastern Europe.
We cannot rely forever on “black gold” to meet our energy needs. The gold of the future might just be green."