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Als die spanische Regierung erlaubte, die Rechtsvorschriften über die Steuerbefreiung bei Biokraftstoffzusatzstoffen abzulaufen, ohne sie zu erneueren, und so blieb nur die vorgeschriebene Mindestnutzung von Biokraftstoffen, waren viele Biokraftstoffhersteller über die Gesundheit von ihrer Branche besorgt.

Nun, da die Biokraftstoffnutzunglimite gesenkt wurden, gibt es noch größere Sorge über das Überleben der Branche. In den letzten Jahren hat der Umsatz stark gesunken, und viele geben der Regierungspolitik die Schuld.

Laut dem Deloitte Bericht  “Die europäische Energiemarktreform: Länderprofil Spanien” geht der Rückgang der Nachfrage zu einem großen Teil auf die Maßnahmen der Regierung zurück. Der Bericht besagt, dass “Im Bereich Verkehr liegt das Ziel der spanischen Regierung im Jahre 2020 auf 11,3% bei erneuerbaren Energien (vor allem dank der Verwendung von Biokraftstoffen: 9,2%). Nach eigenen Berechnungen machten die Biokraftstoffe im Jahre 2012 nur 6,3% im  Kraftstoffverbrauch. Im Jahre 2014 gab es einen starken Rückgang des Biokraftstoffverbrauchs aufgrund einer Regierungsentscheidung, den Einsatz von Biodiesel und Ethanol auf 4,1% bzw. 3,9% zu reduzieren. ”

Selbst laut dem eigenen Bericht der EU über die Produktion, Preisgestaltung und Verbrauch von Biokraftstoffen, (“Biofuels Barometer” ): “Der starke Rückgang des Biokraftstoffverbrauchs in Spaniens ist der Entscheidung der Regierung über die Zielsenkung zu verdanken. Die IDAE (Institut für Diversifizierung und Einsparung von Energie) behauptet, dass der Biodieselverbrauch um 57%  im Jahre 2013 und der Bioethanolverbrauch um 10,5% gesunken sind. ”

Manuel Bustos, Direktor des Verbandes der Erneuerbaren Energien in Spanien (APPA) stellt fest, dass der Rückgang der Produktion ist “ganz einfach auf die durch die Regierung abgestimmte Reduktion vom obligatorischen Biokraftstoffverbrauch zurückzuführen.”

Bustos glaubt, dass diese Politik Spanien weit weg von dem EU-Ziel im Bereich von der Senkung der Kohlenstoffemissionen führt. Er sagt: “Spanien erfühlt nicht seine Hausaufgabe, das 10% im Bereich Biokraftstoffe zu erreichen” und das Land “ist nicht auf dem richtigen Weg.”

Der EU “Biofuels Barometer” hat allerdings einige Gründe für die Änderung der Politik angedeutet: die schwache spanische Wirtschaft und der niedrige allgemeine Kraftstoffverbrauch. “Der Zweck der neuen Politik ist es, die Kraftstoffpreise an Tankstellen zu verringern und so die spanische Wirtschaft zu stärken … der niedrige Biokraftstoffverbrauch Spaniens ist mit dem allgemeinen Trend des Kraftstoffverbrauchs verbunden, der von der Wirtschaftslage und Maßnahmen zur Verringerung des Kraftstoffverbrauchs abhängt (zB Begrenzung der Autobahnfahrgeschwindigkeit auf 110 KM/Stunde). Cores, die öffentliche Behörde, die für die Erdölversorgung Spaniens verantwortlich ist, behauptet, dass der Rückgang des Treibstoffverbrauchs geringer war im Jahr 2013 (3,6% gegenüber 6,7%) als im Jahr 2012. ”

Viele Ökonomen, Politiker und Geschäftsleute werden argumentieren, dass die Notwendigkeit, die spanische Wirtschaft zu verbessern und das Haushaltsdefizit der Regierung (durch Lockerung von Erdölbeschränkungen und Entfernen von Steuerbefreiungen), eine Priorität ist. Die Umweltschützer und Biokraftstoff Händlerhaben wurden durch den Richtungswechsel verwirrt worden, aber geht die spanische Politik wirklich gegen die Handlungen von anderen EU-Staaten?

Since 2006, when the EU member states established an agreement to cut carbon emissions by 95% by the year 2050 (compared to 1990 levels), much legislation has been passed to promote biofuel industries across the continent. The most favoured methods are laws that force petrol companies to blend their products with biofuel additives. As time has passed, most countries have steadily raised the limits in an attempt to edge closer towards the EU’s goal of 10% consumption of biofuels in land transportation by 2020.

Recently, however, the Spanish government has decided to implement policies that put into question the region’s future relationship with biofuels. But are these plans really at loggerheads with other countries?

Ron Kotrba, Editor in Chief of Biodiesel Magazine, thinks that they are. He writes that, “Spain is currently one of the European countries with lower relative consumption of biofuels. The overall objective currently in force in Spain is between 45% and 35% lower than those prevailing in the two major markets for biofuels in the EU (France and Germany), while it stands 20% below the EU average (5.15%).” Clearly concerned about the state of the sector he adds that, “In fact, it is one of the lowest objectives of the EU since of the twenty five EU countries that use this mechanism to support biofuels, only three had a minimum target for 2014 lower than the Spanish, according to a recent comparative analysis by APPA biofuels.”

Kotrba continues to voice his concern, by making comparisons with other EU countries. “If Spain does not begin to raise the goal, it will fall even further behind in the European ranking next year, as many countries have adopted higher targets for 2015, for example, Finland has announced it will increase its overall objective of biofuels from the current 6% to 8%.

Portugal will also increase its biofuel compulsory target to 7.5%,  with additional targets to reach 10% in 2019 and 2020. The Government of the Netherlands just approved an increase in its biofuels target to 6.25%, establishing increasing goals to achieve 10% in 2020.

Italy has also increased its obligation to biofuels from 4.5% to 5%, setting an upward path that reaches 10% in 2020, 2021 and 2022. [Whilst] Other countries like France have already established a global biofuels target for 2030 (15%).”

Given that Spain seems on such a different course to so many other EU partners, it is maybe logical that the government has been forced to perform a small u-turn. As it was recently announced that a plan to increase the mandate was being put in place.

As Jim Lane of Biofuels Digest notes, “the [Spanish] government has announced a new plan to reach 8.5% blending of biofuels by 2020. This is short of the EU Renewable Energy Directive’s 10% mandate by that date, but an increase on the blended minimums of 4.1% in diesel and 3.9% in gasoline.”

However, this u-turn may only be a small compromise that will neither save the fledgling industry nor please EU legislators. As Lane notes, “The national renewable energy producers association has called the shift a move in the right direction but is critical that the plan still falls short of the EU mandate.”

Indeed, what is most curious about the change in direction, is that it does not reinstate previous mandates, but instead offers a single quota that combines the ethanol and biodiesel targets. Why this course of action has been taken remains unclear.

Possibly, the government’s latest proposal is more of an opening bid, as industry insiders argue that the proposal should be revised. As Meghan Sapp of Biofuels Digest speculates, “The national regulator CNMC won’t support a move to combine the ethanol and biodiesel blending quotas into a single quota, a shift that it says would damage the investments that have so far been made in the sector. Specifically, it fears the quota would lead to an over-reliance on biodiesel to fulfill the quota to the detriment of ethanol. The agency does support, however, a shift towards 5% biofuels in 2016 and 8% for 2020 while maintaining the current minimums of 3.9% for gasoline and 4.1% for diesel, which should provide enough flexibility for retailers to adjust to prices and demand shifts.”

Whilst such speculation gives food for thought to biofuel traders, the wider debate of whether Spain will achieve it’s EU targets for road transport emissions is strong. Perhaps it is this increasing pressure from environmental groups, other EU states and lobbyists that may well decide where Spanish policy on biofuels ends.

For example, the conclusions presented in a report by the Group of Energy Economics from Vienna University of Technology (Austria), recommended that, “The consumption of Biofuels in Spain must be multiplied by three to comply with the target set by the EU for renewable to meet 20% of the Spanish energy demand by 2020.”

A recent Platts report agrees that the problem must be tackled soon if the EU targets are to be met. Stating that, “Spain is yet to implement the RED (Renewable Energy Directive) for biofuels, which has more stringent certification audit requirements than that set out for minimum greenhouse gas savings in biofuels.”

The report continues by highlighting how Spain is out of step with the rest of Europe on the matter. It notes that, “Spain is the only member state which has not applied the legislation for biofuels, after Poland made the transition starting 2015.”

Why the Spanish government is not adhering to EU targets is speculated by one industry insider, who Platts quotes as saying, “Spain is able to meet renewable energy obligations with solar- and wind-powered electricity generation, among other things, leaving the government in no rush to push through legislation that would increase fuel prices at the pump and hamper economic growth.”

This insider is not alone in believing that the Spanish government is letting its biofuels industry suffer. First among these is Oscar Garcia, President of APPA (Association of Renewable Energies ) biofuels, who is understandably one of the leading advocates for increasing biofuel mandates, stating that, “The Spanish Government should follow the example of so many EU countries that continue to increase their biofuel targets to move towards a greener and less oil-dependent energy model in transport.”

Even the EU’s own ‘Biofuels Barometer’ report is critical of not only Spain’s handling of the issue of biofuels, but how the EU policy makers have failed to ensure member state support for national biofuel industries.  It questions if the industry can be successful without a cohesive and properly enforced policy. “The European Union’s forthcoming Energy/Climate package suggests a 2030 target of 27% renewable energies in energy consumption (only binding at the scale of the European Union), but the Commission did not consider it useful or relevant to set a specific transport target. This lack of visibility at European Union level is particularly detrimental to the development of advanced types of biofuel. Thus in the short and medium-term, their growth prospects will depend on their nationally-defined incorporation targets.”

Deloittes also believes that the industry would perform better if long-term planning and political commitment was shown towards biofuels targets, but also rests some blame on manufacturers, stating that, “Producers should stop relying on unpredictable government decrees in the development of their business models. For instance, they can develop projects with take-off agreements signed with consumers willing to consume renewable power for sustainability reasons.”

However, its report, ‘European Energy Market Reform: Country Profile Spain’ concludes that, “Spain’s pathway towards its 2020 targets has been masked by the country’s economic situation and there is considerable uncertainty about the country’s ability to reach these goals. There is little to no planning for the period beyond 2020. Spain would benefit from policies in the energy sector focusing on long-term sustainability rather than on short-term actions to mitigate the effects of the economic crisis.”

As we have seen, national targets can easily be changed to suit national politics. Given the growing urgency to tackle carbon emissions and the competitive nature of the modern biofuels market, surely the EU will need to strengthen its position and its laws to ensure that investors and traders have a more certain future.

Without that, does the Spanish biofuels market have a chance?

When the Spanish government allowed legislation on tax exemption of biofuel additives to expire, without being renewed, leaving only the mandated minimum usage of biofuel percentages in place. Many biofuel manufacturers were concerned for the health of their industry.

Now that the biofuel mandates have been lowered, there is even greater concern for the survival of the industry. For the last few years, sales have dropped sharply, and many are blaming government policy.

For example, when Deloitte analysed the data in their report ‘European Energy Market Reform: Country Profile Spain’, they concluded that the fall in demand was due in large part to the government action. The report stating that, “For transport, the [Spanish government’s] target is 11.3% of renewable by 2020 (mainly through the use of biofuels: 9.2%). According to our own calculations, biofuels accounted for 6.3% of transportation fuels in 2012. In 2014, there was a sharp drop in biofuel consumption due to a government decision to reduce incorporation targets for biodiesel and ethanol to 4.1% and 3.9% respectively.”

Even the EU’s own report on biofuel production, pricing and consumption, the ‘Biofuels Barometer’ agreed, declaring that, “The sharp drop in Spain’s biofuel consumption can be largely ascribed to it’s government’s decision to reduce its incorporation target. The IDAE (Institute for Diversification and Saving of Energy) claims that biodiesel consumption dropped by 57% in 2013 … and that bioethanol consumption dropped by 10.5%.“

Manuel Bustos, Director of the Association of Renewable Energies in Spain (APPA) notes that the fall in production is “quite simply the reduction of Government compulsory biofuel consumption targets.”

Bustos believes that this policy is heading Spain away from the EU goal of lowering carbon emissions. Saying that, “Spain is not doing its homework to reach 10% biofuel objectives” and that the country “is not on the right track.”

The EU’s ‘Biofuels Barometer’ does however give some reasoning behind the policy change;  the weak Spanish economy and lower general fuel consumption. It states that, “The purpose of the new targets is to reduce the price of fuel at service stations and thus bring respite to the Spanish economy…Spain’s lower biofuel consumption is aligned to the general fuel consumption trend, which has fallen relentlessly because of the economic situation and policies aimed at reducing fuel consumption (e.g. limiting motorway driving speed to 110kph). Cores, the public body responsible for ensuring oil company supplies in Spain claims that the drop in road fuel consumption was lower in 2013 (3.6% compared to 6.7%) than in 2012.“

Many economists, politicians and businessmen will argue that the need to improve the Spanish economy and reduce the government’s budget deficit (by easing petrol restrictions and removing tax exemptions) is a priority. Environmentalists and biofuel traders have been baffled by the change in direction, but is Spanish policy really working against the actions of other EU states?