Geen bezwaren tegen Duits belastingvoordeel voor biobrandstof (en)

As of 1 January 2004, Germany intends to introduce a total exemption from the excise duty on mineral oil for pure and blended biofuels. Biofuels are defined as energy products derived from bio-mass. The duration of the measure is limited until 31 December 2009. The Commission approved the exemption on the basis of the Community Guidelines on State aid for environmental protection. This is because the exemption from excise duty is proportional to the percentage of biofuel included in the final blend. The higher the proportion, the greater the value of the potential reduction. In addition, the aid is limited to cover the difference between the cost of producing energy from renewable energy sources and the market price of conventional fuels.

Today's approval follows the line of the Commission's earlier decision of 3 February 2003 (see IP/04/148) whereby the Commission approved the UK reduction of excise duty in favour of bioethanol used for road transport. These positive decisions in favour of excise duty exemptions in favour of renewable energy sources should come as no surprise as the Commission and the Council, since 1985, have consistently encouraged the development of renewable energies, especially biofuels. In this respect, numerous Community measures, among others the White Paper of 1997 on renewable energies and the Council Directive on energy taxation adopted in 2003 (see IP/03/1456), have been promulgated. The 2003 Council Directive allows for tax reductions and exemptions for biofuels.

The Commission has assessed the total exemption from excise duty on the basis of the environmental aid guidelines. These guidelines allow operating aid to cover the difference between the costs of producing energy from renewable energy sources and the market price of that energy.

Germany has successfully demonstrated that the total exemption from excise duty corresponds to the difference between the production costs of a variety of biofuels and the market price of conventional petrol.

As regards biodiesel, production costs without excise duty are calculated to be 0.88 €/l, which is equal to the market price of fossil diesel that amounts to 0.88 €/l including excise duty. As regards bioethanol, production costs without excise duty are estimated at 1.07 €/l, which is equal to the market price of fossil petrol that amounts to 1.07 €/l including excise duty. The production costs of biodiesel and bioethanol include an adjustment factor that takes into account the lower energy-efficiency of biodiesel and bioethanol compared to fossil fuels.

As regards vegetable oils Germany calculated production costs without excise duty of rapeseed oil of 0.81 €/l, which is 0.07 €/l below the market price of fossil diesel (0.88 €/l including excise duty). The production costs of 0.81 €/l include an adjustment factor of 10% to take into account the lower energy value of rapeseed oils compare to fossil diesel. Based on Eurostat sources the adjustment factor may well be higher, even over 20%. Productions costs of rapeseed oil would be equal to the market price of fossil diesel if an adjustment factor of 18% is applied, which is still well below the adjustment factor estimated by Eurostat.

Without an exemption the following excise duties would be applicable to biofuels:

• an excise duty of 470.40 EUR per 1000 l for biofuels for which the excise duty of diesel would be applicable and

• an excise duty of 654.50 EUR per 1000 l for biofuels for which the excise duty of petrol would be applicable.

As also the other conditions of the environmental aid Guidelines are met the measure is limited in time -- the Commission concludes that the excise duty exemption can be approved until 31 December 2009. The scheme is also in line with the Community legislation on taxation, in particular with Council Directive 2003/96/EC on energy taxation.

At this stage there is neither significant production of biofuels in Germany nor wide use. The current market share of biodiesel and vegetable oils does not exceed 2.5% in the German market for diesel fuel. The German authorities and the European Commission share the hope that today's approval of an excise duty reduction in favour of biofuels will trigger a wider use of this environmentally friendly fuel source in Germany.

Background

The following products can potentially be used as biofuels: vegetable oil methyl ester (so-called biodiesel), in particular rape methyl ester, and other fatty acid methyl ester (FAME), vegetable oil, bioethanol, biomethanol, ETBE (ethyl-tertio-butyl-ether), MTBE (methyl-tertio-butyl-ether), dimethylether made from biomass (DME), biogas and synthetic fuels made from biomass. Currently only biodiesel and vegetable oils are used in Germany. Bioethanol and ETBE are expected to be introduced in the market in the coming years.

The exemption applies to pure biofuels as well as to biofuels blended with fossil fuels. Pure biofuels are exempted completely from the excise duty on mineral oil. Biofuels blended with traditional fuels are exempted from the excise duty from the excise duty on mineral oil to the amount that they contain biofuel.

Germany intends to introduce the measure on basis of directive 2003/96/EC of the Council restructuring the Community framework for the taxation of energy products and electricity, which allows Member States to apply a reduced excise duty and exemptions for products derived from biomass subject to certain conditions.