EU still split on biofuels, decision seen delayed

By Paul Taylor

BRUSSELS (Reuters) - European Union states are so divided on the conditions for producing biofuels made from crops that they are unlikely to reach agreement this week on a set of so-called "sustainability criteria", diplomats say.

A paper circulated by the Slovenian EU presidency before environment ministers meet on Thursday shows member states don't agree on rules to prevent fuels such as ethanol and biodiesel doing more harm than good in fighting climate change.

"There remain important differences of opinion on certain issues," the report said after a working group of experts spent two months trying to define appropriate criteria.

Biofuels have come under attack by many scientists and environmental groups that contend that their production has contributed to food price inflation, depleted rainforests and failed to save substantial greenhouse gas emissions.

The OECD and the U.N. Food and Agriculture Organisation said in a joint report last week that rapidly rising global output of biofuels from food crops over the next decade would boost already soaring agricultural commodity prices.

While no member state proposes dropping the goal of getting 10 percent of transport fuel from biofuels by 2020, "many delegations want to make the binding nature of this target conditional" on strict terms set by EU leaders, the Slovenian report said.

These include not only the environmental and social impact of existing agriculture-based fuels but also the commercial availability of second-generation biofuels from plant waste, algae and other low-value materials.

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