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GSR 2015 - Transport

96 04 POLICY LANDSCAPE ■■ TRANSPORT Renewable transport fuels are being promoted through a mix of regulatory measures and fiscal incentives. Electric vehicles also are drawing increased attention, although they are being promoted in connection with renewable energy to a far more limited extent. As in recent years, the majority of transport- related policies continued to focus on developments in the biofuel sector and in road transport; however, other modes of transportation are attracting attention as well. Biofuel blend mandates—which require that specific shares or volumes of biodiesel, ethanol, and/or advanced biofuels be mixed with petroleum-based transportation fuel—are now in place in 33 countries, with 31 national mandates and 26 state/provincial mandates. Within these policy frameworks, 44 jurisdictions mandate specified shares of bioethanol, and 27 mandate biodiesel blends, with many countries enacting mandates for both fuels. (R See Reference Table R18 and Figure 34.) Several countries strengthened existing mandates in 2014. Argentina increased its existing ethanol blend mandate, raising the previous 7% (E7) mandate to a required 10% ethanol (E10), and introduced a separate 10% biodiesel (B10) mandate in December 2014.92 Brazil raised its biodiesel blend mandate twice in 2014, from 5% to 6% starting 1 July, and to 7% starting 1 November. Brazil also raised the cap on the maximum ethanol blend from 25% to 27.5%.93 Malaysia upped its existing mandate from 5% to 10% biodiesel.94 Panama’s ethanol mandate was raised from 2% to 5% in 2014, and subsequently increased to 7% in early 2015.95 Vietnam issued a national mandate that requires seven cities to begin distribution of 5% ethanol blends.96 At the state level, Minnesota became the first US state to mandate a 10% biodiesel blend.97 With a growing number of mandates in place to utilise renewable fuels, the debate over the sustainability of the first-generation biofuels that are often used to meet those mandates continued in many countries. In 2014, European energy ministers agreed to cap at 7% the contribution of biofuels and bioliquids produced from cereals and other starch-rich crops, sugars, and oil crops to the EU-wide renewable transport fuel target (10% of total transport fuel); this compares with the European Commission’s 2013 recommendation of a 5% cap.98 A final decision on the 7% cap is expected in 2015. At the national level, Italy became the first country in Europe to set a specific mandate for advanced biofuels, enacting a mandated blend of 0.6% advanced biofuels by 2018.99 In early 2014, Spain revised regulations governing which biofuel raw materials qualify towards meeting the national biofuel mandate.100 Countries continued to provide financial support to biofuel development and production as an additional means of promoting renewable fuels. For example, Brazil approved tax reductions for ethanol exports in 2014.101 India deregulated the sale of biodiesel, allowing producers to sell directly to consumers in an effort to expand the biodiesel market, and India’s state- owned rail company, India Railways, now aims to include up to 5% biodiesel in its locomotive fuel.102 Other countries reduced their support for biofuels: for example, Australia’s 2014 budget included provisions to end the Ethanol Production Grant programme by mid-2015, and Ukraine imposed a national excise tax on alternative transportation fuels.103 International biofuel trade continued to draw the attention of policymakers in 2014. South Africa concluded a new economic partnership agreement with the European Union that provides the former with a quota of 80,000 tonnes of duty-free ethanol exports to the latter.104 However, a number of countries filed international trade complaints centred around developments in the biofuels sector. Indonesia filed a formal complaint to the WTO against anti-dumping tariffs lodged by the EU on Indonesian biodiesel exports.105 Argentina filed a similar challenge against the EU on behalf of its biofuel industry.106 Electric vehicles (EVs) represent a small but increasing share of the global vehicle market. While a number of incentives exist across the globe to expand sales of EVs, irrespective of power source, countries rarely are focusing on the intersection of renewable power generation and EVs. If developed in parallel, EVs and renewables offer the potential to decrease greenhouse gasemissionsmorethaneithercouldalone.Further,EVsofferthe potential to balance grid networks by providing energy storage capacity.107 In 2014, China mandated that EVs make up at least 30% of all vehicles purchased for government fleets by 2016.108 At the sub-national level, the US state of Maryland enacted a USD 2 million grant programme to support the installation of solar PV for EV charging at parking lots.109 Biodiesel Mandate only Ethanol Mandate only Countries are considered to have policies when at least one national or state/provincial-level policy is in place. Both Biodiesel and Ethanol Mandates Other Transport Mandates 2011 2012 2013 Early 2015i 70 60 50 40 30 20 10 0 Number of countries Figure 34. Number of Countries with Energy Transport Policies, by Type, 2011– Early-2015 Figure 34. Number of Countries with Renewable Energy Transport Obligations, by Type, 2011–Early 2015 Source: REN21 Policy Database i - Italy's advanced biofuel blend mandate is included in "Other transport mandates". Countries are considered to have policies when at least one national or state/provincial-level policy is in place. 201120122013 Early 2015i

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