Since the failure to reach an agreement on a revision of EU biofuels policy under the Lithuanian Presidency, the Greek Presidency has worked on a new compromise to secure a first reading position in the Council. Member states have reached an agreement on the first reading position, which will allow a first reading before negotiations within the Parliament begin.

In 2012, the European Commission acted on warnings that, as a result of competition for land use, biofuels may be increasing volatility in food prices, leading to deforestation and, especially in the case of vegetable-based fuels, may not be any better for the environment than their fossil equivalents. The Commission proposed a cap on the use of crop-based biofuels at 5 percent of transport fuel. Industry opponents of the EU executive's plans said they had invested in line with earlier targets of 10 percent renewable transport fuel by 2020, which the measures would make impossible to achieve.

Previous moves on the biofuels policy were derailed in December by energy ministers from Hungary and Poland, who formed a blocking minority to reject compromise measures put forward by the then-president. Member States supporting a more progressive platform such as Denmark, Belgium, Netherlands, Luxembourg and Italy also joined in blocking the measures, stating that Lithuania's compromise of 7 percent biofuel in transport fuel was too high.

The eventual aim of the reformed policy is to replace first generation biofuels, from crops, with second generation 'advanced biofuels' from algae or agricultural and industrial by-products, eliminating the issue of competition.

The Greek presidency, which took on the biofuels dossier in January, has defined Indirect Land Use Change (ILUC), a controversial aspect of the package, which refers to the effects biofuels crops can have in causing more land to be cleared for food crops (this can cancel out emissions gains associated with switching to crop-based biofuels by disturbing land that acts as a carbon sink).

In their compromise package, Greek officials have sought to further define what Indirect Land Use Change (ILUC) is; insisting on the ‘indirect’ character of it and the need for data and assumptions to be reviewed in line with the latest available information on land conversion and deforestation. The package also contains a sub target for advanced biofuels (of around 0.5 percent, though this amount will not be binding).

Having first been presented at a COREPER meeting on 23 May, the Greek Presidency made changes to the package's wording in line with some Member States' comments, though made no substantial changes to the proposals themselves and resubmitted the compromise measures on Wednesday.

Commenting on the proposals, Faustine Defossez, Senior Policy Officer on Agriculture and Bioenergy at the European Environmental Bureau said, "By reaching a deal today Member States finally forged an exit route from the current stalemate on biofuels." She added "Although it is good that a deal was reached, the content of the agreement would do little to stop the damaging impacts of land based biofuels. Particularly worrying is the last minute change requested by Poland that would fundamentally undermine the effectiveness of the proposal under discussion. All eyes are now on the recently elected MEPs who will have to steer the compromise towards truly sustainable solutions for green transport."

The Council of Energy Ministers will now have to officially endorse the deal in a meeting scheduled for 13 June. After this, the new Parliament will have to vote on the Council's first reading position.