On Wednesday afternoon, the European Parliament announced it would loosely back Commission plans to cap support for first generation biofuels.

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MEPs backed the cap over concerns that the indirect land use change (ILUC) caused by the growing production of first generation biofuels, which are mostly manufactured from agricultural crops, means their lifetime emissions are in fact worse for the environment than conventional fossil fuels. Environment and anti-poverty campaigners suggest that the growing use of edible crops and agricultural lands to produce biofuels has driven up food prices. 

Keeping to the middle ground between the caps recommended by the commission (5 percent) and more conservative industry lobbyists, MEPs voted to cap the production of first generation biofuels in the EU at six percent of the Bloc's transport fuel.

The Parliament vote passed ILUC accounting, which will include the emissions released from converting new land to agriculture and producing the crops into calculations on the fuels' emissions footprint. However, this accounting will not be included into EU targets until 2020. MEPs also sought to back alternative second generation biofuels, derived from algae, seaweed and waste, which do not compete with food or feed needs; they said fuels from these sources should account for 2.5 percent of fuels by 2020. 

Voting was incredibly close, with 356 votes in favour of a cap and accounting, 327 against and 14 abstentions. Parliament biofuels rapporteur Corinne Lepage commented on the outcome, "I [am] in favour of correct accounting of greenhouse gas emissions, including indirect land use change and [a] cap on first generation biofuels. This is an important signal that support should be focused on advanced biofuels from 2020. Taking indirect land use change into account is important for the integrity of the EU climate change policy."

However, Rapporteur Ms Lepage was two votes short of receiving a mandate to pass the proposals directly to member states for further negotiation. As a result, a second reading of the draft legislation will be required before it can be passed on to representatives of the 28 member states in the EU council.

Under the EU's own renewable transport targets, ten percent of transport fuel on sale in the block must be made up of biofuels by 2020. According to industry groups who stood against the Commission proposals, Wednesday's vote will make these targets even more difficult to achieve.

Although news of a cap was met bemoaned by industry lobbyists on Wednesday, the six percent figure stands above current EU biofuel production, meaning the industry will be permitted to grow further, much to the chagrin of environmentalists who were seeking a freeze or lower cap. 

Reacting on Wednesday, NFU combinable crops adviser James Mills seemed satisfied that "The [biofuels] debate is far from over." He said the vote represents "an improvement on the European Commission's initial proposal for five per cent," but added, "We still believe a potential cap coupled with ILUC factors would be misplaced as they are based on inconclusive science that would harm the future of an industry that can deliver real benefits on farm and deliver sustainable production of food, animal feed and renewable fuels."

However, Friends of the Earth spokesperson Robbie Blake said MEPs had failed in their attempts to drive EU biofuels policy in a sustainable direction. He commented, "The limits on biofuels made from food crops do not go far enough. Today's result will mean that Europe's biofuel consumption will continue to rise and continue to cause food price rises, deforestation and climate change Under intense pressure from a subsidy-hungry industry MEPs have at the last minute backed out of a more meaningful reform of Europe's failing biofuels policy"

Sharing some of the optimism displayed by the pro-biofuel NFU, he suggested that all is not lost, "However with both the European Commission and Parliament now supporting biofuel limits EU countries must follow suit and reduce food-based biofuels still further."

Bas Eickhout MEP, spokesperson for the European Greens added, "This contradictory vote ignores the overwhelming evidence that Europe's biofuel consumption is leading to the destruction of tropical rainforests, with major greenhouse gas implications. There will consequently be no guarantee that land-based biofuels perform better than conventional oil-based fuels in the near future.

"It is also seriously disappointing that Parliament voted to allow a 6 percent share of land-based biofuels like food crops in the overall fuel mix. It is highly questionable why the EU should continue promoting biofuels without putting essential climate safeguards in place."

However, he welcomed aspects of the vote, adding that the cap and moves towards ILUC accounting "[will] help steer investors and the fuel industry away from bad biofuels in the medium-term" if the measures pass unmolested on their second reading.