(1)

In order to address the issue of indirect land use change (‘ILUC’), Directive (EU) 2018/2001 requires the Commission to adopt a delegated act to lay down provisions setting out the criteria for determining the high ILUC-risk feedstock for which a significant expansion of the production area into land with high carbon stock is observed, and for certifying low ILUC-risk biofuels, bioliquids and biomass fuels. Such provisions should accompany the report on the status of worldwide production expansion of the relevant feedstock (‘report on feedstock expansion’), submitted to the European Parliament and to the Council on this date.

(2)

ILUC can occur when land previously devoted to food or feed production is converted to produce biofuels, bioliquids and biomass fuels. In that case, food and feed demand still needs to be satisfied, which may lead to the extension of agricultural land into areas with high carbon stock such as forests, wetlands and peat land, causing additional greenhouse gas emissions.

(3)

Sustainability and greenhouse gas saving criteria set out in both Directive 2009/28/EC of the European Parliament and of the Council (2) and Directive (EU) 2018/2001 do not account for ILUC emissions.

(4)

Directive (EU) 2015/1513 of the European Parliament and of the Council (3) not only acknowledged the existence of ILUC emissions, but also recognised, despite the uncertainty in calculating them, that the magnitude of greenhouse gas emissions linked to ILUC can lead to negating some or all of the greenhouse gas emissions savings of individual biofuels, as defined in that Directive, and bioliquids. Therefore, it introduced an overall limit to the amount of those fuels produced from cereal and other starch-rich crops, sugars and oil crops and from crops grown as main crops primarily for energy purposes on agricultural land that can be counted towards targets set out in Directive 2009/28/EC. That limit consists of a 7 % maximum contribution of such fuels towards the final consumption of energy in rail and road transport in each Member State.

(5)

Directive (EU) 2018/2001 keeps the limitation on biofuels and biomass fuels produced from food and feed crops consumed in transport and strengthens it by introducing specific national limits for the total contribution of these fuels towards the Union renewable energy target for 2030. Those limits are determined by the 2020 national share of those fuels in final consumption of energy in rail and road transport in each Member State, with the possibility to increase them by one percentage point, up to a maximum of 7 %.

(6)

Directive (EU) 2018/2001 also calls for a specific limit to biofuels, bioliquids and biomass fuels produced from food and feed crops with high ILUC-risk and for which a significant expansion of their feedstock production area into land with high carbon stock is observed, in the amount of their level of consumption in each Member State in 2019. Starting from 31 December 2023, their contribution should be gradually reduced to 0 % by 2030 at the latest.

(7)

While it is widely acknowledged that there are risks arising from ILUC related to the use of food and feed crops for the production of fuels, scientific literature shows that the level of ILUC emissions depends on a variety of factors, including the type of feedstock used for the renewable fuel production, the level of additional demand for feedstock triggered by the use of biofuels, bioliquids and biomass fuels, and the extent to which land with high-carbon stock is protected worldwide.

(8)

Scientific literature also demonstrates that the impact of ILUC on the potential of biofuels, bioliquids and biomass fuels to achieve greenhouse gas emission savings is particularly pronounced for oil crops. Renewable fuels made from such feedstocks are therefore widely considered as having a higher ILUC-risk. This is reflected in Annex VIII, Part A of both Directive 2009/28/EC and Directive (EU) 2018/2001. The report on feedstock expansion, reflecting the latest best available scientific data on the worldwide expansion of the production area of food and feed crops into land with high carbon stock, confirms that these crops are also responsible for an overwhelming majority of the observed worldwide expansion of the production area of food and feed crops into land with high-carbon stock.

(9)

The report on feedstock expansion also highlights that the impact of the expansion of the production area of oil crops into land with high-carbon stock on the potential of biofuels, bioliquids and biomass fuels to achieve greenhouse gas emission savings depends on several factors. Among those, the absolute and relative magnitude of the land expansion since a specific reference year compared to the total production area of the relevant crop, the share of this expansion into land with high-carbon stock as well as the type of high-carbon stock area, play a crucial role in determining the significance of such expansion for the purposes of Directive (EU) 2018/2001. These factors, as well as the specific productivity factors for each group of crop, should therefore be taken into account when laying down the criteria for determining the high ILUC-risk biofuels, bioliquids and biomass fuels produced from food and feed crops for which a significant expansion of the feedstock production area into land with high-carbon stock is observed.

(10)

Taking into account all of the foregoing considerations, including all of the relevant scientific information and studies, the differences between the various feedstocks, the global nature of different commodities markets and the manner in which they function, the related risk of unintended or counterproductive deflection or diversion effects, the relative availability of complete data, and the periodic and frequent review of that data, as well as the relevant international obligations of the European Union, the most appropriate, objective and even-handed methodology at this stage of the regulatory process is considered to be one based on the overall worldwide position with respect to each particular feedstock, rather than an approach that would discriminate between particular countries. This represents the best achievable regulatory approach taking into account the competing but complementary objectives pursued by this regulation. Such an approach is further appropriately balanced by the possibility of low ILUC-risk certification.

(11)

In accordance with Article 26(2) of Directive (EU) 2018/2001, Member States are required to apply the criteria set out in this Regulation for determining the high indirect land-use change-risk feedstock for which a significant expansion of the production area into land with high-carbon stock is observed. They should do so on the basis of the information included in an annex, to be revised in accordance with this Regulation. The Commission should review the report on feedstock expansion regularly, to take into account the evolving circumstances and the latest available scientific evidence. The annex should be amended where appropriate.

(12)

Under certain circumstances, the ILUC impacts of biofuels, bioliquids and biomass fuels generally considered as high ILUC-risk can be avoided and the cultivation of the related feedstock can even prove to be beneficial for the relevant production areas. For such cases, it is necessary to lay down criteria to allow the identification and certification as low ILUC-risk biofuels, bioliquids and biomass fuels. Certified low ILUC-risk biofuels, bioliquids or biomass fuels should be exempted from the limit and gradual reduction set for high ILUC-risk biofuels, bioliquids and biomass fuels produced from food and feed crops, provided that they meet the relevant sustainability and greenhouse gas emissions saving criteria laid down in Article 29 of Directive (EU) 2018/2001.

(13)

Biofuels, bioliquids or biomass fuels should be considered low ILUC-risk only if the feedstock used for their production is cultivated as a result of the application of duly verifiable measures to increase productivity beyond the increases which would be already achieved in a business-as-usual scenario. In addition, these measures should ensure sustainability of feedstock in view of all requirements set in Directive 2009/28/EC or Directive (EU) 2018/2001 in relation to renewable energy targets.

(14)

As a further guarantee of the positive effects of low ILUC-risk certification, the additional feedstock to be used for low ILUC-risk fuels should be taken into account only if resulting from a limited category of measures. In particular, only measures that are financially attractive because they allow to reap the financial premium arising from such certification should be considered, in analogy with the financial additionality criteria applied under the Clean Development Mechanism of the Kyoto Protocol.

(15)

Furthermore, it is appropriate not to apply the financial additionality criterion to the additional feedstock cultivated on abandoned or severely degraded land or by independent small farm holders. This would in fact amount to an unreasonable administrative burden in light of the significant potential for productivity improvements and the barriers faced to finance the necessary investments. Therefore, measures taken on abandoned or severely degraded land or by independent small farm holders should be exempted from proving compliance with the financial additionality criteria, without prejudice to the requirement of producing additional feedstock and complying with the sustainability criteria. In light of the statistical work carried out in several analyses, including the FAO smallholders data-portrait, holdings below 2 hectares should be considered small in this context.

(16)

Only actual increases in productivity in existing or new projects resulting from measures that aim to achieve additional yields should be considered. Therefore, the certification period should be limited to a reasonable time and scope allowing for the full amortisation of the relevant investment and for the existence of robust procedures to monitor the effectiveness of the certification.

(17)

In order to ensure a smooth certification process for low ILUC-risk biofuels, bioliquids or biomass fuels, economic operators should be able to rely on robust and reliable certification rules. These rules should take into account the role of voluntary national or international schemes in line with the recast text of Article 30 of Directive (EU) 2018/2001, which strengthened the robustness of the verification that they are tasked to perform in comparison with the corresponding provisions set out in Directive 2009/28/EC. In addition to the national schemes recognised by the Commission in accordance to Article 30(6) of Directive (EU) 2018/2001, voluntary schemes may certify low ILUC-risk biofuels, bioliquids and biomass fuels as they do for the purpose of certifying compliance with the sustainability criteria set out in Article 29 of Directive (EU) 2018/2001.

(18)

In order to ensure that the information provided by economic operators is transparent, accurate, reliable and protected against fraud, overarching rules should be introduced on certification of low indirect land-use change-risk biofuels, bioliquids or biomass fuels providing for an adequate standard of independent auditing of the claims submitted by economic operators. Such rules, including on group certification, may be further specified and harmonised by virtue of the adoption of implementing acts in accordance with Article 30(8) of Directive (EU) 2018/2001,

(1)

Annex III to Regulation (EC) No 1210/2003 lists public bodies, corporations and agencies and natural and legal persons, bodies and entities of the previous government of Iraq covered by the freezing of funds and economic resources that were located outside Iraq on the date of 22 May 2003 under that Regulation.

(2)

On 14 May 2019, the Sanctions Committee of the United Nations Security Council decided to remove four entries from the list of persons or entities to whom the freezing of funds and economic resources should apply.

(3)

Annex III to Regulation (EC) No 1210/2003 should therefore be amended accordingly,

(1)

On 26 January 2015, 5 February 2015 and 23 June 2015, the Council adopted Decisions (EU) 2015/116 (1), (EU) 2015/190 (2) and (EU) 2015/994 (3) appointing the members and alternate members of the Committee of the Regions for the period from 26 January 2015 to 25 January 2020. On 18 July 2016, by Council Decision (EU) 2016/1203 (4), Mr Roger ALBINYANA i SAIGÍ was replaced by Mr Amadeu ALTAFAJ i TARDIO as an alternate member. On 8 October 2018, by Council Decision (EU) 2018/1502 (5), Mr Amadeu ALTAFAJ i TARDIO was replaced by Ms Natàlia MAS GUIX as an alternate member.

(2)

An alternate member's seat on the Committee of the Regions has become vacant following the end of the term of office of Ms Natàlia MAS GUIX,

(1)

On 26 January 2015, 5 February 2015 and 23 June 2015, the Council adopted Decisions (EU) 2015/116 (1), (EU) 2015/190 (2) and (EU) 2015/994 (3) appointing the members and alternate members of the Committee of the Regions for the period from 26 January 2015 to 25 January 2020. On 20 July 2015, by Council Decision (EU) 2015/1203 (4), Ms Monalisa NORMANN was replaced by Mr Joakim LARSSON as a member. On 30 November 2017, by Council Decision (EU) 2017/2237 (5), Mr Joakim LARSSON was replaced by Ms Agneta GRANSTRÖM as a member.

(2)

A member's seat on the Committee of the Regions has become vacant following the end of the term of office of Ms Agneta GRANSTRÖM,

(1)

On 26 January 2015, 5 February 2015 and 23 June 2015, the Council adopted Decisions (EU) 2015/116 (1), (EU) 2015/190 (2) and (EU) 2015/994 (3) appointing the members and alternate members of the Committee of the Regions for the period from 26 January 2015 to 25 January 2020. On 16 October 2018, by Council Decision (EU) 2018/1574 (4), Mr Luciano D'ALFONSO was replaced by Mr Giovanni LOLLI as a member.

(2)

A member's seat on the Committee of the Regions has become vacant following the end of the term of office of Mr Giovanni LOLLI,

(1)

By Council Decision 2006/539/EC (1), the Union concluded the Convention for the Strengthening of the Inter-American Tropical Tuna Commission established by the 1949 Convention between the United States of America and the Republic of Costa Rica (‘Antigua Convention’) (2), which established the Inter-American Tropical Tuna Commission (IATTC).

(2)

The IATTC is responsible for the management and conservation of the fishery resources of the Antigua Convention area. The IATTC adopts conservation and management measures to ensure the long-term conservation and sustainable use of the fish stocks covered by that Convention. Such measures may become binding upon the Union.

(3)

By Council Decision 2005/938/EC (3), the Union approved the Agreement on the International Dolphin Conservation Programme (AIDCP) (4), which established the Meeting of the Parties to the AIDCP. Article XIV of the Antigua Convention provides for the IATTC to have an integral role in coordinating the implementation of the AIDCP and implementing the measures that are adopted within the framework of the AIDCP. The Secretariat of the AIDCP is provided by the IATTC.

(4)

The Meeting of the Parties to the AIDCP is the body established by the AIDCP to promote the progressive reduction of incidental dolphin mortalities in the tuna purse-seine fishery in the Antigua Convention area to levels approaching zero. The Meeting of the Parties to the AIDCP adopts decisions to ensure the long term sustainability of marine biological resources associated with the purse-seine tuna fishery in the Antigua Convention area. Such measures may become binding upon the Union.

(5)

Regulation (EU) No 1380/2013 of the European Parliament and of the Council (5) provides that the Union is to ensure that fishing and aquaculture activities are environmentally sustainable in the long term and are managed in a way that is consistent with the objectives of achieving economic, social and employment benefits, and of contributing to the availability of food supplies. It also provides that the Union is to apply the precautionary approach to fisheries management, and is to aim to ensure that exploitation of marine biological resources restores and maintains population of harvested species above levels which can produce the maximum sustainable yield. It further provides that the Union is to take management and conservation measures based on the best available scientific advice, to support the development of scientific knowledge and advice, to gradually eliminate discards, and to promote fishing methods that contribute to more selective fishing and the avoidance and reduction, as far as possible, of unwanted catches, to fishing with low impact on marine ecosystem and fishery resources. Furthermore, Regulation (EU) No 1380/2013 specifically provides that those objectives and principles are to be applied by the Union in the conduct of its external fisheries relations.

(6)

As stated in the Joint communication by the High Representative of the Union for Foreign Affairs and Security Policy and the European Commission ‘International ocean governance: an agenda for the future of oceans’, and the Council conclusions on that Joint communication, the promotion of measures to support and enhance the effectiveness of regional fisheries management organisations (RFMOs) and, where relevant, improve their governance is central to the Union's action in these fora.

(7)

The Communication from the Commission to the European Parliament, to the Council, to the European Economic and Social Committee and to the Committee of the Regions ‘European Strategy for Plastics in a Circular Economy’, refers to specific measures to reduce plastics and marine pollution as well as the loss or abandonment at sea of fishing gear.

(8)

It is appropriate to establish the position to be taken on the Union's behalf in the meetings of the IATTC and the Meeting of the Parties to the AIDCP for the period 2019-2023, as the IATTC conservation and enforcement measures and the decisions of the Meeting of the Parties to the AIDCP will be binding on the Union and capable of decisively influencing the content of Union law, namely, Council Regulations (EC) No 1005/2008 (6), (EC) No 1224/2009 (7), and Regulation (EU) 2017/2403 of the European Parliament and of the Council (8).

(9)

Currently, the position to be taken on the Union's behalf in the meetings of the IATTC is established by the Council Decision of 12 June 2014 on the position to be adopted, on behalf of the Union, in the IATTC. It is appropriate to repeal that Decision and to replace it by a new Decision which would cover the period 2019-2023.

(10)

In view of the evolving nature of fishery resources in the Antigua Convention area and the consequent need for the position of the Union to take account of new developments, including new scientific and other relevant information presented before or during the meetings of the IATTC and the Meeting of the Parties to the AIDCP, procedures should be established, in line with the principle of sincere cooperation among the Union institutions enshrined in Article 13(2) of the Treaty on European Union, for the year-to-year specification of the Union's position for the period 2019-2023,

(1)

The Grains Trade Convention, 1995 (‘the Convention’) was concluded by the Union by means of Council Decision 96/88/EC (1) and entered into force on 1 July 1995. The Convention was concluded for a period of three years.

(2)

Pursuant to Article 33 of the Convention, the International Grains Council is able to extend the Convention for successive periods not exceeding two years on each occasion. Since its conclusion, the Convention has regularly been extended for further periods of two years. The Convention was last extended by decision of the International Grains Council on 5 June 2017 (2) and remains in force until 30 June 2019.

(3)

During its 49th session, which will be held on 10 June 2019, the International Grains Council is to decide on the extension of the Convention for a further period of up to two years from 1 July 2019.

(4)

It is appropriate to establish the position to be taken on the Union's behalf in the 49th session of the International Grains Council, as an extension of the Convention is in the interest of the Union,

(1)

Pursuant to Article 19(1) of Directive 2003/96/EC, Italy was authorised to apply in certain particularly disadvantaged geographical areas reduced rates of excise duty on gas oil and liquid petroleum gas (LPG) used for heating. The last authorisation was granted until 31 December 2018 by Council Implementing Decision 2014/695/EU (2).

(2)

By letter dated 31 October 2018, the Italian authorities requested authorisation to apply, in certain particularly disadvantaged geographical areas, reduced rates of taxation on gas oil and LPG used for heating purposes by way of extension of the practice followed under Decision 2014/695/EU in some areas, before that Decision would expire. The Italian authorities requested the authorisation for the period from 1 January 2019 to 31 December 2024. Additional information and clarifications were provided by the Italian authorities on 14 December 2018.

(3)

Italy has a very diversified territory with variable climate and geographical conditions. Taking into account the particularities of its territory, Italy has introduced reduced rates of taxation on gas oil and LPG with the purpose of partially offsetting the disproportionately high heating costs for residents in certain geographical areas.

(4)

The tax differentiation is based on objective criteria and aims at putting the population of the eligible areas on a more comparable footing with the rest of the population of Italy by means of reducing their disproportionately high heating costs, which are due to severe climate conditions or difficulties with fuel procurement in comparison with the rest of the Italian territory.

(5)

The reduced rates of taxation are applicable in geographical areas fulfilling one of the following criteria: (a) most severe climate conditions within the Italian territory, that is, communes falling into zone F as defined in the Presidential Decree No 412 of 26 August 1993 (3); (b) severe climate conditions combined with difficulties with fuel procurement, that is, communes falling into zone E as defined in the Presidential decree No 412 of 26 August 1993; and (c) geographical isolation combined with difficult and costly fuel procurement, that is, Sardinia and small islands. The reduced rates of taxation should only be applied until the completion of the natural gas network in the communes concerned.

(6)

The requested measure has been reviewed by the Commission and been found not to distort competition or hinder the operation of the internal market and it is not considered incompatible with Union policy on the environment, energy and transport. The reduced rate of taxation both for gas oil and LPG would remain higher than the EU minimum levels of taxation set out in Directive 2003/96/EC and would only partially alleviate the additional heating costs incurred in the geographical areas concerned.

(7)

Italy should therefore be authorised, pursuant to Article 19(2) of Directive 2003/96/EC, to apply, in determined geographical areas, reduced rates of taxation of gas oil and LPG used for heating purposes until 31 December 2024. According to that provision, each authorisation granted under that Article is to be strictly limited in time.

(8)

In order to provide the geographical areas concerned with a sufficient degree of certainty, the authorisation should be granted for a period of six years. However, in order not to undermine future general developments of the existing legal framework, it is appropriate to provide that, should the Council, acting on the basis of Article 113 of the Treaty, introduce a modified general system for the taxation of energy products to which this authorisation would not be adapted, this Decision should expire on the date on which the rules on that modified system become applicable.

(9)

In order to ensure that the measure would apply without interruption in respect of the authorisation to apply reduced rates of excise duties granted by Decision 2014/695/EU, which expired on 31 December 2018, it would be appropriate that this Decision applies from 1 January 2019.

(10)

This Decision is without prejudice to the application of Union rules regarding State aid,