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Key Issues - Environment

Biofuels

In November 2007, the Cabinet approved the final Biofuels Industrial Strategy of the Republic of South Africa. The strategy was intended to outline government’s approach to policy, regulations and incentives relating to the introduction of biofuels into the South African fuels market. The proposed strategy is to adopt a short-term focus (five year pilot) to achieve a target of 2% penetration level of biofuels in the national liquid fuel supply, or 400 million litres per annum.

SAPIA is supportive of this strategy for the introduction of biofuels into the local on-road and off-road transport and fuel markets. The potential advantages, if appropriately managed (ie sustainably), of job creation, reduced dependence on imported fuel feedstock, reduction of greenhouse gas emissions (on a well to wheel basis) and greater energy security are recognised. However, economic realities must be taken into account. Fuel quality (fit for purpose), the objectives of the draft Vehicle Emissions Strategy (to improve air quality and promote economic growth) and the Energy Efficiency Strategy (to improve energy efficiency and promote socio-economic development) should not be compromised in the biofuels introduction process.

There are a number of prerequisites to the successful uptake of biofuels by the oil industry. These issues are documented in the SAPIA position paper on biofuels and need to be addressed effectively before the implementation of the biofuels strategy can be successful. In order to achieve success, government will need to put the necessary regulatory framework in place and SAPIA is willing to work with them on this.