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Lípidos Santiga v. Commission - decision

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This case relates to the European Union’s directives on renewable sources of fuel. In 2018, the EU adopted Directive (EU) 2018/2001. The directive relates to the EU’s goal of 32% share of renewable energy by 2030. In the transport sector, Member States must require fuel suppliers to supply a minimum of 14% of the energy consumed as renewable energy by 2030. The Regulation (EU) 2019/807 of 13 March 2019 , adopted in 2019, defined, among other things, how to calculate high indirect land-use change-risk (high ILUC-risk) feedstock for biofuels, bioliquids and biomass fuels. In the appellant’s view, the regulation effectively excluded palm oil biofuels from the EU market. 

On August 13, 2019, Lípidos Santiga brought an action questioning the criteria in question. On June 11, 2020, the General Court of the European Union dismissed its action for partial annulment of Regulation 2019/807 on the grounds that the company was not affected by the regulation (T 561/19). On August 24, 2020, Lípidos Santiga appealed. 

On October 21, 2021, the European Court of Justice found that the General Court correctly found that the mere fact that the measure may exercise an influence on an applicant’s substantive situation is not sufficient ground to consider said applicant as directly concerned by the measure. The Court further found that the General Court was correct in interpreting the provisions not to regulate the importation, processing, or marketing of palm oil intended for the production of biofuels. The provisions are addressed to Member States, not companies, and do not directly entail a prohibition on the use of palm oil or biofuels produced from that material. 

As a result of the adoption of the provisions at issue, Member States will in principle be prohibited, as from 1 January 2031, from including biofuels produced from palm oil for the purposes of the calculation of high ILUC-risk. Additionally, the minimum share concerns only 14% of final consumption of energy in the transport sector. As such, Member States have discretion as to the measures concerning renewable energy, including as regards high ILUC-risk feedstock such as palm oil. The Court found that the General Court correctly held that the practical consequences stem from the implementation of the measures and not from the provisions at issue. The Court therefore dismissed the appeal. 

Lípidos Santiga v. Commission

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

This sector involves the wholesale and retail selling of goods.

Social and cultural groups that share collective ancestral ties to the lands and natural resources where they live, occupy or from which they have been displaced

People with different national or cultural traditions from the dominant population

Coal is a combustible sedimentary rock formed from carbonised plant matter, rich in carbon and hydrocarbons, and occurring in several main types including hard coal and brown coal.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

A company that is owned wholly or partially by the state, typically operating in key sectors.

The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

This sector creates and distributes information and entertainment through television, radio, print, and digital platforms.

Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

The release of heat-trapping gases, primarily from human activities such as burning fossil fuels, agriculture and industry.

This sector involves activities that impart knowledge and skills to individuals, including formal schooling, vocational training and educational support.

This sector involves activities to move goods and people, alongside the storage of products.

Lípidos Santiga v. Commission - decision

Target

Impacted group

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector

Finance