Farmers as well as bio-fuel producers have been left wary of the proposed cap on bio-fuels from crops such as rapeseed oil and wheat, reported Reuters.

In a letter to Commission, EU farm groups and bio-diesel producers president Jose Manuel Barroso highlighted that the plan would result in the loss of employment and may lead to disappearance of the bio-diesel sector.

The commission had taken bold measures last month capping the share of crop-based fuels in the transport sector to 5 percent up to 2020, a limit that is now set to be raised to 7 or 8%.

EU lawmaker from Luxembourg Claude Turmes told Reuters, ""It is very likely now that without major pressure, the 5 percent limit will be moved up closer to 7 or 8 percent."

The proposed limit on crop-based fuels is part of wider EU rules designed to address the indirect climate impacts of bio fuels, known as indirect land-use change.

 

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