Red diesel costs
Red diesel costs
PLANS to cut the sulphur content of red diesel – a move that would put up the cost by more than 10% – have moved a step closer.
The European parliament has approved an amendment to draft legislation that would reduce sulphur levels in off-road diesel from the current rate of 2000 mg/kg to just 10 mg/kg by 2008.
Refiners have argued that this would cause more problems than solutions. The technology to exploit such low sulphur content in off-road machinery is nowhere near ready, while the extra refining involved would result in more CO2 emissions at the refinery.
It would also push up costs to farmers, both through the higher price of red diesel and the fact they would have to invest in separate storage tanks for heating oil. *
Despite this, the European parliament voted through the change late last week, in the belief that "zero" sulphur fuel would help improve air quality across Europe.
Chairman of the parliaments environment committee, Caroline Jackson, expressed her frustration. "I regret that my colleagues seem so eager to improve the environment that they sometimes, as here, neglect any cost/benefit analysis," she said.
EU commissioner, Chris Patten, also said it was too soon to put red diesel on the same footing as on-road diesel.
The legislation now passes to the EUs environment council, which meets in Brussels next week. If environment ministers agree with the parliaments amendments, the directive will be adopted.
But this seems unlikely, with a number of member states, including the UK, expected to oppose the move on red-diesel until a proper impact assessment has been completed. In that case, the legislation will return to the European parliament, within three months, for a second reading.