Finance Law 2007
This law provides for various fiscal incentives and financial measures to improve energy efficiency and to abate emissions.
It also established an obligation for all traditional fuel producers to supply, each year, a minimum quota of biofuels determined as a percentage of the previous year’s total supply volume. The initial quota was 1% for 2007; subsequently it was increased to 2% for 2008 and 3% for 2009. Non-compliance with the quota is subject to penalties. The Ministry of Agriculture and Forestry is responsible for verifying the fulfilment of this obligation.
The Law introduced tax allowances for purchase or installation of high-efficiency electric motors and for high-efficiency fridges and freezers. It also promotes the reduction of duty for biofuels used for transportation and fiscal incentives for enhancing energy efficiency and use of renewable energy in buildings.
The Law also established the Revolving fund for Kyoto: it provides EUR 200 million (USD 272 million) for financing measures to promote GHG emission reductions for 2010–2012 and to achieve the targets. It finances, for instance, a high-performance micro-cogeneration plant.
