In addition, they had to send a report to the Commission with "an indicative target for the share of the petrol and diesel market that will be taken by biofuels at the end of 2005."

The EU directive calls for a two percent reference goal and states had to explain if their targets were different.

Estonia, Finland, Greece, Italy, Luxembourg, the Netherlands, Portugal and Slovenia had not yet notified the Commission of the national law.

Italy, Luxembourg, and Slovenia had not submitted reports, while France and Estonia's reports lacked concrete targets, the Commission said.

"This is particularly unfortunate since biofuels have an important role to play in European transport and energy policy as one of the few options available for replacing oil-based transport fuels," Energy Commissioner Andris Piebalgs said.

"They tackle climate change by avoiding emissions of greenhouse gases, they diversify Europes's sources of energy and reduce dependence on oil imports, and they offer new markets for European agriculture," he said in a statement.

The Commission also rejected targets submitted by seven states, ranging from 0.0 percent to 0.7 percent, saying they did not comply with EU rules. Those countries were Denmark (0.0 pct target), Ireland (O.06 pct), Finland (0.1 pct), the UK (0.3 pct), Hungary (0.4-0.6 pct), Poland (0.5 pct) and Greece (0.7 pct).