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European Commission imposes duties on Indonesian biodiesel imports

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The European Commission has imposed countervailing duties of 8-18% on imports of subsidised Indonesian biodiesel, in an attempt to ‘restore a level playing field’ for biodiesel producers in the European Union (EU).

Following an investigation, the Commission found that Indonesian biodiesel producers currently benefit from grants, tax benefits and access to feedstock at below market prices, which could potentially cause economic damage for EU producers.

The new import duties will be imposed on a provisional basis, with the investigation set to continue with a possibility of imposing definitive measures by the end of 2019.

While most Indonesian biodiesel is produced from palm oil feedstock, the investigation will focus on the possible subsidisation of production regardless of the raw material used, the Commission noted.

The EU biodiesel market is worth around €9 billion annually, with Indonesian imports worth approximately €400 million.