Fighting hard

Xavier Noyon, the secretary general of the European Biodiesel Board, the largest trade association representing producers of HVO and FAME in the EU, spoke to Biofuels International about the recent developments in the EU policy landscape and zoomed in on trade measures emerging from Brussels.
As the new European Commission is finding their footing, can we already predict what it means for the sector?
The installation of the new European Commission is well on its way – and they have quite a daunting task ahead. If you only look at the documents that detail what specific Commissioners will need to deal with, the socalled “mission letters”, you will see there is a lot to do. If I had to pick one highlight, I would reference the letter to Commissioner-designate for Climate, Wopke Hoekstra. It refers, amongst many other things, to the CO2 standards for vehicles and takes important steps towards technology neutrality. However, there is currently a narrow interpretation of “carbon neutral fuels”. This is something to address. Of course, the new Commission will build on the work of the outgoing ones, but we can also expect some changes. A renewed focus on (re) industrialising Europe seems to emerge. The strategic independence of Europe is high on the agenda. One example of that is the recent report by former Italian prime minister Mario Draghi. He suggests an EU action plan for industrially revitalising the automotive sector. This confirms to us what we’ve been saying – the EU cannot afford to choose between climate and the economy; between sustainability and affordability – we must do both.
For Europe’s climate ambitions and industrial strength to go hand in hand, what will that mean for biodiesel producers?
What industry actors need is predictable and coherent legislation. Currently, we are working with a set of complex rules. We hope to improve the coherence, while respecting that the Commission has a lot to take into account – especially at the beginning of a new mandate. We also see governments recognising the need for clarity. Only a few weeks ago a coalition of 11 member states – the Friends of Renewables group – sent out a communique asking for a post-2030 vision in the revision of the RED. However, we would be keen to emphasise the largest (31%) final energy consumer in the EU – transport. Within that, road transport is the largest, responsible for 74% of all energy consumption in transport. We are asking for is a clear plan for road transport post-2030. Most prominent in this is the Renewable Energy Directive (RED). In six years time, Europe must have collectively reduced its GHG intensity in transport by 14.5% or the final consumption of energy in the transport sector must be at least 29% renewable. To do that, we need to displace fossil fuels swiftly, and, therefore, the EU would need to allow the broad use of all fuels compliant with RED to be used in all modes of transport. That would mean a major shift. Not just in policy, but also in real terms there is work to do. Figures from Eurostat show us that renewables (including biofuels) account for only 6% of energy in road transport in the EU. In comparison, that is 65% for fossil gas/diesel oil. In practical terms, we should really need to start scaling now. According to the models of the IEA, liquid biofuel use would need to nearly double by 2030 (1.9 times) to be on track for net-zero ambitions by 2050.
We have seen a lot of trade developments as well. Can you expand on that?
For over 16 years, the EBB has been fighting against unfair competition from third countries, to ensure the longterm viability of the EU biodiesel industry, protect jobs across the EU-27, R&D and progressive independence over fossil fuels. I think everyone in the industry has seen the anti-dumping measures on biodiesel (HVO and FAME) from China and is closely watching the import data. We believe data suggests the trade measures against dumping of Chinese HVO and FAME are working. I see this as a key example of the Commission’s ability to act and implement measures when necessary. We must now remain vigilant, as we also see existing loopholes being used to evade duties – and we will address those as well. In terms of process, we expect to see the definitive duties locked in place next year. The EBB has also obtained a favourable judgement from the Court of Justice in our case against biodiesel from Indonesia. The court confirmed the adopted trade measures are compliant with trade law, and rejected the appeal made by Indonesian exporters. This positive ruling comes at a critical moment in time, as the countervailing duties will soon expire unless an expiry review investigation concludes there is a need to extend them for another five-year period. As the industry association for our sector, we remain committed to fight against any unfair trading practices that could jeopardise the full development of the EU biodiesel industry.

For more information: Visit ebb-eu.org