logo
menu
← Return to the newsfeed...

The road ahead for biofuels policy

news item image
A brand new European Commission, new faces in Parliament, elections in Germany, uncertainty in France, Trump 2.0 - there is so much to talk about.
As we are making our first strides into 2025, the EU biofuels policy landscape looks poised for both optimism and considerable challenges.
The convergence of geopolitical tensions, evolving EU policies and industry innovations will shape the trajectory of renewable fuels in ways that could either accelerate or slow down progress.
All models and projections are clear, the EU demand for renewable fuels is bound to increase - the Renewable Energy Directive (RED), the European Trading Scheme (ETS), the Effort Sharing Regulation, and the ReFuel EU regulations for maritime and aviation all command more biodiesel in all its diverse applications.
Our industry will need to grow its production capacities, to invest in new technologies and with the difficulties of the two last years, confidence has been hurt.

What we don’t know: Uncertainty on the global stage

In our industry, a lot hinges on the (international) political climate. With the return of President Donald Trump to the White House, trade dynamics are likely to shift. The weaponisation of trade defence measures is a scenario that could spark a trade war, particularly between the EU and the US.
One area of contention to look out for - renewable energy. However, it might also prompt the EU to take a harder look at trade defence and the World Trade Organisation (WTO) rules — not just because they can be improved, but also because sometimes it looks like the EU is the only one abiding by them.
A small but positive sign in this area is the recent adoption of automatic registration in anti-dumping cases. The EBB has long called for this and its formalisation is a step in the right direction for ensuring fair competition in the EU market.
China's biofuel production is another area of uncertainty. Will the country continue to focus its growing biodiesel output on the EU market, or will it begin developing a domestic market for these fuels?
This remains to be seen, but it’s a critical issue for EU producers who are already grappling with competition from Chinese imports.
Another issue that the EBB has been addressing is non-compliance with the Renewable Energy Directive (RED) outside the EU.
It is hampering fair competition. As there is unequal enforcement of the same rules, there is an unequal market.
The EBB has proposed solutions that will need swift implementation in the upcoming policy revision.
The Commission, the EU member states, NGOs and even some South East Asian countries seem to be in agreement with us — this ambitious reform needs to happen in 2025.

What we look forward to: The open roads, seas and sky


As an ambitious new European Commission takes their seat, one of the most anticipated developments is the revision of the CO₂ emission standards for new road vehicles (cars, vans, trucks).
As discussions intensify around the role of renewable liquid fuels in decarbonising transport, we are seeing more positive political momentum than ever before. Thanks to the collective work of the Working Group on Monitoring Methodologies (WGMM), awareness is growing about the potential of vehicles running on 100% renewable fuels.
This could result in stronger regulatory support for biofuels as a prominent part of the solution to decarbonise road transport.
Additionally, we are poised for breakthroughs in other sectors. The maritime and aviation industries are increasingly recognising the role of renewable fuels, with mandatory objectives coming into play.
The use of HVO and FAME in these sectors could see significant growth, particularly as sustainability becomes a key consideration in global transport regulations.
Lastly, we also hope to see the promises of the revised Annex IX to the RED on intermediate crops and crops on degraded land materialise.
This new era will also be a return to the roots of biodiesel, which began as a renewable from food and feed crops.

A new year’s resolution for biofuels

As we step into 2025, one of our key resolutions is to better tell the story of the circular bioeconomy and highlight the broader value that biofuels bring to the table.
The narrative around biofuels needs to shift from being simply a renewable energy source to being recognised as a vital part of the circular economy.
The utilisation of waste materials, the production of food and feed the valorisation of by-products and the creation of valuable (bio)chemicals and energy all contribute to reducing our reliance on virgin resources.
HVO and FAME aren’t just renewable fuels — they are part of a larger, sustainable system that maximises the value of waste, residues and agricultural commodities. This process generates far more than just fuel. It’s a multifaceted approach that has the potential to drive lasting environmental and economic benefits.

A pivotal year for biofuels

This year is shaping up to be a pivotal year for the biofuels industry. On the one hand, geopolitical tensions and trade disputes, particularly with the US and China, could present challenges that slow down progress.
On the other hand, EU policy revisions, growing recognition of renewable liquid fuels and new regulatory frameworks in aviation and maritime sectors are clear opportunities for growth.
What’s crucial now is for industry stakeholders, policymakers and the public to understand the broader benefits of biofuels — not just in terms of renewable energy, but as a whole.
If we navigate the next few years with foresight, collaboration, and an emphasis on innovation, biofuels will continue to play a central role in Europe’s transition to clean energy.

For more information: Visit ebb-eu.org






211 queries in 0.995 seconds.