Briefing

Phasing out crop-based biofuels: what it would really mean for investments and jobs

July 17, 2017

Crop-based biofuels were seen as a way to reduce the EU’s dependence on fossil fuels and decarbonise the transport sector. But emerging evidence about negative environmental and climate impacts of these biofuels has led to the European Commission proposing to gradually phase-out the policy support in the EU. Industry stakeholders argue that this would adversely affect past investments and put jobs at risk.

This briefing shows most investments in conventional biofuels were made before 2010 and capital has already been paid back or is about to be. A full phase-out of policy support for food-based biofuels in the Renewable Energy Directive by the year 2030 therefore gives ample time for the industry to adapt and shift to advanced fuels and waste feedstocks. Public support is also available to support this shift to more sustainable advanced alternatives. Furthermore, the number of affected jobs is 20 times lower than industry claims. 40% of biofuel feedstock is imported and EU farmers can adapt to a change in biofuels demand by growing other food crops.

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