Unsustainable Biodiesel Imports from China

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by KnowESG
KnowESG_Unsustainable biodiesel from China
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EWABA has raised concerns about unsustainable biodiesel imports from China and has urged the EU to improve its vetting processes.

The European Waste-based Advanced Biofuels Association said 11 European biodiesel plants have already halted production, and another 10 have reduced their capacity.

The EU has provided incentives for the production of biodiesel made with waste oils and fat as part of its efforts to increase renewable energy use.

At the same time, EU data and Chinese customs data have both shown a rise in imports to Europe from Chinese producers that see the opportunity provided by a strong market in Europe.

FEDIOL recently raised concerns about the rise in imported biodiesel, which has led to devastating consequences for Europe-based feedstock at the EU farm level.

The vegetable oil and protein meal industry said imports of biofuels like HVO or FAME are taking place at such a scale that this has led to disturbances in the EU markets for rapeseed methyl ester and in the rapeseed oil markets.

Over the last five months, prices for rapeseed oil have dropped significantly by over 30 % to €800 per tonne, driving down physical rapeseed prices for spot delivery from €625 per tonne to €410 per tonne over the same period.

EWABA said the EU-backed inspection mechanism has not sufficiently checked imports, and traders say spot audits in China are insufficient to ensure less sustainable materials, notably palm oil, are not used to make biofuel.

“The promotion of waste-based and advanced biodiesel has to be accompanied by effective policing and worldwide sound auditing and verification practices, thus avoiding dubious or fraudulent activity,” EWABA said.

“We will soon be on a path that will irremediably spiral into the complete collapse of the EU industry. This would result in de-industrialisation and damaging job losses.”

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Source: Biofuels International

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