Sources informed Reuters that an EU investigation has begun following the alleged flow of fraudulent biofuels into the EU, this is after a complaint from Germany.
A Commission spokesman declared that the bloc intends to tighten oversight of the trade.
In an email to Reuters, the spokesperson stated that an unnamed member state reported imports from China that potentially mislabelled them as more profitable biofuels. Industry sources identified Germany as the country involved.
Concerns have arisen regarding EU incentives for biodiesel production, As a result , it has led to worries that Asian companies are mixing biofuels with cheaper oils and exporting them to Europe.
The Commission aims to enhance its oversight of the trade, planning to have a functioning database of supply chains by year-end. They will also assess whether the fuel imports qualify for greenhouse gas emissions credits.
Germany’s Environment Ministry, believed to have requested the EU investigation , did not immediately respond to Reuters’ request for comment. Germany is the largest energy consumer and biofuel importer in the EU.
The EU spokesperson stated in the email that the Commission must examine whether they meet the sustainability and greenhouse gas emission savings criteria. Currently, the Commission is investigating the allegations.
Last week, the leading European biofuels body cautioned that a surge of potentially “dubious” biodiesel imports from China could result in the collapse of the EU’s biofuels industry.
European producers and traders, who had raised concerns about the lack of oversight over Chinese imports, However , cautiously welcomed the decision.
“It’s evident that the (German) government is taking action – everyone is very hopeful,” said a senior industry source, requesting anonymity due to the sensitive nature of the matter.
