Where Do We Stand Now?

In September 2011 the European Commission agreed to delay implementation of indirect land use change (ILUC) penalties until 2018. Overall existing investments in biofuels have become a $20 Billion + business in the EU. The EU policymakers are unable to agree which feedstocks will be considered acceptable in meeting the EU’s biofuel targets. The EU biodiesel industry currently depends on a mix of primarily palm, soybean and rapeseed. But in general all feedstocks would be in jeopardy under proposed indirect land use change provisions. On one hand the EU wants to be very careful to allow certain feedstocks to be qualified as biofuels. Simultaneously however emission caps aimed at oil refiners, utilities and coal mines are pushing the polluters towards greater use of biofuels.