The European Commission has initiated an investigation into allegations of dumping of biodiesel from China into the EU market. This has led to a reduction in domestic output, which is detrimental to EU producers. If confirmed, the Commission may impose import tariffs to mitigate the effects of unfair trading practices.
The EU biodiesel industry is valued at €31 billion ($ 33.92 billion) annually, and it plays a crucial role in providing a renewable alternative to fossil fuels in the EU’s transportation sector, thereby enhancing energy security.
The launch of the anti-dumping investigation is based on a complaint by EU biodiesel producers, who have submitted evidence of biodiesel imports from China entering the EU at artificially low prices, seriously harming their industry’s competitiveness.
The EU has previously investigated biodiesel from Indonesia, suspecting it was being transshipped through China and Britain to avoid EU taxes. The European Biodiesel Board (EBB) has also raised concerns about the fraudulent flow of biofuels into the European Union.
China is the leading exporter of biodiesel to the EU, and many EBB members fear that exporters engage in large-scale fraud, falsifying Renewable Energy Directive (RED) certification.
The EBB alleges that Chinese biofuels offer no competitive advantage over EU producers and that their artificially low prices have resulted in severe dumping, causing widespread damage throughout the supply chain. The EBB President, Mr. Dickon Posnett, welcomes the anti-dumping probe and emphasizes the importance of protecting European biodiesel production.
The EU has been striving to accelerate the transition to advanced biofuels from sustainable feedstock as part of its efforts to reduce greenhouse gas emissions and improve supply security. The European Commission has also proposed a new EU-wide fuel pricing scheme based on energy content to promote the use of green biofuels and renewable hydrogen, reducing the use of food-based biofuels.
The investigation will also examine whether there has been material injury to the EU industry as a result of dumping and whether it is in the economic interests of the EU to impose measures, usually in the form of an anti-dumping duty. The outcome of the investigation is crucial for the future of the EU’s biofuels industry and its efforts to meet renewable energy targets.
The EBB expects the Commission’s assessment of anti-dumping duties to be concluded within the next seven to eight months. The EU’s decision on this issue will have far-reaching implications for the future of biofuel production in the region and its commitment to renewable energy consumption. It remains to be seen how the EU will address the complex challenges associated with biofuel trade and ensure a level playing field for all producers.
