Regulatory framework

Substituting crude oil imports with biogenic resources means that long-term energy security and stable energy prices can be guaranteed as a basis for thriving economic development. However, the cost of manufacturing biofuels and therefore their competitive edge in international trade depends significantly on the price developments of the agricultural feedstocks required. In addition, the laying down in law of national levels for biofuels supports the establishment of a reliable global market for biofuels. EU directive 2009/28/EC mandates that 10 % of fuel consumption in the European Union must be met by renewable energies by 2020.

The European-wide market launch of biofuels in the transport sector has been largely driven by EU directive 2003/30/EC of May 2003. The directive defined indicative targets for transport fuels from biogenic and other renewable energy sources as 2 % by 31 December 2005 and 5.75 % by 31 December 2010 for all EU Member States. In 2010, Germany already covered 5.8 % of its fuel consumption with renewable energies. Governments worldwide are encouraging the manufacture of biofuels by means of tax breaks and investment incentives. Particularly when oil prices are high, biofuels enjoy an economic upswing in many countries.