EU weighs ISCC-EU certification suspension amid biofuel fraud concerns
The European Commission is considering suspending recognition of ISCC-EU certification for waste-based biofuels for 2.5 years, sparking backlash from the International Sustainability & Carbon Certification (ISCC) system.
PHOTO: European Commission spokesperson Anna-Kaisa Itkonen at a press conference today. European Commission
The ISCC says the move is “ad hoc and immature” and warns it could disrupt the waste-based biofuels market.
As good as all the sustainable biofuel sold as bunker fuel around the world today is traded with ISCC certification, supplied by ISCC-certified producers, suppliers and traders. The potential suspension could deal a huge blow to the biofuels market, and it’s not clear what would replace it, one shipping company told ENGINE.
At a press conference today, EU energy spokesperson Anna-Kaisa Itkonen confirmed that the Committee on Sustainability of Biofuels, Bioliquids, and Biomass Fuels met on Wednesday in Brussels to discuss fraud prevention, certification standards and biofuels promotion.
The meeting was confidential, but the committee discussed sustainable certification, promotion of biofuels, and the avoidance of double counting, Itkonen said.
She added that no decisions had been made yet, and the Commission could not confirm any potential scenarios of what might play out.
The ISCC, however, believes the Commission is preparing to move forward with a 2.5-year suspension, subject to further legal scrutiny and member state approval.
ISCC rejects proposed suspension
In a strongly worded statement, the ISCC rejected the proposed measure, calling it discriminatory and legally baseless.
“We are more than surprised by this step,” the ISCC said. “ISCC has been a frontrunner in implementing the most strict and effective measures to ensure integrity and fraud prevention in the market for years.”
The ISCC argued that suspending its certification would jeopardise compliance with blending mandates by limiting the availability of waste-based biofuels.
If approved, an ISCC-suspension could, at least temporarily, derail the regulation-driven growth of the biofuel bunker market, which is gaining momentum this year under the FuelEU Maritime regulation and the EU Emissions Trading System (EU ETS).
“We do not see alternatives to ISCC-EU with better or even comparable market fraud prevention mechanisms. Moreover, other voluntary schemes would not be able to fill the gap,” it said.
The organisation also claimed that proper legal procedures had not been followed, saying the lack of a prior hearing violated its rights.
“Fundamental procedural and legal rules, such as the right to a prior hearing, have not been observed,” the ISCC said.
Fraud concerns and legal uncertainty
The potential suspension comes as the EU continues to investigate alleged fraud in biodiesel imports from China, which has fuelled concerns over certification integrity.
EU spokesperson Itkonen confirmed that a clerical error had prevented the Commission from publishing the meeting details on its website but said the information would be made public soon.
If the EU approves the suspension without an alternative certification system in place, shipowners may rush to stem more biofuels to count toward their FuelEU Maritime and EU ETS compliance before ISCC Proof of Sustainability (PoS) documents are no longer recognised.
The ISCC vowed to continue its “ongoing and constructive dialogue” with the Commission and industry stakeholders to prevent further market disruption.
The EU’s final decision on the suspension, which could reshape the certification landscape for waste-based biofuels, is still pending.
By Erik Hoffmann and Konica Bhatt
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