European farmers coalition urges crackdown on fraudulent biofuel imports
European farmers coalition Copa and Cogeca has raised concerns that the European Union’s Renewable Energy Directive (RED) has opened the door for “fraudulent” feedstocks to enter the bloc’s biofuel supply chain.
IMAGE: A POME pond in Indonesia, a major producer country and exporter to the EU. Getty Images
The coalition, which represents two major EU-based agricultural co-operatives, has called on the EU for immediate action on surging fraudulent waste and residues imports for biofuels production.
Advanced biofuels made from feedstocks listed in Part A of Annex IX in the EU's RED lack transparency but still qualify for double counting, Copa-Cogeca said.
Imported feedstocks range from used cooking oil (UCO) and palm oil mill effluent (POME) to ethanol, and have incited unfair competition against EU crop- and waste-based biofuels, the coalition argues.
Waste vegetable oils are subject to extensive global trade, “making them particularly vulnerable to fraud and weak traceability,” according to Copa-Cogeca.
“Contrary to its original purpose, the energy content multiplier - or double counting - applied under the Renewable Energy Directive (RED) transport targets is increasingly being misused, turning into an entry point for a wave of fraudulent feedstock imports,” the coalition said.
The double counting mechanism in RED incentivises palm oil demand, increasing the risk of indirect land use change (ILUC), Copa-Cogeca said.
ILUC is when biofuel production causes agricultural activities to shift into new areas, leading to the indirect conversion of natural land - like forests or grasslands - and potentially increasing greenhouse gas emissions.
The Copa-Cogeca has written to EU transport and energy ministers, as well as the European Commissioner for Energy, urging them to remove the double counting mechanism and strengthen certification and audit rules.
“While the double counting mechanism was originally designed by EU co-legislators to support the green transition, it is now raising serious concerns among European farmers and agricultural cooperatives,” it said.
Copa-Cogeca has also highlighted a need for consistency in mass balance systems throughout the entire biofuel production chain, and for new feedstock definitions under Annex IX of RED to prevent fraud.
“Without swift corrective measures, current market distortions risk pushing traditional producers out of the market, causing long-term harm to EU agriculture and food security,” it said.
By Aparupa Mazumder
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