V4+ countries warn of ulterior motives for seeking biofuel blending cuts in Eastern Europe

In Hungary, although the European Union committed to phase out subsidies for fossil fuels by 2020, one spectacular last subsidy is now in the works in Central and Eastern Europe (CEE). Biofuel producers from the V4+ countries say in some CEE Member States, governments are now considering suspending, or have already suspended, biofuel blending mandates as a response, suggested by parties unnamed, to the current crisis, a crisis that threatens to reduce demand for liquid fuels to 50%.

“Suspending biofuel mandates” is a polite way of saying “substituting oiCEEl for biofuels.” With a decline in overall liquid fuel demand, demand for biofuels will fall by an equivalent amount without any government action, which is already a problem for Europe’s economies.