Report shows policy drivers for European biodiesel market

April 13, 2022 |

In Belgium, a new report from Expert Market Research shows favorable government policies like European Green Deal introduced in December 2019 are positively influencing the market for biodiesel. This policy aims to increase greenhouse gas savings (GHG) from biofuels from 40% to 55% making Europe climate neutral by 2050, along with the measures aimed at promoting the production of rapeseed oil and sunflower oil.

However, the European market for biodiesel witnessed a restrained growth during the historical period with limitations in the supply of soybean, which is a major seed used in the production of biofuel. The limited supply can be associated with factors like the advent of COVID-19 pandemic, which led to disruptions in supply chain and hampered imports and exports. Furthermore, Argentina is considered as one of the major suppliers of soybean in Europe but due to changes in production and consumption patterns of soybean, the market witnessed a decline.

The European market for biodiesels is being driven by the implementation of stringent policies aimed at promoting the adoption of sustainable living amidst the rising concerns regarding environment degradation. Traditional fuel combustion is considered to have a negative impact on the environment, as combustion releases toxins, which leads to problems like air pollution and health issues such as bronchitis and asthma. Therefore, policies like European Green Deal, Renewable Energy Directive (REDII), and Paris Agreement, among others aimed at increasing the use of biodiesel, which is a clean burning fuel, are collectively providing impetus to the market growth.

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Category: Policy

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