UFOP rejects Germany’s reduction of cap for biofuels from cultivated biomass

In Germany, the Federal Environment Ministry’s initiative to reduce the cap on biofuels from cultivated biomass has met with incomprehension from UFOP which rejects any change to the existing regulation. Behind the utilization of rapeseed oil for biodiesel is a production and processing structure that has grown over decades and is now closely networked with other branches of industry, including the food industry.

The UFOP emphasises the importance of biofuels from cultivated biomass in the overall range of renewable fuels from residual and waste materials.

UFOP recommends that Federal Minister Steffi Lemke take a closer look at the Greenhouse Gas (GHG) Quota Act. The law, for which the Federal Environment Ministry is responsible and which has attracted international attention, has triggered a competition for efficiency. This is because the companies obliged to reduce GHG emissions are interested in achieving the best possible price-performance ratio with regard to GHG reduction. This efficiency competition, which is unique in climate policy, has reduced the quantity required to meet quotas. For example, the share of biodiesel from rapeseed oil in the biofuel mix has practically halved since 2014 compared to 2020. The payment to be made in the event of non-fulfilment of the quota (penalty) is preferably paid if the biofuel is more expensive in relation to this. This is currently the case due to the price increase on the agricultural commodity markets. The UFOP states that legal intervention is therefore not necessary because the existing legal regulations balance out the market.