IEA says biofuel demand could be up 6% in 2022

January 9, 2023 |

In France, the International Energy Agency’s Renewables 2022 review says global biofuel demand is expected to be 6% or 9.1 billion liters per year (MLPY) higher in 2022 than in 2021. Renewable diesel makes up the largest share of this year-on-year expansion, thanks to attractive policies in the United States and Europe. Blending requirements and financial incentives support demand growth in India and Brazil, and Indonesia’s 30% biodiesel blending requirement also boosts biodiesel use in that country. 

Nevertheless, the IEA has revised year-on-year growth downwards 25% from its 2021 forecast, with price and market developments in Brazil, Finland and Sweden responsible for 80% of this downward revision. While high biodiesel prices led the Brazilian government to reduce its biodiesel blending requirements for 2021/22, in Finland high fuel prices prompted the government to temporarily lower its renewable distribution obligation for 2022/23. Sweden froze 2023 greenhouse gas targets for transport fuels at 2022 levels. However, 2030 targets remain unchanged. 

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Category: Fuels

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