Is China flooding Europe with fake biofuels?

Biofuels and the Sustainable Development Goals (SDGs)

Biofuels play a crucial role in Europe’s efforts to reduce carbon emissions in the transportation sector, aligning with the Sustainable Development Goals (SDGs). Advanced biofuels, which are made from nonfood biomass such as used cooking oils and waste lipids, are particularly important in achieving these goals.

The Growing Demand for Second-Generation Biofuels

The demand for second-generation biofuels is high in Europe, and a significant portion of the supply is currently coming from China. According to Elmar Baumann from the German Biofuel Industry Association (VDB), imports from China have doubled in the first half of 2023 compared to the previous year.

Concerns about Chinese Biofuel Imports

The sudden increase in biofuel supply from China has raised suspicions among industry experts. Claus Sauter, CEO of Verbio, one of Europe’s largest biodiesel producers, highlights the complexity of the production process for advanced biofuels. He explains that it typically takes about three years to design and construct an advanced-biofuel plant, making China’s rapid shipments questionable.

Sauter also expresses concerns about the high product quality and low prices of Chinese biofuels. He believes that cheaper palm oil may be reclassified and added to the biofuel products, undermining their sustainability claims.

European Climate Targets and Biofuels

European Union climate legislation requires the oil and gas industry, transportation sector, and other sectors to reduce their carbon footprint by 8% in 2023. Additionally, the share of advanced biofuels in the fuels they use or produce must reach at least 0.3%. Conventional biofuels made from rapeseed, soy, or cereals have limited use due to their association with food production and count only half as much towards emission reduction targets.

Price Pressure and Market Challenges

The influx of cheap biofuel supplies from China has disrupted the market and put pressure on European manufacturers. Market prices for advanced biofuels have dropped by 50% since the beginning of the year, leading to the closure of some European production facilities.

Industry experts, including Elmar Baumann, question the authenticity of Chinese biofuels and their compliance with sustainability standards. The lack of transparency in the supply chain and certification practices raises concerns about the origin and composition of these biofuels.

Palm Oil Controversy

Palm oil has emerged as a potential forbidden ingredient in Chinese biofuels. The cheap oil is associated with deforestation in countries like Malaysia and Indonesia, which are major producers and exporters of palm oil. The European Union has revised its biofuel policy to phase out palm oil-based biodiesel by 2030.

Investigations and Calls for Review

German agricultural authorities launched an investigation into the alleged fake biofuels from China and filed a lawsuit against some importers. However, by the end of June, there was insufficient evidence to support the cases. German biofuel producers are demanding a review of the certification process and the suspension of double counting for such biofuels.

Industry experts warn that the issue extends beyond biofuels and could affect other industries, such as steel, aluminum, and hydrogen. The presence of counterfeit green products from China could harm local industries and increase dependence on Chinese imports.

This article was originally written in German.

SDGs, Targets, and Indicators

1. SDG 7: Affordable and Clean Energy

   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix.
   • Indicator 7.2.1: Renewable energy share in the total final energy consumption.

2. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable.
   • Indicator 9.4.1: CO2 emissions per unit of value added in manufacturing industries.

3. SDG 12: Responsible Consumption and Production

   • Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.
   • Indicator 12.2.1: Material footprint, material footprint per capita, and material footprint per GDP.

4. SDG 13: Climate Action

   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning.
   • Indicator 13.2.1: Number of countries that have integrated mitigation, adaptation, impact reduction, and early warning into primary, secondary, and tertiary curricula.

Analysis

The issues highlighted in the article are connected to several Sustainable Development Goals (SDGs) and their targets. The relevant SDGs are SDG 7: Affordable and Clean Energy, SDG 9: Industry, Innovation, and Infrastructure, SDG 12: Responsible Consumption and Production, and SDG 13: Climate Action.

SDG 7: Affordable and Clean Energy

The article discusses the importance of biofuels in reducing carbon emissions in the transportation sector. This aligns with SDG 7’s target of increasing the share of renewable energy in the global energy mix. The use of advanced biofuels made from nonfood biomass contributes to the goal of affordable and clean energy.

SDG 9: Industry, Innovation, and Infrastructure

The production process of advanced biofuels requires specialized facilities, which relates to SDG 9’s target of upgrading infrastructure and retrofitting industries to make them sustainable. The article also mentions the need to reduce CO2 emissions in manufacturing industries, which is another target under SDG 9.

SDG 12: Responsible Consumption and Production

The article highlights the need for sustainable management and efficient use of natural resources, which is a target under SDG 12. The use of advanced biofuels made from waste and residue lipids promotes responsible consumption and production by utilizing nonfood biomass as a resource.

SDG 13: Climate Action

The article discusses the role of biofuels in reducing carbon emissions and integrating climate change measures into national policies. This aligns with SDG 13’s target of integrating climate change measures into policies, strategies, and planning. The article also mentions the need to reduce greenhouse gas emissions, which is a key aspect of climate action.

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: dw.com

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