LONDON, June 6 (Reuters) – The European Commission is
investigating the flow of allegedly fraudulent biofuels into the
EU following a complaint from Germany, sources told Reuters, as
a Commission spokesman said the bloc was determined to tighten
oversight of the trade.
The spokesperson said in an email to Reuters that an unnamed
member state had referred imports from China that have
potentially been mislabelled as more profitable biofuels.
Industry sources named the country as Germany.
EU incentives for biodiesel production made with waste oils
and fat to increase renewable energy use has caused concerns
that companies in Asia are mixing biofuels with cheaper oils and
exporting them to Europe.
The commission aims to step up its oversight of the trade,
with a database of supply chains due to be up and running by the
end of the year, the spokesperson said, and will look into
whether the fuel imports qualify for greenhouse gas emissions
credits.
Germany’s Environment Ministry, the body industry sources
said had requested the investigation, did not immediately
respond to a Reuters request for comment.
Germany is the bloc’s top energy consumer and biofuel
importer.
EU classifications qualify the most advanced for valuable
greenhouse gas (GHG) emissions certificates that are bought and
traded by industry players at the national level. Germany is the
most valuable market in the bloc for the certificates.
“The Commission has to examine whether the sustainability
and greenhouse gas emission savings criteria are met,” the EU
spokesperson said in the email, adding that the allegations are
being investigated.
The top European biofuels body warned last week that a
flood of potentially “dubious” biodiesel imports into Europe
from China could trigger the collapse of the European Union’s
biofuels industry.
European producers and traders, who had flagged their
concerns over the lack of oversight over Chinese imports, were
cautiously optimistic on the decision.
“It’s clear that the (German) government is moving –
everyone is very expectant,” a senior industry source said, who
declined to be named due to the sensitivity of the matter.
(Reporting by Noah Browning, Editing by Louise Heavens)
