Policies to Support Biofuels in Europe : The Changing Landscape of Instruments

Abstract

Until 2008/2009, biofuels were considered among the best alternatives to oil consumption in a captive market such as transport fuels. Improvement of security of supply through partial substitution of imported oil, reduction of GHG emissions, improvement of income, and employment in the agricultural and rural sectors were quoted as the main drivers of the promotion of biofuels in Europe, as well as in the United States and Brazil. In the European Union, biofuels policy was supported mainly through Directive 2003/30. This article deals with the biofuel experience in Europe, providing a general analysis of the 2003/30 Directive.