Growing the uptake of bio-based fuels

The cost of producing fuels from biomass is significantly higher than for equivalent fossil fuel options and unlike other forms of renewable energy, these costs have not been falling over time.

We cannot keep emissions well below 2°C without using biofuels and other bio-based energy in the coming decades. But growth prospects for these are too weak. Between 2012 and 2018, the share of biofuels used in transport in Europe barely changed, accounting for just over 5% of total transport fuel. The 2030 EU target to reach 14% renewable energy in the transport sector is structured in a way that will not provide a strong stimulus to biofuels. 

The costs of producing transport fuel are significantly higher than for equivalent fossil fuel options and unlike other forms of renewable energy, these costs have not been falling over time. And there is a lack of a consolidated policy to enable bioenergy and bioeconomy-related activities across the EU, and de-risk investments.

The challenge: How might we make sustainable bio-based fuels more competitive with equivalent fossil-derived options and support the EU goal of 14% renewable energy in transport?

Concept 3. Take action now in transport: Identify what the private sector can do by itself, today – without significant changes in infrastructure – so that decarbonisation starts immediately in the transport sector.