EU action puts doubts over biodiesel sector

The future of the European biodiesel industry is in doubt as the EU moves to remove financial incentives for fuel companies to use biodiesel.

The EU has moved to limit the production of biofuels from food crops, and to end all public subsidies to the industry after 2020. The legislation will shortly be proposed by the European Commission for approval by EU governments and lawmakers.

It will include measures to protect existing investments until 2020 — but drew a warning from the EU’s largest biodiesel producer that it threatens an industry that supports 50,000 jobs.