The lifeline to Europe’s biofuel industry of state subsidies is about to end.
Last Wednesday commissioners backed new environmental state aid guidelines that will ban state subsidies for Europe’s first generation biofuel production. Instead taxpayers money will only be allowed for second-generation biofuels.
The detailed guidelines can be found here.
This can come up no surprise since the commission adopted the 2030 climate and energy roadmap. first generation biofuels
Of course biofuels that can exist in the European market place without state subsidies will continue to thrive. But, a lot of resources by companies taking big bets that were dependent on the continued flow of taxpayers money into their bank accounts by way of price support are likely to be upset. By 2020 the aid cheques will stop.
France’s Commissioner Barnier was the only commissioner to vote against the proposal.