EU to impose tariffs on Chinese biodiesel
Published on: Jul 31, 2024
Anti-dumping tariffs of up to 36.4% look to protect the European biofuels market.
The European Commission announced that it will impose anti-dumping tariffs of up to 36.4% on biodiesel imports from China.
Over the past two years, the European biofuels market has been flooded with imports from China, causing a collapse in the market price from around €2,250 per tonne to €1,100. A recent study by Transport & Environment showed that collection in China is as much as 30% cheaper than in Europe.
The dumping has already had devastating effects in the European market. In a few weeks, Chevron Renewable Energy Group has furloughed German workers, Shell paused the construction of a biodiesel plant in the Netherlands, BP is pausing a biofuel project in Germany and Argent Energy even closed a biorefinery, according to Biofuels International.
In response to the dumping allegations, the European Commission launched an investigation and has decided to impose provisional anti-dumping duties on Chinese biodiesel imports. These duties range from 12.8% to 36.4%, depending on the level of cooperation with the investigation. The duties are set to take effect on August 16, 2024, and will remain in place provisionally until a final decision is made in February 2025.
European biodiesel industry groups, such as the European Biodiesel Board (EBB) and the European Waste-based and Advanced Biofuels Association (EWABA), have expressed support for the EU's actions.
“Now is the time for the European Commission to act. The Fit for 55 Package will require a huge uptake for all renewable fuels and precisely at the moment they are needed, business cases for investment have collapsed. The Commission has the tools to restore the level playing field, and we are confident they will act accordingly,” said Xavier Noyon, the Secretary General of EBB.
