The Future of Biofuels: market and regulations

Biofuels, derived from organic materials, have emerged as a pivotal component in the global transition toward sustainable energy. Their role in reducing greenhouse gas emissions and enhancing energy security is increasingly recognized.

As the world grapples with climate change, biofuels offer a promising solution to reduce our carbon footprint and enhance energy security. In this article, we discuss the projections for the biofuel market and why certifications are key for organizations using biofuels.

Global Biofuels Market: Current Status and Projections

According to Statista, the worldwide consumption of biofuels is expected to increase to 203.7 million metric tons in 2024. This demonstrates the continuous growth path of biofuel consumption, forecasted to reach nearly 224 million metric tons in 2030 onward [1].

This growth is driven by accelerating demand for renewable energy sources and supportive governmental policies. By 2030, the market is expected to reach USD 207.87 billion, reflecting a robust expansion trajectory [2]. To support this anticipated growth, various policy and regulatory measures have been implemented globally.

Policy and Regulatory Developments

The European Union (EU) has been at the forefront of biofuel policy implementation. The Renewable Energy Directive II (RED II) mandates that member states ensure a minimum of 14% of the energy consumed in road and rail transport is sourced from renewable energy by 2030 [3].

Additionally, the FuelEU Maritime Regulation, which enters into force on January 1, 2025, aims to promote the use of renewable, low-carbon fuels by the maritime sector, setting maximum limits of greenhouse gas (GHG) intensity of ships calling at EU ports, independently of their flag. The gradual GHG reduction aims to reach 80% by 2050 [4].

In Asia, initiatives like the Asia Zero Emission Community (AZEC) [5], providing $1 billion in financial support to create a sustainable fuel market, highlight biofuels as key in countries’ efforts to achieve energy transition. These policies are crucial in driving the adoption of biofuels and ensuring their sustainable use.

Certifications for Biomass and Biofuels

Why are certifications so important for the biofuel industry? Several certification standards have been created to demonstrate compliance with the Renewable Energy Directive. To participate as an integral member of a RED-certified sustainable supply chain for Europe’s sustainable biofuel market, your organization can choose a certificate that suits the scope of your activities. As policies drive the growth of biofuels, certifications play a vital role in ensuring compliance and quality.

Browse our Biomass and Biofuels page to learn more about our capabilities, process and experience, or search for the right program for you via our Certification Programs page.

Conclusion

Biofuels are not just a step towards sustainability; they are a leap into a cleaner, more resilient future. As the global market continues to expand, driven by robust policies and increasing demand, the role of certifications becomes ever more critical. These certifications not only ensure compliance and quality but also build trust among stakeholders, paving the way for broader adoption and investment. By using biofuels and adhering to stringent certification standards, organizations can contribute significantly to the global energy transition.

References

[1] Statista. (2024, August 15). Global biofuel consumption volume 2000-2030. https://www.statista.com/statistics/243942/worldwide-consumption-of-biofuels/

[2] Markets, R. A. (2023, July 5). Global Biofuels Market to 2030: Favorable regulatory policies and tax incentives drives growth. GlobeNewswire Newsroom. https://www.globenewswire.com/news-release/2023/07/05/2699385/28124/en/Global-Biofuels-Market-to-2030-Favorable-Regulatory-Policies-and-Tax-Incentives-Drives-Growth.html#:~:text=The%20market%20is%20expected%20to,major%20driver%20for%20market%20growth.

[3] Renewable Energy – Recast to 2030 (RED II). (n.d.). EU Science Hub. https://joint-research-centre.ec.europa.eu/welcome-jec-website/reference-regulatory-framework/renewable-energy-recast-2030-red-ii_en

[4] Decarbonising maritime transport – FuelEU Maritime. (n.d.). Mobility and Transport. https://transport.ec.europa.eu/transport-modes/maritime/decarbonising-maritime-transport-fueleu-maritime_en

[5] Reuters. (2024, August 21). Japan signs 70 MOUs with partners on energy transition. https://www.reuters.com/business/energy/japan-signs-70-mous-with-partners-energy-transition-2024-08-21/