Biofuel standards cause concern

Surging biofuel imports from Southeast Asia have raised concerns over compliance with EU market standards, with data showing 1.8 million tonnes of palm oil mill effluent (POME) entering the EU in 2023 alone.

The EU plans to halt the recognition of ISCC certifications for waste-based biofuels within the next three years. If approved by the 27 member states, affected countries will have the discretion to accept or reject ISCC certificates for biofuels produced from waste materials.

Data suggest that at least a third of ‘used cooking oil’ (UCO) sourced from Asia is more likely to be virgin palm oil, a farmed oil associated with deforestation. Its carbon footprint, according to NGOs, could be substantially worse than fossil fuels if burned in ships’ engines.

Around a third of shipping is expected to be running on biofuels by 2030, requiring nearly 300 million barrels of vegetable oil. Biofuel purports to offer a ‘drop-in’ solution to decarbonisation by allowing existing vessels to burn the fuel without retrofits. However, fraud in the industry is already discrediting their suitability as a replacement for fossil fuels, potentially leading to greater uptake of other fuels which require retrofits to ship’s machinery.