Biofuels—At What Cost?
Summary
The document updates the 2011 subsidy estimates for EU biofuels, reducing the total estimated support from €9,272–€10,653 million to €5,515–€6,896 million. This correction stems from an overestimation of the volume of biofuels eligible for fuel excise tax exemptions. While budgetary support figures for bioethanol and biodiesel were lowered, other support elements, such as market transfers, remain unchanged. The report also details the calculation methodologies for excise tax exemptions and market price support via blending mandates.
Key insights
- The overall estimate for EU biofuels subsidies for 2011 was revised downward to €5,515–€6,896 million, compared to the original estimate of €9,272–€10,653 million.
- The reduction in the total subsidy estimate is primarily due to corrected figures for fuel excise tax exemptions, which were found to have erroneously overestimated eligible biofuel volumes. The updated total for fuel excise tax exemption is €2,047 million, consisting of €562 million for ethanol and €1,485 million for biodiesel.
- Other subsidy categories, including market transfers—which represent the largest type of subsidy—remained unchanged in the updated estimates.
- Market price support for bioethanol in 2011 was estimated between €318 million and €736 million, based on a price gap of €0.05–€0.12 per litre between EU wholesale prices and world average prices (minus transport and handling).
- Market price support for biodiesel in 2011 was estimated between €3,097 million and €4,060 million, utilizing a price gap of €0.22–€0.28 per litre.
Cite the original document
- APA
- International Institute for Sustainable Development (2013). Biofuels—At What Cost? https://www.iisd.org/gsi/sites/default/files/biofuels_eu_addendum.pdf
- Chicago
- International Institute for Sustainable Development. Biofuels—At What Cost? 2013. https://www.iisd.org/gsi/sites/default/files/biofuels_eu_addendum.pdf.
- Wikipedia
- {{cite report |author=International Institute for Sustainable Development |title=Biofuels—At What Cost? |date=August 2013 |url=https://www.iisd.org/gsi/sites/default/files/biofuels_eu_addendum.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{internationalinstituteforsustainabledevelopment2013biofuelsat, author = {{International Institute for Sustainable Development}}, title = {{Biofuels—At What Cost?}}, institution = {International Institute for Sustainable Development}, year = {2013}, month = aug, url = {https://www.iisd.org/gsi/sites/default/files/biofuels_eu_addendum.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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