Biofuels—At What Cost?

The report finds that Spain's biofuel policies, particularly for biodiesel, have often resulted in marginal benefits and net emission increases due to a high reliance on imported fuels and feedstocks. While ethanol provided modest emission savings, the overall sector saw a GDP contraction in 2011. The study highlights that conventional biodiesel is a costly and environmentally damaging option compared to other renewable energy technologies, and recommends phasing out support for first-generation biofuels in favor of low-carbon alternatives.

• Total support for Spain's biofuel industry in 2011 was estimated between €1.168 billion and €1.239 billion, with biodiesel receiving significantly more support (€955 million to €1,002 million) than ethanol (€213 million to €237 million).
• Biofuels caused a net increase in emissions of approximately 6.5 million tonnes of CO2 equivalent in 2011, with conventional biodiesel accounting for 90% of direct emissions and 96% of total emissions when indirect land-use change (ILUC) is included.
• The carbon abatement cost for ethanol in 2011 was over €488 per tonne of CO2 avoided, while non-land-using biodiesel (such as used cooking oil) was more cost-effective at €194 per tonne.
• Spain's biofuel sector experienced a 14.7% decrease in its contribution to GDP in 2011, primarily driven by a 20.9% drop in the biodiesel sector's contribution due to increased imports and reduced domestic production.
• Biofuel policies have not significantly improved energy security because Spain relies heavily on imports; in 2011, 75% of consumed biodiesel and 73% of ethanol feedstocks were imported.
• The number of jobs created by the Spanish biofuels sector in 2011 is subject to wide estimates, ranging from 3,797 to 12,055, and the sector is generally at the lower end of employment generation compared to other renewables like wind and solar.
• Spain's biodiesel industry is largely stagnant, with only 31 of 44 plants in use in 2011, operating at only 25% of their total installed capacity.
• Single Payment Scheme (SPS) payments to Spanish farmers for biofeedstock production in 2010 totaled €190 million, with €188 million going to ethanol feedstock (mostly corn and wheat) and €2 million to biodiesel feedstock.

APA

Charles, C., Zamudio, A. N., & Moerenhout, T. (2013). Biofuels—At What Cost? International Institute for Sustainable Development. https://www.iisd.org/gsi/sites/default/files/bf_costeffectiveness_spain.pdf

Chicago

Charles, Chris, Alicia Natalia Zamudio, and Tom Moerenhout. Biofuels—At What Cost? International Institute for Sustainable Development, 2013. https://www.iisd.org/gsi/sites/default/files/bf_costeffectiveness_spain.pdf.

Wikipedia

{{cite report |last1=Charles |first1=Chris |last2=Zamudio |first2=Alicia Natalia |last3=Moerenhout |first3=Tom |title=Biofuels—At What Cost? |publisher=International Institute for Sustainable Development |date=September 2013 |url=https://www.iisd.org/gsi/sites/default/files/bf_costeffectiveness_spain.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{charles2013biofuelsat, author = {Charles, Chris and Zamudio, Alicia Natalia and Moerenhout, Tom}, title = {{Biofuels—At What Cost?}}, institution = {International Institute for Sustainable Development}, year = {2013}, month = sep, url = {https://www.iisd.org/gsi/sites/default/files/bf_costeffectiveness_spain.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }