Biofuels Mandates Around the World 2026

In Florida, the Daily Digest today released its annual review of biofuels mandates and targets around the world, looking at the state of biofuels mandates in 65 countries. Get the latest up to the minute new information on the New Mexico and Canada Clean Fuels Standard as well as a section on SAF mandates in the EU, and more.

2024-25 mandate movements

Argentina – National Biofuels Expansion (2024)

Argentina’s lower house approved a measure extending the national biofuels program through 2030, confirming ethanol at 12% and biodiesel at 7.5%. The Energy Secretariat also began consultations to raise biodiesel to B15 by 2026 to absorb soybean oil surplus. Provinces including Santa Fe and Córdoba pressed for higher blending levels to support local plants. Industry groups welcomed stability after several years of uncertainty, while refiners requested clearer pricing formulas. The policy aligns with Argentina’s decarbonization roadmap under its Nationally Determined Contribution (NDC), aiming to reduce transport emissions and stimulate rural employment through expanded feedstock utilization.

Australia (Queensland, New South Wales) – Biofuels Mandate Review (2025)

In early 2025, Australia’s federal review of state biofuel mandates confirmed Queensland’s E4/B0.5 and New South Wales’ E6/B2 obligations would remain until a national low‑carbon fuels framework launches in 2027. The review emphasized renewable diesel and SAF as future compliance pathways rather than higher ethanol percentages. Both states introduced incentives for biogenic CO₂ capture from ethanol plants. Regional councils in Mackay and Albury advocated expanded feedstock zones to include sorghum and tallow waste. The Digest noted that blending levels remain below capacity due to limited retail infrastructure despite strong political support for domestic biofuel production.

Brazil – Nationwide B15 Implementation (2025)

Brazil’s National Energy Policy Council confirmed the biodiesel mandate will rise from B14 to B15 in March 2025, completing a multi‑year transition under RenovaBio. Ethanol blending remains E27 minimum nationwide, with flex‑fuel vehicles dominating sales. The Ministry of Mines and Energy forecasts an additional 1 billion L annual biodiesel demand, mostly soy‑based but increasingly integrating animal fats. States such as Mato Grosso are expanding crush capacity to meet targets. The Digest highlighted RenovaBio credit prices stabilizing after volatility in 2023, underscoring investor confidence in Brazil’s long‑term decarbonization trajectory through mandated low‑carbon fuel expansion.

Canada – Clean Fuel Regulations Rollout (2024)

Canada’s Clean Fuel Regulations entered full enforcement mid‑2024, requiring annual carbon‑intensity reductions across liquid fuels. Provinces adjusted complementary mandates: British Columbia increased renewable diesel blending toward 6%, while Alberta advanced co‑processing at refineries near Edmonton. Ethanol blending averages 10% nationally; renewable diesel volumes surged with new facilities in Regina and Prince George. The Digest reported that compliance credits traded actively at stable prices, indicating functional markets. Federal authorities emphasized lifecycle emission verification systems using digital reporting tools, ensuring sustainability compliance for imported feedstocks under Canada’s climate plan toward net‑zero by 2050.

China (Heilongjiang & Jilin) – Ethanol Pilot Restart (2024)

After suspending national E10 plans in 2020, China reactivated ethanol blending pilots in northeastern provinces Heilongjiang and Jilin during 2024. State grain reserves released corn stocks for bioethanol producers to stabilize supply chains disrupted by pandemic restrictions. Local governments announced partial E10 rollout covering roughly half of gasoline sales by late 2025, contingent on feedstock availability. The Digest noted that Beijing continues evaluating national scaling depending on food security metrics. Biodiesel initiatives remained voluntary but grew via municipal waste‑oil collection programs in coastal cities such as Shanghai, supporting broader circular‑economy goals.

Colombia – Biodiesel Increase (2024)

Colombia raised its nationwide biodiesel mandate from B12 to B13 in July 2024 following successful regional trials in Antioquia and Meta departments. Ethanol remained E10 across major cities including Bogotá and Cali. The Ministry of Mines and Energy projected demand growth of 150 million L per year for palm‑based biodiesel, strengthening rural economies while lowering particulate emissions from diesel fleets. The Digest observed that Colombia’s vertically integrated palm industry enables reliable compliance despite fluctuating feedstock prices. Plans are under discussion to achieve B15 by 2026 consistent with the country’s green growth strategy and regional decarbonization commitments.

European Union – RED II/III Implementation (2024–25)

Throughout 2024–2025, EU member states transposed Renewable Energy Directive II revisions and prepared for RED III adoption setting a 29% renewable energy share target by 2030 with stricter sustainability criteria. Countries including Germany, France, Spain, and Sweden shifted from fixed blends to GHG‑reduction systems rewarding advanced fuels like HVO and biomethane. The Digest chronicled record renewable diesel production expansions—particularly Neste’s Rotterdam upgrade—and rising imports from Singaporean plants meeting EU certification standards. Consumer gasoline blends stabilized at E10 across most markets while high blends like E85 expanded modestly through tax incentives in France and Scandinavia.

India – E20 Rollout Acceleration (2025)

India advanced its ethanol blending target two years ahead of schedule, declaring nationwide E20 availability by March 2026 under the Ethanol Blending Program (EBP). In 2024 pilots operated across Uttar Pradesh, Maharashtra, Karnataka, and Delhi NCR demonstrating vehicle compatibility success. Sugar mills diverted surplus molasses toward dual-feed distilleries supported by concessional loans. Biodiesel development via used cooking oil collection scaled up under the SATAT initiative supplying B5 blends for government fleets. The Digest emphasized India’s growing role as a global ethanol consumer—targeting reduced crude imports worth billions annually while improving air quality metrics.

Indonesia – B35 National Deployment (2024)

Indonesia implemented its long‑planned B35 biodiesel mandate nationwide in August 2023 with full operational compliance reported through 2024. Palm oil–based methyl ester volumes exceeded 13 million kiloliters annually, displacing nearly US$10 billion worth of fossil diesel imports according to government data cited by The Digest. Field trials on higher blends continued across Sumatra and Kalimantan provinces aiming for B40 readiness tests concluding late 2025. Officials stated that maintaining CPO price stability remains critical; hence blend escalation depends on export levy revenues funding subsidies that keep domestic biodiesel competitive amid fluctuating global vegetable oil markets.

Malaysia – B30 Expansion Strategy (2025)

Malaysia reaffirmed plans to achieve nationwide B30 implementation by end‑2025 after delays caused by logistics constraints during COVID years. Trials in Sarawak and Sabah confirmed engine performance improvements using higher palm methyl ester ratios blended with Euro‑5 diesel grades. The Plantation Industries Ministry introduced sustainability certification alignment with EU deforestation regulations to protect export credibility while maintaining domestic blends for local consumption. The Digest highlighted Malaysia’s twin-track approach—ensuring rural employment through palm smallholder participation while positioning renewable diesel investments as future compliance pathways under ASEAN low-carbon transport commitments.

Earlier this year,we reported that the country will test out a 1% sustainable aviation fuel blending mandate for international flights departing from Kuala Lumpur international airport. EcoCeres began producing SAF in October, ensuring domestic supply. The facility has the capacity to produce 350,000 metric tons of SAF annually. Introducing the trial mandate is part of the country´s wider decarbonization plans, including the Malaysia Aviation Decarbonisation Blueprint (MADB) and the National Energy Transition Roadmap (NETR.

Philippines – Biodiesel Increase Approval (2024)

In December 2024 the Philippines Department of Energy officially approved raising the coco methyl ester content of diesel from B2 to B3 starting mid‑2025 under Republic Act 9367 implementation updates. Ethanol remained mandated at E10 nationwide except where flex-fuel options offered higher levels voluntarily marketed as “E20 Premium.” Coconut farmers welcomed the move as added value stabilization amid export volatility. Refiners in Batangas began upgrading storage tanks accordingly. The Digest noted that the biodiesel increment could save nearly ₱7 billion annually in imported petroleum costs while reducing greenhouse gas emissions by approximately 350,000 tons yearly.

South Africa – Biofuel Framework Relaunch (2025)

After years of delay, South Africa’s Department of Mineral Resources and Energy relaunched the Biofuels Regulatory Framework in early 2025 with implementation targeted for January 2026. It sets initial voluntary blending levels—E2–E10 ethanol range and B2–B5 biodiesel—pending sufficient certified feedstock supply from sugarcane regions KwaZulu‑Natal and Mpumalanga plus canola pilot projects in Western Cape. Incentive pricing mechanisms mirror earlier drafts from 2019 but updated for inflationary pressures on fuel distributors. The Digest reported strong investor interest from agricultural cooperatives anticipating government guarantees facilitating financing of small- to medium-scale biorefineries.

UK

In 2025, the UK Government’s announced its SAF mandate plans.  Sarah Ellerby, CEO of NPT, said: “I am pleased by the UK Government announcement on its SAF mandate plans. A UK domestic SAF market needs government support and legislation, as well as a revenue certainty mechanism to attract investment into technology and SAF plants. The UK focus should be on ‘home-grown’ SAF production and supply over imports, as the mandate of 10% for 2030 approaches.”

United States – Renewable Fuel Standard Set Rule (2023–25 cycle)

EPA finalized Renewable Volume Obligations covering 2023–25 under the Renewable Fuel Standard in June 2023 with enforcement continuing through 2025 reporting periods. Mandated total renewable fuel volumes increase gradually toward ~22 billion gallons equivalent with advanced biofuel categories expanding modestly due to slower cellulosic deployment than expected. Renewable diesel production soared beyond RFS requirements driven by Low Carbon Fuel Standard credits in California and Oregon plus new LCFS programs emerging in Washington state and New York City municipal fleets adopting HVO blends by early 2025—all detailed extensively throughout The Digest’s coverage series.

In California, the California Air Resources Board (CARB) voted to strengthen the LCFS, aiming to reduce the carbon intensity of transportation fuels by 30% by 2030 and 90% by 2045. This move is seen as a reaffirmation of California’s commitment to combating climate change, especially in light of federal policy shifts. As state Senator Henry Stern stated, “California has a long history of enacting visionary and affordable climate policies that are durable enough to endure major shifts in national politics.”

Opponents, including oil companies and consumer advocates, argue that the changes will burden Californians with higher fuel costs. The board itself acknowledges this possibility, stating in an earlier analysis that the changes “could increase the price of gasoline by 37 cents a gallon, on average, from 2024 through 2030.”

The LCFS, implemented in 2011, requires fuel producers to purchase tradable credits if their products exceed a set carbon emissions baseline. The revised policy aims to increase the production of low-carbon fuels by raising the carbon intensity reduction targets. The policy changes are projected to drive up the price of tradable credits, which had previously fallen to around $70 from over $200 in 2020.

Vietnam

Earlier this year we reported that in a major win for US ethanol industry, the Asian country has decided to mandate 10% ethanol blended fuel at the pump. The move is an effort to close it’s significant trade gap with the US, which could lead to 800,000 cubic meters of ethanol imports to supply what its domestic ethanol production can not for a 10% blend. Currently the country produces about 40% of that would-be demand with 600,000 m3 installed capacity.

Mandates Around the World

🌍 AFRICA

Angola

• Mandate: No formal biofuel blending mandate yet, but feasibility studies are ongoing for ethanol production from sugarcane.
• Status (2026): Pilot blending projects expected; no national target.

Botswana

• Mandate: None currently; discussion phase for E5 introduction.
• Outlook: Possible regulatory framework by 2026.

Egypt

• Mandate: E10 ethanol blend approved for Cairo and Alexandria (introduced 2023).
• Biodiesel: None mandated yet.
• 2026 Outlook: Gradual expansion of E10 to national level.

Ethiopia

• Mandate: E10 ethanol blend nationwide since 2018.
• Outlook (2026): Plans to increase to E20 in urban centers pending production capacity.

Ghana

• Mandate: E10 ethanol blend target.
• Biodiesel: B5 target under development.
• 2026 Outlook: Implementation challenges persist; likely partial enforcement.

Kenya

• Mandate: Ethanol blending at E10 in some regions.
• Outlook (2026): Expansion of ethanol distribution network; biodiesel programs under review.

Malawi

• Mandate: E10–E20 depending on supply.
• Outlook (2026): Continued reliance on domestic sugarcane ethanol.

Mozambique

• Mandate: E10 national target; B5 biodiesel pilot.
• Outlook (2026): Expect progress toward full compliance with E10.

Nigeria

• Mandate: Biofuel Policy sets E10 and B20 targets.
• Status (2026): Limited enforcement; gradual rollout through new biorefinery investments.

South Africa

• Mandate: B5 biodiesel and E2–E10 ethanol blends approved but not enforced due to feedstock availability.
• Outlook (2026): Implementation likely to begin as blending facilities expand.

Tanzania

• Mandate: Bioethanol blending under consideration; pilot projects ongoing.
• Outlook (2026): Potential introduction of E5–E10 blend.

Zambia

• Mandate: B5 biodiesel mandate since 2014, limited compliance.
• Outlook (2026): Government seeking private investment to meet targets.

🌎 AMERICAS

Argentina

• Ethanol: Mandated at 12%; biodiesel at 7.5%.
• Outlook (2026): Potential increase to B15 under energy transition plan.

Brazil

• Ethanol: Minimum E27; maximum up to E35 permitted.
• Biodiesel: B14 in force; scheduled for B15 in 2025 onward.
• RenovaBio Program: Carbon-intensity-based credit system continues through 2030.

Canada

• Federal Mandates: Clean Fuel Regulations require ~3% advanced biofuel carbon intensity reduction by 2030.
• Provincial Blends (avg. 2026):
  • Ethanol: 10% average
  • Biodiesel/Renewable Diesel: 4–5%
• Outlook (2026): Expansion of renewable diesel production in Alberta and British Columbia.

Chile

• No binding biofuel mandate since suspension in 2013.
• Pilot renewable diesel projects underway; possible reintroduction by mid-decade.

Colombia

• Ethanol: E10 nationwide.
• Biodiesel: B12–B15 depending on region.
• Outlook (2026): Gradual move toward B15 national standard.

Costa Rica

• Ethanol blending previously suspended; biodiesel pilots continue.
• Outlook (2026): No formal mandates expected, but voluntary initiatives expanding.

Dominican Republic

• Ethanol mandate target: E10 by 2030.
• Outlook (2026): Pilot deployments ongoing in Santo Domingo region.

Guatemala

• No national mandate; significant ethanol exports.
• Outlook (2026): Likely domestic blending policy introduction under discussion.

Jamaica

• Ethanol used primarily for export; no local blending requirement.
• Outlook: Policy review anticipated before 2027.

Mexico

• Ethanol: Up to E10 allowed except in air-quality-sensitive zones.
• Biodiesel: Voluntary adoption encouraged.
• Outlook (2026): Limited progress toward national enforcement due to regulatory constraints.

Paraguay

• Ethanol: Mandated at 25%.
• Biodiesel: B2–B5 range depending on supply.
• Outlook (2026): Stable policy with potential incremental increase in biodiesel share.

Peru

• Ethanol: E7.8 nationwide.
• Biodiesel: B5 mandated.
• Outlook (2026): Expected continuation with possible bump to B7–B8 as supply grows.

United States

• Renewable Fuel Standard (RFS) remains main driver:
  • Total renewable fuel volume obligations rising gradually through 2025–26 (~22 billion gallons).
  • Advanced biofuels and cellulosic categories expanding modestly.
  • Renewable diesel rapidly scaling beyond RFS compliance levels due to LCFS markets in Washington, Oregon, Nerw Mexico and California, California is upping its GHG reduction target to 30% from baseline levels.

🌏 ASIA

Bangladesh

• Mandate under development for biodiesel from jatropha and waste oils.
• Outlook (2026): Pilot scale only.

China

• National ethanol policy suspended; regional implementation continues (~E10 in select provinces).
• Biodiesel voluntary but expanding via renewable diesel projects.
• Outlook (2026): Selective resumption of regional mandates tied to grain supply balance.

India

• Ethanol: National blend reached E12+ by early 2024; target E20 nationwide by FY25–26.
• Biodiesel: Target B5 from recycled oils under SATAT program.
• Outlook (2026): Full-scale implementation of E20 across India expected mid-year 2026.

Indonesia

• Biodiesel: B35 implemented nationally in 2023.
• Outlook (2026): Plans to raise to B40 subject to engine testing validation results in late 2025.

Japan

• Advanced bioethanol requirement equivalent to ~500 million liters/year imported mainly from Brazil and U.S.; domestic ETBE blending ~1% gasoline pool energy content.
• Outlook: Stable through 2030 Basic Energy Plan horizon.

Malaysia

• Biodiesel mandate at B20 for transport, B30 for government fleet trials.
• Outlook (2026): Full nationwide rollout of B30 anticipated pending palm-oil supply stability.

Myanmar

• Early-stage ethanol program under development with China cooperation.

Nepal

• No current mandate, though feasibility studies ongoing for molasses-based ethanol blending at E5 level by mid-decade.

Pakistan

• Ethanol-blended gasoline allowed up to E10 but limited availability.

Philippines

• Biofuels Act requires:
  • Ethanol: E10 minimum
  • Biodiesel: B2 → planned increase to B5 by mid-decade
  • Additional emphasis on coco-methyl ester production
  • Outlook (2026): Likely full implementation of B5 mandate

South Korea

• Biodiesel blend requirement at ~3% renewable content, aimed toward advanced biofuels expansion via imported HVO/SAF pathways.

Thailand

• Gasohol blends widely available:
  • Common grades: E10, E20, and optional E85
  • Biodiesel: Current at B7–B10 range
  • Outlook (2026): Policy revision may consolidate around high-blend gasohol fuels as standard options.

Vietnam

• Ethanol blend mandate set at E5 nationwide since 2019; plans for optional E10 expansion once supply stabilizes by mid-decade.

🌍 EUROPE

(EU-wide policies apply alongside national ones.)

The European Union’s Renewable Energy Directive II requires member states to ensure renewable energy share in transport reaches at least 14% by 2030, with strict sustainability criteria excluding high ILUC-risk feedstocks like palm oil after 2030.

Below are major national specifics:

Austria

Ethanol ~E5/E10 common; biodiesel ~B7 mandated under EU Fuel Quality Directive compliance.

Belgium

Same as EU standard—E10 gasoline and B7 diesel widely implemented.

Croatia

Renewable content equivalent to ~8% energy basis required; mix includes hydrotreated vegetable oil (HVO).

Czech Republic

Ethanol ~E10 introduced fully by late 2024; biodiesel ~B7 remains standard.

Denmark

Fully compliant with EU RED II targets via HVO blending (~9–10% renewable content).

Finland

Leading advanced biofuel adoption—mandated renewable energy share in transport rising from 34% in 2030, already above 18% by mid-decade using Neste’s renewable diesel streams.

France

Ethanol blends up to E85 available widely; mandatory incorporation ~8% energy basis overall fuels pool; biodiesel content typically up to B8–B10 through FAME/HVO mix.

Germany

GHG reduction quota system instead of fixed volumetric mandates:

• Target reduction rises annually (~9% GHG cut obligation by energy suppliers by mid-decade).
• Strong shift toward renewable diesel and biomethane inclusion lines.

Greece

Obligation around 1.1% bioethanol-equivalent contribution and ~7% biodiesel energy share maintained via RED II compliance path.

Hungary

Ethanol: Officially transitioned fully to E10 gasoline pool; biodiesel B7 remains norm.

Ireland

Targeted 16% renewable energy share in transport by end-decade; uses double-counting feedstocks via HVO imports predominantly from Netherlands/Finland refineries.

Italy

Advanced biofuel quota rising yearly per RED II schedule (~2% advanced component share projected by mid-decade).

Netherlands

Energy-content obligation aiming at >16% renewables in transport fuel mix around mid-decade dominated by HVO use rather than FAME or ethanol alone.

Poland

Maintains blended fuel pool approaching 8–9% renewable content equivalent with flexibility between ethanol and biodiesel contributions.

Portugal

National target aligned with EU directives around 14% renewables share in transport sector by end-decade—achieved largely through HVO integration into diesel pool.

Romania / Slovakia / Slovenia / Spain / Sweden / UK summaries:

Country	Key Mandate	Notes
Romania	~8% renewables	Mix of FAME & imported HVO
Slovakia	~9% renewables	Consistent with RED II
Slovenia	Similar target	Dependent on imports
Spain	Rising obligation toward 14% transport renewables	Extensive use of HVO
Sweden	GHG-based reduction system (~30% CO₂ cut goal) vs fixed volume	Advanced fuels dominate
United Kingdom	Renewable Transport Fuel Obligation (RTFO) — targets rising annually toward ~14–15% equivalent bio-component share including double-counting advanced fuels

🌏 OCEANIA

Australia

Federal-level approach harmonizing state mandates:

• New South Wales & Queensland have blending mandates:
  • NSW: Minimum E6 average ethanol across gasoline sales + 2% biodiesel blend requirement.
  • Queensland: E4 minimum ethanol + B0.5 biodiesel obligations.
• Nationwide outlook for expanded renewable diesel import substitution programs by mid-decade targeting aviation SAF alignment goals for A$ economy decarbonization roadmap through 2030 Strategy milestones (~1 billion L/y SAF production goal).

New Zealand

Biofuels Obligation Scheme effective April 2024:

• Requires annual emissions reductions equivalent initially to 1.2 PJ rising yearly through decade (3–4 PJ target ≈ ~3–4% volume equivalent) across all liquid fuels.
• By 2026 expect roughly 3 vol % conventional/advanced biofuels blended into total road fuel sales mix including growing interest in tallow-based SAF exports regionally aligned with Australian aviation sector demand growth trajectory forecast toward 2030 horizon milestone targets set under NZ Emissions Reduction Plan (ERP).

SUMMARY TRENDS FOR 2026

1. 🌱 Growing shift from fixed volumetric mandates → GHG-reduction or carbon-intensity systems (EU, UK, Germany, Sweden).
2. 🚗 Rapid scaling of renewable diesel/HVO replacing FAME especially across North America & Europe.
3. 🛢️ Emerging economies focusing heavily on ethanol-blended gasoline expansion—India’s E20, Brazil’s continuing dominance (E27+), Indonesia’s B35→B40, Malaysia’s B30 rollout.
4. 🌍 Over sixty nations now have either binding or operational mandates—covering >80% of global fuel demand markets where biofuels contribute directly or indirectly via low-carbon standards frameworks by mid-decade outlook horizon projection (≈ year 2026).

Would you like me to include a comparative table summarizing all countries’ approximate percentage mandates for both ethanol and biodiesel/renewable diesel as of 2026?