European Commissions finds no fraud in Chinese biodiesel imports but will boost risk management

In Belgium, the European Commission has concluded its examination of fraud allegations notified by the German authorities in 2023 in relation to biodiesel imports from China. The Commission identified some systemic weaknesses in the way certification audits have been conducted and is taking action to address these issues. Nevertheless, the information gathered did not allow confirmation of the existence of fraud. The German authorities may perform additional verifications or investigations if they wish to do so.

After obtaining a notification from the German authorities in March 2023 of the alleged fraud in imports of biodiesel from China, the Commission undertook an assessment of the situation, as required under Article 30(10) of the Renewable Energy Directive (EU/2018/2001). In close cooperation with the German authorities, it collected input from numerous stakeholders and reviewed audit reports from the voluntary certification scheme that certified the economic operators concerned. 

According to Article 30 (10) of the Renewable Energy Directive, the Commission has the obligation to take a decision whether an EU country that has initiated an examination request can count the biodiesel subject to that request towards its national renewable energy targets. 

To tackle the risk of fraud in the biofuels market, the Commission is undertaking a range of actions in the short and medium term, in particular in areas where the Implementing Regulation on sustainability certification (EU/2022/996) can be further strengthened. 

The Commission has set up a working group with EU countries under the Committee on the Sustainability of Biofuels, Bioliquids, and Biomass Fuels to reflect on a revision of the legal text. The working group has made good progress on additional measures that could better prevent fraud in the future. The Commission plans to finalize the text, after input from stakeholders, in cooperation with EU countries, in early 2026.

Furthermore, the Commission is discussing with EU countries on a timeline for the full mandatory deployment of the Union database for biofuels. This EU global traceability system is functional and is being used by an increasing number of operators, but its mandatory systemic use by all relevant businesses is a pre-condition for its success.