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Suspicion of biofuel fraud: Belgium requests a European investigation

To produce biofuels, European industry imports plant raw materials, including certain palm oil production waste (called POME for Palm Oil Mill Effluent). This is wastewater that comes out of oil mills and still contains organic matter. This product has been included on the list of biofuel feedstocks in the Renewable Energy Directive.

Palm oil itself, like soybean oil, has been banned from biofuels in Belgium and a series of other European countries, notably for its involvement in deforestation.

EU biofuel targets have led to increased demand for raw materials

The targets set by the EU for biofuels have led to an increase in demand for raw materials, including POME. In an informal note published on Friday, Ireland warned of suspected fraud in the sector. The total reported consumption of POME-derived biofuels in the EU would exceed the estimate of global production capacity.

Ireland therefore calls for an in-depth analysis from the European Commission and the competent authorities in the Member States. This request must be formalized on Tuesday in Luxembourg.

“We join Ireland’s request,” Tinne Van der Straeten announced on Tuesday. “We call on the European Commission to include POME in its investigation into biofuels.” The aim is to ensure that imported biofuels meet European sustainability criteria and do not undermine the integrity of EU climate policies.

In Belgium, the volume of POME increased 15-fold between 2021 and 2022. In 2023, it was 560 times higher than in 2021, according to figures communicated by Minister Groen.

The Commission announced in December 2023 the opening of an investigation into unfair practices concerning biofuels from China.

Irish demand is also supported by Luxembourg, Germany and the Netherlands.

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