EU Biofuels Investment Development: Impact of an Uncertain Policy Environment
(Agra CEAS Consulting) This Special Study shows that meaningful investments in biofuels in the EU ceased well prior to 2012. The data thus show that the Renewable Energy Directive itself was empirically not a stimulus for biofuels investments, which is how it is nearly universally described, but rather it caused or simply coincided with a near total abandonment by investors in EU biofuels. Thus, EU policymakers need to be aware that efforts to channel Renewable Energy Directive inspired investments from first generation biofuels to second generation biofuels may be an exercise in semantics only.
There is an old adage of a doctor emerging from the operating theatre with a smile exclaiming “The operation was a success! Yet, disappointingly the patient died.” The same appears to be happening with biofuels in that the policies being debated so earnestly by EU institutions at present all lack the stability or certainty to attract long-term investors. While the EU has the most ambitious biofuels policy in the world, outside of European Commission-funded projects and grants, biofuels investment in the EU has died. READ MORE and MORE (Ethanol Producer Magazine)