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Home » Business News/Analysis, European Union (EU), Marketing/Markets and Sales, Opinions, Poland, Policy

Unfair Polish Low-Priced Biodiesel Exports Continuous Damage to the EU Internal Market of Renewable Fuels Needs to Be Stopped

Submitted by on July 7, 2017 – 1:18 pmNo Comment

(European Biodiesel Board)  Since more than one year unfair low price biodiesel exports from Poland are causing serious damages to the EU internal market of renewable fuels and to fuels operators in many countries. Notwithstanding industry’s alerts to national and EU authorities, the export trend affecting the European markets is not yet stopped and is even increasing.

Polish fuel market players, deliberately exploiting a loophole of the Polish biofuels legislation are causing since more than one year significant financial damage to the biodiesel production chains in various EU countries – in Romania, first, and also in the Netherlands, Belgium, Italy, and France among others.

In Poland the accounting of a given biodiesel volume towards the national blending mandate is based on a simple invoice of purchase by the fuel distributor. As Polish law does not explicitly require the biodiesel accounted towards the blending mandate to be consumed within its boundaries, some Polish operators have been capitalising on the export of underpriced biodiesel, that has already been declared as blended. As a consequence, a large part of biodiesel volumes are counted towards EU national blending mandates twice, a first time – falsely – in Poland and then – at an unfair dumped price – in any other EU country.

As a result an increasing number of EU stakeholders – from farmers through oilseed producers and crushers, to biodiesel producers – are experiencing economic loss and very negative impacts on their businesses.

The Polish legislative loophole creates significant distortions by decreasing the overall profitability of local biodiesel producers, prompting job loss along the chain, curbing the progress in local energy and protein independence, and impacting the revenues of farmers and PMEs.

The EBB intends to express once again its strong concern about this unfair and illegal situation that remains unchallenged by EU or national competent authorities. We believe that EU authorities cannot accept anymore that European renewable legislation is infringed in a so open and wide scale dimension by an EU Member State and, worse, that an unfair implementation of EU Renewable Energy Directive is taken as a basis for unfair traffics in the EU.

Our Industrial Association has confirmed a clear cut position against such unfair traffics proceeding to the expulsion of an EBB member company being directly involved with the traffic and refusing to co-operate to fight against such unfair behaviors. In this context EBB also urges Polish national authorities to tackle the described problem, which casts a severe shadow on the concrete fulfilling of EU renewable mandates by Poland. The EBB has been collaborating on tackling this issue with a number of industry players, including sustainability certification systems, and is definitively determined to re-establish legality and fair trade on the EU biodiesel market. READ MORE

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