The European Commission (EC) has found no evidence of fraud involving biodiesel imports from China after concluding its enquiry into allegations initiated by German authorities.
However, it identified some systemic weaknesses in the way certification audits were conducted and would be taking action to address those issues, the Directorate-General for Energy said on the EU’s official website on 18 July.
After obtaining a notification from the German authorities in March 2023 of alleged fraud in imports of biodiesel from China, the EC undertook an assessment of the situation, as required under Article 30(10) of the Renewable Energy Directive (RED) (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.
After reaching its conclusion, the EC said the German authorities could conduct further verifications or investigations if they wished.
Commenting on the EC’s decision, Germany’s Union for the Promotion of Oil and Protein Plants (UFOP) said the EC “could and must exert more pressure on the approved certification systems to ensure that, as part of the annual re-certification process in the supply chain, initial collectors, waste oil collectors, raw material processors and, in particular, biofuel producers are subject to stricter certification requirements”.
To tackle the risk of fraud in the biofuels market, the EC said it would be taking a range of actions in the short and medium term, particularly in areas where the Implementing Regulation on sustainability certification (EU/2022/996) could be strengthened.
A working group with EU countries had been set up under the Committee on the Sustainability of Biofuels, Bioliquids and Biomass Fuels to look into a revision of the legal text and was making good progress on additional measures that could better prevent fraud in the future, the EC said.
After input from stakeholders and in cooperation with EU countries, the EC said it planned to finalise the text in early 2026.
In addition, the EC said it was in talks 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,” the EC said.
The EC said it would also continue its technical work on fraud prevention and sustainability certification to support voluntary schemes with the implementation of the existing rules.
