This CETO 2025 report published by The Joint Research Centre: EU Science Hub provides an analysis of the state of advanced biofuels in the European Union. Advanced biofuels are defined in the Renewable Energy Directive (RED II) as liquid or  gaseous fuels produced from specific non-food and non-feed biomass listed in Annex IX Part A.  These fuels benefit from preferential treatment, such as double counting towards renewable energy  targets in transport, so incentivising their production and use. The promotion of advanced biofuels is key for meeting the climate objectives set out in the  European Green Deal and REPowerEU. 

The underlying legislation, RED II, sets a legally binding EU-wide target of at least 42.5% renewable energy by 2030. In the transport sector, recent revisions  require Member States to achieve a 29% share of renewable energy or a 14.5% reduction in  greenhouse gas intensity. This includes a binding combined sub-target of 5.5% for advanced  biofuels and renewable fuels of non-biological origin (RFNBOs). Key policy challenges for conventional biofuels include mitigating environmental risks, particularly  indirect land use change (ILUC), and competition with food and feed production. The EU addresses  this by promoting advanced biofuels through establishing strict sustainability criteria, limiting the use of food and feed crops, and phasing out high ILUC-risk biofuels by 2030. Sector-specific  legislation, such as ReFuelEU Aviation, mandates ambitious targets for sustainable aviation fuel (SAF).

The report concludes that the EU advanced biofuels sector is key for achieving the binding targets set by the Renewable  Energy Directive (RED III), including the target of at least a 42.5% renewable energy share by 2030. The transport sector is mandated to reach a 29% renewable energy share, which includes a binding combined sub-target of 5.5% for advanced biofuels and renewable fuels of non-biological origin (RFNBOs). This legislative certainty has driven  market expansion: the consumption of advanced biofuels quadrupled in the EU between 2019 and  2023, rising from approximately 1 Mtoe to over 4 Mtoe. Despite this growth, conventional biofuels still accounted for 63% of the total estimated EU biofuel production in 2023.

Access the report here