The European Commission (EC) has concluded its investigation into suspected irregularities in Chinese biodiesel imports, initially reported by German authorities in March 2023. The probe, prompted by concerns over certification processes, identified weaknesses in how audits were conducted under the voluntary certification framework. While the EC found no definitive evidence of fraud, it encouraged German authorities to pursue further inquiries if needed.

Following Germany’s notification, the EC assessed the situation as required by Article 30(10) of the Renewable Energy Directive, which determines whether reported fuels can contribute to national renewable energy targets. The Commission collaborated with German officials, gathering input from stakeholders and reviewing audit reports to evaluate the certification process for the involved economic operators.

To address potential risks in the biofuels market, the EC plans to implement corrective measures in the short and medium term, focusing on strengthening the Implementing Regulation on sustainability certification (EU/2022/996). The Commission has established a working group with EU member states under the Committee on the Sustainability of Biofuels, Bioliquids, and Biomass Fuels to propose legislative updates. “The group has made solid progress on new measures aimed at strengthening fraud prevention, with a finalized legal text anticipated to see the light of day in early 2026,” the EC stated, highlighting advancements in regulatory oversight.

The EC is also advancing the Union biofuel database, a global traceability system already in use by many operators. Discussions with member states are ongoing to set a timeline for its mandatory adoption, which the EC considers essential for its effectiveness. “Technical work on fraud prevention will continue as well as the effective sustainability certification to support the voluntary schemes with the implementation of the existing rules,” the EC noted, emphasizing that consistent application by certification bodies is key to addressing identified issues.

Biofuels are gaining attention in the shipping industry as a compatible alternative to fossil fuels, supporting decarbonization efforts while zero-emission technologies like green ammonia remain under development. According to Rystad Energy, maritime biofuel demand could reach 140 million tonnes of fuel-oil equivalent by 2028. However, the firm projects total biofuel production capacity at 120 million tonnes, potentially dropping to 40 million tonnes when prioritizing sustainable, second-generation biofuels. A coalition of 69 NGOs, in February 2025, raised concerns about first-generation biofuels, noting: “Many first-generation biofuels rely on crops such as soy and palm oil, which are associated with deforestation, land grabs, and increased lifecycle emissions through land-use change.” These concerns highlight the need for careful regulation to ensure biofuels contribute to genuine sustainability.