EU biofuels market hit by ‘scam’

A scam that sees EU-produced biofuels shipped across the Atlantic and back again is undermining European producers and EU climate change targets, the Guardian warns.

The scheme involves transporting biofuel to the US where a dash of fuel is added, thus allowing traders to take advantage of US biofuel subsidies, before being shipped back to the EU for sale at a cost below that of most European-produced fuel.

Up to 10 per cent of biofuel exports from the US to Europe could be involved in the scam, according to the paper.

The European Biodiesel Board uncovered the trade as part of its investigation into why British, German and Spanish biofuel producers are in financial trouble at a time when biodiesel prices remain high.

The EBB will call for EU reprisals against the US for allowing the scam to continue, the paper adds.

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