Relief as EU maintains UK access to its biofuels market

Arable farmers will benefit from continued access to the EU biofuels market after Brussels confirmed it will maintain recognition of the UK’s assurance schemes into 2024.

Such recognition has been essential to ensure that the UK complies with the EU’s Renewable Energy Directive (RED II), which sets standards and targets for producing and trading in biofuels.

See also: Red Tractor paperwork crucial to access biofuels market

In particular, RED II seeks to ensure that crops intended for biofuel production have not been produced in an environmentally damaging way.

Last June, the EU Commission said it planned to end its recognition of the various farm assurance schemes run by Red Tractor, Scottish Quality Crops, and the Agricultural Industries Confederation (AIC).

It stated that it only recognised schemes accredited in EU member states, and the UK is now regarded as an outsider.

This news triggered a concerted effort by the three assurance scheme bodies and the UK government to secure continued RED II recognition.

The EU Commission has now notified the AIC that it will postpone the implementation of the regulation that would have blocked UK biofuel exports.

Rose Riby, AIC’s head of arable marketing, said: “This positive development will be of significant relief to UK farmers, growers and businesses trading in the biofuels market and should offer some reassurance.”

She added that AIC would continue to engage with the EU Commission, members and scheme participants into 2024 “as all parties seek a more permanent solution for the industry”.

AHDB grain market analyst Olivia Bonser said that the loss of the ability to export biofuels would have had a detrimental effect on the domestic grain market, as the presence of refining capacity in the north-east of England created considerable extra demand and helped secure a price premium.