The European Commission (EC) has announced that it will introduce retroactive surveillance measures on imports of renewable ethanol for fuel from several countries into the EU, a move welcomed by EU ethanol producers.
Announced on September 15, 2023, the Commission’s decision allows for a close three-year monitoring of the volume of fuel ethanol imports into the EU, which will facilitate a prompt and effective reaction in case the threat related to increased imports materializes.
Imports of ethanol for all uses to the EU increased by more than 80 percent between 2021 and 2022, with the most significant amounts coming from Brazil, the United States, the United Kingdom, and Peru.
Imports of renewable ethanol for fuel increased by 45 percent between 2021 and 2022, with a similar trend continuing in the first five months of 2023.
The Commission also highlighted that Pakistan ranks fourth in terms of quantities imported, showing the highest increase in imports at 179 percent between 2021 and 2022.
The Commission noted that the EU market is attractive to increased imports due to its high prices, 15 percent more than import prices from Brazil and the United States, the world’s two largest ethanol producers.
The ethanol industry is a strategic sector
Coupled with a combined excess capacity of 5.5 million tonnes of these two EU competitors, the European renewable ethanol industry has lost 10 percent of its share of the market.
The EU renewable ethanol industry is a strategic sector for Europe, with a significant role in tackling climate change and de-fossilizing the transport sector, boosting energy independence, and bolstering food and feed security. This Commission action is reassuring news for the sector as monthly monitoring will allow a close statistical picture of volumes of fuel ethanol imports and help the EU to act quickly to respond to a threat of serious injury to the EU industry if needed, said David Carpintero, Director General of ePURE, the European Renewable Ethanol Association.
In addition to the use of renewable ethanol to displace fossil fuel and reduce emissions from petrol and hybrid cars, there are several compelling reasons to ensure the viability of the EU industry.
By producing food and high-protein animal feed, by-products of renewable ethanol production, the EU renewable ethanol industry strengthens European food security.
Renewable ethanol biorefineries also co-produce biogenic carbon dioxide (CO2), which replaces fossil CO2in industrial applications and must be produced domestically.
Surveillance is the first step to collecting information and monitoring the evolution of imports. The EU renewable ethanol industry stands ready to act to prevent further injury to preserve its sector and jobs throughout the EU, ended David Carpintero.
