Call for EU action on biofuel scam

The EU is being urged to take action to stop a biofuel trading scam that exploits US agricultural subsidies and undermines the fight against global warming, the Guardian reported on Tuesday.

Up to 10% of biofuel exports from the US to Europe are a part of the rogue scheme, which involves shipping biodiesel from Europe to the US, the Guardian said, where a dash of fuel is added, allowing traders to claim £0.11 (US$.0.21) a litre of US subsidy for the entire cargo. The fuel is then shipped back and sold below domestic prices, the report said, undercutting Europe’s biofuel industry.

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

See full story