Brussels, 20 December 2023: Following an official complaint by the European Biodiesel Board (EBB) in November, the Office of complaint of DG TRADE has announced the opening of an Anti-Dumping investigation into the imports of Chinese biodiesel.
In 2023 China was the largest exporter of biodiesel to the EU. As a result of a resulting slump in the EU market, many members of EBB raised concerns about large-scale fraud involving certification under RED. This led to the Commission and OLAF to open investigations into the circumvention of duties on Indonesian biodiesel through China. However, EBB also believes there are structural imbalances in the trade of Chinese biodiesel to Europe and is now supporting the European Commission in making sure that the European biodiesel producers can compete with their Chinese counterparts on a level playing field in respect of international trade laws.
“We at EBB are resolute that the European biodiesel industry will not tolerate these kinds of highly damaging unfair trading practices, and we will not cease to fight to protect our biodiesel production from them. Those unfair practices are causing serious injury to our producers at a time where the climate objectives of the EU require more sustainable biodiesel than ever. The EBB stands for fair trade practices and welcomes this announcement from DG Trade that will support continued European biodiesel investments, and which will help deliver to Europe the decarbonisation that Europe – and the world – so urgently needs.” commented Mr. Dickon Posnett, EBB President.
The investigation will demonstrate that imports of Chinese biodiesel are almost always categorized as ‘advanced’, and ‘waste based’ – as promoted under RED’s Annex IX – which have the highest costs and highest need for investments. However, Chinese exporters have no competitive advantage over EU producers, so they have practiced severe dumping which caused extensive injury across the entire chain. In 2023, Chinese dumped imports have caused a collapse in the market and production sites closed in several member states. The decision of the Commission on the imposition of anti-dumping duties should be made within the next seven to eight months. The EBB is also working with the Commission on the possibility of provisional duties owing to the level of imports and consequential damages to EU producers being so high.
“We are confident that the Commission and the governments in the EU are now well aware that these imports of biodiesel from China constitute an existential crisis for EU biodiesel producers and are committed to enforcing international trade laws to protect this industry, and thereby deliver on the objectives of the EU Green Deal for transport.” added Xavier Noyon, EBB Secretary General.
