The Cost of Advanced Biofuels

Transport & Environment (T&E) has released new research highlighting the economic and environmental drawbacks of relying on advanced biofuels for passenger vehicles compared to electric vehicles (EVs). The study emphasises that advanced biofuels are significantly more costly to use than charging an EV, challenging proposals from the European car industry to classify combustion vehicles running on these biofuels as zero-emission under EU CO2 regulations. This move by the industry aims to relax stringent emission targets that have been instrumental in driving down the cost and increasing the availability of electric vehicles across Europe. The analysis builds on previous findings that categorise biofuels as a "dead end" technology for cars, citing their inherent CO2 emissions, limited supply, and susceptibility to fraud as critical issues. Despite industry calls for their inclusion in emissions accounting, the scarcity of advanced biofuels makes widespread adoption unfeasible, raising concerns about the practicality of such policy changes. The research underscores that advanced biofuels cannot realistically replace the role of EVs in achieving long-term decarbonisation goals for road transport. T&E’s findings have significant implications for European climate policy, particularly the ongoing debate over how to define and regulate zero-emission vehicles. Allowing combustion engines powered by advanced biofuels to count as zero emissions could undermine efforts to promote electric mobility and delay the transition to cleaner transport technologies. The report suggests that policymakers should maintain strict CO2 targets that favour electric vehicles, ensuring that the automotive sector continues to innovate and reduce its environmental footprint effectively. The debate also touches on broader issues of energy security and sustainable fuel production, as the limited availability of advanced biofuels means they cannot serve as a large-scale solution for road transport emissions. The research calls for a clear-eyed approach to future transport policies, one that recognises the cost-effectiveness and environmental benefits of electric vehicles over biofuel alternatives. As the EU finalises its climate strategies, this evidence may influence regulatory decisions that shape the continent’s automotive landscape for years to come.