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Competition fears over biodiesel tax break plan

Oleochemicals industry group Apag has criticised the European Commission over proposals to reduce excise rates on biofuels in a bid to promote the technology in member states (EED 10/06/02). Apag is concerned that the tax cuts would encourage the use of large amounts of oil and fat for biodiesel production, flooding the market with the by-product glycerine and impacting on the companies' own market share. Distortion of the glycerine market would also harm competing products such as sorbitol and polyols from petrochemical feedstocks, Apag says. See position paper.

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