CEPI attacks biofuel subsidies for US papermills

European pulp and paper industry association CEPI has urged the US government to end a loophole in the national Fuel Tax Credit scheme that it says gives American papermills an unfair competitive advantage.

CEPI argues US papermakers are allowed to receive huge subsidies for biofuels they would use anyway for their operations. They already use significant quantities of black liquor – a by-product of paper manufacturing - and only have to add small amounts of diesel in the fuel to claim tax credits.

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