Biofuel Subsidies in Germany
Currently, the German government plans to achieve the EU’s renewable transport target mainly through the use of mandatory blending targets applied to the mineral oil industry for the use of biofuels. This study highlights that the prevalent policy interventions in Germany—mandatory blending requirements and tax exemptions—have a number of related costs. The study provides an overview of Germany’s biofuel market and discusses current trends and developments in German biofuel support schemes. A number of issues linked to the use of blending mandates and other biofuel support measures are investigated and, where possible, an estimate of the potential costs provided.