Addendum to Biofuels–At What Cost? A review of costs and benefits of EU biofuel policies
GENEVA—August 23, 2013—The International Institute for Sustainable Development’s Global Subsidies Initiative has published an addendum to the report Biofuels–At What Cost? A review of costs and benefits of EU biofuel policies.
The Addendum corrects estimates of the size of EU subsidies to biofuels in 2011. It also presents the calculations in full.
Specifically, the subsidy estimate related to fuel excise tax exemption has been corrected. The updated estimate for fuel excise tax exemption is €2,047 million in total, made up of €562 million for ethanol and €1,485 million for biodiesel. The corrected estimate is lower than the original estimates by €3,757 million in total. For Bioethanol, the estimate is €2,048 million lower. For biodiesel, the estimate is €1,709 million lower.
As a result, the overall estimate for EU biofuels subsidies is €5,515–€6,896 million, compared to €9,272–€10,653 million published in the original report.
Only the estimate for fuel excise tax exemption, for both bioethanol and biodiesel, has been changed. All other estimates remain the same, including the market transfers which make up the largest type of subsidy. The conclusions and recommendations presented in the original report also remain unchanged.
The addendum is available to download here.