EU postpones RED II biofuel crop decision

15th January 2024 | Crops, EU Policy & Regulation, Grain Trading

UK crop commodities with biofuel processing potential can continue to be sold into EU markets, following a late December European Commission announcement that it will postpone the implementation of major changes to its assurance scheme recognition process from the end of 2023.

The AIC says the decision, which avoids the possibility of significant disruption to the market for UK biofuel materials such as grain, maize and oilseeds, is the result of months of intense effort from the trade body working with industry, government and other assurance schemes in the UK and Europe.

The Commission notified assurance scheme owners the AIC, Red Tractor Assurance and Scottish Quality Crops of its intention to withdraw accreditation for UK-based RED II assurance schemes at the end of 2023 in June last year. The move follows Brexit, since the Commission only recognises schemes accredited in EU member states, and the UK has been a third country since it left the EU in January 2020. Alternatively, the UK schemes would have needed to secure EU accreditation.

A meeting was held in early November 2023 between the Commission and the AIC and other UK voluntary scheme owners to seek an urgent resolution to mitigate the potential loss of scheme recognition. The Commission informed AIC that it would postpone the implementation of the relevant regulation on certification.

“The European Commission’s decision is hugely welcomed by AIC, as it removes the potential for UK voluntary scheme recognition to be withdrawn in the near future, maintaining access to the EU market as a valuable outlet for biofuels under the Renewable Energy Directive (RED) II,” says AIC head of arable marketing Rose Riby.

“This positive development will be of significant relief to UK farmers, growers and businesses trading in the biofuels market and should offer some reassurance. AIC’s engagement with the Commission, stakeholders, members and scheme participants on this matter will continue into 2024, as all parties seek a more permanent solution for the industry,” she adds.