Fuel/BioFuel Market

Overview of Fuels and Biofuels Market

The European transport fuel market is dominated by fossil-based liquid fuels petrol and diesel. 95% of all fuel used in road transport in Europe comes from these oil products.

In 2009 the Europe Union adopted its climate and energy package for 2020. The package sought to tackle the dominance on oil use in transport by setting a sectoral target for a minimum 10% share of renewable energy use in all energy consumed in transport.

In their National Renewable Energy Action Plans, sent to the European Commission in 2010, Member States collectively forecast that the majority (8%) of this 10% target would be met through conventional, or first generation, biofuels.

However, the revision of the Renewable Energy and Fuel Quality Directives agreed in 2015, set a 7% ceiling to the contribution from conventional biofuels by 2020.

Currently biofuels displace 5% of all petrol and diesel fuels in European transport, based on energy content.