What the U.S. Can Learn from Europe’s Biofuel Implementation

As the United States seeks to accelerate its clean energy transition, Europe offers valuable lessons in how to implement biofuels more effectively. While the U.S. remains a top global producer of biofuels—especially corn-based ethanol and soybean-derived biodiesel—European countries have taken a more diversified, integrated, and policy-driven approach that could inspire improvements in the American market.

1. Lifecycle Emissions Standards

One of the most notable differences is Europe’s strong focus on lifecycle greenhouse gas (GHG) emissions. Under the Renewable Energy Directive (RED II), biofuels must meet specific sustainability and GHG reduction thresholds to qualify for compliance credit. This encourages the use of advanced biofuels from waste, residues, and non-food feedstocks. In contrast, the U.S. Renewable Fuel Standard (RFS) does not consistently enforce lifecycle performance in the same way, creating less incentive for cleaner, next-gen fuels.

2. Sector-Specific Targets

Europe is also advancing sector-specific mandates, such as those under ReFuelEU Aviation and FuelEU Maritime, which set binding targets for renewable fuel use in aviation and shipping. These sectors are challenging to electrify, and binding mandates provide clarity and drive investment. The U.S. currently lacks similar federal mandates for hard-to-abate sectors, though voluntary initiatives and incentives exist.

3. Carbon Pricing and Market Signals

Another lesson is the use of carbon pricing mechanisms in Europe, particularly the EU Emissions Trading System (ETS). By putting a cost on carbon emissions, the ETS indirectly increases demand for low-carbon fuels like biofuels. The U.S. does not have a national carbon price, limiting the economic signal for fuel switching across sectors.

4. Harmonized Sustainability Certification

Finally, Europe relies heavily on voluntary certification schemes, such as ISCC EU, to verify sustainability and traceability across the supply chain. Wider use of harmonized certification in the U.S. could boost credibility and market access, especially for exports.

By adopting elements of Europe’s approach—particularly in sustainability standards, sector mandates, and long-term policy clarity—the U.S. could enhance its biofuel strategy and better align it with climate goals.