Biofuels taxation

According to the Energy Taxation Directive 2003/96/EC of October 27, 2003 (ETD), diesel and gasoline excise duty applies to the respective bio-blending components. The ETD allows member states (MS) to reduce excise duty on biofuels. It includes hydrogenated vegetable oil (HVO), which is classified as biofuel, according to the EU Renewable Energy Directive 2009/28/EC of April 23, 2009 (RED I). All of the MS made use of this provision until the end of 2013. The reduced tax rate (especially on low biofuel blends) drove biodiesel and bioethanol consumption. Following changes in the EU state aid rules, as of June 28, 2014, MS cannot financially support biofuels produced from feedstocks competing with food production, due to potential indirect land-use change (ILUC). If a MS wi