Transformations in EU biofuels markets under the Renewable Energy Directive and the implications for land use, trade and forests

Center for International Forestry Research (CIFOR) Bogor, Indonesia

This report reviews and analyses the transformation in EU biofuels markets within this broader international context by focusing especially on three aspects and the linkages between them: land use change, trade and forest protection. The dynamics of international trade in biofuels has been evolving due to a variety of technical and economic factors within the context of physical resource constraints and legislation in the EU, US, Brazil and other countries. Many countries and enterprises are now entering the biofuels market, while new political stakeholders engaging in the policy process are also impacting the direction of these markets. This report aims to explore the changing linkages across regions and policy regimes in biofuels markets, which are raising the possibility of both valuable synergies and serious conflicts with existing needs in the agricultural and forestry sectors.