Biodiesel Board calls to end unfair Polish competition

“The European legislation is not only poorly implemented by Poland, but also misused for an unfair competition around Euroope. We believe Brussels should not accept anymore that European renewable legislation is infringed so blatantly and wide scale by an EU Member State and, worse, that the EU Renewable Energy Directive serves as a basis for abusive traffics in the EU,” – said Mr. Raffaello Garofalo, European Biodiesel Board (EBB) Secretary General.

It has been one year the unfair low price biodiesel exports from Poland are causing serious damages to the EU internal market of renewable fuels and to fuels operators in many EU countries. In spite of the industry’s alerts to national and EU authorities concerning the Polish export trend affecting the European markets it has not only been stopped, but is at raise.

Polish fuel market players, deliberately exploiting a loophole in the Polish biofuels legislation causing significant financial damage to the biodiesel production chains in various EU countries – in Romania, first, and also in the Netherlands, Belgium, Italy, and France in first ranks.

In Poland the accounting of a given biodiesel volume towards the national blending mandate is based on a simple invoice of purchase by the fuel distributor. As Polish law does not explicitly require the biodiesel accounted towards the blending mandate to be consumed within its boundaries, some Polish operators have been capitalising on the export of underpriced biodiesel, that has already been declared as blended. As a consequence, a large part of biodiesel volumes are counted towards EU national blending mandates twice, a first time – falsely- in Poland and then – at an unfair dumped price – in any other EU country.

As a result an increasing number of EU stakeholders – from farmers through oilseed producers and crushers, to biodiesel producers– are experiencing economic loss and very negative impacts on their businesses. The  Polish legislative loophole creates significant distortions by decreasing the overall profitability of local biodiesel producers, prompting job loss along the chain,curbing the progress in local energy and protein independence, and impacting the revenues of farmers and PMEs.

“We ask the European Commission to stop this unfair competition because there are evidences, even provided to Polish authority, of market prices below the price on export from Poland” Mr. Garofalo concluded.

The Industrial Association has confirmed a clear cut position against such unfair traffics proceeding to the expulsion of an EBB member company being directly involved with the traffic and refusing to co-operate to fight against such unfair practice. In this context EBB also urges Polish national authorities to resolve the described problem, which casts a severe shadow on the concrete fulfilling of EU renewable mandates by Poland.

The EBB has been collaborating on regarding this issue with a number of industry players, including sustainability certification systems, and is definitively determined to re-establish legality and fair trade on the EU biodiesel market.

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