Non-technical policy, regulatory, and market influences on the use of liquid biofuels: Summary of the findings of IEA Bioenergy Task 27

Biofuels are important parts of the transportation fuel mix in many countries. Ethanol is the most widely used biofuel at present, and smaller amounts of ETBE (ethyl tertiary-butyl ester) and biodiesel are used in various locations. Biofuels are expected to become even more important for transportation in the future. These fuels reduce national dependence on petroleum and contribute to sustainable energy systems. Biofuels also burn cleanly and provide opportunities for local economic development and job creation. At present, the extent to which biofuels have entered the marketplace varies significantly by country. For example, the United States uses about 4 x 109 liters of ethanol annually in transportation fuels. By comparison, most European countries have been slower to accept biofuels. The reasons for these differences are complex and include a variety of policy and market issues. Beginning in 1999, the IEA Bioenergy Task 27 started a project to examine the non-technical policy, regulatory, and market factors that influence the use of biofuels. The overall goal of this effort was to determine the primary reasons why biofuels have been implemented more successfully in some regions than in others. This paper summarizes the major findings of this work. IEA Bioenergy Task 2