Impact of the EU Renewable Energy Directive (REDII) on biofuels demand: a choice of quality over quantity

Biofuels have become a hot topic again in recent years, as the discussion of energy transition and routes towards the decarbonisation of transport has intensified. Regulatory efforts in the European Union to decarbonise the energy sector are underpinned by the EU Renewable Energy Directive (RED). The second phase of that Directive (REDII) sets a 14% target for the renewable share of energy consumption in road transport in the EU by 2030. This insight presents our view on the growth potential of biofuels in Europe, the role of advanced biofuels and electrification of the transport sector in achieving the REDII targets.