First-generation biofuels in road transport: a better understanding of the dynamics at work and the challenges ahead

This study looks at the role and contribution of first-generation (1G) biofuels¹ First-generation biofuels: agrofuels produced from crops traditionally used for food. for the decarbonization of road transport in France by 2030. In addition to the fundamental debate on the degree to which these fuels are truly decarbonized, the analysis presents an inventory of the many challenges facing the upstream production sector in light of recent dynamics (origin, availability, agroecological and energy balance, etc.) and the regulatory framework that defines the supply of biodiesel and bioethanol. It examines the objectives and tools of existing public policies on the use of 1G biofuels in transport, from today to the end of the decade.
The analysis is based on a series of discussions with key players in the sector, an in-depth reconstruction of the supply and processing chains of the raw materials, and IDDRI’s proven expertise in issues relating to the agroecological transition.

• National biofuel consumption is largely based on imported raw materials (in 2022, 48% for petrol and 78% for diesel² Ministère de la transition écologique et de la cohésion des territoires, Base Carbure, year 2022, online: https://carbure.beta.gouv.fr/stats). This dependence on imports raises questions regarding the “national sovereignty” argument that is regularly cited in debates.
• The difficulty of establishing the traceability of raw materials generates considerable uncertainty over the full environmental impact and energy return of biofuels, even though these
  factors are already the subject of much debate in the context of what is claimed to be better domestic production. The environmental and energy balance of this solution is therefore only partially controlled, compared with other transitional alternatives for road transport.
• The Renewable Energy European Directive (RED II) limits the share of energy from 1G biofuels used for transport in each member country to
  7%.³European Union, Renewable Energy Directive, Article 26, online: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32018L2001 Against this backdrop, and given that the usual fuels sold at the pump (B7, B10, SP95-E10, etc.) already contain up to 5%, 7% or 10% biofuel by volume, it would be difficult if not impossible to significantly develop biofuels with a high 1G biomass content (E85 and B100). However, the French tax framework continues to favour the latter. There is therefore a risk that suppliers will gradually withdraw from producing conventional fuels (B7, B10, etc.). Such a development would not add environmental value overall, but would generate a tax revenue loss for the public authorities that the authors estimate at €507 million in 2022

• 1
  First-generation biofuels: agrofuels produced from crops traditionally used for food.
• 2
  Ministère de la transition écologique et de la cohésion des territoires, Base Carbure, year 2022, online: https://carbure.beta.gouv.fr/stats
• 3
  European Union, Renewable Energy Directive, Article 26, online: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32018L2001