Developments in international liquid biofuel trade

Abstract

This chapter describes the past developments, current status, and trends in global liquid biofuel production and trade. Apart from providing quantitative overviews, it also elaborates why markets developed as they did. By 2011, close to 2,500 PJ of liquid biofuels were produced globally; over two-third of which were fuel ethanol and the remaining biodiesel. The feedstock base is exclusively regionally specific oil, sugar, or starch crops. Global trade in biodiesel has been and will in the foreseeable future be primarily driven towards the European Union, where renewable energy policies stimulate the consumption of sustainable transport fuels - although the EU biofuels market growth is slowing down. Fuel ethanol is largely produced and consumed in the Americas, with the USA and Brazil dominating global production, trade and deployment. International trade is both supply and demand driven. National support policies increased the domestic market value of biofuels and shaped demand side developments. Trade flows emerged where such policies were not aligned with respective trade measures. Import duties had the strongest effect on trade volumes while trade routes were influenced by tariff preferences. Most trade regimes appear to have been designed and adapted unilaterally along national interests causing market disruptions, trade inefficiencies and disputes. © Springer Science+Business Media Dordrecht 2014.