In recent decades, the use of biofuels and biomass in the transport sector has been widely promoted. Analyses show that European biodiesel has had a major impact on the global vegetable oil market. To meet the growing demand for biomass and biofuels, the EU already imports large quantities of crops with high environmental impact, such as palm oil and sugar cane. Crops such as wheat and maize, which are also widely produced in Europe, are used to meet this demand. This should not lead to unacceptable pressure on biodiversity and food production in exporting countries. This is not only a problem for biofuels.

The use of biofuels and biomass^[1] * is an alternative to fossil fuels and is being promoted as part of efforts to combat climate change.  However, an analysis of the full life cycle and associated land-use changes shows that their environmental impact is not necessarily beneficial. Indeed, land-use change is one of the major concerns related to the impact of first-generation (and to a lesser extent second-generation) biofuels. Increased demand from the EU has an impact on land use in both EU and non-EU countries. The use of biomass residues does not require additional land, but the disposal of forest residues can lead to significant loss of forest biodiversity. Establishing a robust certification and verification framework for advanced biofuels would increase confidence in this energy source.

The EU Renewable Energy Directive, which aims to promote the sustainable use of energy from renewable sources, has been revised and will become legally binding in June 2021. It sets the overall European renewable energy target at 32% and includes rules to ensure the use of renewable energy in the transport and heating and cooling sectors, as well as common principles and rules for renewable energy support schemes, rights to produce and consume renewable energy and establish renewable energy communities, and sustainability criteria for biomass. Given the need to strengthen our energy independence from fossil fuels, a provisional agreement was reached in 2023; a binding target of at least 42.5% was set for 2030, but with a goal of reaching 45%.

The development of the bioeconomy is widely supported by the EU, notably through research and the updating of the Bioeconomy Strategy. According to the European Commission, the bioeconomy is the use of renewable biological resources from land and sea, such as crops, forests, fish, animals and micro-organisms, to produce food, materials and energy. The transition to a biomass-based economy requires a significant increase in biomass quantities. To be successful, the European bioeconomy must therefore focus on sustainability and circularity.

^[1] In the NBS, the terminology refers to any material derived from biomass (plants, algae, animals or fungi) that is used for energy production. Biomass plays an important role as a feedstock for renewable energy production (electricity, heating and cooling or transport fuels), but also as a raw material for other applications.