Biofuels in the European Union: How Consumption Evolved Between 2020 and 2025

Enerdealers Editorial

Over the past five years, biofuels have continued to play a relevant role in Europe’s energy transition. Although often overshadowed by the rapid growth of electrification and renewable sources such as solar and wind power, biofuels remain essential in sectors like transport. Between 2020 and 2025, their consumption in the European Union reflected both the progress achieved and the tensions inherent in a transforming energy system.

This period was shaped by exceptional circumstances — from the COVID-19 pandemic to the energy crisis — and by a gradual shift in EU policy priorities. Analysing how biofuel consumption has evolved over these years provides valuable insight into the direction of Europe’s energy model.

2020: An Atypical Year That Set the Tone

The year 2020 was deeply affected by the COVID-19 pandemic. Mobility restrictions led to a sharp reduction in energy consumption, particularly in road transport and aviation. As a result, the overall use of fuels — both fossil and renewable — declined across most Member States.

Despite this context, the European Union managed to meet one of its key energy targets: achieving a 10% share of renewable energy in transport. This milestone was largely reached thanks to biofuels, which already accounted for the majority of renewable energy used in cars, trucks and buses.

The underlying message was clear: even in a crisis scenario, biofuels proved to be an effective tool for introducing renewable energy into a sector that still relies heavily on internal combustion engines.

Post-Pandemic Recovery (2021–2022)

With the gradual economic recovery in 2021 and 2022, energy consumption began to rebound. Transport activity increased again, although it did not immediately return to pre-pandemic levels. In this context, biofuel consumption also grew, in a gradual and steady manner.

However, this growth was neither linear nor uniform. Factors such as improvements in vehicle efficiency, changes in mobility patterns and the early acceleration of transport electrification helped moderate demand for liquid fuels.

Even so, biofuels maintained their position as the main renewable energy source in transport, reinforcing their role as a transitional solution while other alternatives continued to mature.

Which Biofuels Are Used — and Where

Between 2020 and 2025, biofuel consumption in the EU was almost entirely concentrated in the transport sector:

• Biodiesel was the most widely used product, especially in countries with large diesel vehicle fleets. This category includes both conventional biodiesel and advanced variants such as HVO.

• Bioethanol was mainly used in gasoline blends, with the gradual expansion of E10 fuels in several Member States.

• Biogas and biomethane began to gain ground in heavy-duty and urban transport, although they still represent a relatively small share of total consumption.

Other applications, such as aviation and maritime transport, progressed more slowly, constrained by higher costs and limited large-scale availability of sustainable fuels.

A Multi-Speed Europe: Differences Between Member States

One of the most striking features of biofuel consumption in the EU is the uneven distribution across Member States.

Northern European countries such as Sweden and Finland stand out clearly. Thanks to ambitious policies and a strong focus on advanced biofuels, they have achieved renewable energy shares in transport well above the EU average.

In absolute terms, France and Germany lead total biofuel consumption. The size of their transport markets, combined with quota systems and blending obligations, explains their dominant position within the EU.

Countries such as Spain, Italy and Poland occupy an intermediate position. Here, biofuel consumption has grown steadily, though it remains closely linked to regulatory mandates and shows a lower penetration of advanced biofuels.

At the other end of the spectrum, some southern and eastern Member States continue to record lower consumption levels, reflecting less stringent regulatory frameworks or more limited industrial capacity.

2023–2024: A New Regulatory Landscape

From 2023 onwards, the sector began adapting to a new regulatory environment. The revision of the Renewable Energy Directive raised the EU’s climate ambitions and strengthened sustainability criteria for biofuels.

This sent a clear signal to the market: it is no longer just about how much biofuel is consumed, but how it is produced and what real emissions reductions it delivers.

During these years, overall consumption continued to rise, but at a moderate pace. The most significant change was qualitative rather than quantitative, with a growing role for waste-based feedstocks and increasing pressure on food-based biofuels.

2025: Consolidation and Transition

By 2025, biofuel consumption in the EU had reached its highest level of the period analysed. However, growth remained contained and increasingly influenced by the advance of transport electrification and more demanding climate policies.

The sector entered a phase of consolidation, in which biofuels shifted from being a broadly applied solution to a more strategic option, particularly suited to segments where electrification is progressing more slowly.

Conclusions: The Role of Biofuels in the Decade Ahead

Between 2020 and 2025, biofuels demonstrated their ability to contribute to emissions reductions in European transport, while also highlighting the limits of their role.

Looking ahead, the European Union has set ambitious objectives for the coming years:

• To significantly increase the overall share of renewable energy, with the aim of exceeding 40% before 2030.

• To further reduce transport emissions, prioritising solutions with the highest climate impact.

• To promote the use of advanced biofuels while progressively limiting those with higher environmental footprints.

• To reserve liquid biofuels primarily for sectors that are difficult to electrify, such as heavy transport, aviation and maritime shipping.

In this context, the future of biofuels in the EU does not lie in unlimited growth, but in their smart integration into an increasingly diversified energy system. For energy market players such as Enerdealers, understanding these dynamics will be essential to anticipating opportunities in a rapidly evolving landscape.