Provisional measures

‍On 19 July, the Commission released its initial findings from the investigation into Chinese biodiesel. The measures are intended to prevent further harm while the investigation continues. The analysis confirmed that Chinese biodiesel was being sold at dumped prices in the EU market. As a result, the European Commission imposed provisional anti-dumping duties on Chinese biodiesel imports, set at 36.4% of the CIF Union border price. However, some Chinese exporters received different rates due to their cooperation with the EU. The provisional measures will take effect on 16 August, and the Commission decided not to impose these measures retroactively for 90 days. Sustainable aviation fuels (SAF) were excluded from the duties, despite initially being considered.

Initiation

‍The European Commission began investigating Chinese biodiesel on 7 November 2023, after a complaint by the European Biodiesel Board (EBB) on behalf of EU biodiesel producers. The complaint alleged that Chinese producers were selling biodiesel at unfairly low prices, harming EU producers. The investigation covers fatty-acid mono-alkyl esters and/or paraffinic gasoils derived from synthesis and/or hydro-treatment of non-fossil origin, including UCOME, FAME, HVO, and SAF. The investigation phase is expected to last up to 14 months, with provisional measures to be imposed after 8 months. A final decision will be published on 4 November 2024, and measures will take effect on 15 February 2025.

Preparation

There was significant market anticipation regarding the possible imposition of duties. Biofuel imports from China increased in the months leading up to the potential imposition of duties, with data showing that imports in April and May 2024 doubled compared to previous months.

Reaction

‍There has been no significant reaction from the market to the imposition of provisional anti-dumping duties. Factors such as the timing of the announcement, the current low demand for biofuels, and an ample supply of imported biofuels may have contributed to the muted response. The EBB expressed relief at the implementation of the measures but raised concerns about the exemption of sustainable aviation fuel.

Next steps

‍The Commission accepted feedback and comments for three days following the release of the pre-disclosure in July. Provisional measures will be implemented on 16 August, with interested parties having until 2 September to submit their comments. The definitive measures will be implemented six months later, in February, representing the final outcome of the anti-dumping investigation.

Food for Thought

‍The investigation raises questions about reconciling the EU's commitment to fair trade with its environmental goals. While anti-dumping duties protect EU industries from unfair competition, they could also impact the availability of renewable energy sources, potentially slowing the transition to a sustainable economy.