Victory of Trump and the Republicans in the US elections may negatively affect the biodiesel market, especially in the EU

It is known that President Trump does not believe in the theory of global warming and the need to reduce oil consumption. Therefore, after his victory in the election, as well as the Republicans gaining a majority in the US Senate, biofuel support programs in the country may be reduced. In addition, Trump plans to impose a duty on imports of goods from the EU, which will further increase pressure on fuel prices supplied by Europe to the United States.

In recent months, the US has been actively importing biodiesel, and shipments have doubled since 2022. Most of the biofuel has been purchased from the EU due to attractive prices. Germany produces much more biodiesel than any other country in the EU, so biofuel supplies to the US are very important for it. Thus, in February 2024, Germany accounted for 58% of biodiesel imported to the US, although later the volume of supplies decreased.

Despite active imports and increased competition from renewable fuels, biodiesel production in the US in 2023 increased by 5% to 5.6 million tons compared to the previous year, and its consumption was the highest since 2017.

However, the U.S. Energy Information Administration expects biodiesel production in the U.S. to decline in 2024.

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Tags: biodiesel, EU