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Lithuanian businesses upset with U-turn in EU biofuel policies

Antroji Vilniaus termofikacinė elektrinė
Irmanto Gelūno / 15min nuotr. / biofuel
Šaltinis: BNS

The European Commission's decision to change the rules promoting the use of biofuel has angered Lithuanian businesspeople, who say that the EU's executive body is now reversing its long-term strategy that has given birth to the European biofuel industry, the business daily Verslo Žinios reports.

"People have invested millions in the biofuel business in Lithuania, just like elsewhere in Europe. I know people who have ploughed more than 100 million litas (EUR 30m) each in these projects. These investments have not paid off yet, and they are incurring losses. The investments will never pay off if Europe's position changes," it quoted Mindaugas Palijanskas, president of Biodegalai (Biofuels), an association of biofuel producers and suppliers.

Palijanskas doubts if EU member states will back the changes, which are to be proposed next month.

Amid concerns that the policies may have contributed to deforestation and a surge in global food prices, the European Commission proposes to cap the share of biofuel derived from food crops at five percent of transport fuels. The rest will have to come from organic waste.

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