Biofuels cover bio-ethanol and bio-diesel. While the first can be made from cereals or sugar beets, biodiesel is produced from vegetable oils. Biodiesel is a renewable fuel that can be produced from domestically cultivated and processed oilseeds and it is the most common biofuel in Europe. Today, almost 50% of biodiesel in the EU market is produced from rapeseed oil. With nearly 40% of vegetable oils delivered to biodiesel producers, the biofuels market is a major outlet for the vegetable oils industry.

The use of renewable fuels, such as biodiesel, has contributed significantly to carbon emission savings in the transport sector, which accounts for a quarter of total GHG emissions in the EU.  For this reason, together with necessary developments on advanced biofuels, biodiesel has a clear role to play in further decarbonising the Euorpean transport sector, including in aviation, heavy duty vehicles and maritime transport - where electrification will not be viable in the short to medium term.