The European Commission on July 18 announced its investigation into biodiesel imports from China is now complete and did not confirm the existence of fraud. The commission will take action, however, to address some systemic weaknesses it identified. 

The investigation into Chinese exports of biodiesel was spurred by allegations made by German authorities in 2023. In response, the Commission undertook an assessment of the situation, as required by Renewable Energy Directive regulations. That assessment was completed in close cooperation with German authorities. The information gathered as part of the assessment did not confirm the existence of fraud, but the Commission noted the German authorities may perform additional verification or investigations if they wish to do so. 

While the Commission did not confirm fraud, the investigation did identify some systematic weaknesses in the way certification audits have been conducted. As a result, the Commission said it will take several actions to address those weaknesses. 

As part of that effort, the Commission has established a working group to consider updates to regulatory language that could better prevent fraud in the future. Those amendments could be finalized as soon as 2026. 

The Commission also said it is in discussions with European Union countries on a timeline for the full mandatory deployment of the Union database for biofuels. This EU global traceability system is functional and is being used by an increasing number of operators but its mandatory systemic use by all relevant businesses is a pre-condition for its success.

In addition, the Commission said it will continue its technical work on fraud prevention and effective sustainability certification to support the voluntary schemes with the implementation of existing rules. 

A full copy of the announcement is available on the European Commission website.