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Carbon Certification Could Cripple European Biofuel Producers

6:30 PM MDT | March 31, 2008

Carbon certification could cause nearly half of biodiesel capacity and half of bioethanol capacity in Europe to lose its tax-advantaged status, says a study to be released next week by SRI Consulting (SRIC). SRIC’s Carbon Certification of Biofuels report presents evidence that at stake are major subsidies that are essential to biofuel producers’ profitability. In 2007, the U.S. granted biofuel tax relief of some $4 billion, while the European Union granted breaks of nearly $5 billion. Carbon certification’s basic prin¬ciple is that to...

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