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Carbon Certification on Biofuels

11:07 AM MDT | October 29, 2008 | SRI Consulting

Three EU countries (Germany, the Netherlands and the UK) are planning to tax biofuels according to their carbon footprints. The EU has picked up the idea as well (its legislation, if passed, would apply to all 27 member states) and so has the US federal government. The basic principle of carbon certification is that to qualify for tax relief or subsidy, a biofuel must have carbon footprint 20-40% lower than the ‘reference’ petrofuel it putatively substitutes.
Fine in principle, except in practice, the governments disagree as to which fuels qualify....

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