Biodiesel produced from kitchen waste is used as vehicle fuel on August 17, 2016 in a bioenergy technology company located in Hanchuan city, Hubei Province. Photo: VCG

If the reported EU investigation into allegedly fraudulent biofuel imports from China leads to a comprehensive ban, it would not be in line with market laws and the principle of fairness, a Chinese industry association has said.

China is the world's largest exporter of used cooking oil. Its high-quality and affordable Used Cooking Oil Methyl Ester (UCOME) has made a huge contribution to the EU's carbon emission reduction goals, Liu Yaoming, head of the Bioenergy Industry Branch of the China Association for Promotion of Private Sci-Tech Enterprises, wrote in a commentary on Saturday.

According to an AFP report on Monday, the European Commission is "investigating alleged fraudulent biofuel imports from China following a complaint from a member country's government."

The recent surge of Chinese exports of biodiesel, "with volumes deemed to be potentially fraudulent, has depressed biodiesel markets across the EU," leading to plant closures, said the European Waste-based and Advanced Biofuels Association in a letter sent to the European Commission and the German government last week, according to the report.

Liu said it is not true that a surge in "potentially fraudulent biodiesel exports" from China caused the suspension or reduction of production at some EU biodiesel plants.

Due to a variety of factors, the consumption of road diesel in most EU countries has hit a record low, and the amount of biodiesel blending has also decreased. This is the main reason for the current shutdown of 11 European plants and the lower-than-normal production levels of 10 plants, Liu said.

Individual companies from China may have some violations, but the vast majority of China's biodiesel exporters have strictly abided by the relevant regulations of the EU and conduct reasonable, legal and honest operations, Liu stressed.

While Europe is unable to produce UCOME efficiently due to factors such as high energy and wage costs, Chinese plants are larger and more efficient, and able to process poorer quality feedstock, Liu noted.

Despite the changing market environment, China's biodiesel industry has made a great contribution to the world's carbon reduction campaign, which is a fact that cannot be ignored, Liu said at a meeting on Sunday.

China-made UCOME and the international biodiesel industry, including companies based the in the EU, are interdependent, Liu said.

The association vowed to enhance the supervisory mechanism and urged industry players to strengthen their self-discipline system so as to promote coordinated development of the industry.

Biofuels have served as a renewable alternative to fossil fuels in the EU's transport sector, helping to reduce greenhouse gas emissions and improve the EU's security of supply, according to the European Commission.

Global Times