Biofuels fail to live up to climate promise, new study finds

A new study commissioned by the non-governmental organization Transport & Environment (T&E) reveals that biofuels are actually emitting 16% more CO₂ globally than the fossil fuels they are meant to replace. The study finds that biofuel production is a massive waste of land, food, and taxpayer subsidies, with just 3% of the land used for biofuels capable of producing the same amount of energy as solar panels. T&E calls on governments to prioritize smart electrification, efficiency, and truly sustainable alternatives over crop-based biofuels, which are contributing to land clearance and deforestation.

The environmental consequences of biofuel production extend beyond CO₂ emissions alone. T&E highlights that biofuel crops consume significant amounts of freshwater, with nearly 3,000 liters of water needed to drive 100 km using first-generation biofuels. In contrast, an electric car powered by solar electricity requires only 20 liters for the same distance. Furthermore, the amount of land required to cultivate biofuel crops is substantial. By 2030, these crops are projected to occupy an area the size of France, making it the sixth-largest country in terms of arable land use globally. This massive land use could instead be utilized to feed 1.3 billion people or to restore natural habitats.

Biofuels compete with food

The study also sheds light on the concerning trend of diverting food crops for fuel production. Currently, 90% of global biofuel production relies on food crops, consuming approximately 150 million tonnes of corn and 120 million tonnes of sugarcane and sugar beet in 2023. As of today, the equivalent of 100 million bottles of vegetable oil are burned in cars daily, which means that a fifth of all vegetable oil is never even used for food.

Cian Delaney, biofuels campaigner at T&E: “Biofuels are a terrible climate solution and a staggering waste of land, food, and millions in subsidies. Ensuring a sustainable balance between agriculture and the natural environment is essential to addressing the climate crisis. Burning crops for fuel only pushes us further in the wrong direction. Using just 3% of the land currently allocated for biofuels to produce solar panels would yield the same amount of energy. That would leave a lot more land for food and nature restoration. Governments around the world must prioritise renewables over crop biofuels.”

© T&E

The future of biofuels

Despite the potential impact of biofuels, some European countries are advocating for their inclusion in future climate policies. Germany and Italy have been opposing the 2035 ban on the sale of combustion engines, pushing to include both electricity-based fuels (e-fuels) and biofuels in the list of allowed fuels. Although the ban remains in place, pushback persists. In an interview earlier this week, Germany's chancellor, Friedrich Merz, said the EU should scrap the plan. T&E argues that focusing on renewable electricity for direct use in electric vehicles, or producing hydrogen-based fuels for sectors that are harder to decarbonize, such as aviation and shipping, is a much better approach.

Adding to the concerns, Brazil, one of the world's largest biofuel producers alongside the US, recently announced on August 21, 2025, that it would suspend its soy moratorium, a policy that previously protected the Amazon rainforest from soy cultivation. This decision raises concerns about potential deforestation and additional environmental damage associated with biofuel production.