The promotion of biofuels use in transport is a priority in the European political agenda. In this sense the Community proposals aim at replacing petrol and diesel with biofuels, in order to reduce oil dependence in this sector, which is reponsible for one third of CO2 emissions, in addition to producing greenhouse effect.
- Nowadays the most common biofuels with greater potential to replace petrol and diesel in transport are the following:
- In addition, important research to produce biofuels from wood, grass and some types of waste (what is known as "second generation" production) has been implemented.
Within its energy policy, The European Commission proposed the renewal or abolition of tax immunity for oil products , taking into account the effects of exceptions in the functioning of the internal market, the possible distortions in competition and the policies of environment protection, transport and energy. In this sense, minimum types of special taxes are established on oil products as well as compulsory and optional exemptions.