Ukraine takes wrong path in biofuel regulation — opinion
Ukraine risks losing competitiveness in the biofuels market if it continues to adopt outdated European approaches to regulating the sector, said Adomas Audickas, Deputy CEO for Bioenergy at MHP, during the international conference Grain Ukraine 2026.
According to him, Ukraine has significant potential to develop biodiesel production, but the current regulatory framework does not align with trends that have already emerged in the European Union.
Adomas Audickas
Deputy CEO for Bioenergy at MHP
“I believe we are currently taking the wrong steps by introducing mandatory biofuel blending requirements that are already outdated in Europe. Countries are moving away from these old mandates toward new approaches.”
He explained that instead of setting fixed shares of bioethanol or biodiesel in fuel, Ukraine should focus on reducing greenhouse gas emissions in the transport sector.
As an example, he cited Germany, where regulators do not prescribe mandatory percentages for specific types of biofuels but instead set targets for CO₂ emissions reductions. Under such a system, different fuel types compete on equal terms, while the most effective decarbonization solutions gain market demand.
In Audickas’s view, such an approach would help Ukrainian producers better prepare for the requirements of the European market. He noted that the key factor for biofuels is no longer merely their production, but their ability to deliver emissions reductions throughout the entire production cycle.
“Biofuel quality will become extremely important. And quality is determined by how much your fuel helps reduce CO₂ emissions,” he stressed.
The MHP bioenergy chief also highlighted the prospects for biodiesel. According to him, this segment remains the largest within Europe’s biofuels market.
“The biodiesel market in Europe is worth around €20 billion. Biomethane accounts for €4–5 billion, while bioethanol is worth about €6 billion. Biodiesel is the largest market, yet we are not paying enough attention to it,” Audickas said.
He added that to develop the sector, Ukraine must not only improve its regulatory framework but also build a domestic biofuels market that would allow producers to scale their businesses and compete more effectively in the EU market.
