According to several media reports, EU officials have confirmed that ethanol is not included in the scope of the 28 July EU-US trade agreement. Likewise ethanol is not mentioned in either the White House fact sheet or the European Commission fact sheet on the deal. This is a clear recognition of the strategic importance of EU renewable ethanol production.
As the details of the agreement continue to be ironed out, it is crucial for the EU to stay focused on protecting its key industries, particularly the renewable ethanol sector.
With 50 biorefineries across Europe, the ethanol industry plays a vital role in the EU’s energy independence, food security, and efforts to decarbonize transportation. It also supports the agricultural sector, offering a significant market for European farmers already facing pressure from trade deals with countries that have lower environmental standards and cheaper labor costs.
Moreover, European renewable ethanol producers contend with higher energy costs—up to ten times what their US counterparts pay—and stricter sustainability standards. Meanwhile, US producers benefit from government subsidies and tax credits, which further tilt the playing field.
According to newly certified data, renewable ethanol produced by ePURE members and other European producers achieved an average 79% reduction in greenhouse gas (GHG) emissions compared to fossil fuels in 2024. Some producers even reached savings of 95% to 100%.
In contrast, the US barely meets the minimum emissions reduction thresholds set by the EU Renewable Energy Directive. This makes it counterproductive for the EU to import ethanol with a higher carbon footprint and lower emissions reduction performance, especially when factoring in the additional emissions from transportation.
European ethanol producers remain committed to supporting the EU’s goals of energy independence, food security, climate change mitigation, and industrial and agricultural self-sufficiency. We will continue to work closely with EU officials to ensure the long-term viability of the European ethanol industry.
