According to International Energy Agency (IEA), global biofuel demand will expand by 35 000 MLPY or 20% over 2022-2027 in the main-case forecast. Renewable diesel and biojet fuel consumption growth are almost entirely in advanced economies.
Policies designed to reduce GHG emissions are driving demand because these fuels can be produced with low GHG emissions, blended at high levels, and made from wastes and residues. In fact, nearly 70% of renewable diesel and biojet fuel came from wastes and residues in 2021.
Meanwhile, rising ethanol and biodiesel use occur almost entirely in emerging economies aiming to reduce oil imports while also maximizing the use of indigenous resources to benefit the local economy.