The biofuels sector rejects a tax increase deemed brutal

French biofuel stakeholders denounce a tax hike on B100 and E85 announced in the 2026 draft budget, which they say threatens their income and the industrial balance of local areas.

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The French biofuels sector, bringing together farmers and industrial players, is opposing a tax revision included in the 2026 draft budget, which proposes to eliminate or reduce tax advantages for certain agriculturally derived fuels. This decision, reportedly made without prior consultation, would result in a 380% tax increase for Superethanol E85 and 400% for B100 biodiesel.

B100 fuel, made entirely from French-grown rapeseed biodiesel, is primarily used in professional road transport. E85, or Superethanol, contains up to 85% bioethanol produced from local agricultural feedstocks such as beet, maize, and vinasse residues. These outputs are key revenue sources for French agricultural sectors, particularly amid global grain prices that have remained below production costs for several months.

Farmers fear economic shock

Professional organisations affiliated with the Fédération nationale des syndicats d’exploitants agricoles (FNSEA), along with representatives of agricultural alcohol and biodiesel producers, are warning of immediate risks to farms. More than 120,000 farmers and 30,000 jobs are directly impacted, according to sector figures, which consider agrofuels as a strategic outlet in the face of market volatility.

In parallel, processing rapeseed and sunflower seeds yields over one million tonnes of oilcake each year for livestock feed. These by-products help strengthen France’s protein self-sufficiency, currently estimated at 55%, compared to an average of 30% across the European Union. Representatives argue that undermining this value chain could lead to renewed dependence on imported soy.

Transport sector joins opposition

Professional road transport federations, including the Union des entreprises de transport et logistique de France (Union TLF), the Fédération nationale des transports routiers (FNTR), the Organisation des transporteurs routiers européens (OTRE), and the Fédération nationale des transports de voyageurs (FNTV), have also voiced their opposition. In a joint statement, they highlight a breakdown in trust resulting from fiscal instability, previously presented as a transition incentive for their fleets.

These organisations stress that carriers have invested in engines compatible with biofuels, aligned with clear European objectives. They believe the proposed change weakens the sector’s transformation efforts in the absence of compensatory mechanisms.

A supply chain built on French-sourced materials

The specificity of French biofuels lies in their entirely local origin. The bioethanol used in E85 comes from cereal residues, beet, and vinasse waste, while B100 relies solely on domestically grown rapeseed. These raw materials support agricultural valorisation without external dependence and contribute to supply chain security.

According to the sector, challenging these fuels would paradoxically lead to a return to imported fossil fuels, increasing energy dependency and weakening domestic production. A stable tax framework is thus seen as essential to preserving investments made by the sector in recent years.

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