This short paper sets out some ways forward for EU policy on biofuels between now and 2020 and how the policy could develop beyond 2020. It builds on our experience in a range of policy areas, research papers and projects that we have undertaken and the discussions we have had with a number of key actors in the debate.

IEEP’s review of the evidence in relation to ILUC and biofuels suggests that at least three things are clear:

• ILUC is a real and tangible problem affecting the sustainability of land based biofuels and their potential contribution to the decarbonisation of the EU transport sector;
• ILUC is a challenge for both industry and environmental interests alike but ultimately there is a common interest in the long term sustainability of energy supplies and we need clarity about the true impacts of different supply chains; and
• The effects of ILUC present a serious barrier to the effective implementation of the Renewable Energy Directive (RED) and Fuel Quality Directive (FQD).

In this short paper we reflect on the key issues and how they can be dealt with in order to move the policy debate forwards.