The importance of policy for sustainable biofuel value chains

The increasing use of biofuels in the transportation sector is an important pillar in Swedish and Finish policy strategies to reach the intended low-carbon climate targets in the future. While Nordic countries have become leading in the development of technological innovations with successful demonstration of biofuel technologies, the translation into new value chains differs reportedly in Sweden and Finland despite similar environmental and economic conditions. While Sweden relies mostly on imports of biofuels, new value chains emerge in contrast in Finland that cover the whole value chain from processing domestic raw materials to biofuels within the country. Why is this so, and how does the design of policy mixes in Sweden and Finland play out on the emergence and localization of new biofuel value chains?

These are questions that engage PhD Barbara Hedeler, Chalmers, in her research. On 3 September, Barbara, together with Hans Hellsmark, Chalmers, and Patrik Söderholm, LTU, presented an exclusive workshop for the f3 coordinator group with the aim of developing understanding of the impact of policy mixes. The workshop participants used an online survey tool to answer questions and rank different statements e.g. about who benefits from a certain policy mix, and what they see as the main barriers for a domestic biofuel industry.