UK Keeps Biodiesel Trade Measures in Place
The UK government announced on July 2, 2026 that existing countervailing duties on biodiesel imported from Indonesia will remain in place for a further five years.
The decision follows a review by the Trade Remedies Authority, which examined whether the measure was still necessary and whether its product scope should be changed.
Countervailing duties are designed to offset the effect of foreign government subsidies when authorities determine that subsidised imports are causing or threatening injury to domestic producers.
For the renewable fuels market, the decision means Indonesian biodiesel will continue to face additional trade measures when entering the UK market.
Sustainable Aviation Fuel Is Removed from the Scope
The government also changed the product definition covered by the measure.
Sustainable aviation fuel will be excluded from the countervailing duty until December 10, 2029.
The distinction separates SAF from the biodiesel imports targeted by the trade remedy, potentially avoiding an additional trade cost on qualifying aviation fuel entering the UK.
The change is particularly relevant as the UK expands its SAF Mandate and develops additional policies intended to increase the availability of lower-carbon aviation fuels.
Removing SAF from the measure therefore reflects the different policy priorities now emerging across road transport and aviation fuel markets.
Trade Policy Becomes Part of the Renewable Fuels Market
The decision illustrates how renewable fuel markets are increasingly shaped by more than blending mandates and emissions regulation.
Trade remedies can influence the relative competitiveness of domestic production and imported fuels by changing the cost of bringing products into a national market.
For biodiesel producers, maintaining the measure may provide continued protection against imports that UK authorities consider affected by subsidies.
For fuel suppliers, the decision means sourcing economics will continue to depend partly on the origin of imported biodiesel and the trade rules applied to it.
At the same time, excluding SAF shows how governments may treat renewable fuels differently depending on technology, end use and domestic policy objectives.
As renewable fuel markets expand, trade regulation is likely to become an increasingly important part of the relationship between domestic production, international supply chains and climate policy.
Sources
UK Trade Remedies Authority — Duties on Biodiesel Imports from Indonesia to Remain in Place, July 2, 2026
UK Government — Trade Remedies Notice 2026/20: Countervailing Duty on Biodiesel Originating from Indonesia