German biodiesel makers warn govt on policies

01 August 2007 15:13  [Source: ICIS news]

TORONTO (ICIS news)--Germany’s biodiesel industry on Wednesday called on governments and lawmakers to put in place sustainable and reliable policies following a court ruling that upheld legislation phasing out tax benefits for biodiesel from 2008, it said.

 

“We keep appealing to lawmakers to restore the trust in legislation and political promises,” biodiesel industry association Verband der Biodieselhersteller (VDB) said.

 

In its ruling, released on Monday, Germany’s constitutional court refused to admit a case brought by 29 biodiesel firms against the legislation phasing out the tax benefits, saying it did not violate the firms’ constitutional rights.

 

VDB regretted the ruling but said the court, while rejecting the case, had noted in its decision that lawmakers were running the risk of losing the trust of industry.

 

Biodiesel firms had made huge investment trusting that the tax benefit would continue, VDB said.

 

The loss of the tax benefits inevitably meant that many firms would have to cease operating, resulting in job losses and the waste of millions of dollars of investments, it said.

 

Germany's government policies were essentially contradictory, VDB said. On the one hand millions of euros in tax money were spent to encourage firms to invest in biodiesel capacities.

 

At the same time, lawmakers – motivated by short-term fiscal considerations - were destroying the viability of those very firms, VDB said with reference to the phase-out of tax benefits.

 

But VDB said it was encouraged by recent declarations from some federal, state and municipal politicians indicating understanding and support for the biodiesel industry’s situation.

 

VDB added that four Germany biodiesel makers - Biopetrol Industries, ecoMotion, Petrotec und Verbio – who had prepared a separate constitutional challenge against the phase-out of the tax benefits - would now no longer pursue those efforts.

By: Stefan Baumgarten
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly