The EU Renewable Energy Directive (RED), called to amend and subsequently repeal existing Biofuel and Renewable Electricity Directives, became effective from June 25, 2009. It specified new renewable energy targets and established binding sustainability criteria for certain types of biofuels. The biofuels and biomass that fail to meet the sustainability requirements are not counted towards new ambitious renewable energy targets and are excluded from the EU and national support programs.
Rapeseed production in Ukraine increased drastically over the last 10 years matching the timing of the EU biofuel policy initiatives. Significance of the EU regulations for Ukrainian export of rapeseed is proved with recent record of high volumes of trade. Ukraine sold around 2.3 mln tons of rapeseed to the EU with the gross revenue of 1.35 USD billion in the 2008/09 season. This suggests the need to study the new provisions and to explore the role of the Ukrainian government and economic operators as to the best response to the new sustainability requirements.
