Farmer Wants Full Tax Break for Green Biofuels

Farmer Wants Full Tax Break for Green Biofuels

Agricultural Minister Alois Rainer (CSU) has proposed eliminating all taxes on biofuels, arguing that this measure would make them more appealing to use and significantly boost domestic production. According to statements given to the Funke Media Group, this support is intended not only for traditional biodiesel but also for biomethane generated in biogas plants.

Rainer emphasized that producing biofuels domestically is crucial for both climate protection and enhancing energy independence. He stated that in “these uncertain times” ensuring security of supply should come from local sources rather than relying on global markets.

While acknowledging that electric mobility will play a key role in the future, particularly for smaller farm tractors, Rainer indicated that larger, heavier machinery will still require combustion engines, such as those running on diesel or gas. He stressed that this sector must rely more heavily on advanced biofuels, suggesting that a reduction in tax burdens is the way forward. He added that biofuels are already being included in the agricultural diesel refund system starting this year.

Separately, Rainer spoke out against plans by Federal Minister for Economic Affairs, Katherina Reiche (CDU), to halt funding for small biogas plants under the Renewable Energy Sources Act (EEG). According to him, these smaller facilities are a vital pillar of the energy supply, especially in rural areas, and weakening this potential would be a mistake. Given the current situation, he argues that increased regional energy generation is necessary, and therefore campaigned for small biogas facilities to maintain a “strong role” within the ongoing framework. He stated that he is currently “in consultation” with Reiche regarding this matter.