It's not like Europe can't make it's own biofuels. Eastern Europe in particular is busy in this area. The EU is also working on sustainability certification for biofuels. But cheap American biodiesel is threatening to push European producers out of business, some warn (Exhibit A). Part of the problem is that American biodiesel companies basically get breaks from two governments, an American subsidy of $1 a gallon and then an UK rebate of 20p a liter. This means US biodiesel can sell for about about $860 a ton, much less than the $1,239 or so that a UK ton costs, according to the Times Online's numbers. How long will that double-dipping last? If the complaints keep up, probably not much longer.
[Source: Times Online, Grant Ringshaw]