Economic assessment of CO2 emissions savings in Spain associated with the use of biofuels for the transport sector in 2010

This article provides an economic assessment of greenhouse gas emissions savings associated with the use of biofuels for the transportation sector in Spain. The reference year used is 2010 in accordance with the target for the implementation of biofuels and other renewable fuels set down in European legislation (Directive 2003/30). The assessment is based on the premise that an increased use of biofuel will displace a similar amount of fossil fuel on a BTU basis, with the amount of biofuel used in 2010 taken as a reference point to conduct the estimates. The results show that the most cost-efficient biofuel is the biodiesel obtained from waste oil. Regarding the differences between first- and second-generation biofuels, the results show that the latter had very high associated costs. Reaching the biofuel target for 2010 by primarily using first-generation used-oil biodiesel blends would have led to a saving of 58°M€. In contrast, reaching this target by exclusively using second-generation biofuels would have led to a 1000 M€ increase in total costs. •Biofuels consumption in Spain reduced CO2 emissions to atmosphere by 3.5°Mt in 2010.•This reduction has an economic value of € 43°M.•Biofuels still involve expensive technologies.•The extra cost, required to meet targets for the EU-27, amounted to € 260°M in 2010.