German Cabinet decision: Verbio strengthened by stricter rules to combat fraud in the biofuels market

• Cabinet decision ends existing protection for reliance on sustainability certificates and strengthens verifiable sustainability
• Further momentum for biofuels from political initiatives to review the phase-out of combustion engines and introduce E20
• Unlocking the potential of B10 diesel for climate protection and security of supply

Leipzig, 29 October 2026 – Yesterday’s German Cabinet decision to amend the Biofuel Sustainability Regulation implemented reforms to the existing provisions protecting reliance on sustainability certificates, closing a significant gap in the regulatory framework. In future, falsely declared biofuels can be excluded from counting towards the greenhouse gas reduction quota (GHG quota). Expanded inspection powers for the Federal Office for Agriculture and Food (BLE) will further support the enforcement of sustainability requirements. The stricter rules address a longstanding demand by Verbio. The company has repeatedly highlighted weaknesses in the previous provisions and criticised the resulting distortions of competition. The new regulations strengthen the competitive position of producers such as Verbio that can provide robust evidence of sustainability and consistently comply with applicable rules.

Cabinet decision strengthens fair competition in the biofuels market

Together with the measures already adopted to implement the EU Renewable Energy Directive (RED III), the decision completes the regulatory framework for effective fraud prevention and fair competition in the biofuels market. Following years of significant market distortions, market conditions have already improved considerably since the beginning of the year. The decision consolidates this positive development. As a European producer and established supplier of high-quality products, Verbio is very well positioned under these conditions.

“With today’s Cabinet decision, the last major loophole in the fight against fraud is finally being closed. This means fair play can once again prevail in the German and European biofuels market. Technological expertise, innovation and competitiveness will be key again, rather than dubious certificates. In this environment, Verbio can fully capitalise on its strengths,” says Claus Sauter, Chief Executive Officer of Verbio SE.

Debate on the phase-out of combustion engines opens up opportunities for sustainable biofuels

Verbio also welcomes the Franco-German initiative to revise the European CO₂ fleet emission standards from 2035, as well as the proposal by Germany’s Federal Ministry of Transport to introduce E20. Certified biofuels produced from European biomass can already deliver greenhouse gas emissions savings of almost 100 per cent over their life cycle compared with fossil fuels.

Both E20 petrol, containing up to 20 per cent bioethanol, and B10 diesel, containing up to 10 per cent biodiesel, offer opportunities to achieve additional CO₂ emissions savings in the existing vehicle fleet in the short term, reduce dependence on fossil fuel imports, and strengthen price stability and regional value creation.

Harnessing the full potential of sustainable biofuels

From Verbio’s perspective, it is essential that future political and regulatory measures unlock the full potential of sustainable biofuels. This applies particularly to the proposed new category of low-emission vehicles under the European CO₂ fleet emission standards. All biofuels that meet the sustainability requirements of RED III can contribute as eligible compliance options, regardless of whether they are produced from agricultural biomass, residues or waste materials.

“If policymakers now make skilful use of the full range of sustainable biofuels, we can deliver greater climate protection on the road, strengthen Germany as an industrial location and provide more sustainable relief for consumers at the pump than through short-term, multi-billion-euro fuel discounts funded by taxpayers,” emphasises Claus Sauter, Chief Executive Officer of Verbio SE.

He adds: “The problem is not the combustion engine. The problem is the fuel. If we replace fossil-based molecules with renewable ones, we have a practical solution that is available immediately.”

About Verbio

At Verbio we make more from biomass. In Europe, North America and Asia we process locally available biomass into sustainable fuels and bio-based products for the chemical and industrial sectors. Our motto, “Pioneering green solutions”, sums up what drives our international team: we develop innovative technologies and turn them into commercially viable industrial solutions. Sustainability is a key component of our business model. Our biorefinery concept is therefore centred on the systematic multiple use of biomass. As a leading bioeconomy company, we supply renewable molecules needed to replace fossil raw materials as part of the transition towards meeting climate targets. The use of regional biomass strengthens independence from global supply chains, creates added value in rural areas, and supports a secure and cost-effective supply of energy and raw materials.

Verbio shares (ISIN DE000A0JL9W6/WKN A0JL9W) have been listed in the Prime Standard segment of the Frankfurt Stock Exchange since October 2006. Our headquarters are in Zörbig, Germany.

www.verbio.de | www.verbiogas.de | www.strohklug.de | www.verbiolifechemicals.com
Facebook & Instagram: @verbio.se | LinkedIn: @verbio-se | LinkedIn: @claussauter