Europe's continued dependence on imported fossil fuels represents a critical strategic vulnerability, leaving industry exposed to price volatility and supply disruptions that undermine economic resilience and industrial leadership, according to the European Biogas Association (EBA).
In 2024, the EU imported 90% of its gas consumption, underscoring a deep reliance on external suppliers that directly affects both energy security and industrial competitiveness. The current geopolitical and economic context has further increased energy prices for Europe's key industrial manufacturers, putting mounting pressure on the continent's industrial base.
At a recent meeting in Antwerp, leading industry executives warned that persistently high energy costs are eroding competitiveness and accelerating investment leakage.
CBAM exemption proposal raises concerns
The debate has intensified following the European Commission's proposal to introduce an exemption to the Carbon Border Adjustment Mechanism (CBAM) through Article 27a. The proposal has raised concerns among European industrial players already investing in ambitious decarbonisation pathways.
CBAM plays a crucial role in preventing carbon leakage and ensuring a level playing field for EU industry as it transitions to low-carbon production. Introducing exemptions risks weakening incentives for decarbonisation and creating uncertainty for investment decisions at a time when stability and predictability are essential.
Proposals by several member states to exempt fertilisers from CBAM would undermine the instrument's purpose, the EBA warns. This is particularly concerning given that sustainable production of biogases can already deliver organic fertilisers for European farmers if digestate as a co-product of the production process is properly valorised. The sector currently generates around 25 million tonnes of digestate annually.
Biogases could meet 80% of gaseous fuel demand by 2040
The EBA is calling for an accelerated rollout of biogases as a driver of renewable energy made in Europe. Across the EU-27, biogases already account for around 6% of total gas consumption, with biomethane growing rapidly as a direct substitute for natural gas.
By 2040, the sector could produce up to 100 bcm of biogases, meeting an estimated 80% of EU gaseous fuel demand whilst strengthening energy security, defossilisation of industry and transport, and sustainable agriculture.
The biogases value chain stands ready to accelerate Europe's transition through renewable energy production, sustainable organic fertilisers, and the capture and reuse of biogenic CO₂, reinforcing industrial resilience whilst reducing fossil dependence with resources made in Europe.
"Europe's energy future must be built on our own renewable solutions," said Harmen Dekker, chief executive officer of the European Biogas Association. "Biogases are scalable and ready today to strengthen our security, support our industries and farmers, and drive the EU's transition to a competitive, low-carbon economy. Now we need the policy framework to match that potential."
Europe’s reliance on imported gas threatens industrial competitiveness, warns biogas sector
