The approval of the proposal overturned a decision by the upper house which on June 12, 2009 had blocked the government’s proposals because of fears they would harm investment in German biofuels.
As part of efforts to combat global warming, Germany, along with other European Union countries, compels oil companies to blend biofuels with fossil fuels at oil refineries.
However, Germany and several other European countries scaled back biofuel blending plans in 2008 partly on concern that increased biofuel output was causing rising food prices.
Germany’s biodiesel industry is currently only working at about 60% of its 4.8 million tonne annual capacity and has lobbied for the blending cut to be stopped.
The lower house’s decision was disappointing for Germany’s biofuels industry, said Frank Bruehning, spokesman for the German Biofuels Industry Association.
Germany’s taxes on biofuels had hurt sales of the largest green fuel, biodiesel. Cutting the blending quota would further reduce the industry’s market, he said.
Several biodiesel producers have stopped production or are working short time, he said. This decision means some will have to consider their future.
The decision also simply means that Germany will burn more fossil fuel and so increase its carbon dioxide emissions.
