The deal includes Greek Presidency’s proposed 7% cap on conventional biofuels that will be considered by the EU Energy Council on 13 June 2014.
It will then be considered by the new European Parliament.
The Environment and Energy Council meetings, which are due to held in June 2014, may also consider the 2030 energy and climate framework and a final decision is anticipated to be taken by October 2014.
REA head of renewable transport Clare Wenner said about £1bn has been invested in low carbon fuels in the UK and thousands of jobs depend on a sensible solution.
"If Energy Ministers can finalise this agreement at their meeting on 13th June, this brings us a step nearer to a political solution to what has become a political problem," Wenner added.
"The new European Parliament, elected only last week, now has to consider the Council text. We urge them and all European institutions to put an end to this seemingly never-ending debate to save UK investment and UK jobs."
