Germany’s parliament and upper house (the Bundestag and Bundesrat respectively) adopted the Biofuel Quota Act in autumn 2006. This enacts in national law the recommendations issued by the European Union. It stipulates that 1.2 % bioethanol – with respect to the energy content – has to be mixed with petrol from 2007. This figure has to rise by 0.8 percentage points per year in the subsequent years until the statutory level of a 3.6 per cent mix has been reached.

The promotion of the new environmentally friendly fuel E85, consisting of around 85 per cent bioethanol produced from biomass, and 15 per cent petrol, has been given a high priority, and is to enjoy tax benefits until the end of 2015.