Legal improvements and countermeasures for the development of biodiesel in our country

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　　Legal Improvements and Countermeasures for the Development of Biodiesel in Our Country Abstract: As a new type of renewable \"green energy\", biodiesel holds broad prospects for development. Taking the enactment of the Renewable Energy Law and a series of related regulations as an opportunity, this study compares the legal frameworks regarding biomass energy in Western countries such as the EU, Germany, and the United States, examines the current situation of China’s biodiesel industry as well as its legal shortcomings, seeks relatively reasonable legal solutions for the medium- to long-term development of biodiesel energy in China, and considers formalizing these solutions through legislation at an appropriate time. 　　Keywords: biomass energy, biodiesel, Renewable Energy Law. On February 28, 2005, the 14th meeting of the 10th REN Conference officially adopted the Renewable Energy Law, which came into effect on January 1 of this year. The enactment and implementation of this law hold great practical significance. 　　I. The Necessity and Contributions of the Renewable Energy Law 　Since modern times, the extensive and unrestrained extraction of fossil fuels has not only made it difficult to meet the growing demand with limited energy resources, but has also had severe negative impacts on the environment. In the case of our country, since 2003, China has become the world’s second-largest oil importer and consumer, second only to the United States. As oil imports continue to grow, petroleum products have become the largest item in China’s foreign exchange expenditure for imports. In 2003, China’s imports and exports of crude oil and refined products resulted in a deficit of $20.29 billion. In 2004, China’s trade deficit in oil exceeded 30 billion US dollars. According to experts in statistical analysis from the General Administration of Customs, China’s dependence on imported oil has now reached over one-third. At the same time, high oil consumption has caused severe air pollution and transportation-related pollution in China’s cities. Therefore, it has become inevitable to develop renewable energy by utilizing modern scientific and technological methods. The enactment of the Renewable Energy Law of the People’s Republic of China was born out of this need, providing a legal basis for the development of renewable energy in our country. 　　Implementing the Renewable Energy Law will help to gradually optimize China’s energy structure and ensure energy security ； It will also contribute to environmental protection and the improvement of air pollution conditions in our country. It will provide sufficient energy for domestic use in rural areas and suburbs, thereby facilitating the comprehensive development of these regions into well-off communities ； With the development of the renewable energy industry, employment opportunities will increase, which helps to create new areas for economic growth. Therefore, we should take the implementation of the Renewable Energy Law as an opportunity to vigorously develop China’s renewable energy industry. 　　Article 2 of the Renewable Energy Law stipulates that \"renewable energy refers to non-fossil energy sources such as wind energy, solar energy, hydroenergy, biomass energy, geothermal energy, and ocean energy.\" ”To distinguish them from traditional renewable energy sources, modern renewable energy is referred to as “New and Renewable Energy” or “Sustainable Energy,” emphasizing the use of modern scientific and technological methods to harness natural energy sources, or indicating that the development of renewable energy should be based on advanced technologies in order to achieve efficiency, safety, and practicality. Biodiesel, which we will discuss next, is a type of biomass energy among renewable energy sources. 　　II. The concept of biodiesel and the development and utilization of other ** Biomass is a very attractive energy source, especially in developing **, as it allows for the use of local raw materials and labor force. The Renewable Energy Act defines biomass energy as “energy derived from plants, manure in nature, and organic waste in urban and rural areas.” ”Based on the legal definition of biomass energy, biodiesel here clearly falls under the category of energy derived from plants in nature and certain organic wastes. 　　1. Concept and characteristics of biodiesel Biodiesel is a type of diesel (liquid fuel) produced by processing biomass resources as raw materials. Specifically, it is made using plant oils such as castor oil, canola oil, soybean oil, peanut oil, corn oil, and cottonseed oil ； Animal fats such as fish oil, lard, butter, mutton fat, etc ； Or the by-products resulting from the refining of the aforementioned oils – soap scum, or oil residues and sludge; used engine oil from auto repair shops, as well as dirty diesel fuel, etc ； Or urban sewage oil (gutter oil) ； It is also composed of waste oil from various fried foods and other types of waste oil, which have been modified and then combined with relevant chemical raw materials. Its color is as clear and transparent as that of diesel. Biodiesel has a carbon content of 18–22, which is roughly the same as that of diesel (16–18). After esterification, its molecular weight is around 280, close to that of diesel (220). Based on the principle of like dissolves like, it has excellent compatibility with diesel; it can be mixed with standard diesel or used alone in vehicles and machinery. As the name implies, biodiesel gained its name from this. 　　Biodiesel has many advantages over conventional diesel: (1) it has good ignition properties. The key indicator for diesel is its high cetane number, exceeding 45 (45 for petrochemical diesel), and its anti-knock properties are superior to those of petrochemical diesel ； (2) More complete combustion. Biodiesel has a higher oxygen content than petrochemical diesel, reaching up to 11%; it requires less oxygen during combustion, and its combustion and ignition properties are superior to those of petrochemical diesel ； (3) It has wide applicability; in addition to serving as a substitute fuel for diesel engines in buses, trucks, etc., it can also be used as a substitute fuel for non-road diesel engines in marine transportation, watercraft propulsion equipment, geological and mining equipment, and fuel power plants ； (4) Protecting power equipment: Biodiesel has a slightly higher dynamic viscosity than diesel, and without affecting fuel atomization, it can more easily form an oil film on the inner walls of the cylinders, thereby improving the lubrication of moving parts and reducing wear ； (5) It has good versatility; no modifications to the diesel engine are required, and it can be used directly. Additionally, there is no need for additional fueling equipment, storage and transportation facilities, or specialized technical training for personnel (while other common alternative fuels may require engine modifications to be used) ； (6) Safe and reliable: Biodiesel has a higher flash point than petrochemical diesel, which facilitates safe storage, transportation, and use ； (7) Energy saving and consumption reduction: Biodiesel is a fuel in its own right, and when mixed with petrochemical diesel in certain proportions, it can reduce fuel consumption and improve performance ； (8) It has good climate adaptability; due to the absence of paraffin, it maintains good flow properties at low temperatures, allowing it to be used in a wide range of areas ； (9) It has multiple functions: it can be used as fuel as well as an additive to enhance combustion, thus serving a dual purpose. In short, using biodiesel has many advantages: it reduces exhaust emissions, it is difficult to ignite, it is biodegradable, and it can be used in conventional diesel engines without any modifications. 　　2. Other **Utilization of biomass energy such as biodiesel 　　(1). The European Union and Germany 　　Biomass energy utilization technologies in Europe have been developed gradually since the 1970s in response to the oil crisis. Currently, biomass energy utilization technology has become the renewable energy technology that receives the most attention from the EU. Driven by policies in various countries supporting the development of renewable energy, biomass energy utilization technologies have advanced rapidly, and its share in the energy mix has increased swiftly. In particular, biomass pelletization technology and direct combustion power generation technology are now widely used. 　　Germany currently has 23 biodiesel production companies, 1,717 biodiesel stations, and its production capacity in 2004 reached 1.097 million tons. Germany will also build the world’s largest biodiesel plant. According to a translation by Mr. Qian Banzhang from Chemical Engineering, the Luzzi company will construct this largest biodiesel plant in the world for Germany’s Neckerman Renewable Resources company. The plant, with an investment of 6400x10''C, is located in Yiesteritz, Germany, and is scheduled to come online in December 2006; it will produce over 0.2 Mt/year of biodiesel from rapeseed. 　　(2) The United States also attaches great importance to the development and utilization of renewable energy sources, including biodiesel. Over the 5 years starting in 2006, it provided more than $3 billion in funding for renewable energy projects, reauthorized renewable energy incentives programs, and offered support for solar energy, geothermal energy, and bioenergy. Currently, there are 4 biodiesel production plants in the United States, with a total capacity of 0.30 Mt/a. The amount of biodiesel blended into regular diesel is 10% to 20%. In Hawaii, biodiesel is produced entirely from recycled cooking oil. The U.S. Department of Energy requires that by 2010, the United States increase its biodiesel production to 12 million tons. 　　(3) Malaysia in Asia has taken advantage of its resource strengths to start developing palm oil biodiesel since 1980, and plans to issue 9 licenses to establish palm oil biodiesel plants. Brazil was also among the first countries to master biodiesel technology, which was developed successfully in 1980 by Professor Eapedito Parente at the Cead University. Brazil launched a \"biodiesel program\" in the 1980s. 　　III. Legal Regulations on Renewable Energy and Biomass Energy in Countries Around the World The rapid progress made in the development and utilization of biomass energy such as biodiesel in many countries in Europe, America, and Asia is undoubtedly due to the crucial role played by relevant national laws, regulations, and policies. 　　1. The European Union and Germany On February 25, 2000, Germany’s parliament passed the Renewable Energy Act. Although this act was based on the successful experience of the 1990 Law on the Supply of Electricity from Renewable Energy Sources to the Grid, it represented a significant breakthrough for the sustainable development of biomass energy in Germany, including biodiesel. Germany has also established policies and regulations to encourage the production and use of biodiesel, such as the Directive on Subsidies for the Use of Renewable Energy, the Subsidy Program for Biofuels in the Agricultural Sector, the KfW Bank’s Subsidy Program for Reducing Carbon Dioxide Emissions, and the Agricultural Investment Promotion Program. Tax exemptions are granted to biodiesel producers, and it was stipulated that starting from January 1, 2004, 5% biodiesel must be mixed into diesel fuel. These legal provisions keep the market price of biodiesel lower than that of conventional diesel, making Germany the country in the world that makes the most use of biodiesel. 　　The EU has introduced two new regulations to encourage the development and use of biodiesel, with the aim of promoting the use of biofuels in the automotive fuel market. In 2003, the EU issued the \"Guiding Policies on the Use of Alternative Fuels in the Transport Sector,\" which required member states to exempt the production and sale of biodiesel from value-added tax. It also set a minimum percentage of biofuels to be used in motor vehicles relative to the total amount of fuel used, raising this percentage from 2% in 2004 to 5.75% by 2010. The introduction of these new regulations not only helped stabilize the EU biodiesel market, but biodiesel sales also surged from $503.5 million in 2000 to $2.4 billion in 2004. 　　2. United States On October 22, 2004, President Bush signed a bill containing tax incentives for biodiesel, which was proposed by the U.S. Biodiesel Council, the U.S. Soybean Association, and the U.S. Department of Agriculture. On August 8, 2005, President Bush signed the **Energy Policy Act of 2005**, which guided the federal government to use renewable energy sources; by 2013, these sources were to account for more than 7.5% of all energy used. A new \"Renewable Energy Security Act\" should be enacted to provide financial support for renewable energy systems. The federal government also implements hybrid solutions and electricity conversion programs, innovating traditional internal combustion engine systems by using hybrid fuels and conversion technologies to reduce emissions from vehicles. $200 million is allocated to the \"Advanced Vehicle Development Program\" to encourage manufacturers to adopt alternative fuels as well as electric vehicles, hybrid vehicles, and vehicles that use ultra-low sulfur fuels. 　　Some states in the United States have also begun to enact legislation on renewable energy. Pennsylvania has recently passed legislation; by 2018, 18% of the state’s energy will come from renewable sources ； Montana has enacted legislation requiring that 10% of the state’s electricity generation come from renewable sources by 2010, with this figure to rise to 15% by 2015 ； The key legislative focus in North Dakota is to increase the use of wind power, ethanol, and biodiesel ； Iowa adopted renewable energy standards in 1999, and there are currently over 600 MW of wind power generation capacity under construction. The Midwestern United States will focus on developing agriculture-based renewable energy sources. These include wind energy, biomass energy, biogas (methane produced from manure and plant waste), hydrogen (produced from ethanol), and biodiesel. Such legislation plays a positive and effective role in helping to reduce greenhouse gas emissions through the use of renewable energy. 　　3. Others ** Malaysia in Asia announced its \"**Biodiesel Policy\" in August 2005, and is working on legislation to promote biodiesel as well as on establishing a large number of biodiesel plants. Additionally, Malaysia is also planning to cooperate with China to establish biodiesel plants, as China has for many years been Malaysia’s largest buyer of palm oil. Brazil was the first country in the world to enact legislation to mandate the use of ethanol-blended gasoline. As early as 1931, Brazil issued a decree requiring that 2% to 5% anhydrous ethanol be added to gasoline sold in all regions of the country. In November 1975, Brazil **issued the “Ethanol Fuel Program” in the form of a decree**. In addition, Brazil has introduced initiatives such as the “Clean Development Mechanism” (CDM Brazil) through legislative measures, which have effectively promoted the rapid development of biomass energy in the country. In July 2003, Brazil **restarted its ‘biodiesel program’; the Brazilian Ministry of Science and Technology aimed for biodiesel to account for at least 20% of the market share by 2020. 　　IV. The Necessity and Feasibility of Vigorously Developing Biodiesel in Our Country 1. Analysis of the necessity for developing biodiesel (1) Vigorously developing biodiesel can help alleviate the growing shortage of petroleum energy in our country. 　　Our country has limited energy resources; conventional energy resources account for only 10.7% of the world’s total, and the per capita amount of energy resources is far below the world average. In 2000, the per capita recoverable oil reserves were only 4.7 tons, per capita recoverable natural gas reserves were 1,262 m3, and per capita recoverable coal reserves were 140 tons – amounts that represented 20.1%, 5.1%, and 86.2% of the world averages, respectively. Our country has become a major global player in energy production and consumption. In 2004, China’s production of primary energy was 1.846 billion tons of standard coal, while its consumption of primary energy was 1.97 billion tons of standard coal, ranking it second in the world. With the rapid development of China’s economy, the demand for energy will continue to increase. It is estimated that by 2020, China’s demand for primary energy will reach 2.833 billion tons of standard coal, which is twice the level in 2000. With the rapid economic development, the demand for energy will gradually increase, and the imbalance between energy supply and demand will become increasingly apparent. In particular, the imbalance in oil supply and demand will be more pronounced, highlighting the importance of oil supply security. Vigorously developing alternative energy sources such as biodiesel will surely help alleviate the growing shortage of petroleum resources in our country. 　　⑵Developing biodiesel helps to improve and address the environmental pollution problems caused by fossil fuels in our country. ①Biodiesel is derived from renewable resources; increasing its production can reduce the extraction and consumption of petrochemical fuels, thereby minimizing excessive damage to the Earth’s ecological environment ； ②The CO2 emitted from the combustion of biodiesel is far lower than the CO2 absorbed during plant growth. Therefore, using biodiesel will **reduce CO2**. Reducing emissions and the accumulation of greenhouse gases, as well as addressing the serious environmental issue of global warming caused by such accumulation, is beneficial to humanity. ③Developing the biodiesel industry will increase vegetation coverage on land, and it possesses ecological regulatory functions in various aspects such as reducing soil erosion and regulating the atmospheric climate ； ④The desulfurization of fossil fuel energy has always been a global challenge, as the acid rain resulting from its widespread combustion causes severe damage to the ecological environment. Biodiesel, on the other hand, contains no sulfur, and its large-scale production and use will help reduce the environmental disasters caused by acid rain ； ⑤Biodiesel does not contain benzene or other carcinogenic aromatic compounds, and the exhaust gases produced upon its use also do not contain such substances. The production and use of biodiesel pose no threat to human health at all ； ⑥Biodiesel is not volatile and is easily biodegradable; in the event of leaks during production or use, it will not contaminate the soil or water bodies, making it an environment-friendly energy source. Biodiesel is clean and pollution-free; by promoting its development and ensuring that it accounts for a reasonable proportion in oil consumption, air pollution can be alleviated to some extent. 　　⑶Developing biodiesel and aligning China’s relevant regulations with international environmental regulations contributes to the resolution of international environmental issues. In December 1997, the 159 parties to the United Nations Framework Convention on Climate Change signed the Kyoto Protocol. The protocol sets targets for reducing carbon dioxide and other greenhouse gas emissions for 38 OECD** or **groups, as well as some countries in economic transition. Carbon dioxide emitted from energy use in China accounts for about 80% of the total emissions of various greenhouse gases. Since the 1980s, China’s carbon emission growth rate has been much higher than the world average, mainly due to a significant increase in coal consumption. According to estimates by the Japan Institute for Energy Economics, in 2001 China’s carbon dioxide emissions accounted for 13.5% of the world’s total emissions, ranking second only to the United States; coal combustion was responsible for 79.3% of those emissions. If China’s energy demand continues to grow at its current rate, its carbon dioxide emissions could surpass those of the United States by the early 2020s, making it the highest in the world. According to relevant forecasts, China will be unable to avoid its commitments to reduce greenhouse gas emissions after 2020. International compliance will impose high economic costs on our country’s energy sector. 　　2. Feasibility analysis for the development of biodiesel 　　(1) Supported by a series of laws and regulations related to renewable energy. Although China’s Renewable Energy Law, which came into effect on January 1st, along with a series of accompanying regulations issued subsequently, do not mention the concept of \"biodiesel\", the legal provisions will inevitably drive and promote the development of biodiesel, whether considered from the perspective of the legislative objectives, the regulations related to the broader concept of \"biomass energy\" to which biodiesel belongs, or the financial support and market incentives provided for bioliquid fuels. As explicitly stipulated in Article 16 of the Renewable Energy Law: \"**The development and utilization of biomass fuels in a clean and efficient manner are encouraged, as is the cultivation of energy crops.\" **Production and use of bio-liquid fuels are encouraged. Oil sales companies shall, in accordance with the regulations set by the energy authorities under the State Council or the provincial people’s governments, incorporate bio-liquid fuels that meet the relevant standards into their fuel sales systems. ” 　　⑵Our country has already begun research and development on biodiesel, and an industry has started to take shape in some areas. In 2002, a biodiesel production facility with an annual capacity of 20,000 tons was built and put into operation in Longyan City, Fujian Province. The completion of this project actually marks the industrialization of biodiesel production in China, and the biodiesel project was designated as a **key project** by Fujian Province for 2002. Institutions such as the Chinese Academy of Sciences and Engineering, the Research Institute of Petrochemical Science, Northwest A&F University, Liaohe Chemical Plant, Northeast Forestry University, East China University of Science and Technology, and the Liaoning Provincial Energy Research Institute have carried out laboratory research and development as well as small-scale industrial experiments. Significant achievements have been made: Hainan Zhenghe Bioenergy Co., Ltd., Sichuan Gushan Oil Chemical Co., Ltd., and Fujian Zhuoyue New Energy Development Co., Ltd. have all developed technologies with independent intellectual property rights, and have successively built production facilities with an annual output of over 10,000 tons each. This marks the emergence of biodiesel as a high-tech industry in China. The initial development of the biodiesel industry has provided valuable experience for China to vigorously promote this sector. 　　⑶Developing biodiesel will surely bring good economic benefits. At present, the biodiesel industry in provinces such as Fujian and Sichuan in our country has already taken initial shape. With the support of **policies and laws and regulations, once the technology is fully matured and costs are reduced, the production of biodiesel will be promoted, which will inevitably bring substantial economic benefits to local areas and enterprises; at the same time, **tax revenues and other related incomes will naturally increase as well. Furthermore, there are vast areas in our country’s territory that are unsuitable for growing crops – such as barren mountains and slopes, as well as regions suffering from severe soil erosion and desertification. These marginal lands (desertified areas, saline-alkali lands, hillside areas) can certainly be utilized to cultivate high-yield energy crops that produce oils, thereby serving as sources for bioenergy. Through the efficient use of land, the supply of bioenergy will inevitably increase significantly, while also creating job opportunities for society. 　　V. Legal Improvements and Strategic Measures for the Development of Biodiesel in China (I) Current Legal Gaps in the Development of Biomass Energy in China Although China has enacted the Renewable Energy Law along with related regulations, compared to countries such as Germany, the EU, and the United States in terms of legal provisions and policy support for biomass energy (with biodiesel as the main component), China’s laws and regulations suffer from many shortcomings and deficiencies in these areas. 　　1. The basic laws lack clear provisions regarding the development and utilization of biomass energy, with biodiesel being the main form. Although China’s Renewable Energy Law contains provisions regarding biomass energy and offers encouragement in Article 16, it is clear from the law’s legislative background, objectives, and the text of its 33 articles that its focus is on utilizing renewable energy for power generation. The classified electricity pricing system, mandatory grid connection system, cost-sharing system, and special funding mechanisms established by this law are all designed to regulate activities centered around the use of renewable energy sources, including biomass energy, for power generation. Even considering the two accompanying regulations announced at the press conference on January 12 this year, the \"Provisional Measures for the Management of Prices and Cost Allocation for Renewable Energy Power Generation\" and the \"Regulations on the Management Related to Renewable Energy Power Generation\" are no exception. The former is entirely centered around hydroelectric, wind power, solar energy, and biomass energy generation. On the contrary, there are no such regulations regarding the development and use of biodiesel, a renewable energy source that serves as a substitute for oil. It can be said that legislators lack a clear understanding of the importance of biodiesel as a new energy source. 　　It is undeniable that power generation from renewable energy sources (including biomass energy) is an important aspect of the current utilization of renewable energy, and it also holds significant practical importance. However, countries around the world are currently highly dependent on fossil fuels, particularly oil; transportation, industry, and other sectors rely on this strategic resource. This is one of the main reasons why oil resources are becoming increasingly scarce – the limited reserves and production levels cannot keep up with the growing demand. Therefore, the development of the renewable energy source biodiesel industry has become increasingly urgent and necessary. 　　2. There is a lack of policy regulations in relevant fields in our country that utilize market economy tools such as taxation and investment subsidies for regulation. Comparing the policy regulations in Europe and the United States, they primarily use market-based and administrative measures such as investment subsidies, tax incentives, and **premium purchases to drive the rapid development of the biodiesel industry. Relatively speaking, our country needs to reflect on and make improvements in these areas, especially regarding the development of the biodiesel industry. 　　Investment subsidies are an important measure by the EU to **promote the development and utilization of biomass energy**. For example, since 1975, Sweden has allocated 36 million euros each year from its budget to support biomass combustion and conversion technologies, primarily in the form of subsidies for research and development as well as for demonstration projects at the early stages of commercialization. ； From 1991 to 2001, Germany’s federal government provided investment subsidies in the field of biomass energy totaling 295 million euros. Starting in 1990, Germany’s KfW bank provided low-interest loans to private companies for biomass energy development, at rates 50% lower than market rates; from 1991 to 1995, Italy offered investment subsidies of 30%–40% for biomass utilization projects. 　　Tax and fee reductions are also important measures taken by the EU to **promote the development of renewable energy**. The EU imposes high taxes on energy consumption, with a variety of such taxes; in particular, the taxes on petroleum product consumption are very high, accounting for 2/3 of the price of gasoline and diesel. However, all EU countries exempt the use of renewable energy from various energy taxes. Sweden, for example, has relatively high energy taxes; these include fuel taxes, energy taxes, CO2 taxes, SO2 taxes, and so on. If all energy taxes were completely exempted, it would equate to a subsidy of 2 euros per kilowatt-hour. Therefore, Sweden relies primarily on tax policies to promote the development and use of biomass energy, by exempting biomass energy projects from all types of energy taxes. 　　3. China’s laws and regulations impose regulations and constraints on the sources of raw materials used in biodiesel production as well as on corporate costs. 　　In our country, policy restrictions on used oil as a raw material make it difficult to achieve economies of scale. Moreover, the rising prices of used oil make production costs unaffordable, posing serious challenges for businesses in their operations. Currently, the price of edible oil in the domestic market is around 7,000 yuan per ton; oil used in restaurants and hotels costs about 3,000 yuan per ton, while waste animal and vegetable oil recovered from sewers is priced at around 2,000 yuan per ton. These waste oils used in high-temperature applications contain large amounts of harmful carcinogenic substances; foreign laws strictly prohibit their disposal into sewers or use as food, and they must be handed over to environmental protection authorities for centralized collection, with a corresponding waste disposal fee having to be paid. At present, there are no legal regulations in our country regarding this issue, which allows some lawbreakers to purchase oil that has been used for high-temperature cooking from restaurants and hotels. They even recover waste oil from sewers, filter it, press it, and treat it with clay, before reintroducing it into the market as edible blended oil – thereby posing a serious threat to people’s health. Because there are channels for the circulation of used oil, this poses a long-term threat to the public; a few people profit from it, while it hinders and blocks the supply of raw materials for biodiesel processing companies, increasing their costs. 　　(II) Legal measures to promote the development of biomass energy such as biodiesel in our country in the future. As we know, formulating an energy strategy in legal form helps to ensure its authority, continuity, and transparency. Therefore, for the medium- to long-term development plan of biodiesel energy in our country, it could be considered to be formalized in legal form at an appropriate time. This not only helps to ensure the implementation of our country’s energy policies, but also alleviates external concerns regarding these policies and the direction of our energy strategy, thereby reducing and gradually eliminating the negative impacts of the \"China energy threat theory.\" 　　1. Amend the Renewable Energy Law and enact relevant specialized supporting laws and regulations to bring the industrial development of biodiesel onto a legal footing. For example, the Renewable Energy Law should encourage and support the industrial development of biodiesel; for biodiesel-related projects that are included in the Guidelines for the Development of the Renewable Energy Industry and meet the credit requirements, financial institutions are required to provide preferential loans with fiscal subsidies, and tax incentives should be offered to such biodiesel projects listed in the guidelines. **Departments at all levels should also implement the Renewable Energy Law and provide strong support for the development of biodiesel in the country. 　　2. Formulate relevant policies and regulations to clarify the tax incentives for the biodiesel industry. Appropriate tax incentives should be provided to the biodiesel industry, in line with the support given to other renewable energy industries ； The use of biodiesel in potential public service sectors such as urban buses and long-distance freight vehicles is also feasible; considering the use of clean biodiesel as part of the \"Green Olympics\" initiative, enterprises and organizations that are qualified should also actively experiment with biodiesel ； Relevant departments should include biodiesel in industrial development plans and science and technology development plans, and provide support to biodiesel enterprises through interest-subsidized loans and innovation funds for small and medium-sized enterprises. 　　3. **Relevant administrative departments in charge of environmental protection and hygiene should promptly establish specific legal regulations for the collection and treatment of waste oils, so as to ensure the safety of edible oils, provide raw materials for biodiesel, and reduce enterprise costs. 　　To regulate the entry of waste edible oils into the edible oil supply chain and prevent threats to food safety, various regions have enacted corresponding regulations. Notable examples include the \"Measures for the Prevention and Control of Pollution Caused by Waste Edible Oils in Shanghai\" and the \"Measures for the Collection, Transportation, and Treatment of Kitchen Waste in Beijing\"; other smaller cities also formulate their own regulations by referring to these guidelines. However, these regulations are quite general and lack operability. Some results have been achieved since the regulations were introduced, but the threat posed by discarded oils to the safety of edible oils has not been fundamentally addressed; the situation tends to improve or worsen depending on the intensity of enforcement efforts. Departments responsible for environmental protection and technical supervision should, in accordance with the provisions of the Renewable Energy Law, strictly prohibit the use of waste oil from animals and plants. Waste oil used by restaurants, hotels, pharmaceutical industries, etc. must not be poured into sewers, and illegal activities involving the reprocessing of such waste oil for use in the food industry must be severely cracked down on. Environmental protection departments shall assign the task of purchasing this waste oil to companies that produce biodiesel, and require them to do so. 　　4. **Relevant departments should establish as soon as possible quality standards for biodiesel quality, as well as standards regarding biodiesel production processes, process design, and safe production.** 　　Due to the lack of quality standards. Quality and technical supervision departments across the country find it difficult to determine whether biodiesel is of qualified standard. Due to the lag in standard development and the wide variety of assessment agencies, as well as the varying standards used for evaluation, many assessments lack scientific rigor and become mere formalities ； The news coverage is exaggerated, the procedures for technology transfer are inadequate, and many organizations transfer technology despite not having the necessary capabilities, which has led to numerous disputes ； There were no rigorous driving tests conducted on the vehicle at all. **While providing strong support to the biodiesel industry, it is necessary to take strict action against companies that engage in the fraudulent transfer of biodiesel technology, in order to prevent them from harming the healthy development of this industry ； On the other hand, existing biodiesel manufacturers must also be regulated by strict quality standards to prevent them from neglecting product quality due to strong sales demand. For the healthy development of the industry, strict quality control is necessary during the period of its rapid growth. 　　5. **Departments such as agriculture, forestry, and land resources should issue relevant regulations to vigorously develop and establish dedicated sources of raw materials for biodiesel. China has limited land resources; therefore, agricultural areas designated for grain production under laws such as the Land Management Law, such as \"basic farmland protection zones\", certainly cannot be converted into areas for growing crops used as raw materials for biodiesel. Land desertification is a serious problem in our country. In the north, especially in the northwest regions, there are vast mountainous and sandy areas suitable for planting trees, shrubs, and oil-producing plants, which provide abundant renewable raw materials for the biomass fuel industry. This helps to adjust the rural industrial structure, increase farmers’ incomes, address the issue of surplus rural labor force, ensure energy security, protect the ecological environment, promote the development of agriculture and processing industries, and boost the rural economy. Therefore, it is a practical and feasible option for our country to utilize marginal lands (such as sandy wastelands, saline-alkali lands, and hillside lands) to develop the biomass industry and provide raw materials for biodiesel. 　　In summary, biodiesel is a typical \"green energy\" source. With appropriate legal regulations in place, the vigorous development of biodiesel holds great strategic significance for sustainable economic development, promoting energy substitution, reducing environmental pressure, and controlling urban air pollution. 　　Author’s profile: Wang Chunyang, a master’s student in environmental law at the Law School of Renmin University of China.