The basis for the development of the biodiesel market in Europe is the EU directive No. 2003/30/EC from 8 May 2003 about the support of using biofuels and sources of renewable energy for transport. This determines the minimum share of biofuels in the overall fuel market. In 2005, this share was to amount to 2% and should be increased by 0.75% each year, until the objective of 5.75% is achieved in 2010. The directive No. 2003/30/EC leaves the right to the countries to pursue their own policy in the field of biofuels. In some European countries biodiesel is either totally exempted from a petroleum tax/environmental protection tax (Austria) or a quota for biodiesel free of a petroleum tax/environmental protection tax is fixed (France, Sweden). In Germany biodiesel was taxed from 1. January 2008 with a petroleum tax of 15 eurocents per 1 litre. In comparison : Mineral-Diesel is taxed with 48 c per liter.

In Poland the level of the mineral – oil – tax was defined by the law from May 11th 2007.