Biofuels could help create thousands of new jobs across the country.
The International Council on Clean Transportation’s (ICCT) report claims if all the wastes and residues that are sustainably available in the EU were converted to biofuels, it could supply 16% of road transport fuel by 2030.
This would create 36,000 jobs and save 37 million tonnes of oil each year.
The report said the production of biofuels would need to be developed sustainably to protect biodiversity, water resources and soil functionality.
The Renewable Energy Association (REA) welcomed the news.
Clare Wenner, Head of Renewable transport said: “The REA supports a target for advanced biofuels within EU legislation and we hope this will give the positive signal so badly needed by this emerging sector.”