Against the macro-backdrop of the global response to climate change and energy transition, deep decarbonization in the transportation sector has emerged as a new focal point of international geopolitical competition. Anchored in the “Dual Carbon” goals (carbon peak by 2030 and carbon neutrality by 2060), this article presents a systematic review and in-depth analysis of the four key biomass liquid fuel industries: bio-methanol, sustainable aviation fuel (SAF), bio-ethanol, and biodiesel.
The article begins with a global perspective, detailing the industrial landscapes of pioneering regions such as the European Union, the United States, and Singapore. By analyzing the EU Renewable Energy Directive (RED Ⅲ), the EU Emissions Trading System (EU ETS), and the tax credit mechanisms within the U.S. Inflation Reduction Act (IRA), it reveals how internationally coordinated “green premium” mechanisms and binding compliance mandates collectively accelerate the commercialization cycle of industrial-scale liquid biofuel. In particular, the article highlights that mandatory decarbonization processes in international aviation and maritime transport—exemplified by the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) mechanism and the International Maritime Organization’s Net-Zero Framework (NZF), which are catalyzing unprecedented demand for sustainable aviation fuel (SAF) and bio-methanol.
The article then identifies a structural contradiction in China’s biomass liquid fuel industry characterized by “massive capacity with overseas market dependence.” While China maintains stability in the bio-ethanol sector and has gradually opened export channels for the SAF industry through a “whitelist” mechanism—alongside launching refueling pilots in multiple locations—the biodiesel industry has been severely impacted by EU’s anti-dumping investigations, resulting in a sharp decline in export volumes and chronically low plant utilization rates, exposing the vulnerability of over reliance on overseas markets. Furthermore, the domestic market contends with systemic constraints, such as the absence of specific tariff codes (HS codes), disorderly competition for feedstock, low localization of technical equipment, and a lack of mandatory blending standards. These issues prevent massive, planned capacities—such as over 10 million tons of bio-methanol—from materializing into actual economic benefits.
In response to emerging challenges and opportunities, the article proposes a strategic framework for establishing an “internal industrial circulation” system. It suggests leveraging the national policy shift from “dual control of energy consumption” to “dual control of carbon emissions”. The key recommendations include implementing a comprehensive life-cycle green certification system for liquid biofuels; enhancing fiscal and financial incentives to support sustainable development; and explicitly prioritizing biomass feedstocks in national energy allocation strategies. Finally, the article calls for expediting domestic mandatory blending pilot programs in high-impact sectors such as aviation and maritime transport to overcome critical bottlenecks constraining industrial advancement. Collectively, these measures aim to achieve a strategic leap from “raw material export” to “high-value fuel application”.
