In 2020, the COVID-19 outbreak cut EU gasoline and diesel use by 13.0 and 9.4 percent, respectively. Bioethanol and biodiesel consumption, however fell by a lower percentage (10.1 and 3.5 percent, respectively) because biofuels use was supported by the ten percent blending target for transport fuels in 2020. Another important factor was the expanding domestic supply of hydrogenation derived renewable diesel. The reduced demand also led to a decline in production of bioethanol and biodiesel (10.1 and 2.0 percent, respectively). With the gradual lifting of the lockdowns and reinforced by the post-2020 Renewable Energy Directive (known as REDII) support measures, biofuel consumption is forecast to pick up again in 2021 but remain below the pre-COVID level of 2019. Additionally, the EU remained the world’s largest wood pellet market in 2020, with consumption of roughly 30.4 million metric tons (MMT). EU wood pellet demand is expected to further expand in 2021 to 32.3 MMT.