The use of biodiesel for transport purposes is subject to a mineral oil tax in Denmark. It is not, however, subject to CO2 taxes. The use of biodiesel for heating purposes is exempt from duties, although its use in district heating plants may be subject to certain restrictions.

Generally speaking, the use of biodiesel in the rest of Europe is subject to reductions in duties or demands for minimum admixture percentages for biofuel in fossil fuel.