The objective fixed by the European Commission in 1995 was that 5 % of the fuel used for transport in France should be produced from renewable energy by 2005. As opposed to some other European countries, there is no environmental fax on fossil fuels in France, but the Government has agreed to a tar incentive system on biofuels. Experimental work on liquid biofuels as a transport fuel started in France in the early 80＇s, but the use of biofuels on a commercial basis really started to develop,chen the setaside rules and tar incentives came into force in 1991. Out of the two routes originally considered for development : bioethanol and ifs ETBE derivative, and vegetable oils and their methyl ester derivatives, priority has now been given to. ETBE produced from sugar beet and wheat and now from sub-products of starch industry, which are widely grown in France; ETBE is blended with gasoline for use in spark ignition engines. Production of wheat and beet for energy purposes is very similar to food production. In France, ethanol produced from sugar beet is a traditional industry; this was the first route to be developed. The results of a life cycle analysis made for ETBE produced from sugar beet will be given, showing advantages and limitations. Alcohol produced from wheat is a more recent activity; two industrial plants have been built since beginning of the 90＇s and other projects are planned like for example a production from starch industry. RME (rapeseed methyl ester)for use in diesel engines at various blend rates. Vegetable oils or their derivatives such as esters can be used directly in diesel engines. Pure, filtered and degummed oils can be used in pre-chamber engines. Relatively advanced knowledge has now been gained about esters; because their characteristics are very similar to those of conventional diesel fuel, they are considered suitable for use in direct injection diesel engines without engine modification. In France, methyl ester is at present produced mainly from rapeseed; the results of the first life cycle analysis on RME (1991-93) will be summarised. Sunflower ester has been undergoing evaluation since 1995. Rape methyl ester is now widely commercialised (about 300 000 t/year); unesterified oil is still undergoing experimental work. A wide-scale advanced laboratory and field test programme was launched by ADEME in the early 90＇s, on the use of RME in engines. IFP (French Petroleum Institute) was the co-ordinator of this experimental programme which included * Laboratory measurements and engine tests with RME; * Field tests on captive vehicles or fleets (with different blends of RME); * Field tests with a 5% RME blend with diesel fuel. The major conclusion is that a 5% RME blend in diesel fuel does not cause any damage to the engines (running and engine wear) it improves the diesel fuel lubricity when mixed with a low sulphur content fuel. The French government has now authorised the unpublicized use of 5% RME in diesel fuel and domestic fuel. The use of higher blend rates is also authorised on a case-by-case basis. The French "clean air act" which came into force on 31/12/96, encourages the use of oxygenated compounds.