The UK needs a biofuel pump on every forecourt to help achieve a new EU green power target, according to the Renewable Energy Association (REA).
Biofuels serve less than 1% of the transport market, the REA said
The UK is "a million miles away" from achieving 20% of total energy and 10% of transport fuel from renewables by 2020, the industry body said.
Renewables account for just 2% of energy while biofuels are less than 1% of the transport market, the REA added.
PM Tony Blair has praised the targets as "groundbreaking and ambitious".
The renewable energy targets, agreed by EU leaders in March, were generally met with jubilation from environmental groups, though concerns were expressed about whether the biofuel industry could meet its target sustainably.
But now the government needs to come up with a credible plan on how to achieve those targets, the REA says.
It is urging the government to delay its Energy White Paper - expected next month - to give ministers time to plan a coherent renewables policy.
Chairman Philip Wolfe said that, in order to meet the targets, thousands of new green fuel petrol pumps were needed.
Some 200,000 homes would need to be refurbished every year using energy efficiency measures to reduce carbon dioxide emissions to zero, he added.
He also called for a commitment to build a host of major renewable energy projects.