Wedoany.com Report on Feb 14th, The European Commission recently launched a public consultation on a draft amendment to the Delegated Regulation (EU) 2019/807, proposing a phase-out of biofuels derived from palm oil and soybean oil by 2030. According to the proposal, companies subject to the EU renewable energy quota will be unable to count biofuels produced from these feedstocks towards their compliance obligations after this date. This measure aims to reduce environmental risks associated with indirect land-use change (iLUC) and promote more sustainable sources of biomass oils.
The draft outlines a phased reduction plan for the eligibility of palm oil and soybean-based biofuels, starting in 2025. Intermediate thresholds are set at: 71.4% in 2025, 42.8% in 2027, and 14.3% in 2029, measured as a share of total final energy consumption. From 2030 onwards, rapeseed oil will be the only cultivated biomass oil source eligible for quota compliance. Several member states, including France, the Netherlands, and Germany, have already taken action ahead of schedule, excluding palm oil-based biofuels from their national plans since 2023.
The proposed exclusion of soybean oil is based on findings from a report (COM(2026)36 final) submitted by the European Commission on January 20. Prepared by the consulting firm Guidehouse, the report assessed the impact of global cropland expansion on high-carbon stock land, including primary forest areas. The Commission concluded that both palm oil and soybeans are associated with a high risk of indirect land-use change. Consequently, not only soybean oil but also soybean meal is considered economically linked to cultivation expansion and environmental risks.
The European Commission encourages stakeholders to review the proposal and participate in the consultation process to ensure the transparency and effectiveness of the policy adjustment. This plan to phase out palm oil and soybean-based biofuels is expected to drive transformation in the EU biofuels market and support more environmentally friendly energy solutions.
