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EU proposes phasing out palm and soy biofuels by 2030

The European Commission has opened a public consultation on a draft amendment to EU rules that could gradually exclude biofuels made from palm oil and soybean oil by 2030, biofuels international reported.

The draft amendment to EU renewable energy regulations proposes a gradual reduction in the use of these biofuels. Starting in 2025, their contribution toward renewable energy quotas would be limited to 71.4%, falling to 42.8% in 2027 and 14.3% in 2029. By 2030, only rapeseed oil would qualify for meeting renewable energy targets.

Several EU countries, including France, Germany, and the Netherlands, have already stopped counting palm oil-based biofuels in their national schemes since 2023.

The Commission’s push to also exclude soybean oil follows a report published in January, assessing the global expansion of food and feed crops and their effect on forests and high-carbon lands. The study, carried out by consultancy Guidehouse, found that both palm and soybean cultivation carry a high risk of indirect land-use change, meaning they can drive deforestation and environmental damage. Soybean meal, used as animal feed, is also linked to these risks.

The Commission is now inviting industry stakeholders, governments, and other interested parties to review the draft and provide feedback before the rules are finalized.

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