European Commission proposes phasing out palm- and soy-based biofuels by 2030

The European Commission has launched a public consultation on a draft amendment to Delegated Regulation (EU) 2019/807, proposing the gradual phase-out of biofuels produced from palm oil and soybean oil by 2030. Under the proposal, companies subject to EU renewable energy quotas would no longer be allowed to count biofuels derived from these feedstocks toward meeting their obligations after that date.

The draft regulation предусматриває a gradual reduction in the eligibility of palm- and soy-based biofuels, with intermediate thresholds set at 71.4% in 2025, 42.8% in 2027, and 14.3% in 2029, measured as a share of gross final energy consumption. From 2030, rapeseed oil would remain the only cultivated vegetable oil eligible for compliance with renewable energy quotas.

Several EU member states, including France, the Netherlands, and Germany, have already moved ahead of this timeline by excluding palm oil-based biofuels from their national schemes since 2023, reflecting growing environmental concerns and policy alignment across the bloc.

The proposed exclusion of soybean oil is based on a European Commission report published on 20 January 2026 on the global expansion of food and feed crop production. The study, prepared by consultancy Guidehouse, evaluates changes in global cultivation areas and their impact on high-carbon-stock land, including primary forest regions.

The Commission concluded that both palm oil and soybeans carry a high risk of indirect land-use change (iLUC). Because of the economic link between soybean oil and soybean meal, both products are considered connected to agricultural expansion and environmental risks. Stakeholders are encouraged to review the proposal and participate in the consultation process.

Tags: soybean oil, EU, palm oil, biofuel