European Parliament blocks European Commission initiative on soybean oil classification

The European Parliament has rejected a draft delegated regulation by the European Commission that would have classified soybeans as a feedstock associated with a high risk of indirect land-use change (iLUC). The decision was welcomed by Germany’s Union for the Promotion of Oil and Protein Plants (UFOP), which argued that the proposed rules could have negatively affected the economics of soybean cultivation and processing in the EU.

One of the key consequences of the proposed changes would have been restrictions on the use of soybean oil in biofuel production. According to UFOP, if the regulation had entered into force, soybean oil obtained as a co-product of soybean processing would no longer have counted towards national transport quotas and climate targets when used as a biofuel feedstock. The European Parliament’s rejection of the proposal preserves this marketing channel.

UFOP pointed to a contradiction between the proposed restrictions and the EU’s efforts to increase domestic plant protein production. At around the same time as rejecting the regulation, the European Parliament backed the EU Protein Plan, aimed at expanding the cultivation of protein crops. According to the organization, encouraging soybean production in Europe makes little sense if regulatory measures simultaneously reduce opportunities to market soybean processing products.

For European producers, the ability to market all products generated from soybean processing is important for supporting purchase prices and maintaining the profitability of cultivation. UFOP believes that expansion of protein crop acreage should primarily be driven by market incentives. Origin labeling for ingredients, as envisaged under the EU Protein Plan, could provide additional support.

At the same time, the European Union is expected to remain dependent on imported plant proteins in the foreseeable future. UFOP stressed that imported products should comply with the EU Deforestation Regulation (EUDR) requirements and that these rules should be aligned with existing sanctions regimes. The organization also called for an end to deforestation and conversion of natural areas, backed by effective penalties for environmental damage.

Tags: soybean oil, EU, biofuel