European parliament committee opposes restrictions on soybean oil biofuels

A committee of the European Parliament has recommended rejecting the European Commission’s proposal to gradually phase soybean oil out of the EU biofuels market. The final decision is expected during the Parliament’s plenary session on July 6–9, according to the Danube Soya Association.

The proposal would classify soybean oil as a feedstock with a high risk of indirect land-use change (high ILUC). If adopted, soybean oil would no longer count toward the EU’s renewable energy targets from 2030, effectively leading to a significant reduction in its use for biofuel production.

Danube Soya warns that the measure could have serious consequences for Ukraine’s soybean sector. Ukraine is one of the EU’s largest suppliers of non-GM soybeans, soybean meal and soybean oil, while the profitability of soybean processing largely depends on sales of soybean oil to the biofuels industry.

According to the association, soybean meal accounts for about 80% of soybean processing output, while soybean oil represents only around 18%. However, soybean oil generates a significant share of processors’ revenue, with the biofuels market accounting for up to 80% of soybean oil sales for some producers.

“If this market disappears, processing margins will decline, reducing demand for Ukrainian soybeans. This is despite the fact that Ukrainian soybeans are already traceable, certified and deforestation-free, meaning the proposed act would penalize producers who already comply with EU sustainability requirements,” Danube Soya said. If a majority of Members of the European Parliament support the committee’s position during the July 6–9 plenary session, the delegated act could be rejected and the proposed restrictions would not enter into force.

Tags: soybean oil, EU, biofuel