European Commission’s Move to Exclude Soybean and Palm Oil Biofuels by 2030
On January 21, 2026, the European Commission took a striking step towards reshaping its renewable energy landscape by launching a public consultation concerning a draft amendment to Delegated Regulation (EU) 2019/807. This proposed regulation outlines a gradual phase-out of biofuels derived from soybean oil and palm oil by the year 2030. The intention behind this amendment is not only to meet renewable energy quotas but also to address environmental concerns associated with these widely used feedstocks.
Phase-out Timeline: A Gradual Approach
The draft regulation introduces a structured timeline for the reduction of eligible biofuel feedstocks. Starting in 2025, the use of biodiesel or hydrotreated vegetable oils (HVO) made from palm and soybean oils will slowly decrease. The amendment sets intermediate thresholds for eligibility:
- 71.4% in 2025
- 42.8% in 2027
- 14.3% in 2029
These percentages are based on gross final energy consumption, effectively creating a phased reduction that allows industries time to adapt while still pushing towards sustainability.
Member States’ Early Actions
It’s noteworthy that several EU member states have proactively initiated restrictions on palm oil-based biofuels even before the Commission’s proposed timetable. Countries like France, the Netherlands, and Germany have implemented these measures, which signal a growing concern over the environmental implications of these energy sources. These early actions reflect a broader trend among EU nations toward more sustainable biofuel practices and a commitment to combat climate change.
Rationale Behind the Exclusion of Soybean Oil
The decision to exclude soybean oil from the renewable energy framework is backed by a comprehensive report released on January 20, 2026 (COM(2026)36 final). This report underscores the considerable risks tied to indirect land-use change (iLUC) that arise from expanding food and feed crop production. Groundwork established by Guidehouse’s updated data and analysis reveals that both palm oil and soybeans pose a substantial risk of contributing to deforestation and habitat loss, particularly in areas rich in carbon stocks such as untouched forests.
Remaining Options: Focus on Rapeseed Oil
Under the proposed regulations, from 2030 onward, rapeseed oil will be the sole cultivated biomass oil source eligible under the EU renewable energy framework. This move indicates a shift in focus toward alternative feedstocks that pose lower environmental risks, while still supporting the renewable energy goals set by the Union. The exclusivity of rapeseed oil emphasizes the need for sustainable practices that protect ecological integrity while still fulfilling energy needs.
Stakeholder Engagement: Time to Voice Opinions
As the European Commission seeks input on this significant regulatory change, stakeholders—including companies, environmental organizations, and the general public—are encouraged to review the proposal thoroughly. The consultation process presents a valuable opportunity for individuals and organizations to express their views, provide feedback, and contribute to shaping the future of biofuels across Europe. Engaging in this dialogue can influence the final structure of the regulation and ensure that it leads to meaningful progress in sustainability.
The Bigger Picture: Aligning with Climate Goals
The European Commission’s proposed amendments are a vital part of a larger strategy to align with climate targets and while promoting sustainable development. By prioritizing the exclusion of biofuels linked to environmental degradation, it aims to curb practices that contribute to climate change and environmental harm, thus steering Europe toward a cleaner, greener future.
In summary, the proposed amendment reflects a critical pivot within the EU’s renewable energy policy, focusing on sustainability and ecological integrity. As Europe embarks on this new chapter in biofuel regulation, the implications are far-reaching, setting the groundwork for more responsible energy practices in the years to come.