European Commission consults on phasing out high iLUC-risk biofuels by 2030

Under the proposal, companies subject to EU renewable energy quotas would no longer be permitted to count biodiesel or HVO produced from these feedstocks towards their quota obligations from 2030 onwards.
The draft regulation sets out a phased reduction in eligibility from 2025, with intermediate thresholds of 71.4% in 2025, 42.8% in 2027 and 14.3% in 2029, measured against gross final energy consumption.
Several member states, including France, the Netherlands and Germany, have already implemented restrictions on palm oil-based biofuels ahead of the proposed timetable.
From 2030, rapeseed oil would remain the only cultivated biomass oil source eligible under the framework.
The proposed exclusion of soybean oil follows the European Commission’s report published on 20 January 2026 (COM(2026)36 final), which assesses the global expansion of food and feed crop production.
Based on updated data and analysis conducted by Guidehouse, the report concludes that both palm oil and soybeans present a high risk of indirect land-use change (iLUC), particularly in high-carbon stock areas such as virgin forests.
Stakeholders are encouraged to review the proposal and participate in the Commission’s consultation process.












