European Commission moves to phase out palm and soy-based biofuels by 2030

The European Commission launched a public consultation on a draft amendment to Delegated Regulation (EU) 2019/807, proposing the gradual exclusion of biofuels derived from palm oil and soybean oil by 2030.
Under the proposal, companies subject to EU renewable energy quotas would no longer be permitted to count biofuels produced from these feedstocks towards their obligations after that date.
The draft regulation outlines a phased reduction in the eligibility of palm- and soy-based biofuels from 2025 onwards, 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 become the only cultivated biomass oil source eligible for quota compliance.
Several 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.
The proposed exclusion of soybean oil is based on findings published by the European Commission on 20 January in its report to the European Parliament and Council on the global expansion of food and feed crop production (COM(2026)36 final).
The report, prepared by consultancy Guidehouse, assesses changes in global cultivation areas and their impact on high-carbon stock land, including virgin forest regions.
The Commission concludes that both palm oil and soybeans are raw materials associated with a high risk of indirect land-use change (iLUC). As a result, not only soybean oil but also soybean meal is considered economically linked to cultivation expansion and environmental risk.
In light of these developments, stakeholders are encouraged to review the proposal and participate in the European Commission’s consultation process.