Letter

Civil society groups urge the Commission to stop incentivising soy biofuels

December 19, 2024

24 non-profit organizations, including T&E, WWF, Oxfam, and Birdlife, call on the European Commission to choose climate, nature, and people over free trade, and respect the legal obligations to review the rules on deforestation-causing biofuels.

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The Commission has been postponing since June 2021 the publishing of the latest report on the expansion of unsustainable feedstocks for biofuels production, such as palm and soy, into highly biodiverse areas.This report is the basis for including soybean oil alongside palm oil in its classification of high ILUC risk feedstock in the Renewable Energy Directive (RED), and phasing it out from counting towards renewables targets.

Both soy and palm oil have already been identified as significant drivers of deforestation and forest degradation and are covered under the recently adopted EU Deforestation Regulation. The letter calls on the Commission therefore to ensure policy consistency and prevent the RED from acting as a loophole that enables deforestation-driving products into the EU.

The European Parliament has already called for an immediate phase-out of both soybean oil and palm oil during the RED negotiations, while several EU Member States, including France, Denmark, Belgium, and the Netherlands, have already started this phase-out on their own accord.

All biofuels made from crops should be phased out from EU renewable energy targets, as using land for biofuel production is counterproductive in climate terms. Soy-based biodiesel is one of the worst offenders and has been proven to emit up to twice as much CO2 as the fossil fuel diesel it is used to replace when taking into account the indirect deforestation caused by the demand for soybean oil. Currently, soy and palm biofuels constitute only one-third of the EU biodiesel feedstock volume, yet they contribute two-thirds of biodiesel CO2 emissions in the EU.

Despite these shocking facts, soy biodiesel has rapidly grown in the EU in recent years. Between 2015 and 2022, the consumption of soy biodiesel in the European Union experienced a fivefold increase, underscoring the need for a critical examination of its environmental and social implications.

What is the Commission waiting for?

The Commission is still facing heavy trade pressure from soy-producing countries, so it remains crucial that the scientific data highlighting the urgent need for the immediate phase-out of both soy and palm biofuels is published as soon as possible. This is even more so important considering that the WTO ruled in March 2024 regarding the dispute with Malaysia in favor of the EU’s decision to cease classifying palm oil biodiesel as a renewable fuel. Moreover, it flagged the EU’s non-compliance with a ‘timely review of the data used to determine which biofuels are high ILUC risk’, making it even more urgent that the European Commission respects its legal obligations and publishes this data as soon as possible.

The EU made the right decision when it classified palm oil as a high ILUC risk feedstock in 2019, despite immense trade pressure from palm-producing countries. It now has the power to do the same for soy biofuels.

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