COMMISSION REVIEWS BIOFUEL RULES
The European Commission has taken a further step in implementing its renewable energy policy with the adoption, on 13 April, of a delegated regulation revising the criteria for identifying biofuels associated with a high risk of indirect land-use change (ILUC). The key development is the inclusion of soy alongside palm oil in the list of high-risk feedstocks.
In practical terms, this means that biofuels produced from soy will no longer be eligible to count towards the EU’s renewable energy targets in transport after 2030, as set out under the Renewable Energy Directive. The measure forms part of the EU’s gradual phase-down of high ILUC-risk biofuels, a process already underway in recent years.
The delegated regulation revises both the data and the methodology used to apply established criteria to identify so-called high ILUC-risk feedstocks, i.e. those whose cultivation expands into high-carbon-stock lands and thus undermines the intended greenhouse-gas savings of biofuels. In other words, the measure intends to keep green fuels deforestation-neutral.
As with all delegated acts, the regulation is now subject to a two-month scrutiny period by the European Parliament and the Council. During this time, either institution may object to its adoption. If no objection is raised, the regulation will enter into force and further clarify the regulatory framework governing biofuels in the EU.
This development underscores the EU’s continued effort to align its climate and energy objectives by limiting the use of feedstocks linked to adverse land-use impacts. It raises questions about the availability of viable alternatives to meet decarbonisation targets in the transport sector, as well as the broader implications for supply chains and economic operators. In road transport, the phase-out will tighten the availability of conventional biodiesel blending options, particularly those derived from imported vegetable oils. Operators and fuel suppliers will need to pivot more decisively towards other, e.g. waste-based, fuels and electrification.