European Parliament Blocks Soy High-ILUC Listing, Backs Palm Phase-Out From 2030 EU Targets

Brussels — The European Parliament on 8 July 2026 adopted a resolution objecting to a European Commission delegated regulation of 10 April 2026 setting a trajectory to reduce biofuels with a high risk of indirect land-use change (ILUC). Parliament's objection targets the addition of soybean to the list of high ILUC-risk feedstocks. It explicitly stated that it does not object to the phase-down of palm oil-based biodiesel, which is due to stop counting towards EU renewable energy targets by 2030.

What the rejected regulation does

The delegated regulation, C(2026)02306, amends Delegated Regulation (EU) 2019/807, the implementing rule under the Renewable Energy Directive (RED II) that determines which feedstocks are high ILUC-risk. According to Parliament's resolution, the 2019/807 methodology assesses land expansion "since 2008" and uses a threshold of 10% expansion into high-carbon-stock land. Under that methodology, the Commission's 2019 report put soybean's share of such expansion at just 8%, so soy was not classified as high-risk, while palm oil was.

Based on updated scientific data, the April 2026 regulation adds soybean to the list alongside palm oil. As a result, soy-based biodiesel would stop counting entirely towards EU renewable energy targets by 2030, as is already the case for palm. OFI Magazine reported that the regulation set a progressive reduction of soy-derived biofuels until 2030.

Parliament's reasons: baseline year and double cropping

In its resolution, Parliament argued that soy's classification shifted because the observation period was moved from 2008 to 2014. That change, it said, was not required by the WTO ruling, which concerned only the timeliness of data updates. Parliament also said the new data ignore soybean double-cropping practices, overstating land expansion.

Parliament highlighted domestic economic stakes. The EU produces only about 6% of the soybeans it consumes. According to the resolution, losing the biofuel outlet could force the EU to replace up to 4.8 million tonnes of domestic soybean meal with imports, with estimated losses of about EUR 36 million for farmers, EUR 120 million for crushers and up to EUR 1.3 billion for the EU biodiesel industry.

By contrast, the resolution describes palm oil's high ILUC-risk classification as "scientifically robust and uncontested". Parliament asked the Commission to submit a revised act without delay that keeps the palm biodiesel phase-down and the fixes to the low ILUC-risk certification procedure.

Link to Indonesia's WTO dispute

The ILUC revision is part of the EU's effort to implement the ruling in dispute DS593, brought by Indonesia. In a status report to the WTO Dispute Settlement Body (DSB) dated 9 April 2026, the EU said the DSB adopted its recommendations and rulings on 24 February 2025, with the reasonable period of time for implementation ending on 24 February 2026. The EU reported that the Commission adopted a report on the expansion of food and feed crops on 20 January 2026 and opened public consultations on draft amendments the following day.

Parliament's resolution says the January 2025 WTO panel ruling found broadly in the EU's favour but identified specific violations, including failure to update scientific data in a timely manner, shortcomings in the low ILUC-risk certification procedure, and failure to notify measures properly. Indonesia reads the ruling differently. Trade Minister Budi Santoso, quoted by ANTARA on 25 February 2026, urged the EU to comply promptly with the panel ruling and said sustainability policies cannot justify measures that breach the non-discrimination principle.

A European industry coalition including COCERAL, Copa-Cogeca, FEFAC, FEDIOL and the European Biodiesel Board welcomed the vote. According to OFI Magazine, a Parliament spokesperson said member states cannot adopt the regulation as it stands, so the Commission will need to draft a new proposal.