EU Moves to Ban Palm Oil from Biofuels

DanEnergy, Industry News Release

euThe European Union (EU) gave approval to a climate plan that includes banning palm oil from use in fuels, angering palm oil producers.

Indonesia and Malaysia, the two largest palm oil producing nations in the world, call the move a protectionist trade barrier. The ban is part of a power market overhaul aimed at reducing energy consumption to meet climate goals, with the palm oil ban starting in 2021.

The EU approved draft measures of the plan this week, meaning the European Parliament, the European Commission and the EU national governments must craft and vote on a final version of the plan, according to Reuters.

Palm oil can be used as a substitute for crude oil to make biofuel, of which a large portion of European palm oil imports are used for biofuels, giving the palm industry cause for concern as they fear overall demand will fall.

However, the palm oil industry has come under fire in Europe recently over its impact on forest destruction.

From the National Association of Farm Broadcasting News Service.