Europe, in bid to phase out palm biofuel, leaves fans and foes dismayed

The European Commission has officially approved a measure to phase out palm oil-based biofuel by 2030. But while the move has angered major palm oil producers, it hasn’t entirely pleased environmental activists either.

The so-called delegated act marks yet another step by the European Union (EU) to curb the use of crops that cause deforestation in transportation fuel, over concerns that their production contributes to global carbon emissions and thus exacerbates climate change.

But the phase-out doesn’t mean a ban on palm oil in biofuels. EU member states will still be able to import and use palm oil-based biodiesel, but it will no longer be considered a renewable fuel or be eligible for the attendant subsidies.

The process will also be gradual. Member states’ maximum share of palm oil-based biodiesel that can be counted toward EU renewable transport targets for national governments (and hence be eligible for subsidies) will be capped at 2019 levels until 2023. After that, it will be progressively phased out of renewable targets to zero percent by 2030.