Civil Society Groups Call for End to Soy Biofuels

European Union (EU)Feedstocks Field/Orchard/Plantation Crops/Residues Opinions Policy Sustainability

February 08, 2024

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(Transport & Energy) 30 non-profit organisations, including T&E, WWF, Oxfam and Birdlife, call on the European Commission to phase out support for deforestation-driving soy biofuels -- The Commission has one last chance before the European Parliament elections in June to include soybean oil alongside palm oil in its classification of high ILUC risk feedstock in the Renewable Energy Directive (RED).

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 currently 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 should guide the decision-making process. Phasing-out high ILUC risk feedstocks is compatible with WTO rules, on the basis of environmental protection. Ultimately, trade disputes and negotiations should not deter the EU from making essential climate decisions and aligning with its international commitments. 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. READ MORE

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EUROPE: NGOS CALL ON EUROPEAN COMMISSION TO PHASE OUT SUPPORT FOR SOY BIOFUELS (Bunkerspot)
Brussels accused of backsliding on soy ban for biofuels (EurActiv)
Cargill Announces Commitment to Eliminate Deforestation and Land Conversion in Brazil, Argentina and Uruguay by 2025 -- Cargill’s commitment extends to several row crops, including soy, corn, wheat, and cotton, and builds on its commitment to protect and revitalize land in critical ecosystems (Cargill)
PRODUCERS BENEFIT FROM INCREASED BIODIESEL PRODUCTION (Brownfield Ag News)
Increased Biofuel Production in the US Midwest May Harm Farmers and the Climate (World Resources Institute)
Briefing for EU Member States on bioenergy plans and policies (World Wildlife Fund)
Biofuel Blunders: Time to fix two decades of EU policies driving food insecurity - Oxfam (Ends Europe)

Excerpt from Bunkerspot: Click here to access the open letter that the non-profits have sent to the European Commission. READ MORE

Excerpt from Cargill: South America is one of the most critical regions for biodiversity and vital to feeding the world. To protect South America’s natural ecosystem, Cargill is announcing an accelerated commitment to eliminate deforestation and land conversion from its direct and indirect supply chain of key row crops in Brazil, Argentina, and Uruguay by 2025. The commitment spans several important commodities in the global food system, including in-country origination of soy, corn, wheat, and cotton, building upon the company’s global commitment of deforestation-free commodities and conversion-free soy across South America by 2030.

“At Cargill, we are actively shaping a future where critical ecosystems will be protected for generations to come,” said Pilar Cruz, Cargill’s Chief Sustainability Officer. “Accelerating our commitment is a testament to our resolve to make real, tangible progress against deforestation and land conversion, in line with our climate action plan, while also supporting the livelihoods of farmers and agricultural communities that are vital to feeding the world.”

Combined, Argentina, Brazil and Uruguay provide approximately 30 percent of the world’s trade flows and 13 percent of total production of these crops. Cargill’s commitment will help protect native vegetation and support sustainable agriculture in these countries.

“As Cargill works to eliminate deforestation in our supply chains around the world, we are prioritizing collective action and collaborative partnerships with farmers, governments, non-governmental organizations, and other critical stakeholders to find balanced solutions for economic development and environmental conservation,” Cruz added.

In particular, Cargill will leverage World Resources Institute’s (WRI) geospatial expertise alongside improved traceability to strengthen its monitoring, reporting and verification of natural ecosystems and farm areas. WRI is committed to supporting implementation for deforestation- and conversion-free supply chains, which are critical components of food security, biodiversity conservation, and climate action.

“Getting deforestation and conversion of natural ecosystems out of soft commodity supply chains is one of the most significant things a business can do for people, nature, and climate,” said Craig Hanson, Managing Director of Programs at WRI. “Cargill’s new commitment aligns with a vision that it’s possible to produce food while protecting vital ecosystems. Our monitoring expertise should help Cargill achieve this ambitious commitment in Brazil, Uruguay and Argentina by 2025.”

With farmers at the center of the agriculture supply chain, Cargill remains firmly committed to working with farmers across the region and investing in solutions that support their livelihoods.

Sustainability is deeply ingrained in Cargill’s long-term strategy, integral to its mission of nourishing the world in a safe, responsible, and sustainable manner. The company’s 2023 ESG Report outlines its strategy and progress in key areas, such as decarbonization, sustainable land use and food security, as well as in-depth chapters on priority supply chains such as soy.

About Cargill

Cargill is committed to providing food, ingredients, agricultural solutions, and industrial products to nourish the world in a safe, responsible, and sustainable way. Sitting at the heart of the supply chain, we partner with farmers and customers to source, make and deliver products that are vital for living.

Our 160,000 team members innovate with purpose, providing customers with life’s essentials so businesses can grow, communities prosper, and consumers live well. With 159 years of experience as a family company, we look ahead while remaining true to our values. We put people first. We reach higher. We do the right thing—today and for generations to come. For more information, visit Cargill.com and our News Center.

About World Resources Institute
World Resources Institute (WRI) is a global research organization with offices in Brazil, China, Colombia, India, Indonesia, Mexico and the United States, and regional offices for Africa and Europe. Our over 1,700 staff work with partners to develop practical solutions that improve people’s lives and ensure nature can thrive. READ MORE

Excerpt from Brownfield Ag News: Greg Anderson, who also farms in northeast Nebraska, says the clean fuels industry increases market opportunities for soybeans.

“Soybeans continue to comprise about one half of biodiesel and renewable diesel production, and that will stay constant. It will still be the foundational flagship feedstock for years to come.”

He tells Brownfield it also adds value to soybean oil. “It contributes to the price of the bushel at the farm gate. Without biodiesel, we’d be looking at a lot less dollars per acre.”

Anderson says the return has been critical for farmers facing higher production costs. READ MORE