European Parliament Rejects Proposal to Classify Soybean Oil as High ILUC Risk

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July 09, 2026

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by Erin Krueger (Biomass Magazine) The European Parliament on July 8 voted to reject a proposed European Union regulation that would have phased out the use of soybean oil as a biofuel feedstock in the EU by 2030. Representatives of the EU’s biobased diesel industry applauded the decision.

The EU Renewable Energy Directive II introduced specific rules for high-risk ILUC biofuels. Under current rules, the Commission defines high ILUC-risk feedstock as feedstock for which the share of expansion into land with high-carbon stocks is higher than 10% since 2008, with an annual expansion of more than 1%. Only palm oil qualifies as a high ILUC-risk feedstock under that calculation.

A delegated regulation adopted by the European Commission on April 10 proposed to amend the methodology by which high-risk ILUC feedstocks are measured. It also proposed to use 2014 data, as opposed to the current 2008 data. Under the proposed calculations, both palm oil and soybean would surpass the threshold for high ILUC-risk feedstocks, according to a report filed by the USDA Foreign Agricultural Service’s Global Agricultural Information Network in April.

To enter into force, the delegated regulation would have had to be approved by both the European Council and the European Parliament. The European Parliament, however, on July 8 rejected the change. READ MORE

Related articles

Joint statement: European Parliament rejects delegated act on soybean oil, protecting the EU soy value chain (European Biodiesel Board)
Report Name: European Union to Phase Out the Use of Soy-based Biofuels (U.S. Department of Agriculture)
European Parliament rejects delegated act on soyabean oil (Oils & Fats International)
EU Parliament biofuels blunder could expose EU to over $5.6 billion a year in sanctions (European Federation for Transport and Environment)
European Parliament Blocks Move to Strip Soybeans of Renewable Status (Bloomberg)

Excerpt from European Biodiesel Board: The undersigned organisations welcome today's (July 8, 2026) vote by the European Parliament adopting the Motion for a Resolution objecting to Commission Delegated Regulation (EU) 2026/2680, which would have classified soybean oil as a high indirect land-use change (ILUC) risk feedstock under the Renewable Energy Directive.

This vote sends a strong signal in favour of evidence-based policymaking and greater coherence between the EU's renewable energy, agriculture and food security objectives. It safeguards the competitiveness of the European soy value chain, protects farmers and processors, and supports the EU's ambition to strengthen domestic protein production and strategic autonomy.

We thank Members of the European Parliament for recognising the strategic importance of soybeans for Europe's food and feed supply and for rejecting a methodology that would have undermined investment, innovation and the resilience of the EU protein sector. We now call on the European Commission to develop a transparent, scientifically robust and coherent framework that supports both climate and energy objectives and sustainable European protein production.

The signatories

COCERAL – The European Association of Trade in Cereals, Oilseeds, Rice, Pulses, Olive Oil, Oils and Fats, Animal Feed and Agrosupply

COPA-COGECA - European Farmers and European Agri-Cooperatives

Donau Soja - The European, multi-stakeholder, not-for profit membership organisation supporting the European Protein Transition

EBB - The European Biodiesel Board

Euroseeds - The association representing the European seed sector

FEDIOL - The Vegetable oil and protein meal industry

FEFAC - The European Feed Manufacturers' Federation

GAFTA - The international Grain and Feed Trade Association, representing over 1900 members in 100 countries and promoting international trade in agricultural commodities and animal feed

READ MORE

Excerpt from U.S. Department of Agriculture: Additionally, the Delegated Regulation foresees the review of Implementing Regulation 2022/996 on rules to verify sustainability and greenhouse gas emissions saving criteria and low indirect land-use change-risk criteria. That review is expected by the end of 2026. The Commission will assess whether it is appropriate to further specify the certification framework of low indirect land-use-change biofuels as regards the coverage of agricultural practices such as sequential cropping and intercropping, while preserving environmental safeguards. The Commission may also further examine the suitability of regional approaches in the scope of this regulation. READ MORE

Excerpt from Oils & Fats International: Following the EP’s rejection of the delegated act (by adopting a motion opposing it), the delegated act as it is stood could not be adopted by member states and the EC would have to draft a new proposal, a European Parliament spokesperson told OFI.

The EP is the EU’s directly elected legislative body and the EC is the EU’s executive arm, which proposes new laws and implements EU policies. The EP and the Council of the EU – which represents governments of the EU – must both approve a law before it can be adopted. READ MORE

Excerpt from European Federation for Transport and Environment: The decision to reverse the regulation could now see the EU liable for over $5.6 billion a year in retaliation penalties from Indonesia and Malaysia for failing to meet a legal obligation to update its laws regarding deforestation-risk biofuels, according to a letter sent to MEPs from Energy Commissioner Dan Jorgensen.

The EU previously won a WTO trade dispute against Indonesia and Malaysia that allowed the EU to keep a phase out of palm oil biofuels - of which Indonesia and Malaysia are the world’s biggest producers - provided it took a scientific and consistent approach to what it considers high deforestation risk feedstocks. This condition will now not be met as a result of today’s vote, leaving the EU open to litigative action from these palm oil powerhouses.

Cian Delaney, biofuels campaigner at T&E, said: “This decision comes after relentless, targeted lobbying from the bioenergy and agriculture industries, so they can continue to use deforestation-driving soy to make biofuels. Soy is one of the world’s leading causes of deforestation and land clearance. Considering it as a sustainable alternative to fossil fuel is a gross underestimation of the impact its cultivation has on the environment, climate and food security.”

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According to T&E research, land dedicated to soy cultivation in Brazil now exceeds most European countries, which has devastating effects on the Amazon rainforest and the Cerrado savannah.

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T&E calls on national governments to prioritise science by preemptively phasing out soy from national targets, as is already the case in France, the Netherlands, Denmark, and Belgium. READ MORE