Bloomberg Law
Jan. 23, 2019, 8:01 AM UTCUpdated: Jan. 23, 2019, 1:54 PM UTC

Palm Oil’s Loss May Be U.S. Soybean Gain in EU Biofuel Rule (1)

U.S. soybean companies could be the big winners if an upcoming European Union rule on sustainable biofuels goes through.

The rule, which the European Commission—the EU’s executive arm—is required to propose by Feb. 1, would define which feedstocks used in biofuel production are sustainable in terms of forest clearance and other land-use changes.

Feedstocks identified as causing high levels of indirect land-use change (ILUC) will be capped and wouldn’t count toward EU biofuels targets after 2030.

The main feedstock in the line of fire is palm oil from Indonesia or Malaysia, where it is linked to widespread clearance of tropical ...

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