EU biofuel restrictions could benefit canola

Published 2021년 4월 16일

Tridge summary

The European Union (EU) and its member states, including Belgium, France, Lithuania, and others, are intending to ban biofuel made from palm oil and soybean oil effective from 2022, in anticipation of an EU-wide ban by 2030. This move is expected to shift the demand for biodiesel feedstocks towards other crops, offering a significant opportunity for canola growers, especially in Canada due to its high oil content and popularity in the EU biofuel industry. However, the proposed ban has sparked concerns, with Indonesia challenging the EU's proposed palm oil ban at the World Trade Organization. The outcome of these challenges could potentially lead to trade measures against the EU by Indonesia and Malaysia.

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Original content

Canola could be the big beneficiary of a growing movement in the European Union to ban other types of biodiesel feedstocks, says an industry executive. On March 22, 2021, Belgium notified the European Commission of its intention to ban biofuel made from palm oil and soybean oil effective Jan. 1, 2022. France was the first country to ban palm oil biodiesel on Jan. 1, 2020. Lithuania has also taken that step. There are reports that Germany, Italy and Denmark could soon follow suit. Member states are getting out in front of an EU-wide ban set to be phased in by 2030. Brian Innes, vice-president of public affairs with the Canola Council of Canada, said that technically what is being proposed by the EU and its member states is not a ban. Palm oil biodiesel could still be manufactured and sold, but it would be ineligible for biofuel programs and subsidies, which in essence means it will be pushed out of the various markets. That represents a golden opportunity for Canada’s canola ...

Source: The Western Producer