EU classifies palm oil diesel as unsustainable but fails to cut its subsidised use and associated deforestation

In a landmark decision, the European Commission last night acknowledged in a delegated act that oil palm cultivation causes significant deforestation, and thus biodiesel produced from palm oil cannot be counted towards meeting EU green fuel targets. However, under mounting pressure, including trade war threats, from the governments of Malaysia and Indonesia, the Commission has introduced several loopholes, including an exemption for additional palm oil produced in independent small plantations (less than five hectares) or produced on ‘unused’ land.

EU classifies palm oil diesel as unsustainable but fails to cut its subsidised use and associated deforestation | Transport & Environment