EU to phase out soy biofuels linked to deforestation
Commission research finds soy cultivation drives high ILUC emissions and biodiversity loss.
The European Union will remove soy‑based biofuels from its renewable energy targets after new European Commission research confirmed they pose a high risk of deforestation and indirect land‑use change (ILUC). The recently published findings show that soy expansion contributes significantly to CO₂ emissions and biodiversity loss, reinforcing long‑standing concerns about crop‑based fuels.
The decision mirrors the EU’s earlier move to phase out palm oil biofuels by 2030 under the ILUC Delegated Act. Soy will now follow the same pathway, with regulators concluding that its production frequently expands into carbon‑rich land, undermining the climate benefits of substituting fossil fuels.
Environmental groups welcomed the findings. Cian Delaney, biofuels campaigner at Transport & Environment (T&E), said: “Soy biofuels are twice as bad for the planet as fossil diesel. Phasing them out is the right way to go and ensures that American, Argentinian and Brazilian soy does not end up in European tanks, especially now that the EU has signed the Mercosur trade deal.” He also warned that other feedstocks, including sugarcane, remain just below the EU’s high‑ILUC threshold and can still count toward renewable energy targets.
MobilityPlaza's Take
The phase‑out of soy removes one of the EU’s most damaging biofuel feedstocks, but demand for renewable transport energy continues to rise. Biofuels have long been central to EU transport policy, and under RED III, Member States must reach 29% renewables in transport by 2030, or alternatively achieve a 14.5% reduction in the GHG intensity of transport fuels.
Although the EU–Mercosur trade agreement advanced in January 2026, it still awaits scrutiny by the European Parliament and a review by the EU Court of Justice, leaving final ratification pending. This means any changes to Europe’s agri‑fuel supply chains will unfold against a still‑evolving trade framework. Meanwhile, Brazil and Argentina, two Mercosur members, remain among the world’s top three soybean producers, making EU rules on soy biofuels especially consequential for South American supply flows.
At the same time, pressure on other feedstocks is expected to increase. More than 100 million tonnes of sugarcane are currently used in global biofuel production, and this figure is projected to rise by 50% by 2030, driving new agricultural expansion. Reports already point to forest‑clearing projects in regions like Papua, Indonesia, where land conversion for sugarcane plantations is underway, underscoring ongoing ILUC concerns even as soy is phased out.
