The European Commission’s April 2026 revision of Delegated Regulation (EU) 2019/807 officially classifies soybean oil as a high indirect land use change (ILUC)-risk biofuel, according to a position paper from Transport & Environment (T&E). The regulation, which entered into force in June 2026, survived its scrutiny period as environmental groups pushed for stricter deforestation safeguards.
Under the revised rules, soybean-based biofuels face heightened scrutiny because their production can drive land clearing, displacing food crops and forests. T&E argues that the designation reflects the crop’s significant deforestation footprint, particularly in South America where soy expansion is a leading driver of habitat loss.
The revision could reshape biofuel supply chains across the European Union. Soybean oil has been a common feedstock for biodiesel, but the new risk classification may limit its use in meeting renewable energy targets, potentially shifting demand toward waste-based or advanced biofuels.
Geopolitically, the move risks straining trade relations with major soy exporters like Brazil and Argentina, which have pushed back against EU environmental regulations. Brussels defends the policy as necessary to align biofuel incentives with climate goals and halt indirect deforestation.
Transition context remains fraught: the EU’s push for cleaner transport fuels coexists with pressure to secure affordable energy. T&E warns that without robust enforcement, low-ILUC certification loopholes could undermine the regulation’s intent, allowing some soy-derived volumes to slip through.