New Euro Commission Norms Will Impact Europes Palm Oil Imports

The European Commission will meet on controversial rules this week to limit the use of biofuel crops linked to deforestation – amid backlash from the worlds two largest palm producers.

The new rules will define which fuels can be counted toward EU renewable energy targets. Biofuels that indirectly lead to changes in land use and higher greenhouse gas emissions will be excluded by 2023.

EU commissioners will discuss the legally-binding act in a meeting on Wednesday, commission spokeswoman Anna-Kaisa Itkonen said. It comes a few days after the 1 February due date. If it is adopted, the European Parliament and member countries will have two months to give any objections before its finalised.

If the commission chooses tough criteria could significantly limit one of Indonesias and Malaysias biggest exports – palm oil.