The EU will gradually phase out soybean biofuels

A recent study by the European Commission confirms that soy-based biofuels are a major driver of deforestation and should therefore no longer count toward the EU’s renewable energy targets. The report concludes that soy is strongly associated with indirect land-use change (ILUC), a key source of additional CO₂ emissions and biodiversity loss.

As global biofuel consumption continues to rise, the findings highlight the environmental risks of promoting food and feed crops as transport fuels. According to environmental group Transport & Environment (T&E), expanding crop-based biofuels increases pressure on forests, particularly in major soy-producing countries such as the United States, Argentina, and Brazil.

T&E policy analyst Cian Delaney stated that soy biodiesel causes up to twice the climate damage of fossil diesel, arguing that phasing it out is essential to prevent deforestation-linked fuels from entering Europe’s energy system—especially in the context of the EU–Mercosur trade agreement. However, the report notes that other high-risk feedstocks, such as sugarcane, currently remain just below the EU’s ILUC risk threshold and can still qualify under renewable energy targets. Critics warn this leaves significant loopholes in EU biofuel policy.