Indonesia has stepped up pressure on the European Union to immediately remove countervailing duties on biodiesel imports, following a World Trade Organization (WTO) ruling that sided with Jakarta on several key claims. The world’s largest palm oil exporter argued in its 2023 complaint that the EU’s tariffs, in place since 2019 at rates of 8% to 18%, violated global trade rules.

Last week, a WTO panel concluded that Indonesia’s export levies on palm oil could not be classified as subsidies and that the EU had failed to prove Indonesian biodiesel imports caused material harm to European producers. In response, Trade Minister Budi Santoso urged Brussels to withdraw the “non-compliant” measures without delay.

The dispute highlights years of tension between the two sides, ranging from duties on biodiesel to EU concerns about palm oil’s link to deforestation. Indonesia’s biodiesel exports to Europe have plummeted from 1.32 million kiloliters in 2019 to an expected 270,000 kiloliters in 2024. While Jakarta views the WTO decision as a victory, industry representatives remain cautious. Catra de Thouars of the Indonesian Biofuel Producers Association warned that the EU may resist full compliance, noting ongoing disputes over anti-deforestation rules.

The case comes as the EU and Indonesia move closer to finalizing a free trade agreement, which Jakarta hopes will secure wider market access for palm-based products. Although the WTO ruling can technically be appealed, the organization’s top appeals body has been paralyzed since 2019, making enforcement uncertain. For now, the spotlight is on whether Brussels will act—or prolong one of the most contentious trade battles in the biofuels sector.

The World Trade Organization (WTO) has issued a ruling that supports Indonesia in its dispute with the European Union (EU) over countervailing duties on biodiesel imports. The case, initiated by Indonesia in 2023, challenged the EU’s decision to impose tariffs on biodiesel made from Indonesian palm oil, arguing that such measures violated WTO rules under the Agreement on Subsidies and Countervailing Measures.

In its findings, the WTO panel concluded that several of Indonesia’s claims were valid and recommended that the EU bring its measures into compliance with international trade obligations. The ruling carries significant weight, as the EU is the third-largest export destination for Indonesian palm oil products and a key market for its palm oil–based biodiesel. For Indonesia, the world’s top palm oil producer, the decision represents a potential boost to its biodiesel exports and a step toward reducing trade barriers.

Indonesia’s Chief Economic Minister Airlangga Hartarto welcomed the ruling, noting that preparations are underway for its implementation, though he declined to provide further details. While the EU technically has the option to appeal, the WTO’s appellate body is currently non-functional, making a final resolution unlikely. This case not only highlights ongoing trade tensions between the EU and Indonesia but also underscores the challenges facing the multilateral trading system in resolving disputes amid institutional deadlock.

Lloyd’s Register’s latest FOBAS Fuel Insights report finds that despite growing fuel diversity and tighter environmental regulations, global marine fuel quality remained resilient in the first half of 2025. Improved testing, data sharing, and operational practices are helping shipowners adapt to cleaner blends and stricter sulfur limits.

FOBAS testing shows the vast majority of fuels meet specifications, with only 3.5% of very low sulfur fuel oil (VLSFO) samples deemed off-spec, and just 0.6% exceeding MARPOL Annex VI’s 0.50% sulfur limit. Stability results varied by port, while distillates continued to deliver predictable performance, making them the preferred choice for operations requiring higher quality assurance.

Sustainability and fuel diversity emerged as key trends. Ports such as Singapore, Algeciras, and Antwerp are seeing greater uptake of FAME-based biofuel blends, particularly B30 RF, supported by clearer guidance from MEPC 83 and ISO 8217:2024. No systemic operational issues have been reported.

The report also highlights the growing adoption of ASTM D240 bomb calorimetry for more accurate heat value measurement, enabling better fuel consumption forecasts, voyage planning, and cost control.

Indonesia will proceed with its plan to raise the palm oil content in biodiesel to 50% (B50), but the rollout is unlikely to begin in January 2026, according to senior energy ministry official Eniya Listiani Dewi. The new blend requires multiple tests, which could take up to eight months to complete. This year, Indonesia allocated 15.6 million kiloliters of palm oil for its B40 program, up from 13.2 million kiloliters in 2024. The Indonesian Biofuel Producers Association (APROBI) estimates that the B50 mandate could require up to 19 million kiloliters of palm oil annually. The move aims to boost domestic palm oil consumption, reduce reliance on fossil fuels, and support prices, though it may affect export supply dynamics.

As the European Union accelerates its renewable energy transition, EcoCeres has released a position paper calling for a robust, transparent, and fraud-resistant verification system to uphold the integrity of sustainability claims in the biofuels sector.

EcoCeres emphasizes that all biofuel producers must adhere to unified standards and maintain transparent data to ensure that sustainability claims are credible and verifiable. “A harmonized approach is essential not only to protect environmental integrity but also to build public trust and advance the circular economy,” the company stated.

The company also pledged to work closely with policymakers and industry stakeholders to develop practical and effective frameworks that strengthen environmental and social standards across the sector. By advocating for transparency and accountability, EcoCeres aims to help create a more resilient and trustworthy biofuel ecosystem that benefits producers, consumers, and the planet alike.

On July 18, the European Commission announced the conclusion of its investigation into Chinese biodiesel imports, stating that no fraudulent behavior was identified. However, the investigation did uncover systemic weaknesses in the certification process, prompting the EU to strengthen its regulatory framework.

The investigation stemmed from concerns raised by German authorities in 2023, who suspected potential fraud in biodiesel imports from China. In response, the European Commission conducted a thorough evaluation in close coordination with Germany. While no direct evidence of fraud was found, the Commission noted that further checks could still be carried out if Germany deems it necessary.

Although fraud was not confirmed, the investigation revealed flaws in the way sustainability certifications were audited and verified. To address these issues, the Commission will implement several key measures:

• A dedicated working group has been formed to consider revisions to relevant regulations aimed at preventing fraud. These updates are expected to be completed by 2026 at the earliest.

• The EU will push for the mandatory use of its biofuel traceability database, which is already operational but not yet universally adopted. The Commission emphasized that broad, mandatory participation is essential for full transparency.

• Technical support will be increased to help voluntary certification schemes better implement existing rules and improve credibility.

While the EU currently does not plan punitive actions against Chinese biodiesel exports, this move signals a tightening of oversight systems. It also lays the groundwork for more robust and transparent trade practices in the renewable fuel sector moving forward.

SD Guthrie has launched a B30 biodiesel pilot project in collaboration with Malaysia’s Ministry of Plantation and Commodities (KPK), Petronas Dagangan Berhad (PETDAG), and the Malaysian Palm Oil Board (MPOB). The initiative aims to assess the reliability and scalability of high palm oil content biodiesel in real-world applications.

As part of the project, SD Guthrie will convert all plantation machinery and vehicle fleets on Carey Island, Selangor, to run on B30 fuel—a blend of 30% palm-based biodiesel and 70% petroleum diesel—supplied by PETDAG from its Melaka terminal.

The company expects the switch to reduce greenhouse gas (GHG) emissions by up to 23% in its daily operations. Managing Director Dato’ Mohamad Helmy emphasized that the move underscores SD Guthrie’s leadership in decarbonizing the plantation sector and aligns with Malaysia’s broader goal of reducing reliance on fossil fuels by promoting palm-based alternatives. “B30 biodiesel marks a critical milestone in our journey toward net-zero emissions. It not only helps us cut GHG emissions but also sets a new benchmark for sustainable practices in the plantation industry,” he said.

While B30 biodiesel currently comes with higher production costs, Helmy expressed hope that the project will pave the way for nationwide adoption, ultimately boosting domestic palm oil consumption and enhancing energy security.

On July 10, Greenergy, a UK fuel company owned by global commodities trader Trafigura, announced plans to close its biodiesel plant in Immingham, northeast England, and initiate consultation procedures for approximately 60 employees. This decision comes as another blow to the UK fuel industry following the bankruptcy announcement by Prax, the operator of the nearby Lindsey refinery. Greenergy stated that since halting production in late May and conducting a strategic review, despite implementing significant cost-cutting measures, the market environment remains unfavorable.

The plant supplies approximately one-quarter of the UK’s annual biodiesel production, producing biodiesel from waste oils and blending it into conventional diesel to reduce carbon emissions. Greenergy was acquired by the Trafigura Group last year. CEO Adam Treggor acknowledged that under the slow growth of UK biofuel policies and pressure from low-cost exports from the US, the company has struggled to make necessary investments in the Immingham plant to maintain operational competitiveness. This also highlights the UK’s lag in advancing renewable fuel policies.