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Members of the European Parliament have voted to reject a proposed EU regulation that aimed to exclude soy biofuels from qualifying as renewable fuel by 2030. This reversal comes despite soy cultivation being identified by Transport & Environment (T&E) as one of the primary global drivers of deforestation and land clearance.
According to a letter sent to MEPs by Energy Commissioner Dan Jorgensen, this decision could expose the European Union to retaliatory penalties exceeding $5.6 billion annually from Indonesia and Malaysia. The potential sanctions stem from the EU's failure to meet a legal obligation to update its laws concerning deforestation-risk biofuels.
Previously, the EU had secured a victory in a WTO trade dispute against Indonesia and Malaysia, allowing it to maintain a phase-out of palm oil biofuels – of which Indonesia and Malaysia are the world's largest producers. This allowance was conditional on the EU adopting a scientific and consistent approach to identifying high deforestation-risk feedstocks. T&E asserts that this crucial condition will now not be met as a direct consequence of the recent vote, leaving the EU vulnerable to legal action from these dominant palm oil-producing nations.
Cian Delaney, a biofuels campaigner at T&E, stated: 'This decision comes after relentless, targeted lobbying from the bioenergy and agriculture industries, so they can continue to use deforestation-driving soy to make biofuels. Soy is one of the world's leading causes of deforestation and land clearance. Considering it as a sustainable alternative to fossil fuel is a gross underestimation of the impact its cultivation has on the environment, climate and food security.'
T&E research highlights that land dedicated to soy cultivation in Brazil now surpasses the area of most European countries, leading to devastating impacts on critical ecosystems like the Amazon rainforest and the Cerrado savannah. In response, T&E urges national governments to prioritize scientific evidence by preemptively phasing out soy from their national targets, mirroring actions already taken by France, the Netherlands, Denmark, and Belgium.
Source: Transport & Environment