MPOC Calls for Uniform, Science-based Treatment of All Biofuel Feedstocks After European Parliament Rejects Soybean Oil iLUC Classification
KUALA LUMPUR, 15 July 2026 — The Malaysian Palm Oil Council (MPOC) has called on the European
Union (EU) to apply a uniform, science-based standard to all biofuel feedstocks, following the
European Parliament’s decision to reject a European Commission proposal that would have classified
soybean oil as a high indirect land-use change (iLUC) risk feedstock under the Renewable Energy
Directive (RED).
On 8 July 2026, the European Parliament objected to Commission Delegated Regulation (EU)
2026/2680 by 388 votes to 248, preventing it from entering into force. The measure would have placed
soybean oil in the high iLUC risk category alongside palm oil, with its contribution to EU renewable
energy targets progressively reduced to zero by 2030. With this objection, soybean oil retains its
current status and remains eligible to count towards the EU’s renewable energy targets. Palm oil is
now the only feedstock classified as high iLUC risk, with its contribution restricted and scheduled to
decline to zero by 2030.
The outcome is a clear inconsistency. The European Commission assessed both commodities against
the same criteria and proposed the same classification for each. Two feedstocks measured by the same
rules are now treated differently, and the methodology that produced those assessments has been
called into question by the EU’s own legislature.
Ms Belvinder Sron, Chief Executive Officer of MPOC, said: “This is about consistency, not competition
between crops. When two commodities are measured against the same rules, they must be judged by
the same evidence. The European Parliament has now questioned the credibility of the iLUC
methodology as applied to soybean oil. The same scrutiny must be applied to the classification of palm
oil.”
Malaysia’s long-standing position is that the EU’s iLUC methodology is discriminatory and inadequately
supported by current data, a position reflected in the findings of the World Trade Organization panel
in Malaysia’s dispute with the EU over these measures. The soybean oil decision does not change palm
oil’s existing obligations, but it sharpens the case for the Commission to revisit an approach that now
applies unevenly across comparable feedstocks.
Malaysia’s record supports that case. From 2014 to 2023, Malaysia reduced primary forest loss by 65%,
with a further 13% reduction between 2023 and 2024, marking the first time the country has fallen
out of the global top 10 for tropical primary forest loss. These gains are enforced through the
mandatory Malaysian Sustainable Palm Oil (MSPO) certification scheme, which prohibits the
conversion of natural forests, protected areas and High Conservation Value areas after 31 December
2019, and are corroborated by independent data from Global Forest Watch and Satelligence.
Ms Sron added: “Malaysia’s progress in reducing deforestation is measurable, independently verified
and supported by internationally recognised data. Consistency in the application of objective criteria
is essential to the credibility of EU policymaking, and that progress should be properly reflected in
regulatory decisions.”
For all media enquiries, please contact:
Kartigha Ayamanny, Assistant Manager, Sustainability, Promotions and Communication
Email: [email protected]
Union (EU) to apply a uniform, science-based standard to all biofuel feedstocks, following the
European Parliament’s decision to reject a European Commission proposal that would have classified
soybean oil as a high indirect land-use change (iLUC) risk feedstock under the Renewable Energy
Directive (RED).
On 8 July 2026, the European Parliament objected to Commission Delegated Regulation (EU)
2026/2680 by 388 votes to 248, preventing it from entering into force. The measure would have placed
soybean oil in the high iLUC risk category alongside palm oil, with its contribution to EU renewable
energy targets progressively reduced to zero by 2030. With this objection, soybean oil retains its
current status and remains eligible to count towards the EU’s renewable energy targets. Palm oil is
now the only feedstock classified as high iLUC risk, with its contribution restricted and scheduled to
decline to zero by 2030.
The outcome is a clear inconsistency. The European Commission assessed both commodities against
the same criteria and proposed the same classification for each. Two feedstocks measured by the same
rules are now treated differently, and the methodology that produced those assessments has been
called into question by the EU’s own legislature.
Ms Belvinder Sron, Chief Executive Officer of MPOC, said: “This is about consistency, not competition
between crops. When two commodities are measured against the same rules, they must be judged by
the same evidence. The European Parliament has now questioned the credibility of the iLUC
methodology as applied to soybean oil. The same scrutiny must be applied to the classification of palm
oil.”
Malaysia’s long-standing position is that the EU’s iLUC methodology is discriminatory and inadequately
supported by current data, a position reflected in the findings of the World Trade Organization panel
in Malaysia’s dispute with the EU over these measures. The soybean oil decision does not change palm
oil’s existing obligations, but it sharpens the case for the Commission to revisit an approach that now
applies unevenly across comparable feedstocks.
Malaysia’s record supports that case. From 2014 to 2023, Malaysia reduced primary forest loss by 65%,
with a further 13% reduction between 2023 and 2024, marking the first time the country has fallen
out of the global top 10 for tropical primary forest loss. These gains are enforced through the
mandatory Malaysian Sustainable Palm Oil (MSPO) certification scheme, which prohibits the
conversion of natural forests, protected areas and High Conservation Value areas after 31 December
2019, and are corroborated by independent data from Global Forest Watch and Satelligence.
Ms Sron added: “Malaysia’s progress in reducing deforestation is measurable, independently verified
and supported by internationally recognised data. Consistency in the application of objective criteria
is essential to the credibility of EU policymaking, and that progress should be properly reflected in
regulatory decisions.”
For all media enquiries, please contact:
Kartigha Ayamanny, Assistant Manager, Sustainability, Promotions and Communication
Email: [email protected]