IfW in the News

Palm Oil’s Loss May Mean U.S. Soybean Gain Via EU Biofuels Rule


Gernot Klepper is sceptic on the EU’s ban of palm oil.

Excerpt from the Article

(...) When the commission proposes its rule, it could specify certain crops—such as palm oil—but allow exemptions where appropriate, or it could “focus on the areas that have a high risk of land-use change,” Klepper said.

For example, the commission could designate Indonesia and Malaysia as high-risk indirect land-use change countries, whereas Colombia, which also exports palm oil to the EU and where palm oil cultivation doesn’t cause major forest clearance, could be designated low risk, he said.

Under such an approach, soybean producers in Argentina and Brazil also could lose out because of forest clearance concerns, though Brazil “has its own huge market for biodiesel” and would be less affected, Klepper said.

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