The share of palm oil in biodiesel and in food in the European Union is expected to fall significantly within the next 10 years, leading to a sharp drop in imports, the European Commission said on Thursday. In its 2022-2032 Agricultural Outlook, the Commission projected palm oil would account for 9% of total biodiesel output by 2032, down from an average 23% between 2019 and 2021.
Under the EU’s renewable energy directive, palm oil-based fuels, accused of being linked to deforestation, are to be phased out progressively by 2030. In contrast the share of advanced biodiesels was expected to grow to 42% by 2032 from 29% in the 2019 to 2021 period. Of this biodiesel from waste oils and fats would account for 26%, up from 23%, and other advanced biodiesels for 16%, up from 6%.
In food, the use of vegetable oils was expected to rise by 2.9% compared with the 2020 to 2022 average to 10.6 MMT in 2032. Palm oil use in food would fall by 35.7% and soybean oil by 23.5% while rapeseed oil would gain 12.6% and sunflower oil would rise 27.5%, the Commission said.
