EU Palm Oil Use to Decline Significantly by 2032

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.

Tags: palm oil, imports, output, food, renewable energy, European Union, biodiesel