In the light of the EU Parliament proposal (COM(2016)0767 – C8-0500/2016 – 2016/0382(COD)) to exclude biofuels produced using palm oil from the Renewable Energy Directive, Copenhagen Economics has been asked to analyse the impacts on EU palm oil imports from Indonesia, Malaysia and Thailand.
We find that Indonesia, Malaysia and Thailand are major sources of EU palm oil imports. In 2017, close to three quarters of EU imports of palm oil came from these three Asian countries. In addition, 46% EU palm oil imports are used for biodiesel amounting to EUR 2 billion per year based on 2017 data. The European Parliament’s proposal to exclude biofuels produced from palm oil from counting towards the EU Renewable Energy Targets may thus reduce EU imports of palm oil by up to EUR 2 billion from Indonesia, Malaysia and Thailand.
The study is commissioned by Malaysian Palm Oil Council.
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