Overview
- The European Commission has issued a technical draft revising ILUC criteria that, for the first time, classifies soybean as high risk; the measure remains under review and is not yet adopted.
- If approved, the change would stop EU purchases of soy-based biodiesel and soy oil for energy use, effectively excluding Argentine supply from its only major export market for the fuel.
- Industry group CIARA-CEC estimates annual losses of roughly $350–$400 million and warns of potential plant closures and job cuts across the biodiesel chain.
- Argentine producers plan to file technical evidence disputing the ILUC findings, coordinate with the foreign and economy ministries, and may seek recourse at the WTO.
- Argentina exported about 280,000 tonnes of biodiesel to the EU in 2025 worth around $350 million, holds a 1.2 million-tonne quota, and the draft would also affect Brazil and the United States.