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EU Draft Labels Soy High ILUC Risk, Putting Argentine Biodiesel at Risk

Argentine exporters plan multiple responses as the draft enters a brief consultation.

Overview

  • The European Commission released a draft revising ILUC criteria that for the first time places soybean in the high‑risk category, the same as palm oil.
  • Industry groups say the move would effectively bar soybean biodiesel and soybean oil for biodiesel from counting in the EU, leaving rapeseed oil as the permitted feedstock.
  • CIARA‑CEC estimates Argentina could lose about US$350 million in annual sales if the draft is adopted, given the EU is its only significant export market for soy biodiesel.
  • Exporters are preparing technical submissions contesting the ILUC findings and coordinating a defense with the Foreign Affairs and Economy ministries, including a possible WTO case.
  • The proposed change does not cover soybean meal, which industry sources say would remain unaffected under the current draft.