Overview
- The European Parliament voted 388 to 248 with 24 abstentions on July 8, 2026 to reject the Commission's proposed changes to Delegated Regulation 2019/807 that would have labeled soy as high ILUC.
- Because the Parliament rejected the text, the European Commission must reissue a new delegated regulation and follow the legislature's guidance while technical negotiations take place.
- Argentina's government and industry groups including CIARA hailed the result and said they will work with the Commission to secure wording that recognizes Argentina's sowing area and sustainability criteria.
- Industry groups say the decision could revive blocked contracts and allow biodiesel exports to grow from about USD 400 million in 2025 toward the annual USD 1,200 million quota, though the final outcome will depend on the rewritten rule and market conditions.
- ILUC refers to indirect land‑use change, a method the EU uses to judge whether extra demand for a biofuel crop leads to deforestation or land conversion, and a 'high ILUC' label would have removed soy biodiesel from EU renewable counting rules with major trade consequences.