Phasing out palm and soy oil biodiesel in the EU: What is the benefit?

Abstract The Renewable Energy Directive (RED II) by the European Union (EU) provides an updated framework for the use of renewable energy in the EU transport sector until 2030, and bans the use of biofuels with a high risk of causing indirect land‐use change in high carbon stock areas (high ILUC‐ris...

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Main Authors: Tobias Heimann, Robin Argueyrolles, Manuel Reinhardt, Franziska Schuenemann, Mareike Söder, Ruth Delzeit
Format: Article
Language:English
Published: Wiley 2024-01-01
Series:GCB Bioenergy
Subjects:
Online Access:https://doi.org/10.1111/gcbb.13115
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author Tobias Heimann
Robin Argueyrolles
Manuel Reinhardt
Franziska Schuenemann
Mareike Söder
Ruth Delzeit
author_facet Tobias Heimann
Robin Argueyrolles
Manuel Reinhardt
Franziska Schuenemann
Mareike Söder
Ruth Delzeit
author_sort Tobias Heimann
collection DOAJ
description Abstract The Renewable Energy Directive (RED II) by the European Union (EU) provides an updated framework for the use of renewable energy in the EU transport sector until 2030, and bans the use of biofuels with a high risk of causing indirect land‐use change in high carbon stock areas (high ILUC‐risk criteria). The only biofuel feedstock affected by this criterion is palm oil. We employ the computable general equilibrium (CGE) model DART‐BIO for a scenario‐based policy analysis and evaluate a phase‐out of palm oil‐based biodiesel, and an additional phase‐out of soy oil‐based biodiesel in the EU. Our results show that the palm phase‐out has only a relatively small impact on global palm fruit production and total crop land use in tropical and subtropical regions, while the soy phase‐out leads to a comparable stronger decrease in global soy production, and a reduction in total cropland use in soy‐producing regions. Both policies lead to increased oilseed production in the EU. Therefore, farmer in Malaysia and Indonesia face a significantly reduced income. While European farmers profit the most, EU firms and households are confronted with higher expenditures. Finally, this study indicates that unilateral demand‐side regulations for a single good in a single sector is not sufficient for effective environmental protection. Enhanced binding sustainability criteria and certification schemes for the use of all vegetable oils in every sector and industry as well as improved protection schemes for sensible forest areas are necessary.
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spelling doaj.art-168696d0ce4d4449bc61630b169157792023-12-28T11:13:42ZengWileyGCB Bioenergy1757-16931757-17072024-01-01161n/an/a10.1111/gcbb.13115Phasing out palm and soy oil biodiesel in the EU: What is the benefit?Tobias Heimann0Robin Argueyrolles1Manuel Reinhardt2Franziska Schuenemann3Mareike Söder4Ruth Delzeit5Kiel Institute for the World Economy Kiel GermanyDepartment of Environmental Science University of Basel Basel SwitzerlandDepartment of Environmental Science University of Basel Basel SwitzerlandDepartment of Bioeconomy University of Hohenheim Hohenheim GermanyThünen Institute Braunschweig GermanyDepartment of Environmental Science University of Basel Basel SwitzerlandAbstract The Renewable Energy Directive (RED II) by the European Union (EU) provides an updated framework for the use of renewable energy in the EU transport sector until 2030, and bans the use of biofuels with a high risk of causing indirect land‐use change in high carbon stock areas (high ILUC‐risk criteria). The only biofuel feedstock affected by this criterion is palm oil. We employ the computable general equilibrium (CGE) model DART‐BIO for a scenario‐based policy analysis and evaluate a phase‐out of palm oil‐based biodiesel, and an additional phase‐out of soy oil‐based biodiesel in the EU. Our results show that the palm phase‐out has only a relatively small impact on global palm fruit production and total crop land use in tropical and subtropical regions, while the soy phase‐out leads to a comparable stronger decrease in global soy production, and a reduction in total cropland use in soy‐producing regions. Both policies lead to increased oilseed production in the EU. Therefore, farmer in Malaysia and Indonesia face a significantly reduced income. While European farmers profit the most, EU firms and households are confronted with higher expenditures. Finally, this study indicates that unilateral demand‐side regulations for a single good in a single sector is not sufficient for effective environmental protection. Enhanced binding sustainability criteria and certification schemes for the use of all vegetable oils in every sector and industry as well as improved protection schemes for sensible forest areas are necessary.https://doi.org/10.1111/gcbb.13115biofuelscomputable general equilibrium (CGE)land usepalm oilrenewable energy directive (RED II)soy oil
spellingShingle Tobias Heimann
Robin Argueyrolles
Manuel Reinhardt
Franziska Schuenemann
Mareike Söder
Ruth Delzeit
Phasing out palm and soy oil biodiesel in the EU: What is the benefit?
GCB Bioenergy
biofuels
computable general equilibrium (CGE)
land use
palm oil
renewable energy directive (RED II)
soy oil
title Phasing out palm and soy oil biodiesel in the EU: What is the benefit?
title_full Phasing out palm and soy oil biodiesel in the EU: What is the benefit?
title_fullStr Phasing out palm and soy oil biodiesel in the EU: What is the benefit?
title_full_unstemmed Phasing out palm and soy oil biodiesel in the EU: What is the benefit?
title_short Phasing out palm and soy oil biodiesel in the EU: What is the benefit?
title_sort phasing out palm and soy oil biodiesel in the eu what is the benefit
topic biofuels
computable general equilibrium (CGE)
land use
palm oil
renewable energy directive (RED II)
soy oil
url https://doi.org/10.1111/gcbb.13115
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