Palm oil imports to the European Union continue to dwindle

In the period 1 July 2024 to 10 December 2024, the EU-27 imported just less than 1.4 million tonnes of palm oil, which represents a 16 per cent decrease on the same period in 2023. Indonesia remained the most important country of origin, exporting just under 476,000 tonnes and accounting for 35 per cent of the total, followed by Malaysia with 286,000 tonnes. In both cases, delivery volumes fell significantly short of those recorded for the period July to December 2023. Italy imported the largest volume, increasing its imports 8 per cent to 478,000 tonnes. The Netherlands, the central hub for onward export to other member states, was the second largest importer. However, it should be noted that the country is also a key location for European biofuel production. Palm oil imports to the Netherlands dropped 11 per cent compared to the previous year to 414,000 tonnes.

Spain recorded the sharpest decline, more than halving its imports to 140,000 tonnes. Sweden’s imports decreased around 39 per cent. On the other hand, several other EU member states increased their imports. According to research by Agrarmarkt Informations-Gesellschaft (mbH), these countries include Greece, France, Denmark, and Germany. Receiving 115,000 tonnes, Germany recorded a 32 per cent rise in palm oil imports compared to the same period the previous year.

The Union zur Förderung von Oel- und Proteinpflanzen e.V. (UFOP) has pointed out that growing imports of waste oils have displaced the corresponding volumes of palm oil virtually in all member states. The association has noted that the extensive imports of waste oils are also viewed critically because they could also come from palm oil. In other words, supporting the use of waste oils also leads to a pull effect for palm oil. Because of this, the RED II provides for a 1.7 per cent cap on waste oil-based biofuels (ANNEX IX, Part B of the RED II). In Germany, the limit has been set at 1.9 per cent with the approval of the EU Commission.

According to the UFOP, this cap is being circumvented by the incentive of double counting waste oils outlined in Part A of Annex IX. The ensuing incitement to committing fraud has sparked a debate on tightening certification and monitoring requirements. The UFOP has called on the new German government, which will be elected next year, to reconsider and reform this incentive to create a steering instrument that promotes domestic bio-methane production. The association argues that double counting will then benefit domestic agriculture rather than biodiesel producers in Asia.