EU Sets Limits on Palm Oil in Biofuels as Trade War Looms
- European Commission sets criteria for sustainable biofuels
- Palm oil producers warned curbs on shipments risk retaliation
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The European Union set new criteria for the use of palm oil in biofuels in a balancing act to try to avert a trade war with producers in Asia while appeasing climate protagonists at home.
The measure approved by the European Commission on Wednesday spells out the type of biofuels from palm oil that may be counted toward the EU’s renewable-energy goals and introduces a certification system. It was required by a broader law agreed on by the 28-nation bloc last year, when the European Parliament pushed for restrictions on the use of palm oil on concerns its production caused deforestation and aggravated climate change.