Paraguay and Argentine agricultural unions question proposed European restriction on soyabeans in biofuel use

Agricultural unions in Paraguay and Argentina have raised objections to proposed restrictions placed on soyabean use in biofuels by the European Commission (EC).

In a joint statement on 20 April, Paraguay’s Union of Production Guilds (UGP) and Argentina’s Barbechando Foundation responded to the EC’s draft amendment to the ILUC Delegated Act (EU) 2019/807, which implements the Renewable Energy Directive (EU) 2018/2001 rules on indirect land use change (ILUC).

The amendment maintained the classification of soyabeans as “high risk” in terms of ILUC and established a progressive reduction of biofuels derived from the crop until 2030, the unions said.

This would have an immediate impact on the competitiveness, production and export of soyabeans and biodiesel to Europe.

“[It] is based on a methodology that does not adequately reflect national productive realities,” the UGP added.

The unions also questioned the methodology used by the EU to determine ILUC risk.

“The risk indicator is constructed from the gross expansion of the crop in certain regions, without distinguishing between countries with growth, stability or even a reduction in planted area,” the statement said.

“In the case of Argentina and Paraguay, production systems evolved towards greater efficiency, with sustained increases in productivity without the need to significantly expand the agricultural frontier.”

The unions called for bi-regional technical dialogue around the construction of international rules for agro-industrial trade and, in particular, biofuels based on scientific evidence, recognition of national efforts and a non-discriminatory approach.

“The European Union has historically been a relevant market for biodiesel produced in Argentina and Paraguay. The impossibility of computing these biofuels within the European renewable objectives generates a structural impact on the regional soyabean complex, alters consolidated trade flows and affects the predictability necessary for productive and industrial planning,” the statement said.

This article has been republished from The Oils & Fats International.