# Policy Brief: EU’s Renewable Energy Directive (RED) II and Implications on Palm Oil Trade - CARI ASEAN Research and Advocacy

> The EU's Renewable Energy Directive II caps the amount of high indirect land-use change risk biofuels, such as palm-based ones, that member states can count toward renewable targets. Those limits freeze at 2019 levels in 2021-2023 and then fall to zero by 2030.

- Date: 2019-11-21 · published 2019-11-21T12:00:00.000Z
- Category: policy · region EU · magnitude medium
- Page: https://feedsoft.ai/events/56084-policy-brief-eu-s-renewable-energy-directive-red-ii-and-implications-on-palm
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Phasing out palm-based biodiesel credits in the EU removes a major source of palm oil demand, which is bearish for palm oil and, by substitution, supportive for soy oil and rapeseed oil demand.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2017-11-03 | [Possible WTO action, if EU's Renewable Energy Directive exclude palm oil](https://feedsoft.ai/events/67871-possible-wto-action-if-eu-s-renewable-energy-directive-exclude-palm-oil.md) | -0.5% | -4.7% |
| PALMOIL | 2020-06-30 | [EU Acknowledges its Failed Palm Oil Policy and Indicates a Shift in Direction — CSPO](https://feedsoft.ai/events/52641-eu-acknowledges-its-failed-palm-oil-policy-and-indicates-a-shift-in-direction.md) | -0.8% | +6.7% |
| PALMOIL | 2018-04-26 | [Winners and losers from the proposed ban on palm oil - Renewable Carbon News](https://feedsoft.ai/events/65525-winners-and-losers-from-the-proposed-ban-on-palm-oil-renewable-carbon-news.md) | -3.5% | -1.7% |
| PALMOIL | 2020-03-02 | [The Palm Oil Conundrum in EU-ASEAN Relations – The Diplomat](https://feedsoft.ai/events/54014-the-palm-oil-conundrum-in-eu-asean-relations-the-diplomat.md) | -7.2% | -13.4% |
| PALMOIL | 2019-05-30 | [Call on EU to reclassify M’sian oil palm cultivation activities](https://feedsoft.ai/events/59120-call-on-eu-to-reclassify-m-sian-oil-palm-cultivation-activities.md) | +0.5% | -1.5% |
| SBO | 2023-05-12 | [Policies in Progress: Renewable fuels, WOTUS and pesticide compliance are among top ASA advocacy priorities beyond the farm bill - American Soybean Association](https://feedsoft.ai/events/15308-policies-in-progress-renewable-fuels-wotus-and-pesticide-compliance-are-among.md) | -8.7% | -2.4% |
| SBO | 2021-02-05 | [2020 Energy Prices Complicated by Ag Products, Renewable Credits and Other Relationships - OPIS, A Dow Jones Company](https://feedsoft.ai/events/48514-2020-energy-prices-complicated-by-ag-products-renewable-credits-and-other.md) | +1.4% | +10.6% |
| SBO | 2022-07-13 | [Renewable identification number prices for ethanol and biomass-based diesel remain high -
		U.S. Energy Information Administration (EIA)](https://feedsoft.ai/events/15375-renewable-identification-number-prices-for-ethanol-and-biomass-based-diesel.md) | +0.0% | +4.2% |

## Sources

- cariasean.org: https://cariasean.org/asean-2/asean-economic-progress/policy-brief-eus-red-ii-and-implications-on-palm-oil-trade/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.