# EU to phase out palm oil from transport fuel by 2030 | Reuters

> EU negotiators agreed to phase out palm oil use in transport fuels from 2030. The decision sets up a clash with producers Malaysia and Indonesia.

- Date: 2018-06-14 · published 2018-06-14T12:00:00.000Z
- Category: policy · region EU · magnitude medium
- Page: https://feedsoft.ai/events/64538-eu-to-phase-out-palm-oil-from-transport-fuel-by-2030-reuters
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Removing palm-based biofuel demand in the EU reduces vegetable oil demand over time and is bearish for palm oil, with some spillover to soyoil through substitution.

## Read by commodity

- SBO: bearish ▼
- PALMOIL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| SBO | 2018-06-14 | 1 | -2.1% | -3.1 | The EU agreement on 2018-06-14 to phase out palm oil in transport fuel by 2030 is a same-day policy shock to vegetable oil demand and sentiment, though its direct effect on soybean oil is ambiguous. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2019-03-13 | [EU singles out palm oil for removal from transport fuel \| Reuters](https://feedsoft.ai/events/60105-eu-singles-out-palm-oil-for-removal-from-transport-fuel-reuters.md) | -0.0% | +3.3% |
| PALMOIL | 2018-01-10 | [EU heading for ‘zero palm oil’ in transport by 2021](https://feedsoft.ai/events/67017-eu-heading-for-zero-palm-oil-in-transport-by-2021.md) | -1.6% | -1.8% |
| PALMOIL | 2019-02-12 | [EU targets palm oil for road fuel phase-out, but with exemptions](https://feedsoft.ai/events/60625-eu-targets-palm-oil-for-road-fuel-phase-out-but-with-exemptions.md) | -0.4% | -6.7% |
| PALMOIL | 2019-10-15 | [‘Bring it on,’ EU MP says of trade fight over palm biofuel phase-out](https://feedsoft.ai/events/56448-bring-it-on-eu-mp-says-of-trade-fight-over-palm-biofuel-phase-out.md) | +2.8% | +21.4% |
| PALMOIL | 2022-05-19 | [Indonesia president declares end of palm oil export ban from Monday \| Reuters](https://feedsoft.ai/events/41501-indonesia-president-declares-end-of-palm-oil-export-ban-from-monday-reuters.md) | +1.4% | -7.4% |
| SBO | 2019-02-12 | [EU targets palm oil for road fuel phase-out, but with exemptions](https://feedsoft.ai/events/60625-eu-targets-palm-oil-for-road-fuel-phase-out-but-with-exemptions.md) | -1.7% | -1.5% |
| SBO | 2022-05-19 | [Indonesia president declares end of palm oil export ban from Monday \| Reuters](https://feedsoft.ai/events/41501-indonesia-president-declares-end-of-palm-oil-export-ban-from-monday-reuters.md) | -1.7% | -7.4% |
| SBO | 2022-06-07 | [Indonesia to cut maximum palm oil export tax and levy to a combined $488/T -trade minister \| Reuters](https://feedsoft.ai/events/15811-indonesia-to-cut-maximum-palm-oil-export-tax-and-levy-to-a-combined-488-t-trade.md) | -4.9% | -21.1% |

## Sources

- reuters.com: https://www.reuters.com/article/business/environment/eu-to-phase-out-palm-oil-from-transport-fuel-by-2030-idUSKBN1JA21E/

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