Biodiesel & Blend Mandates
Biodiesel policy is the single biggest swing in palm oil demand. Indonesia's blend mandate alone absorbs millions of tonnes; Europe is pulling the other way. Here's the state of play across the major programs.
Biodiesel (B-series)
B40 mandatory since Jan 2025; B50 targeted through 2026 — the largest single source of new palm demand. Phased rollout.
Biodiesel (transport)
B20 for transport is being rolled out region by region; industrial sector around B7–B10. B30 sits under the National Biofuel Policy roadmap.
RED III (palm phase-out)
Palm-based biofuels are classified high ILUC-risk and are being phased out of EU renewable-energy targets to zero by 2030 — a structural demand headwind in Europe.
Renewable diesel & SAF
HVO/renewable diesel and sustainable aviation fuel are a growing demand pool for vegetable oils, though palm is often restricted on sustainability grounds; watch feedstock substitution.
Latest policy headlines
Headlines from our market news scan — external sources, opens in a new tab.
Admin-maintained policy tracker — last reviewed Jul 16, 2026. Blend levels and dates change with government policy and are phased by region; always verify against official sources before acting. For information only, not trading advice.
Positioning ahead of a mandate change? Our desk locks in physical palm oil for it.
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