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Biodiesel & mandates

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.

Indonesia

Biodiesel (B-series)

Phasing in
B40B50effective Jul 2026

B40 mandatory since Jan 2025; B50 targeted through 2026 — the largest single source of new palm demand. Phased rollout.

Malaysia

Biodiesel (transport)

Phased rollout
B20B30

B20 for transport is being rolled out region by region; industrial sector around B7–B10. B30 sits under the National Biofuel Policy roadmap.

European Union

RED III (palm phase-out)

Phasing out
ExcludedZero by 2030effective Dec 2030

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.

Global

Renewable diesel & SAF

Growing demand

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.

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