Material Insights · Understanding the Material World

Biodiesel (FAME): Emissions

Waste oil versus palm: a huge gap in CO2 savings

What this tab covers The greenhouse-gas footprint per tonne, split by lifecycle phase (feedstock, production, movement, use, end of life), the global total, other environmental impacts, levers and low-carbon routes, India's position, and where the investment opportunity lies. Emission intensity 1.60 t CO2e per t range about 0.56 (UCO, 15 g/MJ) to 2.8 (palm, open effluent pond, 75 g/MJ) excluding ILUC; adding the EU ILUC estimate for oil crops (55 g/MJ, about 2.05 t/t) puts palm and soy FAME at 3.8-4.8 t/t, above fossil diesel's 3.5 · indicative world average of about 43 g CO2e/MJ for a palm-, soy- and rapeseed-heavy mix with about 20-25% waste oils; fossil comparator 94 g/MJ, i.e. 3.5 t per t of FAME energy-equivalent Global emissions per year 75.0 Mt CO2e per year 2024-25 · 1.6 t/t x 47 Mt, excluding ILUC (indicative)

Per t of FAME, life cycle (per MJ x 37.2 GJ/t); combustion CO2 from the fatty acid chain is biogenic. Intensity: RED II Annex V default values (Directive (EU) 2018/2001); RED II Annex VIII ILUC (indicative); CARB LCFS 2022 average biodiesel 28 g/MJ. Global total: derived (indicative).

Share of footprint by lifecycle phase

Feedstock 72% Production / process 20% Movement 6% Use 2%

Footprint by lifecycle phase

PhaseIntensityShareMain sources of emissionsNotesSource
Feedstockabout 1.1-1.2 t CO2e/t (crop oils); about 0.1-0.2 for wastes72%fertiliser N2O, palm mill effluent methane, crushing energy; land-use change if countedmethane capture at palm mills cuts palm FAME from 75 to 52 g/MJ (RED defaults)RED II Annex V default values (Directive (EU) 2018/2001)
Production / processabout 0.3 t CO2e/t20%fossil methanol (about 0.1 t per t), steam and powerbio-methanol would cut thisindicative
Movementabout 0.1 t CO2e/t6%ocean freight of oil and FAME, road collection of UCOindicative
Useabout 0.03 t CO2e/t non-CO2 gases; plus about 0.14 t fossil CO2 from the methanol-derived methyl group, which accounting rules usually ignore2%combustiontailpipe particulates fall, NOx rises slightlystoichiometry; indicative
End of lifenot applicable–fuel is burnedspills biodegrade readilynot applicable

Other environmental impacts

Deforestation and peat drainage linked to palm expansion; competition with food oils; water pollution from palm oil mill effluent where untreated. Fraud risk in imported UCO and residues.

Levers to cut emissions

  • Shift to waste and residue oils (84-88% savings, RED defaults)
  • Methane capture at palm oil mills (cuts palm FAME by about 23 g/MJ)
  • Certified deforestation-free and cover-crop oils (ISCC, RSPO)
  • Bio-methanol instead of fossil methanol
  • Renewable power and steam at plants

India

India's biodiesel is mainly UCO, animal fats, non-edible oils and imported palm stearin (USDA 2026), so its footprint per tonne is low but volumes are tiny. No national life-cycle values are published.

Emission figures are indicative global averages from the life-cycle studies named; actual footprints vary widely by site, energy mix and method.

Low-carbon routes

RouteIntensityCost premiumStatusSource
UCO and tallow FAMEabout 15-21 g CO2e/MJ (0.56-0.77 t/t) (RED defaults)feedstock trades near virgin oil prices because of credit demand (indicative)16.5% of EU FAME and HVO feedstock is UCO (EBB 2025)European Biodiesel Board Statistical Report 2025-2026 (Jun 2026); RED II Annex V default values (Directive (EU) 2018/2001)
Palm FAME with mill methane capture on old croplandabout 52 g CO2e/MJ (RED default)smallspreading in Malaysia and Indonesia (indicative)RED II Annex V default values (Directive (EU) 2018/2001)
For a climate investor In India the opportunity is UCO collection and aggregation (hotels, food processors, the RUCO programme) feeding biodiesel and, increasingly, SAF and HVO plants that pay more. What has to be true: traceable collection, OMC offtake at prices that cover collection, and protection against diversion of UCO back to food. Globally, FAME growth is limited; value lies in waste feedstock and methane capture at palm mills.