Biodiesel (FAME): Regulation
Mandates, levies and a postponed B50 in Indonesia
What this tab covers How it is regulated and what could disrupt supply: hazard classification, rules in the EU, US and India, anti-dumping duties and other trade measures, and supply-risk notes.Hazards
| Classification | UN number | Key risks |
|---|---|---|
| generally not classified (B100); blends classified as for diesel | not regulated as B100 (indicative); UN1202 for blends | Low toxicity and biodegradable, but oxidises and absorbs water in storage; saturated esters gel in cold weather. |
Main rules
| Where | Rule | Effect |
|---|---|---|
| EU | RED III; 7% crop cap; Annex IX lists for waste feedstocks; palm phase-out as high-ILUC-risk by 2030 | shifts EU FAME towards waste oils and rapeseed |
| EU | Anti-dumping duties on Chinese FAME (definitive Feb 2025); duties of 8-18% on Indonesian biodiesel extended five years (2026) | protects EU producers |
| US | RFS biomass-based diesel 9.07 billion RINs (2026) and 9.20 billion (2027); half RINs for imported fuel and feedstock from 2028; 45Z credit excludes imports | favours domestic soy and canola oil |
| Indonesia | B40 (2025, kept for 2026); B50 postponed in Jan 2026 with no new date; funded by the palm export levy, raised from 10% to 12.5% on CPO from 1 Mar 2026 (Investortrust, Jan 2026) | absorbs palm oil and reduces exports |
| Brazil | Fuel of the Future law: biodiesel blend raised to B15 in 2025 with steps toward B20 (indicative) | soy oil demand |
India
| Rule | Effect |
|---|---|
| National Policy on Biofuels 2018 (amended 2022): 5% biodiesel blending target by 2030 | actual blending under 1% (USDA 2026) |
| FSSAI limit of 25% total polar compounds on cooking oil and the RUCO (Repurpose Used Cooking Oil) initiative (indicative) | channels UCO to biodiesel instead of reuse |
| BIS IS 15607 specification for B100 (indicative) | quality standard for OMC purchases |
Trade measures
- EU anti-dumping and countervailing duties on biodiesel from China, Argentina and Indonesia
- Indonesian export levies on CPO and a 10% levy on crude glycerine exports (Mar 2026, Argus)
- US tariffs and 45Z exclusion of imported feedstocks
Supply risk
Production is diverse, but feedstock is tied to palm, soy and rapeseed harvests and to Indonesian policy. Waste oil supply is limited and exposed to fraud concerns over imported UCO.