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Biodiesel policies under pressure as costs surge, environmental concerns mount

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Palm trees are an important raw material for biofuels, but they can also have an environmental impact. (Photo: iStock)

Biodiesel, derived from biomass, faces development challenges due to environmental limitations. Indonesia’s biodiesel policy, which promotes the use of palm oil-based biodiesel, has been impacted by rising costs of fatty acid methyl esters (FAME) in palm oil.

Meanwhile, the European shipping industry issued a joint statement urging a reduction in the use of crop-based biodiesel, warning that its expansion could lead to deforestation and undermine global sustainability efforts.

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