Suspicions of Fake China Cooking Oil Alarm US Biofuel Industry
Suspicions of Fake China Cooking Oil Alarm US Biofuel Industry Yahoo Finance
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China Floods US with Potentially Tainted Used Cooking Oil, Jeopardizing Biden’s Climate Goals
China is flooding the US with used cooking oil that the biofuel industry says may be tainted, hurting American farmers and President Joe Biden’s push to promote climate-friendly energy.
US Imports of Used Cooking Oil
- US imports of used cooking oil, an ingredient to make renewable diesel, more than tripled in 2023 from a year earlier.
- Over 50% of these imports came from China.
- American industry groups and biofuel executives are concerned about the fraudulent nature of a significant amount of these supplies.
The European biofuel industry expressed similar concerns about cooking oil from China last year, heightening suspicions. Used cooking oil has a better carbon intensity score than feedstocks widely produced in the US, such as fresh soybean oil. Therefore, potentially tainted imports are benefiting from Biden’s renewables incentives at the expense of American farmers.
Impact on Farmers and Agriculture Companies
- Tainted used cooking oil worsens the challenging situation for farmers and agriculture companies.
- Competition from foreign imports is eating into profits and jeopardizing ambitious expansion plans for companies like Bunge Global SA and Archer-Daniels-Midland Co.
- Illegal shipments could worsen trade tensions between China and the US.
In 2023, imports of used cooking oil, or UCO, amounted to 1.4 million metric tons (3.1 billion pounds), equivalent to the oil squeezed from more than 6% of US soybeans crushed to make soyoil last season. UCO also has a more favorable carbon intensity score and is priced about a third cheaper than refined soyoil.
Concerns about Fresh Palm Oil
One of the biggest concerns is that China shippers are adding UCO to fresh palm oil. Palm oil is a bane to environmentalists and many countries due to its association with deforestation and labor abuses.
China’s Ministry of Commerce didn’t respond to a request for comment.
Government Response and Renewable Fuel Standard Program
The Environmental Protection Agency (EPA) has had discussions with industry stakeholders about concerns over increased imports of UCO and other food wastes. The EPA is aware of the increased imports and will consider this factor when implementing the Renewable Fuel Standard Program, which mandates how much biofuel must be blended into the country’s fuel supply each year.
Producers using UCO or animal waste are required to keep records that ensure the ingredients meet the legal definition of “renewable biomass.”
Geoff Cooper, CEO of Renewable Fuels Association, expressed concern that the integrity of the Renewable Fuel Standard could be undermined if the EPA and other agencies do not address the issue quickly.
Industry Actions
- Clean Fuels Alliance America is looking into the surge in UCO imports from China and the possibility of fraudulent gallons entering the US.
- NOPA, the trade group representing US seed processing industries, has had talks with federal lawmakers and agencies including the EPA and US Department of Agriculture.
Global Context
Asia, led by China, is the world’s biggest UCO supplier. The European Union initiated a probe into Asian imports last year at the request of European biodiesel producers, but the request was dropped.
“There is plenty of suspicion and lots of stories and anecdotes floating around,” said Cooper. “It appears to be one of the worst kept secrets out there that this is happening.”
–With assistance from Jennifer A. Dlouhy and Gerson Freitas Jr..
©2024 Bloomberg L.P.
SDGs, Targets, and Indicators Analysis
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 7: Affordable and Clean Energy
- SDG 8: Decent Work and Economic Growth
- SDG 12: Responsible Consumption and Production
- SDG 13: Climate Action
- SDG 15: Life on Land
The issues highlighted in the article are connected to these SDGs because they involve the production and importation of renewable energy sources (used cooking oil for biofuel), economic impacts on farmers and agriculture companies, responsible consumption and production practices, climate-friendly energy promotion, and potential environmental impacts on land.
2. What specific targets under those SDGs can be identified based on the article’s content?
- SDG 7.2: Increase substantially the share of renewable energy in the global energy mix.
- SDG 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation.
- SDG 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.
- SDG 13.2: Integrate climate change measures into national policies, strategies, and planning.
- SDG 15.2: Promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests, and substantially increase afforestation and reforestation globally.
Based on the article’s content, these targets can be identified as relevant to the issues discussed.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
Yes, there are indicators mentioned or implied in the article that can be used to measure progress towards the identified targets. These include:
- Imports of used cooking oil for renewable diesel production
- Percentage of used cooking oil imports from China
- Carbon intensity score of used cooking oil compared to other feedstocks
- Price comparison between used cooking oil and refined soyoil
- Volume of UCO imports and its impact on the US soy market
- Presence of UCO in fresh palm oil shipments
- Compliance with the Renewable Fuel Standard Program
- Investigation and actions taken by industry groups and government agencies
These indicators can be used to measure progress towards the identified targets by monitoring the trends, impacts, and actions related to the issues discussed in the article.
4. Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 7: Affordable and Clean Energy | Increase substantially the share of renewable energy in the global energy mix (7.2) | – Imports of used cooking oil for renewable diesel production – Percentage of used cooking oil imports from China |
| SDG 8: Decent Work and Economic Growth | Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation (8.3) | – Economic impacts on farmers and agriculture companies – Ambitious expansion plans of crop-based green diesel feedstocks producers |
| SDG 12: Responsible Consumption and Production | By 2030, achieve the sustainable management and efficient use of natural resources (12.2) | – Volume of UCO imports and its impact on the US soy market – Compliance with the Renewable Fuel Standard Program |
| SDG 13: Climate Action | Integrate climate change measures into national policies, strategies, and planning (13.2) | – Carbon intensity score of used cooking oil compared to other feedstocks – Investigation and actions taken by industry groups and government agencies |
| SDG 15: Life on Land | Promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests, and substantially increase afforestation and reforestation globally (15.2) | – Presence of UCO in fresh palm oil shipments – Environmental impacts related to deforestation and land use |
Copyright: Dive into this article, curated with care by SDG Investors Inc. Our advanced AI technology searches through vast amounts of data to spotlight how we are all moving forward with the Sustainable Development Goals. While we own the rights to this content, we invite you to share it to help spread knowledge and spark action on the SDGs.
Fuente: finance.yahoo.com
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