T&E launches new briefing on concerns about POME import fraud

In Belgium, Transport and Environment (T&E) has issued a briefing into the growing concerns surrounding the use of Palm Oil Mill Effluents (POME) in EU biofuels, highlighting potential fraud and discrepancies in reported volumes amidst the shift towards waste-based alternatives.

According to T&E, over the past decade, the EU’s biofuel policies, initially promoting palm oil-based fuels, have shifted toward using waste materials like used cooking oil, animal fats, and palm residues, such as Palm Oil Mill Effluents (POME). While these changes aim to reduce deforestation linked to biofuel production, concerns have arisen about the legitimacy of some biofuel imports. A recent report by T&E reveals troubling trends in the use of POME in EU biofuels, suggesting that the reported quantities exceed what is feasible, raising suspicions of fraud.

The reported consumption of POME in the EU far exceeds global production estimates, pointing to a mismatch that raises suspicions of fraudulent reporting. Estimates suggest that actual POME oil production in Malaysia and Indonesia is lower than reported figures, with competition for biogas production and limited collection capacity likely contributing to discrepancies. This situation is compounded by increasing POME prices, which could prompt a reclassification of the material as a by-product rather than a waste residue. Despite efforts to address fraud, including stricter auditing rules since 2022, reports from certification schemes like ISCC highlight persistent inconsistencies in the volumes of certified POME biofuels, further emphasizing the need for enhanced oversight and stricter enforcement in the EU biofuel market.