STATUS REPORT BY THE EUROPEAN UNION

The following communication, dated 14 July 2025, from the delegation of the European Union to the Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 21.6 of the DSU.

_______________

The European Union submits this report in accordance with Article 21.6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes ("DSU").

On 26 April 2024, the Dispute Settlement Body ("DSB") adopted its recommendations and rulings in the dispute European Union and Certain Member States — Certain Measures Concerning Palm Oil and Oil Palm Crop-Based Biofuels (WT/DS 600). At the DSB meeting of 24 May 2024, the European Union notified the DSB that it intended to implement the recommendations and rulings of the DSB in this dispute in a manner that respects its WTO obligations but that it needed a reasonable period of time to do so. On 21 January 2025, Malaysia and the European Union agreed that the reasonable period of time for the European Union to implement the recommendation and rulings of the DSB will expire on 1 January 2026.

Regarding the recommendations and rulings of the DSB relating to the timely review of the data used to determine which biofuels are high-Indirect Land Use Change ("ILUC") risk, the European Union is reviewing the Delegated Regulation (Commission Delegated Regulation (EU) 2019/807 of 13 March 2019 supplementing Directive (EU) 2018/2001 of the European Parliament and of the Council as regards the determination of high indirect land-use change-risk feedstock for which a significant expansion of the production area into land with high-carbon stock is observed and the certification of low indirect land-use change-risk biofuels, bioliquids and biomass fuels, OJ 2019 L 133, p. 1) and preparing the necessary actions.

Regarding the recommendations and rulings of the DSB relating to the design and implementation of the low ILUC-risk criteria and certification procedure, the European Union adopted on 14 June 2022 the Commission Implementing Regulation (EU) 2022/996 of 14 June 2022 on rules to verify sustainability and greenhouse gas emissions saving criteria and low indirect land-use change‑risk criteria (OJ L 168, 27.6.2022, p. 1).

Regarding the recommendation and rulings of the DSB relating to the French TIRIB (Taxe Incitative Relative à l'Incorporation de Biocarburant) measure, work is ongoing to address the relevant issues as part of a larger legislative reform.

__________