SINGAPORE (Mar 18): The European Commission has concluded that palm oil cultivation results in excessive deforestation and its use in transport fuel should be phased out, setting the bloc on a collision course with major palm oil producers Malaysia and Indonesia.

The commission published its criteria on March 13 for determining what crops cause environmental harm, part of a new European Union (EU) law to boost the share of renewable energy to 32% by 2030 and determine what are appropriate renewable sources.

The use of more harmful biofuel feedstocks will be capped at 2019 levels until 2023 and reduced to zero by 2030.

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