08/05/2012 (RenewableEnergyWorld.com) - A looming decision that threatens to derail Europe's biofuels industry could reverberate all the way to Asia.

The European Union is working to redefine the impacts that biofuels derived from food crops have on carbon emissions, and among the main target is the palm oil coming into Europe from Indonesia and Malaysia, the world’s leaders in palm oil production.

The move is being hotly debated in Europe because a policy shift would make current fuel emissions targets impossible without restructuring the industry toward the production of advanced biofuels. In Asia, the debate comes as Malaysia considers a tax cut that could help it catch up with export leader Indonesia.