How is Diamond Green Diesel linked to Amazon deforestation through cattle fat?

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Diamond Green Diesel's Supply Chain Linked to Amazon Deforestation Through Cattle Fat

Diamond Green Diesel (DGD), a joint-venture between Darling Ingredients and Valero Energy, has been sourcing cattle fat, or tallow, for its green fuel production from suppliers in Brazil whose operations have been linked to cattle raised on illegally deforested land in the Amazon rainforest. While DGD's Port Arthur, Texas refinery converts this tallow into a cleaner alternative fuel for US airlines like JetBlue and Southwest, a significant portion of the raw material has been traced back to slaughterhouses that purchased animals from ranches implicated in illegal deforestation. This connection raises concerns despite DGD's fuel being certified under the International Sustainability and Carbon Certification (ISCC) for the CORSIA agreement, which aims to reduce aviation's climate impact.
Tallow Sourced from Suppliers with Deforestation Links

At least two Brazilian factories supplying DGD with tens of thousands of tons of cattle fat have been identified as sourcing some of this material from slaughterhouses that bought animals from ranches involved in illegal Amazon deforestation. One of Darling Ingredients' own rendering plants in Brazil's Para state, named Araguaia, is reported to have sourced tallow from at least five meatpackers that failed an audit for slaughtering cattle from illegally deforested areas. In 2023 alone, the Araguaia plant exported US$4.4 million worth of beef tallow from the Amazon region to DGD, indicating a substantial volume of potentially compromised material entering the supply chain.
Specific Instances of Supply Chain Contamination

Investigations have revealed specific instances of contamination within the supply chain. The Sao Francisco slaughterhouse, which supplied Araguaia, was found to have purchased cattle from farms situated on illegally deforested land, including indirectly from a farm called Vale do Paraiso. This farm had been subject to restrictions since 2006 due to illegal clearing of 15 square miles of trees. Additionally, another Darling Ingredients plant obtained fat from a slaughterhouse that confirmed purchasing hundreds of cattle from rancher Bruno Heller, identified by Brazilian Federal Police as potentially the Amazon's largest deforester.
Certification and Its Limitations

Diamond Green Diesel's imports from Brazil were certified as sustainable by the International Sustainability and Carbon Certification (ISCC) under the CORSIA agreement. This certification is intended to curb the aviation industry's climate impact. However, the ISCC classifies tallow as a "byproduct" of the beef industry under the CORSIA framework, and consequently, it did not investigate DGD's specific supply chain. The assumption made by the ISCC is that the demand for tallow does not directly drive deforestation, a premise that is being questioned given the findings of the supply chain's links to illegally cleared lands.
Industry Context and Potential Impact

The demand for green jet fuel is growing as airlines face pressure to meet net-zero emission targets by 2050. The global market for sustainable jet fuel, while currently small compared to conventional aviation fuel, is projected to expand significantly, partly due to government incentives. This increased demand could potentially lead to an expansion of cattle herds in Brazil, which is already the primary driver of Amazon rainforest destruction. Experts have noted that any additional demand for beef products, including byproducts like tallow, could indirectly contribute to deforestation and forest degradation, potentially violating Brazilian law.

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How is Diamond Green Diesel linked to Amazon deforestation through cattle fat?

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