Abstract New European Union (EU) rules on biofuels have led to mounting tensions between the EU and some of its trading partners. A particularly contentious measure is the ‘freeze and phase‐out’ of certain biofuels in the transport sector with a high indirect land‐use change risk, as introduced by the recast of the Renewable Energy Directive. In light of Indonesia’s recent move to initiate proceedings against the EU at the World Trade Organization (WTO), this article systematically explores relevant key concepts o…