Malaysian Minister Proposes Commodity Benchmarking Under EUDR
-Minister Fadillah Yusof suggested that the EUDR should target commodities instead of countries under the “high risk/ low risk” categorization of EUDR.
-What benefits can Malaysia gain when independent reports show Malaysia and Indonesia, as having successfully reduced deforestation?
-Progress on slowing deforestation could boost climate efforts, say experts. Reduction in primary forest loss in Indonesia and Malaysia, as well as Brazil and Colombia, offers hope for tropical forests across the world. The Guardian
-What benefits can Malaysia gain when independent reports show Malaysia and Indonesia, as having successfully reduced deforestation?
-Progress on slowing deforestation could boost climate efforts, say experts. Reduction in primary forest loss in Indonesia and Malaysia, as well as Brazil and Colombia, offers hope for tropical forests across the world. The Guardian
-What can we learn from Indonesia and Malaysia's success in reducing deforestation? WEForum
-World Resources Institute urges other countries to learn lessons from Indonesia’s deforestation decline. Indonesia is now leading the world in reducing deforestation rates, according to statistics from the World Resources Institute (WRI). Its most recent data on global deforestation shows that Indonesia has reduced deforestation rate in primary forests by 65% since 2015, which is more than any other country over the same period. Food Ingredients First
Palm oil producing countries Indonesia and Malaysia deserve kudos for having reduced deforestation in their respective countries in such dramatic fashion. But will it be enough for the EU to list these two major palm oil producing countries as “low risk” for deforestation for palm oil?
In its August 2023 report, Palm Pulse, the Malaysian Palm Oil Council brought up the WRI’s findings in its report titled Malaysia's Positive Strides Towards Compliance with EU Deforestation Regulation
As the EU establishes its country benchmarking system to assess the risk of deforestation, the latest data from WRI unequivocally justifies Malaysia's classification as 'Low Risk' for deforestation. Malaysia values its natural landscape and biodiversity while balancing sustainable development and economic opportunities aligned with the United Nations Sustainable Development Goals (UN SDGs). This commitment is further reinforced by effective unilateral action and long-term commitment from the industry and its stakeholders.
The findings from Global Forest Watch and World Resources Institute were well timed for Indonesia and Malaysia, which have been fighting the EU over the latter’s Deforestation Regulations.
This led to an agreement between Indonesia, Malaysia, and the European Union to establish an Ad Hoc Joint Task Force (JTF) on European Union Deforestation Regulation (EUDR). The Kick-off Meeting of the Ad Hoc JTF was conducted on 4 August 2023 in Jakarta, Indonesia according to a report by CPOPC.
Following that meeting, Malaysian Minister, Fadillah Yusof, was quoted by local media as saying:
“We hope that by the final meeting, Malaysia will be classified under the standard benchmark, and not as ‘high risk’”. The JTF will actively work towards gaining EU recognition for the Malaysian Sustainable Palm Oil (MSPO) certification scheme and other relevant certifications,”
But will Malaysia’s unilateral action and long-term commitment, as presented by the MPOC, be sufficient for the EU to accept the MSPO as credible enough to meet EUDR requirements?
Minister Fadillah was quoted in other local media as proposing that industries should be benchmarked, in noting the EU’s recognition of the Malaysian Sustainable Palm Oil (MSPO) Certification Scheme as a benchmark for the country’s effort to ensure responsible practices in the industry.
This novel idea deserves consideration even though it raises the question of how it would benefit the Malaysian palm oil industry. The thing with Malaysian production of commodities listed in the EUDR, is that the commodities including rubber, palm oil and cocoa are heavily regulated by the government to ensure their sustainability. The most likely benefit is that it would take the focus off the global palm oil industry, which the industry claims, has been demonized despite scientific findings that say otherwise.
It’s The Crop, Not The Country
Take Brazil as an example. A powerhouse of food exports, primarily for beef and soybean. Recent reports show an even distribution of reported conflicts between indigenous peoples versus soy and palm oil. However, the Supply Chain Tracking Tools report by the Environmental Defense Fund, shows that cattle and soy in Brazil are responsible for most of the deforestation.
This report in Nature Sustainability has more statistics on the massive expansion of soy in South America since 2000. While the lines are muddied between cattle and soy expansion in South America, they become quite clear when planted areas are considered.
Using planted areas data from the USDA, Brazilian producers are forecasted to expand soybean planted area to reach 45.2 million hectares (ha) in 2023/24 season, up from the estimated 43.5 mln ha planted in the 2022/23 season.
For palm oil, the planted area in Brazil is estimated at 190,000 hectares, 5,000 hectares larger than last year (3 percent).
Simply put, at less than 0.005% of soybeans planted area, the Brazilian palm oil industry would have to undergo the same EUDR scrutiny if Brazil was listed as a “high risk” country by the EUDR. This begs the question, could Brazilian forests have fared better if the country focused on palm oil to grow revenue instead of soy?
Palm Oil No Monster Under The Bed
There is enough evidence to support the palm oil industry’s long-standing claim that the sheer efficiency of the crop in producing edible oils per hectare, underwrites the crop’s sustainability.
Convincing the EU of this fact, will require palm oil producing countries to undo the fear-mongering and demonization of the crop by media like The Guardian UK.
The Guardian UK wrote in 2015
Palm oil risk to Africa as prospectors eye swaths of land
Forest regions and local livelihoods under threat as palm oil producers looking for new agricultural land are welcomed by African governments
This was repeated by The Guardian in 2016 with
Africa’s forests 'threatened by palm oil rush'. Greenpeace France warns that tropical forests could be lost to a palm oil bonanza that has already razed millions of hectares of south-east Asia
These stark warnings of deforestation in Africa for palm oil, turned out to be nothing more than false alarms touted by poor independent journalism.
Sadly for forests in African countries, Liberia and the Democratic Republic of Congo, continue to lose forests to reasons other than palm oil.
Minister Fadillah’s concept of commodity benchmarking has been picked up by Proforest who “claim to have the answer for risk benchmarking.” It must be gratifying to Minister Fadillah that his ministry’s concept has been echoed by environmental groups.
But the vindication of palm oil under his proposal for a commodity specific regulation may come to nothing as the world’s largest food producers, push back against EUDR.
Published August 2023-CSPO Watch
-World Resources Institute urges other countries to learn lessons from Indonesia’s deforestation decline. Indonesia is now leading the world in reducing deforestation rates, according to statistics from the World Resources Institute (WRI). Its most recent data on global deforestation shows that Indonesia has reduced deforestation rate in primary forests by 65% since 2015, which is more than any other country over the same period. Food Ingredients First
Palm oil producing countries Indonesia and Malaysia deserve kudos for having reduced deforestation in their respective countries in such dramatic fashion. But will it be enough for the EU to list these two major palm oil producing countries as “low risk” for deforestation for palm oil?
In its August 2023 report, Palm Pulse, the Malaysian Palm Oil Council brought up the WRI’s findings in its report titled Malaysia's Positive Strides Towards Compliance with EU Deforestation Regulation
As the EU establishes its country benchmarking system to assess the risk of deforestation, the latest data from WRI unequivocally justifies Malaysia's classification as 'Low Risk' for deforestation. Malaysia values its natural landscape and biodiversity while balancing sustainable development and economic opportunities aligned with the United Nations Sustainable Development Goals (UN SDGs). This commitment is further reinforced by effective unilateral action and long-term commitment from the industry and its stakeholders.
The findings from Global Forest Watch and World Resources Institute were well timed for Indonesia and Malaysia, which have been fighting the EU over the latter’s Deforestation Regulations.
This led to an agreement between Indonesia, Malaysia, and the European Union to establish an Ad Hoc Joint Task Force (JTF) on European Union Deforestation Regulation (EUDR). The Kick-off Meeting of the Ad Hoc JTF was conducted on 4 August 2023 in Jakarta, Indonesia according to a report by CPOPC.
Following that meeting, Malaysian Minister, Fadillah Yusof, was quoted by local media as saying:
“We hope that by the final meeting, Malaysia will be classified under the standard benchmark, and not as ‘high risk’”. The JTF will actively work towards gaining EU recognition for the Malaysian Sustainable Palm Oil (MSPO) certification scheme and other relevant certifications,”
But will Malaysia’s unilateral action and long-term commitment, as presented by the MPOC, be sufficient for the EU to accept the MSPO as credible enough to meet EUDR requirements?
Minister Fadillah was quoted in other local media as proposing that industries should be benchmarked, in noting the EU’s recognition of the Malaysian Sustainable Palm Oil (MSPO) Certification Scheme as a benchmark for the country’s effort to ensure responsible practices in the industry.
This novel idea deserves consideration even though it raises the question of how it would benefit the Malaysian palm oil industry. The thing with Malaysian production of commodities listed in the EUDR, is that the commodities including rubber, palm oil and cocoa are heavily regulated by the government to ensure their sustainability. The most likely benefit is that it would take the focus off the global palm oil industry, which the industry claims, has been demonized despite scientific findings that say otherwise.
It’s The Crop, Not The Country
Take Brazil as an example. A powerhouse of food exports, primarily for beef and soybean. Recent reports show an even distribution of reported conflicts between indigenous peoples versus soy and palm oil. However, the Supply Chain Tracking Tools report by the Environmental Defense Fund, shows that cattle and soy in Brazil are responsible for most of the deforestation.
This report in Nature Sustainability has more statistics on the massive expansion of soy in South America since 2000. While the lines are muddied between cattle and soy expansion in South America, they become quite clear when planted areas are considered.
Using planted areas data from the USDA, Brazilian producers are forecasted to expand soybean planted area to reach 45.2 million hectares (ha) in 2023/24 season, up from the estimated 43.5 mln ha planted in the 2022/23 season.
For palm oil, the planted area in Brazil is estimated at 190,000 hectares, 5,000 hectares larger than last year (3 percent).
Simply put, at less than 0.005% of soybeans planted area, the Brazilian palm oil industry would have to undergo the same EUDR scrutiny if Brazil was listed as a “high risk” country by the EUDR. This begs the question, could Brazilian forests have fared better if the country focused on palm oil to grow revenue instead of soy?
Palm Oil No Monster Under The Bed
There is enough evidence to support the palm oil industry’s long-standing claim that the sheer efficiency of the crop in producing edible oils per hectare, underwrites the crop’s sustainability.
Convincing the EU of this fact, will require palm oil producing countries to undo the fear-mongering and demonization of the crop by media like The Guardian UK.
The Guardian UK wrote in 2015
Palm oil risk to Africa as prospectors eye swaths of land
Forest regions and local livelihoods under threat as palm oil producers looking for new agricultural land are welcomed by African governments
This was repeated by The Guardian in 2016 with
Africa’s forests 'threatened by palm oil rush'. Greenpeace France warns that tropical forests could be lost to a palm oil bonanza that has already razed millions of hectares of south-east Asia
These stark warnings of deforestation in Africa for palm oil, turned out to be nothing more than false alarms touted by poor independent journalism.
Sadly for forests in African countries, Liberia and the Democratic Republic of Congo, continue to lose forests to reasons other than palm oil.
Minister Fadillah’s concept of commodity benchmarking has been picked up by Proforest who “claim to have the answer for risk benchmarking.” It must be gratifying to Minister Fadillah that his ministry’s concept has been echoed by environmental groups.
But the vindication of palm oil under his proposal for a commodity specific regulation may come to nothing as the world’s largest food producers, push back against EUDR.
Published August 2023-CSPO Watch
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