Malaysian Palm Oil Industry Seeks Cooperation from EU on Forests
The Malaysian Palm Oil Council (MPOC) has filed its response to the EUs “Minimising risk of deforestation and forest degradation associated with products placed on the EU market.”
The MPOC, which represents the interests of Malaysian palm oil producers and exporters, is hoping that the European Union will provide a “consultative process that will ensure that legislative and regulatory outcomes be balanced, not unilateral, based on measurable science and data, non-discriminatory and in line with applicable World Trade Organisation (WTO) rules.” A copy of the full response can be downloaded here.
In arguing for its cause, the MPOC stated that “despite the development of its palm oil industry, (the preservation of Malaysia’s forest cover) is outstanding if projected against the steady decline of the overall global forested area.”
The Council further presented that:
“The MSPO standard, established in 2015, intends to ensure responsible and sustainable production by oil palm smallholdings, plantations, and palm oil processing facilities, as well as transparency and traceability along the value chain. Again, these actions are real, measurable and adopted by Malaysia to protect what is not only a precious resource for humanity, but foremost Malaysia’s most important asset and comparative advantage: its forests and unique ecosystem.”
These assertions of sustainability and forest preservation in Malaysia by the industry is not entirely new. In fact, these claims of having preserved half of its forest canopy despite its status as the second largest producer of palm oil in the world goes back a decade or more when the expansion of planted palm oil areas in Malaysia was at its peak.
The total planted area in Malaysia in 2020, stands at an estimated 5.85 million hectares, with the bulk of it in the Bornean states of Sabah and Sarawak.
In terms of deforestation, it is unlikely that the Malaysian palm oil industry will have any great effect in forest loss in the country. Plantable areas of any consideration for oil palm in Sabah and Sarawak have seen pledges by state governments that any new plantings will only be done on brownfields.
But what does this mean as far as Malaysian forests and its biodiversity are concerned? In its closing note, the MPOC declared:
“In particular, MPOC notes that the Inception Impact Assessment refers to an external study that “will be contracted out to gather additional evidence. It will further inform the options available to address the problem, how related solutions have worked in the past and how these solutions could affect stakeholders”.
To that end, MPOC is willing to work cooperatively and in partnership with the European Commission and its external consultants in order to provide the wealth of measurable data and relevant scientific, technical and commercial know-how that it has developed over the years in its constant quest to ever more responsible management of forests, sustainable production and protection of the environment.”
The underlined sentence as highlighted by CSPO Watch for relevance to our suggestions below.
Proof of sustainability
If Malaysia is to make a convincing case to the European Union that Malaysian palm oil is indeed sustainable and that “not all palm oil producing countries have the same regulatory frameworks in place in order to cultivate and produce responsibly, protect the forests and enforce the rules” it will have to show beyond any doubts, that its palm oil will not cause further deforestation or degradation of Malaysian forests.
Decades long debates between the palm oil industry and its critics have established clear parameters on what might be acceptable for both sides. For the palm oil industry in Malaysia is to gain more credibility, there are a few actions that should be taken.
Rebuilding economies and green deals
The importance of EU support for Malaysia’s drive towards the sustainability of its palm oil industry cannot be understated. There is a fear overall, among conservationists that the fight against climate change will be shelved when global economies try to recover from the effects of the current pandemic in Covid19.
The Parliament Magazine said it best in an opinion from Youssef Kobo:
“The danger is that both Europe’s and Asia’s critical sustainability commitments could end up being left behind. Therefore, it is crucial that EU policymakers ensure that the Green New Deal – and Malaysia’s sustainable palm oil transition – continue unabated as part of the stimulus needed to sustain our economies.”
Published March, 2020. CSPO Watch
The MPOC, which represents the interests of Malaysian palm oil producers and exporters, is hoping that the European Union will provide a “consultative process that will ensure that legislative and regulatory outcomes be balanced, not unilateral, based on measurable science and data, non-discriminatory and in line with applicable World Trade Organisation (WTO) rules.” A copy of the full response can be downloaded here.
In arguing for its cause, the MPOC stated that “despite the development of its palm oil industry, (the preservation of Malaysia’s forest cover) is outstanding if projected against the steady decline of the overall global forested area.”
The Council further presented that:
“The MSPO standard, established in 2015, intends to ensure responsible and sustainable production by oil palm smallholdings, plantations, and palm oil processing facilities, as well as transparency and traceability along the value chain. Again, these actions are real, measurable and adopted by Malaysia to protect what is not only a precious resource for humanity, but foremost Malaysia’s most important asset and comparative advantage: its forests and unique ecosystem.”
These assertions of sustainability and forest preservation in Malaysia by the industry is not entirely new. In fact, these claims of having preserved half of its forest canopy despite its status as the second largest producer of palm oil in the world goes back a decade or more when the expansion of planted palm oil areas in Malaysia was at its peak.
The total planted area in Malaysia in 2020, stands at an estimated 5.85 million hectares, with the bulk of it in the Bornean states of Sabah and Sarawak.
In terms of deforestation, it is unlikely that the Malaysian palm oil industry will have any great effect in forest loss in the country. Plantable areas of any consideration for oil palm in Sabah and Sarawak have seen pledges by state governments that any new plantings will only be done on brownfields.
But what does this mean as far as Malaysian forests and its biodiversity are concerned? In its closing note, the MPOC declared:
“In particular, MPOC notes that the Inception Impact Assessment refers to an external study that “will be contracted out to gather additional evidence. It will further inform the options available to address the problem, how related solutions have worked in the past and how these solutions could affect stakeholders”.
To that end, MPOC is willing to work cooperatively and in partnership with the European Commission and its external consultants in order to provide the wealth of measurable data and relevant scientific, technical and commercial know-how that it has developed over the years in its constant quest to ever more responsible management of forests, sustainable production and protection of the environment.”
The underlined sentence as highlighted by CSPO Watch for relevance to our suggestions below.
Proof of sustainability
If Malaysia is to make a convincing case to the European Union that Malaysian palm oil is indeed sustainable and that “not all palm oil producing countries have the same regulatory frameworks in place in order to cultivate and produce responsibly, protect the forests and enforce the rules” it will have to show beyond any doubts, that its palm oil will not cause further deforestation or degradation of Malaysian forests.
Decades long debates between the palm oil industry and its critics have established clear parameters on what might be acceptable for both sides. For the palm oil industry in Malaysia is to gain more credibility, there are a few actions that should be taken.
- Transparency. The Malaysian palm oil industry has signed a deal with blockchain tech company, Bloomboc, to provide transparency for its supply chain. This transparency can be further heighted by the use of real-time satellite imagery as provided by third parties like Satelligence, to keep a watchful eye on forest canopy status.
- Accounting for nature. The claims by the Malaysian palm oil industry of how Malaysia has 53% forest canopy must be accounted for in clear terms. There is no doubt that Malaysia, through the conservation actions of its member states, is protecting its natural areas including that of blue carbon in marine national parks. Individual state actions for conservation are however seldom recognized or credited towards Malaysia’s efforts on conservation. A comprehensive accounting of all the efforts nationwide must be made.
- Third party verification. The case being made by the MPOC to the EU is on a G2G level and one that must be verified by independent sources. For example:
- The use of third parties like Satelligence to clearly map out the industry’s footprint in Malaysia plus monitor its forests.
- Confirmation of the GHG savings from palm-based biofuels to meet the EU’s demands by engaging research bodies like the University of Gottingen on plantation areas that actively supply or seek to supply the EU’s needs for biofuels. A collaborated effort with the researchers at the Malaysian Palm Oil Board who look into the fine details of the industry such as this one, would go a long way towards establishing the sustainability of Malaysian palm oil.
- Natural capital accounting. The preservation of Malaysia’s forests plus any additional protected areas must be accounted for by an independent third party. While it may be true that the Malaysian Sustainable Palm Oil program (MSPO) is resulting in the protection of natural areas previously planted over by the palm oil industry, there is no record or accounting of the positive impacts of the MSPO. An account by a credible third party is needed.
- Food vs Fuel or Additionality. The Malaysian palm oil industry must show that it is able to meet additional demand from EU biofuels without the need to increase new planting areas as a threat to remaining forested areas. The best way forward towards achieving this is to increase the yields of its 500,000 small farmers whose current yields remain at an industry low 1.4 tons per hectare. There is much room to increase Malaysian palm oil production in this segment of the industry which is featured by the industry as part of the United Nations Sustainable Development Goals (UN SDGs)
Rebuilding economies and green deals
The importance of EU support for Malaysia’s drive towards the sustainability of its palm oil industry cannot be understated. There is a fear overall, among conservationists that the fight against climate change will be shelved when global economies try to recover from the effects of the current pandemic in Covid19.
The Parliament Magazine said it best in an opinion from Youssef Kobo:
“The danger is that both Europe’s and Asia’s critical sustainability commitments could end up being left behind. Therefore, it is crucial that EU policymakers ensure that the Green New Deal – and Malaysia’s sustainable palm oil transition – continue unabated as part of the stimulus needed to sustain our economies.”
Published March, 2020. CSPO Watch