Palm oil news. December 2023
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For all the news on the global palm oil industry. December 2023
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December 30, 2023
What's in store for EU-Southeast Asia ties in 2024?
By David Hutt
Two significant elections scheduled for 2024 could swing relations between the European Union and Southeast Asia.
European Parliament elections will be held in early June, triggering possible changes at the top of the European Commission and the European Council.
At present, it remains unclear whether European Commission President Ursula von der Leyen will run for reelection. Continuity within the EU's executive would augur continuity in its engagement with Southeast Asian countries, which has been on an upward trajectory in recent years.
However, a surge by the far right in the elections or a hung parliament, sparking post-election politicking, could disrupt the EU's foreign policy agenda, analysts have said.
Indonesia elections
In February, some 200 million voters in Indonesia will also head to the polls to vote for a new president and parliament, and their decisions will have ramifications across the region.
"Indonesia is regarded as primus inter pares in [Southeast Asia], thus the outcome of the presidential and parliamentary elections in the largest Muslim country in the world will be closely watched," said Alfred Gerstl, an expert on Indo-Pacific international relations at the University of Vienna.
"A likely positive outcome is that it can be expected the election will be free and fair, proving that democracy works in Southeast Asia," he added.
According to most opinion polls, the front-runner is Prabowo Subianto, the current defense minister and the purported status-quo candidate.
Subianto will put a "stronger emphasis on strengthening Indonesia's defense capabilities but will otherwise likely follow the traditional free-and-active foreign policy credo," said Gerstl.
However, some reckon he will be even more assertive than Joko Widodo, the incumbent president, over the EU's deforestation and environmental regulations. DW
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Doppa: Greater certainty for oil palm smallholders in Sarawak
MIRI (Dec 30): Oil palm smallholders in Sarawak could look forward to greater certainty and better fresh fruit bunch (FFB) prices next year, said Dayak Oil Palm Planters Association (Doppa) president Napolean R Ningkos.
Last month, Minister of Food Industry, Commodity and Regional Development Sarawak Dato Sri Dr Stephen Rundi Utom said his ministry would continue to work closely with the Ministry of Plantation and Commodities and the Malaysian Palm Oil Certification Council (MPOCC) towards appealing to the European Union (EU) to grant special exemption to Native Customary Rights (NCR) land so as to not deprive the indigenous community the opportunity to uplift their livelihood and wellbeing.
A stumbling block to develop NCR lands in the state, the EU Deforestation Regulation (EUDR) would not only affect oil palm but also other major crops such as rubber, cocoa, coffee, soya and wood, as well as livestock such as cattle, and also products derived from these commodities.
“There have been many challenges faced in 2023, and we trust that with MSPO (Malaysian Sustainable Palm Oil Certification Scheme)’s acceptance by Japan, China and India, these would continue to stabilise the prices next year,” Napoleon told The Borneo Post when asked about his view on the outlook for Sarawak smallholders of this industry in 2024, and the challenges that might lie ahead. Borneo Post
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Indonesian Palm Oil Entrepreneurs Association (GAPKI) asks for action against palm oil free labels
JAKARTA, SAWIT INDONESIA – The government is asked not to ignore the inclusion of the Palm Oil Free label, which continues to occur repeatedly in the country. The Indonesian Palm Oil Entrepreneurs Association (GAPKI) is proposing strict sanctions against producers and importers of food products who deliberately use non-palm oil or palm-free labels.
“We hope that there will be strict sanctions against producers. This step is taken to have a deterrent effect on other (food) producers. "The use of the Palm Oil Free label has happened repeatedly for several years," said GAPKI General Chair, Eddy Martono by telephone, Friday (29 December 2023).
Eddy explained that the use of the Palm Oil Free or No Palm Oil label was influenced by negative palm oil campaigns from abroad. The rise of this campaign is slowly being packaged as part of a lifestyle trend. As a result, food manufacturers become lazy and follow the use of these labels.
“What does free mean? Whether it's a health problem or something else, it must be clear, don't follow this, it must be clear. It would be better if the government summons the manufacturer so that we know their motives. Don't just limit yourself to clarification, give sanctions according to applicable regulations. "Otherwise, other producers could join in," stressed Eddy.
After learning the information regarding Chocolate Korte, GAPKI, led by Eddy Martono, moved quickly to send a letter to BPOM RI. The plan is that the letter will be sent Friday afternoon to BPOM, or no later than Tuesday (3 January 2024). Sawit Indonesia
What's in store for EU-Southeast Asia ties in 2024?
By David Hutt
Two significant elections scheduled for 2024 could swing relations between the European Union and Southeast Asia.
European Parliament elections will be held in early June, triggering possible changes at the top of the European Commission and the European Council.
At present, it remains unclear whether European Commission President Ursula von der Leyen will run for reelection. Continuity within the EU's executive would augur continuity in its engagement with Southeast Asian countries, which has been on an upward trajectory in recent years.
However, a surge by the far right in the elections or a hung parliament, sparking post-election politicking, could disrupt the EU's foreign policy agenda, analysts have said.
Indonesia elections
In February, some 200 million voters in Indonesia will also head to the polls to vote for a new president and parliament, and their decisions will have ramifications across the region.
"Indonesia is regarded as primus inter pares in [Southeast Asia], thus the outcome of the presidential and parliamentary elections in the largest Muslim country in the world will be closely watched," said Alfred Gerstl, an expert on Indo-Pacific international relations at the University of Vienna.
"A likely positive outcome is that it can be expected the election will be free and fair, proving that democracy works in Southeast Asia," he added.
According to most opinion polls, the front-runner is Prabowo Subianto, the current defense minister and the purported status-quo candidate.
Subianto will put a "stronger emphasis on strengthening Indonesia's defense capabilities but will otherwise likely follow the traditional free-and-active foreign policy credo," said Gerstl.
However, some reckon he will be even more assertive than Joko Widodo, the incumbent president, over the EU's deforestation and environmental regulations. DW
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Doppa: Greater certainty for oil palm smallholders in Sarawak
MIRI (Dec 30): Oil palm smallholders in Sarawak could look forward to greater certainty and better fresh fruit bunch (FFB) prices next year, said Dayak Oil Palm Planters Association (Doppa) president Napolean R Ningkos.
Last month, Minister of Food Industry, Commodity and Regional Development Sarawak Dato Sri Dr Stephen Rundi Utom said his ministry would continue to work closely with the Ministry of Plantation and Commodities and the Malaysian Palm Oil Certification Council (MPOCC) towards appealing to the European Union (EU) to grant special exemption to Native Customary Rights (NCR) land so as to not deprive the indigenous community the opportunity to uplift their livelihood and wellbeing.
A stumbling block to develop NCR lands in the state, the EU Deforestation Regulation (EUDR) would not only affect oil palm but also other major crops such as rubber, cocoa, coffee, soya and wood, as well as livestock such as cattle, and also products derived from these commodities.
“There have been many challenges faced in 2023, and we trust that with MSPO (Malaysian Sustainable Palm Oil Certification Scheme)’s acceptance by Japan, China and India, these would continue to stabilise the prices next year,” Napoleon told The Borneo Post when asked about his view on the outlook for Sarawak smallholders of this industry in 2024, and the challenges that might lie ahead. Borneo Post
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Indonesian Palm Oil Entrepreneurs Association (GAPKI) asks for action against palm oil free labels
JAKARTA, SAWIT INDONESIA – The government is asked not to ignore the inclusion of the Palm Oil Free label, which continues to occur repeatedly in the country. The Indonesian Palm Oil Entrepreneurs Association (GAPKI) is proposing strict sanctions against producers and importers of food products who deliberately use non-palm oil or palm-free labels.
“We hope that there will be strict sanctions against producers. This step is taken to have a deterrent effect on other (food) producers. "The use of the Palm Oil Free label has happened repeatedly for several years," said GAPKI General Chair, Eddy Martono by telephone, Friday (29 December 2023).
Eddy explained that the use of the Palm Oil Free or No Palm Oil label was influenced by negative palm oil campaigns from abroad. The rise of this campaign is slowly being packaged as part of a lifestyle trend. As a result, food manufacturers become lazy and follow the use of these labels.
“What does free mean? Whether it's a health problem or something else, it must be clear, don't follow this, it must be clear. It would be better if the government summons the manufacturer so that we know their motives. Don't just limit yourself to clarification, give sanctions according to applicable regulations. "Otherwise, other producers could join in," stressed Eddy.
After learning the information regarding Chocolate Korte, GAPKI, led by Eddy Martono, moved quickly to send a letter to BPOM RI. The plan is that the letter will be sent Friday afternoon to BPOM, or no later than Tuesday (3 January 2024). Sawit Indonesia
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December 28, 2023
Malaysian oil palm industry to stage stronger performance next year
We are looking at a brighter performance next year in anticipation of rising demand for vegetable oils in sync with the increasing world's population.
The anticipated stronger performance of our oil palm industry for 2024 will be attributed to several factors which include higher production, better prices of palm oil and stronger demand from key export destinations.
Crude palm oil (CPO) production in 2024 is expected to continue to increase, supported by a recovery in labour supply, which is expected to provide a boost to the oil palm industry.
CPO production, which was 18.12 million tonnes in 2021 has increased almost two per cent to 18.45 million tonnes in 2022. Throughout the period of January to November this year, CPO production increased by almost one per cent to 17 million tonnes compared to 16.84 million tonnes in the same period of 2022.
The Government's effort in resolving labour issues in the oil palm industry will improve the CPO production for next year.
Additionally, the 2024 Budget which has allocated RM100 million for the implementation of oil palm replanting programme for the smallholders. This move is aimed at accelerating the replacement of old or unproductive palm trees using quality seedlings and encouraging the implementation of Good Agricultural Practices (GAP).
This initiative is offered through a matching grant, expected to benefit 1,500 independent smallholders, involving the replanting of 5,900 hectares of oil palm and will boost their income. This measure will increase the productivity of fresh fruit bunches (FFB) and in turn the yield of palm oil per hectare. New Straits Times
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FMM president lauds call for foreign worker management to be placed solely under MOHR
KUALA LUMPUR (Dec 28): The Federation of Malaysian Manufacturers (FMM) has lauded the call by Deputy Minister in the Prime Minister’s Department (Law and Institutional Reform) M Kulasegaran for the management of foreign workers to be placed solely under the Ministry of Human Resources (MOHR).
"The FMM has since 2018 been calling for the more effective foreign worker management through a single ministry and single end-to-end online system to ensure a holistic, fair and transparent administration of foreign workers in the country," said FMM president Tan Sri Soh Thian Lai.
"More importantly, the industry should not be burdened with flip-flops in government decisions when it comes to foreign worker management that has plagued the country over the years. which has been most frustrating for employers," he said in a statement on Thursday.
Stressing that having a single agency to solely handle the entire management of foreign workers would ensure that a coherent set of policies could be implemented within a strategic framework for the management of foreign workers, Soh said this is critical in supporting the economic growth targets of the country underpinned in part by the labour requirements of industries including foreign workers.
“The MOHR should be the only agency in charge of recruitment and management of foreign workers as the labour regulator of the country. The Edge Malaysia
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Unequal green gains thwart Asia’s green transition
Authors: Mari Pangestu, World Bank, and Novia Xu, CSIS
Decarbonisation in Asia is urgent considering the region accounted for 53 per cent of global CO2 emissions in 2021 and continues to grow. The most effective solution to address the impacts of CO2 emissions should remove fossil fuel subsidies and implement a carbon tax — but for many countries this is politically infeasible.
Governments worldwide have turned to industrial policy to meet net zero commitments through subsidies, tax incentives, infrastructure evolution, research and development support and regulations — so-called green industrial policy. Green industrial policy demonstrates that the free market is not working well enough to fast-track the green economy transition. The case for green industrial policy is strong because, as long as the spillovers from green technologies are diffused globally through trade and investment, it increases the competitiveness of green industries. The issue with green industrial policies concerns its implementation and implications for developing countries.
China’s subsidies, tax exemptions for electric vehicle (EV) purchases, state-driven strategic investments and regulations have supported its dominance in clean energy technology and EV supply chains. China’s investments, technological development and the scale of its own domestic demand have pushed out competition while facilitating the green transition by lowering global wind, solar and battery technology costs to compete with fossil fuels.
The EU is presently the frontrunner in green policy. By 2030, the EU Fit for 55 Plan aims to cut greenhouse gas emissions by 55 per cent from 1990 levels. This ambitious target involves reforming the EU Emissions Trading System and the Carbon Border Adjustment Mechanism, which imposes carbon taxes on energy intensive imports. The novel Renewable Energy Directive has also imposed restrictions on land-based products like palm oil. These restrictions will heavily impact the palm oil industry and exporters are seeking alternatives. East Asia Forum
Malaysian oil palm industry to stage stronger performance next year
We are looking at a brighter performance next year in anticipation of rising demand for vegetable oils in sync with the increasing world's population.
The anticipated stronger performance of our oil palm industry for 2024 will be attributed to several factors which include higher production, better prices of palm oil and stronger demand from key export destinations.
Crude palm oil (CPO) production in 2024 is expected to continue to increase, supported by a recovery in labour supply, which is expected to provide a boost to the oil palm industry.
CPO production, which was 18.12 million tonnes in 2021 has increased almost two per cent to 18.45 million tonnes in 2022. Throughout the period of January to November this year, CPO production increased by almost one per cent to 17 million tonnes compared to 16.84 million tonnes in the same period of 2022.
The Government's effort in resolving labour issues in the oil palm industry will improve the CPO production for next year.
Additionally, the 2024 Budget which has allocated RM100 million for the implementation of oil palm replanting programme for the smallholders. This move is aimed at accelerating the replacement of old or unproductive palm trees using quality seedlings and encouraging the implementation of Good Agricultural Practices (GAP).
This initiative is offered through a matching grant, expected to benefit 1,500 independent smallholders, involving the replanting of 5,900 hectares of oil palm and will boost their income. This measure will increase the productivity of fresh fruit bunches (FFB) and in turn the yield of palm oil per hectare. New Straits Times
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FMM president lauds call for foreign worker management to be placed solely under MOHR
KUALA LUMPUR (Dec 28): The Federation of Malaysian Manufacturers (FMM) has lauded the call by Deputy Minister in the Prime Minister’s Department (Law and Institutional Reform) M Kulasegaran for the management of foreign workers to be placed solely under the Ministry of Human Resources (MOHR).
"The FMM has since 2018 been calling for the more effective foreign worker management through a single ministry and single end-to-end online system to ensure a holistic, fair and transparent administration of foreign workers in the country," said FMM president Tan Sri Soh Thian Lai.
"More importantly, the industry should not be burdened with flip-flops in government decisions when it comes to foreign worker management that has plagued the country over the years. which has been most frustrating for employers," he said in a statement on Thursday.
Stressing that having a single agency to solely handle the entire management of foreign workers would ensure that a coherent set of policies could be implemented within a strategic framework for the management of foreign workers, Soh said this is critical in supporting the economic growth targets of the country underpinned in part by the labour requirements of industries including foreign workers.
“The MOHR should be the only agency in charge of recruitment and management of foreign workers as the labour regulator of the country. The Edge Malaysia
-----------
Unequal green gains thwart Asia’s green transition
Authors: Mari Pangestu, World Bank, and Novia Xu, CSIS
Decarbonisation in Asia is urgent considering the region accounted for 53 per cent of global CO2 emissions in 2021 and continues to grow. The most effective solution to address the impacts of CO2 emissions should remove fossil fuel subsidies and implement a carbon tax — but for many countries this is politically infeasible.
Governments worldwide have turned to industrial policy to meet net zero commitments through subsidies, tax incentives, infrastructure evolution, research and development support and regulations — so-called green industrial policy. Green industrial policy demonstrates that the free market is not working well enough to fast-track the green economy transition. The case for green industrial policy is strong because, as long as the spillovers from green technologies are diffused globally through trade and investment, it increases the competitiveness of green industries. The issue with green industrial policies concerns its implementation and implications for developing countries.
China’s subsidies, tax exemptions for electric vehicle (EV) purchases, state-driven strategic investments and regulations have supported its dominance in clean energy technology and EV supply chains. China’s investments, technological development and the scale of its own domestic demand have pushed out competition while facilitating the green transition by lowering global wind, solar and battery technology costs to compete with fossil fuels.
The EU is presently the frontrunner in green policy. By 2030, the EU Fit for 55 Plan aims to cut greenhouse gas emissions by 55 per cent from 1990 levels. This ambitious target involves reforming the EU Emissions Trading System and the Carbon Border Adjustment Mechanism, which imposes carbon taxes on energy intensive imports. The novel Renewable Energy Directive has also imposed restrictions on land-based products like palm oil. These restrictions will heavily impact the palm oil industry and exporters are seeking alternatives. East Asia Forum
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December 23, 2023
Commodities 2024: Palm oil sees global recovery in 2024 on biodiesel demand, stagnant supplies
Palm oil prices are expected to average higher globally in 2024 as a stagnating production in main producers, Indonesia and Malaysia, along with growing demand for its use in making biodiesel will squeeze supplies in the coming year, industry experts said.
In 2024, third-month crude palm oil futures on Malaysia's commodity exchange are expected to average at MR4,000/mt ($856.44/mt), according to the median estimate of 11markets and government agencies polled by S&P Global Commodity Insights.
The benchmark palm oil contract which influences international vegetable oil prices, averaged MR3,798/mt in 2023, down 23% from 2022, and largely in line with S&P Global's price forecast of MR3,800/mt on Jan. 3.
In the physical markets at origins, Platts assessed the average price of Crude Palm Oil FOB Indonesia at $892.2/mt, according to S&P Global data.
Key factors influencing palm oil prices in 2024 include a "wildcard" El Nino, rising biodiesel demand, robust food demand and low production growth, industry experts said at an industry conference in November. SP Global
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Centre extends reduction in customs duty on edible oil imports till 2025
India is the world’s largest importer of edible oil as it meets 60 pc of its requirement through imports.
The Union Government has extended the reduction in customs duty on edible oil imports by a year in order to keep prices in check.
The reduced duty, which was set to end in March 2024, will continue till March 2025, an official notification from the government showed on Friday.
Initially, in June the government lowered the basic customs duty on crude palm oil, crude sunflower oil and crude soyoil from 17.5% to 12.5% till March 2024 as prices were spiraling out of control. This date for the reduced duty to be applicable has now been extended to March 2025.
The basic import duty on refined soyabean oil and refined sunflower oil was reduced from 17.5% to 12.5%.
Notably, the basic import duty is an important factor that impacts the landed cost of edible oils which in turn affects domestic prices. Reduction in import duty will benefit the consumers, as it will help in easing domestic retail prices.
India is the world’s largest importer of edible oil as it meets 60% of its requirement through imports.
The country buys palm oil mainly from Indonesia, Malaysia and Thailand while it imports soybean and sunflower oil from Argentina and Brazil.
According to the latest data released by the government on inflation, the retail inflation rose at its fastest pace in three months in November, largely due to a spike in food prices.
Food inflation, which accounts for nearly half of the overall consumer price basket, was 8.7% in November, against 6.61% reported the previous month. The Statesman
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EU deforestation law a headache for coffee producers
IMPORTERS of coffee to the European Union are starting to scale back purchases from small farmers in Africa and beyond as they prepare for a landmark EU law that will ban the sale of goods linked to the destruction of forests.
Industry sources said the cost and difficulty of complying with the EU Deforestation Regulation (EUDR), which comes into force late next year, meant it was already having unintended impacts that could in time reshape global commodities markets.
Four cited a drying-up of orders in recent months for coffee from Ethiopia, where some five million farming families rely on the crop.
They warned that sourcing strategies being adopted by companies in advance of the law risk increasing small scale farmer poverty and raising prices for EU consumers, while also undermining the EUDR's impact on forest conservation.
"I see no way of buying significant quantities of Ethiopian coffee going forward," said Johannes Dengler, an executive at German roaster Dallmayr, which buys about one per cent of the world's exported coffee.
Because beans he orders now could find their way into coffee products sold in the bloc in 2025, they must be EUDR-compliant, he says, even though implementing acts for the law have yet to be finalised.
Under EUDR, importers of commodities like coffee, cocoa, soy, palm, cattle, timber and rubber — and products that use them — must be able to prove their goods did not originate from deforested land, or face hefty fines.
Coffee major JDE Peets said it might exclude some smaller producing countries from its supply chain as early as March if it hasn't "found and implemented a solution with them" by that date. New Straits Times
Commodities 2024: Palm oil sees global recovery in 2024 on biodiesel demand, stagnant supplies
Palm oil prices are expected to average higher globally in 2024 as a stagnating production in main producers, Indonesia and Malaysia, along with growing demand for its use in making biodiesel will squeeze supplies in the coming year, industry experts said.
In 2024, third-month crude palm oil futures on Malaysia's commodity exchange are expected to average at MR4,000/mt ($856.44/mt), according to the median estimate of 11markets and government agencies polled by S&P Global Commodity Insights.
The benchmark palm oil contract which influences international vegetable oil prices, averaged MR3,798/mt in 2023, down 23% from 2022, and largely in line with S&P Global's price forecast of MR3,800/mt on Jan. 3.
In the physical markets at origins, Platts assessed the average price of Crude Palm Oil FOB Indonesia at $892.2/mt, according to S&P Global data.
Key factors influencing palm oil prices in 2024 include a "wildcard" El Nino, rising biodiesel demand, robust food demand and low production growth, industry experts said at an industry conference in November. SP Global
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Centre extends reduction in customs duty on edible oil imports till 2025
India is the world’s largest importer of edible oil as it meets 60 pc of its requirement through imports.
The Union Government has extended the reduction in customs duty on edible oil imports by a year in order to keep prices in check.
The reduced duty, which was set to end in March 2024, will continue till March 2025, an official notification from the government showed on Friday.
Initially, in June the government lowered the basic customs duty on crude palm oil, crude sunflower oil and crude soyoil from 17.5% to 12.5% till March 2024 as prices were spiraling out of control. This date for the reduced duty to be applicable has now been extended to March 2025.
The basic import duty on refined soyabean oil and refined sunflower oil was reduced from 17.5% to 12.5%.
Notably, the basic import duty is an important factor that impacts the landed cost of edible oils which in turn affects domestic prices. Reduction in import duty will benefit the consumers, as it will help in easing domestic retail prices.
India is the world’s largest importer of edible oil as it meets 60% of its requirement through imports.
The country buys palm oil mainly from Indonesia, Malaysia and Thailand while it imports soybean and sunflower oil from Argentina and Brazil.
According to the latest data released by the government on inflation, the retail inflation rose at its fastest pace in three months in November, largely due to a spike in food prices.
Food inflation, which accounts for nearly half of the overall consumer price basket, was 8.7% in November, against 6.61% reported the previous month. The Statesman
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EU deforestation law a headache for coffee producers
IMPORTERS of coffee to the European Union are starting to scale back purchases from small farmers in Africa and beyond as they prepare for a landmark EU law that will ban the sale of goods linked to the destruction of forests.
Industry sources said the cost and difficulty of complying with the EU Deforestation Regulation (EUDR), which comes into force late next year, meant it was already having unintended impacts that could in time reshape global commodities markets.
Four cited a drying-up of orders in recent months for coffee from Ethiopia, where some five million farming families rely on the crop.
They warned that sourcing strategies being adopted by companies in advance of the law risk increasing small scale farmer poverty and raising prices for EU consumers, while also undermining the EUDR's impact on forest conservation.
"I see no way of buying significant quantities of Ethiopian coffee going forward," said Johannes Dengler, an executive at German roaster Dallmayr, which buys about one per cent of the world's exported coffee.
Because beans he orders now could find their way into coffee products sold in the bloc in 2025, they must be EUDR-compliant, he says, even though implementing acts for the law have yet to be finalised.
Under EUDR, importers of commodities like coffee, cocoa, soy, palm, cattle, timber and rubber — and products that use them — must be able to prove their goods did not originate from deforested land, or face hefty fines.
Coffee major JDE Peets said it might exclude some smaller producing countries from its supply chain as early as March if it hasn't "found and implemented a solution with them" by that date. New Straits Times
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December 22, 2023
Indonesia Slaps Palm Oil Companies with $310.1 Million Fines Over Deforestation
In an unprecedented move, the Indonesian government has declared that it will impose hefty fines, totaling 4.8 trillion rupiah ($310.1 million), on palm oil companies found to be operating within forest areas. This announcement marks a significant step in the country’s efforts to combat illegal deforestation and preserve its rich biodiversity.
Penalties Imposed in the Fight Against Deforestation
The extensive fines come as part of Indonesia’s broader campaign to address the legality of plantations operating within designated forest territories. More than 475 billion rupiah ($30.7 million) in fines have already been imposed, reflecting the government’s steadfast commitment to this cause. The country has identified over 200,000 hectares of oil palm plantations situated in forest areas, signaling a vast violation of environmental norms.
Fines: A Tool for Reforestation and Legal Compliance
The primary objective of these fines is twofold. Firstly, they serve as a deterrent to companies, discouraging them from engaging in illicit activities that contribute to deforestation. Secondly, they aim to facilitate the return of these areas to the state for reforestation efforts, thereby helping to restore the country’s ecological balance.
A Call for Greater Transparency BNN Breaking
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Indonesia to fine palm oil companies $310 mln for operating in forests
Reuters
JAKARTA, Dec 22 (Reuters) - Indonesia said on Friday that it would slap palm oil companies operating within forest areas with fines amounting to a total of 4.8 trillion rupiah ($310.1 million).
More than 475 billion rupiah ($30.7 million) in fines have been issued so far, an official from the ministry of Maritime Affairs and Investment Firman Hidayat told reporters, who did not provide further details or identify the companies fined.
Indonesia said last month it had identified some 200,000 hectares (494,210 acres) of oil palm plantations in areas designated as forests, which are expected to be returned to the state to be converted back into forests.
Indonesia, the world's biggest palm oil producer and exporter, issued rules in 2020 to sort out the legality of plantations operating in areas that are supposed to be forests, aimed at fixing governance in the sector.
Officials said the measures were necessary as some companies have already been tending the land for years.
Companies have to submit paperwork and pay fines to obtain cultivating rights on their plantation by Nov. 2, 2023, according to the rules.
While 3.3 million hectares (8.1 million acres) of the country's nearly 17 million hectares of palm plantation have been found in forests, only owners of plantations with a combined size of 1.67 million hectares have been identified. Reuters
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Behind the Tracks of Shadow Companies
First Resources, the giant palm oil producing company that holds the Roundtable on Sustainable Palm Oil (RSPO) certificate is suspected of having relationships with a number of companies that have a track record of deforestation in Kalimantan. This investigation, led by The Gecko Project, is part of Deforestation Inc, a reporting collaboration coordinated by the International Consortium of Investigative Journalists.
Writer MOH KHOURY ALFARIZI
Chairman of the Greenpeace Indonesia Forest Campaign Team, Arie Rompas, was furious. The reason is that a number of giant palm oil producing companies that hold Roundtable on Sustainable Palm Oil (RSPO) certificates are suspected of being involved in forest destruction in Kalimantan. The company is suspected of covering up its crime tracks by utilizing a number of shadow companies.
These findings were even written about in a Greenpeace report entitled "The Final Countdown: Now or Never to Reform the Palm Oil Industry" five years ago. The report contains a list of findings regarding a number of large palm oil producers who violated the no deforestation, peatland, exploitation (NDPE) commitment. A number of companies are said to have obscured their links to shadow companies that carry out deforestation.
Ironically, to this day this practice continues and the company is untouched and continues to be considered a company that adheres to sustainability commitments. “Disappointed, but not surprised. "Many companies do that," said Arie on Friday, November 24 2023.
The Greenpeace document reveals that several palm oil companies are controlled by a complex conglomeration system owned by individuals and families. This system is often used for dirty reasons. Such as avoiding taxes, avoiding liability for fires or other illegal practices. The aim is to hide their relationship with shadow companies whose activities are destructive or violate NDPE policies. Interaktif Tempo
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Indonesia-Louis Dreyfus to Build Glycerin Refinery in Lampung Next Year
Jakarta. Global agricultural foods merchant Louis Dreyfus Company -- also known as LDC -- is planning to start constructing its glycerin refinery in Lampung in the first quarter of 2024.
The company today is trying to secure the necessary licenses before it can begin the construction work, according to Rajat Dutt, the country head of LDC in Indonesia. Refined glycerin is a key ingredient in pharmaceutical production, thus providing huge business opportunities for LDC.
“We will start the construction [of the Lampung glycerin refining plant] in the first quarter of 2024,” Dutt told a media luncheon in Jakarta on Thursday.
According to Dutt, LDC is currently trying to acquire the necessary licenses before the actual construction work. This includes environment and building-related permits. Dutt, however, refused to give some numbers, including the expected production capacity of the upcoming glycerin refinery plant. Dutt said the refinery was part of the group’s strategy to add more value to its products. The facility will refine the crude glycerin produced by LDC’s biodiesel plant in Lampung. Jakarta Globe
Indonesia Slaps Palm Oil Companies with $310.1 Million Fines Over Deforestation
In an unprecedented move, the Indonesian government has declared that it will impose hefty fines, totaling 4.8 trillion rupiah ($310.1 million), on palm oil companies found to be operating within forest areas. This announcement marks a significant step in the country’s efforts to combat illegal deforestation and preserve its rich biodiversity.
Penalties Imposed in the Fight Against Deforestation
The extensive fines come as part of Indonesia’s broader campaign to address the legality of plantations operating within designated forest territories. More than 475 billion rupiah ($30.7 million) in fines have already been imposed, reflecting the government’s steadfast commitment to this cause. The country has identified over 200,000 hectares of oil palm plantations situated in forest areas, signaling a vast violation of environmental norms.
Fines: A Tool for Reforestation and Legal Compliance
The primary objective of these fines is twofold. Firstly, they serve as a deterrent to companies, discouraging them from engaging in illicit activities that contribute to deforestation. Secondly, they aim to facilitate the return of these areas to the state for reforestation efforts, thereby helping to restore the country’s ecological balance.
A Call for Greater Transparency BNN Breaking
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Indonesia to fine palm oil companies $310 mln for operating in forests
Reuters
JAKARTA, Dec 22 (Reuters) - Indonesia said on Friday that it would slap palm oil companies operating within forest areas with fines amounting to a total of 4.8 trillion rupiah ($310.1 million).
More than 475 billion rupiah ($30.7 million) in fines have been issued so far, an official from the ministry of Maritime Affairs and Investment Firman Hidayat told reporters, who did not provide further details or identify the companies fined.
Indonesia said last month it had identified some 200,000 hectares (494,210 acres) of oil palm plantations in areas designated as forests, which are expected to be returned to the state to be converted back into forests.
Indonesia, the world's biggest palm oil producer and exporter, issued rules in 2020 to sort out the legality of plantations operating in areas that are supposed to be forests, aimed at fixing governance in the sector.
Officials said the measures were necessary as some companies have already been tending the land for years.
Companies have to submit paperwork and pay fines to obtain cultivating rights on their plantation by Nov. 2, 2023, according to the rules.
While 3.3 million hectares (8.1 million acres) of the country's nearly 17 million hectares of palm plantation have been found in forests, only owners of plantations with a combined size of 1.67 million hectares have been identified. Reuters
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Behind the Tracks of Shadow Companies
First Resources, the giant palm oil producing company that holds the Roundtable on Sustainable Palm Oil (RSPO) certificate is suspected of having relationships with a number of companies that have a track record of deforestation in Kalimantan. This investigation, led by The Gecko Project, is part of Deforestation Inc, a reporting collaboration coordinated by the International Consortium of Investigative Journalists.
Writer MOH KHOURY ALFARIZI
Chairman of the Greenpeace Indonesia Forest Campaign Team, Arie Rompas, was furious. The reason is that a number of giant palm oil producing companies that hold Roundtable on Sustainable Palm Oil (RSPO) certificates are suspected of being involved in forest destruction in Kalimantan. The company is suspected of covering up its crime tracks by utilizing a number of shadow companies.
These findings were even written about in a Greenpeace report entitled "The Final Countdown: Now or Never to Reform the Palm Oil Industry" five years ago. The report contains a list of findings regarding a number of large palm oil producers who violated the no deforestation, peatland, exploitation (NDPE) commitment. A number of companies are said to have obscured their links to shadow companies that carry out deforestation.
Ironically, to this day this practice continues and the company is untouched and continues to be considered a company that adheres to sustainability commitments. “Disappointed, but not surprised. "Many companies do that," said Arie on Friday, November 24 2023.
The Greenpeace document reveals that several palm oil companies are controlled by a complex conglomeration system owned by individuals and families. This system is often used for dirty reasons. Such as avoiding taxes, avoiding liability for fires or other illegal practices. The aim is to hide their relationship with shadow companies whose activities are destructive or violate NDPE policies. Interaktif Tempo
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Indonesia-Louis Dreyfus to Build Glycerin Refinery in Lampung Next Year
Jakarta. Global agricultural foods merchant Louis Dreyfus Company -- also known as LDC -- is planning to start constructing its glycerin refinery in Lampung in the first quarter of 2024.
The company today is trying to secure the necessary licenses before it can begin the construction work, according to Rajat Dutt, the country head of LDC in Indonesia. Refined glycerin is a key ingredient in pharmaceutical production, thus providing huge business opportunities for LDC.
“We will start the construction [of the Lampung glycerin refining plant] in the first quarter of 2024,” Dutt told a media luncheon in Jakarta on Thursday.
According to Dutt, LDC is currently trying to acquire the necessary licenses before the actual construction work. This includes environment and building-related permits. Dutt, however, refused to give some numbers, including the expected production capacity of the upcoming glycerin refinery plant. Dutt said the refinery was part of the group’s strategy to add more value to its products. The facility will refine the crude glycerin produced by LDC’s biodiesel plant in Lampung. Jakarta Globe
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December 21, 2023
EU to investigate Chinese biodiesel dumping allegation
PARIS/BEIJING, Dec 20 (Reuters) - The European Union said on Wednesday it would begin an anti-dumping investigation into biodiesel imports from China, which the bloc's industry says has slashed domestic production.
In August, it began investigating whether biodiesel from Indonesia was circumventing EU duties by going through China and Britain. The latest investigation, prompted by a complaint from producer group the European Biodiesel Board (EBB), will cover the period from Oct. 1, 2022 to Sept. 30 2023.
The probe will take up to 14 months, with the possibility of provisional duties being imposed within eight months.
"EU producers have submitted evidence of biodiesel imports from China coming into the EU at artificially low prices and claim that these imports are seriously harming their industry because they cannot compete with such low prices," the European Commission said in a statement.
China has been the biggest biodiesel exporter to the 27-member bloc in 2023, the EBB said in a separate statement. Reuters
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Malaysian Plantation and commodities ministry to strengthen engagement with private sector to enhance productivity
KUALA LUMPUR: The Plantation and Commodities Ministry will increase its engagement with the private sector to further enhance the country's commodity productivity, following concerns about its declining performance.
Its Minister, Datuk Seri Johari Abdul Ghani, stated that several commodities, which previously showed good production performance, have not progressed over time and have been surpassed by neighboring countries.
For example, he mentioned that in 2013, Malaysia produced 20 million metric tons of crude palm oil (CPO), but this year, it has decreased to 18 million metric tons, while Indonesia's production has grown from 19 million to 26 million metric tons in the same period.
Additionally, Malaysia was once the largest producer of natural rubber in the 1970s. New Straits Times
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Godrej Agrovet Champions A Circular Model For Palm Oil Production in India
Godrej Agrovet does exemplary work in palm oil production, using a circularity model to ensure zero waste for landfills. It also encourages sustainable oil palm cultivation, working directly with farmers across six states
Godrej Agrovet (GAVL) is the largest oil palm processor in India. It follows the circularity model of production to ensure zero waste for landfill and energy efficiency. The company also works directly with more than 9,000 farmers for the entire lifecycle of the crop to ensure sustainable cultivation. Godrej Agrovet has helped develop over 75,000 hectares of plantations across Andhra Pradesh, Telangana, Tamil Nadu, Goa, Maharashtra and Mizoram.
India imports 60 per cent of its edible oil requirements and GAVL aims to meet the rising demand through sustainable domestic production using the PPP (public-private partnership) model. Godrej Agrovet’s Oil Palm Plantation (OPP) project procures fresh fruit bunches (FFB) from farmers, which are then processed in mills to produce palm crude and kernel oil. The company owns six oil mills and a range of products including crude palm oil, crude palm kernel oil and palm kernel cake, stearin, olein and palm fatty acid distillate.
Company sources say that all parts of the palm fruits are utilised in some form or the other in the manufacturing process or in developing alternative products. In the process, the common waste and by-products like palm nut shells, empty fruit bunches and palm fibre are used as boiler fuel, making GAVL self-sufficient in energy. The extra by-products are used to make briquettes which are then used in boilers or sold to external parties. Godrej Agrovet ensures that there is no waste for landfills.
The company says that it has been implementing the circularity model in mills since 2017 and ensuring that every part of the palm fruit is utilised to derive maximum value and maintain a circular model of business. It adheres to global standards in best business practices.
Sustainable cultivation Business WorldIN
EU to investigate Chinese biodiesel dumping allegation
PARIS/BEIJING, Dec 20 (Reuters) - The European Union said on Wednesday it would begin an anti-dumping investigation into biodiesel imports from China, which the bloc's industry says has slashed domestic production.
In August, it began investigating whether biodiesel from Indonesia was circumventing EU duties by going through China and Britain. The latest investigation, prompted by a complaint from producer group the European Biodiesel Board (EBB), will cover the period from Oct. 1, 2022 to Sept. 30 2023.
The probe will take up to 14 months, with the possibility of provisional duties being imposed within eight months.
"EU producers have submitted evidence of biodiesel imports from China coming into the EU at artificially low prices and claim that these imports are seriously harming their industry because they cannot compete with such low prices," the European Commission said in a statement.
China has been the biggest biodiesel exporter to the 27-member bloc in 2023, the EBB said in a separate statement. Reuters
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Malaysian Plantation and commodities ministry to strengthen engagement with private sector to enhance productivity
KUALA LUMPUR: The Plantation and Commodities Ministry will increase its engagement with the private sector to further enhance the country's commodity productivity, following concerns about its declining performance.
Its Minister, Datuk Seri Johari Abdul Ghani, stated that several commodities, which previously showed good production performance, have not progressed over time and have been surpassed by neighboring countries.
For example, he mentioned that in 2013, Malaysia produced 20 million metric tons of crude palm oil (CPO), but this year, it has decreased to 18 million metric tons, while Indonesia's production has grown from 19 million to 26 million metric tons in the same period.
Additionally, Malaysia was once the largest producer of natural rubber in the 1970s. New Straits Times
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Godrej Agrovet Champions A Circular Model For Palm Oil Production in India
Godrej Agrovet does exemplary work in palm oil production, using a circularity model to ensure zero waste for landfills. It also encourages sustainable oil palm cultivation, working directly with farmers across six states
Godrej Agrovet (GAVL) is the largest oil palm processor in India. It follows the circularity model of production to ensure zero waste for landfill and energy efficiency. The company also works directly with more than 9,000 farmers for the entire lifecycle of the crop to ensure sustainable cultivation. Godrej Agrovet has helped develop over 75,000 hectares of plantations across Andhra Pradesh, Telangana, Tamil Nadu, Goa, Maharashtra and Mizoram.
India imports 60 per cent of its edible oil requirements and GAVL aims to meet the rising demand through sustainable domestic production using the PPP (public-private partnership) model. Godrej Agrovet’s Oil Palm Plantation (OPP) project procures fresh fruit bunches (FFB) from farmers, which are then processed in mills to produce palm crude and kernel oil. The company owns six oil mills and a range of products including crude palm oil, crude palm kernel oil and palm kernel cake, stearin, olein and palm fatty acid distillate.
Company sources say that all parts of the palm fruits are utilised in some form or the other in the manufacturing process or in developing alternative products. In the process, the common waste and by-products like palm nut shells, empty fruit bunches and palm fibre are used as boiler fuel, making GAVL self-sufficient in energy. The extra by-products are used to make briquettes which are then used in boilers or sold to external parties. Godrej Agrovet ensures that there is no waste for landfills.
The company says that it has been implementing the circularity model in mills since 2017 and ensuring that every part of the palm fruit is utilised to derive maximum value and maintain a circular model of business. It adheres to global standards in best business practices.
Sustainable cultivation Business WorldIN
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December 20, 2023
How EU’s ban on deforestation-linked goods will affect Thailand
The European Union introduced the EU Deforestation Regulation (EUDR) in June 2023 in a bid to combat worldwide deforestation.
This regulation will initially affect seven groups of products, including rubber, palm oil, cattle, timber, coffee, cocoa and soybean, as well as derived products like rubber gloves, paper and wooden furniture.
The regulation mandates rigorous scrutiny and origin reporting for goods to ensure they are not tied to deforestation. Currently, in the transitional phase, the EUDR will be fully implemented on December 30, 2024.
Assessing EUDR’s global implications, Thailand’s Krungsri Research has expressed concerns for importers and exporters worldwide due to its advanced and strict nature.
The EUDR this year covers imports worth US$401.1 billion (14 trillion baht) in 2022, with timber and wood products accounting for 56.3% of total EU imports.
Most affected countries
Germany stands out as a crucial supplier of EUDR goods, featuring among the top five import sources for all goods. Other major exporters include Poland, Italy, the Netherlands, France and Belgium.
The European Union introduced the EU Deforestation Regulation (EUDR) in June 2023 in a bid to combat worldwide deforestation.
This regulation will initially affect seven groups of products, including rubber, palm oil, cattle, timber, coffee, cocoa and soybean, as well as derived products like rubber gloves, paper and wooden furniture.
The regulation mandates rigorous scrutiny and origin reporting for goods to ensure they are not tied to deforestation. Currently, in the transitional phase, the EUDR will be fully implemented on December 30, 2024.
Assessing EUDR’s global implications, Thailand’s Krungsri Research has expressed concerns for importers and exporters worldwide due to its advanced and strict nature.
The EUDR this year covers imports worth US$401.1 billion (14 trillion baht) in 2022, with timber and wood products accounting for 56.3% of total EU imports.
Most affected countries
Germany stands out as a crucial supplier of EUDR goods, featuring among the top five import sources for all goods. Other major exporters include Poland, Italy, the Netherlands, France and Belgium.
While the impact on EU trade is initially expected to be limited, it will likely rise with the expansion of EUDR’s product range.
Impact on Thailand
Although the EUDR does not impose deforestation costs, Thai entrepreneurs may face increased expenses in the form of the Carbon Border Adjustment Mechanism (CBAM).
Notably, this includes costs associated with inspecting and reporting that the manufacturing of products aligns with EU criteria.
The EUDR is expected to affect Thailand in the following ways: Nation Thailand
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EUDR-Shared resources, shared responsibilities?\
Michael Davies-Venn
Deforestation and forest degradation are global problems. Solutions for them must be globally relevant, and that is achieved through cooperation
he European Union Deforestation Regulation (EUDR), which will come into effect in January 2024, is welcome news for global climate change solutions. With the EUDR, the EU aims to halt deforestation and forest degradation worldwide by affecting changes in the supply chains of forest-based commodities and products derived from them. As such, the regulation sets a new standard on goods linked to deforestation for some 800 million Europeans.
Yet, notwithstanding the need and benefits of reducing deforestation and forest degradation, the EUDR exemplifies a fundamental global problem in implementing internationally agreed approaches to redress climate change impacts. Global gains expected from climate mitigation action are possible when solutions are globally coordinated, but the European Commission’s unilateral approach is likely to undermine the net gains expected from the regulation. The regulation also illustrates an urgent fundamental problem in redressing climate change, namely how to effectively, efficiently and sustainably govern global commons resources – such as forests – which also fall under national jurisdictions.
The scale and scope of global deforestation and land degradation are enormous. Within 30 years, the world lost forest land ‘equalling an area larger than the European Union’, much of which was in Africa. Impacts from such wanton loss also affect the rest of the world. This is because forests act as carbon sinks, holding up to 662 gigatonnes, which represents a six gigatonne decrease in carbon stock within five years until 2020. The continuing release of the carbon captured by forests contributes to the extinction of species, including humans. Still, ‘every year, the world continues to lose 10 million hectares of forest’.
A conflict-prone approach
So, surely it is essential to end such senseless destruction and elimination of an ecosystem critical to our existence. For Brussels, the way to do so is to set a European standard on cattle, cocoa, coffee, palm oil, rubber, soya and wood, as well as associated products. The regulation’s Article 3 prohibits those commodities and related products from being exported from and imported to the EU unless three conditions are met; they must be ‘deforestation-free’, they must ‘have been produced in accordance with the relevant legislation of the country of production’, and they must be ‘covered by a due diligence statement’. The Commission will develop a scheme to assess each country as either ‘high risk’ or ‘low risk’ of deforestation to enforce these rules. IPS Journal
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Brazil, China and the EU can work together to accelerate realization of an end to deforestation
By Zhu Chunquan, Head of China Nature Initiatives, World Economic Forum
Deforestation remained at the core stage of the 28th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28), alongside discussions on phasing out fossil fuels, driving renewable energy production and increasing energy efficiency.
It has been two years since 145 countries signed the Glasgow Leaders' Declaration on Forests and Land Use during COP26. However, the outlook for this global vision is not rosy. According to the 2023 Forest Declaration Assessment, global gross deforestation reached 6.6 million hectares worldwide in 2022 and was 21 percent higher than needed to eliminate deforestation by 2030.
The delinking of deforestation and the soft commodity trade is indeed complicated since the vastly different stakeholders along the value chain still harbor varied and sometimes even conflicting understandings of some core issues such as smallholders' livelihoods, food security, trade policies, supply chain resilience and geopolitical tensions, to name a few.
Where is the breakthrough?
Brazil is playing a crucial role in feeding the planet as a major producer of agricultural commodities and a supplier to international markets. More than 50 percent of the world's soybean consumption comes from this country.
The European Union and China are the two most important trade partners for Brazil for the development of its agricultural industry. Exports of products covered by the European Union Deforestation Regulation (EUDR) are estimated to have reached $17.5 billion in 2022. While China imported 54.39 million tonnes of soybeans from Brazil in 2022, and imports from Brazil accounted for more than 50 percent of China's total beef imports.
Seen from this perspective, removing deforestation from the soft commodity trade among China, the EU and Brazil can be a key entry point that could transform the whole sector, stabilize the soft commodity supply chain and reduce deforestation in Brazil. China Daily
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VEGOILS-Palm extends gains after Brazil's decision to raise biodiesel mix
NEW DELHI, Dec 20 (Reuters) - Malaysian palm oil futures rose on Wednesday, a day after Brazil decided to raise its mandatory biodiesel mix into diesel.
The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange gained 20 ringgit or 0.51%, to 3,775 ringgit ($810.61). It had risen 0.3% on Tuesday.
Brazil's energy policy council CNPE on Tuesday decided to raise the country's mandatory biodiesel mix into diesel from early next year, bringing forward previously set blending targets.
The move could cut Brazil's soyoil exports and that would raise the demand for palm oil, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
Prices were supported by the announcement that Argentina would seek to hike export taxes for soybean oil and meal.
Palm oil and soyoil compete for a part of theglobal marketshare. Reuters/ Nasdaq
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Indonesia-Enhancing Palm Oil Competitiveness through ISPO: Scenarios and Recommendations
JAKARTA, Dec 20, 2023 - (ACN Newswire) - The Indonesian palm oil industry, a crucial player in the national economy, grapples with international controversies tied to social, environmental, and land tenurial issues. The Indonesian Sustainable Palm Oil (ISPO) scheme, initiated in 2011, seeks to establish sustainability standards. This article explores challenges faced by ISPO and envisions two scenarios for its future impact.
Challenges and Mandatory Extension
ISPO, initially mandatory for palm oil companies, faces hurdles in its broader adoption. A 2020 regulation extended ISPO certification to all growers, including smallholders, by 2025. Challenges include increased farming costs, especially for smallholders, and barriers like forest land use and agricultural licenses.
Scenario 1: Government Mandate with Price Regulations
In this scenario, the government mandates ISPO as the sole standard for palm oil, compensating for implementation costs through regulations on fresh fruit bunch (FFB) selling prices. While it aims to position palm oil as a premium, sustainable product, challenges like global recognition, buyer interest, and non-ISPO product responses persist. Potential consequences include an emerging illegal market, lower prices for smallholders, and a decline in palm oil market share.
Scenario 2: Voluntary ISPO Program with Incentives
Scenario 2 envisions ISPO as an optional, voluntary program, with the government offering incentives through higher selling prices for labeled products. This approach caters to different buyer preferences, creating two distinct cost structures for ISPO and non-ISPO products. Challenges akin to Scenario 1 persist, impacting the sustainability of this profit-optimizing strategy over time.
Recommendations: Indonesian Palm Oil Plantation Fund Management (BPDPKS)/ JCNewswire
How EU’s ban on deforestation-linked goods will affect Thailand
The European Union introduced the EU Deforestation Regulation (EUDR) in June 2023 in a bid to combat worldwide deforestation.
This regulation will initially affect seven groups of products, including rubber, palm oil, cattle, timber, coffee, cocoa and soybean, as well as derived products like rubber gloves, paper and wooden furniture.
The regulation mandates rigorous scrutiny and origin reporting for goods to ensure they are not tied to deforestation. Currently, in the transitional phase, the EUDR will be fully implemented on December 30, 2024.
Assessing EUDR’s global implications, Thailand’s Krungsri Research has expressed concerns for importers and exporters worldwide due to its advanced and strict nature.
The EUDR this year covers imports worth US$401.1 billion (14 trillion baht) in 2022, with timber and wood products accounting for 56.3% of total EU imports.
Most affected countries
Germany stands out as a crucial supplier of EUDR goods, featuring among the top five import sources for all goods. Other major exporters include Poland, Italy, the Netherlands, France and Belgium.
The European Union introduced the EU Deforestation Regulation (EUDR) in June 2023 in a bid to combat worldwide deforestation.
This regulation will initially affect seven groups of products, including rubber, palm oil, cattle, timber, coffee, cocoa and soybean, as well as derived products like rubber gloves, paper and wooden furniture.
The regulation mandates rigorous scrutiny and origin reporting for goods to ensure they are not tied to deforestation. Currently, in the transitional phase, the EUDR will be fully implemented on December 30, 2024.
Assessing EUDR’s global implications, Thailand’s Krungsri Research has expressed concerns for importers and exporters worldwide due to its advanced and strict nature.
The EUDR this year covers imports worth US$401.1 billion (14 trillion baht) in 2022, with timber and wood products accounting for 56.3% of total EU imports.
Most affected countries
Germany stands out as a crucial supplier of EUDR goods, featuring among the top five import sources for all goods. Other major exporters include Poland, Italy, the Netherlands, France and Belgium.
While the impact on EU trade is initially expected to be limited, it will likely rise with the expansion of EUDR’s product range.
Impact on Thailand
Although the EUDR does not impose deforestation costs, Thai entrepreneurs may face increased expenses in the form of the Carbon Border Adjustment Mechanism (CBAM).
Notably, this includes costs associated with inspecting and reporting that the manufacturing of products aligns with EU criteria.
The EUDR is expected to affect Thailand in the following ways: Nation Thailand
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EUDR-Shared resources, shared responsibilities?\
Michael Davies-Venn
Deforestation and forest degradation are global problems. Solutions for them must be globally relevant, and that is achieved through cooperation
he European Union Deforestation Regulation (EUDR), which will come into effect in January 2024, is welcome news for global climate change solutions. With the EUDR, the EU aims to halt deforestation and forest degradation worldwide by affecting changes in the supply chains of forest-based commodities and products derived from them. As such, the regulation sets a new standard on goods linked to deforestation for some 800 million Europeans.
Yet, notwithstanding the need and benefits of reducing deforestation and forest degradation, the EUDR exemplifies a fundamental global problem in implementing internationally agreed approaches to redress climate change impacts. Global gains expected from climate mitigation action are possible when solutions are globally coordinated, but the European Commission’s unilateral approach is likely to undermine the net gains expected from the regulation. The regulation also illustrates an urgent fundamental problem in redressing climate change, namely how to effectively, efficiently and sustainably govern global commons resources – such as forests – which also fall under national jurisdictions.
The scale and scope of global deforestation and land degradation are enormous. Within 30 years, the world lost forest land ‘equalling an area larger than the European Union’, much of which was in Africa. Impacts from such wanton loss also affect the rest of the world. This is because forests act as carbon sinks, holding up to 662 gigatonnes, which represents a six gigatonne decrease in carbon stock within five years until 2020. The continuing release of the carbon captured by forests contributes to the extinction of species, including humans. Still, ‘every year, the world continues to lose 10 million hectares of forest’.
A conflict-prone approach
So, surely it is essential to end such senseless destruction and elimination of an ecosystem critical to our existence. For Brussels, the way to do so is to set a European standard on cattle, cocoa, coffee, palm oil, rubber, soya and wood, as well as associated products. The regulation’s Article 3 prohibits those commodities and related products from being exported from and imported to the EU unless three conditions are met; they must be ‘deforestation-free’, they must ‘have been produced in accordance with the relevant legislation of the country of production’, and they must be ‘covered by a due diligence statement’. The Commission will develop a scheme to assess each country as either ‘high risk’ or ‘low risk’ of deforestation to enforce these rules. IPS Journal
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Brazil, China and the EU can work together to accelerate realization of an end to deforestation
By Zhu Chunquan, Head of China Nature Initiatives, World Economic Forum
Deforestation remained at the core stage of the 28th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28), alongside discussions on phasing out fossil fuels, driving renewable energy production and increasing energy efficiency.
It has been two years since 145 countries signed the Glasgow Leaders' Declaration on Forests and Land Use during COP26. However, the outlook for this global vision is not rosy. According to the 2023 Forest Declaration Assessment, global gross deforestation reached 6.6 million hectares worldwide in 2022 and was 21 percent higher than needed to eliminate deforestation by 2030.
The delinking of deforestation and the soft commodity trade is indeed complicated since the vastly different stakeholders along the value chain still harbor varied and sometimes even conflicting understandings of some core issues such as smallholders' livelihoods, food security, trade policies, supply chain resilience and geopolitical tensions, to name a few.
Where is the breakthrough?
Brazil is playing a crucial role in feeding the planet as a major producer of agricultural commodities and a supplier to international markets. More than 50 percent of the world's soybean consumption comes from this country.
The European Union and China are the two most important trade partners for Brazil for the development of its agricultural industry. Exports of products covered by the European Union Deforestation Regulation (EUDR) are estimated to have reached $17.5 billion in 2022. While China imported 54.39 million tonnes of soybeans from Brazil in 2022, and imports from Brazil accounted for more than 50 percent of China's total beef imports.
Seen from this perspective, removing deforestation from the soft commodity trade among China, the EU and Brazil can be a key entry point that could transform the whole sector, stabilize the soft commodity supply chain and reduce deforestation in Brazil. China Daily
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VEGOILS-Palm extends gains after Brazil's decision to raise biodiesel mix
NEW DELHI, Dec 20 (Reuters) - Malaysian palm oil futures rose on Wednesday, a day after Brazil decided to raise its mandatory biodiesel mix into diesel.
The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange gained 20 ringgit or 0.51%, to 3,775 ringgit ($810.61). It had risen 0.3% on Tuesday.
Brazil's energy policy council CNPE on Tuesday decided to raise the country's mandatory biodiesel mix into diesel from early next year, bringing forward previously set blending targets.
The move could cut Brazil's soyoil exports and that would raise the demand for palm oil, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
Prices were supported by the announcement that Argentina would seek to hike export taxes for soybean oil and meal.
Palm oil and soyoil compete for a part of theglobal marketshare. Reuters/ Nasdaq
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Indonesia-Enhancing Palm Oil Competitiveness through ISPO: Scenarios and Recommendations
JAKARTA, Dec 20, 2023 - (ACN Newswire) - The Indonesian palm oil industry, a crucial player in the national economy, grapples with international controversies tied to social, environmental, and land tenurial issues. The Indonesian Sustainable Palm Oil (ISPO) scheme, initiated in 2011, seeks to establish sustainability standards. This article explores challenges faced by ISPO and envisions two scenarios for its future impact.
Challenges and Mandatory Extension
ISPO, initially mandatory for palm oil companies, faces hurdles in its broader adoption. A 2020 regulation extended ISPO certification to all growers, including smallholders, by 2025. Challenges include increased farming costs, especially for smallholders, and barriers like forest land use and agricultural licenses.
Scenario 1: Government Mandate with Price Regulations
In this scenario, the government mandates ISPO as the sole standard for palm oil, compensating for implementation costs through regulations on fresh fruit bunch (FFB) selling prices. While it aims to position palm oil as a premium, sustainable product, challenges like global recognition, buyer interest, and non-ISPO product responses persist. Potential consequences include an emerging illegal market, lower prices for smallholders, and a decline in palm oil market share.
Scenario 2: Voluntary ISPO Program with Incentives
Scenario 2 envisions ISPO as an optional, voluntary program, with the government offering incentives through higher selling prices for labeled products. This approach caters to different buyer preferences, creating two distinct cost structures for ISPO and non-ISPO products. Challenges akin to Scenario 1 persist, impacting the sustainability of this profit-optimizing strategy over time.
Recommendations: Indonesian Palm Oil Plantation Fund Management (BPDPKS)/ JCNewswire
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December 19, 2023
Deforestation-free supply chains: Information System pilot testing begins today
Today, the Pilot Testing of the Deforestation Information System begins and will run till the end of January. 100 stakeholders will participate in this testing phase. This includes stakeholders across the relevant commodities, operators of different sizes (including SMEs and non-SMEs) and a geographical balance. The testing period will provide valuable feedback and observations about the system, to ensure it is easy-to-use.
The new Deforestation Regulation will apply to operators and traders who place or make available any of the relevant commodities (cattle, cocoa, coffee, palm oil, rubber, soya and wood) on the EU market, or export from the EU. They must ensure that the products or commodities are deforestation-free, produced in line with the relevant legislation in the country of production, and are covered by a due diligence statement. The Information System aims to facilitate the submission and processing of the Due Diligence Statements for relevant operators, traders, competent authorities and customs to ensure a smooth transition at the end of 2024, when the rules enter into application.
Next steps
The Commission will provide a training environment and “train-the-trainers” sessions to all interested companies in the summer of 2024, in coordination with member states authorities. This will give all interested stakeholders the opportunity to familiarize themselves with the System well before the Regulation enters into application. The Commission will also then make available user manuals and other relevant self-learning material such as video tutorials.
More information will follow in the second quarter of 2024. Stay up to date with the latest developments on the implementation of the Regulation, and next steps as regards the Information System. EUROPA
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Coffee firms turning away from Africa as EU deforestation law looms
By Maytaal Angel and Dewi Kurniawati
Industry sources said the cost and difficulty of complying with the EU Deforestation Regulation (EUDR), which comes into force late in 2024, meant it was already having unintended impacts that could in time reshape global commodities markets.
Four cited a drying-up of orders in recent months for coffee from Ethiopia, where some 5 million farming families rely on the crop. They warned that sourcing strategies being adopted by companies in advance of the law risk increasing small scale farmer poverty and raising prices for EU consumers, while also undermining the EUDR's impact on forest conservation.
"I see no way of buying significant quantities of Ethiopian coffee going forward," said Johannes Dengler, an executive at German roaster Dallmayr, which buys about 1% of the world's exported coffee.
Because beans he orders now could find their way into coffee products sold in the bloc in 2025, they must be EUDR-compliant, he said - even though implementing acts for the law have yet to be finalised.
Under EUDR, importers of commodities like coffee, cocoa, soy, palm, cattle, timber and rubber - and products that use them - must be able to prove their goods did not originate from deforested land, or face hefty fines.
Coffee major JDE Peets (JDEP.AS) said it might be forced to exclude some smaller producing countries from its supply chain as early as March if it hasn't "found and implemented a solution with them" by that date.
Deforestation is the second leading cause of climate change after burning of fossil fuels.
The European Commission said it has several initiatives to help producing countries and smallholders comply with the EUDR, including one launched at COP28 where the EU and member states pledged 70 million euros ($76 million) to that end.
It added that some smallholders see the EUDR as an opportunity, especially if accompanied by EU support measures, as it will help them meet growing global demand for sustainably sourced products. Reuters
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Forest protection groups fear dilution of sustainable palm oil standards as RSPO mulls ‘flexible, modular’ approach
The certification body maintains that its no-deforestation principle will not be watered down in the ongoing standards review, regardless of geographical location. Elements of modularity are already embedded in its existing principles and criteria, it explained.
Twenty years after its inception, the Roundtable on Sustainable Palm Oil (RSPO) has come face to face with a pressing need for change.
New and evolving global regulations for sustainability reporting is requiring members to demonstrate “sustainability beyond certification”, said Joseph D’Cruz, chief executive officer of the world’s most prominent standard-setter and certification body for sustainable palm oil.
“The reality is that markets, regulators and consumers are no longer willing to accept a certificate as full and final proof of sustainability,” D’Cruz told attendees at the RSPO’s annual conference, held at the end of November in Jakarta.
Among new requirements is the European Union’s regulation on deforestation-free products (EUDR), which came into effect in June this year. Although RSPO-certified growers are required to make disclosures similar to those required under the EUDR, there remain technical and fundamental gaps between the certification and the legislation, internal analysis showed. Eco Business
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Assessing the Sustainability of Palm Oil by Expert Interviews—An Application of the Analytic Hierarchy Process
by Oliver Meixner, Sonja Hackl and Rainer Haas
Abstract
Palm oil plays a crucial role in the food industry, industrial applications, and bioenergy, accounting for over one-third of global vegetable oil production. The production area has quadrupled, and the volume is about seven times higher today than in the early 1990s. This significant increase is attributed to several factors, including the oil palm’s notably higher yield per hectare compared to other oilseeds, cost-effectiveness, versatility, and excellent manufacturing characteristics. Despite its economic benefits, industrial palm oil production raises substantial ecological and social concerns, such as deforestation, habitat loss, and labor issues. This study presents a comprehensive sustainability assessment that concurrently considers economic, environmental, and social aspects. Through qualitative expert interviews, various stakeholders in the supply chain evaluated the sustainability criteria of palm oil production and application using the Analytical Hierarchy Process (AHP), a decision support tool helping to analyze, structure, and solve complex decision problems. The results reveal that, on average, the experts consider environmental criteria to be of the highest importance, followed by social sustainability, while economic criteria are of lower significance. However, the approximations regarding the weighting of the criteria showed considerable variations among experts. The AHP priority index for RSPO-certified palm oil is nearly as high as the reference product “EU canola oil”; this observation is consistent with all expert judgments. This study provides an adequate approach to assessing the sustainability of agricultural supply chains, offering practical recommendations for the food industry and policymakers.
Keywords: palm oil; sustainability; sustainability assessment; decision support; analytical hierarchy process; AHP MDPI
Deforestation-free supply chains: Information System pilot testing begins today
Today, the Pilot Testing of the Deforestation Information System begins and will run till the end of January. 100 stakeholders will participate in this testing phase. This includes stakeholders across the relevant commodities, operators of different sizes (including SMEs and non-SMEs) and a geographical balance. The testing period will provide valuable feedback and observations about the system, to ensure it is easy-to-use.
The new Deforestation Regulation will apply to operators and traders who place or make available any of the relevant commodities (cattle, cocoa, coffee, palm oil, rubber, soya and wood) on the EU market, or export from the EU. They must ensure that the products or commodities are deforestation-free, produced in line with the relevant legislation in the country of production, and are covered by a due diligence statement. The Information System aims to facilitate the submission and processing of the Due Diligence Statements for relevant operators, traders, competent authorities and customs to ensure a smooth transition at the end of 2024, when the rules enter into application.
Next steps
The Commission will provide a training environment and “train-the-trainers” sessions to all interested companies in the summer of 2024, in coordination with member states authorities. This will give all interested stakeholders the opportunity to familiarize themselves with the System well before the Regulation enters into application. The Commission will also then make available user manuals and other relevant self-learning material such as video tutorials.
More information will follow in the second quarter of 2024. Stay up to date with the latest developments on the implementation of the Regulation, and next steps as regards the Information System. EUROPA
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Coffee firms turning away from Africa as EU deforestation law looms
By Maytaal Angel and Dewi Kurniawati
- Ethiopian farmers' orders drying up ahead of new law -sources
- Such unintended impacts could in time reshape commodity markets
- Law forces firms to prove their imports don't harm forests
Industry sources said the cost and difficulty of complying with the EU Deforestation Regulation (EUDR), which comes into force late in 2024, meant it was already having unintended impacts that could in time reshape global commodities markets.
Four cited a drying-up of orders in recent months for coffee from Ethiopia, where some 5 million farming families rely on the crop. They warned that sourcing strategies being adopted by companies in advance of the law risk increasing small scale farmer poverty and raising prices for EU consumers, while also undermining the EUDR's impact on forest conservation.
"I see no way of buying significant quantities of Ethiopian coffee going forward," said Johannes Dengler, an executive at German roaster Dallmayr, which buys about 1% of the world's exported coffee.
Because beans he orders now could find their way into coffee products sold in the bloc in 2025, they must be EUDR-compliant, he said - even though implementing acts for the law have yet to be finalised.
Under EUDR, importers of commodities like coffee, cocoa, soy, palm, cattle, timber and rubber - and products that use them - must be able to prove their goods did not originate from deforested land, or face hefty fines.
Coffee major JDE Peets (JDEP.AS) said it might be forced to exclude some smaller producing countries from its supply chain as early as March if it hasn't "found and implemented a solution with them" by that date.
Deforestation is the second leading cause of climate change after burning of fossil fuels.
The European Commission said it has several initiatives to help producing countries and smallholders comply with the EUDR, including one launched at COP28 where the EU and member states pledged 70 million euros ($76 million) to that end.
It added that some smallholders see the EUDR as an opportunity, especially if accompanied by EU support measures, as it will help them meet growing global demand for sustainably sourced products. Reuters
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Forest protection groups fear dilution of sustainable palm oil standards as RSPO mulls ‘flexible, modular’ approach
The certification body maintains that its no-deforestation principle will not be watered down in the ongoing standards review, regardless of geographical location. Elements of modularity are already embedded in its existing principles and criteria, it explained.
Twenty years after its inception, the Roundtable on Sustainable Palm Oil (RSPO) has come face to face with a pressing need for change.
New and evolving global regulations for sustainability reporting is requiring members to demonstrate “sustainability beyond certification”, said Joseph D’Cruz, chief executive officer of the world’s most prominent standard-setter and certification body for sustainable palm oil.
“The reality is that markets, regulators and consumers are no longer willing to accept a certificate as full and final proof of sustainability,” D’Cruz told attendees at the RSPO’s annual conference, held at the end of November in Jakarta.
Among new requirements is the European Union’s regulation on deforestation-free products (EUDR), which came into effect in June this year. Although RSPO-certified growers are required to make disclosures similar to those required under the EUDR, there remain technical and fundamental gaps between the certification and the legislation, internal analysis showed. Eco Business
---------
Assessing the Sustainability of Palm Oil by Expert Interviews—An Application of the Analytic Hierarchy Process
by Oliver Meixner, Sonja Hackl and Rainer Haas
Abstract
Palm oil plays a crucial role in the food industry, industrial applications, and bioenergy, accounting for over one-third of global vegetable oil production. The production area has quadrupled, and the volume is about seven times higher today than in the early 1990s. This significant increase is attributed to several factors, including the oil palm’s notably higher yield per hectare compared to other oilseeds, cost-effectiveness, versatility, and excellent manufacturing characteristics. Despite its economic benefits, industrial palm oil production raises substantial ecological and social concerns, such as deforestation, habitat loss, and labor issues. This study presents a comprehensive sustainability assessment that concurrently considers economic, environmental, and social aspects. Through qualitative expert interviews, various stakeholders in the supply chain evaluated the sustainability criteria of palm oil production and application using the Analytical Hierarchy Process (AHP), a decision support tool helping to analyze, structure, and solve complex decision problems. The results reveal that, on average, the experts consider environmental criteria to be of the highest importance, followed by social sustainability, while economic criteria are of lower significance. However, the approximations regarding the weighting of the criteria showed considerable variations among experts. The AHP priority index for RSPO-certified palm oil is nearly as high as the reference product “EU canola oil”; this observation is consistent with all expert judgments. This study provides an adequate approach to assessing the sustainability of agricultural supply chains, offering practical recommendations for the food industry and policymakers.
Keywords: palm oil; sustainability; sustainability assessment; decision support; analytical hierarchy process; AHP MDPI
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December 18, 2023
Malaysia, Nigeria to close 1.6m tonnes palm oil gap
Malaysian experts are partnering Nigeria stakeholders to increase production of oil palm estimated at 1.4 million metric tonnes (MT) yearly.
This figure is considered low with the nation’s demand for palm oil standing at three million MT.
One of the goals of the team of experts, which consists of Group Managing and founder, Agrinexus, and visiting Professor, University of Calabar, Shermal Perera, is to work with local stakeholders to help the industry close Nigeria’s 1.6 million MTproduction gap.
Nigeria spends N500 billion yearly on imports to fill the deficit in production.
Speaking in Lagos, Perera expressed dismay that the production had failed to meet demand.
He attributed the decline to lack of skilled managers in oil palm plantations and called for measures to be put in place to address the issue and strategies to be formulated to ensure the competitiveness and sustainability of the industry.
According to him, the oil palm plantation sector relies heavily on skilled professionals for maintenance activities.
To this end, he stressed the need for innovations in the mechanisation and automation technologies to fulfill the need of the oil palm plantation sector.
He said his organisation was working with experts to bring into the country the Incorporated Society of Planters (ISP) established in Malaysia to provide knowledge on plantation management and to enhance capability and understanding in the oil palm industry. The NationNG
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New EU regulation spells doom for Ugandan exports
What you need to know:
About 60 per cent of Ugandan coffee goes to the EU in addition to the United States, Sudan and West Africa.
The European Union (EU) has come up with a regulation that will see Ugandan coffee, cotton, cocoa, palm oil and soya grown in forested areas rejected, Monitor has learnt.
This is contained in the EU Deforestation Regulation (EUDR) 2023, released last month, which aims at stopping the rampant deforestation which is impacting negatively on the climate across the globe.
According to the document, between 1990 and 2008, EU consumption was responsible for 10 per cent of deforestation worldwide; therefore, maintaining forests is essential to reducing greenhouse gas emissions and maintaining biodiversity.
The document further states that deforestation is central to EU international commitments, including the United Nations (UN) Convention on Biological Diversity, UN Framework Convention on Climate Change, UN Sustainable Development Goals, New York Declaration of Forests and UN Strategic Plan for Forests.
An official from the Uganda Coffee Development Authority (UCDA) says the regulation states that “no product, be it maize, but specifically now for coffee, will be allowed in the EU unless there is proof that it is deforestation-free and legal.”
“This implies that all coffee that was planted after December 31, 2020 must be proven that that field was not deforested before planting coffee,” noted UCDA Eastern Uganda manager Mike Maliro.
According to Maliro, even if that coffee is included in a particular lot, the EU has mandate to know if it was planted in a deforested area, and it will be rejected. MonitorUG
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US-Push mounts for 2 environmental bills as Hochul weighs veto
Last-minute negotiations are heating up as Gov. Kathy Hochul considers significant changes, or vetoing, two environmental bills Democratic lawmakers widely supported this session.
Lawmakers and advocates rushed to defend, or push back, against proposals this week to reduce New York's impact on global deforestation and ban seeds pretreated with a pesticide that kills bees and other pollinators.
The bills arrived on Hochul's desk Tuesday with a host of other bills, giving the governor until Saturday to make a decision. The legislation will die if no action is taken by then.
But lawmakers who sponsored both measures say if their proposals get the veto pen, the fight won't be over.
"We are in deep negotiations with the governor's staff right now... we are in continued negotiations, and I'm cautiously optimistic," said Sen. Liz Krueger, a Manhattan Democrat who sponsors the deforestation bill. "Obviously, the clock is ticking."
Hochul has taken her time to evaluate the measure to prohibit the state from contracting with companies that use tropical hardwoods that contribute to deforestation, and not allow products like soy, beef, palm oil, coffee, cocoa, paper and others to be sourced from an at-risk area or forest.
The governor made a counterproposal to the legislation this week amid pushback from the state Business Council and operational concerns from the state Office of General Services, but Krueger says their worries are rooted in misconceptions. Spectrum Local News
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Britain needs to use Brexit freedoms to lead the way on palm oil biofuel, says Dan Dalton
The National Insurance cut landed the headlines; the historically-high overall tax burden attracted the flak.
By DAN DALTON - FORMER MEP
As experts pore over the detail of the Chancellor’s Autumn Statement, the coming weeks will reveal the impact for specific businesses, industries and political priorities.
One of the details that deserves more attention is the impact of the Chancellor’s speech on the UK’s Net Zero goals.
Rishi Sunak’s decision earlier this year to delay some of the Net Zero targets was welcomed by many because it allows the government, and British business, to properly plan, invest and develop the technologies needed to navigate the headwinds ahead.
The idea of top-down diktats – deadline dates and quotas – is a pretty Socialist concept; Conservatives prefer to trust the private sector, giving our entrepreneurs the flexibility to deliver the goal in the most efficient and innovative way possible.
Sunak’s decision to be more pragmatic over Net Zero has provided a much-needed break from the turbulence of constant government demands and targets.
The future of aviation, which is a critical part of the UK meeting its Net Zero targets, is a case in point. In the Autumn Statement, £975m was provided by Jeremy Hunt to support UK firms developing low-carbon technology and increasing efficiency and sustainability in aviation.
This follows £685m provided in 2022 as well as ongoing funding for UK small businesses, to encourage their involvement in developing sustainable aviation technologies.
The idea is to free up British capital and innovation, to lead the world in inventing, manufacturing and delivering future technologies that will ‘green’ the world of flying.
However, there is one gap in the government’s thinking that needs to be filled. Fuel.Modern airliners are cleaner and more fuel efficient than ever, but they still rely almost exclusively on burning fossil fuels. Sustainable Aviation Fuels (SAFs) have in the last few years started to become a potentially viable alternative to existing aviation fuels, but they are still nowhere near being adopted en masse by the world’s airlines.
How to make that happen – and how to lead it – is a question being asked by every country with a significant aviation sector.
The EU has moved quickly, setting targets for 70% of aviation fuel to be sustainable by 2050 – but they have also proposed a ban on palm oil and soy, which makes little sense. ExpressUK
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Only B7, B20 diesel to be available in Thailand from May 1
The Energy Business Department will seek Cabinet endorsement for discontinuing the sale of B10 diesel oil, leaving only B7 and B20 oil options available, the department’s chief said.
Nanthika Thangsupanich, the department’s director-general, said the move comes in response to the Energy Policy Committee’s decision on December 13 to simplify diesel oil offerings at petrol stations and ease public confusion.
As of May 1, regulatory changes require B7 diesel to contain between 6.6% and 7% biodiesel, while the B20 diesel must incorporate 19-20% biodiesel, aligning with evolving standards in the industry.
The B in the names of the oil reflects the biodiesel blended with diesel, while the number reflects the percentage. So, B7 stands for 7% biodiesel and B20 20%.
Additionally, the committee affirmed the retention of B20 diesel as an alternative fuel source. Nanthika expressed confidence that terminating the B10 diesel sale should not adversely impact palm oil usage, emphasising its continued necessity for blending the B7 diesel.
Biodiesel is derived from renewable sources like vegetable oils, animal fats and even algae. Currently, daily consumption of biodiesel and palm oil stands at 4.33 million litres and 3.77 million kilograms respectively, she said.
The department expects an uptick in daily consumption of biodiesel and palm oil at 4.66 million litres and 3.88 million kilos, respectively, next year. Nation Thailand
Malaysia, Nigeria to close 1.6m tonnes palm oil gap
Malaysian experts are partnering Nigeria stakeholders to increase production of oil palm estimated at 1.4 million metric tonnes (MT) yearly.
This figure is considered low with the nation’s demand for palm oil standing at three million MT.
One of the goals of the team of experts, which consists of Group Managing and founder, Agrinexus, and visiting Professor, University of Calabar, Shermal Perera, is to work with local stakeholders to help the industry close Nigeria’s 1.6 million MTproduction gap.
Nigeria spends N500 billion yearly on imports to fill the deficit in production.
Speaking in Lagos, Perera expressed dismay that the production had failed to meet demand.
He attributed the decline to lack of skilled managers in oil palm plantations and called for measures to be put in place to address the issue and strategies to be formulated to ensure the competitiveness and sustainability of the industry.
According to him, the oil palm plantation sector relies heavily on skilled professionals for maintenance activities.
To this end, he stressed the need for innovations in the mechanisation and automation technologies to fulfill the need of the oil palm plantation sector.
He said his organisation was working with experts to bring into the country the Incorporated Society of Planters (ISP) established in Malaysia to provide knowledge on plantation management and to enhance capability and understanding in the oil palm industry. The NationNG
---------
New EU regulation spells doom for Ugandan exports
What you need to know:
About 60 per cent of Ugandan coffee goes to the EU in addition to the United States, Sudan and West Africa.
The European Union (EU) has come up with a regulation that will see Ugandan coffee, cotton, cocoa, palm oil and soya grown in forested areas rejected, Monitor has learnt.
This is contained in the EU Deforestation Regulation (EUDR) 2023, released last month, which aims at stopping the rampant deforestation which is impacting negatively on the climate across the globe.
According to the document, between 1990 and 2008, EU consumption was responsible for 10 per cent of deforestation worldwide; therefore, maintaining forests is essential to reducing greenhouse gas emissions and maintaining biodiversity.
The document further states that deforestation is central to EU international commitments, including the United Nations (UN) Convention on Biological Diversity, UN Framework Convention on Climate Change, UN Sustainable Development Goals, New York Declaration of Forests and UN Strategic Plan for Forests.
An official from the Uganda Coffee Development Authority (UCDA) says the regulation states that “no product, be it maize, but specifically now for coffee, will be allowed in the EU unless there is proof that it is deforestation-free and legal.”
“This implies that all coffee that was planted after December 31, 2020 must be proven that that field was not deforested before planting coffee,” noted UCDA Eastern Uganda manager Mike Maliro.
According to Maliro, even if that coffee is included in a particular lot, the EU has mandate to know if it was planted in a deforested area, and it will be rejected. MonitorUG
---------
US-Push mounts for 2 environmental bills as Hochul weighs veto
Last-minute negotiations are heating up as Gov. Kathy Hochul considers significant changes, or vetoing, two environmental bills Democratic lawmakers widely supported this session.
Lawmakers and advocates rushed to defend, or push back, against proposals this week to reduce New York's impact on global deforestation and ban seeds pretreated with a pesticide that kills bees and other pollinators.
The bills arrived on Hochul's desk Tuesday with a host of other bills, giving the governor until Saturday to make a decision. The legislation will die if no action is taken by then.
But lawmakers who sponsored both measures say if their proposals get the veto pen, the fight won't be over.
"We are in deep negotiations with the governor's staff right now... we are in continued negotiations, and I'm cautiously optimistic," said Sen. Liz Krueger, a Manhattan Democrat who sponsors the deforestation bill. "Obviously, the clock is ticking."
Hochul has taken her time to evaluate the measure to prohibit the state from contracting with companies that use tropical hardwoods that contribute to deforestation, and not allow products like soy, beef, palm oil, coffee, cocoa, paper and others to be sourced from an at-risk area or forest.
The governor made a counterproposal to the legislation this week amid pushback from the state Business Council and operational concerns from the state Office of General Services, but Krueger says their worries are rooted in misconceptions. Spectrum Local News
---------
Britain needs to use Brexit freedoms to lead the way on palm oil biofuel, says Dan Dalton
The National Insurance cut landed the headlines; the historically-high overall tax burden attracted the flak.
By DAN DALTON - FORMER MEP
As experts pore over the detail of the Chancellor’s Autumn Statement, the coming weeks will reveal the impact for specific businesses, industries and political priorities.
One of the details that deserves more attention is the impact of the Chancellor’s speech on the UK’s Net Zero goals.
Rishi Sunak’s decision earlier this year to delay some of the Net Zero targets was welcomed by many because it allows the government, and British business, to properly plan, invest and develop the technologies needed to navigate the headwinds ahead.
The idea of top-down diktats – deadline dates and quotas – is a pretty Socialist concept; Conservatives prefer to trust the private sector, giving our entrepreneurs the flexibility to deliver the goal in the most efficient and innovative way possible.
Sunak’s decision to be more pragmatic over Net Zero has provided a much-needed break from the turbulence of constant government demands and targets.
The future of aviation, which is a critical part of the UK meeting its Net Zero targets, is a case in point. In the Autumn Statement, £975m was provided by Jeremy Hunt to support UK firms developing low-carbon technology and increasing efficiency and sustainability in aviation.
This follows £685m provided in 2022 as well as ongoing funding for UK small businesses, to encourage their involvement in developing sustainable aviation technologies.
The idea is to free up British capital and innovation, to lead the world in inventing, manufacturing and delivering future technologies that will ‘green’ the world of flying.
However, there is one gap in the government’s thinking that needs to be filled. Fuel.Modern airliners are cleaner and more fuel efficient than ever, but they still rely almost exclusively on burning fossil fuels. Sustainable Aviation Fuels (SAFs) have in the last few years started to become a potentially viable alternative to existing aviation fuels, but they are still nowhere near being adopted en masse by the world’s airlines.
How to make that happen – and how to lead it – is a question being asked by every country with a significant aviation sector.
The EU has moved quickly, setting targets for 70% of aviation fuel to be sustainable by 2050 – but they have also proposed a ban on palm oil and soy, which makes little sense. ExpressUK
---------
Only B7, B20 diesel to be available in Thailand from May 1
The Energy Business Department will seek Cabinet endorsement for discontinuing the sale of B10 diesel oil, leaving only B7 and B20 oil options available, the department’s chief said.
Nanthika Thangsupanich, the department’s director-general, said the move comes in response to the Energy Policy Committee’s decision on December 13 to simplify diesel oil offerings at petrol stations and ease public confusion.
As of May 1, regulatory changes require B7 diesel to contain between 6.6% and 7% biodiesel, while the B20 diesel must incorporate 19-20% biodiesel, aligning with evolving standards in the industry.
The B in the names of the oil reflects the biodiesel blended with diesel, while the number reflects the percentage. So, B7 stands for 7% biodiesel and B20 20%.
Additionally, the committee affirmed the retention of B20 diesel as an alternative fuel source. Nanthika expressed confidence that terminating the B10 diesel sale should not adversely impact palm oil usage, emphasising its continued necessity for blending the B7 diesel.
Biodiesel is derived from renewable sources like vegetable oils, animal fats and even algae. Currently, daily consumption of biodiesel and palm oil stands at 4.33 million litres and 3.77 million kilograms respectively, she said.
The department expects an uptick in daily consumption of biodiesel and palm oil at 4.66 million litres and 3.88 million kilos, respectively, next year. Nation Thailand
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December 16, 2023
Sime Darby Plantation achieves global milestone as first palm oil firm with validated net-zero targets
KUALA LUMPUR (Dec 15): Sime Darby Plantation Bhd (SDP) has achieved a global milestone as the first palm oil company to have its net-zero targets approved by the Science Based Targets initiative (SBTi).
The validation by the SBTi came a year after SDP first announced its commitment to reach net-zero greenhouse gas (GHG) emissions across its value chain by 2050.
SDP group managing director Datuk Mohamad Helmy Othman Basha said in a statement on Friday that the development would spur the company to achieve its net-zero targets with even more urgency.
“The ongoing initiatives to reduce GHG emissions across our business include collaborative efforts with stakeholders throughout our value chain,” he added.
SDP is also one of the first global firms to have near- and long-term science-based emissions reduction targets emanating from 'forest, land and agriculture' as well as energy and industrial sources approved by the SBTi. The Edge Malaysia
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India Proposes Local Currency Use in Trade with Indonesia
Jakarta. Indian Ambassador to Indonesia Sandeep Chakravorty said Friday that he hoped both economies could trade using rupiahs and rupees.
Trading in national currencies is expected to slash transaction costs as countries can bypass the use of American dollars. It will also likely bring bilateral trade to greater heights.
“A suggestion … is whether we can trade in rupee and rupiah rather than dollars. Substantial amounts of trade is there. There are commodities which we [India] buy from wherever we can. We need coal, crude palm oil, and that provides some kind of basis and sustainability to our trade relations,” Chakravorty said at the Indonesia-India Business Forum conference in Jakarta.
“Trading in rupiah and rupees can lower our transaction costs. Because you do not have to pay for the foreign exchange,” Chakravorty told the conference. Jakarta Globe
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My Say: Making palm oil safe for the planet and your plate: The need to embrace change
By M R Chandran / The Edge Malaysia
This article first appeared in Forum, The Edge Malaysia Weekly on December 11, 2023 - December 17, 2023
This is an abstract of the paper presented by the writer at the International Palm Oil Congress & Exhibition (PIPOC) hosted by the Malaysian Palm Oil Board (MPOB) in Kuala Lumpur in November.
Strategies for ensuring food safety of palm oil should be intrinsically linked to sustainability. One of the most significant issues facing the palm oil industry is the environmental impact of large-scale production.
Oil palm plantations have been linked to deforestation, habitat loss and displacement of indigenous communities. Additionally, the use of pesticides and herbicides can contaminate soil and water, potentially leading to adverse health effects. It is thus essential to consider sustainability strategies when discussing the food safety of palm oil. Examples of sustainability strategies that can be used to improve the food safety of palm oil include: The Edge Malaysia
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Thailand's Fuel sector preps for Euro 5 diesel on Jan 1, 2024
Thailand is gearing up to produce and distribute diesel that meets the Euro 5 environmental emission standard from Jan 1 next year, but the price remains unknown.
More eco-friendly diesel options, including B7 and B20, will be available at petrol stations on May 1, said the Department of Energy Business.
B7 and B20 are biodiesel, which is a mix of diesel and 7% and 20% palm oil-derived methyl ester, respectively.
Oil refineries said earlier Euro 5 diesel will incur an additional cost of 0.5 baht per litre. This prompted the Energy Policy and Planning Office to work on a new diesel price structure.
The government's price subsidy programme, which keeps the retail price of diesel at below 30 baht a litre, is due to expire at the end of December.
Oil refineries and traders told the Department of Energy Business they are ready to produce and sell Euro 5 diesel, said Nanthika Thangsupanich, director-general of the department.
Six oil refineries said they allocated a combined budget of 50 billion baht to upgrade diesel quality, from Euro 4 to Euro 5, over the past several years.
Ms Nanthika said petrol stations will be allowed to sell Euro 4 diesel, which is currently used by motorists, for 3-4 months before it is completely replaced by Euro 5 diesel. Bangkok Post
Sime Darby Plantation achieves global milestone as first palm oil firm with validated net-zero targets
KUALA LUMPUR (Dec 15): Sime Darby Plantation Bhd (SDP) has achieved a global milestone as the first palm oil company to have its net-zero targets approved by the Science Based Targets initiative (SBTi).
The validation by the SBTi came a year after SDP first announced its commitment to reach net-zero greenhouse gas (GHG) emissions across its value chain by 2050.
SDP group managing director Datuk Mohamad Helmy Othman Basha said in a statement on Friday that the development would spur the company to achieve its net-zero targets with even more urgency.
“The ongoing initiatives to reduce GHG emissions across our business include collaborative efforts with stakeholders throughout our value chain,” he added.
SDP is also one of the first global firms to have near- and long-term science-based emissions reduction targets emanating from 'forest, land and agriculture' as well as energy and industrial sources approved by the SBTi. The Edge Malaysia
---------
India Proposes Local Currency Use in Trade with Indonesia
Jakarta. Indian Ambassador to Indonesia Sandeep Chakravorty said Friday that he hoped both economies could trade using rupiahs and rupees.
Trading in national currencies is expected to slash transaction costs as countries can bypass the use of American dollars. It will also likely bring bilateral trade to greater heights.
“A suggestion … is whether we can trade in rupee and rupiah rather than dollars. Substantial amounts of trade is there. There are commodities which we [India] buy from wherever we can. We need coal, crude palm oil, and that provides some kind of basis and sustainability to our trade relations,” Chakravorty said at the Indonesia-India Business Forum conference in Jakarta.
“Trading in rupiah and rupees can lower our transaction costs. Because you do not have to pay for the foreign exchange,” Chakravorty told the conference. Jakarta Globe
---------
My Say: Making palm oil safe for the planet and your plate: The need to embrace change
By M R Chandran / The Edge Malaysia
This article first appeared in Forum, The Edge Malaysia Weekly on December 11, 2023 - December 17, 2023
This is an abstract of the paper presented by the writer at the International Palm Oil Congress & Exhibition (PIPOC) hosted by the Malaysian Palm Oil Board (MPOB) in Kuala Lumpur in November.
Strategies for ensuring food safety of palm oil should be intrinsically linked to sustainability. One of the most significant issues facing the palm oil industry is the environmental impact of large-scale production.
Oil palm plantations have been linked to deforestation, habitat loss and displacement of indigenous communities. Additionally, the use of pesticides and herbicides can contaminate soil and water, potentially leading to adverse health effects. It is thus essential to consider sustainability strategies when discussing the food safety of palm oil. Examples of sustainability strategies that can be used to improve the food safety of palm oil include: The Edge Malaysia
---------
Thailand's Fuel sector preps for Euro 5 diesel on Jan 1, 2024
Thailand is gearing up to produce and distribute diesel that meets the Euro 5 environmental emission standard from Jan 1 next year, but the price remains unknown.
More eco-friendly diesel options, including B7 and B20, will be available at petrol stations on May 1, said the Department of Energy Business.
B7 and B20 are biodiesel, which is a mix of diesel and 7% and 20% palm oil-derived methyl ester, respectively.
Oil refineries said earlier Euro 5 diesel will incur an additional cost of 0.5 baht per litre. This prompted the Energy Policy and Planning Office to work on a new diesel price structure.
The government's price subsidy programme, which keeps the retail price of diesel at below 30 baht a litre, is due to expire at the end of December.
Oil refineries and traders told the Department of Energy Business they are ready to produce and sell Euro 5 diesel, said Nanthika Thangsupanich, director-general of the department.
Six oil refineries said they allocated a combined budget of 50 billion baht to upgrade diesel quality, from Euro 4 to Euro 5, over the past several years.
Ms Nanthika said petrol stations will be allowed to sell Euro 4 diesel, which is currently used by motorists, for 3-4 months before it is completely replaced by Euro 5 diesel. Bangkok Post
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December 15, 2023
Palm Oil Blocked by Europe, Ministry of Trade Explains Strategy to Avoid Being Labeled 'High Risk' (Auto translated from the original version in Bahasa)
JAKARTA, SAWIT INDONESIA – The Ministry of Trade (Kemendag) views that Indonesia needs to act collaboratively towards the European Union Deforestation-free Regulation (EUDR) or the European Union Deforestation-Free Regulation so that Indonesia is not categorized as a country high risk.
For your information, EUDR is a draft regulation owned by the European Union which aims to impose due diligence obligations on 7 agricultural and forestry commodities, including palm oil, coffee, cocoa, rubber, soybeans, livestock and wood.
Trade Investigation and Security Analyst, Main Expert of the Ministry of Trade, Pradnyawati, said that at the international trade level there has been a shift in consumer values, where currently products must meet the requirements of being environmentally friendly and free of violence against animals.
"They really pay attention to consumer rights, ladies and gentlemen, consumer rights are number one. They attribute this to the fact that in developed countries, stomach problems have been resolved, so they have shifted to social, environmental and other problems. "So they demand that cosmetic products, for example food, be free of emissions, free of violence against animals and environmentally friendly," said Pradnyawati in a discussion held by Indef on the theme "CPO: Resetting Indonesia-EU Relations", Thursday (14/12/2023).
He said that if Indonesia rejected the EUDR frontally, in the medium to long term it would be detrimental to Indonesia as a producer or exporter of commodities such as palm oil, chocolate and their derivatives.
"So in my opinion we need to take this first layer, namely collaboratively with Europe first. After that, just look again," he said.
By first accepting the EUDR, according to Pradnyawati, it will also improve the governance of national plantations in palm oil and other commodities. Apart from that, he believes that accepting the EUDR can strengthen our leverage in Indonesia for the next negotiations. He said that one thing that must be fought for in future negotiations with Europe is that blue continent countries can receive Sustainable Palm Oil (ISPO) certificates. Sawit Indonesia
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UK turns over a new leaf as government finally acts on deforestation
The UK government has finally announced its ban on imports linked to illegal deforestation, while our win in the House of Lords earlier this year is paving the way for a new UK deforestation finance law.
With global temperatures rapidly approaching the 1.5C limit, our planet is at a crossroads.
Deforestation and forest degradation contribute to around 11% of global carbon emissions. But global deforestation rates were still rising as of last year, jeopardising the battle to limit climate change.
In the UK, we have been driving the necessary change in two key areas: making sure financial institutions can no longer fund deforesting businesses and pushing for UK commodity imports to be deforestation free. Here’s some of the wins we’ve had over the last year.
Cutting off deforestation finance at the source
The UN has been unequivocal: governments must shut off the financial lifelines keeping deforesting companies alive to reach net zero.
Now, thanks to our campaigning and the efforts of our partners, the UK Treasury are set to embark on a nine-month review to evaluate how to prevent the City of London providing billions of pounds to deforesting businesses each year. Global Witness
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KLK acquires over 90% stake in two Indonesian palm oil companies for RM277m
Kuala Lumpur Kepong Bhd (KLK) and its subsidiary, KLK Plantations and Trading Pte Ltd, are set to acquire over 90% stakes in two Indonesian oil palm companies, PT Satu Sembilan Delapan (SSD) and PT Tekukur Indah (TI), for a total of RM276.55 million.
KLK is acquiring these stakes from Whitmore Holdings Sdn Bhd, a subsidiary of Batu Kawan Bhd.
In a related party transaction, KLK will obtain a 92% stake in SSD for RM264.13 million and a 90% stake in TI for RM12.42 million.
The acquisition aims to streamline and consolidate the plantation estates under KLK, with completion expected in the fourth quarter of 2023, subject to conditions outlined in the sale and purchase agreements.
The funding for the acquisition will come from KLK’s existing cash reserves. –The Malaysian Reserve
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Palm oil industry expected to benefit from Johari Ghani's cabinet appointment
KUALA LUMPUR (Dec 13): Datuk Seri Johari Abdul Ghani’s appointment as Plantation and Commodities Minister following Tuesday’s Cabinet reshuffle is expected to improve the Malaysian agricultural industry’s governance and practices, especially towards the sustainability of the palm oil industry.
Malaysian Palm Oil Board (MPOB) director-general Datuk Dr Ahmad Parveez Ghulam Kadir said Johari is an experienced corporate sector figure and as a former Finance Minister II, he has national administration experience.
“Among the challenges he may face are issues such as the European Union Deforestation Regulation (EUDR), labour shortages, rising costs, low smallholder yields and slow replanting," he told Bernama. The Edge/ Bernama
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EU Agrees on Corporate Rules to Put 'People Before Profits'—But Are They Enough?
While praising "important" new environmental and human rights policies, campaigners also warn about loopholes and shortcomings.
Despite some loopholes, global campaigners on Thursday still celebrated European Union policymakers' agreement to establish rules requiring large corporations to identify and address their negative impacts on human rights and the environment.
Amnesty International policy adviser on business and human rights Hannah Storey said that by striking a deal on the Corporate Sustainability Due Diligence Directive (CSDDD), "the E.U. has sent a strong signal that big business in Europe should no longer ignore negative human rights impacts, wherever they might occur."
"It means people suffering in Nigeria from disastrous oil pollution, or those forced to labor on palm oil plantations in Indonesia, or communities forcibly evicted to make way for cobalt mines in the Democratic Republic of the Congo, may finally have a route to hold large European companies to account for their human rights harms," she stressed. Jessica Corbett/ Common Dreams
Palm Oil Blocked by Europe, Ministry of Trade Explains Strategy to Avoid Being Labeled 'High Risk' (Auto translated from the original version in Bahasa)
JAKARTA, SAWIT INDONESIA – The Ministry of Trade (Kemendag) views that Indonesia needs to act collaboratively towards the European Union Deforestation-free Regulation (EUDR) or the European Union Deforestation-Free Regulation so that Indonesia is not categorized as a country high risk.
For your information, EUDR is a draft regulation owned by the European Union which aims to impose due diligence obligations on 7 agricultural and forestry commodities, including palm oil, coffee, cocoa, rubber, soybeans, livestock and wood.
Trade Investigation and Security Analyst, Main Expert of the Ministry of Trade, Pradnyawati, said that at the international trade level there has been a shift in consumer values, where currently products must meet the requirements of being environmentally friendly and free of violence against animals.
"They really pay attention to consumer rights, ladies and gentlemen, consumer rights are number one. They attribute this to the fact that in developed countries, stomach problems have been resolved, so they have shifted to social, environmental and other problems. "So they demand that cosmetic products, for example food, be free of emissions, free of violence against animals and environmentally friendly," said Pradnyawati in a discussion held by Indef on the theme "CPO: Resetting Indonesia-EU Relations", Thursday (14/12/2023).
He said that if Indonesia rejected the EUDR frontally, in the medium to long term it would be detrimental to Indonesia as a producer or exporter of commodities such as palm oil, chocolate and their derivatives.
"So in my opinion we need to take this first layer, namely collaboratively with Europe first. After that, just look again," he said.
By first accepting the EUDR, according to Pradnyawati, it will also improve the governance of national plantations in palm oil and other commodities. Apart from that, he believes that accepting the EUDR can strengthen our leverage in Indonesia for the next negotiations. He said that one thing that must be fought for in future negotiations with Europe is that blue continent countries can receive Sustainable Palm Oil (ISPO) certificates. Sawit Indonesia
---------
UK turns over a new leaf as government finally acts on deforestation
The UK government has finally announced its ban on imports linked to illegal deforestation, while our win in the House of Lords earlier this year is paving the way for a new UK deforestation finance law.
With global temperatures rapidly approaching the 1.5C limit, our planet is at a crossroads.
Deforestation and forest degradation contribute to around 11% of global carbon emissions. But global deforestation rates were still rising as of last year, jeopardising the battle to limit climate change.
In the UK, we have been driving the necessary change in two key areas: making sure financial institutions can no longer fund deforesting businesses and pushing for UK commodity imports to be deforestation free. Here’s some of the wins we’ve had over the last year.
Cutting off deforestation finance at the source
The UN has been unequivocal: governments must shut off the financial lifelines keeping deforesting companies alive to reach net zero.
Now, thanks to our campaigning and the efforts of our partners, the UK Treasury are set to embark on a nine-month review to evaluate how to prevent the City of London providing billions of pounds to deforesting businesses each year. Global Witness
---------
KLK acquires over 90% stake in two Indonesian palm oil companies for RM277m
Kuala Lumpur Kepong Bhd (KLK) and its subsidiary, KLK Plantations and Trading Pte Ltd, are set to acquire over 90% stakes in two Indonesian oil palm companies, PT Satu Sembilan Delapan (SSD) and PT Tekukur Indah (TI), for a total of RM276.55 million.
KLK is acquiring these stakes from Whitmore Holdings Sdn Bhd, a subsidiary of Batu Kawan Bhd.
In a related party transaction, KLK will obtain a 92% stake in SSD for RM264.13 million and a 90% stake in TI for RM12.42 million.
The acquisition aims to streamline and consolidate the plantation estates under KLK, with completion expected in the fourth quarter of 2023, subject to conditions outlined in the sale and purchase agreements.
The funding for the acquisition will come from KLK’s existing cash reserves. –The Malaysian Reserve
---------
Palm oil industry expected to benefit from Johari Ghani's cabinet appointment
KUALA LUMPUR (Dec 13): Datuk Seri Johari Abdul Ghani’s appointment as Plantation and Commodities Minister following Tuesday’s Cabinet reshuffle is expected to improve the Malaysian agricultural industry’s governance and practices, especially towards the sustainability of the palm oil industry.
Malaysian Palm Oil Board (MPOB) director-general Datuk Dr Ahmad Parveez Ghulam Kadir said Johari is an experienced corporate sector figure and as a former Finance Minister II, he has national administration experience.
“Among the challenges he may face are issues such as the European Union Deforestation Regulation (EUDR), labour shortages, rising costs, low smallholder yields and slow replanting," he told Bernama. The Edge/ Bernama
---------
EU Agrees on Corporate Rules to Put 'People Before Profits'—But Are They Enough?
While praising "important" new environmental and human rights policies, campaigners also warn about loopholes and shortcomings.
Despite some loopholes, global campaigners on Thursday still celebrated European Union policymakers' agreement to establish rules requiring large corporations to identify and address their negative impacts on human rights and the environment.
Amnesty International policy adviser on business and human rights Hannah Storey said that by striking a deal on the Corporate Sustainability Due Diligence Directive (CSDDD), "the E.U. has sent a strong signal that big business in Europe should no longer ignore negative human rights impacts, wherever they might occur."
"It means people suffering in Nigeria from disastrous oil pollution, or those forced to labor on palm oil plantations in Indonesia, or communities forcibly evicted to make way for cobalt mines in the Democratic Republic of the Congo, may finally have a route to hold large European companies to account for their human rights harms," she stressed. Jessica Corbett/ Common Dreams
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December 14, 2023
UK government unveils banned forest-risk goods, excludes coffee
Palm oil, cocoa, beef, leather and soya will be banned from being imported into the UK if they have been produced on illegally deforested land, the UK government has announced.
The legislation is part of the Environment Act, passed two years ago, but last week’s announcement is the first time specific commodities have been named.
The ban covers businesses with a global annual turnover of over £50mn that use over 500 tonnes of regulated commodities a year.
While the new law does not include the financial sector, the Treasury must undertake a nine-month review – as stipulated in this year’s Financial Services and Markets Act – “to assess the extent to which regulation of the UK financial system is adequate for the purpose of eliminating the financing of the use of prohibited forest-risk commodities”.
The UK’s environment secretary, Steve Barclay, says the new rules show the country is “cleaning up supply chains to make sure that big businesses in the UK aren’t responsible for illegal deforestation”.
Firms that do not comply could be hit with a range of civil sanctions, including fixed monetary penalties, stop notices and enforcement undertakings. GTReview
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PRESS RELEASE CSDDD political deal: A pivotal step but a missed opportunity to embrace transformative changeBrussels, December 14th 2023 – The European Coalition for Corporate Justice (ECCJ) welcomes the final political agreement on the Corporate Sustainability Due Diligence Directive (CSDDD), though key opportunities have been missed. It is an important milestone in setting requirements and expectations for corporations to respect Human Rights and the environment; however, the current political deal is not enough to end corporate impunity.
The EU due diligence legislation is a milestone, but the journey to fight against corporate impunity is far from over yet
On Thursday morning, EU co-legislators struck a political agreement on the most contentious questions for EU-wide standards of business conduct to be established by the CSDDD. Under the legislation, large and high-risk multinational corporations will have to address risks to people, communities, and the environment linked to their operations and business relationships. Moreover, victims will be able to hold companies liable before EU courts if they are harmed through the companies’ operations. Corporate Justice
--------
EU: Agreement on new EU legislation governing big business is an important step but fails to fully advance human rights
Reacting to the EU reaching an agreement today on new business human rights legislation called the Corporate Sustainability Due Diligence Directive (CSDDD), Amnesty International’s Policy Advisor on Business and Human Rights, Hannah Storey said:
“By reaching an agreement on this legislation, which requires large companies to identify and address adverse impacts of their business on human rights and the environment, the EU has sent a strong signal that big business in Europe should no longer ignore negative human rights impacts, wherever they might occur.
“It means people suffering in Nigeria from disastrous oil pollution, or those forced to labour on palm oil plantations in Indonesia, or communities forcibly evicted to make way for cobalt mines in the Democratic Republic of the Congo, may finally have a route to hold large European companies to account for their human rights harms.
“This new law sets important human rights requirements for companies – which Amnesty International has long campaigned for – but the EU has failed to go far enough. We know that EU member states have introduced a loophole which means that companies are not required to address all of their human rights harms. Amnesty
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The final political trilogue on CSDDD: A bittersweet moment for corporate justice
With the final political trilogue concluded in the early hours of December 14th, Friends of the Earth Europe acknowledges a new step towards the final adoption of the Corporate Sustainability Due Diligence Directive (CSDDD). Regrettably, key elements like environmental protection, accountability for contributing to the climate crisis and due diligence obligations were dropped in the negotiations.
The conclusion of the years-long negotiations represent an important milestone for the protection of human rights, the environment and the climate. Large and high-risk multinational corporations will have to address risks to people, communities, and the environment linked to their operations and business relationships. Moreover, victims will be able to hold companies liable before EU courts if they are harmed through the companies’ operations.
Today’s deal delivers much-needed access to justice measures for victims of corporate abuse, and in particular allows for increased access to evidence. It also introduces a duty for companies to adopt and put into effect a climate transition plan in line with the 1.5°C targets, with emissions reductions goals based on 5-year increments until 2050.
The deal, however, falls dramatically short in a few areas. Climate due diligence obligations were cut entirely from the directive with the removal of the Paris Agreement from the annex. There are large gaps in the range of environmental damage covered by the scope of the directive. Despite financial actors being subjected to climate transition plan duties, there are no due diligence obligations related to financial services. In addition, citizens will not be able to bring companies to court for not complying with the prevention and mitigation of climate impacts, and much remains uncertain about administrative authorities’ mandate to enforce the implementation of climate transition plans. Friends of the EarthEU
---------
ISPO to Leverage Palm Oil Competitiveness Level?
Jakarta (ANTARA) - The agricultural sector has been playing important role in Indonesian national economics life. One of the promising sectors that has been contributing significantly to national income is palm oil. Along with its robust growth, the development of palm oil invites controversy in the international community pertaining to social, environmental, and lastly land tenurial issues. The growing negative campaign amplifying negative issues has triggered numbers of western countries to boycott palm oil imports. These problems are currently being addressed by the emergence of certified sustainable palm oil from which the indicator is used in Indonesia currently by Indonesian Sustainable Palm Oil (ISPO).
ISPO scheme was first introduced to public in 2011 through the launching of Minister of Agricultural Regulation No. 19 of 2011. This scheme reflected Indonesian government’s commitment in improving the governance of palm oil estate governance to meet the standard of sustainability. In its first years, ISPO is obliged to be followed by all palm oil companies, but the inception of regulation no. 44 of 2020 has mandated to all growers including smallholders to be certified by ISPO at the latest by 2025. As a standard of good palm oil practices, ISPO adopts the concept of sustainable business which delivers mutual benefit to economics, social, and environmental aspects. The Implementation of ISPO is not only for estate activities but broader in palm-oil based downstream industries.
Apart from its noble aim to level up local palm oil quality, implementation of ISPO still encounters problems that potentially discourage producer’s willingness to join. First, according to preceding research in a few local companies found ISPO requires higher standard of farming practice. Growers experienced additional cost in average by 13% which mostly sourced from maintenance and supervising besides the certification and annual surveillance cost by ISPO certification body. That cost increase, until nowadays, has been neither appreciated in the market as a premium product nor compensated in pricing by regulation. Antara
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Malaysia's Palm oil sector to gain from Johari’s Cabinet appointment
Industry bodies are bullish on Johari Ghani’s appointment as plantation and commodities minister.
PETALING JAYA: Palm oil industry players have welcomed Johari Ghani’s appointment as plantation and commodities minister following yesterday’s Cabinet reshuffle and expect him to improve the agricultural sector’s governance and practices.
Malaysian Palm Oil Board (MPOB) director-general Ahmad Parveez Ghulam Kadir said Johari is an experienced corporate figure and as a former finance minister II, he has “national administration experience”.
“Among the challenges he may face are issues such as the European Union Deforestation Regulation (EUDR), labour shortages, rising costs, low smallholder yields, and slow replanting,” he told Bernama.
Ahmad Parveez said smallholder issues need to be addressed by the new minister because they operate individually with limited capacity and need government help.
“With his experience in the corporate sector, Johari may be able to help us strengthen the smallholders so that we can achieve an optimal economic level for them,” he said.
He also said the palm oil industry is facing a labour shortage and insufficient local workers.
“Therefore, we hope his experience can help us in our efforts to use technology such as the mechanisation and automation research consortium of oil palm (MARCOP) which focuses on the latest technology within the fourth industrial revolution (IR 4.0) framework. Free Malaysia Today
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Sime Darby Plantation is World’s First Palm Oil Company with Fully Validated Net-Zero Targets
The world’s first palm oil company to have both its near and long-term net-zero GHG emissions reduction targets approved by the Science Based Targets initiative (SBTi)
Among the first global companies with validated reduction targets for emissions from 'Forest, Land and Agriculture' (FLAG) as well as energy and industrial sources
Petaling Jaya, 14 December 2023 - Sime Darby Plantation Berhad (SDP) has achieved a global milestone as the first palm oil company to have its net-zero targets approved by the Science Based Targets initiative (SBTi)i. The validation by the SBTi came a year after SDP first announced its commitment to reach net-zero greenhouse gas (GHG) emissions across its value chain by 2050.
According to SDP’s Group Managing Director, Datuk Mohamad Helmy Othman Basha, this latest development will spur the company to achieve its net-zero targets with even more urgency.
"The validation of our targets by the SBTi proves our commitment is real, meaningful and most importantly, measurable. The ongoing initiatives to reduce GHG emissions across our business includes collaborative efforts with stakeholders throughout our value chain,” said Mohamad Helmy.
SDP is also one of the first global companies to have both near and long-term science-based emissions reduction targets originating from 'Forest, Land and Agriculture' (FLAG) as well as energy and industrial sources approved by the SBTi. These targets include the reduction from base year 2020 of: Sime Darby Plantation
UK government unveils banned forest-risk goods, excludes coffee
Palm oil, cocoa, beef, leather and soya will be banned from being imported into the UK if they have been produced on illegally deforested land, the UK government has announced.
The legislation is part of the Environment Act, passed two years ago, but last week’s announcement is the first time specific commodities have been named.
The ban covers businesses with a global annual turnover of over £50mn that use over 500 tonnes of regulated commodities a year.
While the new law does not include the financial sector, the Treasury must undertake a nine-month review – as stipulated in this year’s Financial Services and Markets Act – “to assess the extent to which regulation of the UK financial system is adequate for the purpose of eliminating the financing of the use of prohibited forest-risk commodities”.
The UK’s environment secretary, Steve Barclay, says the new rules show the country is “cleaning up supply chains to make sure that big businesses in the UK aren’t responsible for illegal deforestation”.
Firms that do not comply could be hit with a range of civil sanctions, including fixed monetary penalties, stop notices and enforcement undertakings. GTReview
---------
PRESS RELEASE CSDDD political deal: A pivotal step but a missed opportunity to embrace transformative changeBrussels, December 14th 2023 – The European Coalition for Corporate Justice (ECCJ) welcomes the final political agreement on the Corporate Sustainability Due Diligence Directive (CSDDD), though key opportunities have been missed. It is an important milestone in setting requirements and expectations for corporations to respect Human Rights and the environment; however, the current political deal is not enough to end corporate impunity.
The EU due diligence legislation is a milestone, but the journey to fight against corporate impunity is far from over yet
On Thursday morning, EU co-legislators struck a political agreement on the most contentious questions for EU-wide standards of business conduct to be established by the CSDDD. Under the legislation, large and high-risk multinational corporations will have to address risks to people, communities, and the environment linked to their operations and business relationships. Moreover, victims will be able to hold companies liable before EU courts if they are harmed through the companies’ operations. Corporate Justice
--------
EU: Agreement on new EU legislation governing big business is an important step but fails to fully advance human rights
Reacting to the EU reaching an agreement today on new business human rights legislation called the Corporate Sustainability Due Diligence Directive (CSDDD), Amnesty International’s Policy Advisor on Business and Human Rights, Hannah Storey said:
“By reaching an agreement on this legislation, which requires large companies to identify and address adverse impacts of their business on human rights and the environment, the EU has sent a strong signal that big business in Europe should no longer ignore negative human rights impacts, wherever they might occur.
“It means people suffering in Nigeria from disastrous oil pollution, or those forced to labour on palm oil plantations in Indonesia, or communities forcibly evicted to make way for cobalt mines in the Democratic Republic of the Congo, may finally have a route to hold large European companies to account for their human rights harms.
“This new law sets important human rights requirements for companies – which Amnesty International has long campaigned for – but the EU has failed to go far enough. We know that EU member states have introduced a loophole which means that companies are not required to address all of their human rights harms. Amnesty
---------
The final political trilogue on CSDDD: A bittersweet moment for corporate justice
With the final political trilogue concluded in the early hours of December 14th, Friends of the Earth Europe acknowledges a new step towards the final adoption of the Corporate Sustainability Due Diligence Directive (CSDDD). Regrettably, key elements like environmental protection, accountability for contributing to the climate crisis and due diligence obligations were dropped in the negotiations.
The conclusion of the years-long negotiations represent an important milestone for the protection of human rights, the environment and the climate. Large and high-risk multinational corporations will have to address risks to people, communities, and the environment linked to their operations and business relationships. Moreover, victims will be able to hold companies liable before EU courts if they are harmed through the companies’ operations.
Today’s deal delivers much-needed access to justice measures for victims of corporate abuse, and in particular allows for increased access to evidence. It also introduces a duty for companies to adopt and put into effect a climate transition plan in line with the 1.5°C targets, with emissions reductions goals based on 5-year increments until 2050.
The deal, however, falls dramatically short in a few areas. Climate due diligence obligations were cut entirely from the directive with the removal of the Paris Agreement from the annex. There are large gaps in the range of environmental damage covered by the scope of the directive. Despite financial actors being subjected to climate transition plan duties, there are no due diligence obligations related to financial services. In addition, citizens will not be able to bring companies to court for not complying with the prevention and mitigation of climate impacts, and much remains uncertain about administrative authorities’ mandate to enforce the implementation of climate transition plans. Friends of the EarthEU
---------
ISPO to Leverage Palm Oil Competitiveness Level?
Jakarta (ANTARA) - The agricultural sector has been playing important role in Indonesian national economics life. One of the promising sectors that has been contributing significantly to national income is palm oil. Along with its robust growth, the development of palm oil invites controversy in the international community pertaining to social, environmental, and lastly land tenurial issues. The growing negative campaign amplifying negative issues has triggered numbers of western countries to boycott palm oil imports. These problems are currently being addressed by the emergence of certified sustainable palm oil from which the indicator is used in Indonesia currently by Indonesian Sustainable Palm Oil (ISPO).
ISPO scheme was first introduced to public in 2011 through the launching of Minister of Agricultural Regulation No. 19 of 2011. This scheme reflected Indonesian government’s commitment in improving the governance of palm oil estate governance to meet the standard of sustainability. In its first years, ISPO is obliged to be followed by all palm oil companies, but the inception of regulation no. 44 of 2020 has mandated to all growers including smallholders to be certified by ISPO at the latest by 2025. As a standard of good palm oil practices, ISPO adopts the concept of sustainable business which delivers mutual benefit to economics, social, and environmental aspects. The Implementation of ISPO is not only for estate activities but broader in palm-oil based downstream industries.
Apart from its noble aim to level up local palm oil quality, implementation of ISPO still encounters problems that potentially discourage producer’s willingness to join. First, according to preceding research in a few local companies found ISPO requires higher standard of farming practice. Growers experienced additional cost in average by 13% which mostly sourced from maintenance and supervising besides the certification and annual surveillance cost by ISPO certification body. That cost increase, until nowadays, has been neither appreciated in the market as a premium product nor compensated in pricing by regulation. Antara
---------
Malaysia's Palm oil sector to gain from Johari’s Cabinet appointment
Industry bodies are bullish on Johari Ghani’s appointment as plantation and commodities minister.
PETALING JAYA: Palm oil industry players have welcomed Johari Ghani’s appointment as plantation and commodities minister following yesterday’s Cabinet reshuffle and expect him to improve the agricultural sector’s governance and practices.
Malaysian Palm Oil Board (MPOB) director-general Ahmad Parveez Ghulam Kadir said Johari is an experienced corporate figure and as a former finance minister II, he has “national administration experience”.
“Among the challenges he may face are issues such as the European Union Deforestation Regulation (EUDR), labour shortages, rising costs, low smallholder yields, and slow replanting,” he told Bernama.
Ahmad Parveez said smallholder issues need to be addressed by the new minister because they operate individually with limited capacity and need government help.
“With his experience in the corporate sector, Johari may be able to help us strengthen the smallholders so that we can achieve an optimal economic level for them,” he said.
He also said the palm oil industry is facing a labour shortage and insufficient local workers.
“Therefore, we hope his experience can help us in our efforts to use technology such as the mechanisation and automation research consortium of oil palm (MARCOP) which focuses on the latest technology within the fourth industrial revolution (IR 4.0) framework. Free Malaysia Today
---------
Sime Darby Plantation is World’s First Palm Oil Company with Fully Validated Net-Zero Targets
The world’s first palm oil company to have both its near and long-term net-zero GHG emissions reduction targets approved by the Science Based Targets initiative (SBTi)
Among the first global companies with validated reduction targets for emissions from 'Forest, Land and Agriculture' (FLAG) as well as energy and industrial sources
Petaling Jaya, 14 December 2023 - Sime Darby Plantation Berhad (SDP) has achieved a global milestone as the first palm oil company to have its net-zero targets approved by the Science Based Targets initiative (SBTi)i. The validation by the SBTi came a year after SDP first announced its commitment to reach net-zero greenhouse gas (GHG) emissions across its value chain by 2050.
According to SDP’s Group Managing Director, Datuk Mohamad Helmy Othman Basha, this latest development will spur the company to achieve its net-zero targets with even more urgency.
"The validation of our targets by the SBTi proves our commitment is real, meaningful and most importantly, measurable. The ongoing initiatives to reduce GHG emissions across our business includes collaborative efforts with stakeholders throughout our value chain,” said Mohamad Helmy.
SDP is also one of the first global companies to have both near and long-term science-based emissions reduction targets originating from 'Forest, Land and Agriculture' (FLAG) as well as energy and industrial sources approved by the SBTi. These targets include the reduction from base year 2020 of: Sime Darby Plantation
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December 13, 2023
CPOPC urges palm oil producing countries facing EUDR to remain calm, stay optimistic in 2024
KUALA LUMPUR (Dec 13): Palm oil producing countries should remain calm and optimistic next year, and not get nervous about facing the European Union Deforestation Regulation (EUDR) that will be enforced in 2025, said the Council of Palm Oil Producing Countries (CPOPC).
Its secretary general Dr Rizal Affandi Lukman said the council stands ready in communicating all of the preparation under the joint task force which focuses on five work streams, namely ensuring the inclusion of smallholders in the supply chain, recognition of the national certification schemes (Malaysian Sustainable Palm Oil and Indonesian Sustainable Palm Oil), establishment of traceability tools, country benchmarking, and protection of privacy data.
“We don’t have to be nervous in approaching this because under the joint task force, the CPOPC stands ready in communicating all this preparation.
“So just be confident that we can pass through all the preparation smoothly next year once the EUDR is implemented,” he told the media after presenting a round-table discussion titled "How CPOPC views the Challenges and Opportunities of Palm Oil Industry in 2024" at the Royale Chulan hotel here on Tuesday. The Edge Markets/ Bernama
CPOPC urges palm oil producing countries facing EUDR to remain calm, stay optimistic in 2024
KUALA LUMPUR (Dec 13): Palm oil producing countries should remain calm and optimistic next year, and not get nervous about facing the European Union Deforestation Regulation (EUDR) that will be enforced in 2025, said the Council of Palm Oil Producing Countries (CPOPC).
Its secretary general Dr Rizal Affandi Lukman said the council stands ready in communicating all of the preparation under the joint task force which focuses on five work streams, namely ensuring the inclusion of smallholders in the supply chain, recognition of the national certification schemes (Malaysian Sustainable Palm Oil and Indonesian Sustainable Palm Oil), establishment of traceability tools, country benchmarking, and protection of privacy data.
“We don’t have to be nervous in approaching this because under the joint task force, the CPOPC stands ready in communicating all this preparation.
“So just be confident that we can pass through all the preparation smoothly next year once the EUDR is implemented,” he told the media after presenting a round-table discussion titled "How CPOPC views the Challenges and Opportunities of Palm Oil Industry in 2024" at the Royale Chulan hotel here on Tuesday. The Edge Markets/ Bernama
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December 12, 2023
COP28: EU steps up cooperation with partner countries on deforestation-free supply chains and outlines further support measures
At the COP28 UN Climate Change Conference in Dubai, the European Commission is continuing efforts with partner countries to ensure a successful transition to deforestation-free supply chains. The global fight against deforestation and forest degradation is crucial to achieve global commitments to address climate change and biodiversity loss. The new EU law on deforestation – starting to apply on 30 December 2024 – is an important turning point in this endeavour. The EU outlined a number of new measures and tools aimed to support partner countries and companies.
Launch of the EU Observatory on deforestation and forest degradation
The EU observatory on deforestation and forest degradation is now up and running, providing maps and datasets on changes in the world’s forest cover and associated drivers. The observatory is structured around the main components: global forest monitoring and production and trade of commodities. It builds on existing monitoring tools (such as Copernicus and other publicly or privately available sources) and will facilitate access to free information on supply chains for businesses, public entities and consumers. EnvironmentECEuropa
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Getting ready for the EUDR: Guidance and legal clarity are needed
With the EU Deforestation Regulation (EUDR) entering into application on 30 December 2024, supply chain actors are doing their utmost to be ready to comply with the requirements of the regulation. However, time is running out fast and many practical implementation questions and legal uncertainties are awaiting necessary clarification.
We urge the Commission and Member States to provide legal clarity for companies and producers to be able to work out solutions that are in line with the EUDR requirements and avoid excessive disruptions in the functioning of commodity supply chains. Euractiv
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EU due diligence could leave companies between a rock and a hard place
Decisive political negotiations on the EU’s Corporate Sustainability Due Diligence Directive start tomorrow
12 December 2023 - With EU co-legislators intending to close a deal on the Corporate Sustainability and Due Diligence Directive, BusinessEurope Director General Markus J. Beyrer said:
"We are still far from the workable and clear rules which EU businesses need to properly apply due diligence across their value chains, leaving companies between a rock and a hard place.
Once risks have been identified, companies will be obliged to terminate contracts with partners in value chains which diverts from UN principles and will be damaging for local communities in third countries. The solution to draw a list of reasonable exceptions would clearly be preferable.
The level of detail in the information European companies will have to require from their suppliers is not clear. This obligation can conflict with existing legislation in some third countries, like China. Companies could be subject to penalties and possibly criminally liable when conducting due diligence there. As a result, many businesses would be forced to withdraw from these key markets. This would jeopardise not only our competitiveness, but also Europe’s ability to access critical materials for our green transition and to address security concerns.
As it stands now, the EU will end up with 27 not 1 framework on due diligence leaving companies and authorities guessing which rules will apply in each situation."
BusinessEurope calls on EU legislators to: Business Europe
COP28: EU steps up cooperation with partner countries on deforestation-free supply chains and outlines further support measures
At the COP28 UN Climate Change Conference in Dubai, the European Commission is continuing efforts with partner countries to ensure a successful transition to deforestation-free supply chains. The global fight against deforestation and forest degradation is crucial to achieve global commitments to address climate change and biodiversity loss. The new EU law on deforestation – starting to apply on 30 December 2024 – is an important turning point in this endeavour. The EU outlined a number of new measures and tools aimed to support partner countries and companies.
Launch of the EU Observatory on deforestation and forest degradation
The EU observatory on deforestation and forest degradation is now up and running, providing maps and datasets on changes in the world’s forest cover and associated drivers. The observatory is structured around the main components: global forest monitoring and production and trade of commodities. It builds on existing monitoring tools (such as Copernicus and other publicly or privately available sources) and will facilitate access to free information on supply chains for businesses, public entities and consumers. EnvironmentECEuropa
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Getting ready for the EUDR: Guidance and legal clarity are needed
With the EU Deforestation Regulation (EUDR) entering into application on 30 December 2024, supply chain actors are doing their utmost to be ready to comply with the requirements of the regulation. However, time is running out fast and many practical implementation questions and legal uncertainties are awaiting necessary clarification.
We urge the Commission and Member States to provide legal clarity for companies and producers to be able to work out solutions that are in line with the EUDR requirements and avoid excessive disruptions in the functioning of commodity supply chains. Euractiv
---------
EU due diligence could leave companies between a rock and a hard place
Decisive political negotiations on the EU’s Corporate Sustainability Due Diligence Directive start tomorrow
12 December 2023 - With EU co-legislators intending to close a deal on the Corporate Sustainability and Due Diligence Directive, BusinessEurope Director General Markus J. Beyrer said:
"We are still far from the workable and clear rules which EU businesses need to properly apply due diligence across their value chains, leaving companies between a rock and a hard place.
Once risks have been identified, companies will be obliged to terminate contracts with partners in value chains which diverts from UN principles and will be damaging for local communities in third countries. The solution to draw a list of reasonable exceptions would clearly be preferable.
The level of detail in the information European companies will have to require from their suppliers is not clear. This obligation can conflict with existing legislation in some third countries, like China. Companies could be subject to penalties and possibly criminally liable when conducting due diligence there. As a result, many businesses would be forced to withdraw from these key markets. This would jeopardise not only our competitiveness, but also Europe’s ability to access critical materials for our green transition and to address security concerns.
As it stands now, the EU will end up with 27 not 1 framework on due diligence leaving companies and authorities guessing which rules will apply in each situation."
BusinessEurope calls on EU legislators to: Business Europe
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December 11, 2023
Papua New Guinea will not be 'reckless' with China loans: PM
Sydney (AFP) – Papua New Guinea's prime minister has promised to tread carefully with Belt and Road funding from China, telling AFP on Monday he would not be "reckless" with foreign loans.
China and the United States have been jockeying for influence in the South Pacific state, which sits atop bulging deposits of gas and minerals and peers over key shipping lanes.
Papua New Guinea was in 2018 one of the first Pacific nations to join China's Belt and Road programme, which has funded thousands of major infrastructure projects across the globe.
But it has grown closer to the United States since Prime Minister James Marape took power in 2019 -- culminating in a landmark defence pact struck with Washington earlier this year.
Sitting down with AFP on the sidelines of an energy conference in Sydney, Marape stressed that Papua New Guinea would not blindly accept loans offered by China. France24
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China's Dec UCO price falls to more than 2-year low on demand slump, EU probe
China's used cooking oil price in December fell to more than a two-year low since March 2021 as lackluster demand from Europe and an ongoing probe into Chinese imports to the EU dented sentiment, trade sources said.
The Platts-assessed China UCO declined by more than 50% this month from an 18-month high of $1,627/mt FOB China seen in June 2022 to $791/mt FOB China, S&P Global Commodity Insights data showed. Platts first began assessing FOB China UCO in January 2021.
The last time Platts assessed FOB China UCO lower was at $736.77/mt during the COVID-19 pandemic in early March 2021, with no restaurant dining and limited global travel.
Further adding to the downturn in UCO prices this year was the weakness in Europe's biodiesel market in March as sources in Europe cited a bearish diesel market, poor spot demand, and feedstock oversupply.
"It doesn't help UCO suppliers that European winter is slowing demand in a big way," a trader said. SP Global
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Sweden Wants to Import More Indonesian Goods: Envoy
Jakarta. Swedish Ambassador to Indonesia Daniel Blockert recently said that Stockholm would like to import more goods from Jakarta.
Indonesia mainly exports goods such as palm oil and leather footwear to Sweden, according to the Observatory of Economic Complexity (OEC). Trade Ministry data shows that Indonesia is importing more than it exports to Sweden, putting Jakarta in a constant deficit worth hundreds of millions of American dollars over the past few years.
“We want to increase Indonesian exports to Sweden as well. It should go in both directions,” Blockert told the Jakarta Globe on the sidelines of the recent 2023 Sweden-Indonesia Sustainability Partnership conference in Jakarta.
“We are already importing quite a lot of agricultural products [from Indonesia]. I think there is potential to widen that and make it more beneficial for both parties,” Blockert said.
The OEC reported that palm oil became Indonesia’s top export to Sweden in 2021. Indonesia’s palm oil exports were worth $58.9 million that year. Followed by leather footwear ($16.3 million) and seats ($12.5 million). The OEC data puts delivery trucks ($49.5 million), dissolving grades of chemical wood pulp ($46.7 million), and steam turbines ($28.6 million) as Indonesia’s largest Swedish imported goods that year. Jakarta Globe
Papua New Guinea will not be 'reckless' with China loans: PM
Sydney (AFP) – Papua New Guinea's prime minister has promised to tread carefully with Belt and Road funding from China, telling AFP on Monday he would not be "reckless" with foreign loans.
China and the United States have been jockeying for influence in the South Pacific state, which sits atop bulging deposits of gas and minerals and peers over key shipping lanes.
Papua New Guinea was in 2018 one of the first Pacific nations to join China's Belt and Road programme, which has funded thousands of major infrastructure projects across the globe.
But it has grown closer to the United States since Prime Minister James Marape took power in 2019 -- culminating in a landmark defence pact struck with Washington earlier this year.
Sitting down with AFP on the sidelines of an energy conference in Sydney, Marape stressed that Papua New Guinea would not blindly accept loans offered by China. France24
----------
China's Dec UCO price falls to more than 2-year low on demand slump, EU probe
China's used cooking oil price in December fell to more than a two-year low since March 2021 as lackluster demand from Europe and an ongoing probe into Chinese imports to the EU dented sentiment, trade sources said.
The Platts-assessed China UCO declined by more than 50% this month from an 18-month high of $1,627/mt FOB China seen in June 2022 to $791/mt FOB China, S&P Global Commodity Insights data showed. Platts first began assessing FOB China UCO in January 2021.
The last time Platts assessed FOB China UCO lower was at $736.77/mt during the COVID-19 pandemic in early March 2021, with no restaurant dining and limited global travel.
Further adding to the downturn in UCO prices this year was the weakness in Europe's biodiesel market in March as sources in Europe cited a bearish diesel market, poor spot demand, and feedstock oversupply.
"It doesn't help UCO suppliers that European winter is slowing demand in a big way," a trader said. SP Global
---------
Sweden Wants to Import More Indonesian Goods: Envoy
Jakarta. Swedish Ambassador to Indonesia Daniel Blockert recently said that Stockholm would like to import more goods from Jakarta.
Indonesia mainly exports goods such as palm oil and leather footwear to Sweden, according to the Observatory of Economic Complexity (OEC). Trade Ministry data shows that Indonesia is importing more than it exports to Sweden, putting Jakarta in a constant deficit worth hundreds of millions of American dollars over the past few years.
“We want to increase Indonesian exports to Sweden as well. It should go in both directions,” Blockert told the Jakarta Globe on the sidelines of the recent 2023 Sweden-Indonesia Sustainability Partnership conference in Jakarta.
“We are already importing quite a lot of agricultural products [from Indonesia]. I think there is potential to widen that and make it more beneficial for both parties,” Blockert said.
The OEC reported that palm oil became Indonesia’s top export to Sweden in 2021. Indonesia’s palm oil exports were worth $58.9 million that year. Followed by leather footwear ($16.3 million) and seats ($12.5 million). The OEC data puts delivery trucks ($49.5 million), dissolving grades of chemical wood pulp ($46.7 million), and steam turbines ($28.6 million) as Indonesia’s largest Swedish imported goods that year. Jakarta Globe
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December 09, 2023
Supermarket essentials will no longer be linked to illegal deforestation
Orangutans, leopards, jaguars and other endangered species protected with new legislation to safeguard forests
Palm oil, cocoa, beef, leather and soy are to be included in new legislation aimed at helping ensure the products we buy do not harm the world’s forests.
At COP28 Nature Day (9 December), the government will set out how these new laws will ensure that there is no place on our supermarket shelves for products which have been produced on land linked to illegal deforestation.
This move will protect the habitats of some of the world’s most precious and endangered species, including tigers and leopards. It will give British shoppers assurance that the goods they buy are not contributing to deforestation that violates the laws and regulations of the countries where they come from.
The biggest driver of deforestation is agricultural expansion, with an area the size of the UK ploughed up each year to meet UK demand for commodities.
It is a huge threat to rainforests, effectively the “lungs of the earth” because of their ability to absorb harmful gasses and provide a home to thousands of animal and plant species.
The legislation marks a step change from voluntary approaches already in place, protecting the future of the world’s forests that we need to help tackle climate change, and their wildlife-rich canopies. GOV UK
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EU observatory covering deforestation and forest degradation worldwide goes live
Today, the JRC-managed observatory on deforestation and forest degradation goes online – it will help protect and restore world’s forests and ensure that Europeans consume deforestation-free products
When tasting chocolate, have you ever thought part of a forest might have been cut to make space for the cocoa needed to make the delicious tablet?
In fact, half of the cocoa produced worldwide is imported into Europe. However, it is not straightforward to trace back the cocoa production for the chocolate we eat. The JRC has used 30 years of expertise in geospatial technologies to provide a global map of the extent of forests in 2020, to be used in a new observatory on deforestation.
The EU observatory on deforestation and forest degradation is now up and running, making its maps and datasets on changes in the world’s forest cover and associated drivers publicly available. It will support the EU’s new rules on deforestation-free products, laid down to guarantee that the products placed on the EU market or exported from it do not originate from deforested land or have not contributed to forest degradation.
In addition, the new rules aim to reduce carbon emissions and biodiversity loss caused by EU consumption and production of a series of commodities, and to address deforestation and degradation resulting from agricultural expansion to produce them. As a major economy and consumer of commodities such as soy, beef, palm oil, wood, cocoa, coffee, and rubber, as well as some of their derived products, such as leather, chocolate, tyres, or furniture, the EU is taking action to curb the EU market's impact on global deforestation and forest degradation. EUROPA EU
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Global Gateway: EU and Member States launch global Team Europe Initiative on Deforestation-free Value Chains
Today, during the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28), Commissioner Virginijus Sinkevičius together with high-level representatives of Germany, the Netherlands and France, launched a global Team Europe Initiative (TEI) on Deforestation-free Value Chains. This strategic initiative marks a significant step in the EU and Member States’ commitment to foster inclusive partnerships with producing countries. The initiative will help address deforestation on a global scale and support the commitments outlined in the Glasgow Leader’s Declaration on Forests and Land Use from COP26 to halt and reverse forest loss and land degradation by 2030.
Aligned with the EU’s Global Gateway strategy, the new Team Europe Initiative is designed to halt deforestation and support partner countries in successfully transitioning to sustainable, deforestation-free, and legal value chains.
The EU and its Member States announced an initial package of €70 million in new funding for the implementation of this Team Europe Initiative, complementing a broad portfolio of ongoing programmes from the EU and its Member States on forests and halting deforestation.
At the launch of this Team Europe Initiative, Commissioner Virginijus Sinkevičius said: “The world is losing forests at a dizzying speed, bringing us close to a tipping point. Losing forests means losing biodiversity, putting the global water cycle at risk and fuelling climate change. EU consumption can no longer add fuel to this fire. That’s why we’re working with partner countries to implement the new law on deforestation-free products. This new Team Europe initiative will bring us all closer to achieving our shared goal of halting and reversing deforestation worldwide.” EUROPA
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US Congress Reintroduces Bill to Restrict Imports Linked to Illegal Deforestation
On December 1, 2023, members of the US House of Representatives and Senate introduced a bill that would prohibit the import of products made from commodities produced on illegally deforested land. The bill, the "Fostering Overseas Rule of Law and Environmentally Sound Trade Act of 6 2023" ("FOREST Act of 2023"),1 would require importers of certain specified products identified as being at high-risk for contributing to illegal deforestation to certify they have mitigated the risks that their product was produced on land that has been subjected to illegal deforestation. Targeted products include palm oil, soybeans, cocoa, cattle, and rubber. Importers would face stricter supply chain due diligence and disclosure requirements if any covered input in the product originates from countries designated as insufficiently enforcing deforestation laws. US Customs and Border Protection ("CBP") would deny entry to any import that cannot meet the applicable certification requirement, presuming the product to have been produced wholly or in part on illegally deforested land. The bill would also expand enforcement of US money laundering laws to target the proceeds of illegal deforestation, create a new technical assistance program to help countries enforce forestry laws, and establish a new government procurement preference for goods not linked to deforestation. White and Case
Supermarket essentials will no longer be linked to illegal deforestation
Orangutans, leopards, jaguars and other endangered species protected with new legislation to safeguard forests
Palm oil, cocoa, beef, leather and soy are to be included in new legislation aimed at helping ensure the products we buy do not harm the world’s forests.
At COP28 Nature Day (9 December), the government will set out how these new laws will ensure that there is no place on our supermarket shelves for products which have been produced on land linked to illegal deforestation.
This move will protect the habitats of some of the world’s most precious and endangered species, including tigers and leopards. It will give British shoppers assurance that the goods they buy are not contributing to deforestation that violates the laws and regulations of the countries where they come from.
The biggest driver of deforestation is agricultural expansion, with an area the size of the UK ploughed up each year to meet UK demand for commodities.
It is a huge threat to rainforests, effectively the “lungs of the earth” because of their ability to absorb harmful gasses and provide a home to thousands of animal and plant species.
The legislation marks a step change from voluntary approaches already in place, protecting the future of the world’s forests that we need to help tackle climate change, and their wildlife-rich canopies. GOV UK
---------
EU observatory covering deforestation and forest degradation worldwide goes live
Today, the JRC-managed observatory on deforestation and forest degradation goes online – it will help protect and restore world’s forests and ensure that Europeans consume deforestation-free products
When tasting chocolate, have you ever thought part of a forest might have been cut to make space for the cocoa needed to make the delicious tablet?
In fact, half of the cocoa produced worldwide is imported into Europe. However, it is not straightforward to trace back the cocoa production for the chocolate we eat. The JRC has used 30 years of expertise in geospatial technologies to provide a global map of the extent of forests in 2020, to be used in a new observatory on deforestation.
The EU observatory on deforestation and forest degradation is now up and running, making its maps and datasets on changes in the world’s forest cover and associated drivers publicly available. It will support the EU’s new rules on deforestation-free products, laid down to guarantee that the products placed on the EU market or exported from it do not originate from deforested land or have not contributed to forest degradation.
In addition, the new rules aim to reduce carbon emissions and biodiversity loss caused by EU consumption and production of a series of commodities, and to address deforestation and degradation resulting from agricultural expansion to produce them. As a major economy and consumer of commodities such as soy, beef, palm oil, wood, cocoa, coffee, and rubber, as well as some of their derived products, such as leather, chocolate, tyres, or furniture, the EU is taking action to curb the EU market's impact on global deforestation and forest degradation. EUROPA EU
---------
Global Gateway: EU and Member States launch global Team Europe Initiative on Deforestation-free Value Chains
Today, during the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28), Commissioner Virginijus Sinkevičius together with high-level representatives of Germany, the Netherlands and France, launched a global Team Europe Initiative (TEI) on Deforestation-free Value Chains. This strategic initiative marks a significant step in the EU and Member States’ commitment to foster inclusive partnerships with producing countries. The initiative will help address deforestation on a global scale and support the commitments outlined in the Glasgow Leader’s Declaration on Forests and Land Use from COP26 to halt and reverse forest loss and land degradation by 2030.
Aligned with the EU’s Global Gateway strategy, the new Team Europe Initiative is designed to halt deforestation and support partner countries in successfully transitioning to sustainable, deforestation-free, and legal value chains.
The EU and its Member States announced an initial package of €70 million in new funding for the implementation of this Team Europe Initiative, complementing a broad portfolio of ongoing programmes from the EU and its Member States on forests and halting deforestation.
At the launch of this Team Europe Initiative, Commissioner Virginijus Sinkevičius said: “The world is losing forests at a dizzying speed, bringing us close to a tipping point. Losing forests means losing biodiversity, putting the global water cycle at risk and fuelling climate change. EU consumption can no longer add fuel to this fire. That’s why we’re working with partner countries to implement the new law on deforestation-free products. This new Team Europe initiative will bring us all closer to achieving our shared goal of halting and reversing deforestation worldwide.” EUROPA
---------
US Congress Reintroduces Bill to Restrict Imports Linked to Illegal Deforestation
On December 1, 2023, members of the US House of Representatives and Senate introduced a bill that would prohibit the import of products made from commodities produced on illegally deforested land. The bill, the "Fostering Overseas Rule of Law and Environmentally Sound Trade Act of 6 2023" ("FOREST Act of 2023"),1 would require importers of certain specified products identified as being at high-risk for contributing to illegal deforestation to certify they have mitigated the risks that their product was produced on land that has been subjected to illegal deforestation. Targeted products include palm oil, soybeans, cocoa, cattle, and rubber. Importers would face stricter supply chain due diligence and disclosure requirements if any covered input in the product originates from countries designated as insufficiently enforcing deforestation laws. US Customs and Border Protection ("CBP") would deny entry to any import that cannot meet the applicable certification requirement, presuming the product to have been produced wholly or in part on illegally deforested land. The bill would also expand enforcement of US money laundering laws to target the proceeds of illegal deforestation, create a new technical assistance program to help countries enforce forestry laws, and establish a new government procurement preference for goods not linked to deforestation. White and Case
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December 08, 2023
Deputy minister: Malaysia-Indonesia cooperation to continue to shore up palm oil’s credibility
KUALA LUMPUR, Dec 7 — The industrial solidarity planned with Indonesia to shore up the credibility of palm oil worldwide will continue to be a bridge to re-strengthen palm oil exports affected by the European Union (EU) sanctions.
Deputy Plantation and Commodities Minister Datuk Siti Aminah Aching said the government had carried out a joint mission visit to the EU with the Indonesian government on May 30-31, 2023 accompanied by the Deputy Prime Minister who is also Plantation and Commodities Minister Datuk Seri Fadillah Yusof.
She said that as an outcome of the mission, EU leaders welcomed the viewpoints from the two major palm oil-producing countries.
“The mission also agreed to establish a special committee, the EU Deforestation-free Regulation (EUDR) ad hoc joint task force, as well as dialogue sessions or a platform to facilitate the EUDR implementation.
“The special committee convened on August 4, 2023 in Jakarta and is expected to hold a second meeting in January 2024 in Kuala Lumpur,” she said during the winding up debate on the Supply Bill 2024 for the second reading at the Dewan Negara today.
Siti Aminah said both countries have taken several actions to ensure that the oil palm industry is not further affected.
“Among the implemented and ongoing actions are holding several meetings and engagement sessions with the EU and global organisations at the senior government officials and agencies level to discuss the best steps in dealing with the EUDR.
“Another action is to moot the EUDR issue at the Asean level via diplomatic relations with regional agricommodity producing countries,” she said.
She said both countries are also stepping up efforts for the EU to recognise the Malaysian Sustainable Palm Oil (MSPO) certification as a key condition in the EUDR compliance.
“Malaysia is always committed to producing palm oil in line with sustainable principles and criteria under the MSPO.
“In this regard, the ministry via the Malaysian Palm Oil Certification Council is enhancing the certification through MSPO 2.0 in step with the current requirements of global sustainability,” she added. -- Bernama/ MalayMail
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In sustainable agritech and traceability, emerging markets will lead, not follow
Written by AC Ventures
Contrary to common expectations, sustainable agritech and supply chain traceability solutions are poised to be spearheaded by the world’s emerging markets.
he following op-ed was contributed by Lauren Blasco. Blasco is a principal and the head of ESG at AC Ventures, a leading venture capital firm in ASEAN, with more than USD 500 million in assets under management. The firm is a generational partner to founders driving positive societal change and economic impact in Indonesia and beyond.
In the last few years, global corporations have begun to recognize the increasing importance of traceability and transparency in their agriculture supply chains. Fast-moving consumer goods giant Unilever, for instance, has revised its sustainable sourcing program and pledged to ensure 100% sustainable sourcing of its key crops.
Other giants in the food production space such as Coca-Cola and Nestle have also committed to creating systemic change in the agricultural supply chain by prioritizing sustainable sourcing and enabling traceability.
Recent research has shown that the global food traceability market is estimated to reach USD 45.29 billion by 2031. One of the major drivers for market growth will be the tightening of global supply chains by governments—a move to improve long-term environmental health and eliminate forced labor across the global supply chain.
For instance, the European Union’s new regulation that came into effect in June 2023 aims to curb deforestation and forest degradation. The recently enacted law mandates that businesses involved in the trade of cattle, cocoa, coffee, palm oil, rubber, soya, and wood, including products made from these resources, must thoroughly examine their supply chains. This is to ensure that their products are not sourced from areas affected by recent deforestation or forest degradation and that they do not violate local environmental and social regulations.
This drive for sustainable sourcing has given rise to new verticals such as sustainable agritech and supply chain traceability. Considering that it is predominantly developed nations that are driving these changes in supply chain regulation, it’s easy for most to assume such innovations can only come from developed nations.
Quite the contrary, emerging markets like Indonesia, which are fueled by unique socioeconomic challenges, climate vulnerabilities, and cultures of innovation, are spearheading novel solutions—both online and offline—in sustainable agritech. They have the potential to lead the next wave of global innovation in agriculture and supply chain transparency.
With its massive economic dependency on the agricultural sector, a market like Indonesia is poised to benefit significantly by implementing traceability frameworks in agricultural supply chains that are up to par with Northern European standards. KR Asia
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Indonesia-Downstreaming of natural resources supports green economy: Ministry
Jakarta (ANTARA) - Director General of Budget of the Ministry of Finance Isa Rachmatarwata stated that downstreaming natural resources could support the realization of a green economy in Indonesia.
"The downstreaming of various commodities also supports a green economy in Indonesia, for example, CPO production, which has been developed to become an environmentally friendly fuel," Rachmatarwata stated at the Economic Practitioners and Researchers Symposium (Pareto) themed "The Downstream Industrialization of Natural Resources" in Jakarta, Thursday.
Rachmatarwata remarked that crude palm oil (CPO) commodities were being developed into environmentally friendly fuels, such as biofuel and biogas, thereby supporting efforts to make the Indonesian economy greener.
Apart from CPO, another commodity developed to support the green industry is nickel that is one of the raw materials for making electric batteries.
Currently, there is an increasing trend of electric vehicles (EV). This condition will encourage demand for EV batteries, including nickel-based ones. This will serve as an opportunity for future development of the Indonesian economy.
Some 50 companies are developing EV in Indonesia, with total investment reaching more than US$200 million, or about Rp3 trillion.
The Indonesian government has set a target of one million four-wheeled EV operating in 2035, which is equivalent to saving around 12.5 million barrels of fuel and reducing carbon dioxide (CO2) emissions by 4.6 million tons. Antara
Deputy minister: Malaysia-Indonesia cooperation to continue to shore up palm oil’s credibility
KUALA LUMPUR, Dec 7 — The industrial solidarity planned with Indonesia to shore up the credibility of palm oil worldwide will continue to be a bridge to re-strengthen palm oil exports affected by the European Union (EU) sanctions.
Deputy Plantation and Commodities Minister Datuk Siti Aminah Aching said the government had carried out a joint mission visit to the EU with the Indonesian government on May 30-31, 2023 accompanied by the Deputy Prime Minister who is also Plantation and Commodities Minister Datuk Seri Fadillah Yusof.
She said that as an outcome of the mission, EU leaders welcomed the viewpoints from the two major palm oil-producing countries.
“The mission also agreed to establish a special committee, the EU Deforestation-free Regulation (EUDR) ad hoc joint task force, as well as dialogue sessions or a platform to facilitate the EUDR implementation.
“The special committee convened on August 4, 2023 in Jakarta and is expected to hold a second meeting in January 2024 in Kuala Lumpur,” she said during the winding up debate on the Supply Bill 2024 for the second reading at the Dewan Negara today.
Siti Aminah said both countries have taken several actions to ensure that the oil palm industry is not further affected.
“Among the implemented and ongoing actions are holding several meetings and engagement sessions with the EU and global organisations at the senior government officials and agencies level to discuss the best steps in dealing with the EUDR.
“Another action is to moot the EUDR issue at the Asean level via diplomatic relations with regional agricommodity producing countries,” she said.
She said both countries are also stepping up efforts for the EU to recognise the Malaysian Sustainable Palm Oil (MSPO) certification as a key condition in the EUDR compliance.
“Malaysia is always committed to producing palm oil in line with sustainable principles and criteria under the MSPO.
“In this regard, the ministry via the Malaysian Palm Oil Certification Council is enhancing the certification through MSPO 2.0 in step with the current requirements of global sustainability,” she added. -- Bernama/ MalayMail
---------
In sustainable agritech and traceability, emerging markets will lead, not follow
Written by AC Ventures
Contrary to common expectations, sustainable agritech and supply chain traceability solutions are poised to be spearheaded by the world’s emerging markets.
he following op-ed was contributed by Lauren Blasco. Blasco is a principal and the head of ESG at AC Ventures, a leading venture capital firm in ASEAN, with more than USD 500 million in assets under management. The firm is a generational partner to founders driving positive societal change and economic impact in Indonesia and beyond.
In the last few years, global corporations have begun to recognize the increasing importance of traceability and transparency in their agriculture supply chains. Fast-moving consumer goods giant Unilever, for instance, has revised its sustainable sourcing program and pledged to ensure 100% sustainable sourcing of its key crops.
Other giants in the food production space such as Coca-Cola and Nestle have also committed to creating systemic change in the agricultural supply chain by prioritizing sustainable sourcing and enabling traceability.
Recent research has shown that the global food traceability market is estimated to reach USD 45.29 billion by 2031. One of the major drivers for market growth will be the tightening of global supply chains by governments—a move to improve long-term environmental health and eliminate forced labor across the global supply chain.
For instance, the European Union’s new regulation that came into effect in June 2023 aims to curb deforestation and forest degradation. The recently enacted law mandates that businesses involved in the trade of cattle, cocoa, coffee, palm oil, rubber, soya, and wood, including products made from these resources, must thoroughly examine their supply chains. This is to ensure that their products are not sourced from areas affected by recent deforestation or forest degradation and that they do not violate local environmental and social regulations.
This drive for sustainable sourcing has given rise to new verticals such as sustainable agritech and supply chain traceability. Considering that it is predominantly developed nations that are driving these changes in supply chain regulation, it’s easy for most to assume such innovations can only come from developed nations.
Quite the contrary, emerging markets like Indonesia, which are fueled by unique socioeconomic challenges, climate vulnerabilities, and cultures of innovation, are spearheading novel solutions—both online and offline—in sustainable agritech. They have the potential to lead the next wave of global innovation in agriculture and supply chain transparency.
With its massive economic dependency on the agricultural sector, a market like Indonesia is poised to benefit significantly by implementing traceability frameworks in agricultural supply chains that are up to par with Northern European standards. KR Asia
---------
Indonesia-Downstreaming of natural resources supports green economy: Ministry
Jakarta (ANTARA) - Director General of Budget of the Ministry of Finance Isa Rachmatarwata stated that downstreaming natural resources could support the realization of a green economy in Indonesia.
"The downstreaming of various commodities also supports a green economy in Indonesia, for example, CPO production, which has been developed to become an environmentally friendly fuel," Rachmatarwata stated at the Economic Practitioners and Researchers Symposium (Pareto) themed "The Downstream Industrialization of Natural Resources" in Jakarta, Thursday.
Rachmatarwata remarked that crude palm oil (CPO) commodities were being developed into environmentally friendly fuels, such as biofuel and biogas, thereby supporting efforts to make the Indonesian economy greener.
Apart from CPO, another commodity developed to support the green industry is nickel that is one of the raw materials for making electric batteries.
Currently, there is an increasing trend of electric vehicles (EV). This condition will encourage demand for EV batteries, including nickel-based ones. This will serve as an opportunity for future development of the Indonesian economy.
Some 50 companies are developing EV in Indonesia, with total investment reaching more than US$200 million, or about Rp3 trillion.
The Indonesian government has set a target of one million four-wheeled EV operating in 2035, which is equivalent to saving around 12.5 million barrels of fuel and reducing carbon dioxide (CO2) emissions by 4.6 million tons. Antara
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December 07, 2023
Indonesia palm oil fund agency sees 2024 export levy collections at 29 trillion rupiah
INDONESIA’S palm oil fund agency predicts it will collect 29 trillion rupiah (S$2.5 billion) in revenues from export levies in 2024, slightly below this year, its chief executive said on Thursday (Dec 7).
Eddy Abdurrachman provided the 2024 estimate to reporters based on an assumption that palm oil prices will fall next year and without providing a figure for 2023.
Indonesia, the world’s biggest exporter of palm oil, uses proceeds from the levy to subsidise biodiesel and fund palm replanting programmes.
Exporters pay levies at a rate that is determined based on a government-set palm oil reference price.
Indonesia earlier this year widened its mandate for palm oil blend in biodiesel to 35 per cent from 30 per cent, called the B35 programme, the world’s highest mandatory mix of palm oil in biodiesel. REUTERS/ Business Times
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Malaysia-Felcra, Risda not affected by EU's deforestation rules, says Zahid
KUALA LUMPUR (Dec 7): Felcra Bhd and the Rubber Industry Smallholders Development Authority (Risda) are not directly affected by the European Union Deforestation Regulation (EUDR), said Deputy Prime Minister and Rural and Regional Development Minister Datuk Seri Dr Ahmad Zahid Hamidi.
He said that palm oil and rubber crops under Felcra and Risda are not affected by the regulation, because their harvest is only sold in the local market.
“Nevertheless, we need to take care of the international requirements related to this restriction, and have implemented traceability to mill and traceability to plantation programmes to ensure that the source of palm oil comes from plantations that have Malaysian Sustainable Palm Oil (MSPO) certification,” he said when wrapping up the debate on the Supply Bill 2024 for the second reading in Parliament on Thursday. The Edge/ Bernama
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Proforest Partners Nigeria To Meet Global Palm Oil Demand
Proforest Africa says it will support Nigeria’s vision of producing 100 percent of its global palm oil demand by 2027.
The organisation’s Africa and Global Director, Mr Abraham Baffoe, said this on Wednesday in Abuja.
Proforest is a non-profit group which supports companies, governments, civil society and other organisations to work towards the responsible production and sourcing of agricultural and forest commodities.
In the early 1960s, Nigeria was the world’s largest palm oil producer with global market share of 43 per cent, but, today, it is the fifth largest producer with less than two percent of total global market production of 74.08 million MT.
Indonesia and Malaysia, which reportedly got palm oil seeds from Nigeria, comprise 74 percent of global palm oil output.
While Indonesia is currently leading with about 45 million metric tonnes per annum, Malaysia followed with 18,000 mmt but Nigeria trails in distant fifth position with some 1.4mmt.
Nigeria is said to have the land size, population and other motivations to push ahead and take over as the leading palm oil producing nation.
According to Baffoe, in 2018 Edo, one of the leading states producing palm oil in Nigeria became part of the Africa Sustainable Commodities Initiative (ASCI) (formerly Africa Palm Oil Initiative), making it the only sub-national partner. Voice of Nigeria
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Liberia: Senate Votes To Concur OnS Fouani Brothers’ Concession Incentive
MONROVIA – The Liberian Senate on Tuesday concurred with the House of Representatives to vote in favor of a concession proposal that will give additional incentives to the Fouani Brothers’ concession.
The concession is expected to construct a factory that will transform raw materials in the Palm oil sector into finished products for consumption and other uses by the public.
Though the incentive agreement received a majority of votes in favor of its passage, there are a few senators who believe that the company is already a recipient of similar incentives. Senator Jonathan Bolycharles Sogboie of River-Gee County believes the incentive agreement will disenfranchise small farmers because the new incentive will allow the company to import raw materials from other countries.
“In our democracy, the current session ongoing is referred to as the limb Dogg session, which means we should not be signing financial instruments, especially where we have a transition ongoing.” He also argued that Rule 35, sec.5, and 6 call for a two-thirds majority of the total sitting of the Senate. However, the Senate had less than the required 19 votes to pass the incentive bill.
In a counter interview, Senator Numene T.H Bartekwa of Grand Kru County and chair of the Senate committee on concessions said, unlike claims by his colleague, the company will only import raw materials if the local produce cannot meet the company’s demand.
“This company will not only provide employment opportunities, but it will also encourage the idea that raw materials will be transformed into finished products which will reduce prices and create more jobs.” Front Page Africa
Indonesia palm oil fund agency sees 2024 export levy collections at 29 trillion rupiah
INDONESIA’S palm oil fund agency predicts it will collect 29 trillion rupiah (S$2.5 billion) in revenues from export levies in 2024, slightly below this year, its chief executive said on Thursday (Dec 7).
Eddy Abdurrachman provided the 2024 estimate to reporters based on an assumption that palm oil prices will fall next year and without providing a figure for 2023.
Indonesia, the world’s biggest exporter of palm oil, uses proceeds from the levy to subsidise biodiesel and fund palm replanting programmes.
Exporters pay levies at a rate that is determined based on a government-set palm oil reference price.
Indonesia earlier this year widened its mandate for palm oil blend in biodiesel to 35 per cent from 30 per cent, called the B35 programme, the world’s highest mandatory mix of palm oil in biodiesel. REUTERS/ Business Times
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Malaysia-Felcra, Risda not affected by EU's deforestation rules, says Zahid
KUALA LUMPUR (Dec 7): Felcra Bhd and the Rubber Industry Smallholders Development Authority (Risda) are not directly affected by the European Union Deforestation Regulation (EUDR), said Deputy Prime Minister and Rural and Regional Development Minister Datuk Seri Dr Ahmad Zahid Hamidi.
He said that palm oil and rubber crops under Felcra and Risda are not affected by the regulation, because their harvest is only sold in the local market.
“Nevertheless, we need to take care of the international requirements related to this restriction, and have implemented traceability to mill and traceability to plantation programmes to ensure that the source of palm oil comes from plantations that have Malaysian Sustainable Palm Oil (MSPO) certification,” he said when wrapping up the debate on the Supply Bill 2024 for the second reading in Parliament on Thursday. The Edge/ Bernama
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Proforest Partners Nigeria To Meet Global Palm Oil Demand
Proforest Africa says it will support Nigeria’s vision of producing 100 percent of its global palm oil demand by 2027.
The organisation’s Africa and Global Director, Mr Abraham Baffoe, said this on Wednesday in Abuja.
Proforest is a non-profit group which supports companies, governments, civil society and other organisations to work towards the responsible production and sourcing of agricultural and forest commodities.
In the early 1960s, Nigeria was the world’s largest palm oil producer with global market share of 43 per cent, but, today, it is the fifth largest producer with less than two percent of total global market production of 74.08 million MT.
Indonesia and Malaysia, which reportedly got palm oil seeds from Nigeria, comprise 74 percent of global palm oil output.
While Indonesia is currently leading with about 45 million metric tonnes per annum, Malaysia followed with 18,000 mmt but Nigeria trails in distant fifth position with some 1.4mmt.
Nigeria is said to have the land size, population and other motivations to push ahead and take over as the leading palm oil producing nation.
According to Baffoe, in 2018 Edo, one of the leading states producing palm oil in Nigeria became part of the Africa Sustainable Commodities Initiative (ASCI) (formerly Africa Palm Oil Initiative), making it the only sub-national partner. Voice of Nigeria
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Liberia: Senate Votes To Concur OnS Fouani Brothers’ Concession Incentive
MONROVIA – The Liberian Senate on Tuesday concurred with the House of Representatives to vote in favor of a concession proposal that will give additional incentives to the Fouani Brothers’ concession.
The concession is expected to construct a factory that will transform raw materials in the Palm oil sector into finished products for consumption and other uses by the public.
Though the incentive agreement received a majority of votes in favor of its passage, there are a few senators who believe that the company is already a recipient of similar incentives. Senator Jonathan Bolycharles Sogboie of River-Gee County believes the incentive agreement will disenfranchise small farmers because the new incentive will allow the company to import raw materials from other countries.
“In our democracy, the current session ongoing is referred to as the limb Dogg session, which means we should not be signing financial instruments, especially where we have a transition ongoing.” He also argued that Rule 35, sec.5, and 6 call for a two-thirds majority of the total sitting of the Senate. However, the Senate had less than the required 19 votes to pass the incentive bill.
In a counter interview, Senator Numene T.H Bartekwa of Grand Kru County and chair of the Senate committee on concessions said, unlike claims by his colleague, the company will only import raw materials if the local produce cannot meet the company’s demand.
“This company will not only provide employment opportunities, but it will also encourage the idea that raw materials will be transformed into finished products which will reduce prices and create more jobs.” Front Page Africa
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December 06, 2023
Facing Challenges in the European Union Market, Indonesia Promotes Inclusion of Small Farmers in the Palm Oil Industry
Jakarta, Indonesia - The Epistemic Community and Market Forum (ECMF) brought together 50 stakeholders, including government officials, private sector representatives, NGOs, and academics in Madrid (30/11) and Rome (1/12). The meeting was held to ensure that small farmers in Indonesia are not marginalised in the European Union market with the implementation of the EU Deforestation-free Regulation (EUDR).
Dr. Yayan G.H. Mulyana, Head of the Foreign Policy Strategy Agency (BSKLN), highlighted the crucial role of palm oil in Indonesia's economic relations with Spain and Italy. "Palm oil is an important commodity in Indonesia's economic relations with Spain and Italy, where both countries import 54% and 52% of vegetable oil from Indonesia, respectively, to support the food and cosmetics industries," said Dr. Yayan G.H. Mulyana. He also emphasised the urgency of the participation of small farmers in Indonesia in the supply chain of vegetable oil and other agricultural commodities in Europe.
During this forum, it was revealed that the negative perception of palm oil in Europe is due to its environmental and health impacts. Dr. Musdalifah Mahmud, Expert Staff on Connectivity, Service Development, and Natural Resources, affirmed Indonesia's commitment to sustainable palm oil production and trade.
In this context, Prof. Pietro Paganini, Co-Founder of Competere (Italy), urged the European Union to consult with commodity-producing countries and small farmers in policymaking. Even though the focus on palm oil by small farmers in Indonesia is around 40-42%, much smaller compared to the coffee, cocoa, and rubber sectors.
Rio Budi Rahmanto, Head of Center for Multilateral Policy Strategy, highlighted that, until now, the EUDR has not considered the existing sustainability efforts and achievements, therefore this policy could potentially exclude small farmers in Indonesia from the European Union market. KEMLU ID
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Europe Faces Coffee Shortage as Deforestation Rules Lack Clarity
(Bloomberg) -- The European Union is facing the prospect of a coffee shortage in 2025 as the market grapples with a lack of clarity around the implementation of deforestation regulations, according to the International Coffee Organization.
The EU agreed late last year to set mandatory rules for companies selling a raft of commodities including coffee, palm oil and cocoa to ensure products do not come from deforested land. However, ICO Executive Director Vanúsia Nogueira says there are still “many doubts and questions without answers yet.”
The rules entered into force at the end of June and most companies will have until the end of 2024 to comply with the measures, which require sophisticated tracking systems and will be enforced using the threat of fines. Critics say the regulations will penalize millions of smaller farmers from Asia to Africa.
The “EU may not get enough coffee” in 2025 if answers on the implementation of rules aren’t properly provided, Nogueira said on the sidelines of a conference in Ho Chi Minh City, Vietnam. “The new deforestation regulations are our biggest priority and a major challenge for next year.”
Nogueira says coffee producers in Africa and Central America could be most vulnerable to the deforestation regulations, with Europe accounting for as much as 80% of total shipments for some. The EU is the world’s biggest importer of beans, according to the US Department of Agriculture. Bloomberg/ Yahoo
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New Zealand-New legislation set to tackle modern slavery
The "daylight disinfectant" legislation will be of interest to those with international supply chains
The Government has recently announced its plans to address modern slavery by enacting legislation to require organisations to be more transparent about their supply chains.
Concerns
Modern slavery is a significant issue facing society and is broadly defined as severe exploitation that a person cannot escape from, due to threats, violence, or deception. It includes forced labour, debt bondage, forced marriage, slavery, human trafficking and working exploitation (including non-minor breaches of NZ employment standards).
Sadly, according to the International Labour Organization, it’s estimated that almost 50 million people are living in modern slavery worldwide.
Typically, New Zealand businesses associated with international supply chains risk the most exposure to modern slavery practices, particularly those working in the cotton, palm oil and other raw material industries.
While reputational concerns and consumer calls for change mean many New Zealand businesses are alive to, and consider, their intentional supply chains, there are currently no legislative measures in place to tackle this.
Transparency the solution? NZ Lawyer
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Supply chain transparency platform SCDP passes proof of concept
The overall goal of the Supply Chain Data Partnership (SCDP) is to make production, logistics, transport, storage and retail stages of the purchasing journey more transparent than ever. This will allow all stakeholders the opportunity to make decisions based on more complete information about the environmental impact of their partners.
Since last year, a pilot has focused on achieving this within sectors including palm oil, soy and wood based packaging. All resources which are considered hugely problematic from an environmental point of view, efforts to improve sustainability within these markets are essential to reduce things like biodiversity and habitat loss, and carbon emissions.
Established through a partnership between Ordnance Survey, Unilever, Esri UK, Deloitte, and Planet Labs, with Global Legal Entity Identification Foundation and GS1 UK since joining, the new global location register is now ready to expand to cover other types of supply chain, providing a detailed overview of the environmental and social standards of any organisation. It is also hoped that in the longer term, the platform will become available to consumers, so they can make better purchasing choices and reduce the impact of their own food. Environment Journal
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Commodity driven deforestation and peatland loss emits more carbon than Germany
As all eyes turn to the climate talks at COP28, Trase quantifies the greenhouse gas emissions caused by deforestation and peatland degradation linked to countries’ production and consumption of beef, soy, palm oil and other commodities.
World leaders are gathering at the COP28 climate summit in the United Arab Emirates to take stock of progress towards cutting carbon emissions to net zero by 2050. While much debate will focus on the energy sector, there is no route to net zero without tackling deforestation.
If deforestation were a country, it would be the world’s third largest emitter . At COP26 in Glasgow, 145 countries representing 91% of the world’s forests committed to halt and reverse forest loss and land degradation by 2030. But pledges urgently need to be translated into action. The latest Forest Declaration Assessment shows that we are off track to halt deforestation and forest degradation by 2030.
Globally, almost all tropical deforestation is directly or indirectly linked to agricultural expansion . Previous research estimates that international trade and consumption of agricultural and forestry commodities drives approximately one quarter of forest loss in the tropical areas and about one third of tropical deforestation-related carbon emissions . Emissions result when carbon-rich forest, wooded savannah, peatlands and other natural ecosystems are cleared to raise livestock and grow crops and timber.
Trase quantified the emissions from deforestation and peatland degradation linked to the five globally traded agricultural commodities with the greatest impact on forests produced in six key countries: beef from Brazil; soy from Brazil, Paraguay, Argentina and Bolivia; cocoa from Côte d’Ivoire; and palm oil and wood pulp from Indonesia. SEI
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Facing Challenges in the European Union Market, Indonesia Promotes Inclusion of Small Farmers in the Palm Oil Industry
Jakarta, Indonesia - The Epistemic Community and Market Forum (ECMF) brought together 50 stakeholders, including government officials, private sector representatives, NGOs, and academics in Madrid (30/11) and Rome (1/12). The meeting was held to ensure that small farmers in Indonesia are not marginalised in the European Union market with the implementation of the EU Deforestation-free Regulation (EUDR).
Dr. Yayan G.H. Mulyana, Head of the Foreign Policy Strategy Agency (BSKLN), highlighted the crucial role of palm oil in Indonesia's economic relations with Spain and Italy. "Palm oil is an important commodity in Indonesia's economic relations with Spain and Italy, where both countries import 54% and 52% of vegetable oil from Indonesia, respectively, to support the food and cosmetics industries," said Dr. Yayan G.H. Mulyana. He also emphasised the urgency of the participation of small farmers in Indonesia in the supply chain of vegetable oil and other agricultural commodities in Europe.
During this forum, it was revealed that the negative perception of palm oil in Europe is due to its environmental and health impacts. Dr. Musdalifah Mahmud, Expert Staff on Connectivity, Service Development, and Natural Resources, affirmed Indonesia's commitment to sustainable palm oil production and trade.
In this context, Prof. Pietro Paganini, Co-Founder of Competere (Italy), urged the European Union to consult with commodity-producing countries and small farmers in policymaking. Even though the focus on palm oil by small farmers in Indonesia is around 40-42%, much smaller compared to the coffee, cocoa, and rubber sectors.
Rio Budi Rahmanto, Head of Center for Multilateral Policy Strategy, highlighted that, until now, the EUDR has not considered the existing sustainability efforts and achievements, therefore this policy could potentially exclude small farmers in Indonesia from the European Union market. KEMLU ID
---------
Europe Faces Coffee Shortage as Deforestation Rules Lack Clarity
(Bloomberg) -- The European Union is facing the prospect of a coffee shortage in 2025 as the market grapples with a lack of clarity around the implementation of deforestation regulations, according to the International Coffee Organization.
The EU agreed late last year to set mandatory rules for companies selling a raft of commodities including coffee, palm oil and cocoa to ensure products do not come from deforested land. However, ICO Executive Director Vanúsia Nogueira says there are still “many doubts and questions without answers yet.”
The rules entered into force at the end of June and most companies will have until the end of 2024 to comply with the measures, which require sophisticated tracking systems and will be enforced using the threat of fines. Critics say the regulations will penalize millions of smaller farmers from Asia to Africa.
The “EU may not get enough coffee” in 2025 if answers on the implementation of rules aren’t properly provided, Nogueira said on the sidelines of a conference in Ho Chi Minh City, Vietnam. “The new deforestation regulations are our biggest priority and a major challenge for next year.”
Nogueira says coffee producers in Africa and Central America could be most vulnerable to the deforestation regulations, with Europe accounting for as much as 80% of total shipments for some. The EU is the world’s biggest importer of beans, according to the US Department of Agriculture. Bloomberg/ Yahoo
---------
New Zealand-New legislation set to tackle modern slavery
The "daylight disinfectant" legislation will be of interest to those with international supply chains
The Government has recently announced its plans to address modern slavery by enacting legislation to require organisations to be more transparent about their supply chains.
Concerns
Modern slavery is a significant issue facing society and is broadly defined as severe exploitation that a person cannot escape from, due to threats, violence, or deception. It includes forced labour, debt bondage, forced marriage, slavery, human trafficking and working exploitation (including non-minor breaches of NZ employment standards).
Sadly, according to the International Labour Organization, it’s estimated that almost 50 million people are living in modern slavery worldwide.
Typically, New Zealand businesses associated with international supply chains risk the most exposure to modern slavery practices, particularly those working in the cotton, palm oil and other raw material industries.
While reputational concerns and consumer calls for change mean many New Zealand businesses are alive to, and consider, their intentional supply chains, there are currently no legislative measures in place to tackle this.
Transparency the solution? NZ Lawyer
---------
Supply chain transparency platform SCDP passes proof of concept
The overall goal of the Supply Chain Data Partnership (SCDP) is to make production, logistics, transport, storage and retail stages of the purchasing journey more transparent than ever. This will allow all stakeholders the opportunity to make decisions based on more complete information about the environmental impact of their partners.
Since last year, a pilot has focused on achieving this within sectors including palm oil, soy and wood based packaging. All resources which are considered hugely problematic from an environmental point of view, efforts to improve sustainability within these markets are essential to reduce things like biodiversity and habitat loss, and carbon emissions.
Established through a partnership between Ordnance Survey, Unilever, Esri UK, Deloitte, and Planet Labs, with Global Legal Entity Identification Foundation and GS1 UK since joining, the new global location register is now ready to expand to cover other types of supply chain, providing a detailed overview of the environmental and social standards of any organisation. It is also hoped that in the longer term, the platform will become available to consumers, so they can make better purchasing choices and reduce the impact of their own food. Environment Journal
---------
Commodity driven deforestation and peatland loss emits more carbon than Germany
As all eyes turn to the climate talks at COP28, Trase quantifies the greenhouse gas emissions caused by deforestation and peatland degradation linked to countries’ production and consumption of beef, soy, palm oil and other commodities.
World leaders are gathering at the COP28 climate summit in the United Arab Emirates to take stock of progress towards cutting carbon emissions to net zero by 2050. While much debate will focus on the energy sector, there is no route to net zero without tackling deforestation.
If deforestation were a country, it would be the world’s third largest emitter . At COP26 in Glasgow, 145 countries representing 91% of the world’s forests committed to halt and reverse forest loss and land degradation by 2030. But pledges urgently need to be translated into action. The latest Forest Declaration Assessment shows that we are off track to halt deforestation and forest degradation by 2030.
Globally, almost all tropical deforestation is directly or indirectly linked to agricultural expansion . Previous research estimates that international trade and consumption of agricultural and forestry commodities drives approximately one quarter of forest loss in the tropical areas and about one third of tropical deforestation-related carbon emissions . Emissions result when carbon-rich forest, wooded savannah, peatlands and other natural ecosystems are cleared to raise livestock and grow crops and timber.
Trase quantified the emissions from deforestation and peatland degradation linked to the five globally traded agricultural commodities with the greatest impact on forests produced in six key countries: beef from Brazil; soy from Brazil, Paraguay, Argentina and Bolivia; cocoa from Côte d’Ivoire; and palm oil and wood pulp from Indonesia. SEI
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December 05, 2023
2023 a year of headwinds for Malaysia's major commodities
KUALA LUMPUR: Malaysia’s major commodities suffered a setback in 2023 despite a weaker ringgit as it was overshadowed by demand deficits due to global economic uncertainties arising from the ongoing geopolitical tensions.
It was further hampered by extreme weather conditions and the issue of labour shortages, which resulted in lower production in all the four major commodities such as palm oil, rubber, cocoa and pepper.
If there is anything to be thankful for, it is the government’s assurance that it would sort out the issue of labour shortage for labour intensive sectors at large and plantations specifically.
An adequate labour supply would help boost production in the plantation area, especially for the oil palm planters, while the expectation for the ringgit to strengthen would increase the sector’s export revenue.
For the January-September 2023 period, the agricommodity sector recorded an export value of RM117 billion versus RM160.6 billion secured during the January-September 2022 period.
Shortfall in labour remains a major challenge for palm oil
It is to be noted that 2023 marks the fourth consecutive year that the palm oil sector is enduring the issue of labour shortages. The industry is highly dependent on foreign labour, especially for its harvesting process. The StarMY
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US-As Hochul weighs deforestation bill, Sysco steps in to lobby
By JULIA ROCK New York Focus
This story first appeared in New York Focus, a non-profit news publication investigating New York state politics. Sign up for their stories at nysfocus.com/newsletter.
The multinational food corporation Sysco has mounted a quiet campaign to lobby Governor Kathy Hochul as she decides whether to sign what is arguably the most consequential climate legislation on her desk.
The bill aims to leverage New York’s massive spending power to stop companies that contract with the state government from contributing to tropical deforestation, the cause of more than 10 percent of global greenhouse gas emissions. It passed the state legislature with bipartisan support in June, months after the European Union enacted a similar measure.
Four months after its passage, Sysco registered to lobby Hochul on the legislation. Known as the world’s largest food distributor, Sysco has more than $200 million in contracts to provide food to various state agencies — and clear links to deforestation. Major Sysco beef suppliers JBS and Cargill have long track records of clearing forested lands. Numerous Sysco products contain palm oil, a product notorious for decimating tropical forests.
Sysco’s recent lobbying activity has not previously been reported, and its campaign has taken place behind the scenes. Though Sysco has not made any public comments about the bill, it appears to have the Hochul administration’s ear. PressRepublican/ NYFocus
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Empowering West Sumatra: LPEI-government partnership fuels global trade
Backed by its rich cultural legacy, the province of West Sumatra has great export potential, with products such as the much-beloved rendang, as well as varied crafts, fashion and spices, providing multiple opportunities for West Sumatra export-oriented firms. According to Statistics Indonesia (BPS), West Sumatra exported US$193.53 million worth of goods in the January to October 2023 period, with crude palm oil (CPO), chemical goods and rubber among the most important exports. In the second quarter of 2023, Pakistan remained the top export destination for West Sumatra, with a share of 34.53 percent, followed by India and Bangladesh, with 31.80 percent and 9.71 percent respectively. As part of a combined effort to drive greater export growth from West Sumatra, the Indonesian Export Financing Agency (LPEI) or Indonesia Eximbank and the West Sumatra provincial administration have entered into a memorandum of understanding (MoU) to collaborate on capacity development for small and medium industries (SMEs), cooperatives, village-owned enterprises (BUMDs), the village-owned enterprises development agency (BUMDESMA) and export-oriented SMEs in West Sumatra.
Click to read: https://www.thejakartapost.com/front-row/2023/12/05/empowering-west-sumatra-lpei-government-partnership-fuels-global-trade.html.
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2024 Cocoa Barometer Offers Insights for Palm Oil Smallholders
Ensuring cocoa farmers can live decently from their work is not rocket science. Companies should pay a fair price, take a fair share of the risk, and be accountable about it. Our new paper on Good Purchasing Practices is released today.
The Cocoa Barometer is a biennial publication, with the aim of creating an up-to-date, fair, and clear overview of the state of sustainability of the cocoa sector. The Barometer looks at the sector as a whole, but also couples aggregated and disaggregated company and country data with clear visualizations and fair contextualization of challenges, commitments, and accomplishments. It is published by a consortium of civil society actors from across the globe, and hosted by the VOICE network.
In the lead up to the 2024 Cocoa Barometer, the Consortium will once again be releasing several consultation papers. Voice Network
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Tocotrienol supplementation shown to mitigate liver enzymes, fatty liver and liver stiffness in type 2 diabetes and MASL
The correlation between type 2 diabetes (T2DM) and metabolic dysfunction-associated steatotic liver (MASL), formerly known as non-alcoholic fatty liver (NAFL), has become a growing public health concern
These conditions not only coexist but also influence each other's progression. Factors such as T2DM contribute to the development of advanced fibrosis or cirrhosis in MASL. The prevalence of MASL in Asia and the Pacific countries has markedly increased during recent years.
With the rising prevalence, the interest in studies examining the effects of tocotrienol supplementation on MASL in individuals with diabetes is growing. Recently, a team of researchers in India investigated the effect of tocotrienol on liver enzymes, fatty liver and liver stiffness in people with T2DM and MASL in Chennai.
This open-label, randomised pilot trial was conducted at the Chennai's Tertiary Care Centre for Diabetes; 34 participants were randomly assigned to either the control group or to receive 200 mg of tocotrienol twice daily as a supplement. NutraceuticalBusinessReview
2023 a year of headwinds for Malaysia's major commodities
KUALA LUMPUR: Malaysia’s major commodities suffered a setback in 2023 despite a weaker ringgit as it was overshadowed by demand deficits due to global economic uncertainties arising from the ongoing geopolitical tensions.
It was further hampered by extreme weather conditions and the issue of labour shortages, which resulted in lower production in all the four major commodities such as palm oil, rubber, cocoa and pepper.
If there is anything to be thankful for, it is the government’s assurance that it would sort out the issue of labour shortage for labour intensive sectors at large and plantations specifically.
An adequate labour supply would help boost production in the plantation area, especially for the oil palm planters, while the expectation for the ringgit to strengthen would increase the sector’s export revenue.
For the January-September 2023 period, the agricommodity sector recorded an export value of RM117 billion versus RM160.6 billion secured during the January-September 2022 period.
Shortfall in labour remains a major challenge for palm oil
It is to be noted that 2023 marks the fourth consecutive year that the palm oil sector is enduring the issue of labour shortages. The industry is highly dependent on foreign labour, especially for its harvesting process. The StarMY
---------
US-As Hochul weighs deforestation bill, Sysco steps in to lobby
By JULIA ROCK New York Focus
This story first appeared in New York Focus, a non-profit news publication investigating New York state politics. Sign up for their stories at nysfocus.com/newsletter.
The multinational food corporation Sysco has mounted a quiet campaign to lobby Governor Kathy Hochul as she decides whether to sign what is arguably the most consequential climate legislation on her desk.
The bill aims to leverage New York’s massive spending power to stop companies that contract with the state government from contributing to tropical deforestation, the cause of more than 10 percent of global greenhouse gas emissions. It passed the state legislature with bipartisan support in June, months after the European Union enacted a similar measure.
Four months after its passage, Sysco registered to lobby Hochul on the legislation. Known as the world’s largest food distributor, Sysco has more than $200 million in contracts to provide food to various state agencies — and clear links to deforestation. Major Sysco beef suppliers JBS and Cargill have long track records of clearing forested lands. Numerous Sysco products contain palm oil, a product notorious for decimating tropical forests.
Sysco’s recent lobbying activity has not previously been reported, and its campaign has taken place behind the scenes. Though Sysco has not made any public comments about the bill, it appears to have the Hochul administration’s ear. PressRepublican/ NYFocus
---------
Empowering West Sumatra: LPEI-government partnership fuels global trade
Backed by its rich cultural legacy, the province of West Sumatra has great export potential, with products such as the much-beloved rendang, as well as varied crafts, fashion and spices, providing multiple opportunities for West Sumatra export-oriented firms. According to Statistics Indonesia (BPS), West Sumatra exported US$193.53 million worth of goods in the January to October 2023 period, with crude palm oil (CPO), chemical goods and rubber among the most important exports. In the second quarter of 2023, Pakistan remained the top export destination for West Sumatra, with a share of 34.53 percent, followed by India and Bangladesh, with 31.80 percent and 9.71 percent respectively. As part of a combined effort to drive greater export growth from West Sumatra, the Indonesian Export Financing Agency (LPEI) or Indonesia Eximbank and the West Sumatra provincial administration have entered into a memorandum of understanding (MoU) to collaborate on capacity development for small and medium industries (SMEs), cooperatives, village-owned enterprises (BUMDs), the village-owned enterprises development agency (BUMDESMA) and export-oriented SMEs in West Sumatra.
Click to read: https://www.thejakartapost.com/front-row/2023/12/05/empowering-west-sumatra-lpei-government-partnership-fuels-global-trade.html.
---------
2024 Cocoa Barometer Offers Insights for Palm Oil Smallholders
Ensuring cocoa farmers can live decently from their work is not rocket science. Companies should pay a fair price, take a fair share of the risk, and be accountable about it. Our new paper on Good Purchasing Practices is released today.
The Cocoa Barometer is a biennial publication, with the aim of creating an up-to-date, fair, and clear overview of the state of sustainability of the cocoa sector. The Barometer looks at the sector as a whole, but also couples aggregated and disaggregated company and country data with clear visualizations and fair contextualization of challenges, commitments, and accomplishments. It is published by a consortium of civil society actors from across the globe, and hosted by the VOICE network.
In the lead up to the 2024 Cocoa Barometer, the Consortium will once again be releasing several consultation papers. Voice Network
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Tocotrienol supplementation shown to mitigate liver enzymes, fatty liver and liver stiffness in type 2 diabetes and MASL
The correlation between type 2 diabetes (T2DM) and metabolic dysfunction-associated steatotic liver (MASL), formerly known as non-alcoholic fatty liver (NAFL), has become a growing public health concern
These conditions not only coexist but also influence each other's progression. Factors such as T2DM contribute to the development of advanced fibrosis or cirrhosis in MASL. The prevalence of MASL in Asia and the Pacific countries has markedly increased during recent years.
With the rising prevalence, the interest in studies examining the effects of tocotrienol supplementation on MASL in individuals with diabetes is growing. Recently, a team of researchers in India investigated the effect of tocotrienol on liver enzymes, fatty liver and liver stiffness in people with T2DM and MASL in Chennai.
This open-label, randomised pilot trial was conducted at the Chennai's Tertiary Care Centre for Diabetes; 34 participants were randomly assigned to either the control group or to receive 200 mg of tocotrienol twice daily as a supplement. NutraceuticalBusinessReview
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December 04, 2023
The demand for primary oils in the United States for biodiesel production is growing
The United States is in a process of great growth in the production of biofuels, to comply with the mandates of the United States Environmental Protection Agency (EPA). In this framework, the great increase in the production of Hydrotreated Vegetable Oil (HVO), which is a renewable diesel, stands out. Major adaptations of major oil refineries are underway to replace these HVO production plants with soybean oil and new plants are planned for the coming years. according to a report from the Rosario Stock Exchange.
According to the US EIA, significant growth in HVO production is expected in the coming years that will easily outpace traditional biodiesel production. For this last case, a scenario of reduced production is proposed, although there is another projection where production may remain stable or increase. I mean, the outlook for biodiesel doesn’t seem very clear; however, significant growth is planned for HVO in the very short term, revolutionizing the industry in the United States.
Regarding the development of 2023, between January and August 9.33 Mt of oils were used for the production of biodiesel/HVO in the United States, an increase of 2.3 Mt or 32% compared to the same period last year. According to Oil World, the United States will have a production of 13 Mt of biodiesel/HVO in 2023, 3 Mt above in 2022. Compared to 2019, this is an increase in production of almost 50% and as shown in the previous graph, This is a trend that will continue for years to come.
Now, when analyzing the inputs used for the production of biodiesel – including HVO – between January and August 2023, soybean oil is the main product used with a share of 41% so far in 2023 and lig -on compared to 44% in 2022 for the same. time. In relative terms, the product that will grow the most as an input for biodiesel production is rapeseed oil, from 0.38 Mt in 2022 to 1 Mt in 2023.
Its relative participation as an input for the biofuels industry doubled from 5% in 2022 to 11% in 2023 for the months under review. At the same time, the use of used oil for the production of biodiesel/HVO continues to grow, being the second most used input with 2.16 Mt between January and August 2023, a year-on-year increase by 30%. In general, the use of all oils is increasing, but the key fact is that the increase in domestic soybean oil production is not enough to supply the growth rate of biodiesel / HVO production in the United States. Nation World News
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UK-Power plant planning to run on HVO
UK-based energy giant SSE has submitted proposals to transform its Tarbert Power Station in County Kerry in Ireland into a facility that operates on biofuels.
The energy company’s Irish subsidiary, SSE Thermal, submitted the application to An Bord Pleanála to develop the 350 megawatt power station.
The facility will initially run on Hydrotreated Vegetable Oil (HVO) and has the potential to convert to hydrogen.
Catherine Raw, managing director of SSE Thermal, said Tarbert has a long history of power generation and hopes to continue that by delivering this “important project”.
She said: “We look forward to our proposals progressing through the planning process, and we hope for an outcome that will help us deliver an enduring, cleaner and lower-carbon energy source for County Kerry and beyond.”
Tarbert Next Generation Power Station has the potential to provide a clear bridge to a low-carbon future while protecting the security of energy supply and providing essential back-up during periods of peak demand. Biofuels News
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Shell Malaysia launches B100 biodiesel pilot test with Scania road tankers operated by Konsortium PD
Posted in Local News / By Gerard Lye / December 4 2023 2:49 pm
Shell Malaysia has launched a pilot test of the first pair of B100 biodiesel-fuelled Scania road tankers operated by Konsortium Port Dickson (KPD). Supported by the Malaysian Palm Oil Board (MPOB) as well as the ministry of plantation industries and commodities (MPIC), the pilot test involving the three companies is being carried out in an effort to lower carbon emissions.
“Long-term decarbonisation of transportation depends on electrification. Alternatively, switching to renewable fuels from fossil fuels can drastically lower carbon emissions in vehicles with internal combustion engines to help companies achieve environmental, social and governance (ESG) goals. All Scania diesel vehicles that are sold in Malaysia are FAME-prepared to operate on any blend of biodiesel, ranging from B10 to B100,” said Heba Eltarifi, managing director of Scania Southeast Asia.
FAME (fatty acid methyl ester) is the generic chemical term for biodiesel derived from renewable sources, and Scania is the first commercial vehicle producer to make all its vehicles FAME-prepared up to B100 since 2019.
“The pilot test represents a major advancement in Shell Malaysia’s history as we introduce two KPD Scania road tankers, each with a capacity of carrying 35,000 and 47,000 liters of fuel, powered solely by B100 biodiesel. We see its potential scalability in contributing towards achieving our net-zero ambition targets in Malaysia,” commented Shairan Huzani Husain, managing director of Shell Malaysia and is also known as ‘Pak Cik Shell’.
“Reducing emissions across our whole value chain, notably from our vehicles, is essential to managing Konsortium Port Dickson’s climate impact and risk mitigation as a leading bulk petroleum carrier. With our Scania trucks, we can define the areas that need to be prioritized in order to reach our carbon reduction goals,” said Richard Tee Chu Wong, managing director of KPD.
In regards to heavy vehicles, it was reported earlier this year that the second phase of the National Energy Transition Roadmap (NETR) will see the B30 biodiesel blend being mandated by 2030. At present, customers have access to Euro 5 B10 and B10 biodiesel blends priced which are currently priced at RM2.15 per litre, while the Euro 5 B7 blend retails at RM2.35 per litre. Paul Tan
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Nigeria-Agriculture as the engine of sustainable industrialisation in Edo state
From Oil to Soil
In recent years, oil took over as the primary money-maker in Nigeria, with the Federal government collecting revenues and dolling out monthly allocations to all federating units. This newfound wealth being shared from Abuja, heralded a promise of urban prosperity. Rural dwellers who were once dedicated to tilling the land and feeding the nation, found city life, with its allure of white and blue-collar jobs, increasingly captivating. The ensuing rural to urban migration of the productive rural youths who were hitherto farm hands, contributed in no small measure to the decline in agricultural productivity. The most affected sector is cash crop farming, this is because it requires more time and effort to nurture than is required for subsistence crops like cassava, yam, or maize.
But why leave behind farming that was once the backbone of the region’s prosperity? It is now crucial to refocus on Edo’s agricultural sector as a necessary gateway to a sustainable future. The Cable
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Papua New Guinea-Sustainable agriculture partnership
In a move toward sustainable agriculture, Papua New Guinea and Wilmar International Ltd have inked a Memorandum of Understanding (MoU) to foster eco-friendly practices in various sectors.
The partnership aligns with the country’s efforts to address climate change through eco-friendly agricultural practices.
The PNG-Wilmar partnership signals a paradigm shift towards sustainable agricultural practices. Wilmar's integrated agribusiness model aligns with PNG's green initiatives, focusing on responsible sourcing and production.
Investments will span the rice industry, chicken production, a new eco-friendly feed mill, and a sustainable flour mill in Port Moresby. Downstream processing of palm oil in PNG will adhere to stringent environmental standards.
Wilmar International's global presence and commitment to sustainability play a pivotal role in reshaping PNG's agricultural landscape. The partnership aims to reduce the environmental impact of agricultural activities, promoting responsible farming practices.
Acting Prime Minister John Rosso, in his speech highlighted the commitment to environmental consciousness, presenting a new angle to this transformative partnership.
Rosso emphasised the government's dedication to sustainable development, focusing on reducing carbon footprint and promoting biodiversity.
Anticipation of a dual impact on the economy and the environment, with job creation and increased exports complemented by a commitment to sustainability. The partnership aims to position PNG as a leader in environmentally responsible agriculture.
Rosso thanked Wilmar International for joining PNG in this green journey. The partnership signifies a fusion of economic growth and environmental stewardship, marking a significant step towards a sustainable future for Papua New Guinea. The LoopPNG
The demand for primary oils in the United States for biodiesel production is growing
The United States is in a process of great growth in the production of biofuels, to comply with the mandates of the United States Environmental Protection Agency (EPA). In this framework, the great increase in the production of Hydrotreated Vegetable Oil (HVO), which is a renewable diesel, stands out. Major adaptations of major oil refineries are underway to replace these HVO production plants with soybean oil and new plants are planned for the coming years. according to a report from the Rosario Stock Exchange.
According to the US EIA, significant growth in HVO production is expected in the coming years that will easily outpace traditional biodiesel production. For this last case, a scenario of reduced production is proposed, although there is another projection where production may remain stable or increase. I mean, the outlook for biodiesel doesn’t seem very clear; however, significant growth is planned for HVO in the very short term, revolutionizing the industry in the United States.
Regarding the development of 2023, between January and August 9.33 Mt of oils were used for the production of biodiesel/HVO in the United States, an increase of 2.3 Mt or 32% compared to the same period last year. According to Oil World, the United States will have a production of 13 Mt of biodiesel/HVO in 2023, 3 Mt above in 2022. Compared to 2019, this is an increase in production of almost 50% and as shown in the previous graph, This is a trend that will continue for years to come.
Now, when analyzing the inputs used for the production of biodiesel – including HVO – between January and August 2023, soybean oil is the main product used with a share of 41% so far in 2023 and lig -on compared to 44% in 2022 for the same. time. In relative terms, the product that will grow the most as an input for biodiesel production is rapeseed oil, from 0.38 Mt in 2022 to 1 Mt in 2023.
Its relative participation as an input for the biofuels industry doubled from 5% in 2022 to 11% in 2023 for the months under review. At the same time, the use of used oil for the production of biodiesel/HVO continues to grow, being the second most used input with 2.16 Mt between January and August 2023, a year-on-year increase by 30%. In general, the use of all oils is increasing, but the key fact is that the increase in domestic soybean oil production is not enough to supply the growth rate of biodiesel / HVO production in the United States. Nation World News
----------
UK-Power plant planning to run on HVO
UK-based energy giant SSE has submitted proposals to transform its Tarbert Power Station in County Kerry in Ireland into a facility that operates on biofuels.
The energy company’s Irish subsidiary, SSE Thermal, submitted the application to An Bord Pleanála to develop the 350 megawatt power station.
The facility will initially run on Hydrotreated Vegetable Oil (HVO) and has the potential to convert to hydrogen.
Catherine Raw, managing director of SSE Thermal, said Tarbert has a long history of power generation and hopes to continue that by delivering this “important project”.
She said: “We look forward to our proposals progressing through the planning process, and we hope for an outcome that will help us deliver an enduring, cleaner and lower-carbon energy source for County Kerry and beyond.”
Tarbert Next Generation Power Station has the potential to provide a clear bridge to a low-carbon future while protecting the security of energy supply and providing essential back-up during periods of peak demand. Biofuels News
---------
Shell Malaysia launches B100 biodiesel pilot test with Scania road tankers operated by Konsortium PD
Posted in Local News / By Gerard Lye / December 4 2023 2:49 pm
Shell Malaysia has launched a pilot test of the first pair of B100 biodiesel-fuelled Scania road tankers operated by Konsortium Port Dickson (KPD). Supported by the Malaysian Palm Oil Board (MPOB) as well as the ministry of plantation industries and commodities (MPIC), the pilot test involving the three companies is being carried out in an effort to lower carbon emissions.
“Long-term decarbonisation of transportation depends on electrification. Alternatively, switching to renewable fuels from fossil fuels can drastically lower carbon emissions in vehicles with internal combustion engines to help companies achieve environmental, social and governance (ESG) goals. All Scania diesel vehicles that are sold in Malaysia are FAME-prepared to operate on any blend of biodiesel, ranging from B10 to B100,” said Heba Eltarifi, managing director of Scania Southeast Asia.
FAME (fatty acid methyl ester) is the generic chemical term for biodiesel derived from renewable sources, and Scania is the first commercial vehicle producer to make all its vehicles FAME-prepared up to B100 since 2019.
“The pilot test represents a major advancement in Shell Malaysia’s history as we introduce two KPD Scania road tankers, each with a capacity of carrying 35,000 and 47,000 liters of fuel, powered solely by B100 biodiesel. We see its potential scalability in contributing towards achieving our net-zero ambition targets in Malaysia,” commented Shairan Huzani Husain, managing director of Shell Malaysia and is also known as ‘Pak Cik Shell’.
“Reducing emissions across our whole value chain, notably from our vehicles, is essential to managing Konsortium Port Dickson’s climate impact and risk mitigation as a leading bulk petroleum carrier. With our Scania trucks, we can define the areas that need to be prioritized in order to reach our carbon reduction goals,” said Richard Tee Chu Wong, managing director of KPD.
In regards to heavy vehicles, it was reported earlier this year that the second phase of the National Energy Transition Roadmap (NETR) will see the B30 biodiesel blend being mandated by 2030. At present, customers have access to Euro 5 B10 and B10 biodiesel blends priced which are currently priced at RM2.15 per litre, while the Euro 5 B7 blend retails at RM2.35 per litre. Paul Tan
---------
Nigeria-Agriculture as the engine of sustainable industrialisation in Edo state
From Oil to Soil
In recent years, oil took over as the primary money-maker in Nigeria, with the Federal government collecting revenues and dolling out monthly allocations to all federating units. This newfound wealth being shared from Abuja, heralded a promise of urban prosperity. Rural dwellers who were once dedicated to tilling the land and feeding the nation, found city life, with its allure of white and blue-collar jobs, increasingly captivating. The ensuing rural to urban migration of the productive rural youths who were hitherto farm hands, contributed in no small measure to the decline in agricultural productivity. The most affected sector is cash crop farming, this is because it requires more time and effort to nurture than is required for subsistence crops like cassava, yam, or maize.
But why leave behind farming that was once the backbone of the region’s prosperity? It is now crucial to refocus on Edo’s agricultural sector as a necessary gateway to a sustainable future. The Cable
----------
Papua New Guinea-Sustainable agriculture partnership
In a move toward sustainable agriculture, Papua New Guinea and Wilmar International Ltd have inked a Memorandum of Understanding (MoU) to foster eco-friendly practices in various sectors.
The partnership aligns with the country’s efforts to address climate change through eco-friendly agricultural practices.
The PNG-Wilmar partnership signals a paradigm shift towards sustainable agricultural practices. Wilmar's integrated agribusiness model aligns with PNG's green initiatives, focusing on responsible sourcing and production.
Investments will span the rice industry, chicken production, a new eco-friendly feed mill, and a sustainable flour mill in Port Moresby. Downstream processing of palm oil in PNG will adhere to stringent environmental standards.
Wilmar International's global presence and commitment to sustainability play a pivotal role in reshaping PNG's agricultural landscape. The partnership aims to reduce the environmental impact of agricultural activities, promoting responsible farming practices.
Acting Prime Minister John Rosso, in his speech highlighted the commitment to environmental consciousness, presenting a new angle to this transformative partnership.
Rosso emphasised the government's dedication to sustainable development, focusing on reducing carbon footprint and promoting biodiversity.
Anticipation of a dual impact on the economy and the environment, with job creation and increased exports complemented by a commitment to sustainability. The partnership aims to position PNG as a leader in environmentally responsible agriculture.
Rosso thanked Wilmar International for joining PNG in this green journey. The partnership signifies a fusion of economic growth and environmental stewardship, marking a significant step towards a sustainable future for Papua New Guinea. The LoopPNG
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December 03, 2023
Sustainable aviation fuel offers hope, but decarbonizing air travel needs everyone onboard
BIS Research, a leading provider of market intelligence on disruptive technologies, forecasts a remarkable growth trajectory for SAF, projecting its valuation to soar to US$131.12 billion by 2033, up from $1.29 billion in 2023.
Overcoming adoption hurdles: Southeast Asia – a potential powerhouse for SAF production Despite its promise, SAF adoption remains limited, with its current share in the aviation fuel mix standing at less than 0.1 percent. Industry actors face formidable challenges in scaling up SAF production due to limited supply and feedstock restrictions, leading to high production costs when compared with conventional fossil-based jet fuel. The SAF supply chain also grapples with a “chicken-and-egg” dilemma where the interdependence of supply and demand exacerbates the issue. Notably, costs could decrease with increased production, thanks to economies of scale.
This article was published in thejakartapost.com with the title "Sustainable aviation fuel offers hope, but decarbonizing air travel needs everyone onboard". Click to read: https://www.thejakartapost.com/business/2023/12/03/sustainable-aviation-fuel-offers-hope-but-decarbonizing-air-travel-needs-everyone-onboard.html.
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Why closing the price gap for green fuels is key to decarbonizing the maritime sector
Achieving a zero-emission future for shipping is key to meeting Paris Agreement climate targets. The shipping industry facilitates global trade by moving over 11 billion tonnes of goods along deep-sea routes annually. But shipping also contributes to almost 3% of global greenhouse gas (GHG) emissions and is one of the hard-to-abate industries. The reason is simple. Ships that traverse the World's oceans cannot run on cheaper renewable energy directly as many land-based industries will be able to, instead the energy will need to be converted into a dense form that is light and easy to handle on ships.
This complicates the path to decarbonization for ships and makes the cost high. Further, while the industry is working with various technologies to reduce fuel consumptions and improve energy efficiency for any shipping journey, fuel is by far the largest expense, at around 30-50% of a vessel’s operating costs and currently bunker fuels, mainly Heavy Fuel Oil (HFO) and distillates make up 99% of shipping’s energy demand. WEForum
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Monaco and Malaysia should explore palm oil biofuel for leisure marine industry
KUALA LUMPUR: Monaco and Malaysia should explore opportunities using palm oil biofuel in the leisure marine industry, said chief executive officer of the Prince Albert II of Monaco Foundation Olivier Wenden.
This would be in line with the global environmental, sustainability and governance direction to reduce and replace fossil fuel usage with a green option.
The principality, nestled along the French Riviera, is known as a yachting hub amid the evolving industry as it establishes itself as a leader with a number of initiatives aimed at reducing the environmental impact brought about by yachting.
Simultaneously, there has been a lot of talk about new technologies and green fuels, such as palm oil-based biofuel, as a means of decarbonising the superyacht industry.
The usage of second-generation biofuels such as hydrotreated vegetable oil (HVO) from palm oil mill effluents can be particularly interesting for the two major palm oil producers Malaysia and Indonesia.
“We are very keen to explore in depth (on palm oil biofuel), in the mix (fuel) and in the biomass,” he told Bernama in conjunction with Prince Albert II’s first state visit to Malaysia. The SunMY
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Sustainable aviation fuel offers hope, but decarbonizing air travel needs everyone onboard
BIS Research, a leading provider of market intelligence on disruptive technologies, forecasts a remarkable growth trajectory for SAF, projecting its valuation to soar to US$131.12 billion by 2033, up from $1.29 billion in 2023.
Overcoming adoption hurdles: Southeast Asia – a potential powerhouse for SAF production Despite its promise, SAF adoption remains limited, with its current share in the aviation fuel mix standing at less than 0.1 percent. Industry actors face formidable challenges in scaling up SAF production due to limited supply and feedstock restrictions, leading to high production costs when compared with conventional fossil-based jet fuel. The SAF supply chain also grapples with a “chicken-and-egg” dilemma where the interdependence of supply and demand exacerbates the issue. Notably, costs could decrease with increased production, thanks to economies of scale.
This article was published in thejakartapost.com with the title "Sustainable aviation fuel offers hope, but decarbonizing air travel needs everyone onboard". Click to read: https://www.thejakartapost.com/business/2023/12/03/sustainable-aviation-fuel-offers-hope-but-decarbonizing-air-travel-needs-everyone-onboard.html.
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Why closing the price gap for green fuels is key to decarbonizing the maritime sector
- First Movers Coalition members, Mitsui O.S.K. Lines and Maersk, are actively sending a signal of readiness to procure alternative green fuels and drive economies of scale.
- The price gap between green fuels and fossil fuels is very high today, estimated to be 3-4 times, and can critically hamper maritime decarbonization transition.
- Government action and policy measures will continue to be crucial for closing the price gap, advancing and scaling supply of green fuels.
Achieving a zero-emission future for shipping is key to meeting Paris Agreement climate targets. The shipping industry facilitates global trade by moving over 11 billion tonnes of goods along deep-sea routes annually. But shipping also contributes to almost 3% of global greenhouse gas (GHG) emissions and is one of the hard-to-abate industries. The reason is simple. Ships that traverse the World's oceans cannot run on cheaper renewable energy directly as many land-based industries will be able to, instead the energy will need to be converted into a dense form that is light and easy to handle on ships.
This complicates the path to decarbonization for ships and makes the cost high. Further, while the industry is working with various technologies to reduce fuel consumptions and improve energy efficiency for any shipping journey, fuel is by far the largest expense, at around 30-50% of a vessel’s operating costs and currently bunker fuels, mainly Heavy Fuel Oil (HFO) and distillates make up 99% of shipping’s energy demand. WEForum
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Monaco and Malaysia should explore palm oil biofuel for leisure marine industry
KUALA LUMPUR: Monaco and Malaysia should explore opportunities using palm oil biofuel in the leisure marine industry, said chief executive officer of the Prince Albert II of Monaco Foundation Olivier Wenden.
This would be in line with the global environmental, sustainability and governance direction to reduce and replace fossil fuel usage with a green option.
The principality, nestled along the French Riviera, is known as a yachting hub amid the evolving industry as it establishes itself as a leader with a number of initiatives aimed at reducing the environmental impact brought about by yachting.
Simultaneously, there has been a lot of talk about new technologies and green fuels, such as palm oil-based biofuel, as a means of decarbonising the superyacht industry.
The usage of second-generation biofuels such as hydrotreated vegetable oil (HVO) from palm oil mill effluents can be particularly interesting for the two major palm oil producers Malaysia and Indonesia.
“We are very keen to explore in depth (on palm oil biofuel), in the mix (fuel) and in the biomass,” he told Bernama in conjunction with Prince Albert II’s first state visit to Malaysia. The SunMY
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December 01, 2023
Indonesia raises palm-based biodiesel allocation for 2024 to 13.41 mil kl: ministry
1 Dec 2023 | Regina Koh
Indonesia will raise its allocation of palm-based biodiesel for 2024 to 13,406,498 kiloliters (kl), 1.96% higher than this year, the country’s Energy and Ministry Resources ministry said in a circular signed November 29.
The country’s biodiesel blending mandate is set to remain at B35, where approximately 35% of palm-based biodiesel is blended with 65% of diesel.
For 2023, Indonesia’s biodiesel allocation was set at 13,148,594 kl, inclusive of a 156,531 kl of reserve volume.
As of October this year, Indonesia has produced 10.75 million kl of biodiesel, of which 10.23 million kl have been distributed domestically and 152,245 kl exported, data from the country’s biodiesel producers association APROBI showed.
Earlier in November, the Indonesian Palm Oil Association (Gapki) had estimated Indonesia’s domestic palm oil consumption for biodiesel in 2023 to rise to 10.6 million mt (around 12.2 million kl), up from 9.1 million mt in 2022, with palm oil consumption for food at 10.3 million mt, up from 9.89 million mt last year. Agri Census
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Biofuel Market Revenue to Reach USD 331.81 billion by 2031 | Says Transparency Market Research, Inc.
The biofuel market experiences growth due to rising environmental concerns, pushing for renewable energy sources and reducing carbon emissions in transportation and industrial sectors.
Wilmington, Delaware, United States, Dec. 01, 2023 (GLOBE NEWSWIRE) -- Transparency Market Research Inc. - The global biofuel market is estimated to flourish at a CAGR of 11.5% from 2022 to 2031. According to Transparency Market Research, biofuel sales are slated to total US$ 331.81 billion by the end of the aforementioned assessment period.
Emerging drivers reshaping the biofuel market focus on unique factors propelling growth beyond conventional influences. Increased investment and collaborations within the aviation industry pave the way for adopting sustainable fuels. The aviation sector's commitment to reducing carbon emissions through SAF usage creates a significant demand driver for advanced biofuels derived from various feedstocks. Globe Newswire
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Stop Blaming Palm Oil for America’s Nutrition Crisis
By Jonathan Ellen
As a physician, social epidemiologist and hospital executive, it’s important to me that consumers have accurate and up-to-date nutrition information, so that they can make informed choices about the food they eat and the products they use. In particular, it’s vital that they’re aware of the kinds of lifestyle choices they can make to maximize their chances to live long, healthy lives.
Thanks to technology, consumers now have more access to such nutrition information than ever before. But the growth of the online healthcare marketplace is not without its warts. The spread of dubious misinformation and context-free discussion around perfectly safe consumer products has led many people to falsely believe that these products are harmful to them, driving anxiety and poor dietary choices that do nothing to improve their health.
Perhaps the perfect illustration of this phenomenon is the ongoing discussion about palm oil, the edible vegetable oil found in many of the foods and cosmetics we use every day, from chocolate bars to lipstick. Ideological opponents and competitors insist that consumption of this natural edible oil should be eliminated from our diets, despite overwhelming evidence that it is consistency and balance, not prohibition and deprivation, that keep us healthy. Real Clear Policy
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Growing demand for palm oil should silence campaigners against the commodity: Yusof Basiron
KUALA LUMPUR: The growing demand for palm oil should silence anti-palm oil campaigners, who have made allegations about palm oil having higher saturated levels of fatty acids and that it should not be used in the food system, said the former director-general of the Malaysian Palm Oil Board (MPOB) Tan Sri Yusof Basiron.
He said multiple collaborative research studies between MPOB and its counterparts in Australia, India, Pakistan, Egypt, the European Union (EU), the United States (US) and Canada have shown palm oil to be a nutritionally acceptable raw material for use in food.
"One particular sweet victory in our fight against the anti-palm oil campaigners was the successful outcome of collaborative research work of MPOB with Brandeis University of the US," he said during the Henri Fauconnier Lecture in the MPOB International Palm Oil Congress and Exhibition 2023 (PIPOC 2023) recently.
In that research, he said the blending of palm oil with oils such as soybean and rapeseed, when consumed as food oil, gives a better cholesterol ratio of good to bad cholesterol and it proves the suitability of palm oil use in the food industry as it reduces the trans fatty acid for food products. New Straits Times/ Bernama
Indonesia raises palm-based biodiesel allocation for 2024 to 13.41 mil kl: ministry
1 Dec 2023 | Regina Koh
Indonesia will raise its allocation of palm-based biodiesel for 2024 to 13,406,498 kiloliters (kl), 1.96% higher than this year, the country’s Energy and Ministry Resources ministry said in a circular signed November 29.
The country’s biodiesel blending mandate is set to remain at B35, where approximately 35% of palm-based biodiesel is blended with 65% of diesel.
For 2023, Indonesia’s biodiesel allocation was set at 13,148,594 kl, inclusive of a 156,531 kl of reserve volume.
As of October this year, Indonesia has produced 10.75 million kl of biodiesel, of which 10.23 million kl have been distributed domestically and 152,245 kl exported, data from the country’s biodiesel producers association APROBI showed.
Earlier in November, the Indonesian Palm Oil Association (Gapki) had estimated Indonesia’s domestic palm oil consumption for biodiesel in 2023 to rise to 10.6 million mt (around 12.2 million kl), up from 9.1 million mt in 2022, with palm oil consumption for food at 10.3 million mt, up from 9.89 million mt last year. Agri Census
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Biofuel Market Revenue to Reach USD 331.81 billion by 2031 | Says Transparency Market Research, Inc.
The biofuel market experiences growth due to rising environmental concerns, pushing for renewable energy sources and reducing carbon emissions in transportation and industrial sectors.
Wilmington, Delaware, United States, Dec. 01, 2023 (GLOBE NEWSWIRE) -- Transparency Market Research Inc. - The global biofuel market is estimated to flourish at a CAGR of 11.5% from 2022 to 2031. According to Transparency Market Research, biofuel sales are slated to total US$ 331.81 billion by the end of the aforementioned assessment period.
Emerging drivers reshaping the biofuel market focus on unique factors propelling growth beyond conventional influences. Increased investment and collaborations within the aviation industry pave the way for adopting sustainable fuels. The aviation sector's commitment to reducing carbon emissions through SAF usage creates a significant demand driver for advanced biofuels derived from various feedstocks. Globe Newswire
---------
Stop Blaming Palm Oil for America’s Nutrition Crisis
By Jonathan Ellen
As a physician, social epidemiologist and hospital executive, it’s important to me that consumers have accurate and up-to-date nutrition information, so that they can make informed choices about the food they eat and the products they use. In particular, it’s vital that they’re aware of the kinds of lifestyle choices they can make to maximize their chances to live long, healthy lives.
Thanks to technology, consumers now have more access to such nutrition information than ever before. But the growth of the online healthcare marketplace is not without its warts. The spread of dubious misinformation and context-free discussion around perfectly safe consumer products has led many people to falsely believe that these products are harmful to them, driving anxiety and poor dietary choices that do nothing to improve their health.
Perhaps the perfect illustration of this phenomenon is the ongoing discussion about palm oil, the edible vegetable oil found in many of the foods and cosmetics we use every day, from chocolate bars to lipstick. Ideological opponents and competitors insist that consumption of this natural edible oil should be eliminated from our diets, despite overwhelming evidence that it is consistency and balance, not prohibition and deprivation, that keep us healthy. Real Clear Policy
---------
Growing demand for palm oil should silence campaigners against the commodity: Yusof Basiron
KUALA LUMPUR: The growing demand for palm oil should silence anti-palm oil campaigners, who have made allegations about palm oil having higher saturated levels of fatty acids and that it should not be used in the food system, said the former director-general of the Malaysian Palm Oil Board (MPOB) Tan Sri Yusof Basiron.
He said multiple collaborative research studies between MPOB and its counterparts in Australia, India, Pakistan, Egypt, the European Union (EU), the United States (US) and Canada have shown palm oil to be a nutritionally acceptable raw material for use in food.
"One particular sweet victory in our fight against the anti-palm oil campaigners was the successful outcome of collaborative research work of MPOB with Brandeis University of the US," he said during the Henri Fauconnier Lecture in the MPOB International Palm Oil Congress and Exhibition 2023 (PIPOC 2023) recently.
In that research, he said the blending of palm oil with oils such as soybean and rapeseed, when consumed as food oil, gives a better cholesterol ratio of good to bad cholesterol and it proves the suitability of palm oil use in the food industry as it reduces the trans fatty acid for food products. New Straits Times/ Bernama
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