Palm oil news May 2025
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May 20, 2025
BURSA CARBON EXCHANGE-FIRST MALAYSIAN TECHNOLOGY-BASED CARBON CREDITS AUCTION 18 JUNE 2025
This BCX auction aims to shape the domestic carbon market landscape by facilitating a price discovery for the trading of carbon credits generated from technology-based carbon projects in Malaysia. The auction will continue to provide a reference price for carbon credit trading and set a tangible price signal for potential project developers.
Auction Details
Join us for our auction. The details are as follows: Bursa Malaysia
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Nigeria’s Palm Oil Powerhouses: Okomu, Presco Thrive Amid Global Market Shifts
As global palm oil dynamics shift, Nigeria’s agro-industrial giants, Okomu Oil Palm Company Plc and Presco Plc, are emerging as key players in the sector. Despite macroeconomic challenges—soaring inflation, naira depreciation, and rising production costs—both companies have posted record revenues and profits in 2024, reinforcing their dominance in Nigeria’s palm oil industry.
The recent decision by Indonesia, the world’s largest palm oil producer, to increase its crude palm oil (CPO) export levy from 7.5% to 10% (effective May 17, 2025) could reshape global supply chains. This move, aimed at funding domestic biofuel programs and replanting initiatives, may tighten CPO supply and push prices higher.
For Nigeria—the fifth-largest producer but still dependent on imports for nearly half of its 2 million metric tons (MMT) annual demand—this presents both a challenge and an opportunity.
Rising Demand, Soaring Profits
Okomu Oil and Presco have capitalised on strong domestic demand and favourable pricing trends. In 2024, Nigeria’s palm oil prices surged from N950,000 per metric ton to N1.3 million, driven by inflation and currency depreciation. Okomu’s export revenue skyrocketed to N22.5 billion (up from N7.95 billion in 2023), benefiting from a weaker naira that made Nigerian CPO more competitive in international markets.
Both companies operate vertically integrated models—controlling everything from plantations to refining—which reduces reliance on imported inputs and enhances profitability. Presco, for instance, is expanding its milling capacity to 90 tons per hour and refining capacity to 500 tons per day, while Okomu’s diversified revenue streams, including rubber production, provide additional stability.
Indonesia’s Levy Hike: A Boon for Nigerian Producers?
Indonesia’s export tax increase could drive global CPO prices upward, further benefiting Nigerian producers who already sell at an 89% premium over international prices due to local supply shortages. With imports becoming more expensive, Nigerian manufacturers may increasingly turn to domestic suppliers like Okomu and Presco, boosting their revenues.
Additionally, Nigeria’s CPO exports could gain traction in West African and European markets if global prices continue to rise. Edo State, home to both Okomu and Presco, contributes 12% of Nigeria’s palm oil output, with over 70,000 hectares allocated for new plantations under the Edo State Oil Palm Programme (ESOPP). This positions the region as a critical hub for future expansion.
Sustainability and Innovation
Presco’s biogas plant—the first of its kind in West Africa—exemplifies the industry’s shift toward sustainability, reducing operational costs while enhancing environmental credentials. Okomu’s rubber segment also adds resilience, providing a buffer against palm oil market volatility.
Capital Market Confidence
Investors have taken notice of both firms’ strong financials. Presco’s N100 billion bond issuance—the largest in Nigeria’s agro-sector—highlights investor confidence, offering a 23.5% yield. Meanwhile, Okomu’s 6.27% dividend yield continues to attract income-focused investors.
Challenges Ahead-MarketForcesNG
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Oil palm cultivation an economic win-win for India
Stepping up domestic palm oil production can be a win-win for India, helping it slash its edible oils import bill and boost farm prosperity. The world’s most populous country is the largest importer of the commodity, which is present in everything from soaps and shampoos to ketchup and packaged snacks. This dependence has weighed on the country’s exchequer and left it vulnerable to price volatility and supply chain disruptions.
Surging global prices last year, for instance, forced India to drastically cut back on imports. Shipments in January reached a 14-year low as the country switched to alternatives like soy to meet its edible oil needs. While these alternatives exist and have helped mitigate the impact of volatile palm oil prices, they nevertheless leave India reliant on imports. Boosting domestic palm oil production is, therefore, critical to guaranteeing India’s long-term food security.
The government recognised this and implemented the National Mission on Edible Oils-Oil Palm (NMEO-OP). It aims to increase the area under oil palm cultivation in mission mode to 10 lakh hectares by 2025-26 and then to 16.7 lakh hectares by 2029-30. If realised, it will help India achieve self-sufficiency and transform India into a global palm oil production hub. Legacy producers like Indonesia are shifting focus to the production of biodiesel, which is largely responsible for the recent surge in global palm oil prices. https://www.thehansindia.com/business/oil-palm-cultivation-an-economic-win-win-for-india-972427
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New trade deal can power Asean-Russia economic ties, say analysts
PETALING JAYA: An agreement such as the Asean-Russia Strategic Programme for Trade and Investment Cooperation is poised to revitalise economic ties between the regional bloc and Moscow, say analysts.
With its details still emerging, Azmi Hassan of Akademi Nusantara said a trade deal comes at a time when Asean nations are actively seeking alternative markets amid rising global trade tensions.
“Asean sees a great opportunity because with US president Donald Trump’s tariffs, the region needs to find new markets. China is already a well-established partner, and discussions on an Asean-European Union free trade area are still ongoing.
“However, Russia is creating a new opening for Asean to export more products, especially agricultural goods. We can also increase electronics exports and send more to the Russian market,” he told FMT.
Azmi said Malaysia is also keen for a more independent trade policy, given its stance on US sanctions, particularly after the state department blacklisted six local electronic firms last year over alleged links to Russia. FMT
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BURSA CARBON EXCHANGE-FIRST MALAYSIAN TECHNOLOGY-BASED CARBON CREDITS AUCTION 18 JUNE 2025
This BCX auction aims to shape the domestic carbon market landscape by facilitating a price discovery for the trading of carbon credits generated from technology-based carbon projects in Malaysia. The auction will continue to provide a reference price for carbon credit trading and set a tangible price signal for potential project developers.
Auction Details
Join us for our auction. The details are as follows: Bursa Malaysia
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Nigeria’s Palm Oil Powerhouses: Okomu, Presco Thrive Amid Global Market Shifts
As global palm oil dynamics shift, Nigeria’s agro-industrial giants, Okomu Oil Palm Company Plc and Presco Plc, are emerging as key players in the sector. Despite macroeconomic challenges—soaring inflation, naira depreciation, and rising production costs—both companies have posted record revenues and profits in 2024, reinforcing their dominance in Nigeria’s palm oil industry.
The recent decision by Indonesia, the world’s largest palm oil producer, to increase its crude palm oil (CPO) export levy from 7.5% to 10% (effective May 17, 2025) could reshape global supply chains. This move, aimed at funding domestic biofuel programs and replanting initiatives, may tighten CPO supply and push prices higher.
For Nigeria—the fifth-largest producer but still dependent on imports for nearly half of its 2 million metric tons (MMT) annual demand—this presents both a challenge and an opportunity.
Rising Demand, Soaring Profits
Okomu Oil and Presco have capitalised on strong domestic demand and favourable pricing trends. In 2024, Nigeria’s palm oil prices surged from N950,000 per metric ton to N1.3 million, driven by inflation and currency depreciation. Okomu’s export revenue skyrocketed to N22.5 billion (up from N7.95 billion in 2023), benefiting from a weaker naira that made Nigerian CPO more competitive in international markets.
Both companies operate vertically integrated models—controlling everything from plantations to refining—which reduces reliance on imported inputs and enhances profitability. Presco, for instance, is expanding its milling capacity to 90 tons per hour and refining capacity to 500 tons per day, while Okomu’s diversified revenue streams, including rubber production, provide additional stability.
Indonesia’s Levy Hike: A Boon for Nigerian Producers?
Indonesia’s export tax increase could drive global CPO prices upward, further benefiting Nigerian producers who already sell at an 89% premium over international prices due to local supply shortages. With imports becoming more expensive, Nigerian manufacturers may increasingly turn to domestic suppliers like Okomu and Presco, boosting their revenues.
Additionally, Nigeria’s CPO exports could gain traction in West African and European markets if global prices continue to rise. Edo State, home to both Okomu and Presco, contributes 12% of Nigeria’s palm oil output, with over 70,000 hectares allocated for new plantations under the Edo State Oil Palm Programme (ESOPP). This positions the region as a critical hub for future expansion.
Sustainability and Innovation
Presco’s biogas plant—the first of its kind in West Africa—exemplifies the industry’s shift toward sustainability, reducing operational costs while enhancing environmental credentials. Okomu’s rubber segment also adds resilience, providing a buffer against palm oil market volatility.
Capital Market Confidence
Investors have taken notice of both firms’ strong financials. Presco’s N100 billion bond issuance—the largest in Nigeria’s agro-sector—highlights investor confidence, offering a 23.5% yield. Meanwhile, Okomu’s 6.27% dividend yield continues to attract income-focused investors.
Challenges Ahead-MarketForcesNG
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Oil palm cultivation an economic win-win for India
Stepping up domestic palm oil production can be a win-win for India, helping it slash its edible oils import bill and boost farm prosperity. The world’s most populous country is the largest importer of the commodity, which is present in everything from soaps and shampoos to ketchup and packaged snacks. This dependence has weighed on the country’s exchequer and left it vulnerable to price volatility and supply chain disruptions.
Surging global prices last year, for instance, forced India to drastically cut back on imports. Shipments in January reached a 14-year low as the country switched to alternatives like soy to meet its edible oil needs. While these alternatives exist and have helped mitigate the impact of volatile palm oil prices, they nevertheless leave India reliant on imports. Boosting domestic palm oil production is, therefore, critical to guaranteeing India’s long-term food security.
The government recognised this and implemented the National Mission on Edible Oils-Oil Palm (NMEO-OP). It aims to increase the area under oil palm cultivation in mission mode to 10 lakh hectares by 2025-26 and then to 16.7 lakh hectares by 2029-30. If realised, it will help India achieve self-sufficiency and transform India into a global palm oil production hub. Legacy producers like Indonesia are shifting focus to the production of biodiesel, which is largely responsible for the recent surge in global palm oil prices. https://www.thehansindia.com/business/oil-palm-cultivation-an-economic-win-win-for-india-972427
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New trade deal can power Asean-Russia economic ties, say analysts
PETALING JAYA: An agreement such as the Asean-Russia Strategic Programme for Trade and Investment Cooperation is poised to revitalise economic ties between the regional bloc and Moscow, say analysts.
With its details still emerging, Azmi Hassan of Akademi Nusantara said a trade deal comes at a time when Asean nations are actively seeking alternative markets amid rising global trade tensions.
“Asean sees a great opportunity because with US president Donald Trump’s tariffs, the region needs to find new markets. China is already a well-established partner, and discussions on an Asean-European Union free trade area are still ongoing.
“However, Russia is creating a new opening for Asean to export more products, especially agricultural goods. We can also increase electronics exports and send more to the Russian market,” he told FMT.
Azmi said Malaysia is also keen for a more independent trade policy, given its stance on US sanctions, particularly after the state department blacklisted six local electronic firms last year over alleged links to Russia. FMT
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May 19, 2025
Closer cooperation with China to unlock new opportunities in Malaysian palm oil sector
KUALA LUMPUR, May 18 (Xinhua) -- Closer cooperation with China will unlock new commercial opportunities in the palm oil sector, Malaysian Plantation and Commodities Deputy Minister Chan Foong Hin said on Sunday.
Chan, who is leading a delegation on an official visit to China from May 18 to 24, said Malaysia aims to strengthen bilateral trade relations, unlock new commercial opportunities, and drive innovation within Malaysia's palm oil sector.
"This official visit underscores Malaysia's commitment to deepening economic ties with China, enhancing market access for palm oil products, and supporting sustainable growth across key export sectors," he said in a statement.
"China is Malaysia's third-largest importer of palm oil and palm-based products globally, accounting for 10 percent of the total palm oil export value in 2024," he added.
Chan will also be attending the Seventh Western China International Fair for Investment and Trade in Chongqing and will host a roundtable meeting with importers from Western China, noting the growing importance of the region as a major palm oil importer.
"The meeting will also discuss expanding partnerships in Western China, a region experiencing robust market growth and increasing demand for sustainable raw materials," he said Xinhua
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Self-sufficiency in edible oils remains elusive for India
India’s love affair with fried food is legendary, but the country’s edible-oil cupboard is looking alarmingly bare. In April, imports of edible oils plunged 32 per cent to just 0.86 million tonnes, according to the Solvent Extractors’ Association of India. Shipments of both palm and refined oils dried up as global prices firmed while a healthy domestic oilseed crop encouraged importers to wait and watch.
India consumes roughly 25 million tonnes of edible oil a year yet produces little more than 40 per cent of that need. The gap is bridged with palm, soybean and sunflower oils sourced largely from Malaysia, Indonesia, Argentina, Brazil, Russia and Ukraine. Such dependence leaves the kitchen—and the balance of payments—at the mercy of world markets. When global prices spiked this year, retail inflation in edible oils hit 17.4 per cent in April, the sixth consecutive month in double digits.
The squeeze is felt well beyond the frying pan. An average Indian uses about 19 litres of edible oil annually, and the commodity is a key input for soaps, cosmetics, baked goods and snack foods. When oil prices climb, the entire consumer basket feels the strain.
Palm oil is the workhorse of India’s edible-oil economy: inexpensive, versatile and present in half of the world’s packaged foods and 70 per cent of cosmetics. For decades, Malaysia and Indonesia—together responsible for 85 per cent of global supply—kept Indian shelves stocked. Lately, labour shortages and erratic weather have begun to crimp production, exposing India’s over-reliance on imported palm.
The crunch is already visible. Port and pipeline inventories slid to a five-year low of 1.35 million tonnes on 1 May, after April palm-oil arrivals fell to their weakest level in four years. Traders now expect a rebound in palm and soyoil purchases, a prospect that is already buoying Malaysian palm futures and US soyoil prices.
SEA officials insist the empty pipe should not be mistaken for an immediate shortage. Mustard-seed crushing is running at full tilt, and another 60,000-70,000 tonnes of refined oil arrive duty-free from Nepal each month, cushioning headline supply.
The real squeeze lies in costs: benchmark landed crude palm oil still trades around $1,100 a tonne—well above last year’s levels—while millers can no longer offset margins by selling oil-meals, as livestock producers have switched to cheaper DDGS generated by India’s ethanol boom. With that buffer gone, millers pass the hit straight to shoppers, keeping edible-oil CPI inflation stubbornly above 17 per cent.
Policy whiplash
Processors have urged New Delhi to “canalise” imports through state agencies such as NAFED and NCCF to smooth supply. Yet policy signals have been mixed. Last September, the government hiked import duties on crude palm, soybean and sunflower oils to 27.5 per cent (from 5.5 per cent) and on refined oils to 35.75 per cent (from 13.75 per cent), hoping higher tariffs would spur local production. Predictably, the levy failed to move farmers in the short term but did inflate retail prices.
India is hardly a minnow in oilseeds: it commands 15–20 per cent of the world’s oilseed acreage, though only 6–7 per cent of output. A NITI Aayog study pins the blame on distorted incentives—free power, cheap fertiliser and assured procurement—favouring paddy and wheat. Unless procurement agencies extend similar comfort to oilseed growers, farmers have little reason to switch crops.
The National Mission on Edible Oils
To correct that imbalance, the Centre last year launched the National Mission on Edible Oils–Oilseeds (NMEO-Oilseeds), a seven-year, Rs 10,103-crore push to raise domestic output. Critics note that India has fielded oilseed missions since the 1980s with scant success; the real test will be in execution—better seeds, extension services and assured offtake, not just budgetary outlays. Policy Circle
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Nigeria-Palm Oil: Scarcity Pushes Manufacturers’ Import Bills To N695bn
As scarcity persists in the market, soap, confectionary, cosmetics, biscuit and animal feeds producers are to pay N695 billion ($434.62 million) on imported palm oil before the end of this year.
Findings revealed that the country needed about 32 per cent or 475,000 tonnes to meet its industrial and domestic consumption.
However, despite the reduction in the price of the produce from $1,200 per tonne to $915 per tonne between January and May 2025, only N138 billion ($86 million) worth of palm oil were imported between January and May to meet industry and domestic consumption.
Data obtained from Malaysia Palm oil Board revealed that in May $11 million worth of palm oil was shipped to the country; March, $32 million; February, $23 million and January, $20 million.
In May 2025, the Nigerian Ports Authority (NPA)’s Shipping Position revealed that only 12,000 tonnes of the produce were ferried by Sea La Bamba to Lagos Port’s terminal, ENL Consortium Limited.
Following low production, manufacturers have ordered for 475,000 tonnes of the produce to meet deficit in local supply as a tonne of palm oil in Nigeria is N2.8 million, while imported one is N1.46 million leading to 48 per cent difference.
However, the unstable foreign exchange has restricted the importers to meet their demand. According to a global trade portal, Index Mundi, manufacturing firms in the country have booked for 475,000 tonnes of the produce as against the 2024’s 443, 548 tonnes imports in 2024.
Recall that between January 2023 and October, 2024, Nigerian ports took delivery of 443,548 metric tonnes of crude palm oil valued at N694 billion ($393.4 million). New TelegraphNG
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PNG landowner groups shut down Oil Palm Mill in East New Britain
Landowner groups in East New Britain in Papua New Guinea have shut down the Liguria Oil Palm Mill.
NBC reported that the closure on 12 May came six weeks after East New Britain Palm Oil Ltd, which owns the mill, failed to meet eight recommendations from the National Government.
This followed concerns from oil palm farmers alleging exploitation and price-fixing.
Pomio Oil Palm Growers Association chair Mata Akun said the mill will remain shut until the growers get a favorable response from the company.
Trade and Investment Minister Richard Maru told the East New Britain Resource Group, which owns East New Britain Palm Oil, the government would take them to court if they failed to comply with the recommendations.
The recommendations call for the repayment of about US$9 million in money owed to the landowners and oil palm growers, and for the establishment of a new market price formula that benefits the growers.
At least one other mill owned by the company - the Narragit Oil Palm Mill on the Gazelle Peninsula - is also expected to face temporary closure. RNZ
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Nextgreen expands market for palm based bio-fertiliser with export to Libya
NEXTGREEN Global Bhd is expanding beyond Malaysian shores, marking its first international market entry for bio-fertiliser exports with a strategic move into Libya.
Through its wholly owned subsidiary, Nextgreen Fertiliser Sdn Bhd, the group has signed two agreements that will facilitate the supply and distribution of its oil palm biomass-based fertiliser products in the North African nation.
As part of an exclusive distribution agreement, Nextgreen Fertiliser has appointed P Teguh Nextgreen Sdn Bhd, a 49%-owned associate company, as the exclusive distributor of its bio-fertiliser products in Libya.
The deal includes a commitment to purchase up to 25,000 metric tonnes (MT) annually, comprising 20,000MT of NexCompost — a solid fertiliser — and 5,000MT of NexBooster, the group’s liquid fertiliser.
To support the distribution framework, P Teguh Nextgreen has entered into a supply and purchase agreement with two Libyan entities: Inbat Global for Importing Agricultural Machinery and Supplies, and the Fazzan Cooperative Association for Organic Agriculture.
Under the arrangement, P Teguh Nextgreen will distribute the bio-fertilisers within Libya.
Inbat Global will manage procurement and importation, acting as the authorised supplier to Fazzan Cooperative Association. Fazzan Cooperative Association will then distribute the products across the country on a non-exclusive basis.
Nextgreen MD Datuk Lim Thiam Huat said the venture into Libya marks a major step for the company’s global ambitions.
“This marks a significant step forward for Nextgreen, as Libya becomes our first international market for bio-fertiliser exports. The Malaysian Reserve
Closer cooperation with China to unlock new opportunities in Malaysian palm oil sector
KUALA LUMPUR, May 18 (Xinhua) -- Closer cooperation with China will unlock new commercial opportunities in the palm oil sector, Malaysian Plantation and Commodities Deputy Minister Chan Foong Hin said on Sunday.
Chan, who is leading a delegation on an official visit to China from May 18 to 24, said Malaysia aims to strengthen bilateral trade relations, unlock new commercial opportunities, and drive innovation within Malaysia's palm oil sector.
"This official visit underscores Malaysia's commitment to deepening economic ties with China, enhancing market access for palm oil products, and supporting sustainable growth across key export sectors," he said in a statement.
"China is Malaysia's third-largest importer of palm oil and palm-based products globally, accounting for 10 percent of the total palm oil export value in 2024," he added.
Chan will also be attending the Seventh Western China International Fair for Investment and Trade in Chongqing and will host a roundtable meeting with importers from Western China, noting the growing importance of the region as a major palm oil importer.
"The meeting will also discuss expanding partnerships in Western China, a region experiencing robust market growth and increasing demand for sustainable raw materials," he said Xinhua
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Self-sufficiency in edible oils remains elusive for India
India’s love affair with fried food is legendary, but the country’s edible-oil cupboard is looking alarmingly bare. In April, imports of edible oils plunged 32 per cent to just 0.86 million tonnes, according to the Solvent Extractors’ Association of India. Shipments of both palm and refined oils dried up as global prices firmed while a healthy domestic oilseed crop encouraged importers to wait and watch.
India consumes roughly 25 million tonnes of edible oil a year yet produces little more than 40 per cent of that need. The gap is bridged with palm, soybean and sunflower oils sourced largely from Malaysia, Indonesia, Argentina, Brazil, Russia and Ukraine. Such dependence leaves the kitchen—and the balance of payments—at the mercy of world markets. When global prices spiked this year, retail inflation in edible oils hit 17.4 per cent in April, the sixth consecutive month in double digits.
The squeeze is felt well beyond the frying pan. An average Indian uses about 19 litres of edible oil annually, and the commodity is a key input for soaps, cosmetics, baked goods and snack foods. When oil prices climb, the entire consumer basket feels the strain.
Palm oil is the workhorse of India’s edible-oil economy: inexpensive, versatile and present in half of the world’s packaged foods and 70 per cent of cosmetics. For decades, Malaysia and Indonesia—together responsible for 85 per cent of global supply—kept Indian shelves stocked. Lately, labour shortages and erratic weather have begun to crimp production, exposing India’s over-reliance on imported palm.
The crunch is already visible. Port and pipeline inventories slid to a five-year low of 1.35 million tonnes on 1 May, after April palm-oil arrivals fell to their weakest level in four years. Traders now expect a rebound in palm and soyoil purchases, a prospect that is already buoying Malaysian palm futures and US soyoil prices.
SEA officials insist the empty pipe should not be mistaken for an immediate shortage. Mustard-seed crushing is running at full tilt, and another 60,000-70,000 tonnes of refined oil arrive duty-free from Nepal each month, cushioning headline supply.
The real squeeze lies in costs: benchmark landed crude palm oil still trades around $1,100 a tonne—well above last year’s levels—while millers can no longer offset margins by selling oil-meals, as livestock producers have switched to cheaper DDGS generated by India’s ethanol boom. With that buffer gone, millers pass the hit straight to shoppers, keeping edible-oil CPI inflation stubbornly above 17 per cent.
Policy whiplash
Processors have urged New Delhi to “canalise” imports through state agencies such as NAFED and NCCF to smooth supply. Yet policy signals have been mixed. Last September, the government hiked import duties on crude palm, soybean and sunflower oils to 27.5 per cent (from 5.5 per cent) and on refined oils to 35.75 per cent (from 13.75 per cent), hoping higher tariffs would spur local production. Predictably, the levy failed to move farmers in the short term but did inflate retail prices.
India is hardly a minnow in oilseeds: it commands 15–20 per cent of the world’s oilseed acreage, though only 6–7 per cent of output. A NITI Aayog study pins the blame on distorted incentives—free power, cheap fertiliser and assured procurement—favouring paddy and wheat. Unless procurement agencies extend similar comfort to oilseed growers, farmers have little reason to switch crops.
The National Mission on Edible Oils
To correct that imbalance, the Centre last year launched the National Mission on Edible Oils–Oilseeds (NMEO-Oilseeds), a seven-year, Rs 10,103-crore push to raise domestic output. Critics note that India has fielded oilseed missions since the 1980s with scant success; the real test will be in execution—better seeds, extension services and assured offtake, not just budgetary outlays. Policy Circle
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Nigeria-Palm Oil: Scarcity Pushes Manufacturers’ Import Bills To N695bn
As scarcity persists in the market, soap, confectionary, cosmetics, biscuit and animal feeds producers are to pay N695 billion ($434.62 million) on imported palm oil before the end of this year.
Findings revealed that the country needed about 32 per cent or 475,000 tonnes to meet its industrial and domestic consumption.
However, despite the reduction in the price of the produce from $1,200 per tonne to $915 per tonne between January and May 2025, only N138 billion ($86 million) worth of palm oil were imported between January and May to meet industry and domestic consumption.
Data obtained from Malaysia Palm oil Board revealed that in May $11 million worth of palm oil was shipped to the country; March, $32 million; February, $23 million and January, $20 million.
In May 2025, the Nigerian Ports Authority (NPA)’s Shipping Position revealed that only 12,000 tonnes of the produce were ferried by Sea La Bamba to Lagos Port’s terminal, ENL Consortium Limited.
Following low production, manufacturers have ordered for 475,000 tonnes of the produce to meet deficit in local supply as a tonne of palm oil in Nigeria is N2.8 million, while imported one is N1.46 million leading to 48 per cent difference.
However, the unstable foreign exchange has restricted the importers to meet their demand. According to a global trade portal, Index Mundi, manufacturing firms in the country have booked for 475,000 tonnes of the produce as against the 2024’s 443, 548 tonnes imports in 2024.
Recall that between January 2023 and October, 2024, Nigerian ports took delivery of 443,548 metric tonnes of crude palm oil valued at N694 billion ($393.4 million). New TelegraphNG
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PNG landowner groups shut down Oil Palm Mill in East New Britain
Landowner groups in East New Britain in Papua New Guinea have shut down the Liguria Oil Palm Mill.
NBC reported that the closure on 12 May came six weeks after East New Britain Palm Oil Ltd, which owns the mill, failed to meet eight recommendations from the National Government.
This followed concerns from oil palm farmers alleging exploitation and price-fixing.
Pomio Oil Palm Growers Association chair Mata Akun said the mill will remain shut until the growers get a favorable response from the company.
Trade and Investment Minister Richard Maru told the East New Britain Resource Group, which owns East New Britain Palm Oil, the government would take them to court if they failed to comply with the recommendations.
The recommendations call for the repayment of about US$9 million in money owed to the landowners and oil palm growers, and for the establishment of a new market price formula that benefits the growers.
At least one other mill owned by the company - the Narragit Oil Palm Mill on the Gazelle Peninsula - is also expected to face temporary closure. RNZ
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Nextgreen expands market for palm based bio-fertiliser with export to Libya
NEXTGREEN Global Bhd is expanding beyond Malaysian shores, marking its first international market entry for bio-fertiliser exports with a strategic move into Libya.
Through its wholly owned subsidiary, Nextgreen Fertiliser Sdn Bhd, the group has signed two agreements that will facilitate the supply and distribution of its oil palm biomass-based fertiliser products in the North African nation.
As part of an exclusive distribution agreement, Nextgreen Fertiliser has appointed P Teguh Nextgreen Sdn Bhd, a 49%-owned associate company, as the exclusive distributor of its bio-fertiliser products in Libya.
The deal includes a commitment to purchase up to 25,000 metric tonnes (MT) annually, comprising 20,000MT of NexCompost — a solid fertiliser — and 5,000MT of NexBooster, the group’s liquid fertiliser.
To support the distribution framework, P Teguh Nextgreen has entered into a supply and purchase agreement with two Libyan entities: Inbat Global for Importing Agricultural Machinery and Supplies, and the Fazzan Cooperative Association for Organic Agriculture.
Under the arrangement, P Teguh Nextgreen will distribute the bio-fertilisers within Libya.
Inbat Global will manage procurement and importation, acting as the authorised supplier to Fazzan Cooperative Association. Fazzan Cooperative Association will then distribute the products across the country on a non-exclusive basis.
Nextgreen MD Datuk Lim Thiam Huat said the venture into Libya marks a major step for the company’s global ambitions.
“This marks a significant step forward for Nextgreen, as Libya becomes our first international market for bio-fertiliser exports. The Malaysian Reserve
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May 18, 2025
Indonesia Sets Mandatory 5% Bioethanol In Fuel Blends From 2026
The Indonesian Ministry of Energy and Mineral Resources has set a target for the mandatory use of five per cent bioethanol (E5) in fuel blends, which will begin in 2026.
Xinhua reported the ministry’s new renewable energy and energy conservation director-general Eniya Listiani Dewi as saying that the mandate will be implemented gradually, starting with Java Island.
The phased implementation of E5 is due to limited bioethanol supply. While Indonesia has 13 sugar and supporting industries, only three currently produce ethanol that meets fuel-grade specifications.
“Only three industries can produce fuel-grade ethanol, with a total output of 60,000 kilolitres,” Dewi said today.
Indonesia will require one million to 1.2 million kilolitres annually to meet the five per cent bioethanol mandate. The government plans to address this gap by boosting production from ethanol-producing sources, including sugarcane, cassava, and palm sugar.
The move aligns with Indonesia’s broader goal of reducing fossil fuel dependency and transitioning to clean energy to curb carbon emissions.Business TodayMY
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The impact of SALCRA’s land development initiatives on Sarawak's natives
IN the heart of Sarawak, a transformation has been going on. The once untouched jungles are now thriving plantations, thanks to the efforts of the Sarawak Land Consolidation and Rehabilitation Authority (SALCRA). However, this journey towards progress has not been without its challenges.
It is a story of scepticism turned into belief, of rumours dispelled by dividends, and of once-sceptical hearts now filled with gratitude. The journey of land development in Sarawak has not only changed landscapes but also lives.
Initially, I felt sad that many longhouses in Sarawak, even those situated closer to town centres, were not reaping the full benefits of development. This was partly due to a negative mindset among the locals, which hindered their ability to embrace progress fully.
Their limited understanding of the true meaning of development and progress had further impeded their ability to fully benefit from these advancements, despite their proximity to them.
Many harboured misconceptions, particularly about land development initiatives by SALCRA (Sarawak Land Consolidation and Rehabilitation Authority), viewing them as attempts by the government to seize native lands.
This mistrust led to tensions among the local population, especially during the mid-1990s, fuelled by coffee shop gossip and rumours cautioning landowners against such projects.
Ironically, much of this fear-mongering came from individuals who did not own any native customary land themselves. They spread baseless rumours that undermined the intentions of these development efforts. Initially, some landowners believed these rumours.
However, by 1997, many of them were laughing their way to the bank as they began receiving substantial dividends from their land, which had been cultivated with oil palm plantations under SALCRA’s development programmes. Their NCR (Native Customary Rights) lands were converted to Mixed Zone status, allowing for more lucrative land use.
Today, in the Melupa area of Saratok, landowners are enjoying the benefits of SALCRA’s development initiatives. My family owns three plots of land affected by this programme, and my two brothers have been handling our accounts diligently.
While I have yet to receive my share of the dividends, they have assured me that my portion is accounted for, and I am looking forward to receiving it soon.
Over the past five years, the Melupa area has been transformed into a thriving palm oil plantation, replacing the once-untouched jungles with highly productive land.
It is now difficult to locate certain landmarks from my childhood, such as Letung Naga (Dragon Lake), where my late father once claimed to have seen a dragon-like figure hissing on the lake’s surface during his early morning rubber-tapping days. Sarawak Tribune
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Malaysian Deputy Minister leads delegation to China to boost palm oil ties
KUALA LUMPUR (May 18): Malaysia is strengthening its strategic trade ties with China through a week-long official mission led by Deputy Minister of Plantation and Commodities Datuk Chan Foong Hin, aimed at unlocking new market potential for palm oil and promoting innovation in downstream products.
The mission, which runs from Sunday until May 24, will focus on enhancing bilateral commercial cooperation, expanding palm oil applications in Chinese industries and cuisines, and deepening Malaysia’s presence in the high-growth markets of Western China.
In a statement on Sunday, the Plantation and Commodities Ministry said the delegation will begin its visit in Shanghai, where Chan will officiate the 20th Anniversary Commemoration Ceremony of the Palm Oil Research and Technical Service Institute of MPOB (PORTSIM) — the Malaysian Palm Oil Board’s (MPOB) China office.
The Ministry of Plantation and Commodities secretary general Datuk Yusran Shah Mohd Yusof and MPOB director general Datuk Dr Ahmad Parveez Ghulam Kadir will also be in attendance.
Established in 2005, PORTSIM serves as Malaysia’s overseas research and development hub, facilitating technology transfer, product innovation and the development of new palm oil applications in China.
The ministry said that through strategic collaborations with Chinese institutions and industries, PORTSIM plays a vital role in promoting palm-based products, including food, oleochemicals, and detergents, contributing significantly to Malaysia’s downstream expansion in the Chinese market.
Following the Shanghai leg, it said the delegation will travel to Western China, including the cities of Chengdu and Chongqing, to conduct company visits and roundtable discussions with state-owned enterprises and local industry stakeholders.
The ministry said these engagements aim to enhance strategic collaboration and expand trade networks, with a particular emphasis on promoting palm oil applications in popular Chinese cuisines, such as mala hotpot, a renowned dish from Chongqing and Sichuan province.
"A key highlight of the visit will be Chan attending the 7th Western China International Fair for Investment and Trade (WCIFIT) and hosting the roundtable meetings with importers from Western China, held at the Chongqing International Expo Centre," it said.
In addition, the ministry said he will hold a courtesy meeting with the Chongqing Municipal People’s Government to explore broader cooperation in trade and investment, with a focus on the palm oil industry and other key Malaysian commodities.
The meeting will also discuss expanding partnerships in Western China, a region experiencing robust market growth and increasing demand for sustainable raw materials.
China is Malaysia’s third-largest importer of palm oil and palm-based products globally, accounting for 10 per cent of the total palm oil export value in 2024.
Last year, Malaysia’s exports of these products to China reached RM10.57 billion, marking a 5.11% increase from RM10.06 billion in 2023.
According to Oil World statistics (2024), Malaysia accounts for 26.7% of the market share in China. The Edge
Indonesia Sets Mandatory 5% Bioethanol In Fuel Blends From 2026
The Indonesian Ministry of Energy and Mineral Resources has set a target for the mandatory use of five per cent bioethanol (E5) in fuel blends, which will begin in 2026.
Xinhua reported the ministry’s new renewable energy and energy conservation director-general Eniya Listiani Dewi as saying that the mandate will be implemented gradually, starting with Java Island.
The phased implementation of E5 is due to limited bioethanol supply. While Indonesia has 13 sugar and supporting industries, only three currently produce ethanol that meets fuel-grade specifications.
“Only three industries can produce fuel-grade ethanol, with a total output of 60,000 kilolitres,” Dewi said today.
Indonesia will require one million to 1.2 million kilolitres annually to meet the five per cent bioethanol mandate. The government plans to address this gap by boosting production from ethanol-producing sources, including sugarcane, cassava, and palm sugar.
The move aligns with Indonesia’s broader goal of reducing fossil fuel dependency and transitioning to clean energy to curb carbon emissions.Business TodayMY
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The impact of SALCRA’s land development initiatives on Sarawak's natives
IN the heart of Sarawak, a transformation has been going on. The once untouched jungles are now thriving plantations, thanks to the efforts of the Sarawak Land Consolidation and Rehabilitation Authority (SALCRA). However, this journey towards progress has not been without its challenges.
It is a story of scepticism turned into belief, of rumours dispelled by dividends, and of once-sceptical hearts now filled with gratitude. The journey of land development in Sarawak has not only changed landscapes but also lives.
Initially, I felt sad that many longhouses in Sarawak, even those situated closer to town centres, were not reaping the full benefits of development. This was partly due to a negative mindset among the locals, which hindered their ability to embrace progress fully.
Their limited understanding of the true meaning of development and progress had further impeded their ability to fully benefit from these advancements, despite their proximity to them.
Many harboured misconceptions, particularly about land development initiatives by SALCRA (Sarawak Land Consolidation and Rehabilitation Authority), viewing them as attempts by the government to seize native lands.
This mistrust led to tensions among the local population, especially during the mid-1990s, fuelled by coffee shop gossip and rumours cautioning landowners against such projects.
Ironically, much of this fear-mongering came from individuals who did not own any native customary land themselves. They spread baseless rumours that undermined the intentions of these development efforts. Initially, some landowners believed these rumours.
However, by 1997, many of them were laughing their way to the bank as they began receiving substantial dividends from their land, which had been cultivated with oil palm plantations under SALCRA’s development programmes. Their NCR (Native Customary Rights) lands were converted to Mixed Zone status, allowing for more lucrative land use.
Today, in the Melupa area of Saratok, landowners are enjoying the benefits of SALCRA’s development initiatives. My family owns three plots of land affected by this programme, and my two brothers have been handling our accounts diligently.
While I have yet to receive my share of the dividends, they have assured me that my portion is accounted for, and I am looking forward to receiving it soon.
Over the past five years, the Melupa area has been transformed into a thriving palm oil plantation, replacing the once-untouched jungles with highly productive land.
It is now difficult to locate certain landmarks from my childhood, such as Letung Naga (Dragon Lake), where my late father once claimed to have seen a dragon-like figure hissing on the lake’s surface during his early morning rubber-tapping days. Sarawak Tribune
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Malaysian Deputy Minister leads delegation to China to boost palm oil ties
KUALA LUMPUR (May 18): Malaysia is strengthening its strategic trade ties with China through a week-long official mission led by Deputy Minister of Plantation and Commodities Datuk Chan Foong Hin, aimed at unlocking new market potential for palm oil and promoting innovation in downstream products.
The mission, which runs from Sunday until May 24, will focus on enhancing bilateral commercial cooperation, expanding palm oil applications in Chinese industries and cuisines, and deepening Malaysia’s presence in the high-growth markets of Western China.
In a statement on Sunday, the Plantation and Commodities Ministry said the delegation will begin its visit in Shanghai, where Chan will officiate the 20th Anniversary Commemoration Ceremony of the Palm Oil Research and Technical Service Institute of MPOB (PORTSIM) — the Malaysian Palm Oil Board’s (MPOB) China office.
The Ministry of Plantation and Commodities secretary general Datuk Yusran Shah Mohd Yusof and MPOB director general Datuk Dr Ahmad Parveez Ghulam Kadir will also be in attendance.
Established in 2005, PORTSIM serves as Malaysia’s overseas research and development hub, facilitating technology transfer, product innovation and the development of new palm oil applications in China.
The ministry said that through strategic collaborations with Chinese institutions and industries, PORTSIM plays a vital role in promoting palm-based products, including food, oleochemicals, and detergents, contributing significantly to Malaysia’s downstream expansion in the Chinese market.
Following the Shanghai leg, it said the delegation will travel to Western China, including the cities of Chengdu and Chongqing, to conduct company visits and roundtable discussions with state-owned enterprises and local industry stakeholders.
The ministry said these engagements aim to enhance strategic collaboration and expand trade networks, with a particular emphasis on promoting palm oil applications in popular Chinese cuisines, such as mala hotpot, a renowned dish from Chongqing and Sichuan province.
"A key highlight of the visit will be Chan attending the 7th Western China International Fair for Investment and Trade (WCIFIT) and hosting the roundtable meetings with importers from Western China, held at the Chongqing International Expo Centre," it said.
In addition, the ministry said he will hold a courtesy meeting with the Chongqing Municipal People’s Government to explore broader cooperation in trade and investment, with a focus on the palm oil industry and other key Malaysian commodities.
The meeting will also discuss expanding partnerships in Western China, a region experiencing robust market growth and increasing demand for sustainable raw materials.
China is Malaysia’s third-largest importer of palm oil and palm-based products globally, accounting for 10 per cent of the total palm oil export value in 2024.
Last year, Malaysia’s exports of these products to China reached RM10.57 billion, marking a 5.11% increase from RM10.06 billion in 2023.
According to Oil World statistics (2024), Malaysia accounts for 26.7% of the market share in China. The Edge
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May 17, 2025
Global Witness accuse European banks of financing deforestation in South America
Campaigners are calling for policymakers to include finance providers in forthcoming EU regulations banning deforestation-linked imports, after claims that banks including Santander raised $1.3bn for a firm linked to large-scale forest clearance in South America.
Global Witness has this week published an investigation into financial support provided to Cresud, a large Argentinian firm which sells, owns and manages land with the aim of increasing agri-food commodity production.
Previous analysis of satellite imagery has linked Cresud to more than 170,000 hectares of deforestation in South America since 2001 – an area size more than three times larger than Madrid, Spain. Cresud-owned lands are used for commodities including soy, wheat, sunflowers and cattle.
Local communities in Argentina, Brazil, Paraguay and Bolivia have spoken out about the adverse environmental and community impacts company’s expansion.
Global Witness estimates that Argentinian and international banks collaborated to collectively raise $1.3bn for Cresud since 2011. The majority of this funding ($850m) was raised after the start of 2018.
Santander’s involvement
Global Witness is drawing particular attention to the role of Santander, which frequently acted as lead or co-lead underwriter for Cresud’s bond issuances. Santander has additionally provided loans directly to Cresud in the past.
Santander is notably a member of the Innovative Finance for the Amazon, Cerrado and Chaco (IFACC) initiative. It is also one of five co-founders of Biomas, a company focused on forest protection and restoration in Brazil.
Additionally, Santander’s Environmental, Social and Climate Change Risk Policy stipulates that it should not provide direct investment to clients:
Agribusiness in the Amazon biome
Santander told Global Witness that its report “contains imprecisions and potential information regarding our policies that is not accurate”.
A Santander spokesperson told edie that all lending decisions are “subject to a strict policy framework”.
The spokesperson elaborated: “As a global financial institution, Banco Santander understands the role we play in supporting clients in their transition, fostering inclusive and economic growth for communities and businesses…. We also recognise that an orderly and just transition depends on economic growth to enable the required investments, and on governments setting policy frameworks that support and incentivise the market to drive change.”
An opportunity to close regulatory loopholes ahead of COP30
Global Witness senior campaigner Giulia Bondi said the findings “show the urgent need for coordinated international action, including in the EU, to stop banks from investing in and profiting from companies that are destroying vital forests.”
Bondia added: “It could not be clearer: left to their own devices, they will keep bankrolling major deforesters like Cresud.”
EU lawmakers are set to review whether the bloc’s forthcoming Regulation on Deforestation-free Products (EUDR) should place requirements on investors in forest-risk commodities.
EUDR, in its current form, mandates that products derived from beef, cocoa, coffee, palm oil, natural rubber, soy or wood must be “deforestation-free” and legally produced to be placed on the EU market.
Compliance burdens fall on importing businesses plus those upstream, including manufacturers and retailers.
After a one-year delay, EUDR is set to apply to large businesses from 30 December 2025. It will then be expanded in phases to smaller firms.
Bondia and her team believe that now is an opportune moment to address loopholes in the Regulation for the financial sector. World leaders will notably meet in Brazil this November for the UN’s 30th annual climate summit, COP30, where finance for forest conservation and restoration is set to be a key focus. EDIE
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Anwar’s Russia visit enhances bilateral ties, explores new opportunities
KAZAN (Tatarstan), May 17 — The strong bilateral ties between Malaysia and the Russian Federation have been further reinforced through Prime Minister Datuk Seri Anwar Ibrahim’s official visit, which ended yesterday.
Anwar said at the final media conference of his visit that the close ties between the two countries would be translated into more conducive trade relations, including the exploration of new sectors.
Malaysia, he added, is set to benefit from the high tourism potential from Russia through the Russian airline Aeroflot, which is expected to resume flights to Malaysia soon.
“During my meeting with (Russian) President Vladimir Putin, he openly stated an interest in further expanding the halal network as well as Islamic banking and finance,” he told the Malaysian media covering the official visit, which began on Tuesday.
Anwar, who is also the finance minister, led a delegation that included Foreign Minister Datuk Seri Mohamad Hasan, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu, Science, Technology and Innovation Minister Chang Li Kang, Higher Education Minister Datuk Seri Zambry Abdul Kadir and Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
Anwar said that throughout the visit, he and his delegation met with 24 companies in Russia that expressed interest in expanding their businesses in Malaysia and also held two business events with companies wanting to learn more about trade aspects in the country.
“I also held a meeting with Prime Minister Mikhail Mishustin to discuss bilateral issues, including agro-commodities, agriculture, cocoa, oil palm and issues that hinder close cooperation. All of these will be resolved efficiently.
“But certainly our focus is on palm oil and palm-based products. We also emphasised the chemical industry, furniture, retail and infrastructure development, including digital and AI,” he said.
Anwar said during his visit to the Republic of Tatarstan, he was deeply impressed by the country’s environment, which upholds Islamic values while maintaining strong relations with the Orthodox Church.
Regarding the downing of Malaysia Airlines Flight MH17 over Ukraine in 2014, Anwar said he had the opportunity to raise the issue of the results of the findings released by the International Civil Aviation Organisation (ICAO) during his meeting with Putin.
“I happened to be among the first heads of government to meet with President Putin immediately after the report was released.
“But President Putin’s answer was clear, that firstly, he (Putin) expressed regret over the tragedy and extended condolences to all affected families, and secondly, he remains open to any further investigation if needed and that Russia will cooperate,” he said.
Recently, the ICAO concluded that Russia was responsible for the 2014 downing of flight MH17, which killed all 298 people on board, including 196 Dutch citizens, 43 Malaysians, and 38 Australians.
The decision was announced in separate statements by the Dutch and Australian governments on May 12, which described it as an important step towards justice and accountability for the victims and their families. Selangor Journal
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Indonesia backs WTO efforts to ease trade tensions
Jakarta (ANTARA) - Indonesian Trade Minister Budi Santoso voiced support for the World Trade Organization (WTO) to placate trade tensions and discourage countries from taking unilateral maneuvers detrimental to the multilateral trade system.
He conveyed Indonesia's concerns about the resurgence of protectionist practices during a bilateral meeting with WTO Director-General Ngozi Okonjo-Iweala on the sidelines of an APEC session in Jeju, South Korea, on Thursday (May 15).
"At the meeting, I reaffirmed Indonesia's support for the WTO as a rule-based multilateral trade regime to maintain its credibility and strengthen its role in resolving trade issues, easing trade tensions, and averting acts that could harm the multilateral trade system," he noted in a statement here on Friday.
Santoso further spoke highly of the WTO, praising its commitment to fostering a suitable global ecosystem for transparent, non-discriminatory, and fair competition.
The minister then stressed that Indonesia finds it crucial to assist the WTO in implementing reforms, emphasizing its special and differential treatment principle dedicated to helping developing countries.
"We believe that a reform at the WTO will help the organization strengthen its relevance and effectiveness in dealing with current and future global challenges," he remarked.
Meanwhile, Director-General Okonjo-Iweala lauded member states of the Association of Southeast Asian Nations (ASEAN), including Indonesia, for their constructive and peaceful reactions to ongoing unfavorable global trade trends.
She emphasized the importance of countries refraining from retaliatory measures and placing dialogue as the first resort to resolve international trade disputes.
During the meeting, the former Nigerian minister of finance also urged Indonesia and other countries to back the WTO's transformation initiative, intended to strengthen its effectiveness and relevance. Antara News
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Integrating Credible Sustainability Standards into Trade Policy
ISEAL and IISD are organizing a 1-day interactive workshop that will bring together policy-makers from developed and developing countries, trade experts, World Trade Organization staff, international organizations, non-government organizations, and representatives from sustainability standards.
This workshop will serve as a platform for dialogue among these actors to foster mutual learning and build capacity to integrate credible voluntary sustainability standards into trade policy, thereby supporting sustainable trade objectives. IISD
Global Witness accuse European banks of financing deforestation in South America
Campaigners are calling for policymakers to include finance providers in forthcoming EU regulations banning deforestation-linked imports, after claims that banks including Santander raised $1.3bn for a firm linked to large-scale forest clearance in South America.
Global Witness has this week published an investigation into financial support provided to Cresud, a large Argentinian firm which sells, owns and manages land with the aim of increasing agri-food commodity production.
Previous analysis of satellite imagery has linked Cresud to more than 170,000 hectares of deforestation in South America since 2001 – an area size more than three times larger than Madrid, Spain. Cresud-owned lands are used for commodities including soy, wheat, sunflowers and cattle.
Local communities in Argentina, Brazil, Paraguay and Bolivia have spoken out about the adverse environmental and community impacts company’s expansion.
Global Witness estimates that Argentinian and international banks collaborated to collectively raise $1.3bn for Cresud since 2011. The majority of this funding ($850m) was raised after the start of 2018.
Santander’s involvement
Global Witness is drawing particular attention to the role of Santander, which frequently acted as lead or co-lead underwriter for Cresud’s bond issuances. Santander has additionally provided loans directly to Cresud in the past.
Santander is notably a member of the Innovative Finance for the Amazon, Cerrado and Chaco (IFACC) initiative. It is also one of five co-founders of Biomas, a company focused on forest protection and restoration in Brazil.
Additionally, Santander’s Environmental, Social and Climate Change Risk Policy stipulates that it should not provide direct investment to clients:
- Extracting native tropical wood species not certified to FSC
- Processing palm oil without RSPO membership or certification
- To support developments in forested peatlands in high-risk geographies
- The policy further states that the bank should provide enhanced due diligence and client engagement for:
Agribusiness in the Amazon biome
- Forestry plantations in forests listed as protected by official bodies
- Developments in forested areas impacted by mass deforestation or forest fires in the past five years
- Activities which expand agricultural land or plantations to the detriment of natural forests
- Activities with an impact on tropical forests
- Global Witness claims that Santander increased its indirect financial support for Cresud after updating this policy.
Santander told Global Witness that its report “contains imprecisions and potential information regarding our policies that is not accurate”.
A Santander spokesperson told edie that all lending decisions are “subject to a strict policy framework”.
The spokesperson elaborated: “As a global financial institution, Banco Santander understands the role we play in supporting clients in their transition, fostering inclusive and economic growth for communities and businesses…. We also recognise that an orderly and just transition depends on economic growth to enable the required investments, and on governments setting policy frameworks that support and incentivise the market to drive change.”
An opportunity to close regulatory loopholes ahead of COP30
Global Witness senior campaigner Giulia Bondi said the findings “show the urgent need for coordinated international action, including in the EU, to stop banks from investing in and profiting from companies that are destroying vital forests.”
Bondia added: “It could not be clearer: left to their own devices, they will keep bankrolling major deforesters like Cresud.”
EU lawmakers are set to review whether the bloc’s forthcoming Regulation on Deforestation-free Products (EUDR) should place requirements on investors in forest-risk commodities.
EUDR, in its current form, mandates that products derived from beef, cocoa, coffee, palm oil, natural rubber, soy or wood must be “deforestation-free” and legally produced to be placed on the EU market.
Compliance burdens fall on importing businesses plus those upstream, including manufacturers and retailers.
After a one-year delay, EUDR is set to apply to large businesses from 30 December 2025. It will then be expanded in phases to smaller firms.
Bondia and her team believe that now is an opportune moment to address loopholes in the Regulation for the financial sector. World leaders will notably meet in Brazil this November for the UN’s 30th annual climate summit, COP30, where finance for forest conservation and restoration is set to be a key focus. EDIE
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Anwar’s Russia visit enhances bilateral ties, explores new opportunities
KAZAN (Tatarstan), May 17 — The strong bilateral ties between Malaysia and the Russian Federation have been further reinforced through Prime Minister Datuk Seri Anwar Ibrahim’s official visit, which ended yesterday.
Anwar said at the final media conference of his visit that the close ties between the two countries would be translated into more conducive trade relations, including the exploration of new sectors.
Malaysia, he added, is set to benefit from the high tourism potential from Russia through the Russian airline Aeroflot, which is expected to resume flights to Malaysia soon.
“During my meeting with (Russian) President Vladimir Putin, he openly stated an interest in further expanding the halal network as well as Islamic banking and finance,” he told the Malaysian media covering the official visit, which began on Tuesday.
Anwar, who is also the finance minister, led a delegation that included Foreign Minister Datuk Seri Mohamad Hasan, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu, Science, Technology and Innovation Minister Chang Li Kang, Higher Education Minister Datuk Seri Zambry Abdul Kadir and Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
Anwar said that throughout the visit, he and his delegation met with 24 companies in Russia that expressed interest in expanding their businesses in Malaysia and also held two business events with companies wanting to learn more about trade aspects in the country.
“I also held a meeting with Prime Minister Mikhail Mishustin to discuss bilateral issues, including agro-commodities, agriculture, cocoa, oil palm and issues that hinder close cooperation. All of these will be resolved efficiently.
“But certainly our focus is on palm oil and palm-based products. We also emphasised the chemical industry, furniture, retail and infrastructure development, including digital and AI,” he said.
Anwar said during his visit to the Republic of Tatarstan, he was deeply impressed by the country’s environment, which upholds Islamic values while maintaining strong relations with the Orthodox Church.
Regarding the downing of Malaysia Airlines Flight MH17 over Ukraine in 2014, Anwar said he had the opportunity to raise the issue of the results of the findings released by the International Civil Aviation Organisation (ICAO) during his meeting with Putin.
“I happened to be among the first heads of government to meet with President Putin immediately after the report was released.
“But President Putin’s answer was clear, that firstly, he (Putin) expressed regret over the tragedy and extended condolences to all affected families, and secondly, he remains open to any further investigation if needed and that Russia will cooperate,” he said.
Recently, the ICAO concluded that Russia was responsible for the 2014 downing of flight MH17, which killed all 298 people on board, including 196 Dutch citizens, 43 Malaysians, and 38 Australians.
The decision was announced in separate statements by the Dutch and Australian governments on May 12, which described it as an important step towards justice and accountability for the victims and their families. Selangor Journal
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Indonesia backs WTO efforts to ease trade tensions
Jakarta (ANTARA) - Indonesian Trade Minister Budi Santoso voiced support for the World Trade Organization (WTO) to placate trade tensions and discourage countries from taking unilateral maneuvers detrimental to the multilateral trade system.
He conveyed Indonesia's concerns about the resurgence of protectionist practices during a bilateral meeting with WTO Director-General Ngozi Okonjo-Iweala on the sidelines of an APEC session in Jeju, South Korea, on Thursday (May 15).
"At the meeting, I reaffirmed Indonesia's support for the WTO as a rule-based multilateral trade regime to maintain its credibility and strengthen its role in resolving trade issues, easing trade tensions, and averting acts that could harm the multilateral trade system," he noted in a statement here on Friday.
Santoso further spoke highly of the WTO, praising its commitment to fostering a suitable global ecosystem for transparent, non-discriminatory, and fair competition.
The minister then stressed that Indonesia finds it crucial to assist the WTO in implementing reforms, emphasizing its special and differential treatment principle dedicated to helping developing countries.
"We believe that a reform at the WTO will help the organization strengthen its relevance and effectiveness in dealing with current and future global challenges," he remarked.
Meanwhile, Director-General Okonjo-Iweala lauded member states of the Association of Southeast Asian Nations (ASEAN), including Indonesia, for their constructive and peaceful reactions to ongoing unfavorable global trade trends.
She emphasized the importance of countries refraining from retaliatory measures and placing dialogue as the first resort to resolve international trade disputes.
During the meeting, the former Nigerian minister of finance also urged Indonesia and other countries to back the WTO's transformation initiative, intended to strengthen its effectiveness and relevance. Antara News
---------
Integrating Credible Sustainability Standards into Trade Policy
ISEAL and IISD are organizing a 1-day interactive workshop that will bring together policy-makers from developed and developing countries, trade experts, World Trade Organization staff, international organizations, non-government organizations, and representatives from sustainability standards.
This workshop will serve as a platform for dialogue among these actors to foster mutual learning and build capacity to integrate credible voluntary sustainability standards into trade policy, thereby supporting sustainable trade objectives. IISD
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May 16, 2025
Indonesia palm oil group GAPKI urges government to delay levy hike
JAKARTA : The Indonesia Palm Oil Association, GAPKI, on Friday urged the government to delay a planned hike in the palm oil export levy warning it could harm competitiveness amid global trade uncertainties due to the U.S. tariffs and geopolitical tension.
Indonesia is due to raise its palm oil export levy to between 4.75 per cent and 10 per cent from May 17 to help fund a biodiesel blending mandate as well as a palm oil replanting programme. The levy currently stands at 3 per cent to 7.5 per cent.
"The situation is full of uncertainties and it is a big risk to launch a policy that will impact competitiveness of Indonesia's palm oil exports," GAPKI said in a letter addressed to Finance Minister Sri Mulyani Indrawati.
Indonesia, the world's biggest palm oil producer, is facing proposed U.S. tariffs of 32 per cent, while number two producer Malaysia faces a 24 per cent rate. The tariffs have been put on hold until July.
"It is feared that this will make Indonesian palm oil exports increasingly uncompetitive compared to Malaysia, especially for the U.S. market which is currently dominated by Indonesia," the group said.
Malaysia charges an export duty of between 3 per cent and 10 per cent, depending on the price of palm oil. For May, the duty has been set at 10 per cent.
Sri Mulyani Indrawati said previously that Indonesia would adjust its crude palm oil export tax to reduce the burden on exporters from U.S. tariffs. The tax is separate to the levy.
Meanwhile, heightened tension between major palm oil buyers India and Pakistan has sparked concern about reduced demand, GAPKI said.
"There is no permanent ceasefire between India and Pakistan yet that had caused buyers from both nations to delay purchase of crude palm oil and its derivatives," the group added.
The finance ministry and coordinating ministry of economics did not immediately respond to a request for comments. CNA
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Indonesia’s export levies to benefit Malaysian palm oil exports
PETALING JAYA: The local palm oil sector is expected to benefit from Indonesia’s recent hike in crude palm oil (CPO) and refined palm oil export levies, says RHB Research.
The revision, effective tomorrow, will see Indonesia increasing its CPO export levy to 10% from 7.5%, while the levy on refined palm oil will rise from 4.5% to 7.5%, and for biodiesel from 3% to 4.75%.
RHB Research said in a report the increase in CPO export levies is expected to generate higher revenue for Indonesia’s biodiesel fund agency (BPDP), enabling it to support the country’s biodiesel mandate and the national replanting programme.
“The revision of the export tax to 10%, together with the provision of the subsidy to only the public service obligation segment, will ensure that BPDP has enough funds to fully sustain B40 biodiesel, even in the light of falling crude oil prices.
“We estimate that with a 10% levy rate, BPDP will have sufficient funds to subsidise biodiesel, provided gas oil prices do not drop below US$49 per barrel from the current US$82, assuming all other factors remain constant,” the research house noted.
Although the levy hike will lower average selling prices for Indonesian planters by RM108 per tonne at a benchmark price of RM4,300 per tonne, RHB Research believes it could lift global CPO prices, which would directly benefit Malaysian producers.
“This is in light of a more stable biodiesel mandate, which will offset the negative impact to Indonesian planters,” it added.
RHB Research said the change is also projected to narrow the pricing edge of Indonesian downstream refiners.
The research house has estimated that the net margin advantage for downstream refiners in Indonesia should marginally drop from US$84 per tonne to US$80 per tonne at a CPO price of MYR4,000, making Malaysia’s downstream products more competitive in export markets.
However, assuming that there are no changes to CPO prices, RHB Research expects the impact to Indonesian planters would be earnings being lower by between 6% and 12%, depending on forward sales strategies and percentage of local sales.
RHB Research maintained its earnings forecast for the sector.
The research house also maintained its “overweight” call on the plantation sector, citing supportive fundamentals from biodiesel demand and a stable-to-firm CPO price environment.
For Malaysian planters, effective CPO prices remained more stable with SD Guthrie Bhd, Johor Plantations Group Bhd and Sarawak Oil Palms Bhd well-positioned to benefit. The StarMY
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No decision yet on EUDR low-risk status for Malaysian palm oil, benchmarking ongoing, says envoy
KUALA LUMPUR (May 16): The European Union has yet to determine whether Malaysia will be classified as a low-risk country under its upcoming country benchmarking system for the Deforestation Regulation (EUDR), said EU Ambassador to Malaysia Rafael Daerr.
The EUDR’s country benchmarking system will classify nations as low, standard, or high risk based on their deforestation levels, to purportedly minimise the EU’s contribution to global deforestation and forest degradation.
The first official list is expected by June 30.
As a major producer of palm oil, rubber, timber, and cocoa, Malaysia may face trade restrictions under the EUDR, which mandates that seven key commodities — palm oil, rubber, timber, cocoa, cattle, soy, and coffee, as well as their derivatives — be deforestation-free, legally sourced, and supported by due diligence.
Responding to persistent calls from Malaysian authorities, including the Malaysian Palm Oil Board (MPOB) for low risk recognition, Daerr said the outcome of the EU’s assessment is still under discussion.
“What’s important to understand is that, by default, all countries are classified as standard risk, and only those with, for example, a very small palm oil industry may be considered low risk because it is easier to control, trace, and monitor.
“If the country is small and there is little or no growth in the industry, making the risk of deforestation low, the EU might consider classifying it as low risk after a closer look,” he told Bernama in an exclusive interview.
He said Malaysia’s large and complex landscape presents traceability challenges, which remain a significant consideration for the authorities conducting the benchmarking assessment.
“It is a huge and wonderful country with extensive forest cover, which by nature makes tracking and traceability challenging. We also encounter varying data, and with different regions operating under different traceability systems. This could be a reason why the relevant authorities may consider it too early to assign a definitive classification,” he said.
Daerr emphasised that the risk categorisation does not change the EUDR requirements.
“It’s simply an indication to member states on how to control batches of imports, and it does not raise or lower the standards required for those imports,” he said.
Compliance readiness
Malaysia’s palm oil sector, he said, is already ahead in terms of EUDR compliance readiness.
“In terms of how far Malaysia is to deliver EUDR-compliant palm oil, I would argue that you are at the very forefront here in the industry,” he added.
The EU currently imports 10% of Malaysian palm oil, and Daerr said it is open to importing more, provided the supply is fully compliant with the EUDR.
He said the EU recognises the efforts Malaysia had made in improving the sustainability of its palm oil sector, and is prepared to expand trade if those standards continue to align with EUDR requirements.
“Malaysian palm oil sold to Europe fetches higher prices than in other markets, as the EU values high end, sustainable products, and its consumers are willing to pay more for responsibly sourced, environmentally friendly goods. Although only about 10% of Malaysian palm oil is exported to Europe, the profit from that segment is significantly higher than its volume share, as the EU pays premium prices for sustainably produced palm oil,” he said.
He added that Malaysian exporters, particularly those already engaged with the EU market, are largely prepared to meet the regulation's requirements. “At various conferences I have attended here in Malaysia, the focus has consistently been on sustainable production aligned with ESG (environmental, social and governance) goals,” he said.
Daerr also urged Malaysian stakeholders to promote the country’s sustainable palm oil more actively in Europe to counter lingering misconceptions. “One of the possibilities would be to run a campaign in Europe to show that there is a different kind of palm oil being produced here. There is room for development, and my encouragement is not to be too defensive about it,” he said.
The EUDR, which will take effect from the end of this year for large companies, requires producers of palm oil and six other commodities to ensure their products are not linked to deforestation after Dec 31, 2020. The Edge
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Indonesia palm oil group GAPKI urges government to delay levy hike
JAKARTA : The Indonesia Palm Oil Association, GAPKI, on Friday urged the government to delay a planned hike in the palm oil export levy warning it could harm competitiveness amid global trade uncertainties due to the U.S. tariffs and geopolitical tension.
Indonesia is due to raise its palm oil export levy to between 4.75 per cent and 10 per cent from May 17 to help fund a biodiesel blending mandate as well as a palm oil replanting programme. The levy currently stands at 3 per cent to 7.5 per cent.
"The situation is full of uncertainties and it is a big risk to launch a policy that will impact competitiveness of Indonesia's palm oil exports," GAPKI said in a letter addressed to Finance Minister Sri Mulyani Indrawati.
Indonesia, the world's biggest palm oil producer, is facing proposed U.S. tariffs of 32 per cent, while number two producer Malaysia faces a 24 per cent rate. The tariffs have been put on hold until July.
"It is feared that this will make Indonesian palm oil exports increasingly uncompetitive compared to Malaysia, especially for the U.S. market which is currently dominated by Indonesia," the group said.
Malaysia charges an export duty of between 3 per cent and 10 per cent, depending on the price of palm oil. For May, the duty has been set at 10 per cent.
Sri Mulyani Indrawati said previously that Indonesia would adjust its crude palm oil export tax to reduce the burden on exporters from U.S. tariffs. The tax is separate to the levy.
Meanwhile, heightened tension between major palm oil buyers India and Pakistan has sparked concern about reduced demand, GAPKI said.
"There is no permanent ceasefire between India and Pakistan yet that had caused buyers from both nations to delay purchase of crude palm oil and its derivatives," the group added.
The finance ministry and coordinating ministry of economics did not immediately respond to a request for comments. CNA
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Indonesia’s export levies to benefit Malaysian palm oil exports
PETALING JAYA: The local palm oil sector is expected to benefit from Indonesia’s recent hike in crude palm oil (CPO) and refined palm oil export levies, says RHB Research.
The revision, effective tomorrow, will see Indonesia increasing its CPO export levy to 10% from 7.5%, while the levy on refined palm oil will rise from 4.5% to 7.5%, and for biodiesel from 3% to 4.75%.
RHB Research said in a report the increase in CPO export levies is expected to generate higher revenue for Indonesia’s biodiesel fund agency (BPDP), enabling it to support the country’s biodiesel mandate and the national replanting programme.
“The revision of the export tax to 10%, together with the provision of the subsidy to only the public service obligation segment, will ensure that BPDP has enough funds to fully sustain B40 biodiesel, even in the light of falling crude oil prices.
“We estimate that with a 10% levy rate, BPDP will have sufficient funds to subsidise biodiesel, provided gas oil prices do not drop below US$49 per barrel from the current US$82, assuming all other factors remain constant,” the research house noted.
Although the levy hike will lower average selling prices for Indonesian planters by RM108 per tonne at a benchmark price of RM4,300 per tonne, RHB Research believes it could lift global CPO prices, which would directly benefit Malaysian producers.
“This is in light of a more stable biodiesel mandate, which will offset the negative impact to Indonesian planters,” it added.
RHB Research said the change is also projected to narrow the pricing edge of Indonesian downstream refiners.
The research house has estimated that the net margin advantage for downstream refiners in Indonesia should marginally drop from US$84 per tonne to US$80 per tonne at a CPO price of MYR4,000, making Malaysia’s downstream products more competitive in export markets.
However, assuming that there are no changes to CPO prices, RHB Research expects the impact to Indonesian planters would be earnings being lower by between 6% and 12%, depending on forward sales strategies and percentage of local sales.
RHB Research maintained its earnings forecast for the sector.
The research house also maintained its “overweight” call on the plantation sector, citing supportive fundamentals from biodiesel demand and a stable-to-firm CPO price environment.
For Malaysian planters, effective CPO prices remained more stable with SD Guthrie Bhd, Johor Plantations Group Bhd and Sarawak Oil Palms Bhd well-positioned to benefit. The StarMY
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No decision yet on EUDR low-risk status for Malaysian palm oil, benchmarking ongoing, says envoy
KUALA LUMPUR (May 16): The European Union has yet to determine whether Malaysia will be classified as a low-risk country under its upcoming country benchmarking system for the Deforestation Regulation (EUDR), said EU Ambassador to Malaysia Rafael Daerr.
The EUDR’s country benchmarking system will classify nations as low, standard, or high risk based on their deforestation levels, to purportedly minimise the EU’s contribution to global deforestation and forest degradation.
The first official list is expected by June 30.
As a major producer of palm oil, rubber, timber, and cocoa, Malaysia may face trade restrictions under the EUDR, which mandates that seven key commodities — palm oil, rubber, timber, cocoa, cattle, soy, and coffee, as well as their derivatives — be deforestation-free, legally sourced, and supported by due diligence.
Responding to persistent calls from Malaysian authorities, including the Malaysian Palm Oil Board (MPOB) for low risk recognition, Daerr said the outcome of the EU’s assessment is still under discussion.
“What’s important to understand is that, by default, all countries are classified as standard risk, and only those with, for example, a very small palm oil industry may be considered low risk because it is easier to control, trace, and monitor.
“If the country is small and there is little or no growth in the industry, making the risk of deforestation low, the EU might consider classifying it as low risk after a closer look,” he told Bernama in an exclusive interview.
He said Malaysia’s large and complex landscape presents traceability challenges, which remain a significant consideration for the authorities conducting the benchmarking assessment.
“It is a huge and wonderful country with extensive forest cover, which by nature makes tracking and traceability challenging. We also encounter varying data, and with different regions operating under different traceability systems. This could be a reason why the relevant authorities may consider it too early to assign a definitive classification,” he said.
Daerr emphasised that the risk categorisation does not change the EUDR requirements.
“It’s simply an indication to member states on how to control batches of imports, and it does not raise or lower the standards required for those imports,” he said.
Compliance readiness
Malaysia’s palm oil sector, he said, is already ahead in terms of EUDR compliance readiness.
“In terms of how far Malaysia is to deliver EUDR-compliant palm oil, I would argue that you are at the very forefront here in the industry,” he added.
The EU currently imports 10% of Malaysian palm oil, and Daerr said it is open to importing more, provided the supply is fully compliant with the EUDR.
He said the EU recognises the efforts Malaysia had made in improving the sustainability of its palm oil sector, and is prepared to expand trade if those standards continue to align with EUDR requirements.
“Malaysian palm oil sold to Europe fetches higher prices than in other markets, as the EU values high end, sustainable products, and its consumers are willing to pay more for responsibly sourced, environmentally friendly goods. Although only about 10% of Malaysian palm oil is exported to Europe, the profit from that segment is significantly higher than its volume share, as the EU pays premium prices for sustainably produced palm oil,” he said.
He added that Malaysian exporters, particularly those already engaged with the EU market, are largely prepared to meet the regulation's requirements. “At various conferences I have attended here in Malaysia, the focus has consistently been on sustainable production aligned with ESG (environmental, social and governance) goals,” he said.
Daerr also urged Malaysian stakeholders to promote the country’s sustainable palm oil more actively in Europe to counter lingering misconceptions. “One of the possibilities would be to run a campaign in Europe to show that there is a different kind of palm oil being produced here. There is room for development, and my encouragement is not to be too defensive about it,” he said.
The EUDR, which will take effect from the end of this year for large companies, requires producers of palm oil and six other commodities to ensure their products are not linked to deforestation after Dec 31, 2020. The Edge
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May 15, 2025
Indonesia eyes new palm oil export markets in Africa, East Asia
JAKARTA, May 14 (Xinhua) -- The Indonesian government has eyed new export markets for palm oil in African and East Asian countries as one of Indonesia's mitigation steps following tensions between India and Pakistan, the Ministry of Agriculture said on Wednesday.
"We will open up new markets, especially in Africa and others ... we will focus on opening new markets," said Ardi Praptono, director of oil palm and various palm crops at the Directorate General of Plantations, Ministry of Agriculture.
Highlighting Indonesia's status as one of the world's top palm oil producers, Ardi stressed the significance of early mitigation, even though the India-Pakistan conflict has not yet directly impacted Indonesia's palm oil exports.
Indonesia's crude palm oil production is projected to reach 53.6 million tons in 2025, according to the Indonesian Palm Oil Association. Xinhua
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Project in Malaysian Borneo hopes to prove that forests and oil palms can coexist
But most of the floodplain has been converted to agriculture, mainly oil palm, leaving a “very fragmented, very degraded,” landscape, Ancrenaz says.
“We still have about 50,000 hectares [124,000 acres] of protected forest on both sides of the river, but they are isolated from one another, so a lot of wildlife is stuck in these forest islands. Unfortunately, they are not enough to sustain viable populations of orangutan and other species,” says Ancrenaz, who co-founded the community-based environmental NGO with Isabelle Lackman 30 years ago with a mission to conserve Borneo’s iconic wildlife. Mongabay
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PhytoGaia to unveil next-gen palm bioactives for clean & sustainable beauty
PhytoGaia, a leading innovator in palm-derived bioactives for wellness, beauty, and nutrition, will showcase its latest clean-label, sustainably sourced ingredients at two major upcoming events: NYSCC Suppliers’ Day 2025 (June 3 – 4) at the Jacob K. Javits Convention Center and the Sustainable Cosmetics Summit 2025 (June 5 – 6) at Dream Downtown by Hyatt in New York City.
In partnership with the Malaysian Palm Oil Council (MPOC), PhytoGaia will feature its cutting-edge sustainably-sourced natural phytonutrients both oral and topical formulation, namely:-
STGaia® – a novel and unique synergistic combination of plant squalene and tocotrienols complex for anti-aging and skin beauty specifically for deep skin nourishment and barrier support.
TocoGaia® – a full-spectrum tocotrienol complex from palm fruits, known for its powerful antioxidant, hair growth/hair health, anti-inflammatory and anti-aging properties.
These novel natural ingredients are extracted without the use of solvents and chemicals and are compliant with the EU’s stringent specifications for BaP/PAH (Benzo(a)Pyrene and Polyaromatic Hydrocarbon), which are ideal for formulators seeking clean, eco-conscious solutions without compromising efficacy. Neutraceutical Reivew
Indonesia eyes new palm oil export markets in Africa, East Asia
JAKARTA, May 14 (Xinhua) -- The Indonesian government has eyed new export markets for palm oil in African and East Asian countries as one of Indonesia's mitigation steps following tensions between India and Pakistan, the Ministry of Agriculture said on Wednesday.
"We will open up new markets, especially in Africa and others ... we will focus on opening new markets," said Ardi Praptono, director of oil palm and various palm crops at the Directorate General of Plantations, Ministry of Agriculture.
Highlighting Indonesia's status as one of the world's top palm oil producers, Ardi stressed the significance of early mitigation, even though the India-Pakistan conflict has not yet directly impacted Indonesia's palm oil exports.
Indonesia's crude palm oil production is projected to reach 53.6 million tons in 2025, according to the Indonesian Palm Oil Association. Xinhua
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Project in Malaysian Borneo hopes to prove that forests and oil palms can coexist
- Monoculture palm oil production has come at the cost of rainforest habitat, particularly in Malaysia and Indonesia.
- Researchers are conducting experimental trials in Malaysian Borneo to see if native trees can be planted in oil palm plantations without significantly reducing palm oil yields.
- While still in the initial stages, the experiment is so far showing there are no detrimental effects to oil palm growth.
- In fact, interplanting with native forest trees may benefit oil palm, with the researchers finding oil palm trees had more leaf growth in agroforestry plots than in monoculture ones.
But most of the floodplain has been converted to agriculture, mainly oil palm, leaving a “very fragmented, very degraded,” landscape, Ancrenaz says.
“We still have about 50,000 hectares [124,000 acres] of protected forest on both sides of the river, but they are isolated from one another, so a lot of wildlife is stuck in these forest islands. Unfortunately, they are not enough to sustain viable populations of orangutan and other species,” says Ancrenaz, who co-founded the community-based environmental NGO with Isabelle Lackman 30 years ago with a mission to conserve Borneo’s iconic wildlife. Mongabay
----------
PhytoGaia to unveil next-gen palm bioactives for clean & sustainable beauty
PhytoGaia, a leading innovator in palm-derived bioactives for wellness, beauty, and nutrition, will showcase its latest clean-label, sustainably sourced ingredients at two major upcoming events: NYSCC Suppliers’ Day 2025 (June 3 – 4) at the Jacob K. Javits Convention Center and the Sustainable Cosmetics Summit 2025 (June 5 – 6) at Dream Downtown by Hyatt in New York City.
In partnership with the Malaysian Palm Oil Council (MPOC), PhytoGaia will feature its cutting-edge sustainably-sourced natural phytonutrients both oral and topical formulation, namely:-
STGaia® – a novel and unique synergistic combination of plant squalene and tocotrienols complex for anti-aging and skin beauty specifically for deep skin nourishment and barrier support.
TocoGaia® – a full-spectrum tocotrienol complex from palm fruits, known for its powerful antioxidant, hair growth/hair health, anti-inflammatory and anti-aging properties.
These novel natural ingredients are extracted without the use of solvents and chemicals and are compliant with the EU’s stringent specifications for BaP/PAH (Benzo(a)Pyrene and Polyaromatic Hydrocarbon), which are ideal for formulators seeking clean, eco-conscious solutions without compromising efficacy. Neutraceutical Reivew
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May 14, 2025
Sumitomo signs MOU to develop South East Asia bioenergy projects
Sumitomo Corporation and reNIKOLA have signed a Memorandum of Understanding (MOU) for the joint development of bioenergy (biogas and biomethane) projects in Malaysia and Indonesia.
The signing ceremony took place at the Malaysia Pavilion at Expo 2025 Osaka, Kansai, Japan, witnessed by the Secretary General of Malaysia's Ministry of Science, Technology and Innovation.
This partnership with reNIKOLA is another strategic step for Sumitomo Corporation in building a next-generation business that contributes to a carbon-neutral society by establishing a sustainable energy cycle and advancing decarbonisation, said the company.
reNIKOLA is a Malaysia-based company primarily engaged in solar power and biogas power generation, with multiple assets already owned and under development.
Leveraging its expertise in biogas power generation, reNIKOLA is expanding into the biomethane business.
As part of this expansion, the company had established Special Purpose Companies (SPCs) in Indonesia, the world's largest producer of palm oil.
In both Malaysia and Indonesia, the companies will work together to convert palm oil production residues into bioenergy (biogas/biomethane).
The partnership aims to expand the supply of sustainable, fossil fuel-independent energy in both countries and promote energy transition.
By combining Sumitomo Corporation's business network across Asia with reNIKOLA's extensive experience in bioenergy, the partners aim to expand this business across Malaysia, Indonesia and neighbouring countries. Bioenergy Insight
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AISIN TAKAOKA Begins Demonstration Experiment Using Biofuel “Bio-M-Coke” on Production Lines of Partner Companies
AISIN TAKAOKA CO., LTD., the subsidiary of AISIN CORPORATION has begun a demonstration experiment using the biofuel “Bio-M-Coke*1,” developed by AISIN TAKAOKA, on the production lines of a total of 10 partner companies*2.
AISIN TAKAOKA has previously conducted demonstration experiments*3 on its own production lines and has completed evaluations confirming that cokes*4 used in the iron melting process (cupola furnace*5) can be fully replaced with the biofuel “Bio-M-Coke.” Looking ahead, the company plans to expand external demonstrations by the fiscal year 2025, and based on the results of these external demonstrations, it aims to start sales around autumn 2025.
“Bio-M-Coke” is a biofuel produced from palm kernel shells, a byproduct of the process of refining palm oil. While it emits CO2 during fuel combustion, the oil palm absorbs CO2 during its growth, making it a carbon-neutral fuel. AISIN TAKAOKA is preparing for production of “Bio-M-Coke” by establishing a local subsidiary, ATP BIO INDONESIA (West Kalimantan, Indonesia), in August 2024. The company aims to contribute to reducing the overall environmental impact on society by promoting sustainable energy to address the challenges of CO2 emissions in the casting industry.
*1: Brand name registration pending
*2: Partner companies include Toyota Industries Corporation (Kariya, Aichi), IJTT Co., Ltd. (Yokohama, Kanagawa), Nissan Motor Co., Ltd. (Yokohama, Kanagawa), and Kurimoto, Ltd. (Osaka, Osaka), among others, totaling 10 companies.
*3: AISIN TAKAOKA Demonstration Results
Implementation Details: Demonstration experiment replacing cokes with “Bio-M-Coke” 100%
Implementation Period: January 2024 - Ongoing (as of April 2025)
Implementation Location: AISIN TAKAOKA CO., LTD.
Demonstration Results: Conducted a demonstration experiment with 100% replacement at both the headquarters factory (FCD material) and the Kira factory (FC material), confirming stable operations without changes in equipment status, molten metal temperature, or molten metal composition.
*4: Cupola furnace: A vertical furnace used for melting cast iron for manufacturing castings
*5: Cokes: A fuel that remains after the dry distillation (carbonization) of coal, leaving only the carbon portion AISIN
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Indonesia Hikes Palm Export Levy to Boost Biofuel, Replanting
Indonesia raised its export levy on crude palm oil from 7.5% to 10% starting May 17 in a widely expected move to fund a biofuel program and replanting efforts in the world’s largest producer.
The government also increased levies for outbound shipments of other palm oil products, according to a regulation issued by the finance ministry.
The policy is expected to bring in higher revenue for Indonesia’s plantation fund management agency, known as BPDP, which uses most of the funds to support the nation’s expanded biodiesel blending program and replanting old plantations.
The Southeast Asian nation increased blending of palm-based biodiesel in gasoil to 40% in January. Only about half the biodiesel allocation this year will be subsidized as higher prices of palm oil have made the program more costly.
The hike could push palm oil prices higher as exporters shift the additional burden to buyers. Exporters must also pay a separate export tax to the nation’s customs department.
Higher levies on other products included 9.5% on crude palm olein, up from 6%, while refined bleached and deodorized palm olein went from 4.5% to 7.5%, and biodiesel from 3% to 4.75%, according to the regulation. Bloomberg
---------
Indonesia's palm oil association GAPKI invites all stakeholders to prevent wildfires
JAKARTA - The Indonesian Palm Oil Entrepreneurs Association (Gapki) invites all industry stakeholders to consolidate jointly to prevent forest and land fires (karhutla), especially in the face of the upcoming dry season.
Secretary General of Gapki M Hadi Sugeng stated that the prevention and handling of forest and land fires does require the cooperation of many parties, and currently 752 companies that are members of Gapki have set standards in handling forest and land fires.
"Although not all palm oil companies are members of Gapki, we still embrace all stakeholders of this industry so that they are together in preventing forest and land fires," said Hadi Sugeng quoting Antara.
He stated that Gapki had taken precautions against forest and landscape-based companies by involving palm oil companies, government agencies, and agencies related to and involving the Fire Concerned Society (MPA).
In addition to socialization, he said again, responding to the wishes of the Ministry of Environment (KLH), Gapki member companies also standardize human resources through training and certification.
Other forest and land fires prevention, namely by making weather modifications and making appeals and standards for complete facilities and infrastructure in the prevention and handling of forest and land fires.
In addition, forest and land fires prevention includes mapping hotspot-prone areas and ensuring the availability of water sources in the area. Palm oil companies have also utilized drone technology with a flying range of more than 30 kilometers. VOI
---------
Is palm oil unhealthy, and does it have any benefits?
Palm oil derives from the fruit of the oil palm tree. Its high fat content has led to concerns that it may raise cholesterol levels and increase the risk of cardiovascular disease (CVD). However, there is little scientific evidence to support such concerns.
There are two main types of palm oil: red and white. The latter has undergone a process of refinement, bleaching, and deodorization and contains fewer micronutrients like beta carotenes and vitamin E. As such, researchers consider red palm oil to be the healthier option.
This article considers whether palm oil is bad for health and whether it may have any health benefits. It also provides some nutritional information on palm oil and outlines some important environmental considerations when choosing palm oil and palm oil products.
Authors of a 2020 review note that consuming palm oil in moderation and as a part of a balanced diet does not present known health risks.
People may be concerned that palm oil’s saturated fat content can have adverse health effects. A 13.6-gram (g) tablespoon of palm oil containsTrusted Source 13.6 g of fat, of which 6.7 g is saturated fat. Saturated fats are known to increaseTrusted Source cholesterol levels, which can increase the risk of heart disease.
Interestingly, the research surrounding the consumption of palm oil and its effect on blood cholesterol levels suggests that palm oil may have some benefits.
A 2021 review investigated the effect of palmitic acid on cholesterol levels. Palmitic acid is a saturated fatty acid that derives from both vegetable and animal sources. The review concluded that palmitic acid from palm oil and other vegetable sources has less effect on blood cholesterol levels and low-density lipoprotein (LDL) or “bad cholesterol” than palmitic acid from animal sources.
The review also added that a chemical compound in palm oil called tocotrienols actually lowered blood cholesterol levels by 7% to 38%.
An earlier 2018 systematic reviewTrusted Source also found no evidence to support an association between palm oil consumption and CVD. However, the reviewers noted difficulties in quantifying the true association between the two variables and called for further research in this area. Medical News Today
Sumitomo signs MOU to develop South East Asia bioenergy projects
Sumitomo Corporation and reNIKOLA have signed a Memorandum of Understanding (MOU) for the joint development of bioenergy (biogas and biomethane) projects in Malaysia and Indonesia.
The signing ceremony took place at the Malaysia Pavilion at Expo 2025 Osaka, Kansai, Japan, witnessed by the Secretary General of Malaysia's Ministry of Science, Technology and Innovation.
This partnership with reNIKOLA is another strategic step for Sumitomo Corporation in building a next-generation business that contributes to a carbon-neutral society by establishing a sustainable energy cycle and advancing decarbonisation, said the company.
reNIKOLA is a Malaysia-based company primarily engaged in solar power and biogas power generation, with multiple assets already owned and under development.
Leveraging its expertise in biogas power generation, reNIKOLA is expanding into the biomethane business.
As part of this expansion, the company had established Special Purpose Companies (SPCs) in Indonesia, the world's largest producer of palm oil.
In both Malaysia and Indonesia, the companies will work together to convert palm oil production residues into bioenergy (biogas/biomethane).
The partnership aims to expand the supply of sustainable, fossil fuel-independent energy in both countries and promote energy transition.
By combining Sumitomo Corporation's business network across Asia with reNIKOLA's extensive experience in bioenergy, the partners aim to expand this business across Malaysia, Indonesia and neighbouring countries. Bioenergy Insight
---------
AISIN TAKAOKA Begins Demonstration Experiment Using Biofuel “Bio-M-Coke” on Production Lines of Partner Companies
AISIN TAKAOKA CO., LTD., the subsidiary of AISIN CORPORATION has begun a demonstration experiment using the biofuel “Bio-M-Coke*1,” developed by AISIN TAKAOKA, on the production lines of a total of 10 partner companies*2.
AISIN TAKAOKA has previously conducted demonstration experiments*3 on its own production lines and has completed evaluations confirming that cokes*4 used in the iron melting process (cupola furnace*5) can be fully replaced with the biofuel “Bio-M-Coke.” Looking ahead, the company plans to expand external demonstrations by the fiscal year 2025, and based on the results of these external demonstrations, it aims to start sales around autumn 2025.
“Bio-M-Coke” is a biofuel produced from palm kernel shells, a byproduct of the process of refining palm oil. While it emits CO2 during fuel combustion, the oil palm absorbs CO2 during its growth, making it a carbon-neutral fuel. AISIN TAKAOKA is preparing for production of “Bio-M-Coke” by establishing a local subsidiary, ATP BIO INDONESIA (West Kalimantan, Indonesia), in August 2024. The company aims to contribute to reducing the overall environmental impact on society by promoting sustainable energy to address the challenges of CO2 emissions in the casting industry.
*1: Brand name registration pending
*2: Partner companies include Toyota Industries Corporation (Kariya, Aichi), IJTT Co., Ltd. (Yokohama, Kanagawa), Nissan Motor Co., Ltd. (Yokohama, Kanagawa), and Kurimoto, Ltd. (Osaka, Osaka), among others, totaling 10 companies.
*3: AISIN TAKAOKA Demonstration Results
Implementation Details: Demonstration experiment replacing cokes with “Bio-M-Coke” 100%
Implementation Period: January 2024 - Ongoing (as of April 2025)
Implementation Location: AISIN TAKAOKA CO., LTD.
Demonstration Results: Conducted a demonstration experiment with 100% replacement at both the headquarters factory (FCD material) and the Kira factory (FC material), confirming stable operations without changes in equipment status, molten metal temperature, or molten metal composition.
*4: Cupola furnace: A vertical furnace used for melting cast iron for manufacturing castings
*5: Cokes: A fuel that remains after the dry distillation (carbonization) of coal, leaving only the carbon portion AISIN
---------
Indonesia Hikes Palm Export Levy to Boost Biofuel, Replanting
Indonesia raised its export levy on crude palm oil from 7.5% to 10% starting May 17 in a widely expected move to fund a biofuel program and replanting efforts in the world’s largest producer.
The government also increased levies for outbound shipments of other palm oil products, according to a regulation issued by the finance ministry.
The policy is expected to bring in higher revenue for Indonesia’s plantation fund management agency, known as BPDP, which uses most of the funds to support the nation’s expanded biodiesel blending program and replanting old plantations.
The Southeast Asian nation increased blending of palm-based biodiesel in gasoil to 40% in January. Only about half the biodiesel allocation this year will be subsidized as higher prices of palm oil have made the program more costly.
The hike could push palm oil prices higher as exporters shift the additional burden to buyers. Exporters must also pay a separate export tax to the nation’s customs department.
Higher levies on other products included 9.5% on crude palm olein, up from 6%, while refined bleached and deodorized palm olein went from 4.5% to 7.5%, and biodiesel from 3% to 4.75%, according to the regulation. Bloomberg
---------
Indonesia's palm oil association GAPKI invites all stakeholders to prevent wildfires
JAKARTA - The Indonesian Palm Oil Entrepreneurs Association (Gapki) invites all industry stakeholders to consolidate jointly to prevent forest and land fires (karhutla), especially in the face of the upcoming dry season.
Secretary General of Gapki M Hadi Sugeng stated that the prevention and handling of forest and land fires does require the cooperation of many parties, and currently 752 companies that are members of Gapki have set standards in handling forest and land fires.
"Although not all palm oil companies are members of Gapki, we still embrace all stakeholders of this industry so that they are together in preventing forest and land fires," said Hadi Sugeng quoting Antara.
He stated that Gapki had taken precautions against forest and landscape-based companies by involving palm oil companies, government agencies, and agencies related to and involving the Fire Concerned Society (MPA).
In addition to socialization, he said again, responding to the wishes of the Ministry of Environment (KLH), Gapki member companies also standardize human resources through training and certification.
Other forest and land fires prevention, namely by making weather modifications and making appeals and standards for complete facilities and infrastructure in the prevention and handling of forest and land fires.
In addition, forest and land fires prevention includes mapping hotspot-prone areas and ensuring the availability of water sources in the area. Palm oil companies have also utilized drone technology with a flying range of more than 30 kilometers. VOI
---------
Is palm oil unhealthy, and does it have any benefits?
Palm oil derives from the fruit of the oil palm tree. Its high fat content has led to concerns that it may raise cholesterol levels and increase the risk of cardiovascular disease (CVD). However, there is little scientific evidence to support such concerns.
There are two main types of palm oil: red and white. The latter has undergone a process of refinement, bleaching, and deodorization and contains fewer micronutrients like beta carotenes and vitamin E. As such, researchers consider red palm oil to be the healthier option.
This article considers whether palm oil is bad for health and whether it may have any health benefits. It also provides some nutritional information on palm oil and outlines some important environmental considerations when choosing palm oil and palm oil products.
Authors of a 2020 review note that consuming palm oil in moderation and as a part of a balanced diet does not present known health risks.
People may be concerned that palm oil’s saturated fat content can have adverse health effects. A 13.6-gram (g) tablespoon of palm oil containsTrusted Source 13.6 g of fat, of which 6.7 g is saturated fat. Saturated fats are known to increaseTrusted Source cholesterol levels, which can increase the risk of heart disease.
Interestingly, the research surrounding the consumption of palm oil and its effect on blood cholesterol levels suggests that palm oil may have some benefits.
A 2021 review investigated the effect of palmitic acid on cholesterol levels. Palmitic acid is a saturated fatty acid that derives from both vegetable and animal sources. The review concluded that palmitic acid from palm oil and other vegetable sources has less effect on blood cholesterol levels and low-density lipoprotein (LDL) or “bad cholesterol” than palmitic acid from animal sources.
The review also added that a chemical compound in palm oil called tocotrienols actually lowered blood cholesterol levels by 7% to 38%.
An earlier 2018 systematic reviewTrusted Source also found no evidence to support an association between palm oil consumption and CVD. However, the reviewers noted difficulties in quantifying the true association between the two variables and called for further research in this area. Medical News Today
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May 13, 2025
Malaysia deserves to get low-risk status in new EU regulation
The European Union will by June 30 unveil the much anticipated "country benchmarking system" under the EU Deforestation Regulation (EUDR).
It will divide countries into one of three tiers: "low", "standard" or "high" risk, with escalating due diligence and compliance obligations aimed at minimising EU's contributions to global deforestation and forest degradation.
It requires seven commodities and their derivatives — cattle, cocoa, coffee, palm oil, rubber, soyabean and wood — entering the EU market to be deforestation-free, legally produced and covered by a due diligence statement.
This regulation may restrict Malaysia's trade with the EU as palm oil, rubber, timber and cocoa are produced by the former.
Where Malaysia lands in the EUDR rankings will have a profound impact on thousands of local producers in industries such as palm oil.
Is "low-risk" status for Malaysia warranted? What has our sector done to deserve low-risk status, and is it enough?
The truth is there is still a lot of uncertainty, not least over the methodology the EU Commission will use to decide the rankings.
The EU has stated that assessments will be based on an analysis of national deforestation rates, measured in "absolute" terms (i.e. the number of hectares of forest lost) and in "relative" terms (i.e. the percentage of hectares lost annually).
Countries below the thresholds will be classified as "low-risk" while countries that exceed them will be classified as "standard-risk".
While the Commission has been transparent about the criteria to determine a country's ranking, it has not yet specified what the thresholds will be.
Nor has it defined the time spans that will apply to assessments — whether they are based on data over 30 years, 15 years or only the last five years.
It is particularly frustrating for Malaysia, which has taken significant steps to improve the sustainability of its palm oil industry in recent years.
Between 2014 and 2023, Malaysia reduced primary forest loss by 65 per cent and overall tree cover loss by 52 per cent (Global Forest Watch/World Resources Institute 2024).
The latest data from Satelligence (which provides data for EUDR compliance purposes) also shows that Malaysian deforestation rates are stable compared with its competitors, and the risk of further deforestation is appreciably lower (Satelligence 2025).
Malaysia has also been steadily reducing the overall acreage of land taken up by palm oil production.
It has also been leading the way on sustainability practices via the Malaysian Sustainable Palm Oil certification, a mandatory national scheme that ensures strong protections for biodiversity and natural ecosystems, and robust traceability and supply chain integrity for every palm oil stakeholder in the country.
The upshot is Malaysia is now one of the cleanest and most sustainable suppliers of palm oil in the world.
Where the Commission chooses to draw the line between the risk categories is likely to be influenced by the EU's wider trade relationships with third countries and the record of its own member states on deforestation.
These factors could also play well for Malaysia. Negotiations on an EU-Malaysia free trade agreement are poised to restart (now a priority for the EU in an era of soaring global tariffs); and recent Food and Agriculture Organization data points to potentially higher levels of primary forest lost in certain EU member states than in Malaysia.
Is it feasible that Malaysia could be given a worse classification if all EU member states are deemed to be "low-risk"?
The competitive advantage of "low-risk" status is considerable and could prove make-or-break for smallholders and medium-sized producers, who depend on the European market for their livelihoods.
Our European partners would also do well to consider the implications for their own consumers as palm oil is used in over 50 per cent of products on Europe's supermarket shelves.
The higher priority should be focusing attention on regions and countries that pose the greatest risk.
If the EU's scheme inadvertently punishes countries that have succeeded in addressing the risk of deforestation, it will disincentivise other palm oil producing nations from following in Malaysia's footsteps.
It will punish a domestic industry that has some of the highest national sustainability standards worldwide.
The effect will be higher prices for importers. These costs will get passed on to European consumers, with no benefit at all to the environment.
* The writer is CEO, Malaysian Palm Oil Council (MPOC) New Straits Times
---------
EU to blacklist just four countries under deforestation law
One diplomat described the countries on the list – Belarus, North Korea, Myanmar, and Russia – as “The real baddies”.
The bloc is preparing to label just four countries as high risk for deforestation – sparing major commodity exporters like Brazil and Indonesia – in a long-awaited move under its anti-deforestation law, Euractiv has learned.
Belarus, North Korea, Myanmar, and Russia will make the cut – or the blacklist – according to three EU diplomats. “The real baddies,” one diplomat said. The document was discussed under tight secrecy in recent weeks during a meeting on 30 April and greenlighted by all member states on Monday.
The benchmarking is part of the implementation of the EU Deforestation Regulation (EUDR), which ranks countries as high, standard, or low risk. The category determines how strict due diligence rules will be for companies – which also means more checks – on those importing crucial agri-food commodities like cocoa, coffee, soy, palm oil and beef.
The deforestation benchmarking, almost two years in the making, has previously stirred diplomatic unease – especially among major exporters like Brazil, Malaysia and Indonesia, who lobbied hard to stay off the list. For now, they’re off the hook.
In documents released last year, the European Commission had floated the idea of targeting only countries already under EU or UN sanctions – a position it appears to have stuck with.
Environmental NGOs are also likely to be unhappy with the Commission’s move. In January, 40 NGOs urged the Commission to ensure that country benchmarking “objectively reflects real human rights and environmental risks,” rather than relying on sanctions criteria.
The European Commission declined to comment on the countries expected to be included on the list, which is set to be officially unveiled in June. Euractiv
---------
PETRONAS ADVANCES DOWNSTREAM BUSINESS VIA BIO-BASED VALUE CHAIN
OVER the past 12 months, the global oil and gas sector has faced a complex business landscape, driven by fluctuating market demand, geopolitical tensions, macroeconomic uncertainties, and a growing focus on energy transition.
As a national oil and gas company, Petroliam Nasional Berhad (PETRONAS) is not exempt from the challenges of the current global environment.
It is a responsibility the company must shoulder to ensure the future sustainability of the local and global energy industries.
To stay relevant and competitive, PETRONAS must act swiftly to identify growth opportunities amid ongoing industry challenges.
By doing this, the company must prioritise and execute strategic initiatives aimed at achieving its aspiration to become a progressive energy hub.
Since its establishment five decades ago, the company has emerged as a leading global energy player, driven by its integrated core businesses spanning upstream, downstream, gas and maritime business segments.
With the formation of Gentari in 2022, it has strengthened its position in the renewable energy and clean energy solutions business.
Seeking new horizons
PETRONAS has consistently explored new potential beyond its core business.
This includes expanding its downstream capabilities, such as exploring the development of biofuels to meet global demand and support future economic diversification.
The global energy company is actively working to build a sustainable bio-based value chain and a solid customer base.
In partnership with experienced global players, Italy’s Enilive and Japan’s Euglena, PETRONAS will be developing its first biorefinery which reached the Final Investment Decision (FID) in July last year.
The biorefinery will be located in Pengerang, Johor and is set to begin commercial operations in 2028. This plant will play a key role in advancing the global bioeconomy and producing affordable clean energy solutions while supporting Malaysia’s National Energy Transition Roadmap.
With the capability of the new biorefinery, PETRONAS will be able to meet the growing and focused needs of its partners and customers, driven by the increasing demand for sustainable fuels.
Moreover, the plant will have the capacity to produce Sustainable Aviation Fuel (SAF), Hydrotreated Vegetable Oil (HVO) and bio-naphtha to meet the rising demand in Asia and other regions.
As a progressive energy company, PETRONAS, through PETRONAS Dagangan Berhad and PETRONAS Trading Corporation Sdn Bhd, has been actively supplying biofuels to its business partners ahead of the biorefinery plant’s completion.
This includes supplying SAF to several airlines, reinforcing confidence in its ability to deliver said products.
Its commitment to supplying SAF plays a crucial role in supporting the sustainability agendas of its partners and industries.
This also prepares the company to meet the requirements of the international Carbon Offsetting and Reduction Scheme for International Aviation, a global initiative developed by the International Civil Aviation Organization to reduce carbon footprint and achieve carbon-neutral growth in the international aviation sector. The StarMY
---------
Vegetable oil to help Dorset Council achieve climate goals
We are taking a significant step towards reducing our carbon emissions by swapping diesel in some of our big vehicles for hydrotreated vegetable oil (HVO).
This initiative is a crucial part of our strategy to meet our ambitious carbon reduction targets.
By this summer, 75 per cent of our non-electric vehicles will be running on HVO, a cleaner alternative to diesel that can reduce carbon emissions by up to 90 per cent.
HVO emits fewer pollutants, making it a vital component in Dorset Council's efforts to improve air quality and reduce environmental impact.
The transition to HVO will make a significant contribution to our carbon reduction targets, the first of which is a 40% reduction in emissions this year (2025).
HVO is made from recycled vegetable oils, animal fats and waste oils that would otherwise be disposed of, ensuring sustainability and reducing reliance on fossil fuels.
Importantly, our contractors have confirmed that the HVO supplied to Dorset Council contains no palm oil.
Cllr Nick Ireland, Leader of Dorset Council, said: “Switching to HVO is a significant milestone in our journey towards reducing carbon emissions. This initiative has not only enabled us to meet our interim target of a 40% reduction, but also supports our long-term goal of achieving net zero carbon emissions by 2035.
“By using HVO, we are taking immediate action to lower our carbon footprint while we continue to transition to zero and ultra-low emission vehicles. This is a practical and impactful step towards a more sustainable future for Dorset. It is critical that the council keeps showing leadership in this area, and outside of our own emissions we will continue to work with partners and communities across Dorset to deliver strong environmental, climate, economic and social benefits”
The vehicles that will switch over include highways lorries, 3.5-tonne tippers, vans and waste and recycling vehicles. This initiative will complement our fleet of electric vans, with over 500 diesel vehicles set to change to HVO in the coming months.
The transition to HVO is straightforward, involving the cleaning of existing diesel tanks to accommodate the new fuel. Unlike some councils that blend HVO with diesel, Dorset Council will be using pure HVO.
Cllr Jon Andrews, Cabinet Member for Place Services, said: “Our long-term goal is to swap all our fleet to zero or ultra-low emission vehicles. But, while we wait for technology to catch up, HVO is a great way to reduce emissions.
“The changeover is easy to do without impact on our highways operations. It allows us to switch back to diesel if any issues arise.
“HVO will serve as a transitional fuel for our fleet. As vehicles are replaced, the fleet will gradually shift to zero and ultra-low emissions vehicles, such as electric.”
There is a small upfront cost for changing filters and flushing tanks, but the switch to HVO should not cause any ongoing additional maintenance costs or negatively impact vehicle performance. This will be monitored as the trial progresses.
We trialled HVO on some of our highways vehicles last summer, and since the autumn our waste depot at Ferndown has been operating its vehicles on HVO. Other depots, including Shaftesbury, Bridport, Poundbury, Wareham, Charminster, Blandford, and Gibbs Marsh, will follow suit in the next couple of months.
The remainder of our non-electric vehicles, mainly older models, are unable to run on HVO and will continue to use diesel.
HVO is biodegradable and less toxic than regular diesel. It can be stored for up to 10 years, compared to diesel’s one-year storage capability, reducing the cost and environmental impact of waste.
The council is working towards net zero carbon emissions for its directly controlled emissions by 2035. These are emissions from fuel and electricity use from/by its own buildings, vehicles and streetlights.
Find out how we are reducing the carbon footprint of our buildings and operations Dorset Council
---------
UCOME premium drops as Dutch biofuel compliance shifts demand
Low physical demand and surplus SAF compliance tickets weigh down UCOME prices
The premium for used cooking oil methyl ester (UCOME) over gasoil reached two-month lows this week, as sources pointed to low physical demand and downward pressure from an excess of biofuel compliance tickets in the Netherlands’ HBE renewable energy system specifically tied to sustainable aviation fuel (SAF) production and trade, which road blenders can buy to meet their mandate targets.
Fastmarkets latest price assessments
Fastmarkets’ assessment for biodiesel, UCOME premium, fob ARA was $788.75 per tonne on Thursday May 8, up from a two-month low of $785 per tonne on Wednesday May 7. The price had remained above $800 per tonne since March 13.
Sources told Fastmarkets this week that demand for physical waste-based biofuel for the road, such as UCOME or even UCO-based HVO, had been limited for several months, which together with dipping underlying diesel prices have weighed down on UCOME.
Fastmarkets assessed oil, ultra low sulfur diesel, fob ARA at $594.75 per tonne on Thursday, up from $583.75 per tonne day on day and from $590.75 per tonne week on week.
Road demand in the Netherlands for physical biofuels in recent months has mostly been focused on biofuels made from feedstocks outlined in Annex 9 part A of the EU Renewable Energy Directive (RED III), so-called 9A or advanced feedstocks able to generate advanced HBE tickets (HBE-G) such as advanced FAME and, especially, POME (palm oil mill effluent) based HVO.
Both SAF and UCOME can generate tickets under the Netherlands’ compliance system, as both are eligible under RED III’s Annex 9 part B or the Netherlands’ HBE IXB because they are produced using used cooking oil (UCO). SAF can also be produced using other wastes and advanced feedstocks, but most production and supply is limited to UCO-based product at present.
SAF trade and production
Trade and production of SAF at the beginning of the EU SAF mandate had also generated more tickets under the HBE system, with the Netherlands’ program including the maritime and aviation sectors alongside road transport.
As a result, buyers that need physical UCOME, or even category 1 and 2 tallow-based biodiesel, for the road are now incentivized to buy HBE IXB tickets, rather than physically blend fuels. This has further weighed on demand and prices for UCOME.
“KLM flooded the Dutch market with SAF tickets, so tickets were much cheaper than blending,” a source told Fastmarkets.
The Dutch Emissions Authority (NEa) releases data five times a year, in January, March, April, May, July and October.
According to the latest preliminary data released by the NEa in April, the number of HBE tickets registered under the Dutch biofuel compliance program for 2024 associated with SAF blending accounted for 11.5% of all HBEs registered, up from 9.2% in March and from 8% a year earlier.
SAF has claimed a total of 12.3 million HBEs so far for compliance year 2024 out of a total of 105.7 million registered HBEs, the data confirmed.
Comparatively, under the UK’s Renewable Transport Fuel Obligation, while UCOME can generate waste-based tickets or Renewable Trade Fuel Certificates (RTFCs), only road transport can currently take part in the program, with a separate process mapped out for the budding SAF sector.
In November, the UK SAF mandate was signed into law, requiring a 2% share of SAF be blended into jet fuel in 2025, 10% by 2030 and 22% by 2040. Fast Markets
---------
Press release from Ocho Sur: Oil Palm Restores Degraded Jungle Areas and Opens Market Opportunities for the People of Ucayali
PUCALLPA, UCAYALI, PERU, May 12, 2025 /EINPresswire.com/ -- Today, talking about the development of the jungle is also talking about oil palm. Where once there were coca leaves or indiscriminate logging, today there are plantations that can reach up to 15 meters in height, where new micro-ecosystems are being created to turn green a region that the State has been responsible for relegating and obscuring.
Peru21 traveled a few weeks ago to the Ucayali region to learn about the coexistence of oil palm and the native communities that have seen this crop as an opportunity to integrate into the local entrepreneurial economy. Ucayali is an Amazonian territory rich in biodiversity. With approximately 10.5 million hectares, the area is home to extensive forests, a great variety of native species, and ecosystems ranging from flooded forests to dense jungle areas.
However, in previous years, Ucayali was the epicenter of deforestation. A plague of illicit crops and the uncontrolled expansion of the agricultural frontier left the region to its fate. Coca leaf from drug trafficking played a crucial role in the dynamics of deforestation. These illegal crops were state presence was minimal.
According to reports from the Regional Government of Ucayali, the incidence of illicit crops accounted for more than half of the cause of forest loss in certain periods. Deforestation linked to coca not only involved the direct removal of the forest canopy but also facilitated access for other illegal activities, deteriorating the integrity of ecological corridors.
Today, the expansion of oil palm cultivation in Ucayali largely takes place on the lands of former coca plantations and has become a significant source of income and employment for many communities. Opponents, generally environmental NGOs, accuse it of being a predatory monoculture. But what is truly more predatory: poverty and the ongoing neglect by the State of Amazonian communities or a plant that can produce continuously for up to forty years?
FORGOTTEN AND OPPORTUNITIES More at EIN Presswire
Malaysia deserves to get low-risk status in new EU regulation
The European Union will by June 30 unveil the much anticipated "country benchmarking system" under the EU Deforestation Regulation (EUDR).
It will divide countries into one of three tiers: "low", "standard" or "high" risk, with escalating due diligence and compliance obligations aimed at minimising EU's contributions to global deforestation and forest degradation.
It requires seven commodities and their derivatives — cattle, cocoa, coffee, palm oil, rubber, soyabean and wood — entering the EU market to be deforestation-free, legally produced and covered by a due diligence statement.
This regulation may restrict Malaysia's trade with the EU as palm oil, rubber, timber and cocoa are produced by the former.
Where Malaysia lands in the EUDR rankings will have a profound impact on thousands of local producers in industries such as palm oil.
Is "low-risk" status for Malaysia warranted? What has our sector done to deserve low-risk status, and is it enough?
The truth is there is still a lot of uncertainty, not least over the methodology the EU Commission will use to decide the rankings.
The EU has stated that assessments will be based on an analysis of national deforestation rates, measured in "absolute" terms (i.e. the number of hectares of forest lost) and in "relative" terms (i.e. the percentage of hectares lost annually).
Countries below the thresholds will be classified as "low-risk" while countries that exceed them will be classified as "standard-risk".
While the Commission has been transparent about the criteria to determine a country's ranking, it has not yet specified what the thresholds will be.
Nor has it defined the time spans that will apply to assessments — whether they are based on data over 30 years, 15 years or only the last five years.
It is particularly frustrating for Malaysia, which has taken significant steps to improve the sustainability of its palm oil industry in recent years.
Between 2014 and 2023, Malaysia reduced primary forest loss by 65 per cent and overall tree cover loss by 52 per cent (Global Forest Watch/World Resources Institute 2024).
The latest data from Satelligence (which provides data for EUDR compliance purposes) also shows that Malaysian deforestation rates are stable compared with its competitors, and the risk of further deforestation is appreciably lower (Satelligence 2025).
Malaysia has also been steadily reducing the overall acreage of land taken up by palm oil production.
It has also been leading the way on sustainability practices via the Malaysian Sustainable Palm Oil certification, a mandatory national scheme that ensures strong protections for biodiversity and natural ecosystems, and robust traceability and supply chain integrity for every palm oil stakeholder in the country.
The upshot is Malaysia is now one of the cleanest and most sustainable suppliers of palm oil in the world.
Where the Commission chooses to draw the line between the risk categories is likely to be influenced by the EU's wider trade relationships with third countries and the record of its own member states on deforestation.
These factors could also play well for Malaysia. Negotiations on an EU-Malaysia free trade agreement are poised to restart (now a priority for the EU in an era of soaring global tariffs); and recent Food and Agriculture Organization data points to potentially higher levels of primary forest lost in certain EU member states than in Malaysia.
Is it feasible that Malaysia could be given a worse classification if all EU member states are deemed to be "low-risk"?
The competitive advantage of "low-risk" status is considerable and could prove make-or-break for smallholders and medium-sized producers, who depend on the European market for their livelihoods.
Our European partners would also do well to consider the implications for their own consumers as palm oil is used in over 50 per cent of products on Europe's supermarket shelves.
The higher priority should be focusing attention on regions and countries that pose the greatest risk.
If the EU's scheme inadvertently punishes countries that have succeeded in addressing the risk of deforestation, it will disincentivise other palm oil producing nations from following in Malaysia's footsteps.
It will punish a domestic industry that has some of the highest national sustainability standards worldwide.
The effect will be higher prices for importers. These costs will get passed on to European consumers, with no benefit at all to the environment.
* The writer is CEO, Malaysian Palm Oil Council (MPOC) New Straits Times
---------
EU to blacklist just four countries under deforestation law
One diplomat described the countries on the list – Belarus, North Korea, Myanmar, and Russia – as “The real baddies”.
The bloc is preparing to label just four countries as high risk for deforestation – sparing major commodity exporters like Brazil and Indonesia – in a long-awaited move under its anti-deforestation law, Euractiv has learned.
Belarus, North Korea, Myanmar, and Russia will make the cut – or the blacklist – according to three EU diplomats. “The real baddies,” one diplomat said. The document was discussed under tight secrecy in recent weeks during a meeting on 30 April and greenlighted by all member states on Monday.
The benchmarking is part of the implementation of the EU Deforestation Regulation (EUDR), which ranks countries as high, standard, or low risk. The category determines how strict due diligence rules will be for companies – which also means more checks – on those importing crucial agri-food commodities like cocoa, coffee, soy, palm oil and beef.
The deforestation benchmarking, almost two years in the making, has previously stirred diplomatic unease – especially among major exporters like Brazil, Malaysia and Indonesia, who lobbied hard to stay off the list. For now, they’re off the hook.
In documents released last year, the European Commission had floated the idea of targeting only countries already under EU or UN sanctions – a position it appears to have stuck with.
Environmental NGOs are also likely to be unhappy with the Commission’s move. In January, 40 NGOs urged the Commission to ensure that country benchmarking “objectively reflects real human rights and environmental risks,” rather than relying on sanctions criteria.
The European Commission declined to comment on the countries expected to be included on the list, which is set to be officially unveiled in June. Euractiv
---------
PETRONAS ADVANCES DOWNSTREAM BUSINESS VIA BIO-BASED VALUE CHAIN
OVER the past 12 months, the global oil and gas sector has faced a complex business landscape, driven by fluctuating market demand, geopolitical tensions, macroeconomic uncertainties, and a growing focus on energy transition.
As a national oil and gas company, Petroliam Nasional Berhad (PETRONAS) is not exempt from the challenges of the current global environment.
It is a responsibility the company must shoulder to ensure the future sustainability of the local and global energy industries.
To stay relevant and competitive, PETRONAS must act swiftly to identify growth opportunities amid ongoing industry challenges.
By doing this, the company must prioritise and execute strategic initiatives aimed at achieving its aspiration to become a progressive energy hub.
Since its establishment five decades ago, the company has emerged as a leading global energy player, driven by its integrated core businesses spanning upstream, downstream, gas and maritime business segments.
With the formation of Gentari in 2022, it has strengthened its position in the renewable energy and clean energy solutions business.
Seeking new horizons
PETRONAS has consistently explored new potential beyond its core business.
This includes expanding its downstream capabilities, such as exploring the development of biofuels to meet global demand and support future economic diversification.
The global energy company is actively working to build a sustainable bio-based value chain and a solid customer base.
In partnership with experienced global players, Italy’s Enilive and Japan’s Euglena, PETRONAS will be developing its first biorefinery which reached the Final Investment Decision (FID) in July last year.
The biorefinery will be located in Pengerang, Johor and is set to begin commercial operations in 2028. This plant will play a key role in advancing the global bioeconomy and producing affordable clean energy solutions while supporting Malaysia’s National Energy Transition Roadmap.
With the capability of the new biorefinery, PETRONAS will be able to meet the growing and focused needs of its partners and customers, driven by the increasing demand for sustainable fuels.
Moreover, the plant will have the capacity to produce Sustainable Aviation Fuel (SAF), Hydrotreated Vegetable Oil (HVO) and bio-naphtha to meet the rising demand in Asia and other regions.
As a progressive energy company, PETRONAS, through PETRONAS Dagangan Berhad and PETRONAS Trading Corporation Sdn Bhd, has been actively supplying biofuels to its business partners ahead of the biorefinery plant’s completion.
This includes supplying SAF to several airlines, reinforcing confidence in its ability to deliver said products.
Its commitment to supplying SAF plays a crucial role in supporting the sustainability agendas of its partners and industries.
This also prepares the company to meet the requirements of the international Carbon Offsetting and Reduction Scheme for International Aviation, a global initiative developed by the International Civil Aviation Organization to reduce carbon footprint and achieve carbon-neutral growth in the international aviation sector. The StarMY
---------
Vegetable oil to help Dorset Council achieve climate goals
We are taking a significant step towards reducing our carbon emissions by swapping diesel in some of our big vehicles for hydrotreated vegetable oil (HVO).
This initiative is a crucial part of our strategy to meet our ambitious carbon reduction targets.
By this summer, 75 per cent of our non-electric vehicles will be running on HVO, a cleaner alternative to diesel that can reduce carbon emissions by up to 90 per cent.
HVO emits fewer pollutants, making it a vital component in Dorset Council's efforts to improve air quality and reduce environmental impact.
The transition to HVO will make a significant contribution to our carbon reduction targets, the first of which is a 40% reduction in emissions this year (2025).
HVO is made from recycled vegetable oils, animal fats and waste oils that would otherwise be disposed of, ensuring sustainability and reducing reliance on fossil fuels.
Importantly, our contractors have confirmed that the HVO supplied to Dorset Council contains no palm oil.
Cllr Nick Ireland, Leader of Dorset Council, said: “Switching to HVO is a significant milestone in our journey towards reducing carbon emissions. This initiative has not only enabled us to meet our interim target of a 40% reduction, but also supports our long-term goal of achieving net zero carbon emissions by 2035.
“By using HVO, we are taking immediate action to lower our carbon footprint while we continue to transition to zero and ultra-low emission vehicles. This is a practical and impactful step towards a more sustainable future for Dorset. It is critical that the council keeps showing leadership in this area, and outside of our own emissions we will continue to work with partners and communities across Dorset to deliver strong environmental, climate, economic and social benefits”
The vehicles that will switch over include highways lorries, 3.5-tonne tippers, vans and waste and recycling vehicles. This initiative will complement our fleet of electric vans, with over 500 diesel vehicles set to change to HVO in the coming months.
The transition to HVO is straightforward, involving the cleaning of existing diesel tanks to accommodate the new fuel. Unlike some councils that blend HVO with diesel, Dorset Council will be using pure HVO.
Cllr Jon Andrews, Cabinet Member for Place Services, said: “Our long-term goal is to swap all our fleet to zero or ultra-low emission vehicles. But, while we wait for technology to catch up, HVO is a great way to reduce emissions.
“The changeover is easy to do without impact on our highways operations. It allows us to switch back to diesel if any issues arise.
“HVO will serve as a transitional fuel for our fleet. As vehicles are replaced, the fleet will gradually shift to zero and ultra-low emissions vehicles, such as electric.”
There is a small upfront cost for changing filters and flushing tanks, but the switch to HVO should not cause any ongoing additional maintenance costs or negatively impact vehicle performance. This will be monitored as the trial progresses.
We trialled HVO on some of our highways vehicles last summer, and since the autumn our waste depot at Ferndown has been operating its vehicles on HVO. Other depots, including Shaftesbury, Bridport, Poundbury, Wareham, Charminster, Blandford, and Gibbs Marsh, will follow suit in the next couple of months.
The remainder of our non-electric vehicles, mainly older models, are unable to run on HVO and will continue to use diesel.
HVO is biodegradable and less toxic than regular diesel. It can be stored for up to 10 years, compared to diesel’s one-year storage capability, reducing the cost and environmental impact of waste.
The council is working towards net zero carbon emissions for its directly controlled emissions by 2035. These are emissions from fuel and electricity use from/by its own buildings, vehicles and streetlights.
Find out how we are reducing the carbon footprint of our buildings and operations Dorset Council
---------
UCOME premium drops as Dutch biofuel compliance shifts demand
Low physical demand and surplus SAF compliance tickets weigh down UCOME prices
The premium for used cooking oil methyl ester (UCOME) over gasoil reached two-month lows this week, as sources pointed to low physical demand and downward pressure from an excess of biofuel compliance tickets in the Netherlands’ HBE renewable energy system specifically tied to sustainable aviation fuel (SAF) production and trade, which road blenders can buy to meet their mandate targets.
Fastmarkets latest price assessments
Fastmarkets’ assessment for biodiesel, UCOME premium, fob ARA was $788.75 per tonne on Thursday May 8, up from a two-month low of $785 per tonne on Wednesday May 7. The price had remained above $800 per tonne since March 13.
Sources told Fastmarkets this week that demand for physical waste-based biofuel for the road, such as UCOME or even UCO-based HVO, had been limited for several months, which together with dipping underlying diesel prices have weighed down on UCOME.
Fastmarkets assessed oil, ultra low sulfur diesel, fob ARA at $594.75 per tonne on Thursday, up from $583.75 per tonne day on day and from $590.75 per tonne week on week.
Road demand in the Netherlands for physical biofuels in recent months has mostly been focused on biofuels made from feedstocks outlined in Annex 9 part A of the EU Renewable Energy Directive (RED III), so-called 9A or advanced feedstocks able to generate advanced HBE tickets (HBE-G) such as advanced FAME and, especially, POME (palm oil mill effluent) based HVO.
Both SAF and UCOME can generate tickets under the Netherlands’ compliance system, as both are eligible under RED III’s Annex 9 part B or the Netherlands’ HBE IXB because they are produced using used cooking oil (UCO). SAF can also be produced using other wastes and advanced feedstocks, but most production and supply is limited to UCO-based product at present.
SAF trade and production
Trade and production of SAF at the beginning of the EU SAF mandate had also generated more tickets under the HBE system, with the Netherlands’ program including the maritime and aviation sectors alongside road transport.
As a result, buyers that need physical UCOME, or even category 1 and 2 tallow-based biodiesel, for the road are now incentivized to buy HBE IXB tickets, rather than physically blend fuels. This has further weighed on demand and prices for UCOME.
“KLM flooded the Dutch market with SAF tickets, so tickets were much cheaper than blending,” a source told Fastmarkets.
The Dutch Emissions Authority (NEa) releases data five times a year, in January, March, April, May, July and October.
According to the latest preliminary data released by the NEa in April, the number of HBE tickets registered under the Dutch biofuel compliance program for 2024 associated with SAF blending accounted for 11.5% of all HBEs registered, up from 9.2% in March and from 8% a year earlier.
SAF has claimed a total of 12.3 million HBEs so far for compliance year 2024 out of a total of 105.7 million registered HBEs, the data confirmed.
Comparatively, under the UK’s Renewable Transport Fuel Obligation, while UCOME can generate waste-based tickets or Renewable Trade Fuel Certificates (RTFCs), only road transport can currently take part in the program, with a separate process mapped out for the budding SAF sector.
In November, the UK SAF mandate was signed into law, requiring a 2% share of SAF be blended into jet fuel in 2025, 10% by 2030 and 22% by 2040. Fast Markets
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Press release from Ocho Sur: Oil Palm Restores Degraded Jungle Areas and Opens Market Opportunities for the People of Ucayali
PUCALLPA, UCAYALI, PERU, May 12, 2025 /EINPresswire.com/ -- Today, talking about the development of the jungle is also talking about oil palm. Where once there were coca leaves or indiscriminate logging, today there are plantations that can reach up to 15 meters in height, where new micro-ecosystems are being created to turn green a region that the State has been responsible for relegating and obscuring.
Peru21 traveled a few weeks ago to the Ucayali region to learn about the coexistence of oil palm and the native communities that have seen this crop as an opportunity to integrate into the local entrepreneurial economy. Ucayali is an Amazonian territory rich in biodiversity. With approximately 10.5 million hectares, the area is home to extensive forests, a great variety of native species, and ecosystems ranging from flooded forests to dense jungle areas.
However, in previous years, Ucayali was the epicenter of deforestation. A plague of illicit crops and the uncontrolled expansion of the agricultural frontier left the region to its fate. Coca leaf from drug trafficking played a crucial role in the dynamics of deforestation. These illegal crops were state presence was minimal.
According to reports from the Regional Government of Ucayali, the incidence of illicit crops accounted for more than half of the cause of forest loss in certain periods. Deforestation linked to coca not only involved the direct removal of the forest canopy but also facilitated access for other illegal activities, deteriorating the integrity of ecological corridors.
Today, the expansion of oil palm cultivation in Ucayali largely takes place on the lands of former coca plantations and has become a significant source of income and employment for many communities. Opponents, generally environmental NGOs, accuse it of being a predatory monoculture. But what is truly more predatory: poverty and the ongoing neglect by the State of Amazonian communities or a plant that can produce continuously for up to forty years?
FORGOTTEN AND OPPORTUNITIES More at EIN Presswire
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May 12, 2025
Indonesia to Cultivate 300,000 Hectares of Sugar Palm to Power Bioethanol Push
Jakarta. The Indonesian government plans to develop 300,000 hectares of sugar palm plantations as part of a national strategy to reduce reliance on fossil fuel imports by strengthening the country’s bioethanol industry.
Forestry Minister Raja Juli Antoni visited a sugar palm plantation in Garut, West Java, on Saturday to assess its potential in advancing Indonesia’s renewable energy goals. The initiative follows a directive from President Prabowo Subianto, who has declared sugar palm one of his favorite trees due to its multifunctional benefits.
“President Prabowo has long admired the sugar palm -- it’s a miraculous tree. Every part of it, from root to crown, has value,” Antoni said in a statement.
Sap extracted from the sugar palm can be processed into high-quality bioethanol, a sustainable fuel alternative. “With proper cultivation, one hectare of sugar palm can produce 24,000 liters of bioethanol. If we plant one million hectares, we can achieve energy self-sufficiency,” he explained.
The government has set a target for 23 percent of the nation’s energy consumption this year to come from renewable sources.
In a recent cabinet meeting, President Prabowo designated sugar palm development as a government priority program. “He instructed us to source high-yield seedlings and begin planting immediately. The target for this year alone is 300,000 hectares,” Antoni added.
Antoni was accompanied on the visit by his advisor, Willie Smits, a Dutch-born conservationist and forestry expert who has been an Indonesian citizen since 1985.
Smits emphasized the sugar palm’s economic and ecological value. “A single tree can generate up to Rp 2 million from its fiber. The fruit, kolang-kaling, also contributes to food security. Its deep roots make it drought-resistant,” he said.
Beyond its energy potential, sugar palm plantations are also seen as a nature-based solution to prevent erosion and landslides in hilly areas. The tree’s ability to retain groundwater helps maintain hydrological balance in drought-prone regions.
Indonesia is home to approximately 2 million hectares of existing sugar palm plantations, primarily used for producing palm sugar, fiber, and fruit. According to the Agriculture Ministry, national palm sugar output stands at about 30,000 tons per year.
Despite its promise, the sugar palm’s potential as a bioethanol feedstock remains largely untapped. Jakarta Globe
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Palm Oil Is The Key To Prabowo's Government To Achieve Fuel Independence
JAKARTA Unpad economic observer, Ina Primiana assessed, the ideals of independence and energy sustainability can be realized by referring to oil palm which has great potential as raw material for fuel oil (BBM) in the future.
In my opinion, the potential for fuel is palm oil. Now, 67 percent of palm oil has become processed products. One of them is fuel," he said in a written statement, Sunday, May 11.
Previously, President Prabowo Subianto at the Halalbihalal Retired TNI AD event, in Jakarta, Tuesday, May 6, stated his government's determination to achieve fuel independence in the next five years.
According to Ina, to achieve the self-sufficiency target of palm oil-based fuel in the next five years, accurate and comprehensive data is needed as well as the importance of mapping production, domestic needs, and detailed export volume of palm oil.
"Well, to reach those five years, there needs to be data on how much our palm oil produces, then for what. How much is exported? How much is it for domestic needs," he said.
Therefore, he reminded that the calculation should be carried out thoroughly taking into account the current conditions and projections in the next five years.
Ina emphasized that despite being one of the largest producers, Indonesia still has to consider many aspects, including the position of other countries such as Malaysia.
The government's policy in maintaining the sustainability of palm oil production, including through the replanting process and strengthening supply chains from upstream to downstream is also important. So, it depends on the government's policy to protect it from upstream to downstream. To want everything, the supply chain must also be maintained," said Ina.
He considered that President Prabowo's target was very important to be followed up.
Moreover, he continued, Indonesia has experienced a fuel deficit since 2004.
Currently, 56 percent or about 284 million barrels of Indonesian fuel supply are imported.
"If the average world oil price is in the range of 70 US dollars per barrel, then we spend nearly 20 billion US dollars, or the equivalent of about 9 percent of the state budget. Therefore, to achieve the energy independence target, we also need to find an allerated fuel source," said Ina. VOI
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Palm oil downstreaming to meet Indonesians nutritional needs: ministry
Jakarta (ANTARA) - The Ministry of Industry continues to accelerate the downstreaming of palm oil businesses, especially for products containing beta-carotene (pro vitamin A) and tocopherol (vitamin E), to meet people’s nutritional needs.
According to the ministry’s director general of agro industry, Putu Juli Ardika, not many people realize that palm oil contains important nutrients such as beta-carotene, tocopherol, medium chain triglyceride (MCT), squalane and antioxidants, which are good to maintain body health.
He explained that the modern palm oil production process through chemical oil refining actually eliminates the natural important nutritional content of palm oil. So, vitamin needs can be met from synthetic health supplements or from other sources.
"Vitamin supplementation from plant sources, including from naturally processed palm oil, is a smart option to maintain adequate nutrition for the people, especially for vulnerable groups such as school children and pregnant or breastfeeding mothers," Ardika said in his statement on Sunday.
Therefore, the Ministry of Industry is supporting the facilitation of a collaborative research between the Indonesian Palm Oil Society (MAKSI) and state-owned pharmaceutical company PT Kimia Farma, by preparing the draft of Indonesian National Standard (RSNI) for palm oil-based supplement products.
The SNI for health supplement products is considered very important to open up opportunities for all stakeholders, including SOEs, private companies and other related parties to be involved in the national program to provide adequate nutrition for the people -- including the free meals program.
Among the supports from the ministry is holding a scientific technical meeting to finalize the concept of developing supplement products with national nutrition experts, he added.
The Ministry of Industry will also bridge the legal aspects of cooperation including intellectual property management and determine the requirements, so the results of this collaborative research can be implemented into a national scale program, especially to support the free meals program.
“We hope the pioneer model of collaborative research between MAKSI and PT Kimia Farma in palm oil-based health supplement products can be a new milestone in the development of the agro-industry sector, which has the potential to be explored for the commercial industrial scale," Ardika concluded. Antara News
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Balancing Sustainability And Inclusion: Towards The Malaysianisation Of The EUDR
by Dr Pieter E Stek & Dr Asad Ata
The European Union Deforestation Regulation (EUDR) and its implications for Malaysian palm oil have sparked significant debate. Rather than taking sides on the issue, it is more productive to examine it through the lens of standard-setting. Malaysia has a long history of developing its own sustainability standards for palm oil, and incorporating some of these innovative approaches into the EUDR could pave the way for a collaborative and mutually beneficial implementation strategy.
Standard-setting rarely captures public attention, yet its implications are far-reaching. Standards reduce transaction costs, foster trust among buyers, and level the playing field for producers. They drive technological innovation and disseminate best practices. Think of the HACCP standards ensuring food safety, Euro 5 emissions standards regulating car pollution in Malaysia, or ISO certifications that set benchmarks across industries. Though not perfect, standards generally promote efficiency and economic growth.
However, the creation and implementation of standards are rarely as objective as they seem. The process often involves a small group of technical experts whose decisions may reflect groupthink or political considerations. While grounded in science, standards are also shaped by power dynamics as countries advocate for standards that benefit their own industries. Unintended consequences, particularly for marginalised groups, often arise from seemingly well-intentioned standards.
The EUDR offers a pertinent example. This relatively straightforward regulation aims to combat climate change by banning imports of goods linked to deforestation. The intent is commendable: Addressing the economic drivers of deforestation. Yet, the execution risks sidelining Malaysia’s smallholder farmers, who play a significant role in the country’s palm oil supply chain.
Malaysia’s palm oil sector comprises around 250,000 independent small farmers. Their supply chain operates through layers of middlemen who collect and aggregate fruit from various farmers to supply mills. This system, while dynamic, widespread and largely informal, is often opaque. Middlemen prioritise commercial confidentiality, complicating traceability. While large plantations can demonstrate compliance with the EUDR relatively easily, smallholders face significant hurdles, despite not being inherently linked to deforestation.
Research shows that most smallholders are not expanding into recently deforested areas and that they often manage land with greater biodiversity than large-scale plantations. However, these farmers struggle with record-keeping and reporting, particularly in remote regions with limited access to technology and education. The unintended consequence of the EUDR is clear: Smallholders risk exclusion from the supply chain due to systemic barriers, not environmental non-compliance.
Recognising the need for inclusive sustainability, Malaysia introduced the Malaysian Sustainable Palm Oil (MSPO) certification in 2015. Unlike the more demanding Roundtable on Sustainable Palm Oil standard, the MSPO was designed to be attainable for local producers, particularly smallholders.
One of the MSPO’s key innovations is its territorial approach to certification, organising the country into 162 Sustainable Palm Oil Clusters (SPOCs). Each cluster has an internal control system to monitor and support the smallholders within the cluster. It is managed by a group manager who is also a Tunjuk Ajar Nasihat Sawit officer, supporting farmers in adopting sustainable practices. This model shifts the focus from sustainability compliance to capacity-building. In principle, the SPOC system could also be used to monitor deforestation and thus form a pathway towards compliance under the EUDR.
The SPOC system provides an inclusive framework, prioritising education and gradual improvement over exclusion. It recognises that sustainability is a journey, and not a binary status. For smallholders, this approach offers a simpler path to certification without undermining their livelihoods.
Malaysia should advocate for a territorial approach, similar to SPOCs, when negotiating about the implementation of the EUDR. By adopting a territorial approach for low-risk regions with minimal deforestation, small farmers could automatically be deemed compliant.
This territorial approach is viable due to the spatial structure of palm oil cultivation. The intake of palm oil mills is limited by their transportation radius, as palm fruit typically needs to be processed within 24 hours. For practical and economic reasons, transportation beyond 50km to 100km is usually not viable, depending also on the quality of infrastructure. This means that mills located some distance away from deforested areas are unlikely to receive fruit from unsustainable sources. Additional electronic monitoring of key roads could further prevent such spillovers.
For areas with higher deforestation risks, or for large producers, a hybrid model could be implemented. Additional scrutiny and record-keeping would apply where necessary, with the threat of area-wide sanctions acting as a deterrent against illegal deforestation. This localised approach balances the EUDR’s environmental goals with the economic realities of small farmers.
A territorial approach also creates opportunities for collaboration. By allowing for renegotiation and co-regulation, the EUDR could incorporate local expertise and address on-the-ground challenges. Malaysia’s SPOC system already offers a scalable framework for monitoring deforestation and facilitating traceability. By leveraging this existing infrastructure, the EU can ensure compliance without disproportionately penalising smallholders.
Critics may argue that a territorial approach dilutes accountability, potentially creating market distortions. However, such concerns can be mitigated through a phased strategy. Over time, the system could transition to more granular, farm-level traceability as technology and farmer capacity improve. This hybrid model ensures immediate action while building a foundation for long-term sustainability.
Importantly, territorial compliance recognises the shared responsibility of regulators and producers. It aligns with principles of inclusivity and equity, ensuring that marginalised groups are not unfairly burdened by standards designed in distant bureaucratic corridors.
The EUDR’s anti-deforestation goal is laudable, but its implementation must be adaptable to diverse local contexts. Malaysia’s existing SPOC system under the MSPO offers a realistic regulatory framework. By embracing a Malaysianised approach to the EUDR, the EU can effectively balance its environmental goals with practical considerations, ensuring small farmers remain within sustainable global supply chains. Ultimately, a locally-informed approach does not merely create fairer standards; it fosters genuine collaboration, drives meaningful compliance and supports long-term sustainability.
This approach exemplifies how standard-setting can transcend technical expertise and power politics to create genuinely fair and effective solutions. In an interconnected world, sustainability must be a shared endeavour — one that respects local realities while striving for global impact.
The Malaysianisation of the EUDR is not just a call for better regulation; it is a call for a more inclusive and equitable approach to sustainability. Business Today
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Arunachal's Lower Dibang Valley hosts mega oil palm plantation drive to boost self-reliance
In a significant push towards agricultural self-reliance, a Mega Oil Palm Plantation Drive was held today at Aara-Camp, Abali in Roing, Lower Dibang Valley district. The event saw the active participation of Arunachal Pradesh's Minister of Agriculture, Horticulture, Veterinary, Fisheries & Allied Sectors, Gabriel D Wangsu.
In a significant push towards agricultural self-reliance, a Mega Oil Palm Plantation Drive was held today at Aara-Camp, Abali in Roing, Lower Dibang Valley district. The event saw the active participation of Arunachal Pradesh's Minister of Agriculture, Horticulture, Veterinary, Fisheries & Allied Sectors, Gabriel D Wangsu.
Organised jointly by 3F Oil Palm and the District Agriculture Office, Roing, the drive was conducted under the theme ‘Sowing for a Better Future’, reflecting the state’s commitment to sustainable agricultural expansion.
Minister Wangsu, while addressing the gathering, lauded the success stories of local farmers who have transformed their livelihoods through oil palm cultivation. He noted that their achievements stand as a replicable model for other farming communities across Arunachal Pradesh, showcasing the economic potential of oil palm farming when practiced sustainably.
Arunachal Pradesh is emerging as a frontrunner in India's National Mission on Edible Oils–Oil Palm (NMEO-OP), having already established two oil palm processing factories. This initiative is contributing significantly to the broader national vision of Atmanirbhar Bharat (self-reliant India), aiming to reduce dependence on imported edible oils. India TodayNE
Indonesia to Cultivate 300,000 Hectares of Sugar Palm to Power Bioethanol Push
Jakarta. The Indonesian government plans to develop 300,000 hectares of sugar palm plantations as part of a national strategy to reduce reliance on fossil fuel imports by strengthening the country’s bioethanol industry.
Forestry Minister Raja Juli Antoni visited a sugar palm plantation in Garut, West Java, on Saturday to assess its potential in advancing Indonesia’s renewable energy goals. The initiative follows a directive from President Prabowo Subianto, who has declared sugar palm one of his favorite trees due to its multifunctional benefits.
“President Prabowo has long admired the sugar palm -- it’s a miraculous tree. Every part of it, from root to crown, has value,” Antoni said in a statement.
Sap extracted from the sugar palm can be processed into high-quality bioethanol, a sustainable fuel alternative. “With proper cultivation, one hectare of sugar palm can produce 24,000 liters of bioethanol. If we plant one million hectares, we can achieve energy self-sufficiency,” he explained.
The government has set a target for 23 percent of the nation’s energy consumption this year to come from renewable sources.
In a recent cabinet meeting, President Prabowo designated sugar palm development as a government priority program. “He instructed us to source high-yield seedlings and begin planting immediately. The target for this year alone is 300,000 hectares,” Antoni added.
Antoni was accompanied on the visit by his advisor, Willie Smits, a Dutch-born conservationist and forestry expert who has been an Indonesian citizen since 1985.
Smits emphasized the sugar palm’s economic and ecological value. “A single tree can generate up to Rp 2 million from its fiber. The fruit, kolang-kaling, also contributes to food security. Its deep roots make it drought-resistant,” he said.
Beyond its energy potential, sugar palm plantations are also seen as a nature-based solution to prevent erosion and landslides in hilly areas. The tree’s ability to retain groundwater helps maintain hydrological balance in drought-prone regions.
Indonesia is home to approximately 2 million hectares of existing sugar palm plantations, primarily used for producing palm sugar, fiber, and fruit. According to the Agriculture Ministry, national palm sugar output stands at about 30,000 tons per year.
Despite its promise, the sugar palm’s potential as a bioethanol feedstock remains largely untapped. Jakarta Globe
---------
Palm Oil Is The Key To Prabowo's Government To Achieve Fuel Independence
JAKARTA Unpad economic observer, Ina Primiana assessed, the ideals of independence and energy sustainability can be realized by referring to oil palm which has great potential as raw material for fuel oil (BBM) in the future.
In my opinion, the potential for fuel is palm oil. Now, 67 percent of palm oil has become processed products. One of them is fuel," he said in a written statement, Sunday, May 11.
Previously, President Prabowo Subianto at the Halalbihalal Retired TNI AD event, in Jakarta, Tuesday, May 6, stated his government's determination to achieve fuel independence in the next five years.
According to Ina, to achieve the self-sufficiency target of palm oil-based fuel in the next five years, accurate and comprehensive data is needed as well as the importance of mapping production, domestic needs, and detailed export volume of palm oil.
"Well, to reach those five years, there needs to be data on how much our palm oil produces, then for what. How much is exported? How much is it for domestic needs," he said.
Therefore, he reminded that the calculation should be carried out thoroughly taking into account the current conditions and projections in the next five years.
Ina emphasized that despite being one of the largest producers, Indonesia still has to consider many aspects, including the position of other countries such as Malaysia.
The government's policy in maintaining the sustainability of palm oil production, including through the replanting process and strengthening supply chains from upstream to downstream is also important. So, it depends on the government's policy to protect it from upstream to downstream. To want everything, the supply chain must also be maintained," said Ina.
He considered that President Prabowo's target was very important to be followed up.
Moreover, he continued, Indonesia has experienced a fuel deficit since 2004.
Currently, 56 percent or about 284 million barrels of Indonesian fuel supply are imported.
"If the average world oil price is in the range of 70 US dollars per barrel, then we spend nearly 20 billion US dollars, or the equivalent of about 9 percent of the state budget. Therefore, to achieve the energy independence target, we also need to find an allerated fuel source," said Ina. VOI
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Palm oil downstreaming to meet Indonesians nutritional needs: ministry
Jakarta (ANTARA) - The Ministry of Industry continues to accelerate the downstreaming of palm oil businesses, especially for products containing beta-carotene (pro vitamin A) and tocopherol (vitamin E), to meet people’s nutritional needs.
According to the ministry’s director general of agro industry, Putu Juli Ardika, not many people realize that palm oil contains important nutrients such as beta-carotene, tocopherol, medium chain triglyceride (MCT), squalane and antioxidants, which are good to maintain body health.
He explained that the modern palm oil production process through chemical oil refining actually eliminates the natural important nutritional content of palm oil. So, vitamin needs can be met from synthetic health supplements or from other sources.
"Vitamin supplementation from plant sources, including from naturally processed palm oil, is a smart option to maintain adequate nutrition for the people, especially for vulnerable groups such as school children and pregnant or breastfeeding mothers," Ardika said in his statement on Sunday.
Therefore, the Ministry of Industry is supporting the facilitation of a collaborative research between the Indonesian Palm Oil Society (MAKSI) and state-owned pharmaceutical company PT Kimia Farma, by preparing the draft of Indonesian National Standard (RSNI) for palm oil-based supplement products.
The SNI for health supplement products is considered very important to open up opportunities for all stakeholders, including SOEs, private companies and other related parties to be involved in the national program to provide adequate nutrition for the people -- including the free meals program.
Among the supports from the ministry is holding a scientific technical meeting to finalize the concept of developing supplement products with national nutrition experts, he added.
The Ministry of Industry will also bridge the legal aspects of cooperation including intellectual property management and determine the requirements, so the results of this collaborative research can be implemented into a national scale program, especially to support the free meals program.
“We hope the pioneer model of collaborative research between MAKSI and PT Kimia Farma in palm oil-based health supplement products can be a new milestone in the development of the agro-industry sector, which has the potential to be explored for the commercial industrial scale," Ardika concluded. Antara News
---------
Balancing Sustainability And Inclusion: Towards The Malaysianisation Of The EUDR
by Dr Pieter E Stek & Dr Asad Ata
The European Union Deforestation Regulation (EUDR) and its implications for Malaysian palm oil have sparked significant debate. Rather than taking sides on the issue, it is more productive to examine it through the lens of standard-setting. Malaysia has a long history of developing its own sustainability standards for palm oil, and incorporating some of these innovative approaches into the EUDR could pave the way for a collaborative and mutually beneficial implementation strategy.
Standard-setting rarely captures public attention, yet its implications are far-reaching. Standards reduce transaction costs, foster trust among buyers, and level the playing field for producers. They drive technological innovation and disseminate best practices. Think of the HACCP standards ensuring food safety, Euro 5 emissions standards regulating car pollution in Malaysia, or ISO certifications that set benchmarks across industries. Though not perfect, standards generally promote efficiency and economic growth.
However, the creation and implementation of standards are rarely as objective as they seem. The process often involves a small group of technical experts whose decisions may reflect groupthink or political considerations. While grounded in science, standards are also shaped by power dynamics as countries advocate for standards that benefit their own industries. Unintended consequences, particularly for marginalised groups, often arise from seemingly well-intentioned standards.
The EUDR offers a pertinent example. This relatively straightforward regulation aims to combat climate change by banning imports of goods linked to deforestation. The intent is commendable: Addressing the economic drivers of deforestation. Yet, the execution risks sidelining Malaysia’s smallholder farmers, who play a significant role in the country’s palm oil supply chain.
Malaysia’s palm oil sector comprises around 250,000 independent small farmers. Their supply chain operates through layers of middlemen who collect and aggregate fruit from various farmers to supply mills. This system, while dynamic, widespread and largely informal, is often opaque. Middlemen prioritise commercial confidentiality, complicating traceability. While large plantations can demonstrate compliance with the EUDR relatively easily, smallholders face significant hurdles, despite not being inherently linked to deforestation.
Research shows that most smallholders are not expanding into recently deforested areas and that they often manage land with greater biodiversity than large-scale plantations. However, these farmers struggle with record-keeping and reporting, particularly in remote regions with limited access to technology and education. The unintended consequence of the EUDR is clear: Smallholders risk exclusion from the supply chain due to systemic barriers, not environmental non-compliance.
Recognising the need for inclusive sustainability, Malaysia introduced the Malaysian Sustainable Palm Oil (MSPO) certification in 2015. Unlike the more demanding Roundtable on Sustainable Palm Oil standard, the MSPO was designed to be attainable for local producers, particularly smallholders.
One of the MSPO’s key innovations is its territorial approach to certification, organising the country into 162 Sustainable Palm Oil Clusters (SPOCs). Each cluster has an internal control system to monitor and support the smallholders within the cluster. It is managed by a group manager who is also a Tunjuk Ajar Nasihat Sawit officer, supporting farmers in adopting sustainable practices. This model shifts the focus from sustainability compliance to capacity-building. In principle, the SPOC system could also be used to monitor deforestation and thus form a pathway towards compliance under the EUDR.
The SPOC system provides an inclusive framework, prioritising education and gradual improvement over exclusion. It recognises that sustainability is a journey, and not a binary status. For smallholders, this approach offers a simpler path to certification without undermining their livelihoods.
Malaysia should advocate for a territorial approach, similar to SPOCs, when negotiating about the implementation of the EUDR. By adopting a territorial approach for low-risk regions with minimal deforestation, small farmers could automatically be deemed compliant.
This territorial approach is viable due to the spatial structure of palm oil cultivation. The intake of palm oil mills is limited by their transportation radius, as palm fruit typically needs to be processed within 24 hours. For practical and economic reasons, transportation beyond 50km to 100km is usually not viable, depending also on the quality of infrastructure. This means that mills located some distance away from deforested areas are unlikely to receive fruit from unsustainable sources. Additional electronic monitoring of key roads could further prevent such spillovers.
For areas with higher deforestation risks, or for large producers, a hybrid model could be implemented. Additional scrutiny and record-keeping would apply where necessary, with the threat of area-wide sanctions acting as a deterrent against illegal deforestation. This localised approach balances the EUDR’s environmental goals with the economic realities of small farmers.
A territorial approach also creates opportunities for collaboration. By allowing for renegotiation and co-regulation, the EUDR could incorporate local expertise and address on-the-ground challenges. Malaysia’s SPOC system already offers a scalable framework for monitoring deforestation and facilitating traceability. By leveraging this existing infrastructure, the EU can ensure compliance without disproportionately penalising smallholders.
Critics may argue that a territorial approach dilutes accountability, potentially creating market distortions. However, such concerns can be mitigated through a phased strategy. Over time, the system could transition to more granular, farm-level traceability as technology and farmer capacity improve. This hybrid model ensures immediate action while building a foundation for long-term sustainability.
Importantly, territorial compliance recognises the shared responsibility of regulators and producers. It aligns with principles of inclusivity and equity, ensuring that marginalised groups are not unfairly burdened by standards designed in distant bureaucratic corridors.
The EUDR’s anti-deforestation goal is laudable, but its implementation must be adaptable to diverse local contexts. Malaysia’s existing SPOC system under the MSPO offers a realistic regulatory framework. By embracing a Malaysianised approach to the EUDR, the EU can effectively balance its environmental goals with practical considerations, ensuring small farmers remain within sustainable global supply chains. Ultimately, a locally-informed approach does not merely create fairer standards; it fosters genuine collaboration, drives meaningful compliance and supports long-term sustainability.
This approach exemplifies how standard-setting can transcend technical expertise and power politics to create genuinely fair and effective solutions. In an interconnected world, sustainability must be a shared endeavour — one that respects local realities while striving for global impact.
The Malaysianisation of the EUDR is not just a call for better regulation; it is a call for a more inclusive and equitable approach to sustainability. Business Today
---------
Arunachal's Lower Dibang Valley hosts mega oil palm plantation drive to boost self-reliance
In a significant push towards agricultural self-reliance, a Mega Oil Palm Plantation Drive was held today at Aara-Camp, Abali in Roing, Lower Dibang Valley district. The event saw the active participation of Arunachal Pradesh's Minister of Agriculture, Horticulture, Veterinary, Fisheries & Allied Sectors, Gabriel D Wangsu.
In a significant push towards agricultural self-reliance, a Mega Oil Palm Plantation Drive was held today at Aara-Camp, Abali in Roing, Lower Dibang Valley district. The event saw the active participation of Arunachal Pradesh's Minister of Agriculture, Horticulture, Veterinary, Fisheries & Allied Sectors, Gabriel D Wangsu.
Organised jointly by 3F Oil Palm and the District Agriculture Office, Roing, the drive was conducted under the theme ‘Sowing for a Better Future’, reflecting the state’s commitment to sustainable agricultural expansion.
Minister Wangsu, while addressing the gathering, lauded the success stories of local farmers who have transformed their livelihoods through oil palm cultivation. He noted that their achievements stand as a replicable model for other farming communities across Arunachal Pradesh, showcasing the economic potential of oil palm farming when practiced sustainably.
Arunachal Pradesh is emerging as a frontrunner in India's National Mission on Edible Oils–Oil Palm (NMEO-OP), having already established two oil palm processing factories. This initiative is contributing significantly to the broader national vision of Atmanirbhar Bharat (self-reliant India), aiming to reduce dependence on imported edible oils. India TodayNE
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May 10, 2025
Indonesia targets global supremacy for 10 commodities according to Ministry
Sukabumi, West Java (ANTARA) - Deputy Agriculture Minister Sudaryono stated that President Prabowo Subianto aims for Indonesia to become the world's superior producer of 10 agricultural commodities by increasing productivity, supported by research, financing, and development using modern technology.
"The president has instructed the agriculture minister to prepare 10 commodities for us to become the world's superior producer," he stated on Friday (May 9).
He listed nutmeg, coconut, palm oil, rubber, coffee, cocoa, pepper, and garlic among these commodities.
"We are pursuing efforts to become self-sufficient, meaning stopping our imports and exporting our produce. That is our goal," he remarked.
According to Sudaryono, superior commodities such as coffee, cocoa, and certain refreshing plants have significant export potential, although their productivity per hectare remains lower than in other countries such as Vietnam.
President Prabowo is reportedly targeting Indonesian plantation commodities to lead global production and exports. However, Sudaryono did not elaborate on the other two remaining commodities.
In addition to targeting self-sufficiency in rice, corn, consumer sugar, and consumer salt, Sudaryono stated that the government is also preparing downstreaming initiatives for the agro sector to increase the added value of agricultural products and expand export markets.
He remarked that an investment and financing scheme is being prepared to support the national rejuvenation program for plantation crops such as coffee, palm oil, and coconut.
"We are currently calculating the amount of the investment needed," he stated.
The deputy minister emphasized that the infrastructure and research results are already in place and are awaiting commitment to implement the strategic steps that have been designed.
"We are also preparing the modules. At least in the fourth quarter of this year, we can start rejuvenating coffee, palm oil, and coconut. We will be working on the yield, the ability to harvest, and others," he stated. Antara News
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Systemic imbalances leave West African oil palm farmers struggling despite crucial role in production
A new report, Palm Oil Barometer 2025: Procurement for Prosperity, is calling for a major overhaul in global palm oil procurement practices to ensure fairer value distribution for smallholder farmers in West Africa.
The report, developed by Solidaridad and endorsed by smallholder representatives and industry experts, highlights systemic imbalances that leave farmers struggling despite their crucial role in production.
Smallholders bear the brunt of an unbalanced system.
Oil palm is a lifeline for millions in West Africa, providing food security and income while offering a pathway out of poverty. However, the report reveals that smallholders – who manage the majority of production – receive only a fraction of the profits.
In Ghana, smallholders cultivate 81% of oil palm areas but face low yields and poor market access. Similarly, in Nigeria, they contribute 80% of production but grapple with outdated processing methods and insufficient infrastructure. Côte d’Ivoire and Sierra Leone rely heavily on small-scale farmers, who manage 73% and 70% of production, respectively.
Despite this, West Africa remains a net importer of palm oil, with systemic barriers preventing smallholders from boosting productivity and incomes.
The report finds that smallholders struggle to invest in sustainable farming due to low incomes, volatile prices, and climate change impacts.
Michael Opong, an oil palm farmer in Ghana’s Eastern Region, explains: “Most farmers lack proper tools and infrastructure, leading to low yields. Even with training, incomes are too low to invest in improvements. We need consistent support to break these barriers.”
Without fair pricing and financial support, farmers resort to short-term survival tactics, sometimes worsening environmental degradation. Land tenure insecurity further discourages long-term sustainability investments.
A Call for “Procurement for Prosperity”
he report proposes a shift from traditional sourcing to “Procurement for Prosperity,” built on four principles – Policy, Pricing, Partnerships, and Programmes.
Senior Policy Advisor at Solidaridad Europe, Marieke Leegwater emphasized that “demanding sustainability isn’t enough. Companies must ensure fair prices and include smallholders in the value chain.”
With new regulations like the EU Deforestation Regulation (EUDR) taking effect, the report urges a balanced approach that combats deforestation while safeguarding smallholder rights. 3News
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Indonesia targets global supremacy for 10 commodities according to Ministry
Sukabumi, West Java (ANTARA) - Deputy Agriculture Minister Sudaryono stated that President Prabowo Subianto aims for Indonesia to become the world's superior producer of 10 agricultural commodities by increasing productivity, supported by research, financing, and development using modern technology.
"The president has instructed the agriculture minister to prepare 10 commodities for us to become the world's superior producer," he stated on Friday (May 9).
He listed nutmeg, coconut, palm oil, rubber, coffee, cocoa, pepper, and garlic among these commodities.
"We are pursuing efforts to become self-sufficient, meaning stopping our imports and exporting our produce. That is our goal," he remarked.
According to Sudaryono, superior commodities such as coffee, cocoa, and certain refreshing plants have significant export potential, although their productivity per hectare remains lower than in other countries such as Vietnam.
President Prabowo is reportedly targeting Indonesian plantation commodities to lead global production and exports. However, Sudaryono did not elaborate on the other two remaining commodities.
In addition to targeting self-sufficiency in rice, corn, consumer sugar, and consumer salt, Sudaryono stated that the government is also preparing downstreaming initiatives for the agro sector to increase the added value of agricultural products and expand export markets.
He remarked that an investment and financing scheme is being prepared to support the national rejuvenation program for plantation crops such as coffee, palm oil, and coconut.
"We are currently calculating the amount of the investment needed," he stated.
The deputy minister emphasized that the infrastructure and research results are already in place and are awaiting commitment to implement the strategic steps that have been designed.
"We are also preparing the modules. At least in the fourth quarter of this year, we can start rejuvenating coffee, palm oil, and coconut. We will be working on the yield, the ability to harvest, and others," he stated. Antara News
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Systemic imbalances leave West African oil palm farmers struggling despite crucial role in production
A new report, Palm Oil Barometer 2025: Procurement for Prosperity, is calling for a major overhaul in global palm oil procurement practices to ensure fairer value distribution for smallholder farmers in West Africa.
The report, developed by Solidaridad and endorsed by smallholder representatives and industry experts, highlights systemic imbalances that leave farmers struggling despite their crucial role in production.
Smallholders bear the brunt of an unbalanced system.
Oil palm is a lifeline for millions in West Africa, providing food security and income while offering a pathway out of poverty. However, the report reveals that smallholders – who manage the majority of production – receive only a fraction of the profits.
In Ghana, smallholders cultivate 81% of oil palm areas but face low yields and poor market access. Similarly, in Nigeria, they contribute 80% of production but grapple with outdated processing methods and insufficient infrastructure. Côte d’Ivoire and Sierra Leone rely heavily on small-scale farmers, who manage 73% and 70% of production, respectively.
Despite this, West Africa remains a net importer of palm oil, with systemic barriers preventing smallholders from boosting productivity and incomes.
The report finds that smallholders struggle to invest in sustainable farming due to low incomes, volatile prices, and climate change impacts.
Michael Opong, an oil palm farmer in Ghana’s Eastern Region, explains: “Most farmers lack proper tools and infrastructure, leading to low yields. Even with training, incomes are too low to invest in improvements. We need consistent support to break these barriers.”
Without fair pricing and financial support, farmers resort to short-term survival tactics, sometimes worsening environmental degradation. Land tenure insecurity further discourages long-term sustainability investments.
A Call for “Procurement for Prosperity”
he report proposes a shift from traditional sourcing to “Procurement for Prosperity,” built on four principles – Policy, Pricing, Partnerships, and Programmes.
Senior Policy Advisor at Solidaridad Europe, Marieke Leegwater emphasized that “demanding sustainability isn’t enough. Companies must ensure fair prices and include smallholders in the value chain.”
With new regulations like the EU Deforestation Regulation (EUDR) taking effect, the report urges a balanced approach that combats deforestation while safeguarding smallholder rights. 3News
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May 09, 2025
Palm Kernel Shell (PKS) Market Growth Driven by Biomass Energy Demand | Valuates Reports
Palm Kernel Shell (PKS) Market Size
The global market for Palm Kernel Shell (PKS) was valued at US$ 1815 million in the year 2024 and is projected to reach a revised size of US$ 3133 million by 2031, growing at a CAGR of 8.7% during the forecast period.
View sample report
https://reports.valuates.com/request/sample/QYRE-Auto-36Y18765/Global_Palm_Kernel_Shell_PKS_Market_Research_Report_2025
The Palm Kernel Shell (PKS) market is gaining strong momentum as industries increasingly adopt renewable and sustainable energy sources. Derived as a byproduct of palm oil production, PKS has emerged as an efficient and cost-effective biomass fuel, especially for industrial-scale applications. Its relatively high calorific value and low moisture content make it suitable for combustion, replacing traditional fossil fuels in power generation and heating systems.
The growth of the PKS market is largely influenced by global efforts to reduce carbon emissions and reliance on coal and petroleum-based energy. Governments and industries across various regions are promoting bioenergy as part of their clean energy transitions, which has spurred interest in materials like PKS. This trend is particularly evident in countries with stringent environmental policies, where biomass energy plays a crucial role in meeting climate targets.
Manufacturers and energy providers are investing in advanced technologies to process and refine PKS into more consistent and transportable forms such as pellets and briquettes. These innovations are improving supply chain efficiency and expanding PKS adoption in both domestic and international markets. Additionally, partnerships between palm oil producers and energy firms are streamlining the sourcing and distribution of PKS for biomass power plants.
Southeast Asia, with its abundant palm oil production, remains the key supplier in the global PKS market. Meanwhile, nations in East Asia and parts of Europe are becoming significant consumers due to their growing energy needs and environmental commitments. This export-import dynamic is shaping global trade flows and encouraging further development in PKS infrastructure and logistics.
Overall, the Palm Kernel Shell market is positioned for steady expansion, supported by its environmental benefits, economic viability, and increasing acceptance as a mainstream renewable energy resource. As energy systems evolve and sustainability goals intensify, PKS is expected to play an important role in the global biomass fuel landscape. OpenPR
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East Kutai Regency in Indonesia turns palm oil waste into power electrifying remote villages
The East Kutai Regency Administration is taking proactive steps to harness renewable energy by converting palm oil waste into biogas to fuel power generation − an initiative aimed at bringing electricity to remote villages.
“We will facilitate a partnership scheme between (State power utility) PLN and palm oil companies to utilize palm oil effluent and convert it into biogas,” Arif Nur Wahyuni, Head of Natural Resources at the East Kutai Regency Administration, said in Sangatta on Tuesday, May 7, 2025.
Currently, 22 out of 141 villages in East Kutai remain without access to electricity. The local government sees the untapped energy potential of palm oil waste as a sustainable solution to close this gap.
Wahyuni emphasized that East Kutai has vast oil palm plantations, generating substantial waste that, if left unmanaged, can harm the environment. Poor waste handling not only threatens ecosystems but also contributes significantly to atmospheric methane emissions.
“As the central government continues to phase out fossil fuels, the future lies in green energy − including palm oil biogas. If processed with biodigester technology, methane emissions from palm waste can be captured and used as fuel for power plants,” she said.
Beyond environmental benefits, using biogas offers economic efficiency. However, Wahyuni noted that transitioning to renewable energy is not without challenges.
Joko Pratomo, Biogas and Power Plant Manager at PT Prima Multi Mineral (PMM) in Sangkulirang, outlined key barriers to biogas utilization in East Kutai.
“Not all factories have access to proper biogas processing technology. Major investments and limited human resources are the main hurdles,” he said.
He also pointed to biogas distribution as a technical obstacle. “To sell biogas-based energy to PLN, we need an integrated power grid and supportive pricing regulations. Unfortunately, not all plants in East Kutai are near the national electricity network,” he added.
Despite the hurdles, the initiative highlights a promising path forward − where waste is no longer a burden but a resource, and sustainable energy can power rural progress. Indonesia Business Report
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Malaysia Deepens Sustainable Palm Oil Ties With East Africa During Minister’s Visit To Kenya
Malaysia is strengthening its presence in East Africa’s edible oils market as Minister of Plantation and Commodities, Datuk Seri Johari Abdul Ghani, led a high-level delegation to Kenya to enhance trade cooperation and sustainable palm oil exports to the region.
The visit marks a strategic move to capitalise on Kenya’s role as East Africa’s economic gateway, with the country emerging as the largest importer of Malaysian palm oil in Sub-Saharan Africa, accounting for 1.3 million metric tonnes out of a record 3.7 million tonnes exported to the continent in 2024.
During the mission, Johari held a roundtable with 19 key players from Kenya’s oils and fats sector, where discussions centred on unlocking new trade opportunities, improving market access, and positioning Kenya as a downstream processing hub for re-exports to regions including the European Union.
The minister reaffirmed Malaysia’s commitment to sustainable palm oil, assuring stakeholders of continued government support. At the session, Malaysian Palm Oil Council (MPOC) Chief Executive Officer Belvinder Sron highlighted the doubling of Malaysian palm oil exports to Kenya in five years, from 520,758 tonnes in 2020 to 1.26 million tonnes in 2024, attributing the growth to Kenya’s expanding manufacturing base and rising edible oil demand.
The delegation also toured the facilities of Golden Africa Kenya Ltd and BIDCO Africa, where the minister was briefed on operations and innovations supporting regional food security. At Unilever Kenya, he emphasised that all Malaysian palm oil exports are fully certified under the Malaysian Sustainable Palm Oil (MSPO) standard.
Belvinder Sron said, “Kenya is not just a market, it is a gateway to a wider East African region. With rising demand for edible oils, a dynamic manufacturing base, and improving logistics infrastructure, Kenya offers significant long-term opportunities for Malaysian palm oil.”
MPOC’s increased outreach in Africa through trade missions and buyer-seller networking has helped facilitate greater market access, aligning with Malaysia’s strategy to diversify its palm oil exports beyond traditional markets.
The visit signals Malaysia’s long-term commitment to building sustainable and mutually beneficial trade partnerships in high-growth regions. Business Today
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SOP first Sarawak palm oil company to partner conservation foundation
MIRI: Sarawak Oil Palms Bhd (SOP) has become the first palm oil company in the state to formalise a collaboration with the Malaysian Palm Oil Green Conservation Foundation (MPOGCF).
The signing of a Memorandum of Understanding (MoU) between the two organisations took place at SOP’s headquarters in Miri yesterday.
Originally announced during an event in Genting Highlands last year, the now-official partnership aims to protect and manage High Conservation Value (HCV) areas across plantation landscapes through a combination of scientific research, environmental stewardship, and community engagement.
“This partnership reaffirms SOP’s unwavering commitment to responsible palm oil practices,” said SOP Chief Operating Officer, Eric Kiu.
“As we continue to grow, we must also deepen our stewardship of the environment. Working together with MPOGCF enables us to apply scientific knowledge, foster collaboration, and translate sustainability goals into real, on-the-ground impact.
“It’s not just about compliance; it’s about creating a legacy of care for future generations.”
MPOGCF Board of Trustees Chairman, Datuk Yusran Shah Mohd Yusof, said the MoU represents more than just a formal agreement.
“It is a testament to our shared belief that industry and conservation can move forward together,” he added.
As part of the agreement, SOP and MPOGCF will carry out a scientific expedition in Murum, Sarawak, from May 19 to 25.
The study will focus on biodiversity in HCV zones, and examine methods to enhance wildlife corridors, safeguard ecosystems, and support local communities, all while ensuring sustainable plantation operations. Sarawak Tribune
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Presco doubles profit as palm oil boom drives record earnings
Nigeria’s biggest palm oil maker, Presco Plc has delivered a record-breaking performance in the first quarter of 2025, with pre-tax profit nearly doubling to N58.6 billion, highlighting the strength of its integrated edible oil business model amid rising demand and disciplined cost management.
The company’s revenue surged by 120.4 percent to N93.8 billion, up from N42.5 billion in Q1 2024, as it capitalised on higher prices and volumes in Nigeria’s growing vegetable oil market.
This sharp revenue expansion reflects Presco’s operational scale and strong downstream value chain, reinforcing its dominance in the oil palm sector.
Gross profit for the quarter jumped by 154.8 percent to N86.1 billion, while operating profit grew 117.6 percent year-on-year to N69.1 billion. The earnings momentum translated into a robust 97.8 percent rise in profit after tax to N47.6 billion, from N24.1 billion in the same period last year. Business TodayNG
Palm Kernel Shell (PKS) Market Growth Driven by Biomass Energy Demand | Valuates Reports
Palm Kernel Shell (PKS) Market Size
The global market for Palm Kernel Shell (PKS) was valued at US$ 1815 million in the year 2024 and is projected to reach a revised size of US$ 3133 million by 2031, growing at a CAGR of 8.7% during the forecast period.
View sample report
https://reports.valuates.com/request/sample/QYRE-Auto-36Y18765/Global_Palm_Kernel_Shell_PKS_Market_Research_Report_2025
The Palm Kernel Shell (PKS) market is gaining strong momentum as industries increasingly adopt renewable and sustainable energy sources. Derived as a byproduct of palm oil production, PKS has emerged as an efficient and cost-effective biomass fuel, especially for industrial-scale applications. Its relatively high calorific value and low moisture content make it suitable for combustion, replacing traditional fossil fuels in power generation and heating systems.
The growth of the PKS market is largely influenced by global efforts to reduce carbon emissions and reliance on coal and petroleum-based energy. Governments and industries across various regions are promoting bioenergy as part of their clean energy transitions, which has spurred interest in materials like PKS. This trend is particularly evident in countries with stringent environmental policies, where biomass energy plays a crucial role in meeting climate targets.
Manufacturers and energy providers are investing in advanced technologies to process and refine PKS into more consistent and transportable forms such as pellets and briquettes. These innovations are improving supply chain efficiency and expanding PKS adoption in both domestic and international markets. Additionally, partnerships between palm oil producers and energy firms are streamlining the sourcing and distribution of PKS for biomass power plants.
Southeast Asia, with its abundant palm oil production, remains the key supplier in the global PKS market. Meanwhile, nations in East Asia and parts of Europe are becoming significant consumers due to their growing energy needs and environmental commitments. This export-import dynamic is shaping global trade flows and encouraging further development in PKS infrastructure and logistics.
Overall, the Palm Kernel Shell market is positioned for steady expansion, supported by its environmental benefits, economic viability, and increasing acceptance as a mainstream renewable energy resource. As energy systems evolve and sustainability goals intensify, PKS is expected to play an important role in the global biomass fuel landscape. OpenPR
---------
East Kutai Regency in Indonesia turns palm oil waste into power electrifying remote villages
The East Kutai Regency Administration is taking proactive steps to harness renewable energy by converting palm oil waste into biogas to fuel power generation − an initiative aimed at bringing electricity to remote villages.
“We will facilitate a partnership scheme between (State power utility) PLN and palm oil companies to utilize palm oil effluent and convert it into biogas,” Arif Nur Wahyuni, Head of Natural Resources at the East Kutai Regency Administration, said in Sangatta on Tuesday, May 7, 2025.
Currently, 22 out of 141 villages in East Kutai remain without access to electricity. The local government sees the untapped energy potential of palm oil waste as a sustainable solution to close this gap.
Wahyuni emphasized that East Kutai has vast oil palm plantations, generating substantial waste that, if left unmanaged, can harm the environment. Poor waste handling not only threatens ecosystems but also contributes significantly to atmospheric methane emissions.
“As the central government continues to phase out fossil fuels, the future lies in green energy − including palm oil biogas. If processed with biodigester technology, methane emissions from palm waste can be captured and used as fuel for power plants,” she said.
Beyond environmental benefits, using biogas offers economic efficiency. However, Wahyuni noted that transitioning to renewable energy is not without challenges.
Joko Pratomo, Biogas and Power Plant Manager at PT Prima Multi Mineral (PMM) in Sangkulirang, outlined key barriers to biogas utilization in East Kutai.
“Not all factories have access to proper biogas processing technology. Major investments and limited human resources are the main hurdles,” he said.
He also pointed to biogas distribution as a technical obstacle. “To sell biogas-based energy to PLN, we need an integrated power grid and supportive pricing regulations. Unfortunately, not all plants in East Kutai are near the national electricity network,” he added.
Despite the hurdles, the initiative highlights a promising path forward − where waste is no longer a burden but a resource, and sustainable energy can power rural progress. Indonesia Business Report
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Malaysia Deepens Sustainable Palm Oil Ties With East Africa During Minister’s Visit To Kenya
Malaysia is strengthening its presence in East Africa’s edible oils market as Minister of Plantation and Commodities, Datuk Seri Johari Abdul Ghani, led a high-level delegation to Kenya to enhance trade cooperation and sustainable palm oil exports to the region.
The visit marks a strategic move to capitalise on Kenya’s role as East Africa’s economic gateway, with the country emerging as the largest importer of Malaysian palm oil in Sub-Saharan Africa, accounting for 1.3 million metric tonnes out of a record 3.7 million tonnes exported to the continent in 2024.
During the mission, Johari held a roundtable with 19 key players from Kenya’s oils and fats sector, where discussions centred on unlocking new trade opportunities, improving market access, and positioning Kenya as a downstream processing hub for re-exports to regions including the European Union.
The minister reaffirmed Malaysia’s commitment to sustainable palm oil, assuring stakeholders of continued government support. At the session, Malaysian Palm Oil Council (MPOC) Chief Executive Officer Belvinder Sron highlighted the doubling of Malaysian palm oil exports to Kenya in five years, from 520,758 tonnes in 2020 to 1.26 million tonnes in 2024, attributing the growth to Kenya’s expanding manufacturing base and rising edible oil demand.
The delegation also toured the facilities of Golden Africa Kenya Ltd and BIDCO Africa, where the minister was briefed on operations and innovations supporting regional food security. At Unilever Kenya, he emphasised that all Malaysian palm oil exports are fully certified under the Malaysian Sustainable Palm Oil (MSPO) standard.
Belvinder Sron said, “Kenya is not just a market, it is a gateway to a wider East African region. With rising demand for edible oils, a dynamic manufacturing base, and improving logistics infrastructure, Kenya offers significant long-term opportunities for Malaysian palm oil.”
MPOC’s increased outreach in Africa through trade missions and buyer-seller networking has helped facilitate greater market access, aligning with Malaysia’s strategy to diversify its palm oil exports beyond traditional markets.
The visit signals Malaysia’s long-term commitment to building sustainable and mutually beneficial trade partnerships in high-growth regions. Business Today
---------
SOP first Sarawak palm oil company to partner conservation foundation
MIRI: Sarawak Oil Palms Bhd (SOP) has become the first palm oil company in the state to formalise a collaboration with the Malaysian Palm Oil Green Conservation Foundation (MPOGCF).
The signing of a Memorandum of Understanding (MoU) between the two organisations took place at SOP’s headquarters in Miri yesterday.
Originally announced during an event in Genting Highlands last year, the now-official partnership aims to protect and manage High Conservation Value (HCV) areas across plantation landscapes through a combination of scientific research, environmental stewardship, and community engagement.
“This partnership reaffirms SOP’s unwavering commitment to responsible palm oil practices,” said SOP Chief Operating Officer, Eric Kiu.
“As we continue to grow, we must also deepen our stewardship of the environment. Working together with MPOGCF enables us to apply scientific knowledge, foster collaboration, and translate sustainability goals into real, on-the-ground impact.
“It’s not just about compliance; it’s about creating a legacy of care for future generations.”
MPOGCF Board of Trustees Chairman, Datuk Yusran Shah Mohd Yusof, said the MoU represents more than just a formal agreement.
“It is a testament to our shared belief that industry and conservation can move forward together,” he added.
As part of the agreement, SOP and MPOGCF will carry out a scientific expedition in Murum, Sarawak, from May 19 to 25.
The study will focus on biodiversity in HCV zones, and examine methods to enhance wildlife corridors, safeguard ecosystems, and support local communities, all while ensuring sustainable plantation operations. Sarawak Tribune
---------
Presco doubles profit as palm oil boom drives record earnings
Nigeria’s biggest palm oil maker, Presco Plc has delivered a record-breaking performance in the first quarter of 2025, with pre-tax profit nearly doubling to N58.6 billion, highlighting the strength of its integrated edible oil business model amid rising demand and disciplined cost management.
The company’s revenue surged by 120.4 percent to N93.8 billion, up from N42.5 billion in Q1 2024, as it capitalised on higher prices and volumes in Nigeria’s growing vegetable oil market.
This sharp revenue expansion reflects Presco’s operational scale and strong downstream value chain, reinforcing its dominance in the oil palm sector.
Gross profit for the quarter jumped by 154.8 percent to N86.1 billion, while operating profit grew 117.6 percent year-on-year to N69.1 billion. The earnings momentum translated into a robust 97.8 percent rise in profit after tax to N47.6 billion, from N24.1 billion in the same period last year. Business TodayNG
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May 08, 2025
Oil Palm: Solidaridad Makes Case For Fairer Value Chains To Protect West African Smallholder Farmers
Solidaridad West Africa, an international non governmental organisation has called for an overhaul of global palm oil procurement systems to ensure fairer value distribution for smallholder farmers, who produce the bulk of West Africa’s palm oil but continue to receive the smallest share of its benefits.
The Palm Oil Barometer 2025: tagged “Procurement for Prosperity”, released on Wednesday by Solidaridad West Africa in partnership with global and regional stakeholders and made available to newsmen in Uyo on Wednesday highlights deep-rooted inequities in the palm oil supply chain.
The report therefore urges governments, industry players, and certification platforms to adopt a more inclusive model that prioritizes smallholder livelihoods.
The report indicated that in countries like Nigeria and Ghana, smallholders are responsible for up to 80% of oil palm production but remain trapped in poverty due to limited access to markets, outdated tools, and insufficient infrastructure.
Côte d’Ivoire and Sierra Leone, according to the report, also face similar issues, with smallholders accounting for over 70% of national output yet struggling with low productivity and weak market links.
“Governments and industry, in collaboration with sustainability certification platforms, need to adopt a new business model, one that supports improved access to inputs and markets for independent smallholder farmers.” said Muthalir Ramasamy Chandran, Chairman of IRGA.AG and advisor to the Roundtable on Sustainable Palm Oil.
The international NGO maintained that while the palm oil sector increasingly demands sustainable production, farmers often lack the resources to invest in such practices. The report warns that climate-related challenges and price volatility are compounding the risks faced by smallholders.
The report warns that continued underinvestment in smallholders could jeopardize food security, escalate environmental degradation, and destabilize the regional palm oil industry. Adding that insecure land tenure and a lack of technical support are also preventing farmers from adopting long-term sustainability practices.
To further address challenges facing farmers, Solidaridad West Africa says it is is championing a new approach called “Procurement for Prosperity.” A model which outlines four core principles: inclusive policy frameworks, fair pricing mechanisms, equitable partnerships, and tailored programmes to strengthen smallholder capacity and access to finance.
“Simply demanding sustainable production is insufficient,. Companies need to commit to an inclusive value chain and enable sustainable production by paying fair prices that make a living income possible.” Marieke Leegwater, Senior Policy Advisor at Solidaridad Europe said IndependentNG
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2025 palm oil barometer calls for fairer palm oil value chains in West Africa
Accra, May 7, GNA – A new report, Palm Oil Barometer 2025: Procurement for Prosperity has called for a fundamental shift in global palm oil procurement practices.
The report emphasized the need for equitable value distribution to support smallholder farmers in West Africa.
It said oil palm remained a vital crop for food security, a source of income for millions, especially smallholder farmers across West Africa, and has the potential to help farming families emerge from poverty within a single generation.
The 2025 Palm Oil Barometer, developed by Solidaridad and co-signed by various smallholder representatives and experts, identified critical imbalances in the current market, where smallholders often receive a disproportionately small share of profits despite their significant contributions.
In Ghana, smallholders manage approximately 81 per cent of the nation’s oil palm area, yet many faced low yields and limited access to markets.
Similarly, in Nigeria, smallholders contribute to 80% of production but struggle with outdated processing methods and insufficient infrastructure.
The report said Côte d’Ivoire’s smallholders manage 73 per cent of oil palm areas, while in Sierra Leone, small-scale farmers account for about 70% of production, often relying on wild palm groves.
Meanwhile, West Africa consumes more palm oil than it produces, and many countries depend on imports.
“This imbalance, compounded by systemic barriers, limits smallholder farmers’ ability to increase incomes and contribute to national food security,” it said.
Mr Muthalir Ramasamy Chandran, Chairman at IRGA.AG and Advisor to Roundtable on Sustainable Palm Oil, said, “Governments and industry in collaboration with sustainability certification platforms, need to adopt a new business model for engagement, organizational development, and capacity building, that supports improved access to inputs and markets for independent smallholder farmers.”
The core finding of the 2025 Palm Oil Barometer was that value was inequitably distributed throughout the supply chain, leaving smallholders at a loss in their efforts to produce sustainably.
Additionally, farmers struggle to invest in practices that support resilience in the face of climate change. Smallholder farmers in Africa are reliant on precarious incomes that are subject to volatile prices and extreme weather conditions exacerbated by climate change.
Mr Michael Opong, an oil palm farmer in the Eastern region said, “Oil palm production in our communities faces serious challenges.”
He said most farmers lacked access to proper tools, equipment, and infrastructure, which leads to low yields and poor processing capacity.
He said even with training; our incomes are too low to invest in improvements. This keeps productivity stagnant and prevents the sector from growing.
“We need consistent, targeted support to break through these barriers. With the right help, we can grow stronger and contribute meaningfully to the global palm oil market,” he added
He said the consistent underinvestment and lack of equitable value distribution were a threat to the entire sector and without access to better financing, technical assistance, and sustainable farming incentives, small farmers often resort to short-term survival strategies that can contribute to environmental degradation.
Additionally, land tenure insecurity continues to create challenges, limiting smallholders’ ability to invest in long-term sustainability and discouraging compliance with stricter environmental regulations.
The 2025 Palm Oil Barometer advocated a transition from current sourcing practices to a “Procurement for Prosperity” approach.
This means moving beyond sustainability certifications to ensure that palm oil procurement has a positive impact on suppliers, particularly independent smallholders, centered on fairer trading practices and genuine partnership.
The report outlined four core principles for Procurement for Prosperity: companies integrate procurement practices that recognize independent smallholders in their overall strategy and decision-making processes and fair pricing and payment terms must recognize and reward sustainable practices.
This includes understanding farmers’ living income gaps and working to close them.
Others are partnerships and collaboration across the supply chain that incorporate farmers’ perspectives and include them in decision-making processes, including the development of pricing mechanisms and downstream companies need to support suppliers by investing in organizational strengthening, technical capabilities, and access to finance.
Madam Marieke Leegwater, Senior Policy Advisor, Solidaridad Europe, said, “Simply demanding sustainable production is insufficient.”
She said companies needed to commit to an inclusive value chain that recognized and integrated independent smallholder farmer perspectives and voices and enabled sustainable production by paying fair prices that make a living income possible.
“As new regulations, like the EUDR, come into effect, we need a balanced approach that addresses deforestation by large-scale plantations, while ensuring human rights and smallholder inclusion to create a stable supply chain with reduced risk,” she said.
The Palm Oil Barometer 2025 provides concrete recommendations for value chain actors, multi-stakeholder initiatives, public policymakers, and the financial sector as they work to advance smallholder inclusivity and create a more resilient palm oil industry.
Every actor has a role to play in ensuring fair value distribution and supporting the prosperity of independent smallholders who are critical to the sector’s future. Ghana News Agency
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SMO Offers 230 Million Shares for Thai IPO to Enhance Production Capacities
Smothong Group Public Company Limited (SMO) strategic objectives encompass expanding its factory, optimizing production processes, and solidifying its position as a leading player in the Thai “Crude Palm Oil” market. The company’s vision extends to both domestic and international sales channels.
Mr. Somsak Sirichainarumitr Chief Executive Officer of Asset Pro Management Co., Ltd. (APM), a financial advisor to SMO, has disclosed that APM has submitted a statement of securities offering and drafted the initial prospectus to the SET. The IPO offers ordinary shares for the first time to the general public, with a par value of 1.00 baht per share. This offering represents 25.17% of the total number of ordinary shares sold by the company after the initial offering. SMO Group’s shares will be listed on the SET.
Read More: https://www.kaohooninternational.com/markets/557264
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Advanced alternatives for biofuels
As the global demand for renewable fuels rises, the biofuels industry is undergoing a transformation.
Traditional feedstocks, primarily refined vegetable oils, are increasingly being replaced by advanced alternatives that offer both economic and environmental advantages.
The shift from first generation (Gen1) biodiesel to more advanced biofuels, including hydrotreated vegetable oil (HVO) and sustainable aviation fuel (SAF), is accelerating, driven by technological advancements, regulatory incentives and bold institutional targets.
As a result, producers face difficult choices when choosing technologies and feedstocks for biofuel production, choices which are made easier with the technologies of BDI-BioEnergy International.
The evolution of feedstock in biofuels
Historically, biofuel production relied heavily on vegetable oils as a primary feedstock.
However, strict limitations on Gen1 biodiesel feedstocks have spurred the adoption of alternative sources such as used cooking oil (UCO), animal fats, palm oil mill effluent (POME), palm fatty acid distillate (PFAD) and greases.
These waste-based feedstocks offer cost advantages and contribute to waste reduction, aligning with circular economy principles.
With the advent of HVO and SAF, producers face new challenges as these production processes are highly sensitive to impurities, requiring rigorous pretreatment.
Contaminants such as free fatty acids (FFA), metals, phosphorus and unsaponifiable matter can hinder catalyst efficiency, making feedstock selection and purification crucial.
Addressing the demand for advanced feedstocks
With increasing demand for these renewable fuels, the industry began to develop creative solutions to secure sufficient volumes of advanced feedstocks.
Waste-based feedstocks, such as UCO, provide a cost advantage, but require robust processing technologies to overcome challenges related to contaminants and blending limitations.
This is where the technologies of BDI-BioEnergy International come into play, whose solutions enable biofuel producers to use a wide array of different waste-based feedstocks for biofuel production.
Feedstock considerations and challenges Read more at Biofuels News
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Feedstock potential in Southeast Asia
Southeast Asia accounts for nearly 8% of global jet fuel demand and thus plays a crucial role in contributing to the global sustainable aviation fuel (SAF) supply, which is essential for achieving global aviation decarbonisation goals. Influenced by international policy frameworks such as the International Civil Aviation Organisation’s Carbon Offsetting and Reduction Scheme for International Aviation (ICAO CORSIA), several ASEAN member states such as Singapore, Indonesia, Malaysia, Thailand and the Philippines have developed or are exploring SAF policies and production, leveraging the region’s abundant agricultural resources. SAF demand is growing.
Forty-three international airlines are committed to using 13 million tonnes of SAF by 2030 to meet their regulatory and voluntary targets, and the corporate sector is also showing interest in purchasing SAF to reduce business and cargo travel (Scope 3) emissions through book and claim approaches.
This growing demand is mostly linked to SAF’s sustainability performance, with a preference for fuels certified by schemes like the RSB.
Developing local feedstock and SAF production in Southeast Asia will stimulate the regional economy and have significant positive environmental and social impacts, provided sustainability is prioritised.
By adhering to robust and holistic standards like RSB’s sustainability framework, the region can establish a sustainable and resilient SAF supply chain that supports global efforts to reduce aviation emissions and fosters regional economic growth.
The report focuses on megatrends in sustainable feedstock availability in Southeast Asia, highlighting the need for further research and policy analysis. The study’s approach consisted of a review of available literature on feedstock availability and a thorough sustainability analysis that addressed the relevant social and environmental risks, such as food security, rural and social development, deforestation and water.
Ultimately, it provided a macro-overview of the region’s most available and sustainable feedstock for SAF production aimed to guide decision-making rather than detailed information at a granular level. Integrating a sustainability lens into this assessment of feedstock brings a unique view for future feedstock study and investment.
Using recommendations
This report serves as a strategic guide for various stakeholders involved in developing SAF in Southeast Asia.
Policymakers within ASEAN and at the national level can use the insights to shape robust policies and frameworks that adequately address sustainability risks, thus creating an enabling environment for SAF production and utilisation that meets international sustainability.
Investors can leverage the trends to make informed investment decisions in SAF infrastructure and projects.
Additionally, researchers and academics can identify gaps and opportunities for further studies to enhance the understanding and development of sustainable feedstocks.
The report provided actionable recommendations for collaboration, policymaking and investment, ensuring a comprehensive approach to advancing SAF in the region.
Feedstock availability and SAF potential
Southeast Asia boasts significant potential to produce SAF, due to its abundant bio-based feedstock resources, such as agricultural residues, sugars, municipal waste, and some energy crops.
The region’s estimated feedstock availability could translate to approximately 45.7 million tonnes of SAF annually by 2050 – or about 12% of the total SAF volume needed by the aviation sector to meet net-zero goals as estimated by the Air Transport Action Group (ATAG).
However, current and projected SAF infrastructure may not be sufficient to meet future demand, necessitating investments in processing capacity and effective collection systems.
Sustainability risks
The sustainability lens used in this assessment is guided by the RSB principles and criteria, which describe the best social, environmental, management, legal, and rights-based practices for sustainable production in a bio-based and circular economy. The RSB principles are grounded in a management and risk-oriented approach.
Together with the RSB’s online risk assessment tools and related guidance documents, this sustainability lens helps to identify and manage sustainability issues in specific contexts, thereby reducing risks for operators, brand owners and investors.
Country-level risks
• Deforestation is the most significant risk in the region, driven primarily by agricultural expansion, logging, and infrastructure development and may affect compliance with sustainability standards and market acceptance of SAF.
• Governance performance is essential for enforcing regulations and protecting human rights. Governance risks vary, with the region showing an average medium risk.
• Water stress is a concern due to water availability risks, which may affect feedstock cultivation, especially in Indonesia, Thailand and the Philippines.
• Human and labour rights abuses are at low to medium risk in most countries. Ensuring compliance with international labour standards is vital for sustainable feedstock supply chains.
• Food security is at low to moderate risk across the region.
• SAF projects adhering to strict sustainability criteria, such as the RSB principles and criteria, can contribute positively to rural and social development.
Recommendations for future research and development
1. Prioritise feedstocks: Focus on feedstocks with high-medium availability and low-medium risks, integrating sustainability analysis based on actual supply chains.
2. Expand feedstock research: Investigate alternative sources that may contribute to sustainable SAF production and were not covered in this study, due to a lack of data or because they were not in the original scope.
They include:
• Agricultural and industrial waste materials such as animal fat, non-standard coconut, palm oil mill effluent (POME) and palm fatty acid distillate (PFAD).
• Low Indirect Land Use Change (iLUC) risk crops like Pongamia, Jatropha and Miscanthus that are suitable for planting on degraded or unused land.
• Alternative feedstock and technologies such as recycled carbon, carbon capture, or green hydrogen.
3. Enhance infrastructure: Improve transportation and collection systems for SAF production.
4. Collaborate with regional organisations and NGOs: Engage with civil society, regional organisations, and the NGO community in policy and incentive development, to ensure broad stakeholder support.
Recommendations for a SAF enabling environment
1. Strengthen policy frameworks: Governments should play an active role in regional SAF discussions and strive to create an enabling environment that incentivises investments in feedstock utilisation and SAF production, while exploring opportunities for public-private partnerships.
2. Enhance regional collaboration: Promote knowledge-sharing and other collaborative initiatives that leverage each country’s strengths to accelerate SAF development.
3. Support industry initiatives: Governments should incentivise industry-led SAF production through subsidies and funding for the most sustainable feedstock and production pathways.
4. Leverage market mechanisms: Implement credible market mechanisms, such as book and claim, to bridge the cost gap between conventional jet fuel and SAF and accelerate global market access for SAF produced in the region. Biofuels News
Oil Palm: Solidaridad Makes Case For Fairer Value Chains To Protect West African Smallholder Farmers
Solidaridad West Africa, an international non governmental organisation has called for an overhaul of global palm oil procurement systems to ensure fairer value distribution for smallholder farmers, who produce the bulk of West Africa’s palm oil but continue to receive the smallest share of its benefits.
The Palm Oil Barometer 2025: tagged “Procurement for Prosperity”, released on Wednesday by Solidaridad West Africa in partnership with global and regional stakeholders and made available to newsmen in Uyo on Wednesday highlights deep-rooted inequities in the palm oil supply chain.
The report therefore urges governments, industry players, and certification platforms to adopt a more inclusive model that prioritizes smallholder livelihoods.
The report indicated that in countries like Nigeria and Ghana, smallholders are responsible for up to 80% of oil palm production but remain trapped in poverty due to limited access to markets, outdated tools, and insufficient infrastructure.
Côte d’Ivoire and Sierra Leone, according to the report, also face similar issues, with smallholders accounting for over 70% of national output yet struggling with low productivity and weak market links.
“Governments and industry, in collaboration with sustainability certification platforms, need to adopt a new business model, one that supports improved access to inputs and markets for independent smallholder farmers.” said Muthalir Ramasamy Chandran, Chairman of IRGA.AG and advisor to the Roundtable on Sustainable Palm Oil.
The international NGO maintained that while the palm oil sector increasingly demands sustainable production, farmers often lack the resources to invest in such practices. The report warns that climate-related challenges and price volatility are compounding the risks faced by smallholders.
The report warns that continued underinvestment in smallholders could jeopardize food security, escalate environmental degradation, and destabilize the regional palm oil industry. Adding that insecure land tenure and a lack of technical support are also preventing farmers from adopting long-term sustainability practices.
To further address challenges facing farmers, Solidaridad West Africa says it is is championing a new approach called “Procurement for Prosperity.” A model which outlines four core principles: inclusive policy frameworks, fair pricing mechanisms, equitable partnerships, and tailored programmes to strengthen smallholder capacity and access to finance.
“Simply demanding sustainable production is insufficient,. Companies need to commit to an inclusive value chain and enable sustainable production by paying fair prices that make a living income possible.” Marieke Leegwater, Senior Policy Advisor at Solidaridad Europe said IndependentNG
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2025 palm oil barometer calls for fairer palm oil value chains in West Africa
Accra, May 7, GNA – A new report, Palm Oil Barometer 2025: Procurement for Prosperity has called for a fundamental shift in global palm oil procurement practices.
The report emphasized the need for equitable value distribution to support smallholder farmers in West Africa.
It said oil palm remained a vital crop for food security, a source of income for millions, especially smallholder farmers across West Africa, and has the potential to help farming families emerge from poverty within a single generation.
The 2025 Palm Oil Barometer, developed by Solidaridad and co-signed by various smallholder representatives and experts, identified critical imbalances in the current market, where smallholders often receive a disproportionately small share of profits despite their significant contributions.
In Ghana, smallholders manage approximately 81 per cent of the nation’s oil palm area, yet many faced low yields and limited access to markets.
Similarly, in Nigeria, smallholders contribute to 80% of production but struggle with outdated processing methods and insufficient infrastructure.
The report said Côte d’Ivoire’s smallholders manage 73 per cent of oil palm areas, while in Sierra Leone, small-scale farmers account for about 70% of production, often relying on wild palm groves.
Meanwhile, West Africa consumes more palm oil than it produces, and many countries depend on imports.
“This imbalance, compounded by systemic barriers, limits smallholder farmers’ ability to increase incomes and contribute to national food security,” it said.
Mr Muthalir Ramasamy Chandran, Chairman at IRGA.AG and Advisor to Roundtable on Sustainable Palm Oil, said, “Governments and industry in collaboration with sustainability certification platforms, need to adopt a new business model for engagement, organizational development, and capacity building, that supports improved access to inputs and markets for independent smallholder farmers.”
The core finding of the 2025 Palm Oil Barometer was that value was inequitably distributed throughout the supply chain, leaving smallholders at a loss in their efforts to produce sustainably.
Additionally, farmers struggle to invest in practices that support resilience in the face of climate change. Smallholder farmers in Africa are reliant on precarious incomes that are subject to volatile prices and extreme weather conditions exacerbated by climate change.
Mr Michael Opong, an oil palm farmer in the Eastern region said, “Oil palm production in our communities faces serious challenges.”
He said most farmers lacked access to proper tools, equipment, and infrastructure, which leads to low yields and poor processing capacity.
He said even with training; our incomes are too low to invest in improvements. This keeps productivity stagnant and prevents the sector from growing.
“We need consistent, targeted support to break through these barriers. With the right help, we can grow stronger and contribute meaningfully to the global palm oil market,” he added
He said the consistent underinvestment and lack of equitable value distribution were a threat to the entire sector and without access to better financing, technical assistance, and sustainable farming incentives, small farmers often resort to short-term survival strategies that can contribute to environmental degradation.
Additionally, land tenure insecurity continues to create challenges, limiting smallholders’ ability to invest in long-term sustainability and discouraging compliance with stricter environmental regulations.
The 2025 Palm Oil Barometer advocated a transition from current sourcing practices to a “Procurement for Prosperity” approach.
This means moving beyond sustainability certifications to ensure that palm oil procurement has a positive impact on suppliers, particularly independent smallholders, centered on fairer trading practices and genuine partnership.
The report outlined four core principles for Procurement for Prosperity: companies integrate procurement practices that recognize independent smallholders in their overall strategy and decision-making processes and fair pricing and payment terms must recognize and reward sustainable practices.
This includes understanding farmers’ living income gaps and working to close them.
Others are partnerships and collaboration across the supply chain that incorporate farmers’ perspectives and include them in decision-making processes, including the development of pricing mechanisms and downstream companies need to support suppliers by investing in organizational strengthening, technical capabilities, and access to finance.
Madam Marieke Leegwater, Senior Policy Advisor, Solidaridad Europe, said, “Simply demanding sustainable production is insufficient.”
She said companies needed to commit to an inclusive value chain that recognized and integrated independent smallholder farmer perspectives and voices and enabled sustainable production by paying fair prices that make a living income possible.
“As new regulations, like the EUDR, come into effect, we need a balanced approach that addresses deforestation by large-scale plantations, while ensuring human rights and smallholder inclusion to create a stable supply chain with reduced risk,” she said.
The Palm Oil Barometer 2025 provides concrete recommendations for value chain actors, multi-stakeholder initiatives, public policymakers, and the financial sector as they work to advance smallholder inclusivity and create a more resilient palm oil industry.
Every actor has a role to play in ensuring fair value distribution and supporting the prosperity of independent smallholders who are critical to the sector’s future. Ghana News Agency
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SMO Offers 230 Million Shares for Thai IPO to Enhance Production Capacities
Smothong Group Public Company Limited (SMO) strategic objectives encompass expanding its factory, optimizing production processes, and solidifying its position as a leading player in the Thai “Crude Palm Oil” market. The company’s vision extends to both domestic and international sales channels.
Mr. Somsak Sirichainarumitr Chief Executive Officer of Asset Pro Management Co., Ltd. (APM), a financial advisor to SMO, has disclosed that APM has submitted a statement of securities offering and drafted the initial prospectus to the SET. The IPO offers ordinary shares for the first time to the general public, with a par value of 1.00 baht per share. This offering represents 25.17% of the total number of ordinary shares sold by the company after the initial offering. SMO Group’s shares will be listed on the SET.
Read More: https://www.kaohooninternational.com/markets/557264
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Advanced alternatives for biofuels
As the global demand for renewable fuels rises, the biofuels industry is undergoing a transformation.
Traditional feedstocks, primarily refined vegetable oils, are increasingly being replaced by advanced alternatives that offer both economic and environmental advantages.
The shift from first generation (Gen1) biodiesel to more advanced biofuels, including hydrotreated vegetable oil (HVO) and sustainable aviation fuel (SAF), is accelerating, driven by technological advancements, regulatory incentives and bold institutional targets.
As a result, producers face difficult choices when choosing technologies and feedstocks for biofuel production, choices which are made easier with the technologies of BDI-BioEnergy International.
The evolution of feedstock in biofuels
Historically, biofuel production relied heavily on vegetable oils as a primary feedstock.
However, strict limitations on Gen1 biodiesel feedstocks have spurred the adoption of alternative sources such as used cooking oil (UCO), animal fats, palm oil mill effluent (POME), palm fatty acid distillate (PFAD) and greases.
These waste-based feedstocks offer cost advantages and contribute to waste reduction, aligning with circular economy principles.
With the advent of HVO and SAF, producers face new challenges as these production processes are highly sensitive to impurities, requiring rigorous pretreatment.
Contaminants such as free fatty acids (FFA), metals, phosphorus and unsaponifiable matter can hinder catalyst efficiency, making feedstock selection and purification crucial.
Addressing the demand for advanced feedstocks
With increasing demand for these renewable fuels, the industry began to develop creative solutions to secure sufficient volumes of advanced feedstocks.
Waste-based feedstocks, such as UCO, provide a cost advantage, but require robust processing technologies to overcome challenges related to contaminants and blending limitations.
This is where the technologies of BDI-BioEnergy International come into play, whose solutions enable biofuel producers to use a wide array of different waste-based feedstocks for biofuel production.
Feedstock considerations and challenges Read more at Biofuels News
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Feedstock potential in Southeast Asia
Southeast Asia accounts for nearly 8% of global jet fuel demand and thus plays a crucial role in contributing to the global sustainable aviation fuel (SAF) supply, which is essential for achieving global aviation decarbonisation goals. Influenced by international policy frameworks such as the International Civil Aviation Organisation’s Carbon Offsetting and Reduction Scheme for International Aviation (ICAO CORSIA), several ASEAN member states such as Singapore, Indonesia, Malaysia, Thailand and the Philippines have developed or are exploring SAF policies and production, leveraging the region’s abundant agricultural resources. SAF demand is growing.
Forty-three international airlines are committed to using 13 million tonnes of SAF by 2030 to meet their regulatory and voluntary targets, and the corporate sector is also showing interest in purchasing SAF to reduce business and cargo travel (Scope 3) emissions through book and claim approaches.
This growing demand is mostly linked to SAF’s sustainability performance, with a preference for fuels certified by schemes like the RSB.
Developing local feedstock and SAF production in Southeast Asia will stimulate the regional economy and have significant positive environmental and social impacts, provided sustainability is prioritised.
By adhering to robust and holistic standards like RSB’s sustainability framework, the region can establish a sustainable and resilient SAF supply chain that supports global efforts to reduce aviation emissions and fosters regional economic growth.
The report focuses on megatrends in sustainable feedstock availability in Southeast Asia, highlighting the need for further research and policy analysis. The study’s approach consisted of a review of available literature on feedstock availability and a thorough sustainability analysis that addressed the relevant social and environmental risks, such as food security, rural and social development, deforestation and water.
Ultimately, it provided a macro-overview of the region’s most available and sustainable feedstock for SAF production aimed to guide decision-making rather than detailed information at a granular level. Integrating a sustainability lens into this assessment of feedstock brings a unique view for future feedstock study and investment.
Using recommendations
This report serves as a strategic guide for various stakeholders involved in developing SAF in Southeast Asia.
Policymakers within ASEAN and at the national level can use the insights to shape robust policies and frameworks that adequately address sustainability risks, thus creating an enabling environment for SAF production and utilisation that meets international sustainability.
Investors can leverage the trends to make informed investment decisions in SAF infrastructure and projects.
Additionally, researchers and academics can identify gaps and opportunities for further studies to enhance the understanding and development of sustainable feedstocks.
The report provided actionable recommendations for collaboration, policymaking and investment, ensuring a comprehensive approach to advancing SAF in the region.
Feedstock availability and SAF potential
Southeast Asia boasts significant potential to produce SAF, due to its abundant bio-based feedstock resources, such as agricultural residues, sugars, municipal waste, and some energy crops.
The region’s estimated feedstock availability could translate to approximately 45.7 million tonnes of SAF annually by 2050 – or about 12% of the total SAF volume needed by the aviation sector to meet net-zero goals as estimated by the Air Transport Action Group (ATAG).
However, current and projected SAF infrastructure may not be sufficient to meet future demand, necessitating investments in processing capacity and effective collection systems.
Sustainability risks
The sustainability lens used in this assessment is guided by the RSB principles and criteria, which describe the best social, environmental, management, legal, and rights-based practices for sustainable production in a bio-based and circular economy. The RSB principles are grounded in a management and risk-oriented approach.
Together with the RSB’s online risk assessment tools and related guidance documents, this sustainability lens helps to identify and manage sustainability issues in specific contexts, thereby reducing risks for operators, brand owners and investors.
Country-level risks
• Deforestation is the most significant risk in the region, driven primarily by agricultural expansion, logging, and infrastructure development and may affect compliance with sustainability standards and market acceptance of SAF.
• Governance performance is essential for enforcing regulations and protecting human rights. Governance risks vary, with the region showing an average medium risk.
• Water stress is a concern due to water availability risks, which may affect feedstock cultivation, especially in Indonesia, Thailand and the Philippines.
• Human and labour rights abuses are at low to medium risk in most countries. Ensuring compliance with international labour standards is vital for sustainable feedstock supply chains.
• Food security is at low to moderate risk across the region.
• SAF projects adhering to strict sustainability criteria, such as the RSB principles and criteria, can contribute positively to rural and social development.
Recommendations for future research and development
1. Prioritise feedstocks: Focus on feedstocks with high-medium availability and low-medium risks, integrating sustainability analysis based on actual supply chains.
2. Expand feedstock research: Investigate alternative sources that may contribute to sustainable SAF production and were not covered in this study, due to a lack of data or because they were not in the original scope.
They include:
• Agricultural and industrial waste materials such as animal fat, non-standard coconut, palm oil mill effluent (POME) and palm fatty acid distillate (PFAD).
• Low Indirect Land Use Change (iLUC) risk crops like Pongamia, Jatropha and Miscanthus that are suitable for planting on degraded or unused land.
• Alternative feedstock and technologies such as recycled carbon, carbon capture, or green hydrogen.
3. Enhance infrastructure: Improve transportation and collection systems for SAF production.
4. Collaborate with regional organisations and NGOs: Engage with civil society, regional organisations, and the NGO community in policy and incentive development, to ensure broad stakeholder support.
Recommendations for a SAF enabling environment
1. Strengthen policy frameworks: Governments should play an active role in regional SAF discussions and strive to create an enabling environment that incentivises investments in feedstock utilisation and SAF production, while exploring opportunities for public-private partnerships.
2. Enhance regional collaboration: Promote knowledge-sharing and other collaborative initiatives that leverage each country’s strengths to accelerate SAF development.
3. Support industry initiatives: Governments should incentivise industry-led SAF production through subsidies and funding for the most sustainable feedstock and production pathways.
4. Leverage market mechanisms: Implement credible market mechanisms, such as book and claim, to bridge the cost gap between conventional jet fuel and SAF and accelerate global market access for SAF produced in the region. Biofuels News
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May 07, 2025
Solidaridad wants fair pricing for suppliers to palm oil companies
KUALA LUMPUR (May 7): The development of palm oil procurement policies and the adoption of fair trading practices are among the key recommendations made by international civil society organisation Solidaridad to promote a more inclusive and sustainable palm oil supply chain.
According to Solidaridad, most palm oil companies fail to pay prices that enable suppliers to produce sustainably, with fair pricing rarely incorporated into sustainable procurement strategies.
While buyers often stress compliance with "No Deforestation, No Peat, No Exploitation" (NDPE) standards during negotiations, smallholder inclusion and incentives for sustainable practices are frequently overlooked in procurement decisions, it said in its 2025 Palm Oil Barometer Report titled "Procurement for Prosperity".
To address this imbalance, one proposed solution is to implement a minimum premium price for sustainable palm oil production through cost-plus-margin pricing. This approach ensures producers are compensated based on the actual costs of sustainable production, including a fair profit margin.
“It is known, more or less, what the additional costs are for producing in accordance with the RSPO (Roundtable on Sustainable Palm Oil), for example. Instead of fully relying on an open market, setting a minimum price can ensure that the cost for sustainable production is guaranteed for growers and smallholders. This can be done via cash payments or credits,” said Solidaridad.
“One representative we spoke to from a major fast-moving consumer goods company said: We pay the RSPO premium price on top of the material price. It is not something we are going to squeeze; we add it on top. The RSPO premium is independent from our other sourcing decisions.”
In addition, Solidaridad highlighted the potential of rewarding oil palm farmers for carbon sequestration, which could offer an additional source of income. This approach would enable farmers to participate in international carbon markets by selling carbon removal units, thereby incentivising climate-friendly agricultural practices.
Similar initiatives are already being explored in the coffee and cocoa sectors, it said.
Solidaridad also proposed the use of a key performance indicator to track the percentage of smallholder farmers in the value chain earning a living income.
The organisation encouraged companies to explore mechanisms for paying living income reference prices and to set clear, measurable targets aimed at closing the income gap for smallholders.
“We recommend researching the specifics of living incomes in the regions where purchasing takes place, ensuring the paying of a local living income.
“Whether you are a retailer, brand or trader, you should know how to calculate the living income gap for farmers in your supply chain. You should commit to a time-bound, gender-sensitive goal to close this gap, including regular assessment of the payment of a living income,” said Solidaridad.
Solidaridad recommended collaboration with initiatives such as the National Initiatives for Sustainable and Climate-Smart Oil Palm Smallholders (NISCOPS II) and its partner, the Sustainable Trade Initiative (IDH). The IDH is currently leading efforts to define living income benchmarks for the palm oil sector and developing tools to help buyers implement these standards.
“Our NISCOPS II partner IDH has taken on the task of further researching and better defining living income in the palm oil value chain and creating tools to support buyers. The outcome of this work is openly available for companies to adopt on a voluntary basis,” it said.
Solidaridad, a civil society organisation advocating for sustainable and inclusive value chains, said it supports smallholders in adopting more sustainable oil palm cultivation and trade practices. The Edge
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2025 Palm Oil Barometer calls for fairer palm oil value chains in West Africa
A new report, Palm Oil Barometer 2025: Procurement for Prosperity, has called for a fundamental shift in global palm oil procurement practices. The report emphasizes the need for equitable value distribution to support smallholder farmers in West Africa.
Oil palm remains a vital crop for food security, a source of income for millions, especially smallholder farmers across West Africa, and has the potential to help farming families emerge from poverty within a single generation. The 2025 Palm Oil Barometer, developed by Solidaridad and co-signed by various smallholder representatives and experts, identifies critical imbalances in the current market, where smallholders often receive a disproportionately small share of profits despite their significant contributions.
In Ghana, smallholders manage approximately 81% of the nation's oil palm area, yet many face low yields and limited access to markets. Similarly, in Nigeria, smallholders contribute to 80% of production but struggle with outdated processing methods and insufficient infrastructure. Côte d’Ivoire's smallholders manage 73% of oil palm areas, while in Sierra Leone, small-scale farmers account for about 70% of production, often relying on wild palm groves.
Meanwhile, West Africa consumes more palm oil than it produces, and many countries depend on imports. This imbalance, compounded by systemic barriers, limits smallholder farmers' ability to increase incomes and contribute to national food security.
“Governments and industry in collaboration with sustainability certification platforms, need to adopt a new business model for engagement, organizational development, and capacity building, that supports improved access to inputs and markets for independent smallholder farmers,” says Muthalir Ramasamy Chandran, Chairman at IRGA.AG and Advisor to Roundtable on Sustainable Palm Oil.
Is Sustainable Production Worth the Effort?
The core finding of the 2025 Palm Oil Barometer is that value is inequitably distributed throughout the supply chain, which often leaves smallholders at a loss in their efforts to produce sustainably. Additionally, farmers struggle to invest in practices that support resilience in the face of climate change. Smallholder farmers in Africa, in particular, are reliant on precarious incomes that are subject to volatile prices and extreme weather conditions exacerbated by climate change.
The consistent underinvestment and lack of equitable value distribution are a threat to the entire sector. Without access to better financing, technical assistance, and sustainable farming incentives, small farmers often resort to short-term survival strategies that can contribute to environmental degradation. Additionally, land tenure insecurity continues to create challenges, limiting smallholders’ ability to invest in long-term sustainability and discouraging compliance with stricter environmental regulations.
Shifting the Focus to Procurement for Prosperity
The 2025 Palm Oil Barometer advocates for a transition from current sourcing practices to a "Procurement for Prosperity" approach. This means moving beyond sustainability certifications to ensure that palm oil procurement has a positive impact on suppliers, particularly independent smallholders, centered on fairer trading practices and genuine partnership.
The report outlines four core principles for Procurement for Prosperity:
Policy: Companies integrate procurement practices that recognize independent smallholders in their overall strategy and decision-making processes.
Pricing: Fair pricing and payment terms must recognize and reward sustainable practices. This includes understanding farmers’ living income gaps and working to close them.
Partnerships: Partnerships and collaboration across the supply chain need to incorporate farmers' perspectives and include them in decision-making processes, including the development of pricing mechanisms.
Programmes: Downstream companies need to support suppliers by investing in organizational strengthening, technical capabilities, and access to finance.
“Simply demanding sustainable production is insufficient. Companies need to commit to an inclusive value chain that recognizes and integrates independent smallholder farmer perspectives and voices, and enables sustainable production by paying fair prices that make a living income possible,” said Marieke Leegwater, Senior Policy Advisor, Solidaridad Europe. My Joy Online
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Support smallholders to ensure that EUDR & CSDDD protect forests
The EU says it supports smallholders, yet the EUDR and CSDDD, including recent proposed changes, tell a different story. To tackle deforestation and promote corporate sustainability, the EU must support small oil palm farmers, reports the Palm Oil Barometer 2025.
Undermining Forest Protection through Deregulation
While the European Commission has listened very well to the corporate calls to cut red tape in the EUDR and CSDDD, the call for smallholder support has been largely ignored. In the preamble to the EUDR, the EC recognizes the importance of responsible procurement to support smallholders: “When sourcing products, reasonable efforts should be undertaken to ensure that a fair price is paid to producers, in particular smallholders, so as to enable a living income and effectively address poverty as a root cause of deforestation.”
However, in practice we see that the EUDR has strengthened the tendency of importers to impose top-down sustainability requirements on growers, both large and small. Smallholders are often ill-equipped to comply. As one anonymous palm oil processor stated in an interview for the Palm Oil Barometer: “Buyers constantly stress that materials must be delivered in accordance with NDPE-requirements, but smallholder inclusion and reward for sustainable performance are not deal-breakers for them.”
To truly uphold the UN’s guiding principle of “leaving no one behind” and to prevent further marginalization of smallholders from the EU, the Commission and Member States must ensure that implementation of the EUDR actively promotes smallholder inclusion. This requires targeted support, particularly in addressing traceability—an area where smallholders face structural barriers.
Inequitable Value Distribution Undermines Resilience
Palm oil is a staple food, an economic factor and a political issue. Millions of smallholders in Asia, Africa, and Latin America depend on its cultivation. Yet under the current trajectory of the EUDR and CSDDD, they risk exclusion from EU markets—because current systems fail to recognize their realities.
Regulations from consumer countries profoundly influence the conditions under which production occurs. Although sustainably produced palm oil can significantly contribute to resilient rural livelihoods, smallholders remain in a vulnerable position. The 2025 Palm Oil Barometer highlights the core issue: an inequitable distribution of value across the supply chain. Smallholders receive only a fraction of the profits. Without living income, access to finance, technical support, or secure land rights, many smallholders cannot afford to invest in sustainable practices, leaving them exposed to climate shocks and price volatility. This forces farmers to resort to unsustainable practices to maintain their livelihoods, which results in environmental degradation.
The situation is especially dire for independent smallholders, whose supply chains are often informal and poorly documented. This lack of traceability poses a critical risk: under the EUDR, they may be excluded not because they are unsustainable, but because they are invisible to regulatory systems.
Deregulation Threatens Livelihoods
The CSDDD, in its original form, could have counterbalanced these risks—by embedding human rights, fair treatment of suppliers, and environmental stewardship into corporate due diligence. However, the Commission’s latest proposal significantly weakens this potential. Together with 40 other CSOs, Solidaridad warned that the revised CSDDD deprioritizes key safeguards and proposes a series of deregulation measures that would hurt the interests of millions of smallholders.
For example, the EC proposes in its Omnibus package to remove the obligation for responsible termination of a business relationship as a last resort (Article 4(5) and (6)). Smallholders are oftentimes considered high-risk suppliers by companies in scope, and therefore over-exposed to cut-and-run practices. If the CSDDD does not require disengagement to be responsible and used as a last resort, companies may cut ties/terminate their business relationships prematurely, threatening smallholders’ livelihoods and market access. Further, this article is coupled with the proposal in Article 4(7) to remove the obligation for stakeholder consultation during disengagement. This would make it impossible for smallholders to voice their concerns about the adverse consequences of termination or even suspension of contracts with their buyers.
Smallholders Deserve a Seat at the Table
The EUDR and CSDDD are the crowning achievement of the previous European Commission’s efforts at creating a more sustainable world. It’s a first step towards an empowered due diligence framework that could transform the way we do business. Implemented well, it can be used to support our partners across the world in their own efforts to curb environmental destruction.
The Team Europe Initiative on Deforestation-free Value Chains is an important first step from EU Member States like the Netherlands and Germany. But it is insufficient for truly living up to EUDR article 30 on Cooperation with third countries and the promise to protect and restore the world's forests.
When it comes to palm oil, we can only reiterate our recommendations from years ago. EU institutions and Member States must take immediate action on the provisions of Article 30 of the Regulation:
Support national sustainability schemes, such as ISPO and MSPO, including investments in training, land title registration, and landscape-level governance to strengthen smallholder inclusion and traceability.
Provide support for modern and easy-to-use technology and end-to-end traceability systems to help smallholders map plots and determine geolocation, and meet EUDR compliance requirements.
Identify practical solutions on how to share traceability data along the supply chain that are consistent with personal data privacy protection legislation in certain producing countries.
Develop innovative financial mechanisms that compensate local communities for conserving forests and choosing not to convert land to oil palm—while fully respecting indigenous and customary land rights.
Support livelihood transitions by funding alternatives for smallholders in high deforestation-risk areas who seek to move away from palm oil cultivation.
Prevent smallholder exclusion by establishing EU-level mechanisms to safeguard sourcing from independent smallholders—including preferential sourcing models and structural support to help them remain in regulated supply chains.
With the EU Deforestation Regulation set to take effect next year, additional measures are urgently needed to uphold human rights and strengthen the position of smallholder farmers. This is essential for building stable, sustainable, and resilient global supply chains.
The Palm Oil Barometer 2025 outlines concrete recommendations for companies, policymakers, multistakeholder initiatives, and the financial sector. It offers a clear path forward to strengthen smallholder inclusion and build a more resilient palm oil industry. Because only when all actors take shared responsibility, we can meaningfully improve smallholder livelihoods and protect the world’s remaining forests.
Michel Riemersma is Policy Advisor at Solidaridad. Euractiv
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Solidaridad's Palm Oil Barometer 2025: Procurement for Prosperity
Palm oil is a highly productive crop that is vital to food security, and a source of income for millions, particularly smallholders in Asia, Africa, and Latin America. Though sustainably-produced palm oil can be a vital contributor to resilient livelihoods, the current approach often leaves smallholder farmers in a precarious situation.
The 2025 Palm Oil Barometer: Procurement for Prosperity, makes the call for a fundamental shift in how palm oil procurement is conducted. The core finding is that value is inequitably distributed throughout the supply chain, leaving smallholders at a loss in their efforts to produce sustainably. They also struggle to invest in practices that support resilience in the face of climate change. Smallholder farmers in Asia and Africa, in particular, are reliant on precarious incomes that are subject to volatile prices and extreme weather conditions exacerbated by climate change.
The consistent underinvestment and lack of equitable value distribution is a threat to the entire sector. Without access to better financing, technical assistance, and sustainable farming incentives, small farmers often resort to short-term survival strategies that can contribute to environmental degradation. Additionally, land tenure insecurity continues to create challenges, limiting smallholders’ ability to invest in long-term sustainability and discouraging compliance with stricter environmental regulations.
Shifting the focus to Procurement for Prosperity. Read more at Solidaridad
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Hybrid mapping method key to EUDR cocoa compliance, study finds
A coalition of organizations has assessed how locally produced maps stack up against global open-access data sets to evaluate deforestation in the context of cocoa production. The assessment will be useful for cocoa producers as they work toward compliance with the EU anti-deforestation regulation (EUDR), set to take effect at the end of the year, the organizations note in a recent report.
The EUDR’s goal is to prevent tropical deforestation by requiring that companies prove their products, including palm oil, timber, soy, beef and cocoa, didn’t come from land deforested after December 2020. Initially set to go into effect on Dec. 30, 2024, the rule’s implementation was delayed by a year partly because commodity producers struggle to accurately prove their products meet EUDR standards. Without accurate data and maps, producers could be unfairly locked out of European markets, the researchers note.
EUDR verification has been especially challenging for smallholder producers, Louis Reymondin, a senior scientist with the nonprofits Alliance of Biodiversity International (ABI) and the Center for Tropical Agriculture (CIAT), told Mongabay by email.
To tackle this issue, researchers from ABI and CIAT teamed up with the World Cocoa Foundation, a U.S.-based industry group with members including Nestlé and Mars. They tested data sets from global open-access platforms like Global Forest Watch and Satelligence alongside locally produced maps to see how well each could distinguish between cacao plantations, forests and other natural areas in the cacao-growing regions of Ghana and Côte d’Ivoire. Mongabay
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Transforming Liberia: The Nation’s First Palm Oil Refinery
A new chapter of economic empowerment, sustainability, and national pride
In Liberia’s fertile lands, where palm seeds are sown with dedication and nurtured to fruition, a transformative milestone is set to redefine the nation’s economic landscape. For many decades, the story of Liberia’s palm oil industry has been one of unrealized potential.
The country has exported crude palm oil in its raw form, forfeiting the opportunity to process and refine it locally, and thus losing out on the economic value that comes with industrialization. That narrative is now shifting dramatically.
Mano Manufacturing Company is spearheading this paradigm change, proudly announcing the establishment of Liberia’s first-ever palm oil refinery.
This is not just a step forward for the organization but a leap of progress for the country itself. Scheduled for commissioning in November 2025, the refinery promises to be a beacon of industrial self-sufficiency and a symbol of value creation on Liberian soil.
A Vision of Transformation
The new refinery will take crude palm oil — cultivated by Liberian farmers and produced locally — and transform it into refined, bleached, and deodorized (RBD) palm oil as well as its derivatives, olein and stearin.
These high-quality products will meet stringent international standards, enabling Liberia to compete in global markets while also catering to domestic needs.
However, this development represents far more than an industrial achievement. It is a strategic investment in Liberia’s future, one rooted in the principles of economic empowerment, human capital development, community upliftment, and environmental stewardship.
The ripple effects of this project will be felt far and wide, touching the lives of individuals, families, and communities across the nation.
Economic Empowerment and Value Retention
Liberia’s inaugural palm oil refinery will be a game-changer for the national economy. By processing palm oil locally, the country will retain more value within its borders, reducing its reliance on imports of edible oils and creating new opportunities for economic growth. Hundreds of jobs — both direct and indirect — will be generated, spanning roles in manufacturing, logistics, sales, and more.
This kind of job creation does more than provide financial stability to individuals; it strengthens entire communities and fosters a more resilient economy. The New Dawn
Solidaridad wants fair pricing for suppliers to palm oil companies
KUALA LUMPUR (May 7): The development of palm oil procurement policies and the adoption of fair trading practices are among the key recommendations made by international civil society organisation Solidaridad to promote a more inclusive and sustainable palm oil supply chain.
According to Solidaridad, most palm oil companies fail to pay prices that enable suppliers to produce sustainably, with fair pricing rarely incorporated into sustainable procurement strategies.
While buyers often stress compliance with "No Deforestation, No Peat, No Exploitation" (NDPE) standards during negotiations, smallholder inclusion and incentives for sustainable practices are frequently overlooked in procurement decisions, it said in its 2025 Palm Oil Barometer Report titled "Procurement for Prosperity".
To address this imbalance, one proposed solution is to implement a minimum premium price for sustainable palm oil production through cost-plus-margin pricing. This approach ensures producers are compensated based on the actual costs of sustainable production, including a fair profit margin.
“It is known, more or less, what the additional costs are for producing in accordance with the RSPO (Roundtable on Sustainable Palm Oil), for example. Instead of fully relying on an open market, setting a minimum price can ensure that the cost for sustainable production is guaranteed for growers and smallholders. This can be done via cash payments or credits,” said Solidaridad.
“One representative we spoke to from a major fast-moving consumer goods company said: We pay the RSPO premium price on top of the material price. It is not something we are going to squeeze; we add it on top. The RSPO premium is independent from our other sourcing decisions.”
In addition, Solidaridad highlighted the potential of rewarding oil palm farmers for carbon sequestration, which could offer an additional source of income. This approach would enable farmers to participate in international carbon markets by selling carbon removal units, thereby incentivising climate-friendly agricultural practices.
Similar initiatives are already being explored in the coffee and cocoa sectors, it said.
Solidaridad also proposed the use of a key performance indicator to track the percentage of smallholder farmers in the value chain earning a living income.
The organisation encouraged companies to explore mechanisms for paying living income reference prices and to set clear, measurable targets aimed at closing the income gap for smallholders.
“We recommend researching the specifics of living incomes in the regions where purchasing takes place, ensuring the paying of a local living income.
“Whether you are a retailer, brand or trader, you should know how to calculate the living income gap for farmers in your supply chain. You should commit to a time-bound, gender-sensitive goal to close this gap, including regular assessment of the payment of a living income,” said Solidaridad.
Solidaridad recommended collaboration with initiatives such as the National Initiatives for Sustainable and Climate-Smart Oil Palm Smallholders (NISCOPS II) and its partner, the Sustainable Trade Initiative (IDH). The IDH is currently leading efforts to define living income benchmarks for the palm oil sector and developing tools to help buyers implement these standards.
“Our NISCOPS II partner IDH has taken on the task of further researching and better defining living income in the palm oil value chain and creating tools to support buyers. The outcome of this work is openly available for companies to adopt on a voluntary basis,” it said.
Solidaridad, a civil society organisation advocating for sustainable and inclusive value chains, said it supports smallholders in adopting more sustainable oil palm cultivation and trade practices. The Edge
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2025 Palm Oil Barometer calls for fairer palm oil value chains in West Africa
A new report, Palm Oil Barometer 2025: Procurement for Prosperity, has called for a fundamental shift in global palm oil procurement practices. The report emphasizes the need for equitable value distribution to support smallholder farmers in West Africa.
Oil palm remains a vital crop for food security, a source of income for millions, especially smallholder farmers across West Africa, and has the potential to help farming families emerge from poverty within a single generation. The 2025 Palm Oil Barometer, developed by Solidaridad and co-signed by various smallholder representatives and experts, identifies critical imbalances in the current market, where smallholders often receive a disproportionately small share of profits despite their significant contributions.
In Ghana, smallholders manage approximately 81% of the nation's oil palm area, yet many face low yields and limited access to markets. Similarly, in Nigeria, smallholders contribute to 80% of production but struggle with outdated processing methods and insufficient infrastructure. Côte d’Ivoire's smallholders manage 73% of oil palm areas, while in Sierra Leone, small-scale farmers account for about 70% of production, often relying on wild palm groves.
Meanwhile, West Africa consumes more palm oil than it produces, and many countries depend on imports. This imbalance, compounded by systemic barriers, limits smallholder farmers' ability to increase incomes and contribute to national food security.
“Governments and industry in collaboration with sustainability certification platforms, need to adopt a new business model for engagement, organizational development, and capacity building, that supports improved access to inputs and markets for independent smallholder farmers,” says Muthalir Ramasamy Chandran, Chairman at IRGA.AG and Advisor to Roundtable on Sustainable Palm Oil.
Is Sustainable Production Worth the Effort?
The core finding of the 2025 Palm Oil Barometer is that value is inequitably distributed throughout the supply chain, which often leaves smallholders at a loss in their efforts to produce sustainably. Additionally, farmers struggle to invest in practices that support resilience in the face of climate change. Smallholder farmers in Africa, in particular, are reliant on precarious incomes that are subject to volatile prices and extreme weather conditions exacerbated by climate change.
The consistent underinvestment and lack of equitable value distribution are a threat to the entire sector. Without access to better financing, technical assistance, and sustainable farming incentives, small farmers often resort to short-term survival strategies that can contribute to environmental degradation. Additionally, land tenure insecurity continues to create challenges, limiting smallholders’ ability to invest in long-term sustainability and discouraging compliance with stricter environmental regulations.
Shifting the Focus to Procurement for Prosperity
The 2025 Palm Oil Barometer advocates for a transition from current sourcing practices to a "Procurement for Prosperity" approach. This means moving beyond sustainability certifications to ensure that palm oil procurement has a positive impact on suppliers, particularly independent smallholders, centered on fairer trading practices and genuine partnership.
The report outlines four core principles for Procurement for Prosperity:
Policy: Companies integrate procurement practices that recognize independent smallholders in their overall strategy and decision-making processes.
Pricing: Fair pricing and payment terms must recognize and reward sustainable practices. This includes understanding farmers’ living income gaps and working to close them.
Partnerships: Partnerships and collaboration across the supply chain need to incorporate farmers' perspectives and include them in decision-making processes, including the development of pricing mechanisms.
Programmes: Downstream companies need to support suppliers by investing in organizational strengthening, technical capabilities, and access to finance.
“Simply demanding sustainable production is insufficient. Companies need to commit to an inclusive value chain that recognizes and integrates independent smallholder farmer perspectives and voices, and enables sustainable production by paying fair prices that make a living income possible,” said Marieke Leegwater, Senior Policy Advisor, Solidaridad Europe. My Joy Online
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Support smallholders to ensure that EUDR & CSDDD protect forests
The EU says it supports smallholders, yet the EUDR and CSDDD, including recent proposed changes, tell a different story. To tackle deforestation and promote corporate sustainability, the EU must support small oil palm farmers, reports the Palm Oil Barometer 2025.
Undermining Forest Protection through Deregulation
While the European Commission has listened very well to the corporate calls to cut red tape in the EUDR and CSDDD, the call for smallholder support has been largely ignored. In the preamble to the EUDR, the EC recognizes the importance of responsible procurement to support smallholders: “When sourcing products, reasonable efforts should be undertaken to ensure that a fair price is paid to producers, in particular smallholders, so as to enable a living income and effectively address poverty as a root cause of deforestation.”
However, in practice we see that the EUDR has strengthened the tendency of importers to impose top-down sustainability requirements on growers, both large and small. Smallholders are often ill-equipped to comply. As one anonymous palm oil processor stated in an interview for the Palm Oil Barometer: “Buyers constantly stress that materials must be delivered in accordance with NDPE-requirements, but smallholder inclusion and reward for sustainable performance are not deal-breakers for them.”
To truly uphold the UN’s guiding principle of “leaving no one behind” and to prevent further marginalization of smallholders from the EU, the Commission and Member States must ensure that implementation of the EUDR actively promotes smallholder inclusion. This requires targeted support, particularly in addressing traceability—an area where smallholders face structural barriers.
Inequitable Value Distribution Undermines Resilience
Palm oil is a staple food, an economic factor and a political issue. Millions of smallholders in Asia, Africa, and Latin America depend on its cultivation. Yet under the current trajectory of the EUDR and CSDDD, they risk exclusion from EU markets—because current systems fail to recognize their realities.
Regulations from consumer countries profoundly influence the conditions under which production occurs. Although sustainably produced palm oil can significantly contribute to resilient rural livelihoods, smallholders remain in a vulnerable position. The 2025 Palm Oil Barometer highlights the core issue: an inequitable distribution of value across the supply chain. Smallholders receive only a fraction of the profits. Without living income, access to finance, technical support, or secure land rights, many smallholders cannot afford to invest in sustainable practices, leaving them exposed to climate shocks and price volatility. This forces farmers to resort to unsustainable practices to maintain their livelihoods, which results in environmental degradation.
The situation is especially dire for independent smallholders, whose supply chains are often informal and poorly documented. This lack of traceability poses a critical risk: under the EUDR, they may be excluded not because they are unsustainable, but because they are invisible to regulatory systems.
Deregulation Threatens Livelihoods
The CSDDD, in its original form, could have counterbalanced these risks—by embedding human rights, fair treatment of suppliers, and environmental stewardship into corporate due diligence. However, the Commission’s latest proposal significantly weakens this potential. Together with 40 other CSOs, Solidaridad warned that the revised CSDDD deprioritizes key safeguards and proposes a series of deregulation measures that would hurt the interests of millions of smallholders.
For example, the EC proposes in its Omnibus package to remove the obligation for responsible termination of a business relationship as a last resort (Article 4(5) and (6)). Smallholders are oftentimes considered high-risk suppliers by companies in scope, and therefore over-exposed to cut-and-run practices. If the CSDDD does not require disengagement to be responsible and used as a last resort, companies may cut ties/terminate their business relationships prematurely, threatening smallholders’ livelihoods and market access. Further, this article is coupled with the proposal in Article 4(7) to remove the obligation for stakeholder consultation during disengagement. This would make it impossible for smallholders to voice their concerns about the adverse consequences of termination or even suspension of contracts with their buyers.
Smallholders Deserve a Seat at the Table
The EUDR and CSDDD are the crowning achievement of the previous European Commission’s efforts at creating a more sustainable world. It’s a first step towards an empowered due diligence framework that could transform the way we do business. Implemented well, it can be used to support our partners across the world in their own efforts to curb environmental destruction.
The Team Europe Initiative on Deforestation-free Value Chains is an important first step from EU Member States like the Netherlands and Germany. But it is insufficient for truly living up to EUDR article 30 on Cooperation with third countries and the promise to protect and restore the world's forests.
When it comes to palm oil, we can only reiterate our recommendations from years ago. EU institutions and Member States must take immediate action on the provisions of Article 30 of the Regulation:
Support national sustainability schemes, such as ISPO and MSPO, including investments in training, land title registration, and landscape-level governance to strengthen smallholder inclusion and traceability.
Provide support for modern and easy-to-use technology and end-to-end traceability systems to help smallholders map plots and determine geolocation, and meet EUDR compliance requirements.
Identify practical solutions on how to share traceability data along the supply chain that are consistent with personal data privacy protection legislation in certain producing countries.
Develop innovative financial mechanisms that compensate local communities for conserving forests and choosing not to convert land to oil palm—while fully respecting indigenous and customary land rights.
Support livelihood transitions by funding alternatives for smallholders in high deforestation-risk areas who seek to move away from palm oil cultivation.
Prevent smallholder exclusion by establishing EU-level mechanisms to safeguard sourcing from independent smallholders—including preferential sourcing models and structural support to help them remain in regulated supply chains.
With the EU Deforestation Regulation set to take effect next year, additional measures are urgently needed to uphold human rights and strengthen the position of smallholder farmers. This is essential for building stable, sustainable, and resilient global supply chains.
The Palm Oil Barometer 2025 outlines concrete recommendations for companies, policymakers, multistakeholder initiatives, and the financial sector. It offers a clear path forward to strengthen smallholder inclusion and build a more resilient palm oil industry. Because only when all actors take shared responsibility, we can meaningfully improve smallholder livelihoods and protect the world’s remaining forests.
Michel Riemersma is Policy Advisor at Solidaridad. Euractiv
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Solidaridad's Palm Oil Barometer 2025: Procurement for Prosperity
Palm oil is a highly productive crop that is vital to food security, and a source of income for millions, particularly smallholders in Asia, Africa, and Latin America. Though sustainably-produced palm oil can be a vital contributor to resilient livelihoods, the current approach often leaves smallholder farmers in a precarious situation.
The 2025 Palm Oil Barometer: Procurement for Prosperity, makes the call for a fundamental shift in how palm oil procurement is conducted. The core finding is that value is inequitably distributed throughout the supply chain, leaving smallholders at a loss in their efforts to produce sustainably. They also struggle to invest in practices that support resilience in the face of climate change. Smallholder farmers in Asia and Africa, in particular, are reliant on precarious incomes that are subject to volatile prices and extreme weather conditions exacerbated by climate change.
The consistent underinvestment and lack of equitable value distribution is a threat to the entire sector. Without access to better financing, technical assistance, and sustainable farming incentives, small farmers often resort to short-term survival strategies that can contribute to environmental degradation. Additionally, land tenure insecurity continues to create challenges, limiting smallholders’ ability to invest in long-term sustainability and discouraging compliance with stricter environmental regulations.
Shifting the focus to Procurement for Prosperity. Read more at Solidaridad
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Hybrid mapping method key to EUDR cocoa compliance, study finds
A coalition of organizations has assessed how locally produced maps stack up against global open-access data sets to evaluate deforestation in the context of cocoa production. The assessment will be useful for cocoa producers as they work toward compliance with the EU anti-deforestation regulation (EUDR), set to take effect at the end of the year, the organizations note in a recent report.
The EUDR’s goal is to prevent tropical deforestation by requiring that companies prove their products, including palm oil, timber, soy, beef and cocoa, didn’t come from land deforested after December 2020. Initially set to go into effect on Dec. 30, 2024, the rule’s implementation was delayed by a year partly because commodity producers struggle to accurately prove their products meet EUDR standards. Without accurate data and maps, producers could be unfairly locked out of European markets, the researchers note.
EUDR verification has been especially challenging for smallholder producers, Louis Reymondin, a senior scientist with the nonprofits Alliance of Biodiversity International (ABI) and the Center for Tropical Agriculture (CIAT), told Mongabay by email.
To tackle this issue, researchers from ABI and CIAT teamed up with the World Cocoa Foundation, a U.S.-based industry group with members including Nestlé and Mars. They tested data sets from global open-access platforms like Global Forest Watch and Satelligence alongside locally produced maps to see how well each could distinguish between cacao plantations, forests and other natural areas in the cacao-growing regions of Ghana and Côte d’Ivoire. Mongabay
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Transforming Liberia: The Nation’s First Palm Oil Refinery
A new chapter of economic empowerment, sustainability, and national pride
In Liberia’s fertile lands, where palm seeds are sown with dedication and nurtured to fruition, a transformative milestone is set to redefine the nation’s economic landscape. For many decades, the story of Liberia’s palm oil industry has been one of unrealized potential.
The country has exported crude palm oil in its raw form, forfeiting the opportunity to process and refine it locally, and thus losing out on the economic value that comes with industrialization. That narrative is now shifting dramatically.
Mano Manufacturing Company is spearheading this paradigm change, proudly announcing the establishment of Liberia’s first-ever palm oil refinery.
This is not just a step forward for the organization but a leap of progress for the country itself. Scheduled for commissioning in November 2025, the refinery promises to be a beacon of industrial self-sufficiency and a symbol of value creation on Liberian soil.
A Vision of Transformation
The new refinery will take crude palm oil — cultivated by Liberian farmers and produced locally — and transform it into refined, bleached, and deodorized (RBD) palm oil as well as its derivatives, olein and stearin.
These high-quality products will meet stringent international standards, enabling Liberia to compete in global markets while also catering to domestic needs.
However, this development represents far more than an industrial achievement. It is a strategic investment in Liberia’s future, one rooted in the principles of economic empowerment, human capital development, community upliftment, and environmental stewardship.
The ripple effects of this project will be felt far and wide, touching the lives of individuals, families, and communities across the nation.
Economic Empowerment and Value Retention
Liberia’s inaugural palm oil refinery will be a game-changer for the national economy. By processing palm oil locally, the country will retain more value within its borders, reducing its reliance on imports of edible oils and creating new opportunities for economic growth. Hundreds of jobs — both direct and indirect — will be generated, spanning roles in manufacturing, logistics, sales, and more.
This kind of job creation does more than provide financial stability to individuals; it strengthens entire communities and fosters a more resilient economy. The New Dawn
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May 06, 2025
The Art of Mastering EUDR Compliance by the Boston Consulting Group (BCG)
Analyst Insight: As the European Union Deforestation Regulation (EUDR) comes into force, companies must proactively ensure that their supply chains are deforestation-free. But compliance isn’t just a legal requirement — it’s a strategic opportunity to enhance transparency and foster sustainability.
Set to take effect in December, 2025, the EUDR is part of the EU’s sustainability regulation. Designed to combat deforestation, it mandates that businesses prove that key commodities — such as cattle, cocoa, palm oil, soy, rubber and timber — are sourced from land free of deforestation. Non-compliance poses serious financial and reputational risks, but forward-thinking companies can leverage compliance efforts to drive innovation and supply chain resilience.
Mastering EUDR compliance isn’t just about regulatory adherence — it promotes long-term business viability in a market that’s increasingly being driven by concerns over sustainability. Compliance serves as a foundation for supply chain resilience, and risk mitigation.
Who Is Most Affected?
EUDR compliance is poised to disrupt multiple industries. The food and beverage industry, for example, faces increased pressure to verify its sources, while retailers must ensure that private-label and distributed goods comply with deforestation-free mandates. The packaging and manufacturing sectors, particularly those reliant on timber and palm oil-derived materials, must implement rigorous supply chain tracking to maintain compliance.
Beyond these core industries, companies using leather or rubber in products, such as automobiles and furniture, need to create supply chain transparency. In addition, ripple effects extend risks to logistics providers, financial institutions and technology firms. Supply chain service providers must adapt to new compliance expectations, while financial backers of non-compliant companies may face reputational risks. EUDR will not only impact procurement but also investor relations, consumer trust and long-term market positioning.
End-to-End Traceability
To achieve compliance, companies must establish full traceability of commodities from origin to market. This requires obtaining geolocation data for farms and sourcing sites, documented proof of legal compliance, and a well-structured supply chain mapping system. Failure to provide a Due Diligence Statement (DDS) and obtain a Due Diligence Reference Number (DDR) can result in fines of up to 5% of annual turnover and exclusion from the EU market.
The use of advanced tracking systems, digital monitoring tools and traceability technology will be critical to ensuring a transparent and auditable supply chain. Supply chain risk and monitoring tools can provide immutable records of transactions, ensuring data integrity and reducing the risk of fraud. Companies that integrate these technologies now will not only ensure compliance but also gain operational efficiencies.
The Power of Collaboration
EUDR compliance is a collective effort which demands engagement at every level of the supply chain. Companies must work closely with farmers and suppliers to implement sustainable sourcing practices while ensuring that legal teams align contracts with evolving regulatory requirements.
Collaboration extends beyond suppliers to include cross-industry coalitions and government engagement. Businesses that participate in multi-stakeholder initiatives can access shared resources, benchmark best practices, and collectively advocate for realistic compliance frameworks. Effective consumer communication is also essential, reinforcing brand trust through transparency and accountability. Strengthening these collaborative networks will create a more resilient and compliant supply chain.
More Than Just Compliance
The risks of non-compliance are clear: fines, product recalls, loss of EU market access, and reputational damage. At the same time, however, the regulation presents a significant opportunity for forward-thinking businesses. Trailblazer corporations are integrating EUDR compliance into their broader sustainability and carbon neutrality goals. By aligning with global climate initiatives, such as the European Green Deal, companies can future-proof their supply chains and stay ahead of emerging regulations. The key for CEOs is to shift the mindset from compliance as a cost center to that of a value driver.
Balancing Compliance and Profitability
Beyond regulatory adherence, EUDR compliance comes with financial considerations, including certification fees, IT infrastructure upgrades, and supply chain audits. To mitigate financial burdens, businesses must adopt a proactive approach. Negotiating cost-sharing agreements with suppliers, leveraging economies of scale through industry consortia, and investing in automation to reduce manual compliance efforts are key strategies for minimizing expenses while maintaining operational efficiency.
Risk-sharing agreements between suppliers and buyers can help distribute compliance costs more equitably. Meanwhile, digitization of due diligence processes can streamline data collection and reporting, reducing administrative overhead. By treating compliance as a strategic investment rather than a cost burden, companies can transform regulatory requirements into opportunities for growth and differentiation.
With the December deadline fast approaching, businesses must act now to implement EUDR compliance strategies. Prioritizing traceability, fostering collaboration, and managing costs strategically will enable them to turn regulatory obligations into catalysts for innovation and leadership in sustainability.
In the end, embracing EUDR compliance is about securing a deforestation-free future while strengthening supply chain resilience, enhancing brand reputation, and capitalizing on sustainability-driven market opportunities. Supply Chain Brain
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WEF-GenZero aviation initiative aims to boost green fuel uptake in Asia
SINGAPORE - The World Economic Forum and Singapore’s GenZero launched an initiative on May 5 aimed at boosting regional demand for sustainable aviation fuel (SAF) and bolstering the aviation sector’s climate credentials.
A key mission of the Green Fuel Forward initiative is to scale up production of SAF, which the industry regards as a vital tool to cut the sector’s growing greenhouse gas emissions.
Governments globally, including Singapore’s, have set mandates that map steady increases in the percentage of SAF in planes’ fuel tanks in the coming years.
“The only way to get to net zero, or very close to net zero, by the middle of the century, is very, very large amounts of SAF,” said Mr Robert Boyd, Boeing’s sustainability lead for the Asia-Pacific.
More efficient aircraft designs and engines can get perhaps 20 per cent of the way, and operations – such as better route planning – another 10 per cent, he told The Straits Times at the launch of the initiative during the GenZero Climate Summit 2025 at the Sands Expo and Convention Centre.
The summit, held from May 5 to 8, aims to showcase ways to hasten the decarbonisation of the global economy.
Boeing has been actively promoting the use of SAF and the company aims to ensure its commercial aircraft are certified to operate on 100 per cent SAF by 2030, said Mr Boyd.
Lack of awareness and higher costs for the greener fuel remain issues for SAF, which is two or three times as expensive as fossil fuel-derived aviation fuel.
And in Asia, the world’s largest aviation market, demand is not keeping pace with planned production capacity additions in the coming years.
“The Asia-Pacific region has a unique opportunity to lead in sustainable aviation fuels, but unlocking this potential requires stronger demand signals,” said Mr Frederick Teo, chief executive of GenZero, an investment platform owned by Temasek.
SAF is designed to be a drop-in fuel for planes, needing no new additional infrastructure at airports. Current rules allow up to 50 per cent of SAF to be blended with fossil fuel-based jet fuel.
SAF can reduce carbon dioxide (CO2) emissions by up to 80 per cent compared with conventional jet fuel, according to the United Nations’ International Civil Aviation Organisation (ICAO), which has set a long-term aspirational goal of achieving net-zero carbon emissions for international aviation by 2050.
The fuel is made mostly from waste materials such as used cooking oil and animal fat, but can also be made from agricultural residues and even alcohol.
The International Air Transport Association (Iata) estimates that SAF will achieve about 65 per cent of the emissions reductions needed for the industry to reach net zero by 2050. And cutting emissions has become increasingly critical, with aviation currently accounting for approximately 2.5 per cent of global CO2 emissions, and possibly doubling or even tripling from 2019 levels by 2050 unless concerted action is taken.
Green Fuel Forward is a capacity-building initiative that is aimed at drawing in airlines, refiners, logistics companies, banks and others.
A total of 16 companies and organisations have agreed to participate, including Boeing, Climate Impact X, DBS Bank, DHL, the International Energy Agency, Neste, Qantas, Singapore Airlines, Temasek and UOB.
Singapore Airlines first started using SAF in 2017 on a trial basis and is hoping for greater market participation to drive up demand and push down prices, said chief sustainability officer Lee Wen Fen. The airline regards SAF as key to its decarbonisation goals.
A key focus of the initiative is to boost the take-up of SAF certificates by companies to offset their own emissions or the travel emissions of their employees, for example.
The certificates can be bought on exchanges, such as Singapore’s Climate Impact X, and each is linked to the creation of one tonne of SAF.
Certificate buyers can track and claim the environmental benefits of using SAF, such as emissions reductions, without having to purchase the physical fuel. Straits Times
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Carbon credits: A Shariah dilemma in Malaysia’s green push?
Ahmad Shahriman Mohd Shariff, CEO, CIMB Islamic Bank Bhd and CIMB Foundation
As Malaysia advances its ambition to become a leading hub for sustainable finance, new platforms such as the Bursa Carbon Exchange (BCX) are taking centre stage. Financial institutions, including CIMB, are actively participating, signalling a national commitment to climate action. While carbon markets introduce opportunities, they also raise significant ethical questions that demand careful consideration from an Islamic finance perspective. Do these instruments truly align with Shariah principles, or do they present a modern ethical challenge?
What are carbon credits and why do they matter?
Carbon credits are tradable permits representing either the right to emit one tonne of CO2 or the certified removal/avoidance of such emissions. They are key components of the global strategy to reach Net Zero targets, aiming to incentivise emission reductions and fund green projects. Malaysia’s BCX initiative highlights the nation’s commitment to leveraging carbon credits as instruments for emissions reduction and sustainable finance. Yet, the fundamental question persists: Are these market-based solutions ethically sound and Shariah-compliant?
The ethical tightrope: Shariah concerns
From a Shariah viewpoint, several concerns emerge. A core issue is whether the “right” to cause environmental harm (ḍarar) can be bought and sold. Islamic law strictly prohibits causing harm (laˉḍarar wa laˉḍiraˉr). Can an activity that inherently causes harm be sanctioned through a financial transaction?
This leads to a potential paradox: Does purchasing credits to offset or continue emissions conflict with the Islamic duty of stewardship (khilaˉfah) over the resources entrusted to mankind? Could it merely be a “licence to pollute”? Furthermore, questions of justice (ʿadl) arise. Could these markets disproportionately burden developing nations while wealthier entities offset rather than reduce their environmental footprint? Currently, there is no universal Shariah consensus (ijmaˉʿ) on the permissibility and structure of these markets, highlighting an area that needs urgent scholarly attention (ijtihaˉd).
What needs to happen now?
To navigate this complex terrain, proactive steps grounded in Shariah are essential:
Develop clear guidance
There is a pressing need for contemporary scholarly deliberation (ijtihaˉd) and authoritative rulings (fataˉwaˉ) on carbon credits and trading mechanisms.
Institutional leadership
Regulators, Shariah advisory bodies and financial institutions must lead in developing robust, ethically sound frameworks, rather than just following market trends.
mplement practical measures
Key actions include:
Establishing rigorous Shariah screening criteria for carbon projects;
Enhancing transparency and accountability in carbon trading platforms such as BCX; and
Ensuring alignment with the higher objectives of Shariah (Maqaˉṣid al−Sharıˉʿah), particularly the preservation of the environment.
A defining moment for ethical finance
The rise of carbon markets presents a crucial test for Islamic finance. Successfully integrating these tools requires a rigorous reconciliation of market utility with enduring Islamic ethical principles. Collaborative dialogue among scholars, regulators and industry practitioners is vital. The goal must be to establish a global standard for Shariah-compliant carbon markets that genuinely contribute to climate solutions while upholding the profound environmental ethics inherent in Islam. The Edge
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Weighing the New Direction of ISPO Under Presidential Regulation No. 16 of 2025
By: Eko Jaya Siallagan
Deputy Secretary General II for Research and Sustainability, APKASINDO
PALMOILMAGAZINE, JAKARTA – After a long wait, Indonesia’s new Presidential Regulation (Perpres) No. 16 of 2025 on the Indonesian Sustainable Palm Oil (ISPO) Certification System was officially issued on March 19, 2025. While this marks a significant step forward, it also raises critical concerns—especially from smallholder farmers under APKASINDO (the Indonesian Oil Palm Farmers Association).
Since the public consultation stage, APKASINDO has consistently emphasized that the ISPO should guide, not burden, the palm oil sector. A formal letter expressing these views was even submitted to President Prabowo last year. Although some of these concerns have been accommodated in the new regulation, many have gone unaddressed.
One of the most controversial aspects is the expansion of ISPO obligations into the downstream industry. Logically, if upstream (plantation) operations are already ISPO-certified, their downstream products shouldn’t be required to go through the same process. Every additional certification requirement means higher production costs—and ultimately, it’s the smallholder farmers who feel the pinch the most, especially with further pressure on Fresh Fruit Bunch (FFB) prices.
Even more alarming is the extension of ISPO certification to the bioenergy sector, such as biodiesel. Isn’t this counterproductive to the energy self-sufficiency agenda currently championed by President Prabowo? In a recent National Economic Dialogue, the President himself stressed the need to simplify regulations and avoid burdening the people. Ironically, the expanded ISPO scope seems to contradict this directive.
This leads to a pressing question: How nationalistic was the ISPO drafting team? Are we witnessing, once again, the hidden influence of foreign interests channeled through domestic NGOs—organizations that claim to advocate for sustainability but may ultimately undermine the national palm oil industry?
Unlike Perpres No. 44 of 2020, which limited mandatory ISPO certification to plantation businesses, the new Perpres 16/2025 significantly broadens the scope to include downstream industries and bioenergy, thus expanding the burden across the value chain.
Although ISPO certification for smallholders won’t be mandatory until 2029, the challenges remain formidable. Without revising the core principles and criteria—transitioning from an absolute ISPO to a relative ISPO—progress among smallholders will remain stagnant. Currently, only 0.86% of smallholder plantations (out of a total 6.94 million hectares) are ISPO-certified.
To address this, APKASINDO has proposed a cluster-based relative ISPO model with tiered certification categories: Platinum, Gold, Silver, Bronze, and Iron. This model is designed to accelerate certification among smallholders and provide a more inclusive framework.
There are, however, some positive aspects in the new regulation. Notably, the certification costs for smallholders will be covered by the Palm Oil Plantation Fund Management Agency (BPDPKS). This includes business registration, internal control system (ICS) training, assistance, certification, and inspection.
With the newly expanded ISPO Committee structure—which includes the Coordinating Minister, relevant ministers, and business associations—there’s growing hope that groups like APKASINDO will have a real seat at the table in shaping the updated ISPO principles and criteria.
Because ultimately, the future of Indonesian palm oil should not rest on the shoulders of a few. This is a collective endeavor—a partnership between the government, private sector, academia, and above all, the farmers who sustain the industry on the ground. Palm Oil Magazine
The Art of Mastering EUDR Compliance by the Boston Consulting Group (BCG)
Analyst Insight: As the European Union Deforestation Regulation (EUDR) comes into force, companies must proactively ensure that their supply chains are deforestation-free. But compliance isn’t just a legal requirement — it’s a strategic opportunity to enhance transparency and foster sustainability.
Set to take effect in December, 2025, the EUDR is part of the EU’s sustainability regulation. Designed to combat deforestation, it mandates that businesses prove that key commodities — such as cattle, cocoa, palm oil, soy, rubber and timber — are sourced from land free of deforestation. Non-compliance poses serious financial and reputational risks, but forward-thinking companies can leverage compliance efforts to drive innovation and supply chain resilience.
Mastering EUDR compliance isn’t just about regulatory adherence — it promotes long-term business viability in a market that’s increasingly being driven by concerns over sustainability. Compliance serves as a foundation for supply chain resilience, and risk mitigation.
Who Is Most Affected?
EUDR compliance is poised to disrupt multiple industries. The food and beverage industry, for example, faces increased pressure to verify its sources, while retailers must ensure that private-label and distributed goods comply with deforestation-free mandates. The packaging and manufacturing sectors, particularly those reliant on timber and palm oil-derived materials, must implement rigorous supply chain tracking to maintain compliance.
Beyond these core industries, companies using leather or rubber in products, such as automobiles and furniture, need to create supply chain transparency. In addition, ripple effects extend risks to logistics providers, financial institutions and technology firms. Supply chain service providers must adapt to new compliance expectations, while financial backers of non-compliant companies may face reputational risks. EUDR will not only impact procurement but also investor relations, consumer trust and long-term market positioning.
End-to-End Traceability
To achieve compliance, companies must establish full traceability of commodities from origin to market. This requires obtaining geolocation data for farms and sourcing sites, documented proof of legal compliance, and a well-structured supply chain mapping system. Failure to provide a Due Diligence Statement (DDS) and obtain a Due Diligence Reference Number (DDR) can result in fines of up to 5% of annual turnover and exclusion from the EU market.
The use of advanced tracking systems, digital monitoring tools and traceability technology will be critical to ensuring a transparent and auditable supply chain. Supply chain risk and monitoring tools can provide immutable records of transactions, ensuring data integrity and reducing the risk of fraud. Companies that integrate these technologies now will not only ensure compliance but also gain operational efficiencies.
The Power of Collaboration
EUDR compliance is a collective effort which demands engagement at every level of the supply chain. Companies must work closely with farmers and suppliers to implement sustainable sourcing practices while ensuring that legal teams align contracts with evolving regulatory requirements.
Collaboration extends beyond suppliers to include cross-industry coalitions and government engagement. Businesses that participate in multi-stakeholder initiatives can access shared resources, benchmark best practices, and collectively advocate for realistic compliance frameworks. Effective consumer communication is also essential, reinforcing brand trust through transparency and accountability. Strengthening these collaborative networks will create a more resilient and compliant supply chain.
More Than Just Compliance
The risks of non-compliance are clear: fines, product recalls, loss of EU market access, and reputational damage. At the same time, however, the regulation presents a significant opportunity for forward-thinking businesses. Trailblazer corporations are integrating EUDR compliance into their broader sustainability and carbon neutrality goals. By aligning with global climate initiatives, such as the European Green Deal, companies can future-proof their supply chains and stay ahead of emerging regulations. The key for CEOs is to shift the mindset from compliance as a cost center to that of a value driver.
Balancing Compliance and Profitability
Beyond regulatory adherence, EUDR compliance comes with financial considerations, including certification fees, IT infrastructure upgrades, and supply chain audits. To mitigate financial burdens, businesses must adopt a proactive approach. Negotiating cost-sharing agreements with suppliers, leveraging economies of scale through industry consortia, and investing in automation to reduce manual compliance efforts are key strategies for minimizing expenses while maintaining operational efficiency.
Risk-sharing agreements between suppliers and buyers can help distribute compliance costs more equitably. Meanwhile, digitization of due diligence processes can streamline data collection and reporting, reducing administrative overhead. By treating compliance as a strategic investment rather than a cost burden, companies can transform regulatory requirements into opportunities for growth and differentiation.
With the December deadline fast approaching, businesses must act now to implement EUDR compliance strategies. Prioritizing traceability, fostering collaboration, and managing costs strategically will enable them to turn regulatory obligations into catalysts for innovation and leadership in sustainability.
In the end, embracing EUDR compliance is about securing a deforestation-free future while strengthening supply chain resilience, enhancing brand reputation, and capitalizing on sustainability-driven market opportunities. Supply Chain Brain
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WEF-GenZero aviation initiative aims to boost green fuel uptake in Asia
SINGAPORE - The World Economic Forum and Singapore’s GenZero launched an initiative on May 5 aimed at boosting regional demand for sustainable aviation fuel (SAF) and bolstering the aviation sector’s climate credentials.
A key mission of the Green Fuel Forward initiative is to scale up production of SAF, which the industry regards as a vital tool to cut the sector’s growing greenhouse gas emissions.
Governments globally, including Singapore’s, have set mandates that map steady increases in the percentage of SAF in planes’ fuel tanks in the coming years.
“The only way to get to net zero, or very close to net zero, by the middle of the century, is very, very large amounts of SAF,” said Mr Robert Boyd, Boeing’s sustainability lead for the Asia-Pacific.
More efficient aircraft designs and engines can get perhaps 20 per cent of the way, and operations – such as better route planning – another 10 per cent, he told The Straits Times at the launch of the initiative during the GenZero Climate Summit 2025 at the Sands Expo and Convention Centre.
The summit, held from May 5 to 8, aims to showcase ways to hasten the decarbonisation of the global economy.
Boeing has been actively promoting the use of SAF and the company aims to ensure its commercial aircraft are certified to operate on 100 per cent SAF by 2030, said Mr Boyd.
Lack of awareness and higher costs for the greener fuel remain issues for SAF, which is two or three times as expensive as fossil fuel-derived aviation fuel.
And in Asia, the world’s largest aviation market, demand is not keeping pace with planned production capacity additions in the coming years.
“The Asia-Pacific region has a unique opportunity to lead in sustainable aviation fuels, but unlocking this potential requires stronger demand signals,” said Mr Frederick Teo, chief executive of GenZero, an investment platform owned by Temasek.
SAF is designed to be a drop-in fuel for planes, needing no new additional infrastructure at airports. Current rules allow up to 50 per cent of SAF to be blended with fossil fuel-based jet fuel.
SAF can reduce carbon dioxide (CO2) emissions by up to 80 per cent compared with conventional jet fuel, according to the United Nations’ International Civil Aviation Organisation (ICAO), which has set a long-term aspirational goal of achieving net-zero carbon emissions for international aviation by 2050.
The fuel is made mostly from waste materials such as used cooking oil and animal fat, but can also be made from agricultural residues and even alcohol.
The International Air Transport Association (Iata) estimates that SAF will achieve about 65 per cent of the emissions reductions needed for the industry to reach net zero by 2050. And cutting emissions has become increasingly critical, with aviation currently accounting for approximately 2.5 per cent of global CO2 emissions, and possibly doubling or even tripling from 2019 levels by 2050 unless concerted action is taken.
Green Fuel Forward is a capacity-building initiative that is aimed at drawing in airlines, refiners, logistics companies, banks and others.
A total of 16 companies and organisations have agreed to participate, including Boeing, Climate Impact X, DBS Bank, DHL, the International Energy Agency, Neste, Qantas, Singapore Airlines, Temasek and UOB.
Singapore Airlines first started using SAF in 2017 on a trial basis and is hoping for greater market participation to drive up demand and push down prices, said chief sustainability officer Lee Wen Fen. The airline regards SAF as key to its decarbonisation goals.
A key focus of the initiative is to boost the take-up of SAF certificates by companies to offset their own emissions or the travel emissions of their employees, for example.
The certificates can be bought on exchanges, such as Singapore’s Climate Impact X, and each is linked to the creation of one tonne of SAF.
Certificate buyers can track and claim the environmental benefits of using SAF, such as emissions reductions, without having to purchase the physical fuel. Straits Times
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Carbon credits: A Shariah dilemma in Malaysia’s green push?
Ahmad Shahriman Mohd Shariff, CEO, CIMB Islamic Bank Bhd and CIMB Foundation
As Malaysia advances its ambition to become a leading hub for sustainable finance, new platforms such as the Bursa Carbon Exchange (BCX) are taking centre stage. Financial institutions, including CIMB, are actively participating, signalling a national commitment to climate action. While carbon markets introduce opportunities, they also raise significant ethical questions that demand careful consideration from an Islamic finance perspective. Do these instruments truly align with Shariah principles, or do they present a modern ethical challenge?
What are carbon credits and why do they matter?
Carbon credits are tradable permits representing either the right to emit one tonne of CO2 or the certified removal/avoidance of such emissions. They are key components of the global strategy to reach Net Zero targets, aiming to incentivise emission reductions and fund green projects. Malaysia’s BCX initiative highlights the nation’s commitment to leveraging carbon credits as instruments for emissions reduction and sustainable finance. Yet, the fundamental question persists: Are these market-based solutions ethically sound and Shariah-compliant?
The ethical tightrope: Shariah concerns
From a Shariah viewpoint, several concerns emerge. A core issue is whether the “right” to cause environmental harm (ḍarar) can be bought and sold. Islamic law strictly prohibits causing harm (laˉḍarar wa laˉḍiraˉr). Can an activity that inherently causes harm be sanctioned through a financial transaction?
This leads to a potential paradox: Does purchasing credits to offset or continue emissions conflict with the Islamic duty of stewardship (khilaˉfah) over the resources entrusted to mankind? Could it merely be a “licence to pollute”? Furthermore, questions of justice (ʿadl) arise. Could these markets disproportionately burden developing nations while wealthier entities offset rather than reduce their environmental footprint? Currently, there is no universal Shariah consensus (ijmaˉʿ) on the permissibility and structure of these markets, highlighting an area that needs urgent scholarly attention (ijtihaˉd).
What needs to happen now?
To navigate this complex terrain, proactive steps grounded in Shariah are essential:
Develop clear guidance
There is a pressing need for contemporary scholarly deliberation (ijtihaˉd) and authoritative rulings (fataˉwaˉ) on carbon credits and trading mechanisms.
Institutional leadership
Regulators, Shariah advisory bodies and financial institutions must lead in developing robust, ethically sound frameworks, rather than just following market trends.
mplement practical measures
Key actions include:
Establishing rigorous Shariah screening criteria for carbon projects;
Enhancing transparency and accountability in carbon trading platforms such as BCX; and
Ensuring alignment with the higher objectives of Shariah (Maqaˉṣid al−Sharıˉʿah), particularly the preservation of the environment.
A defining moment for ethical finance
The rise of carbon markets presents a crucial test for Islamic finance. Successfully integrating these tools requires a rigorous reconciliation of market utility with enduring Islamic ethical principles. Collaborative dialogue among scholars, regulators and industry practitioners is vital. The goal must be to establish a global standard for Shariah-compliant carbon markets that genuinely contribute to climate solutions while upholding the profound environmental ethics inherent in Islam. The Edge
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Weighing the New Direction of ISPO Under Presidential Regulation No. 16 of 2025
By: Eko Jaya Siallagan
Deputy Secretary General II for Research and Sustainability, APKASINDO
PALMOILMAGAZINE, JAKARTA – After a long wait, Indonesia’s new Presidential Regulation (Perpres) No. 16 of 2025 on the Indonesian Sustainable Palm Oil (ISPO) Certification System was officially issued on March 19, 2025. While this marks a significant step forward, it also raises critical concerns—especially from smallholder farmers under APKASINDO (the Indonesian Oil Palm Farmers Association).
Since the public consultation stage, APKASINDO has consistently emphasized that the ISPO should guide, not burden, the palm oil sector. A formal letter expressing these views was even submitted to President Prabowo last year. Although some of these concerns have been accommodated in the new regulation, many have gone unaddressed.
One of the most controversial aspects is the expansion of ISPO obligations into the downstream industry. Logically, if upstream (plantation) operations are already ISPO-certified, their downstream products shouldn’t be required to go through the same process. Every additional certification requirement means higher production costs—and ultimately, it’s the smallholder farmers who feel the pinch the most, especially with further pressure on Fresh Fruit Bunch (FFB) prices.
Even more alarming is the extension of ISPO certification to the bioenergy sector, such as biodiesel. Isn’t this counterproductive to the energy self-sufficiency agenda currently championed by President Prabowo? In a recent National Economic Dialogue, the President himself stressed the need to simplify regulations and avoid burdening the people. Ironically, the expanded ISPO scope seems to contradict this directive.
This leads to a pressing question: How nationalistic was the ISPO drafting team? Are we witnessing, once again, the hidden influence of foreign interests channeled through domestic NGOs—organizations that claim to advocate for sustainability but may ultimately undermine the national palm oil industry?
Unlike Perpres No. 44 of 2020, which limited mandatory ISPO certification to plantation businesses, the new Perpres 16/2025 significantly broadens the scope to include downstream industries and bioenergy, thus expanding the burden across the value chain.
Although ISPO certification for smallholders won’t be mandatory until 2029, the challenges remain formidable. Without revising the core principles and criteria—transitioning from an absolute ISPO to a relative ISPO—progress among smallholders will remain stagnant. Currently, only 0.86% of smallholder plantations (out of a total 6.94 million hectares) are ISPO-certified.
To address this, APKASINDO has proposed a cluster-based relative ISPO model with tiered certification categories: Platinum, Gold, Silver, Bronze, and Iron. This model is designed to accelerate certification among smallholders and provide a more inclusive framework.
There are, however, some positive aspects in the new regulation. Notably, the certification costs for smallholders will be covered by the Palm Oil Plantation Fund Management Agency (BPDPKS). This includes business registration, internal control system (ICS) training, assistance, certification, and inspection.
With the newly expanded ISPO Committee structure—which includes the Coordinating Minister, relevant ministers, and business associations—there’s growing hope that groups like APKASINDO will have a real seat at the table in shaping the updated ISPO principles and criteria.
Because ultimately, the future of Indonesian palm oil should not rest on the shoulders of a few. This is a collective endeavor—a partnership between the government, private sector, academia, and above all, the farmers who sustain the industry on the ground. Palm Oil Magazine
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May 05, 2025
Mexico’s palm oil companies sign agreement to curb environmental impact
Mexico City, Mexico — Palm oil companies have signed agreements with Profepa (Federal Attorney for Environmental Protection) to curb their environmental impacts in Chiapas. In the new agreement, they will support the removal of palm plantations located within the La Encrucijada National Park in the state of Chiapas, the Profepa (Procuraduría Federal de Protección al Ambiente) reported.
With the goal of conserving biodiversity, environmental services and ecological balance within the Protected Natural Area, La Encrucijada Biosphere Reserve, Profepa and 11 African palm oil extraction companies signed an agreement.
Those involved have agreed that the African palm oil mills undertake to allocate the necessary human, material and financial resources to implement the African palm plantation conversion program within the natural protected areas in accordance with the provisions of the management program for that area.
They have also agreed to implement the program for the elimination of dispersed oil palm and to implement a training program for oil palm producers on environmental legal obligations. A working group will be established to monitor these measures.
The companies will contribute to the removal of African palm plantations currently located within the protected natural area of the La Encrucijada Biosphere Reserve. They will also participate in ecological restoration programs, reforesting the affected areas with native species from the region, in order to recover the affected ecosystems and strengthen local biodiversity.
Companies will regularize their environmental procedures with the competent authorities at all levels of government in order to obtain the corresponding permits and authorizations. Riviera Maya News
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Malaysia to safeguard commodities in US tariff talks
PUTRAJAYA: Malaysia is making thorough preparations for official tariff negotiations with the United States, with the Plantation and Commodities Ministry emphasising the need to protect the interests of the country’s commodities sector, particularly palm oil.
Minister Datuk Seri Johari Abdul Ghani stated that although the United States is not the largest buyer of Malaysian palm oil products, exports to the country remain significant and strategically valuable.
“We have provided all relevant facts and information to the Investment, Trade and Industry Ministry to be used in the upcoming negotiations.
“For example, with regard to palm oil, even though the United States is not a major buyer, we still export nearly RM4.9bil annually to that market,” he told reporters at the Malaysian Palm Oil Board’s Silver Jubilee Gala Night.
Johari said Malaysia’s largest export markets for palm oil currently are Europe, India, and China, which collectively contribute over 40% of total exports.
“But we cannot disregard the United States, because in addition to palm oil, we also export rubber gloves – more than RM8bil annually, wood products – nearly RM6.5bil, and cocoa – at around RM1.6bil.
“Total commodity exports to the United States alone amount to about RM20bil to RM21bil,” he noted, adding that the national commodities sector records total annual exports of around RM186bil worldwide. The StarMY
Mexico’s palm oil companies sign agreement to curb environmental impact
Mexico City, Mexico — Palm oil companies have signed agreements with Profepa (Federal Attorney for Environmental Protection) to curb their environmental impacts in Chiapas. In the new agreement, they will support the removal of palm plantations located within the La Encrucijada National Park in the state of Chiapas, the Profepa (Procuraduría Federal de Protección al Ambiente) reported.
With the goal of conserving biodiversity, environmental services and ecological balance within the Protected Natural Area, La Encrucijada Biosphere Reserve, Profepa and 11 African palm oil extraction companies signed an agreement.
Those involved have agreed that the African palm oil mills undertake to allocate the necessary human, material and financial resources to implement the African palm plantation conversion program within the natural protected areas in accordance with the provisions of the management program for that area.
They have also agreed to implement the program for the elimination of dispersed oil palm and to implement a training program for oil palm producers on environmental legal obligations. A working group will be established to monitor these measures.
The companies will contribute to the removal of African palm plantations currently located within the protected natural area of the La Encrucijada Biosphere Reserve. They will also participate in ecological restoration programs, reforesting the affected areas with native species from the region, in order to recover the affected ecosystems and strengthen local biodiversity.
Companies will regularize their environmental procedures with the competent authorities at all levels of government in order to obtain the corresponding permits and authorizations. Riviera Maya News
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Malaysia to safeguard commodities in US tariff talks
PUTRAJAYA: Malaysia is making thorough preparations for official tariff negotiations with the United States, with the Plantation and Commodities Ministry emphasising the need to protect the interests of the country’s commodities sector, particularly palm oil.
Minister Datuk Seri Johari Abdul Ghani stated that although the United States is not the largest buyer of Malaysian palm oil products, exports to the country remain significant and strategically valuable.
“We have provided all relevant facts and information to the Investment, Trade and Industry Ministry to be used in the upcoming negotiations.
“For example, with regard to palm oil, even though the United States is not a major buyer, we still export nearly RM4.9bil annually to that market,” he told reporters at the Malaysian Palm Oil Board’s Silver Jubilee Gala Night.
Johari said Malaysia’s largest export markets for palm oil currently are Europe, India, and China, which collectively contribute over 40% of total exports.
“But we cannot disregard the United States, because in addition to palm oil, we also export rubber gloves – more than RM8bil annually, wood products – nearly RM6.5bil, and cocoa – at around RM1.6bil.
“Total commodity exports to the United States alone amount to about RM20bil to RM21bil,” he noted, adding that the national commodities sector records total annual exports of around RM186bil worldwide. The StarMY
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May 03, 2025
Malaysia prepared for tariff negotiation with US, will protect commodities sector
PUTRAJAYA (May 2): Malaysia is making thorough preparations for official tariff negotiations with the United States, with the Ministry of Plantation and Commodities (KPK) emphasising the need to protect the interests of the country’s commodities sector, particularly palm oil.
Its minister, Datuk Seri Johari Abdul Ghani, stated that although the United States is not the largest buyer of Malaysian palm oil products, exports to the country remain significant and strategically valuable.
“We have provided all relevant facts and information to the Ministry of Investment, Trade and Industry (MITI) to be used in the upcoming negotiations. For example, with regard to palm oil, even though the United States is not a major buyer, we still export nearly RM4.9 billion annually to that market,” he told reporters at the Silver Jubilee Gala Night of the Malaysian Palm Oil Board (MPOB).
Johari said Malaysia’s largest export markets for palm oil currently are Europe, India and China, which collectively contribute over 40% of total exports. “But we cannot disregard the United States, because in addition to palm oil, we also export rubber gloves — more than RM8 billion annually, wood products...nearly RM6.5 billion, and cocoa at around RM1.6 billion. Total commodity exports to the United States alone amount to about RM20 to RM21 billion,” he noted.
He added that these figures highlighted the importance of the negotiations for the national commodities sector, which records total annual exports of around RM186 billion worldwide.
The minister noted that Malaysian palm oil products currently face a 10% tariff plus an additional 24% in the United States, compared to Indonesia, which faces a 10% tariff plus an additional 32%. “In this regard, we have a slight advantage over Indonesia. But this advantage doesn’t mean we can be complacent. We must also continue to strengthen trade relations with other countries,” he said.
He stressed the need to continue engagement and diplomacy efforts with major buyers worldwide, given the large demand and market capacity beyond the United States.
Earlier, Miti announced the appointment of Deputy Secretary-General (Trade) Mastura Ahmad Mustafa as Malaysia’s chief negotiator in the official tariff talks with the United States, with the US naming an Assistant US Trade Representative (USTR) to lead their side.
According to Miti Minister Tengku Datuk Seri Zafrul Abdul Aziz, the negotiations are expected to focus on tariff reduction and non-tariff barriers — especially in the agricultural sector — as well as addressing the current bilateral trade imbalance, which stands at US$25 billion. The Edge
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Ministry passes key data to Malaysia's chief negotiator for tariff talks with US
KUALA LUMPUR: The Plantation and Commodities Ministry has presented key trade data to Malaysia's chief negotiator for the upcoming formal tariff negotiations with the US.
Its minister Datuk Seri Johari Abdul Ghani said the data highlights the strength and value of Malaysia's commodity exports to the US in supporting the country's trade position.
"The US is not our biggest buyer as Europe, India and China account for over 40 per cent of our palm oil exports.
"However, with total global agri-commodity exports standing at RM186 billion, the US is still an important part of the equation," Johari told a press conference at the Malaysia Palm Oil Industry's (MPOB) silver jubilee gala night held in conjunction with its 25th anniversary.
Meanwhile, in his speech, Johari said in 2024, Malaysia produced 19.3 million tonnes of crude palm oil.
The country generated RM114.4 billion in export revenue, with palm oil remaining the country's third-largest export contributor.
"To ensure the palm oil industry continues to contribute to the national economy, a holistic approach is crucial.
"Our efforts will focus on increasing yields through the use of high-quality planting materials, replanting at the recommended rates, adopting the latest milling and processing technologies, and ensuring the quality of sustainable palm oil products," he said.
Johari credited MPOB for driving technological innovation, having commercialised more than 200 high-impact technologies, adding over RM5.9 billion in market value.
"May MPOB remain dynamic in strengthening world-class research, expanding international strategic collaborations, and ensuring that the industry's benefits reach all stakeholders, especially smallholders, who are the backbone of the nation's palm oil sector," he said. New Straits Times
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A look at Malaysia’s emergence as a business aviation hub in the Asia Pacific region
Located between two and seven degrees north of the equator, Malaysia is famous for its warm tropical climate, with average temperatures of 23°C to 32°C. Understandably, tourism is a major contributor to the country’s economy, and with summer all year long, there’s no bad time to visit.
Alongside tourism, the country is known for its production of petroleum, palm oil and timber, with its biggest industry being manufacturing.
When it comes to business aviation, Malaysia is carving a place for itself among the region’s heavyweights. While Singapore, Indonesia and the Philippines have the biggest slice of the market, business aviation is growing here and in neighbouring Thailand.
“Malaysia’s central location in Asia Pacific (APAC) is definitely helpful,” says Ivan Lim, Regional vice president Asia at ExecuJet Maintenance, Repair and Operations (MRO) Services. “Plus, being near to some of the region’s financial centres means it’s able to tap into the overflowing traffic from these major hubs.”
As well as its geographic location, the competitive rate Malaysia currently offers due to a lower currency is another factor that’s contributed to its emergence as a business aviation hub, notes Syed Ihsan Syed Idris, general manager of aircraft management services at Sapura Aero.
“It offers cost advantages over regional competitors, serves as an alternative to congested hubs like Singapore, functions as a central hub for regional connectivity, and provides access to emerging markets, all while boasting a well-developed aviation infrastructure,” he points out.
Lim notes that one of the region’s drivers for business aviation was the pandemic. “If you look back, Covid-19 definitely introduced new users to business aviation. Because of the various lockdowns and border closures businesses had no choice but to switch to business aviation in order to meet their travel needs.”
“Malaysia also experienced a surge after the pandemic, with growth in new jet owners, ranging from new and used aircraft purchases, charter services and time-sharing models,” adds Haris Abdullah, general manager at
Subang SkyPark. Business Airport International
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Indonesia Aims to Seal EU Trade Deal by Mid-2025 After Years of Talks
Jakarta. Indonesia is pushing to conclude negotiations on the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) by the first half of 2025, a long-awaited deal aimed at deepening economic, trade, and investment ties between Southeast Asia’s largest economy and the European Union.
At present, a trade treaty between Indonesia and the EU is in the works, although years have passed since the negotiations began in July 2016. The pact’s deadline has been repeatedly pushed back, and Jakarta now intends to complete the comprehensive economic partnership agreement (CEPA) within the first semester of 2025. Indonesia reported that its trade surplus with the EU reached nearly $4.5 billion in 2024, almost double the $2.5 billion surplus recorded in 2023. Like most CEPAs, the agreement is expected to significantly reduce import tariffs on goods entering Europe, although the government will release full details once the deal is officially signed.
Chief Economic Affairs Airlangga Hartarto is scheduled to hold a virtual meeting with EU Trade Commissioner Maroš Šefčovič on Monday, May 5, to discuss final points of the agreement.
Deputy Foreign Minister Arif Havas Oegroseno noted that the two sides have undergone 19 rounds of negotiations, with discussions covering trade in goods, sustainable development, and responsible investment. “We’ve completed 19 negotiation rounds. God willing, we will finalize the agreement this year,” Arif told reporters on Friday.
Key commodities such as palm oil, cocoa, and coffee have featured prominently in the negotiations. Arif said cocoa, in particular, has become a concern due to declining plantation land and crop diseases in Africa, prompting Indonesia to import the commodity.
Edi Prio Pambudi, Deputy for Economic and Investment Cooperation at the Coordinating Ministry, emphasized that the agreement must be fair and reciprocal. While Indonesia is willing to grant market access, it expects equal treatment in return.
“We can’t just allow greater access to our markets without ensuring our interests are also protected,” he said. “Our domestic priorities must be recognized by the EU. Flexibility must go both ways.”
Edi added that Indonesia wants benefits equal to those granted to other EU trading partners, such as Vietnam. “Our benchmark is simple: we want the same benefits that countries like Vietnam receive,” he said. “This agreement is about expanding Indonesia’s market access in Europe.”
The Indonesian government is targeting substantive completion of the trade deal by the second quarter of 2025. A final legal review and document vetting process will follow.
“If we don’t finish by Q2, it’s going to drag on too long,” Edi said. “What matters now is reaching a substantive agreement. The rest --legal scrubbing and technical details-- can follow.”
The IEU-CEPA is expected to significantly boost Indonesia’s trade volume with the EU, currently one of its largest non-ASEAN trading partners, and help diversify export destinations. Jakarta Globe
Malaysia prepared for tariff negotiation with US, will protect commodities sector
PUTRAJAYA (May 2): Malaysia is making thorough preparations for official tariff negotiations with the United States, with the Ministry of Plantation and Commodities (KPK) emphasising the need to protect the interests of the country’s commodities sector, particularly palm oil.
Its minister, Datuk Seri Johari Abdul Ghani, stated that although the United States is not the largest buyer of Malaysian palm oil products, exports to the country remain significant and strategically valuable.
“We have provided all relevant facts and information to the Ministry of Investment, Trade and Industry (MITI) to be used in the upcoming negotiations. For example, with regard to palm oil, even though the United States is not a major buyer, we still export nearly RM4.9 billion annually to that market,” he told reporters at the Silver Jubilee Gala Night of the Malaysian Palm Oil Board (MPOB).
Johari said Malaysia’s largest export markets for palm oil currently are Europe, India and China, which collectively contribute over 40% of total exports. “But we cannot disregard the United States, because in addition to palm oil, we also export rubber gloves — more than RM8 billion annually, wood products...nearly RM6.5 billion, and cocoa at around RM1.6 billion. Total commodity exports to the United States alone amount to about RM20 to RM21 billion,” he noted.
He added that these figures highlighted the importance of the negotiations for the national commodities sector, which records total annual exports of around RM186 billion worldwide.
The minister noted that Malaysian palm oil products currently face a 10% tariff plus an additional 24% in the United States, compared to Indonesia, which faces a 10% tariff plus an additional 32%. “In this regard, we have a slight advantage over Indonesia. But this advantage doesn’t mean we can be complacent. We must also continue to strengthen trade relations with other countries,” he said.
He stressed the need to continue engagement and diplomacy efforts with major buyers worldwide, given the large demand and market capacity beyond the United States.
Earlier, Miti announced the appointment of Deputy Secretary-General (Trade) Mastura Ahmad Mustafa as Malaysia’s chief negotiator in the official tariff talks with the United States, with the US naming an Assistant US Trade Representative (USTR) to lead their side.
According to Miti Minister Tengku Datuk Seri Zafrul Abdul Aziz, the negotiations are expected to focus on tariff reduction and non-tariff barriers — especially in the agricultural sector — as well as addressing the current bilateral trade imbalance, which stands at US$25 billion. The Edge
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Ministry passes key data to Malaysia's chief negotiator for tariff talks with US
KUALA LUMPUR: The Plantation and Commodities Ministry has presented key trade data to Malaysia's chief negotiator for the upcoming formal tariff negotiations with the US.
Its minister Datuk Seri Johari Abdul Ghani said the data highlights the strength and value of Malaysia's commodity exports to the US in supporting the country's trade position.
"The US is not our biggest buyer as Europe, India and China account for over 40 per cent of our palm oil exports.
"However, with total global agri-commodity exports standing at RM186 billion, the US is still an important part of the equation," Johari told a press conference at the Malaysia Palm Oil Industry's (MPOB) silver jubilee gala night held in conjunction with its 25th anniversary.
Meanwhile, in his speech, Johari said in 2024, Malaysia produced 19.3 million tonnes of crude palm oil.
The country generated RM114.4 billion in export revenue, with palm oil remaining the country's third-largest export contributor.
"To ensure the palm oil industry continues to contribute to the national economy, a holistic approach is crucial.
"Our efforts will focus on increasing yields through the use of high-quality planting materials, replanting at the recommended rates, adopting the latest milling and processing technologies, and ensuring the quality of sustainable palm oil products," he said.
Johari credited MPOB for driving technological innovation, having commercialised more than 200 high-impact technologies, adding over RM5.9 billion in market value.
"May MPOB remain dynamic in strengthening world-class research, expanding international strategic collaborations, and ensuring that the industry's benefits reach all stakeholders, especially smallholders, who are the backbone of the nation's palm oil sector," he said. New Straits Times
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A look at Malaysia’s emergence as a business aviation hub in the Asia Pacific region
Located between two and seven degrees north of the equator, Malaysia is famous for its warm tropical climate, with average temperatures of 23°C to 32°C. Understandably, tourism is a major contributor to the country’s economy, and with summer all year long, there’s no bad time to visit.
Alongside tourism, the country is known for its production of petroleum, palm oil and timber, with its biggest industry being manufacturing.
When it comes to business aviation, Malaysia is carving a place for itself among the region’s heavyweights. While Singapore, Indonesia and the Philippines have the biggest slice of the market, business aviation is growing here and in neighbouring Thailand.
“Malaysia’s central location in Asia Pacific (APAC) is definitely helpful,” says Ivan Lim, Regional vice president Asia at ExecuJet Maintenance, Repair and Operations (MRO) Services. “Plus, being near to some of the region’s financial centres means it’s able to tap into the overflowing traffic from these major hubs.”
As well as its geographic location, the competitive rate Malaysia currently offers due to a lower currency is another factor that’s contributed to its emergence as a business aviation hub, notes Syed Ihsan Syed Idris, general manager of aircraft management services at Sapura Aero.
“It offers cost advantages over regional competitors, serves as an alternative to congested hubs like Singapore, functions as a central hub for regional connectivity, and provides access to emerging markets, all while boasting a well-developed aviation infrastructure,” he points out.
Lim notes that one of the region’s drivers for business aviation was the pandemic. “If you look back, Covid-19 definitely introduced new users to business aviation. Because of the various lockdowns and border closures businesses had no choice but to switch to business aviation in order to meet their travel needs.”
“Malaysia also experienced a surge after the pandemic, with growth in new jet owners, ranging from new and used aircraft purchases, charter services and time-sharing models,” adds Haris Abdullah, general manager at
Subang SkyPark. Business Airport International
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Indonesia Aims to Seal EU Trade Deal by Mid-2025 After Years of Talks
Jakarta. Indonesia is pushing to conclude negotiations on the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) by the first half of 2025, a long-awaited deal aimed at deepening economic, trade, and investment ties between Southeast Asia’s largest economy and the European Union.
At present, a trade treaty between Indonesia and the EU is in the works, although years have passed since the negotiations began in July 2016. The pact’s deadline has been repeatedly pushed back, and Jakarta now intends to complete the comprehensive economic partnership agreement (CEPA) within the first semester of 2025. Indonesia reported that its trade surplus with the EU reached nearly $4.5 billion in 2024, almost double the $2.5 billion surplus recorded in 2023. Like most CEPAs, the agreement is expected to significantly reduce import tariffs on goods entering Europe, although the government will release full details once the deal is officially signed.
Chief Economic Affairs Airlangga Hartarto is scheduled to hold a virtual meeting with EU Trade Commissioner Maroš Šefčovič on Monday, May 5, to discuss final points of the agreement.
Deputy Foreign Minister Arif Havas Oegroseno noted that the two sides have undergone 19 rounds of negotiations, with discussions covering trade in goods, sustainable development, and responsible investment. “We’ve completed 19 negotiation rounds. God willing, we will finalize the agreement this year,” Arif told reporters on Friday.
Key commodities such as palm oil, cocoa, and coffee have featured prominently in the negotiations. Arif said cocoa, in particular, has become a concern due to declining plantation land and crop diseases in Africa, prompting Indonesia to import the commodity.
Edi Prio Pambudi, Deputy for Economic and Investment Cooperation at the Coordinating Ministry, emphasized that the agreement must be fair and reciprocal. While Indonesia is willing to grant market access, it expects equal treatment in return.
“We can’t just allow greater access to our markets without ensuring our interests are also protected,” he said. “Our domestic priorities must be recognized by the EU. Flexibility must go both ways.”
Edi added that Indonesia wants benefits equal to those granted to other EU trading partners, such as Vietnam. “Our benchmark is simple: we want the same benefits that countries like Vietnam receive,” he said. “This agreement is about expanding Indonesia’s market access in Europe.”
The Indonesian government is targeting substantive completion of the trade deal by the second quarter of 2025. A final legal review and document vetting process will follow.
“If we don’t finish by Q2, it’s going to drag on too long,” Edi said. “What matters now is reaching a substantive agreement. The rest --legal scrubbing and technical details-- can follow.”
The IEU-CEPA is expected to significantly boost Indonesia’s trade volume with the EU, currently one of its largest non-ASEAN trading partners, and help diversify export destinations. Jakarta Globe
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May 02, 2025
Indonesia's crackdown on illegal plantations creating financial risk for banks
PALMOILMAGAZINE, JAKARTA – The escalating tension between Indonesia’s push for forest area regulation and the ongoing operations of the palm oil industry is now drawing the concern of the banking sector. As the government intensifies efforts to enforce forestry laws, financial institutions face a new dilemma: how to maintain credit quality amid growing regulatory uncertainty over land legality.
A significant portion of palm oil plantations affected by forest area enforcement policies currently serve as collateral for bank loans. If these lands are declared illegal or face legal complications, their value as collateral could be severely impacted—raising the risk of non-performing loans (NPLs) and potentially triggering a wider shock to financial stability.
According to the Financial Services Authority (OJK), the NPL ratio in the agricultural sector, which includes crude palm oil (CPO) businesses, stood at 2% as of January 2025—the highest in the past five months. Although this marks a slight improvement from 2.02% in January 2024, the figures suggest persistent underlying pressure.
Meanwhile, Bank Indonesia data shows that lending to the sector has reached IDR 553 trillion, representing around 7.19% of total national credit. Given this level of exposure, the palm oil industry poses a significant macroeconomic risk that cannot be ignored.
Major banks are responding with caution. Bank Danamon, for instance, reported that its palm oil NPLs remain below 0.1%, but the bank still enforces prudent credit limits, capping its exposure to the sector at under 5% of its total lending portfolio.
CIMB Niaga has adopted a neutral stance. “We do not see a significant concentration of risk in this sector,” said President Director Lani Darmawan, as quoted by Palmoilmagazine.com via Kontan on Thursday (April 24, 2025). However, she emphasized that borrowers must comply with environmental sustainability principles as a prerequisite for financing.
Bank Central Asia (BCA) has taken a firmer stance, only extending credit to palm oil operators certified under ISPO or RSPO standards. “We’ve also implemented early warning systems to detect any potential NPL spikes,” said BCA EVP of Corporate Communication, Hera F. Haryn.
This situation presents a growing policy challenge: how to uphold environmental and forestry laws without causing unintended disruption in the financial sector. Unless the legal status of affected plantation lands is resolved soon, systemic risks within the banking industry may no longer be theoretical—they could become reality. Palm oil magazine
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Indonesian palm oil production forecast to reach 47M tonnes in 2025/26
Indonesian palm oil production is projected to rise by 3% to 47M tonnes in the 2025/26 season due to favourable weather and increased fertiliser use, according to a US Department of Agriculture (USDA) Foreign Agricultural Service (FAS) report.
The 14 April report said the El Niño and Indian Ocean Dipole weather phenomena were not expected to have a significant impact, resulting in normal dry season weather patterns in Indonesia.
Additionally, fertiliser applications were expected to rise due to fertiliser costs falling by 14%-59% between 2022 and February 2025.
Despite the rise in palm oil production, the harvested area was set to remain at the current 14.4M ha in 2025/26, the report said.
The area of immature oil palms, meanwhile, was projected to increase from the current 15%-16%, although this was still well below the record set in 2011-2014. The FSA expects significant oil palm area expansion in the coming years due to high palm oil prices.
Indonesia’s palm oil consumption is set to grow slightly, reaching 22.6M tonnes in 2025/26, due to increased demand in local industrial and food sectors, according to the report. In particular, the country’s B40 biodiesel blending mandate, which began rolling out in March 2025, is forecast to drive industrial palm oil consumption to 14.9M tonnes in the coming marketing year.
The FSA also noted that Indonesia was eyeing a B50 blending mandate but achieving that target would require increasing the country’s biodiesel production capacity.
In 2025, Indonesian biodiesel capacity was expected to rise by 1.5bn litres from its current capacity of 19.7bn litres, the report said.
However, the country would still need an additional 4bn litres of capacity to satisfy a B50 blending mandate, according to data from the Indonesian biodiesel producers’ association.
Food use of palm oil was set to increase slightly by 50,000 tonnes, reaching 7.4M tonnes, the report said.
Due to the increasing demand from the local biodiesel sector, the Indonesian government had increased export levies on palm oil products by 10%, the USDA noted.
Consequently, Indonesia’s palm oil exports were forecast to rise only slightly, reaching 24M tonnes in 2025/26, compared to 23M tonnes the previous year.
Demand from China, India and Pakistan was expected to keep driving exports, although the former two countries were reducing their imports and increased Pakistani imports were not enough to offset the discrepancy.
Palm oil stocks in Indonesia are expected rise by 8% to reach 5.3M tonnes in 2025/26, indicating higher supplies, according to the report. OFI Magazine
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SD Guthrie’s 1st Tariff-free Palm Oil Shipment Arrived in UK
8,000 MT of fully traceable and segregated, *RSPO-certified sustainable palm oil shipped from Kunak Port, Sabah, on 19 February.
Sourced from SD Guthrie’s supply chain in Sabah that produces the best quality palm oil for customers.
Petaling Jaya, 2 May 2025 – SD Guthrie Berhad (formerly Sime Darby Plantation Berhad) celebrated a landmark moment on 4 April 2025, with the first-ever tariff-free shipment of *RSPO-certified sustainable palm oil (CSPO) into the United Kingdom under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). SD Guthrie International Liverpool Refinery received the 8,000 MT of fully traceable and segregated CSPO. Shipped aboard the Dolphin 19 from Kunak Port, Sabah, on 19 February, the CSPO had also undergone stringent testing to ensure low levels of Mineral Oil Saturated Hydrocarbons (MOSH) and Mineral Oil Aromatic Hydrocarbons (MOAH).
The CPTPP is a free-trade pact initially agreed between 11 Pacific Rim countries, including Malaysia in 2018. The agreement eliminates most tariffs whilst promoting economic integration and upholding rigorous labour and environmental protections among its member countries. With the UK’s official membership of CTPP coming into effect on 15 December 2024, tariffs on crude palm oil and its derivatives imported from Malaysia into the UK have been eliminated. Previously, tariff had ranged between 2% and 10%.
Datuk Mohamad Helmy Othman Basha, SD Guthrie’s Group Managing Director, said the arrival of the shipment was a proud moment for the company which is one of the world’s largest producers of CSPO. “This milestone highlights not only the strength of Malaysia–UK trade relations, but also SD Guthrie’s strong commitment to ensure quality, traceability and security of sustainable palm oil supply to our discerning customers in the UK.”
For over a decade, SD Guthrie’s Liverpool refinery has been the company’s gateway for CSPO to enter the UK market, supplying approximately 50% - 55% of domestic palm oil demand. Its refined products are widely used for deep-frying in fish-and-chip shops across the country, and as key ingredients in the production of many popular brands of biscuits, baked goods and British confectionery favourites.
“While our supply chain in Papua New Guinea (PNG) has been and remains the main source of our products for the UK market, this latest shipment originating from our supply chain in Sabah underscores our capability to provide consistent and stable supply of CSPO to the UK, whilst maintaining the highest standards of quality, sustainability, and food safety. Depending on market conditions and customer requirements, we can offer customers the security of supply they need to run their businesses, from Malaysia or PNG,” he added.
This cargo’s full traceability means every drop of palm oil can be traced back to its exact estate and mill within SD Guthrie’s supply chain in Sabah, to ensure that it meets rigorous *RSPO environmental and social criteria. Its segregation ensures the consignment remains entirely separate from other conventionally produced palm oil throughout the journey—from plantation to port, tanker to refinery—guaranteeing genuine and untainted 100% sustainable product delivery.
In line with SD Guthrie’s focus on consumer health, the company’s supply chain in Sabah also produces high quality palm oil that meets international food safety standards, giving customers added confidence in the purity and safety of its products. SD Guthrie
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Research shows Malaysian palm oil plantations lose efficiency after receiving sustainability labels
In Malaysia, analysis of independent satellite data shows a decrease in the efficiency of palm oil plantations in Malaysia after they received sustainability labels. This could have negative repercussions for the environment.
Sustainability certificates are inherently beneficial. The label on the packaging ensures that specific environmental and social standards are upheld during production. Many consumers take notice of this and are willing to pay a little more for it. However, research indicates that certificates can lead to unintended consequences. “If too much emphasis is placed on environmental factors, social aspects may be neglected, and vice versa,” explains Nina Zachlod.
The doctoral student analyzed palm oil plantations in Malaysia using satellite data. The research team, which included Charlotta Sirén, Michael Hudecheck, and Gerard George, found that certification processes can sometimes lead to unexpected declines in efficiency. The paper is published in Communications Earth & Environment. Biofuels Digest
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Indonesia's crackdown on illegal plantations creating financial risk for banks
PALMOILMAGAZINE, JAKARTA – The escalating tension between Indonesia’s push for forest area regulation and the ongoing operations of the palm oil industry is now drawing the concern of the banking sector. As the government intensifies efforts to enforce forestry laws, financial institutions face a new dilemma: how to maintain credit quality amid growing regulatory uncertainty over land legality.
A significant portion of palm oil plantations affected by forest area enforcement policies currently serve as collateral for bank loans. If these lands are declared illegal or face legal complications, their value as collateral could be severely impacted—raising the risk of non-performing loans (NPLs) and potentially triggering a wider shock to financial stability.
According to the Financial Services Authority (OJK), the NPL ratio in the agricultural sector, which includes crude palm oil (CPO) businesses, stood at 2% as of January 2025—the highest in the past five months. Although this marks a slight improvement from 2.02% in January 2024, the figures suggest persistent underlying pressure.
Meanwhile, Bank Indonesia data shows that lending to the sector has reached IDR 553 trillion, representing around 7.19% of total national credit. Given this level of exposure, the palm oil industry poses a significant macroeconomic risk that cannot be ignored.
Major banks are responding with caution. Bank Danamon, for instance, reported that its palm oil NPLs remain below 0.1%, but the bank still enforces prudent credit limits, capping its exposure to the sector at under 5% of its total lending portfolio.
CIMB Niaga has adopted a neutral stance. “We do not see a significant concentration of risk in this sector,” said President Director Lani Darmawan, as quoted by Palmoilmagazine.com via Kontan on Thursday (April 24, 2025). However, she emphasized that borrowers must comply with environmental sustainability principles as a prerequisite for financing.
Bank Central Asia (BCA) has taken a firmer stance, only extending credit to palm oil operators certified under ISPO or RSPO standards. “We’ve also implemented early warning systems to detect any potential NPL spikes,” said BCA EVP of Corporate Communication, Hera F. Haryn.
This situation presents a growing policy challenge: how to uphold environmental and forestry laws without causing unintended disruption in the financial sector. Unless the legal status of affected plantation lands is resolved soon, systemic risks within the banking industry may no longer be theoretical—they could become reality. Palm oil magazine
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Indonesian palm oil production forecast to reach 47M tonnes in 2025/26
Indonesian palm oil production is projected to rise by 3% to 47M tonnes in the 2025/26 season due to favourable weather and increased fertiliser use, according to a US Department of Agriculture (USDA) Foreign Agricultural Service (FAS) report.
The 14 April report said the El Niño and Indian Ocean Dipole weather phenomena were not expected to have a significant impact, resulting in normal dry season weather patterns in Indonesia.
Additionally, fertiliser applications were expected to rise due to fertiliser costs falling by 14%-59% between 2022 and February 2025.
Despite the rise in palm oil production, the harvested area was set to remain at the current 14.4M ha in 2025/26, the report said.
The area of immature oil palms, meanwhile, was projected to increase from the current 15%-16%, although this was still well below the record set in 2011-2014. The FSA expects significant oil palm area expansion in the coming years due to high palm oil prices.
Indonesia’s palm oil consumption is set to grow slightly, reaching 22.6M tonnes in 2025/26, due to increased demand in local industrial and food sectors, according to the report. In particular, the country’s B40 biodiesel blending mandate, which began rolling out in March 2025, is forecast to drive industrial palm oil consumption to 14.9M tonnes in the coming marketing year.
The FSA also noted that Indonesia was eyeing a B50 blending mandate but achieving that target would require increasing the country’s biodiesel production capacity.
In 2025, Indonesian biodiesel capacity was expected to rise by 1.5bn litres from its current capacity of 19.7bn litres, the report said.
However, the country would still need an additional 4bn litres of capacity to satisfy a B50 blending mandate, according to data from the Indonesian biodiesel producers’ association.
Food use of palm oil was set to increase slightly by 50,000 tonnes, reaching 7.4M tonnes, the report said.
Due to the increasing demand from the local biodiesel sector, the Indonesian government had increased export levies on palm oil products by 10%, the USDA noted.
Consequently, Indonesia’s palm oil exports were forecast to rise only slightly, reaching 24M tonnes in 2025/26, compared to 23M tonnes the previous year.
Demand from China, India and Pakistan was expected to keep driving exports, although the former two countries were reducing their imports and increased Pakistani imports were not enough to offset the discrepancy.
Palm oil stocks in Indonesia are expected rise by 8% to reach 5.3M tonnes in 2025/26, indicating higher supplies, according to the report. OFI Magazine
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SD Guthrie’s 1st Tariff-free Palm Oil Shipment Arrived in UK
8,000 MT of fully traceable and segregated, *RSPO-certified sustainable palm oil shipped from Kunak Port, Sabah, on 19 February.
Sourced from SD Guthrie’s supply chain in Sabah that produces the best quality palm oil for customers.
Petaling Jaya, 2 May 2025 – SD Guthrie Berhad (formerly Sime Darby Plantation Berhad) celebrated a landmark moment on 4 April 2025, with the first-ever tariff-free shipment of *RSPO-certified sustainable palm oil (CSPO) into the United Kingdom under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). SD Guthrie International Liverpool Refinery received the 8,000 MT of fully traceable and segregated CSPO. Shipped aboard the Dolphin 19 from Kunak Port, Sabah, on 19 February, the CSPO had also undergone stringent testing to ensure low levels of Mineral Oil Saturated Hydrocarbons (MOSH) and Mineral Oil Aromatic Hydrocarbons (MOAH).
The CPTPP is a free-trade pact initially agreed between 11 Pacific Rim countries, including Malaysia in 2018. The agreement eliminates most tariffs whilst promoting economic integration and upholding rigorous labour and environmental protections among its member countries. With the UK’s official membership of CTPP coming into effect on 15 December 2024, tariffs on crude palm oil and its derivatives imported from Malaysia into the UK have been eliminated. Previously, tariff had ranged between 2% and 10%.
Datuk Mohamad Helmy Othman Basha, SD Guthrie’s Group Managing Director, said the arrival of the shipment was a proud moment for the company which is one of the world’s largest producers of CSPO. “This milestone highlights not only the strength of Malaysia–UK trade relations, but also SD Guthrie’s strong commitment to ensure quality, traceability and security of sustainable palm oil supply to our discerning customers in the UK.”
For over a decade, SD Guthrie’s Liverpool refinery has been the company’s gateway for CSPO to enter the UK market, supplying approximately 50% - 55% of domestic palm oil demand. Its refined products are widely used for deep-frying in fish-and-chip shops across the country, and as key ingredients in the production of many popular brands of biscuits, baked goods and British confectionery favourites.
“While our supply chain in Papua New Guinea (PNG) has been and remains the main source of our products for the UK market, this latest shipment originating from our supply chain in Sabah underscores our capability to provide consistent and stable supply of CSPO to the UK, whilst maintaining the highest standards of quality, sustainability, and food safety. Depending on market conditions and customer requirements, we can offer customers the security of supply they need to run their businesses, from Malaysia or PNG,” he added.
This cargo’s full traceability means every drop of palm oil can be traced back to its exact estate and mill within SD Guthrie’s supply chain in Sabah, to ensure that it meets rigorous *RSPO environmental and social criteria. Its segregation ensures the consignment remains entirely separate from other conventionally produced palm oil throughout the journey—from plantation to port, tanker to refinery—guaranteeing genuine and untainted 100% sustainable product delivery.
In line with SD Guthrie’s focus on consumer health, the company’s supply chain in Sabah also produces high quality palm oil that meets international food safety standards, giving customers added confidence in the purity and safety of its products. SD Guthrie
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Research shows Malaysian palm oil plantations lose efficiency after receiving sustainability labels
In Malaysia, analysis of independent satellite data shows a decrease in the efficiency of palm oil plantations in Malaysia after they received sustainability labels. This could have negative repercussions for the environment.
Sustainability certificates are inherently beneficial. The label on the packaging ensures that specific environmental and social standards are upheld during production. Many consumers take notice of this and are willing to pay a little more for it. However, research indicates that certificates can lead to unintended consequences. “If too much emphasis is placed on environmental factors, social aspects may be neglected, and vice versa,” explains Nina Zachlod.
The doctoral student analyzed palm oil plantations in Malaysia using satellite data. The research team, which included Charlotta Sirén, Michael Hudecheck, and Gerard George, found that certification processes can sometimes lead to unexpected declines in efficiency. The paper is published in Communications Earth & Environment. Biofuels Digest
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CSPO Watch May 2025 Palm oil news