Palm oil news July 2025
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July 13, 2025
Indonesia Courts EU Leaders in Brussels to Finalize Zero-Tariff Trade Deal
Jakarta. President Prabowo Subianto arrived in Brussels on Saturday for high-level talks with European Union leaders, including European Commission President Ursula von der Leyen, as Indonesia pushes to finalize a landmark trade deal aimed at eliminating tariffs on its exports to the bloc.
The visit follows stalled negotiations with the United States, where Indonesia faces a 32 percent “reciprocal tariff” imposed by former President Donald Trump.
Prabowo was accompanied by Chief Economic Minister Airlangga Hartarto -- who led the earlier US negotiations -- along with Investment Minister Rosan Roeslani, Cabinet Secretary Teddy Indra Wijaya, and Trade Minister Budi Santoso.
Airlangga said the Brussels trip is focused on concluding the long-delayed Indonesia-European Union Comprehensive Economic Partnership Agreement (CEPA), which has been under negotiation for nine years and is now at the ratification stage.
“This agreement marks a new milestone amid uncertainties in Indonesia-EU economic ties,” Airlangga said in a video statement broadcast Sunday by the State Secretariat’s YouTube channel.
Once ratified, CEPA will eliminate tariffs on a substantial share of bilateral trade. “Indonesian goods will enter the European market with zero percent tariffs,” Airlangga said, noting that the official signing is scheduled for the third quarter of 2025 in Jakarta.
He added that the deal comes as global economic and geopolitical dynamics shift: “Indonesia is set to become the EU’s strategic partner as we progress toward OECD membership. Indonesia’s economy will continue its strong growth, and they see Indonesia as ASEAN’s economic anchor -- the gateway to the region.”
Saturday’s visit marks Airlangga’s second trip to Brussels in two months, following a final round of CEPA negotiations last month, where both sides resolved remaining technical issues.
Airlangga’s announcement came after a meeting with European Commissioner for Trade and Economic Security Maroš Šefčovič in Brussels.
The EU is Indonesia’s fifth-largest trading partner, with bilateral trade reaching $30.1 billion in 2024. Indonesia posted a $4.5 billion trade surplus with the EU last year.
“Indonesia and the EU recognize this as a critical moment,” Airlangga said during his earlier visit. “Our key commodities complement rather than compete. Finalizing this agreement will jointly strengthen global supply chains.”
Zero Tariffs
Under CEPA, 80 percent of Indonesia’s exports to the EU are expected to enjoy zero tariffs within one to two years of implementation. Sectors set to benefit include labor-intensive industries such as footwear, textiles, and garments, as well as palm oil, fisheries, renewable energy, and electric vehicles.
During negotiations, the EU raised concerns over local content requirements (TKDN), automotive sector access, critical minerals, and investment incentives.
Indonesia, in turn, pressed for equitable treatment of its fishery exports, seeking parity with ASEAN neighbors such as Thailand and the Philippines. Airlangga said the EU had agreed to ensure a level playing field for Indonesian fishery products.
On the EU’s deforestation regulations, Commissioner Šefčovič assured Indonesian officials that special consideration would be given -- a pledge Airlangga said would safeguard Indonesia’s forest-based exports.
The Indonesian government estimates that CEPA could boost its exports to the EU by over 50 percent within three to four years by improving market access and removing key trade barriers. Jakarta Globe
---------
Trump’s Chaos Strategy Is Hurting His Allies -- Not Just His Rivals
Indonesia: A Partner Undermined
Indonesia, despite its historically friendly relationship with the US, has not been spared. Jakarta now faces a 32 percent tariff on key exports to the US, affecting palm oil, electronics, textiles, rubber goods, and footwear. These sectors form the backbone of Indonesia's export economy.
This is especially frustrating considering that Indonesia had proactively offered significant concessions to the US:
---------
ASEAN-EU partnership must be equal, fair, inclusive: Sugiono
Jakarta (ANTARA) - Foreign Minister Sugiono emphasized the importance of an equal, fair, and inclusive partnership between ASEAN and the European Union (EU) to maximize potential cooperation at the ASEAN-EU Post Ministerial Conference in Kuala Lumpur, Malaysia.
In a press release issued by the Ministry of Foreign Affairs in Jakarta on Friday, Sugiono lauded the progress of ongoing free trade agreement (FTA) negotiations between the EU and several ASEAN member states, including Indonesia.
The minister also highlighted the ongoing ASEAN-EU relationship in other sectors, such as sustainable development and the energy transition.
However, he said that in order to move forward, unilateral steps that could hurt ASEAN or the EU and do not reflect their relationship as strategic partners must be avoided.
“The big economic potential of ASEAN-EU can only be realized through mutually beneficial and non-discriminatory policies,” he said.
According to Sugiono, ASEAN-EU dialogue must continue to be maintained, including through the continuation of the Joint Working Group on Palm Oil, the Comprehensive Air Transport Agreement, and exploration of potential cooperation within the Indo-Pacific framework.
During the meeting with the EU, he cited the situation in Palestine and the Middle East and said that economic success would be difficult to achieve if global geopolitical uncertainty persists.
“Indonesia welcomes EU countries providing support to Palestine. However, the ongoing crisis in Gaza requires stronger collective action,” he added and expressed the hope for greater EU support for efforts to resolve the conflict in Gaza.
He said that the unresolved situation in Gaza and the lack of legal enforcement and accountability have eroded the credibility of the international legal order and could potentially ignite conflicts in other parts of the world. Antara News
---------
Rotterdam flooded with counterfeit biofuels, threatening Europe’s climate agenda
A surge of fraud tied to biobased fuels imported through Rotterdam is undermining Europe’s climate goals, according to environmental organizations and experts who say Dutch authorities have little understanding of the full scale of deception.
The Dutch Emissions Authority, or NEa, which oversees the origin and sustainability of biobased fuels in the Netherlands, admits it does not know how widespread the fraud is. “We don’t know what we don’t see,” NEa director Mark Bressers told NOS. “If we keep doing what we’re doing now, it won’t end well.”
Biobased fuels, made from materials such as plants, fats or food waste, are central to European targets to cut greenhouse gases. The European Union has pledged to reduce CO2 emissions by 90 percent by 2040 compared with 1990 levels, aiming for climate neutrality by 2050. In 2024, biobased fuels accounted for 14 percent of a typical fuel tank.
In the Netherlands, more than 90 percent of biobased fuels come from waste or residual streams considered highly sustainable. Used cooking oil and palm oil mill effluent, known as POME, are particularly valued because they qualify for European subsidies and count double toward fuel companies’ sustainability goals.
But the lucrative incentives also create what Bressers called strong motives for fraud throughout the supply chain, from suppliers of raw materials to processing facilities. “There are strong incentives to commit fraud,” Bressers told NOS.
Investigations by Transport & Environment, a European environmental organization, revealed that companies are falsifying documents and mislabeling products on a massive scale. Non-sustainable materials, including virgin cooking oil and fresh palm oil, are falsely labeled as waste streams like used cooking oil and POME. Some companies mix non-sustainable products with genuine waste and then forge certificates that are supposed to guarantee the sustainability and origin of the fuels.
Environmental groups say the impact on emissions is severe. “We are emitting far more CO2 than we think,” said Nienke Onnen of the Dutch group Natuur & Milieu. “We achieve climate gains only on paper, not in practice.”
So-called counterfeit biobased fuels can be as polluting as fossil fuels. In some cases, they are even worse because palm oil is associated with deforestation in Indonesia and Malaysia. This has led the European Union to partly ban palm oil in biobased fuels.
Yet much of the questionable material still reportedly enters Europe through the Netherlands. Less than 5 percent of the used cooking oil converted into fuel in the Netherlands originates domestically. The majority is imported, mainly from China. POME is not produced in the Netherlands at all and largely comes from Indonesia and Malaysia.
A 2024 analysis by Transport & Environment found that Malaysia exported three times more POME than it actually produced and imported. In 2023, the EU and United Kingdom together reported processing more than twice the estimated globally available quantity of POME.
Such discrepancies have fueled suspicion of systemic fraud in Asia, which hampers enforcement. “It is a global chain that ends here at a gas station and starts in, for example, Malaysia or Indonesia,” Bressers told NOS. “In the Netherlands, we can audit records and conduct inspections, but it is much harder to do that over there.”
Even within the Netherlands, oversight faces technical obstacles. POME and fresh palm oil cannot be distinguished chemically, making inspections nearly impossible once materials are blended. Used and unused cooking oils pose the same problem. “Our knowledge is growing, and it will have to keep growing in the coming period,” Bressers told NOS.
Natuur & Milieu remains skeptical about the NEa’s capacity to police the trade. “The NEa currently supervises only the companies based in the Netherlands,” Onnen told NOS. “We advocate for more collaboration and inspections earlier in the chain. European regulators must be able to conduct physical checks in countries outside Europe.” NL Times
---------
ENI's biofuel projects in the ‘breadbasket of Congo’ could threaten food security, investigation finds
The company claims it is using ‘degraded lands’, but Congo is in dire need of more homegrown food according to the UN.
Some fields are abandoned, others are being ploughed again by local families in Louvakou, in the Niari department of southwestern Congo. We fly a drone over rain-soaked lands, where until a year ago one of the agricultural projects of Eni Congo, a subsidiary of the Italian oil company Eni, was located.
The project was managed by the Luxembourg-based company Agri Resources, which had a concession of 29,000 hectares of land and experimented with the cultivation of castor oil, intended to supply Eni’s biofuel production in Italy.
“Agri Resources is not here anymore,” says Joseph Ngoma Koukebene, chief of the nearby Kibindouka village during our visit last November. The chief sits in his yard while telling us that the project has failed, apparently due to poor productivity.
Louvakou is one of three sites in the Republic of Congo where Eni began experimenting in 2022 with the cultivation of castor oil, a non-food crop to be grown “on degraded lands” as a “sustainable agri-feedstock” for biofuels, it said. These are vegetable oils that are not meant to cause deforestation nor compete with food production.
But while these projects are abandoned or still under evaluation, in May this year the company began producing agri-feedstock with other edible crops, such as sunflower and soy, which could have a negative impact on local food security.
What is an Italian oil company doing in Congo?
Eni plans to increase its global bio-refinery capacity from 1.65 million tonnes per year to 5 million tonnes of biofuels and over 2 million tonnes of Sustainable Aviation Fuels by 2030.
To date, Eni mainly produces biofuels using controversial palm oil by-products imported from Indonesia and Malaysia such as PFAD and POME, and Used Cooking Oils.
In order to produce alternative feedstocks and increase production, the company has launched agricultural projects in several countries since 2021, including Congo, Kenya, Mozambique and Ivory Coast.
“To address the availability of feedstock, we have several ongoing projects called agri-hubs, which are focused on producing vegetable oils grown on degraded lands,” Stefano Ballista, director of Enilive, another satellite company of Eni, tells us during a visit in June to a biorefinery in Porto Marghera, Venice.
According to Ballista, the company “aims to produce 700,000 tonnes of vegetable oils” globally by 2028.
In Congo, Eni had originally planned to produce 20,000 tonnes by 2023 from castor oil, brassica and safflower, reaching 250,000 tonnes by 2030. But things went differently: the castor oil project in Louvakou closed its doors, while two others, in the departments of Bouenza and Pool, are still in an experimental phase.
Meanwhile, at the end of May, Eni Congo inaugurated an agri-hub in Loudima, in the Bouenza district.
According to the local press, this pressing plant will produce 30,000 tonnes of vegetable oils destined for bio-refining in 2025, and is supplied by an agricultural production of 1.1 million tonnes of agricultural products such as soy and sunflower, grown on 15,000 hectares. Euro News
---------
Exclusive: Sweden-Malaysia, Moving Beyond Trade
In January 2025, Malaysia’s trade with the European Union (EU), which accounted for 7.1% of Malaysia’s total trade, decreased by 4.1% year-on-year to RM17.13 billion. This decline was driven by a 2.6% reduction in exports, totaling RM9.69 billion, primarily due to lower shipments of petroleum products, metal manufactures, and iron and steel products. However, export expansions were observed in palm oil and palm oil-based products, as well as chemicals and chemical products. Imports from the EU also saw a decline, dropping 6.1% to RM7.44 billion.
While overall trade with the EU bloc experienced a contraction, specific markets within the EU recorded growth. Notably, trade with Sweden surged by 23% to RM107 million in January 2025.
Amidst a global trade shake-up and the anticipation of the impending EU-Malaysia Free Trade Agreement (FTA), there is potential for a turnaround in Malaysia’s trade trajectory with the EU.
To gain deeper insights into the EU’s outlook on ASEAN and Malaysia, and the sudden surge in trade with Sweden, BusinessToday interviewed Sweden’s Ambassador to Malaysia, His Excellency Niklas Wiberg. Ambassador Wiberg, who is familiar with local culture and its warm seas, shared his views on the long-standing relationship between the two nations.
Sweden established diplomatic relations with Malaysia in 1958 with the appointment of Jens Malling, who also served as Ambassador to Indonesia, as envoy extraordinary and minister plenipotentiary to Kuala Lumpur. The first Swedish Embassy in Kuala Lumpur was inaugurated in 1969, headed by Count Axel Lewenhaupt, who simultaneously served as Ambassador to Thailand. Sweden’s first resident ambassador to Kuala Lumpur was appointed in 1976.
After more than 60 years of steady and strong growth, Ambassador Wiberg is keen to deepen this relationship further. Sweden is particularly focused on the “Twin Transition”—green energy and digital transformation—as a key area where advanced Swedish technology can benefit Malaysia and the wider ASEAN region.
In his recent interview with BusinessToday, Ambassador Wiberg emphasized Malaysia’s strategic importance as a hub for Swedish companies and highlighted the potential for increased cooperation in sustainable and innovative sectors. Approaching his one-year anniversary in Malaysia, Ambassador Wiberg expressed a positive outlook on the country, noting significant possibilities for enhanced cooperation, particularly facilitated by the potential EU-Malaysia FTA.
Sweden’s Investment in Malaysia Accelerates
The Ambassador emphasised that Malaysia remains one of Sweden’s most important trading partners in Southeast Asia. The favorable business climate, ease of doing business, and access to regional markets have attracted significant investment.
Swedish Foreign Direct Investment (FDI) in Malaysia has seen a substantial increase, rising from RM113 million in 2014 to RM1.43 billion in 2014. Wiberg attributed this growth to Malaysia’s stable business environment and its emergence as an attractive destination for companies seeking supply chain diversification and risk balancing in the current geopolitical landscape.
There are currently over 100 Swedish companies operating in Malaysia, many of whom have been present since the 1960s. These include traditional industrial giants like ABB, Atlas Copco, Volvo, IKEA, and Scania, as well as firms specialising in digital and green technologies, such as Ericsson.
A core theme of the discussion was the collaboration on sustainability. Ambassador Wiberg noted that Sweden has successfully decoupled economic growth from increased CO2 emissions and hopes to share this expertise with Malaysia.
The Ambassador highlighted Ericsson’s role in supporting Malaysia’s rapid deployment of 5G infrastructure, positioning the country as a leader in connectivity within the region. He emphasized that a robust, high-speed network is vital for Malaysia’s future competitiveness.
Renewable energy is a key area of interest for Swedish companies, particularly in solar energy storage and grid optimization. The Ambassador specifically mentioned Sarawak’s potential as a regional hub for green power and renewables, including green hydrogen production, leveraging its hydropower resources. Swedish companies are currently involved in projects like floating solar plants, waste-to-energy, and biomass initiatives in Sarawak.
While acknowledging Malaysia’s stated priorities in the National Energy Transition Roadmap and the New Industrial Master Plan, Wiberg noted that the main challenge lies in the rapid implementation of these goals. He pointed specifically to the slow progress in realizing Malaysia’s green transportation sector for buses, trucks, and cars.
“We invite Malaysian businesses and policymakers to engage with Sweden not only as a trade partner, but as a collaborative force for progress—one that shares Malaysia’s ambitions for a greener economy, resilient supply chains, and future-ready industries. Together, we can co-create solutions that are not only profitable, but also sustainable and transformative, ‘he added.
On the Malaysia EU-FTA, Ambassador Wiberg expressed hope for accelerated negotiations which has faced delays for over a decade. He believes the agreement would reinforce Malaysia’s position as a strategic investment location by providing a more credible and stable framework.
Wiberg said “Advancements of Free Trade Agreements, especially a Free Trade Agreement between EU and Malaysia, is critical to reduce trade barriers, improve market access, and foster sustainable, rules-based trade in the region.”
He also acknowledged the trend of European countries diversifying their trade relationships following difficulties in progressing with agreements with the United States. This trend has led Europe to look more closely at growth potentials in other parts of the world, including Southeast Asia and Malaysia. Business Today
Indonesia Courts EU Leaders in Brussels to Finalize Zero-Tariff Trade Deal
Jakarta. President Prabowo Subianto arrived in Brussels on Saturday for high-level talks with European Union leaders, including European Commission President Ursula von der Leyen, as Indonesia pushes to finalize a landmark trade deal aimed at eliminating tariffs on its exports to the bloc.
The visit follows stalled negotiations with the United States, where Indonesia faces a 32 percent “reciprocal tariff” imposed by former President Donald Trump.
Prabowo was accompanied by Chief Economic Minister Airlangga Hartarto -- who led the earlier US negotiations -- along with Investment Minister Rosan Roeslani, Cabinet Secretary Teddy Indra Wijaya, and Trade Minister Budi Santoso.
Airlangga said the Brussels trip is focused on concluding the long-delayed Indonesia-European Union Comprehensive Economic Partnership Agreement (CEPA), which has been under negotiation for nine years and is now at the ratification stage.
“This agreement marks a new milestone amid uncertainties in Indonesia-EU economic ties,” Airlangga said in a video statement broadcast Sunday by the State Secretariat’s YouTube channel.
Once ratified, CEPA will eliminate tariffs on a substantial share of bilateral trade. “Indonesian goods will enter the European market with zero percent tariffs,” Airlangga said, noting that the official signing is scheduled for the third quarter of 2025 in Jakarta.
He added that the deal comes as global economic and geopolitical dynamics shift: “Indonesia is set to become the EU’s strategic partner as we progress toward OECD membership. Indonesia’s economy will continue its strong growth, and they see Indonesia as ASEAN’s economic anchor -- the gateway to the region.”
Saturday’s visit marks Airlangga’s second trip to Brussels in two months, following a final round of CEPA negotiations last month, where both sides resolved remaining technical issues.
Airlangga’s announcement came after a meeting with European Commissioner for Trade and Economic Security Maroš Šefčovič in Brussels.
The EU is Indonesia’s fifth-largest trading partner, with bilateral trade reaching $30.1 billion in 2024. Indonesia posted a $4.5 billion trade surplus with the EU last year.
“Indonesia and the EU recognize this as a critical moment,” Airlangga said during his earlier visit. “Our key commodities complement rather than compete. Finalizing this agreement will jointly strengthen global supply chains.”
Zero Tariffs
Under CEPA, 80 percent of Indonesia’s exports to the EU are expected to enjoy zero tariffs within one to two years of implementation. Sectors set to benefit include labor-intensive industries such as footwear, textiles, and garments, as well as palm oil, fisheries, renewable energy, and electric vehicles.
During negotiations, the EU raised concerns over local content requirements (TKDN), automotive sector access, critical minerals, and investment incentives.
Indonesia, in turn, pressed for equitable treatment of its fishery exports, seeking parity with ASEAN neighbors such as Thailand and the Philippines. Airlangga said the EU had agreed to ensure a level playing field for Indonesian fishery products.
On the EU’s deforestation regulations, Commissioner Šefčovič assured Indonesian officials that special consideration would be given -- a pledge Airlangga said would safeguard Indonesia’s forest-based exports.
The Indonesian government estimates that CEPA could boost its exports to the EU by over 50 percent within three to four years by improving market access and removing key trade barriers. Jakarta Globe
---------
Trump’s Chaos Strategy Is Hurting His Allies -- Not Just His Rivals
Indonesia: A Partner Undermined
Indonesia, despite its historically friendly relationship with the US, has not been spared. Jakarta now faces a 32 percent tariff on key exports to the US, affecting palm oil, electronics, textiles, rubber goods, and footwear. These sectors form the backbone of Indonesia's export economy.
This is especially frustrating considering that Indonesia had proactively offered significant concessions to the US:
- Near-zero tariffs for US goods entering Indonesia.
- A $34 billion US product purchase agreement.
- Access to critical minerals like nickel, copper, and cobalt.
---------
ASEAN-EU partnership must be equal, fair, inclusive: Sugiono
Jakarta (ANTARA) - Foreign Minister Sugiono emphasized the importance of an equal, fair, and inclusive partnership between ASEAN and the European Union (EU) to maximize potential cooperation at the ASEAN-EU Post Ministerial Conference in Kuala Lumpur, Malaysia.
In a press release issued by the Ministry of Foreign Affairs in Jakarta on Friday, Sugiono lauded the progress of ongoing free trade agreement (FTA) negotiations between the EU and several ASEAN member states, including Indonesia.
The minister also highlighted the ongoing ASEAN-EU relationship in other sectors, such as sustainable development and the energy transition.
However, he said that in order to move forward, unilateral steps that could hurt ASEAN or the EU and do not reflect their relationship as strategic partners must be avoided.
“The big economic potential of ASEAN-EU can only be realized through mutually beneficial and non-discriminatory policies,” he said.
According to Sugiono, ASEAN-EU dialogue must continue to be maintained, including through the continuation of the Joint Working Group on Palm Oil, the Comprehensive Air Transport Agreement, and exploration of potential cooperation within the Indo-Pacific framework.
During the meeting with the EU, he cited the situation in Palestine and the Middle East and said that economic success would be difficult to achieve if global geopolitical uncertainty persists.
“Indonesia welcomes EU countries providing support to Palestine. However, the ongoing crisis in Gaza requires stronger collective action,” he added and expressed the hope for greater EU support for efforts to resolve the conflict in Gaza.
He said that the unresolved situation in Gaza and the lack of legal enforcement and accountability have eroded the credibility of the international legal order and could potentially ignite conflicts in other parts of the world. Antara News
---------
Rotterdam flooded with counterfeit biofuels, threatening Europe’s climate agenda
A surge of fraud tied to biobased fuels imported through Rotterdam is undermining Europe’s climate goals, according to environmental organizations and experts who say Dutch authorities have little understanding of the full scale of deception.
The Dutch Emissions Authority, or NEa, which oversees the origin and sustainability of biobased fuels in the Netherlands, admits it does not know how widespread the fraud is. “We don’t know what we don’t see,” NEa director Mark Bressers told NOS. “If we keep doing what we’re doing now, it won’t end well.”
Biobased fuels, made from materials such as plants, fats or food waste, are central to European targets to cut greenhouse gases. The European Union has pledged to reduce CO2 emissions by 90 percent by 2040 compared with 1990 levels, aiming for climate neutrality by 2050. In 2024, biobased fuels accounted for 14 percent of a typical fuel tank.
In the Netherlands, more than 90 percent of biobased fuels come from waste or residual streams considered highly sustainable. Used cooking oil and palm oil mill effluent, known as POME, are particularly valued because they qualify for European subsidies and count double toward fuel companies’ sustainability goals.
But the lucrative incentives also create what Bressers called strong motives for fraud throughout the supply chain, from suppliers of raw materials to processing facilities. “There are strong incentives to commit fraud,” Bressers told NOS.
Investigations by Transport & Environment, a European environmental organization, revealed that companies are falsifying documents and mislabeling products on a massive scale. Non-sustainable materials, including virgin cooking oil and fresh palm oil, are falsely labeled as waste streams like used cooking oil and POME. Some companies mix non-sustainable products with genuine waste and then forge certificates that are supposed to guarantee the sustainability and origin of the fuels.
Environmental groups say the impact on emissions is severe. “We are emitting far more CO2 than we think,” said Nienke Onnen of the Dutch group Natuur & Milieu. “We achieve climate gains only on paper, not in practice.”
So-called counterfeit biobased fuels can be as polluting as fossil fuels. In some cases, they are even worse because palm oil is associated with deforestation in Indonesia and Malaysia. This has led the European Union to partly ban palm oil in biobased fuels.
Yet much of the questionable material still reportedly enters Europe through the Netherlands. Less than 5 percent of the used cooking oil converted into fuel in the Netherlands originates domestically. The majority is imported, mainly from China. POME is not produced in the Netherlands at all and largely comes from Indonesia and Malaysia.
A 2024 analysis by Transport & Environment found that Malaysia exported three times more POME than it actually produced and imported. In 2023, the EU and United Kingdom together reported processing more than twice the estimated globally available quantity of POME.
Such discrepancies have fueled suspicion of systemic fraud in Asia, which hampers enforcement. “It is a global chain that ends here at a gas station and starts in, for example, Malaysia or Indonesia,” Bressers told NOS. “In the Netherlands, we can audit records and conduct inspections, but it is much harder to do that over there.”
Even within the Netherlands, oversight faces technical obstacles. POME and fresh palm oil cannot be distinguished chemically, making inspections nearly impossible once materials are blended. Used and unused cooking oils pose the same problem. “Our knowledge is growing, and it will have to keep growing in the coming period,” Bressers told NOS.
Natuur & Milieu remains skeptical about the NEa’s capacity to police the trade. “The NEa currently supervises only the companies based in the Netherlands,” Onnen told NOS. “We advocate for more collaboration and inspections earlier in the chain. European regulators must be able to conduct physical checks in countries outside Europe.” NL Times
---------
ENI's biofuel projects in the ‘breadbasket of Congo’ could threaten food security, investigation finds
The company claims it is using ‘degraded lands’, but Congo is in dire need of more homegrown food according to the UN.
Some fields are abandoned, others are being ploughed again by local families in Louvakou, in the Niari department of southwestern Congo. We fly a drone over rain-soaked lands, where until a year ago one of the agricultural projects of Eni Congo, a subsidiary of the Italian oil company Eni, was located.
The project was managed by the Luxembourg-based company Agri Resources, which had a concession of 29,000 hectares of land and experimented with the cultivation of castor oil, intended to supply Eni’s biofuel production in Italy.
“Agri Resources is not here anymore,” says Joseph Ngoma Koukebene, chief of the nearby Kibindouka village during our visit last November. The chief sits in his yard while telling us that the project has failed, apparently due to poor productivity.
Louvakou is one of three sites in the Republic of Congo where Eni began experimenting in 2022 with the cultivation of castor oil, a non-food crop to be grown “on degraded lands” as a “sustainable agri-feedstock” for biofuels, it said. These are vegetable oils that are not meant to cause deforestation nor compete with food production.
But while these projects are abandoned or still under evaluation, in May this year the company began producing agri-feedstock with other edible crops, such as sunflower and soy, which could have a negative impact on local food security.
What is an Italian oil company doing in Congo?
Eni plans to increase its global bio-refinery capacity from 1.65 million tonnes per year to 5 million tonnes of biofuels and over 2 million tonnes of Sustainable Aviation Fuels by 2030.
To date, Eni mainly produces biofuels using controversial palm oil by-products imported from Indonesia and Malaysia such as PFAD and POME, and Used Cooking Oils.
In order to produce alternative feedstocks and increase production, the company has launched agricultural projects in several countries since 2021, including Congo, Kenya, Mozambique and Ivory Coast.
“To address the availability of feedstock, we have several ongoing projects called agri-hubs, which are focused on producing vegetable oils grown on degraded lands,” Stefano Ballista, director of Enilive, another satellite company of Eni, tells us during a visit in June to a biorefinery in Porto Marghera, Venice.
According to Ballista, the company “aims to produce 700,000 tonnes of vegetable oils” globally by 2028.
In Congo, Eni had originally planned to produce 20,000 tonnes by 2023 from castor oil, brassica and safflower, reaching 250,000 tonnes by 2030. But things went differently: the castor oil project in Louvakou closed its doors, while two others, in the departments of Bouenza and Pool, are still in an experimental phase.
Meanwhile, at the end of May, Eni Congo inaugurated an agri-hub in Loudima, in the Bouenza district.
According to the local press, this pressing plant will produce 30,000 tonnes of vegetable oils destined for bio-refining in 2025, and is supplied by an agricultural production of 1.1 million tonnes of agricultural products such as soy and sunflower, grown on 15,000 hectares. Euro News
---------
Exclusive: Sweden-Malaysia, Moving Beyond Trade
In January 2025, Malaysia’s trade with the European Union (EU), which accounted for 7.1% of Malaysia’s total trade, decreased by 4.1% year-on-year to RM17.13 billion. This decline was driven by a 2.6% reduction in exports, totaling RM9.69 billion, primarily due to lower shipments of petroleum products, metal manufactures, and iron and steel products. However, export expansions were observed in palm oil and palm oil-based products, as well as chemicals and chemical products. Imports from the EU also saw a decline, dropping 6.1% to RM7.44 billion.
While overall trade with the EU bloc experienced a contraction, specific markets within the EU recorded growth. Notably, trade with Sweden surged by 23% to RM107 million in January 2025.
Amidst a global trade shake-up and the anticipation of the impending EU-Malaysia Free Trade Agreement (FTA), there is potential for a turnaround in Malaysia’s trade trajectory with the EU.
To gain deeper insights into the EU’s outlook on ASEAN and Malaysia, and the sudden surge in trade with Sweden, BusinessToday interviewed Sweden’s Ambassador to Malaysia, His Excellency Niklas Wiberg. Ambassador Wiberg, who is familiar with local culture and its warm seas, shared his views on the long-standing relationship between the two nations.
Sweden established diplomatic relations with Malaysia in 1958 with the appointment of Jens Malling, who also served as Ambassador to Indonesia, as envoy extraordinary and minister plenipotentiary to Kuala Lumpur. The first Swedish Embassy in Kuala Lumpur was inaugurated in 1969, headed by Count Axel Lewenhaupt, who simultaneously served as Ambassador to Thailand. Sweden’s first resident ambassador to Kuala Lumpur was appointed in 1976.
After more than 60 years of steady and strong growth, Ambassador Wiberg is keen to deepen this relationship further. Sweden is particularly focused on the “Twin Transition”—green energy and digital transformation—as a key area where advanced Swedish technology can benefit Malaysia and the wider ASEAN region.
In his recent interview with BusinessToday, Ambassador Wiberg emphasized Malaysia’s strategic importance as a hub for Swedish companies and highlighted the potential for increased cooperation in sustainable and innovative sectors. Approaching his one-year anniversary in Malaysia, Ambassador Wiberg expressed a positive outlook on the country, noting significant possibilities for enhanced cooperation, particularly facilitated by the potential EU-Malaysia FTA.
Sweden’s Investment in Malaysia Accelerates
The Ambassador emphasised that Malaysia remains one of Sweden’s most important trading partners in Southeast Asia. The favorable business climate, ease of doing business, and access to regional markets have attracted significant investment.
Swedish Foreign Direct Investment (FDI) in Malaysia has seen a substantial increase, rising from RM113 million in 2014 to RM1.43 billion in 2014. Wiberg attributed this growth to Malaysia’s stable business environment and its emergence as an attractive destination for companies seeking supply chain diversification and risk balancing in the current geopolitical landscape.
There are currently over 100 Swedish companies operating in Malaysia, many of whom have been present since the 1960s. These include traditional industrial giants like ABB, Atlas Copco, Volvo, IKEA, and Scania, as well as firms specialising in digital and green technologies, such as Ericsson.
A core theme of the discussion was the collaboration on sustainability. Ambassador Wiberg noted that Sweden has successfully decoupled economic growth from increased CO2 emissions and hopes to share this expertise with Malaysia.
The Ambassador highlighted Ericsson’s role in supporting Malaysia’s rapid deployment of 5G infrastructure, positioning the country as a leader in connectivity within the region. He emphasized that a robust, high-speed network is vital for Malaysia’s future competitiveness.
Renewable energy is a key area of interest for Swedish companies, particularly in solar energy storage and grid optimization. The Ambassador specifically mentioned Sarawak’s potential as a regional hub for green power and renewables, including green hydrogen production, leveraging its hydropower resources. Swedish companies are currently involved in projects like floating solar plants, waste-to-energy, and biomass initiatives in Sarawak.
While acknowledging Malaysia’s stated priorities in the National Energy Transition Roadmap and the New Industrial Master Plan, Wiberg noted that the main challenge lies in the rapid implementation of these goals. He pointed specifically to the slow progress in realizing Malaysia’s green transportation sector for buses, trucks, and cars.
“We invite Malaysian businesses and policymakers to engage with Sweden not only as a trade partner, but as a collaborative force for progress—one that shares Malaysia’s ambitions for a greener economy, resilient supply chains, and future-ready industries. Together, we can co-create solutions that are not only profitable, but also sustainable and transformative, ‘he added.
On the Malaysia EU-FTA, Ambassador Wiberg expressed hope for accelerated negotiations which has faced delays for over a decade. He believes the agreement would reinforce Malaysia’s position as a strategic investment location by providing a more credible and stable framework.
Wiberg said “Advancements of Free Trade Agreements, especially a Free Trade Agreement between EU and Malaysia, is critical to reduce trade barriers, improve market access, and foster sustainable, rules-based trade in the region.”
He also acknowledged the trend of European countries diversifying their trade relationships following difficulties in progressing with agreements with the United States. This trend has led Europe to look more closely at growth potentials in other parts of the world, including Southeast Asia and Malaysia. Business Today
July 11, 2025
Indonesia creates new palm oil giant
Indonesia handed over nearly 400,000 hectares of confiscated oil palm plantations to Agrinas Palma Nusantara on Wednesday, giving the new state-owned company a massive land bank that could make it one of the world’s largest oil palm producers.
The plantations were seized by the government’s forestry task force from companies that violate the country’s laws, Reuters reported. The government has not disclosed their names, but there are more than 230 of them.
Agrinas is a fast-growing palm oil start-up created in January by the administration of President Prabowo Subianto through the restructuring of an infrastructure services firm. As of March, Agrinas had been managing about 221,000 hectares of plantations. The task force transferred the rest of the land to the firm yesterday. With the addition of the new plantations, the total area under Agrinas’ management will exceed 833,000 hectares. The company’s current production level is 6,000 tons of raw material daily.
Defense Minister Sjafri Sjamsoeddine, who heads the forestry task force, said authorities have so far confiscated more than 2 million hectares of illegal plantations in forested areas across the country. He said the task force aims to seize a total of 3 million hectares of land by August, which will either be preserved for oil palm and other plantations or reforested.
It was previously reported that Indonesian palm oil exports to the United States could decline due to the threat of a 32% U.S. tariff on Indonesian goods. UKR Agraconsult
---------
Confiscated palm oil plantations to achieve legal certainty in the Indonesian palm oil industry
The Forest Area Control Taskforce has confiscated an estimated 1.2 million hectares of oil palm plantations in nine provinces in Sumatra, Kalimantan and Sulawesi. The plantations were then put under the management of PT Agrinas, a state-owned enterprise set up in February specially to own and operate the plantations.
It was a great wonder though that the bold law enforcement measure did not cause any uproar among the business community. Not a single lawsuit was filed to counter the government measure. Even the Indonesia Palm Oil Association (Gapki) kept silent.
Expectation is now high that Agrinas will serve as a breakthrough and solution to address legal uncertainties, particularly on overlapped land status which has been haunting many palm oil companies.
The government's strong policies to improve palm oil governance and reduce deforestation have led most palm oil producers to adopt a stringent sustainability standard and a no deforestation commitment.
Therefore, in order to ensure that our palm oil production fully meets international sustainable standards the government needs to address the misalignment in the understanding about what is legally and environmentally defined as no-deforestation.
In this context, the Agrinas takeover of the confiscated plantations should become the opportunity to amend the existing national forest land use and spatial planning to address persistent allegations against palm oil as the main cause of deforestation.
Efforts to achieve fully sustainable palm oil production have always been hindered by the issues of overlapping land-title administration with forest areas.
Agrinas’ success in managing the palm oil plantations sustainably will be a milestone for the leadership of the Prabowo Subianto administration in resolving the very complex and protracted land use issues and legal uncertainty, thereby protecting the palm oil industry as a strategic industry. Edi Suhardi/ LinkedIn
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Indonesia's plantation crackdown raises regulatory risks for Malaysian firms — CIMB Securities
KUALA LUMPUR (July 10): Malaysian plantation firms face growing regulatory risks as Indonesia seizes land lacking forestry permits or in violation of land-use law, CIMB Securities flagged.
The seizures are negative for upstream plantation companies with estates in Indonesia, such as SD Guthrie Bhd (KL:SDG), Kuala Lumpur Kepong Bhd (KL:KLK), IOI Corp Bhd (KL:IOICORP) and Genting Plantations Bhd (KL:GENP), as they signal increasing regulatory risks, said the house in a note on Thursday.
The move may also trigger heightened environment, social and governance (ESG) scrutiny from investors — particularly over land legality, deforestation risks, and certification compliance — while raising concerns over future regulatory shifts and higher risk premiums for companies with exposure in Indonesia.
“Our conversations with Malaysian plantation companies under coverage suggest that the potential financial impact of Indonesia’s forestry land status issue on their planted oil palm estates is unlikely to be significant, based on their initial assessments. However, these companies are still seeking further clarity, indicating that regulatory risks persist for their Indonesian operations, ”CIMB said in a note to clients.
Genting Plantations made a RM66 million provision in the first quarter ended March 31, 2025 to account for potential income loss from portions of its Indonesian estates that had been demarcated as forest land by the Indonesian government under a recent regulation, according to CIMB.
CIMB’s analysis of Indonesia’s Minister of Forestry Decree No 36/2025 — which lists oil palm firms operating illegally in forest areas without permits — shows the companies fall into two groups: those under the legalisation process after applying before the Nov 2, 2023 deadline, and those rejected for non-compliance.
The research house found that Indonesian subsidiaries of Genting Plantations, KLK, and SD Guthrie are listed in the decree. The Edge
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Brazil urges Indonesia to join Global Biofuels Alliance
Jakarta: Brazil is pushing to bring Indonesia, the world’s largest palm oil producer, into the Global Biofuels Alliance in a bid to expand global cooperation on sustainable biofuels. The call came during a meeting between Brazilian President Luiz Inácio Lula da Silva and Indonesian President Prabowo Subianto in Brasilia on Wednesday, reports JakartaGlobe.ID.
In a joint statement released after the talks, both leaders acknowledged their countries as leading producers of bioenergy and expressed a shared commitment to promoting sustainable fuel alternatives. The statement emphasized their intent to work together in international platforms like the G20 and BRICS to support the global transition to cleaner energy.
“President Lula invited Indonesia to join the Global Biofuels Alliance, highlighting the potential for deeper cooperation in renewable energy,” the statement said.
Formed in 2023 under India’s G20 presidency, the Global Biofuels Alliance now includes 29 countries such as the United States, and 14 international organizations, including the World Bank and the Indonesia-based Council of Palm Oil Producing Countries (CPOPC). The alliance helps its members by offering technical guidance and support for national biofuel programs.
Indonesia, which relies heavily on palm oil to produce biodiesel, already mandates a 40 percent palm oil blend in its biodiesel fuel—commonly known as B40. The country plans to increase this to 50 percent in 2026. Brazil, meanwhile, is a top ethanol producer, using sugarcane as its primary feedstock. Though Indonesia also makes ethanol from sugarcane, its production remains far below Brazil’s level.
At a joint press briefing, President Prabowo praised Brazil’s progress in the biofuel sector.
“You’re setting a great example with how you’ve adopted biofuels and advanced agricultural innovation,” he said.
Prabowo also revealed that Brazil had agreed to let Indonesian technical teams visit the country to study its biofuel technologies. He reaffirmed Indonesia’s goal of reaching 100 percent renewable energy by 2040, adding that some experts believe the target could be met even earlier.
“We are impressed by your achievements in biofuel development,” Prabowo added.
According to Brazilian government data, the country set a new record in 2023 by producing nearly 43 billion liters of ethanol and biodiesel combined, including more than 7.5 billion liters of biodiesel. Meanwhile, Indonesia’s Energy Ministry reported that the country distributed at least 4.3 million kiloliters of B40 fuel during the first four months of 2025. Bioenergy Times
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MPOC’s Global Trade Mission Spurs RM188.5 Million In Potential Palm Oil Deals
The Malaysian Palm Oil Council’s (MPOC) flagship Trade Networking Visit 2025 has generated an estimated RM188.5 million in potential sales through intensive business engagements and strategic outreach.
Held from July 8 to 10 in Kuala Lumpur, the annual event attracted 56 international buyers from 23 countries across Sub-Saharan Africa, the Middle East and North Africa (MENA), ASEAN, Eastern Europe and Central Asia, regions playing a growing role in Malaysia’s palm oil export strategy.
The centrepiece of the programme was the BizMatch session on July 10, where over 400 pre-scheduled meetings connected 25 leading Malaysian suppliers with foreign buyers, fostering new commercial ties and reinforcing confidence in Malaysia’s palm oil sector.
“The positive response to BizMatch confirms the value of targeted market engagement. These regions remain central to our diversification efforts as global demand continues to shift,” said MPOC Chief Executive Officer Belvinder Sron.
Sron added that delegates also visited Sime Darby Plantation’s Eco Garden on Carey Island to observe sustainable cultivation practices and toured Kuala Lumpur Kepong Bhd’s Alami Edible Oils’ downstream facilities, showcasing Malaysia’s integrated supply chain and commitment to quality.
An industry dialogue with Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani offered further insight into policy priorities, market trends and opportunities for bilateral cooperation.
Participants praised the event for its impact and depth of engagement, prompting MPOC to consider expanding the initiative.
“We are exploring the possibility of holding similar programmes more regularly in high-potential markets,” Sron added.
As demand for sustainable, traceable palm oil grows, MPOC reaffirmed its commitment to advancing market access and building long-term global partnerships. Business Today
Indonesia creates new palm oil giant
Indonesia handed over nearly 400,000 hectares of confiscated oil palm plantations to Agrinas Palma Nusantara on Wednesday, giving the new state-owned company a massive land bank that could make it one of the world’s largest oil palm producers.
The plantations were seized by the government’s forestry task force from companies that violate the country’s laws, Reuters reported. The government has not disclosed their names, but there are more than 230 of them.
Agrinas is a fast-growing palm oil start-up created in January by the administration of President Prabowo Subianto through the restructuring of an infrastructure services firm. As of March, Agrinas had been managing about 221,000 hectares of plantations. The task force transferred the rest of the land to the firm yesterday. With the addition of the new plantations, the total area under Agrinas’ management will exceed 833,000 hectares. The company’s current production level is 6,000 tons of raw material daily.
Defense Minister Sjafri Sjamsoeddine, who heads the forestry task force, said authorities have so far confiscated more than 2 million hectares of illegal plantations in forested areas across the country. He said the task force aims to seize a total of 3 million hectares of land by August, which will either be preserved for oil palm and other plantations or reforested.
It was previously reported that Indonesian palm oil exports to the United States could decline due to the threat of a 32% U.S. tariff on Indonesian goods. UKR Agraconsult
---------
Confiscated palm oil plantations to achieve legal certainty in the Indonesian palm oil industry
The Forest Area Control Taskforce has confiscated an estimated 1.2 million hectares of oil palm plantations in nine provinces in Sumatra, Kalimantan and Sulawesi. The plantations were then put under the management of PT Agrinas, a state-owned enterprise set up in February specially to own and operate the plantations.
It was a great wonder though that the bold law enforcement measure did not cause any uproar among the business community. Not a single lawsuit was filed to counter the government measure. Even the Indonesia Palm Oil Association (Gapki) kept silent.
Expectation is now high that Agrinas will serve as a breakthrough and solution to address legal uncertainties, particularly on overlapped land status which has been haunting many palm oil companies.
The government's strong policies to improve palm oil governance and reduce deforestation have led most palm oil producers to adopt a stringent sustainability standard and a no deforestation commitment.
Therefore, in order to ensure that our palm oil production fully meets international sustainable standards the government needs to address the misalignment in the understanding about what is legally and environmentally defined as no-deforestation.
In this context, the Agrinas takeover of the confiscated plantations should become the opportunity to amend the existing national forest land use and spatial planning to address persistent allegations against palm oil as the main cause of deforestation.
Efforts to achieve fully sustainable palm oil production have always been hindered by the issues of overlapping land-title administration with forest areas.
Agrinas’ success in managing the palm oil plantations sustainably will be a milestone for the leadership of the Prabowo Subianto administration in resolving the very complex and protracted land use issues and legal uncertainty, thereby protecting the palm oil industry as a strategic industry. Edi Suhardi/ LinkedIn
---------
Indonesia's plantation crackdown raises regulatory risks for Malaysian firms — CIMB Securities
KUALA LUMPUR (July 10): Malaysian plantation firms face growing regulatory risks as Indonesia seizes land lacking forestry permits or in violation of land-use law, CIMB Securities flagged.
The seizures are negative for upstream plantation companies with estates in Indonesia, such as SD Guthrie Bhd (KL:SDG), Kuala Lumpur Kepong Bhd (KL:KLK), IOI Corp Bhd (KL:IOICORP) and Genting Plantations Bhd (KL:GENP), as they signal increasing regulatory risks, said the house in a note on Thursday.
The move may also trigger heightened environment, social and governance (ESG) scrutiny from investors — particularly over land legality, deforestation risks, and certification compliance — while raising concerns over future regulatory shifts and higher risk premiums for companies with exposure in Indonesia.
“Our conversations with Malaysian plantation companies under coverage suggest that the potential financial impact of Indonesia’s forestry land status issue on their planted oil palm estates is unlikely to be significant, based on their initial assessments. However, these companies are still seeking further clarity, indicating that regulatory risks persist for their Indonesian operations, ”CIMB said in a note to clients.
Genting Plantations made a RM66 million provision in the first quarter ended March 31, 2025 to account for potential income loss from portions of its Indonesian estates that had been demarcated as forest land by the Indonesian government under a recent regulation, according to CIMB.
CIMB’s analysis of Indonesia’s Minister of Forestry Decree No 36/2025 — which lists oil palm firms operating illegally in forest areas without permits — shows the companies fall into two groups: those under the legalisation process after applying before the Nov 2, 2023 deadline, and those rejected for non-compliance.
The research house found that Indonesian subsidiaries of Genting Plantations, KLK, and SD Guthrie are listed in the decree. The Edge
---------
Brazil urges Indonesia to join Global Biofuels Alliance
Jakarta: Brazil is pushing to bring Indonesia, the world’s largest palm oil producer, into the Global Biofuels Alliance in a bid to expand global cooperation on sustainable biofuels. The call came during a meeting between Brazilian President Luiz Inácio Lula da Silva and Indonesian President Prabowo Subianto in Brasilia on Wednesday, reports JakartaGlobe.ID.
In a joint statement released after the talks, both leaders acknowledged their countries as leading producers of bioenergy and expressed a shared commitment to promoting sustainable fuel alternatives. The statement emphasized their intent to work together in international platforms like the G20 and BRICS to support the global transition to cleaner energy.
“President Lula invited Indonesia to join the Global Biofuels Alliance, highlighting the potential for deeper cooperation in renewable energy,” the statement said.
Formed in 2023 under India’s G20 presidency, the Global Biofuels Alliance now includes 29 countries such as the United States, and 14 international organizations, including the World Bank and the Indonesia-based Council of Palm Oil Producing Countries (CPOPC). The alliance helps its members by offering technical guidance and support for national biofuel programs.
Indonesia, which relies heavily on palm oil to produce biodiesel, already mandates a 40 percent palm oil blend in its biodiesel fuel—commonly known as B40. The country plans to increase this to 50 percent in 2026. Brazil, meanwhile, is a top ethanol producer, using sugarcane as its primary feedstock. Though Indonesia also makes ethanol from sugarcane, its production remains far below Brazil’s level.
At a joint press briefing, President Prabowo praised Brazil’s progress in the biofuel sector.
“You’re setting a great example with how you’ve adopted biofuels and advanced agricultural innovation,” he said.
Prabowo also revealed that Brazil had agreed to let Indonesian technical teams visit the country to study its biofuel technologies. He reaffirmed Indonesia’s goal of reaching 100 percent renewable energy by 2040, adding that some experts believe the target could be met even earlier.
“We are impressed by your achievements in biofuel development,” Prabowo added.
According to Brazilian government data, the country set a new record in 2023 by producing nearly 43 billion liters of ethanol and biodiesel combined, including more than 7.5 billion liters of biodiesel. Meanwhile, Indonesia’s Energy Ministry reported that the country distributed at least 4.3 million kiloliters of B40 fuel during the first four months of 2025. Bioenergy Times
---------
MPOC’s Global Trade Mission Spurs RM188.5 Million In Potential Palm Oil Deals
The Malaysian Palm Oil Council’s (MPOC) flagship Trade Networking Visit 2025 has generated an estimated RM188.5 million in potential sales through intensive business engagements and strategic outreach.
Held from July 8 to 10 in Kuala Lumpur, the annual event attracted 56 international buyers from 23 countries across Sub-Saharan Africa, the Middle East and North Africa (MENA), ASEAN, Eastern Europe and Central Asia, regions playing a growing role in Malaysia’s palm oil export strategy.
The centrepiece of the programme was the BizMatch session on July 10, where over 400 pre-scheduled meetings connected 25 leading Malaysian suppliers with foreign buyers, fostering new commercial ties and reinforcing confidence in Malaysia’s palm oil sector.
“The positive response to BizMatch confirms the value of targeted market engagement. These regions remain central to our diversification efforts as global demand continues to shift,” said MPOC Chief Executive Officer Belvinder Sron.
Sron added that delegates also visited Sime Darby Plantation’s Eco Garden on Carey Island to observe sustainable cultivation practices and toured Kuala Lumpur Kepong Bhd’s Alami Edible Oils’ downstream facilities, showcasing Malaysia’s integrated supply chain and commitment to quality.
An industry dialogue with Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani offered further insight into policy priorities, market trends and opportunities for bilateral cooperation.
Participants praised the event for its impact and depth of engagement, prompting MPOC to consider expanding the initiative.
“We are exploring the possibility of holding similar programmes more regularly in high-potential markets,” Sron added.
As demand for sustainable, traceable palm oil grows, MPOC reaffirmed its commitment to advancing market access and building long-term global partnerships. Business Today
July 09, 2025
EU Lawmakers Reject EUDR’s Country Risk System in New Setback to Deforestation Regulation
Lawmakers in the European Parliament voted on Wednesday to reject a benchmarking system categorizing countries by their level of deforestation risk, marking a potential new setback for the new EU Deforestation Regulation (EUDR), aimed at ensuring that products imported to or exported from EU markets no longer contribute to deforestation and forest degradation globally, including concerns that the law could again be delayed.
The EUDR was initially introduced by the EU Commission in November 2021, with proposals aimed at effectively banning deforestation-linked products on the EU market, and establishing strong compliance requirements for companies providing or utilizing key commodities and products such as palm oil, beef, timber, coffee, cocoa, rubber and soy, in addition to some of their derived products, such as leather, chocolate, tires, or furniture.
Under the new rules, companies that want to place relevant products on the EU market, or export them, will face mandatory due diligence rules, including a requirement to trace the products back to the plot of land where it was produced, to prove that the products were produced on land that was not subject to deforestation after 2020, and are compliant with all relevant applicable laws in force in the country of production.
The regulation includes a benchmarking system that classifies countries according to the level of risk of producing commodities covered by the scope of EUDR that are not deforestation-free. The classification system impacts the compliance obligations under the regulation, with sourcing from low-risk countries, for example, allowing for more simplified due diligence requirements from operators and traders.
A motion brought by the European People’s Party (EPP), and subsequently approved by a majority of MEPs, however, argued that the benchmarking system suffered from a series of flaws, including the use of outdated data that “does not accurately reflect the current realities in the countries concerned,” and that it “fails to consider key real-world factors, most notably current land-use dynamics and forest degradation,” which would result in some member stated being placed in higher risk categories.
The motion also stated that the inclusion of only three risk categories – low, standard, and high risk – by the EUDR was “insufficient to adequately differentiate between countries with vastly different levels of deforestation risk.” Notably, the EPP had succeeded in integrating a new “no-risk” category in Parliament’s negotiating position on the EUDR last year, although the category did not make it into an agreement between Parliament and the European Council. The agreement did, however, delay the implementation of the law by a year, with the EUDR now becoming applicable for large companies in December 2025, and for micro- and small enterprises in June 2026. The Commission had proposed the delay, noting that “several global partners have repeatedly expressed concerns about their state of preparedness,” and adding that even within the EU, “the state of preparations amongst stakeholders in Europe is also uneven.”
In a statement released after the motion passed, the EPP again called for the introduction of a “no risk” category in the EUDR.
Alexander Bernhuber MEP, who tabled the objection on behalf of the EPP, said:
“The Commission’s list misrepresents the situation in many countries and creates unnecessary burdens for farmers, foresters, and industry. The EPP Group remains committed to responsible forest stewardship and to policies that combine environmental protection with workable solutions for those who care for and rely on forests. Therefore, a new ‘no risk’ category must be introduced for countries with stable or expanding forest areas. This is how we make EU rules more fair and effective.”
Environmental groups expressed concern that the vote could further set back action on deforestation. In a statement released following the vote, Greenpeace noted that “it is virtually impossible that the Commission could produce a new methodology for classification of countries ahead of 30 December 2025,” which would again cause the regulation’s implementation to be delayed.
Greenpeace Forests Campaigner Sigrid Deters said:
“We are aware that the Commission’s regulation has shortcomings, but the Commission has committed to review it in 2026. In the meantime, the EUDR must be applied by operators and enforced by competent authorities, according to the agreed schedule.” ESG Today
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Indonesia says EU deforestation law is still unworkable
Jakarta’s push for further postponement comes as EU countries call for ‘onerous’ rules to be simplified
Indonesia has asked Brussels to further delay its landmark deforestation law, adding to mounting pressure from EU governments that have demanded policymakers cut back “onerous” requirements on producers.
The controversial ban on products coming from deforested land being sold in the bloc has been heavily criticised by several of the EU’s trading partners including Brazil and the US, which argue it will damage small producers and make trade too expensive.
Muhammad Takdir, Indonesia’s deputy ambassador to the EU, said the law — which has already been delayed until the end of this year — should be further postponed to 2028 to allow more time to prepare, and that no fines should be charged in the intervening period. He also said revisions were needed, particularly for small farmers.
“Our big companies have the ability to adapt to the implementation. But there are 8mn smallholdings, 17mn smallholders if you count families. They cannot navigate the regulation. They will be sidelined from the supply chains,” Takdir told the Financial Times.
Many farmers would not be able to provide the necessary geolocation data for their plantations, as required by the law, because they are often in areas with no mobile phone reception, he said.
The law is an important part of the bloc’s ambitious Green Deal climate law, first announced in 2019 amid a wave of environmental sentiment that swept Green parties across Europe to some of their best ever election results.
However, the bloc’s waning economy and the return of Donald Trump to the White House have prompted a surge in popularity for rightwing parties that say the EU’s green agenda is unviable and a threat to growth.
Under pressure from both EU member states and trading partners, the European Commission agreed in October to postpone the implementation of the deforestation law until the end of 2025.
But several industries and countries are saying that this is still not long enough to help them prepare for the requirements, which include logging geolocation data for where the commodity was grown that can then be cross-checked against satellite maps.
“Last year we made a case that [the law] was not ready and not much has changed,” a senior EU diplomat said.
The law covers seven commodities — cattle, cocoa, coffee, oil palm, rubber, soya and wood — and categorises countries, including those within the bloc, as either at low, standard or high risk of deforestation. Products from low-risk countries will not be subject to the full customs checks.
In a letter to the commission on Monday, agricultural ministers from 18 member states said “the requirements imposed on farmers, forest owners and operators remain onerous and not justified for countries with an insignificant risk of deforestation”.
EU lawmakers also approved a motion on Wednesday to introduce a “no risk” category aimed at exempting EU countries from the rules.
“The commission’s current approach imposes a blanket burden instead of targeting real risk,” said Christine Schnieder, a conservative German MEP who has led negotiations on the deforestation law.
Takdir said some countries were preparing to dispute the issue at the World Trade Organization. India, Colombia and others have already asked for debates in Geneva but have not filed a formal case yet.
He also said Indonesia was still hoping to conclude a trade deal with Brussels by the end of the year despite differences over some EU regulations and Jakarta’s export controls on nickel.
Meanwhile, the US is putting pressure on the EU to exempt it from the law as part of its “framework” trade deal to reduce tariffs on the bloc.
The EU has already categorised the US — and all its own members — as “low risk”, which means there will be fewer due diligence checks on US products. Financial Times
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Malaysia’s EUDR Classification Undermines Country’s Deforestation Efforts
Malaysian exporters now face more due diligence checks and heightened scrutiny from EU authorities when shipping their products to Europe due to its ‘standard’ risk classification.
On 22 May 2025, the European Commission announced the outcome of its ‘country benchmarking’ assessments under the EU Deforestation Regulation (EUDR), which comes into force at the end of this year. The system categorises 194 countries as either ‘low’, ‘standard’ or ‘ high’ risk, depending on the EU Commission’s view of the risk of deforestation they pose.
These risk categorisations are not merely symbolic: they have direct economic and reputational consequences. A ‘low’ risk classification for Malaysia would have simplified compliance obligations for our exporters by enabling streamlined due diligence and reporting procedures. Instead, Malaysian exporters now face more due diligence checks and heightened scrutiny from EU authorities when shipping their products to Europe.
So, it is not surprising that the EU Commission has been roundly criticised for the apparent favouritism it has shown. It has made a political decision rather than relying on the underlying science or the available empirical evidence.
The Commission’s assessment methodology was flawed in three key areas. First, from a purely Malaysian perspective, the significant progress our palm oil producers have made in halting deforestation has been overlooked. The latest satellite data clearly shows which countries have been successful in protecting their untouched natural forests, yet the EU has chosen to rely on outdated data. Article 29(3) of the EUDR requires the EU Commission to use the “latest scientific evidence” in its benchmarking assessments. However, it has used data from 2015 to 2020, as reported in the FAO’s 2020 Forest Resources Assessment. Given the importance of these assessments for its trade partners, the better option would have been to wait for the FAO’s upcoming 2025 Forest Resources Assessment, which will be available in late October this year and features updated data for 2020-2025.
Second, the EU Commission has chosen to look at the FAO’s Forest Resources Assessment data on ‘total forest cover’ instead of ‘naturally regenerating’ or ‘primary’ forest cover in its calculations. In doing so, it has employed a methodology that favours its member states over lower-priority, third-party countries. Article 29(3)(a) of the EUDR requires that benchmarking assessments be based on “quantitative rates of deforestation and forest degradation” but FAO’s ‘total forest cover’ dataset omits the concept of ‘forest degradation’. Therefore, the benchmarking ignores one of the EUDR’s central regulatory requirements.
Malaysia has suffered as a result. Our current deforestation rates are similar across both datasets. Conversely, other countries — notably certain heavily forested EU member states — score well on ‘ total forest’ loss but poorly on ‘primary forest’ loss. Take Sweden, for example.
Looking at ‘total forest loss’ data only, Sweden records no change. Looking at the ‘naturally regenerating forest’ data, it shows a loss of 137,200 ha per year - twice the amount of Malaysia.
This is problematic for EUDR as a whole. Primary forests are nature’s marvels - home to ecosystems of enormous complexity and with soils that are exceptional stores of carbon. They take millennia to develop, yet can be destroyed in hours. Yet, the EU has failed to take these into account in its assessments.
It also creates a suspicion of favouritism. Under the Commission’s methodology, all EU countries are deemed ‘low’ risk despite some having weaker records on primary forest degradation.
The third flaw is the Commission’s use of ‘absolute’ and ‘relative’ deforestation thresholds. Countries with a yearly deforestation rate below 0.2% and an absolute annual forest loss of less than 70,000 ha are classified as ‘low’ risk. Yet, the Commission has produced no scientific justification for these thresholds. For instance, the US narrowly scraped into the ‘low’ risk category with an absolute forest loss rate of 60,000 ha per year.
The EUDR is a laudable initiative that Malaysia strongly supports; however, methodological shortcomings raise questions about fairness, particularly for third countries that are of less immediate value to the EU. If the EU Commission wants a regulation that is effective and workable, it needs to rethink its methodologies. Failing that, countries will question its purpose. Palm Sphere/ MPOC
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Indonesia's B50 program to help support palm oil price
Jakarta (ANTARA) - Deputy Minister of Energy and Mineral Resources, Yuliot Tanjung, has said that the 50 percent biodiesel mix or B50 program can help prevent a decline in the prices of crude palm oil (CPO).
“This is part of the national policy that can provide benefits and support the stability of CPO prices,” he added at a discussion on “Promoting Sustainability of Upstream Oil and Gas Industry for Energy Self-Sufficiency” in Jakarta on Tuesday.
According to Tanjung, currently, there are indications of CPO oversupply or excessive CPO stocks in the country. In addition, globally, CPO prices are also projected to decline, he noted.
If CPO prices decline, palm oil farmers would be affected the most, he said.
Domestic CPO prices have experienced a downward trend, based on the Crude Palm Oil Reference Price (HR CPO) issued by the Ministry of Trade. In April, the price of HR CPO stood at US$961.54 per metric ton.
The price fell in May to US$924.46 per metric ton, and then fell again in June to US$856.38 per metric ton. It rose in July to US$877.89 per metric ton.
B50 biodiesel consists of a mixture of 50 percent biofuel and 50 percent conventional diesel.
Agriculture Minister Andi Amran Sulaiman earlier said the government is planning to divert 5.3 million tons of CPO exports for the B50 program. Data shows Indonesia exported 26 million tons of CPO in 2024, he added.
He expressed the hope that the diversion of 5.3 million tons of Indonesian CPO will cause its prices to increase in the global market.
The Indonesian government is seeking to launch the B50 program in 2026. Currently, the government is promoting B40, which consists of 40 percent biofuel and 60 percent conventional diesel. Antara News
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Is palm oil bad for your health? Here’s what the science says
Palm oil is among the most affordable and versatile edible oils globally, valued for its long shelf-life and neutral taste. Most packaged foods, including potato chips, biscuits, ice cream, and chocolates use palm oil.
A food and beverage industry association has said that the use of labels such as “palm oil free” or “no palm oil” are misleading, and rooted more in marketing than science.
The Indian Food and Beverage Association (IFBA) said in a statement issued on Tuesday that palm oil has been consumed by Indians since the the 19th century, and that the oil has a well-rounded fatty acid profile.
Palm oil is among the most affordable and versatile edible oils globally, valued for its long shelf-life and neutral taste. Most packaged foods, including potato chips, biscuits, ice cream, and chocolates use palm oil.
Fats that remain solid or semi-solid at room temperatures — including palm oil, coconut oil, ghee, butter, and lard — are high in saturated fatty acids (See Chart).
According to the Indian Dietary Guidelines, prepared by the Indian Council of Medical Research (ICMR), coconut oil and ghee have the highest SFA content, around 90 grams and 70 grams respectively per 100 grams of oil. Palmolein, the liquid part of palm oil, contains around 40 grams of SFA and 40 grams of MUFA, with the rest being PUFA. Mustard, safflower, and sunflower have the lowest SFA content, less than 10 grams per 100 gram of oil.
…But it isn’t hydrogenated
Apart from these three fatty acids, trans fatty acids (TFA) are produced during the hydrogenation of liquid vegetable oils. The addition of hydrogen atoms into such oils converts liquid oil to semi-solid, and increases their shelf-life.
Studies have shown that the consumption of TFAs can increase the risk of diabetes, breast cancer, colon cancer, pre-eclampsia (high blood pressure during pregnancy), and disorders of the nervous system.
ince palm oil is semi-solid at room temperature, it does not need to be hydrogenated. In fact, the rise in popularity of palm oil from the 1990s onwards was driven by health concerns about hydrogenated oils.
Most oils also contain minor components such as tocopherols and sterols — naturally occurring antioxidants that give oils their distinct flavours. Palm oil contains tocotrienols, which help lower blood cholesterol levels.
Mix of oils, in moderation
According to the ICMR’s guidelines, a mix of oils that are low in SFA and high in PUFA should ideally be used. This would mean avoiding palm oil as much as possible.
But the alternatives that are often pushed by influencers are not necessarily much healthier. Some of them swear by ghee and coconut oil, which have an even higher content of SFAs.
At the end of the day, an individual’s health outcomes are determined by a number of factors that go beyond just the type of oil consumed.
* The ICMR’s guidelines suggest that consumption of oil should be limited to between 20 and 50 grams (four to 10 teaspoons) per person per day. Those living sedentary lifestyles should stick to the lower end of this range (20-30 grams).
* The guidelines recommend getting most of one’s fat requirement from nuts and seeds such as walnuts, flaxseed, chia seeds, soyabean, and fenugreek seeds. Marine fish, other sea foods, and eggs are also good natural sources of PUFA, they say.
* The ICMR recommends that oils should not be reheated. This is because once heated, PUFAs in the oil start to oxygenate, and form harmful compounds that increase the risk of cardiovascular disease and cancers. If one does have to reuse oil, such oil should not be used for high-temperature cooking, and should be consumed within a day or two. Indian Express
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Why Chefs Are Ditching Seed Oils
As concerns about sustainability and wellness grow, chefs are reevaluating their use of seed oils—and exploring cleaner, more conscious alternatives.
Modern chefs understand more about food than ever before. And while some ingredients stand the test of time, increasingly, others no longer have a seat at the table.
Why Seed Oils Are Under Fire
Since the late 1990s, seed oils—such as canola, sunflower, peanut, and corn oil—have dominated most commercial kitchens. They largely replaced higher-fat ingredients like margarine and lard, praised for being lower in trans fats and having a higher smoke point. But more recent studies have raised concerns: seed oils are high in omega-6 fatty acids, which have been linked to inflammation and autoimmune conditions.
The growing body of information—and conflicting opinions—around seed oils has led some chefs to rethink their use in the kitchen. In April, Chef Daniel Humm of Eleven Madison Park in New York City announced that his team would be replacing seed oil with algae oil.
“Algae oil was the first product that really made us consider making a change like this,” Humm told Fine Dining Lovers. “We aren’t following a trend, but creating a new standard.”
How Daniel Humm Made the Switch
Humm first discovered algae oil through Kas Saidi, co-founder of Algae Cooking Club. As Saidi prepared to launch the oil in the U.S., he sought Humm’s input on recipe development and a collection of infused oils.
That’s when Humm realized just how much more sustainable algae oil was compared to seed oils—it became his initial motivation to make the switch. “All other alternatives require significantly more land and water to produce,” he explained. “To put it in perspective, algae oil uses approximately 87% less land than canola oil and 90% less than soybean oil. It also uses 88% less water than palm oil and 90% less than sunflower oil.”
Humm also praised the way algae oil performs in the kitchen. “If it didn’t make our food more delicious, we wouldn’t use it,” he said, noting the oil’s neutral flavor makes it “incredibly versatile, and never interferes with the flavors of a dish.”
It also has a remarkably high smoke point—over 500°F—higher than any cooking oil Humm has used, allowing him to fry and sear at intense heat without any burnt flavor. “This oil switch is also for the benefit of our guests as well as for the planet,” he added, noting that algae oil is high in omega-9 fats and low in omega-6s—the primary concern with traditional seed oils.
Humm says algae oil is still “relatively under the radar,” which makes the transition all the more exciting. But he’s not alone—other chefs are also experimenting with alternatives to seed oils.Fine Dining Lovers
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Onesta Ghana launches Redgold Oil Palm Plantation project to boost local production and cut imports
Onesta Ghana Ltd, an agro-industrial enterprise, has officially launched the Redgold Oil Palm Plantation Project (ROPP), a transformative Public-Private Partnership (PPP) aimed at building a sustainable and fully integrated oil palm value chain in Ghana.
The initiative, which will cover over 10,000 hectares in its initial phase, seeks to enhance local palm oil production, reduce the country’s reliance on imports, and create jobs, particularly in rural communities. The project will include both a nucleus estate and an out-grower scheme, positioning Ghana as a competitive player in the global palm oil market.
Ghana currently faces a production deficit of 150,000 metric tonnes annually, while neighbouring countries such as Côte d’Ivoire have begun exporting palm oil.
At the launch event held at the company’s new office in Accra, Hon. Dr Ekwow Spio-Garbrah, former Minister of Trade and Industry and Board Chairman of Onesta Ghana Ltd, said the goal is to elevate palm oil as a strategic crop alongside cocoa in driving Ghana’s agribusiness agenda. My Joy Online
EU Lawmakers Reject EUDR’s Country Risk System in New Setback to Deforestation Regulation
Lawmakers in the European Parliament voted on Wednesday to reject a benchmarking system categorizing countries by their level of deforestation risk, marking a potential new setback for the new EU Deforestation Regulation (EUDR), aimed at ensuring that products imported to or exported from EU markets no longer contribute to deforestation and forest degradation globally, including concerns that the law could again be delayed.
The EUDR was initially introduced by the EU Commission in November 2021, with proposals aimed at effectively banning deforestation-linked products on the EU market, and establishing strong compliance requirements for companies providing or utilizing key commodities and products such as palm oil, beef, timber, coffee, cocoa, rubber and soy, in addition to some of their derived products, such as leather, chocolate, tires, or furniture.
Under the new rules, companies that want to place relevant products on the EU market, or export them, will face mandatory due diligence rules, including a requirement to trace the products back to the plot of land where it was produced, to prove that the products were produced on land that was not subject to deforestation after 2020, and are compliant with all relevant applicable laws in force in the country of production.
The regulation includes a benchmarking system that classifies countries according to the level of risk of producing commodities covered by the scope of EUDR that are not deforestation-free. The classification system impacts the compliance obligations under the regulation, with sourcing from low-risk countries, for example, allowing for more simplified due diligence requirements from operators and traders.
A motion brought by the European People’s Party (EPP), and subsequently approved by a majority of MEPs, however, argued that the benchmarking system suffered from a series of flaws, including the use of outdated data that “does not accurately reflect the current realities in the countries concerned,” and that it “fails to consider key real-world factors, most notably current land-use dynamics and forest degradation,” which would result in some member stated being placed in higher risk categories.
The motion also stated that the inclusion of only three risk categories – low, standard, and high risk – by the EUDR was “insufficient to adequately differentiate between countries with vastly different levels of deforestation risk.” Notably, the EPP had succeeded in integrating a new “no-risk” category in Parliament’s negotiating position on the EUDR last year, although the category did not make it into an agreement between Parliament and the European Council. The agreement did, however, delay the implementation of the law by a year, with the EUDR now becoming applicable for large companies in December 2025, and for micro- and small enterprises in June 2026. The Commission had proposed the delay, noting that “several global partners have repeatedly expressed concerns about their state of preparedness,” and adding that even within the EU, “the state of preparations amongst stakeholders in Europe is also uneven.”
In a statement released after the motion passed, the EPP again called for the introduction of a “no risk” category in the EUDR.
Alexander Bernhuber MEP, who tabled the objection on behalf of the EPP, said:
“The Commission’s list misrepresents the situation in many countries and creates unnecessary burdens for farmers, foresters, and industry. The EPP Group remains committed to responsible forest stewardship and to policies that combine environmental protection with workable solutions for those who care for and rely on forests. Therefore, a new ‘no risk’ category must be introduced for countries with stable or expanding forest areas. This is how we make EU rules more fair and effective.”
Environmental groups expressed concern that the vote could further set back action on deforestation. In a statement released following the vote, Greenpeace noted that “it is virtually impossible that the Commission could produce a new methodology for classification of countries ahead of 30 December 2025,” which would again cause the regulation’s implementation to be delayed.
Greenpeace Forests Campaigner Sigrid Deters said:
“We are aware that the Commission’s regulation has shortcomings, but the Commission has committed to review it in 2026. In the meantime, the EUDR must be applied by operators and enforced by competent authorities, according to the agreed schedule.” ESG Today
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Indonesia says EU deforestation law is still unworkable
Jakarta’s push for further postponement comes as EU countries call for ‘onerous’ rules to be simplified
Indonesia has asked Brussels to further delay its landmark deforestation law, adding to mounting pressure from EU governments that have demanded policymakers cut back “onerous” requirements on producers.
The controversial ban on products coming from deforested land being sold in the bloc has been heavily criticised by several of the EU’s trading partners including Brazil and the US, which argue it will damage small producers and make trade too expensive.
Muhammad Takdir, Indonesia’s deputy ambassador to the EU, said the law — which has already been delayed until the end of this year — should be further postponed to 2028 to allow more time to prepare, and that no fines should be charged in the intervening period. He also said revisions were needed, particularly for small farmers.
“Our big companies have the ability to adapt to the implementation. But there are 8mn smallholdings, 17mn smallholders if you count families. They cannot navigate the regulation. They will be sidelined from the supply chains,” Takdir told the Financial Times.
Many farmers would not be able to provide the necessary geolocation data for their plantations, as required by the law, because they are often in areas with no mobile phone reception, he said.
The law is an important part of the bloc’s ambitious Green Deal climate law, first announced in 2019 amid a wave of environmental sentiment that swept Green parties across Europe to some of their best ever election results.
However, the bloc’s waning economy and the return of Donald Trump to the White House have prompted a surge in popularity for rightwing parties that say the EU’s green agenda is unviable and a threat to growth.
Under pressure from both EU member states and trading partners, the European Commission agreed in October to postpone the implementation of the deforestation law until the end of 2025.
But several industries and countries are saying that this is still not long enough to help them prepare for the requirements, which include logging geolocation data for where the commodity was grown that can then be cross-checked against satellite maps.
“Last year we made a case that [the law] was not ready and not much has changed,” a senior EU diplomat said.
The law covers seven commodities — cattle, cocoa, coffee, oil palm, rubber, soya and wood — and categorises countries, including those within the bloc, as either at low, standard or high risk of deforestation. Products from low-risk countries will not be subject to the full customs checks.
In a letter to the commission on Monday, agricultural ministers from 18 member states said “the requirements imposed on farmers, forest owners and operators remain onerous and not justified for countries with an insignificant risk of deforestation”.
EU lawmakers also approved a motion on Wednesday to introduce a “no risk” category aimed at exempting EU countries from the rules.
“The commission’s current approach imposes a blanket burden instead of targeting real risk,” said Christine Schnieder, a conservative German MEP who has led negotiations on the deforestation law.
Takdir said some countries were preparing to dispute the issue at the World Trade Organization. India, Colombia and others have already asked for debates in Geneva but have not filed a formal case yet.
He also said Indonesia was still hoping to conclude a trade deal with Brussels by the end of the year despite differences over some EU regulations and Jakarta’s export controls on nickel.
Meanwhile, the US is putting pressure on the EU to exempt it from the law as part of its “framework” trade deal to reduce tariffs on the bloc.
The EU has already categorised the US — and all its own members — as “low risk”, which means there will be fewer due diligence checks on US products. Financial Times
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Malaysia’s EUDR Classification Undermines Country’s Deforestation Efforts
Malaysian exporters now face more due diligence checks and heightened scrutiny from EU authorities when shipping their products to Europe due to its ‘standard’ risk classification.
On 22 May 2025, the European Commission announced the outcome of its ‘country benchmarking’ assessments under the EU Deforestation Regulation (EUDR), which comes into force at the end of this year. The system categorises 194 countries as either ‘low’, ‘standard’ or ‘ high’ risk, depending on the EU Commission’s view of the risk of deforestation they pose.
These risk categorisations are not merely symbolic: they have direct economic and reputational consequences. A ‘low’ risk classification for Malaysia would have simplified compliance obligations for our exporters by enabling streamlined due diligence and reporting procedures. Instead, Malaysian exporters now face more due diligence checks and heightened scrutiny from EU authorities when shipping their products to Europe.
So, it is not surprising that the EU Commission has been roundly criticised for the apparent favouritism it has shown. It has made a political decision rather than relying on the underlying science or the available empirical evidence.
The Commission’s assessment methodology was flawed in three key areas. First, from a purely Malaysian perspective, the significant progress our palm oil producers have made in halting deforestation has been overlooked. The latest satellite data clearly shows which countries have been successful in protecting their untouched natural forests, yet the EU has chosen to rely on outdated data. Article 29(3) of the EUDR requires the EU Commission to use the “latest scientific evidence” in its benchmarking assessments. However, it has used data from 2015 to 2020, as reported in the FAO’s 2020 Forest Resources Assessment. Given the importance of these assessments for its trade partners, the better option would have been to wait for the FAO’s upcoming 2025 Forest Resources Assessment, which will be available in late October this year and features updated data for 2020-2025.
Second, the EU Commission has chosen to look at the FAO’s Forest Resources Assessment data on ‘total forest cover’ instead of ‘naturally regenerating’ or ‘primary’ forest cover in its calculations. In doing so, it has employed a methodology that favours its member states over lower-priority, third-party countries. Article 29(3)(a) of the EUDR requires that benchmarking assessments be based on “quantitative rates of deforestation and forest degradation” but FAO’s ‘total forest cover’ dataset omits the concept of ‘forest degradation’. Therefore, the benchmarking ignores one of the EUDR’s central regulatory requirements.
Malaysia has suffered as a result. Our current deforestation rates are similar across both datasets. Conversely, other countries — notably certain heavily forested EU member states — score well on ‘ total forest’ loss but poorly on ‘primary forest’ loss. Take Sweden, for example.
Looking at ‘total forest loss’ data only, Sweden records no change. Looking at the ‘naturally regenerating forest’ data, it shows a loss of 137,200 ha per year - twice the amount of Malaysia.
This is problematic for EUDR as a whole. Primary forests are nature’s marvels - home to ecosystems of enormous complexity and with soils that are exceptional stores of carbon. They take millennia to develop, yet can be destroyed in hours. Yet, the EU has failed to take these into account in its assessments.
It also creates a suspicion of favouritism. Under the Commission’s methodology, all EU countries are deemed ‘low’ risk despite some having weaker records on primary forest degradation.
The third flaw is the Commission’s use of ‘absolute’ and ‘relative’ deforestation thresholds. Countries with a yearly deforestation rate below 0.2% and an absolute annual forest loss of less than 70,000 ha are classified as ‘low’ risk. Yet, the Commission has produced no scientific justification for these thresholds. For instance, the US narrowly scraped into the ‘low’ risk category with an absolute forest loss rate of 60,000 ha per year.
The EUDR is a laudable initiative that Malaysia strongly supports; however, methodological shortcomings raise questions about fairness, particularly for third countries that are of less immediate value to the EU. If the EU Commission wants a regulation that is effective and workable, it needs to rethink its methodologies. Failing that, countries will question its purpose. Palm Sphere/ MPOC
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Indonesia's B50 program to help support palm oil price
Jakarta (ANTARA) - Deputy Minister of Energy and Mineral Resources, Yuliot Tanjung, has said that the 50 percent biodiesel mix or B50 program can help prevent a decline in the prices of crude palm oil (CPO).
“This is part of the national policy that can provide benefits and support the stability of CPO prices,” he added at a discussion on “Promoting Sustainability of Upstream Oil and Gas Industry for Energy Self-Sufficiency” in Jakarta on Tuesday.
According to Tanjung, currently, there are indications of CPO oversupply or excessive CPO stocks in the country. In addition, globally, CPO prices are also projected to decline, he noted.
If CPO prices decline, palm oil farmers would be affected the most, he said.
Domestic CPO prices have experienced a downward trend, based on the Crude Palm Oil Reference Price (HR CPO) issued by the Ministry of Trade. In April, the price of HR CPO stood at US$961.54 per metric ton.
The price fell in May to US$924.46 per metric ton, and then fell again in June to US$856.38 per metric ton. It rose in July to US$877.89 per metric ton.
B50 biodiesel consists of a mixture of 50 percent biofuel and 50 percent conventional diesel.
Agriculture Minister Andi Amran Sulaiman earlier said the government is planning to divert 5.3 million tons of CPO exports for the B50 program. Data shows Indonesia exported 26 million tons of CPO in 2024, he added.
He expressed the hope that the diversion of 5.3 million tons of Indonesian CPO will cause its prices to increase in the global market.
The Indonesian government is seeking to launch the B50 program in 2026. Currently, the government is promoting B40, which consists of 40 percent biofuel and 60 percent conventional diesel. Antara News
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Is palm oil bad for your health? Here’s what the science says
Palm oil is among the most affordable and versatile edible oils globally, valued for its long shelf-life and neutral taste. Most packaged foods, including potato chips, biscuits, ice cream, and chocolates use palm oil.
A food and beverage industry association has said that the use of labels such as “palm oil free” or “no palm oil” are misleading, and rooted more in marketing than science.
The Indian Food and Beverage Association (IFBA) said in a statement issued on Tuesday that palm oil has been consumed by Indians since the the 19th century, and that the oil has a well-rounded fatty acid profile.
Palm oil is among the most affordable and versatile edible oils globally, valued for its long shelf-life and neutral taste. Most packaged foods, including potato chips, biscuits, ice cream, and chocolates use palm oil.
Fats that remain solid or semi-solid at room temperatures — including palm oil, coconut oil, ghee, butter, and lard — are high in saturated fatty acids (See Chart).
According to the Indian Dietary Guidelines, prepared by the Indian Council of Medical Research (ICMR), coconut oil and ghee have the highest SFA content, around 90 grams and 70 grams respectively per 100 grams of oil. Palmolein, the liquid part of palm oil, contains around 40 grams of SFA and 40 grams of MUFA, with the rest being PUFA. Mustard, safflower, and sunflower have the lowest SFA content, less than 10 grams per 100 gram of oil.
…But it isn’t hydrogenated
Apart from these three fatty acids, trans fatty acids (TFA) are produced during the hydrogenation of liquid vegetable oils. The addition of hydrogen atoms into such oils converts liquid oil to semi-solid, and increases their shelf-life.
Studies have shown that the consumption of TFAs can increase the risk of diabetes, breast cancer, colon cancer, pre-eclampsia (high blood pressure during pregnancy), and disorders of the nervous system.
ince palm oil is semi-solid at room temperature, it does not need to be hydrogenated. In fact, the rise in popularity of palm oil from the 1990s onwards was driven by health concerns about hydrogenated oils.
Most oils also contain minor components such as tocopherols and sterols — naturally occurring antioxidants that give oils their distinct flavours. Palm oil contains tocotrienols, which help lower blood cholesterol levels.
Mix of oils, in moderation
According to the ICMR’s guidelines, a mix of oils that are low in SFA and high in PUFA should ideally be used. This would mean avoiding palm oil as much as possible.
But the alternatives that are often pushed by influencers are not necessarily much healthier. Some of them swear by ghee and coconut oil, which have an even higher content of SFAs.
At the end of the day, an individual’s health outcomes are determined by a number of factors that go beyond just the type of oil consumed.
* The ICMR’s guidelines suggest that consumption of oil should be limited to between 20 and 50 grams (four to 10 teaspoons) per person per day. Those living sedentary lifestyles should stick to the lower end of this range (20-30 grams).
* The guidelines recommend getting most of one’s fat requirement from nuts and seeds such as walnuts, flaxseed, chia seeds, soyabean, and fenugreek seeds. Marine fish, other sea foods, and eggs are also good natural sources of PUFA, they say.
* The ICMR recommends that oils should not be reheated. This is because once heated, PUFAs in the oil start to oxygenate, and form harmful compounds that increase the risk of cardiovascular disease and cancers. If one does have to reuse oil, such oil should not be used for high-temperature cooking, and should be consumed within a day or two. Indian Express
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Why Chefs Are Ditching Seed Oils
As concerns about sustainability and wellness grow, chefs are reevaluating their use of seed oils—and exploring cleaner, more conscious alternatives.
Modern chefs understand more about food than ever before. And while some ingredients stand the test of time, increasingly, others no longer have a seat at the table.
Why Seed Oils Are Under Fire
Since the late 1990s, seed oils—such as canola, sunflower, peanut, and corn oil—have dominated most commercial kitchens. They largely replaced higher-fat ingredients like margarine and lard, praised for being lower in trans fats and having a higher smoke point. But more recent studies have raised concerns: seed oils are high in omega-6 fatty acids, which have been linked to inflammation and autoimmune conditions.
The growing body of information—and conflicting opinions—around seed oils has led some chefs to rethink their use in the kitchen. In April, Chef Daniel Humm of Eleven Madison Park in New York City announced that his team would be replacing seed oil with algae oil.
“Algae oil was the first product that really made us consider making a change like this,” Humm told Fine Dining Lovers. “We aren’t following a trend, but creating a new standard.”
How Daniel Humm Made the Switch
Humm first discovered algae oil through Kas Saidi, co-founder of Algae Cooking Club. As Saidi prepared to launch the oil in the U.S., he sought Humm’s input on recipe development and a collection of infused oils.
That’s when Humm realized just how much more sustainable algae oil was compared to seed oils—it became his initial motivation to make the switch. “All other alternatives require significantly more land and water to produce,” he explained. “To put it in perspective, algae oil uses approximately 87% less land than canola oil and 90% less than soybean oil. It also uses 88% less water than palm oil and 90% less than sunflower oil.”
Humm also praised the way algae oil performs in the kitchen. “If it didn’t make our food more delicious, we wouldn’t use it,” he said, noting the oil’s neutral flavor makes it “incredibly versatile, and never interferes with the flavors of a dish.”
It also has a remarkably high smoke point—over 500°F—higher than any cooking oil Humm has used, allowing him to fry and sear at intense heat without any burnt flavor. “This oil switch is also for the benefit of our guests as well as for the planet,” he added, noting that algae oil is high in omega-9 fats and low in omega-6s—the primary concern with traditional seed oils.
Humm says algae oil is still “relatively under the radar,” which makes the transition all the more exciting. But he’s not alone—other chefs are also experimenting with alternatives to seed oils.Fine Dining Lovers
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Onesta Ghana launches Redgold Oil Palm Plantation project to boost local production and cut imports
Onesta Ghana Ltd, an agro-industrial enterprise, has officially launched the Redgold Oil Palm Plantation Project (ROPP), a transformative Public-Private Partnership (PPP) aimed at building a sustainable and fully integrated oil palm value chain in Ghana.
The initiative, which will cover over 10,000 hectares in its initial phase, seeks to enhance local palm oil production, reduce the country’s reliance on imports, and create jobs, particularly in rural communities. The project will include both a nucleus estate and an out-grower scheme, positioning Ghana as a competitive player in the global palm oil market.
Ghana currently faces a production deficit of 150,000 metric tonnes annually, while neighbouring countries such as Côte d’Ivoire have begun exporting palm oil.
At the launch event held at the company’s new office in Accra, Hon. Dr Ekwow Spio-Garbrah, former Minister of Trade and Industry and Board Chairman of Onesta Ghana Ltd, said the goal is to elevate palm oil as a strategic crop alongside cocoa in driving Ghana’s agribusiness agenda. My Joy Online
July 09, 2025
Indonesia stands up against the EUDR as a non-tariff trade barrier
Indonesia has raised strong concerns over the European Union’s Deforestation Regulation (EUDR), warning that its stringent due diligence requirements disproportionately harm smallholder farmers and threaten key national export sectors.
“The EUDR places a heavy administrative burden on Indonesia’s smallholder farmers and cooperatives who export directly to Europe,” Deputy Foreign Minister, Arif Havas Oegroseno, told a hearing with foreign affairs Commission I of the House of Representatives (DPR) on Tuesday, July 8, 2025. “It’s unrealistic to expect them to fulfill the EU’s traceability and compliance mechanisms without significant support.”
Under the EUDR, products such as palm oil, cocoa, rubber, and coffee must be proven free from deforestation after December 31, 2020. Failure to comply could result in exclusion from the EU market − a scenario that would severely affect Indonesia’s rural economies.
Havas noted that some of Indonesia’s top export commodities, like cocoa and palm oil, are already deeply embedded in global supply chains. “For cocoa, 60 percent of our supply comes from imports due to crop disease in West Africa. If EU rules require full traceability of this mixed-origin input, it’s nearly impossible for exporters to comply,” he said.
He emphasized that the regulation undermines progress made by local cooperatives and small businesses in building sustainable supply chains. “We’re not against sustainability − but these rules were crafted without input from the producers most affected.”
Indonesia has responded diplomatically. During the recent BRICS Summit, the country managed to insert language into the Leaders’ Declaration opposing the EUDR.
“In paragraph 88, BRICS explicitly rejected EU’s deforestation regulation. In paragraph 68, we also pushed for a global standard for sustainable vegetable oils based on our own terms,” Havas said.
He argued that EUDR is just one example of a broader trend where developing countries are subjected to shifting, one-sided standards that disrupt trade. “We need to move beyond always listening to what Europe dictates. As a major market force, we have the right to shape sustainability standards ourselves.”
His remarks reflect growing frustration among Global South exporters who view the EUDR as a non-tariff trade barrier disguised as an environmental policy.
Beyond policy objections, Indonesia is also exploring structural trade alternatives.
“We must stop relying solely on traditional markets. In North Africa, for example, we’re investing in fertilizer factories to leverage their EU and intra-African trade agreements. That’s a smarter way to access larger markets at zero percent tariffs,” he said.
He added that lessons from Germany also revealed weaknesses in Indonesia’s export strategy.
“We rank fifth among Asian exporters in Germany, the EU, and even the U.S. Why? Because we only export 2 out of 10 key products demanded in those markets. Countries like Vietnam and Malaysia export 7 or 8. That has to change.”
Havas stressed that Indonesia must claim its place in shaping global standards. “We can’t just follow EU rules that don’t reflect our realities. As a major producer and emerging market power, Indonesia has every right to define its own sustainability benchmarks.” Indonesia Business Post
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American consumers will bear higher costs of tariffs on Malaysian products
KUALA LUMPUR: The impact of the United States' (US) 25 per cent tariff on Malaysian products will fall on American consumers, especially for goods where no alternatives exist, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
The minister said there is no substitute for Malaysian palm oil in the US market, as soybean oil cannot be processed into oleochemicals in the same way as palm-based products.
"What I want to emphasise is that out of our RM186 billion in exports, only about RM20 billion goes to the US. We export rubber products like rubber gloves, wood products including furniture, oleochemicals from palm oil, and also cocoa and chocolate.
"I see this as a non-competition issue. If they charge us 25 per cent, ultimately it is the American people who will pay for it," he told the media after the Palm Oil Briefing and Industry Dialogue Session held here today. Business Times
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‘No Palm Oil’ labels under fire: IFBA calls it a marketing gimmick
The association warned that such labelling trends, often amplified on social media, may influence consumers to make food choices that are not grounded in scientific evidence.
The Indian Food and Beverage Association (IFBA), has raised concerns over the increasing use of ‘No Palm Oil’ labels on consumer products, calling them a misleading marketing gimmick. Despite being consumed in India since the 19th century, palm oil continues to be misunderstood due to selective branding tactics that exploit health-related fears. Palm oil remains one of the most affordable, versatile, and accessible edible oils widely used by leading global brands for its long shelf life and nutritional stability.
In today’s digital era, food choices are often driven by social media trends rather than scientific evidence. IFBA cautions consumers against taking health advice from influencers who amplify half-truths without nutritional expertise. Labels like ‘Palm Oil Free’ overshadow credible dietary guidance and have become a marketing tool, especially in the FMCG sector, to tap into consumer fears. With India consuming 26 million tonnes of edible oil annually, including 9 million tonnes of palm oil, this trend has fuelled misconceptions and raised questions about whether excluding palm oil is genuinely beneficial or simply a tactic with unintended socio-economic consequences.
Deepak Jolly, chairperson, IFBA, said, “Palm oil has a recognised role in a healthy and balanced diet. Despite this, labels such as ‘No Palm Oil’ mislead consumers by prioritising marketing over science. These narratives distract the importance of overall nutritional balance and can undermine India’s efforts toward self-reliance, ultimately harming all stakeholders — from farmers and producers to consumers and the national economy.”
Shilpa Agrawal, director, scientific and regulatory affairs, IFBA, said, “The Dietary Guidelines for Indians – 2024 of the ICMR-National Institute of Nutrition clearly acknowledge the role of tocotrienols in palm oil in lowering cholesterol and supporting heart health. It recommends a rotation of edible oils, including palm oil, for a balanced fatty acid profile. This is science, not speculation.” Financial Express
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Starbucks Is Looking to Remove Seed Oils From Some of Its Food Products
SEATTLE – Starbucks is exploring how to remove canola oil from its food line-up in the US.
In one example, the company is considering making its egg white and roasted red pepper bites without canola oil, a spokesman said in response to an inquiry from Bloomberg News.
The company will also add a new egg bite to its menu that is made using avocado oil.
Canola oil, a seed oil made by crushing canola seeds, is used in several Starbucks food items in the U.S., from the popular egg white and roasted red pepper bites to its sandwiches. But that may soon change.
Bloomberg is reporting that the coffeehouse is exploring how to remove seed oils, including canola, from its lineup. A Starbucks spokesperson told the outlet that the company is also adding a new egg bite option to its menu made with avocado oil.
Last month, Starbucks CEO Brian Niccol met with the U.S. Health and Human Services Secretary, Robert F. Kennedy Jr., to discuss health and the company's menu. Seed oils are a top talking point for Kennedy, which he says are ultra-processed and linked to chronic diseases. His administration suggests using beef tallow, or rendered beef fat, instead of seed oils.
Salad chain Sweetgreen and burger chain Steak 'n Shake have already made the switch.
"We have made a commitment to remove seed oils from our restaurants," Steak 'n Shake wrote on its website. "Our fries, onion rings and chicken tenders are now cooked in 100% beef tallow in our restaurants."
Yesterday, I met with @Starbucks CEO Brian Niccol, who shared the company's plans to further MAHA its menu. I was pleased to learn that Starbucks' food and beverages already avoid artificial dyes, artificial flavors, high fructose corn syrup, artificial sweeteners, and other… pic.twitter.com/F2O9wHpVFW Entrepreneur
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U.S. dietary guidelines on a collision course with MAHA
The high-stakes effort to set nutrition standards for the food industry and government programs like Head Start is about to get a makeover from Health Secretary Robert F. Kennedy Jr.
Why it matters: It's an opportunity for Kennedy to exert more leverage over food and beverage companies and the products they make after narrower actions like pressing them to voluntarily eliminate synthetic food dyes.
Saturated fats: The Dietary Guidelines have long recommended limiting saturated fat consumption to less than 10% of daily calories to reduce the risk of cardiovascular disease, said Jessi Silverman, a dietician at the Center for Science in the Public Interest.
Indonesia stands up against the EUDR as a non-tariff trade barrier
Indonesia has raised strong concerns over the European Union’s Deforestation Regulation (EUDR), warning that its stringent due diligence requirements disproportionately harm smallholder farmers and threaten key national export sectors.
“The EUDR places a heavy administrative burden on Indonesia’s smallholder farmers and cooperatives who export directly to Europe,” Deputy Foreign Minister, Arif Havas Oegroseno, told a hearing with foreign affairs Commission I of the House of Representatives (DPR) on Tuesday, July 8, 2025. “It’s unrealistic to expect them to fulfill the EU’s traceability and compliance mechanisms without significant support.”
Under the EUDR, products such as palm oil, cocoa, rubber, and coffee must be proven free from deforestation after December 31, 2020. Failure to comply could result in exclusion from the EU market − a scenario that would severely affect Indonesia’s rural economies.
Havas noted that some of Indonesia’s top export commodities, like cocoa and palm oil, are already deeply embedded in global supply chains. “For cocoa, 60 percent of our supply comes from imports due to crop disease in West Africa. If EU rules require full traceability of this mixed-origin input, it’s nearly impossible for exporters to comply,” he said.
He emphasized that the regulation undermines progress made by local cooperatives and small businesses in building sustainable supply chains. “We’re not against sustainability − but these rules were crafted without input from the producers most affected.”
Indonesia has responded diplomatically. During the recent BRICS Summit, the country managed to insert language into the Leaders’ Declaration opposing the EUDR.
“In paragraph 88, BRICS explicitly rejected EU’s deforestation regulation. In paragraph 68, we also pushed for a global standard for sustainable vegetable oils based on our own terms,” Havas said.
He argued that EUDR is just one example of a broader trend where developing countries are subjected to shifting, one-sided standards that disrupt trade. “We need to move beyond always listening to what Europe dictates. As a major market force, we have the right to shape sustainability standards ourselves.”
His remarks reflect growing frustration among Global South exporters who view the EUDR as a non-tariff trade barrier disguised as an environmental policy.
Beyond policy objections, Indonesia is also exploring structural trade alternatives.
“We must stop relying solely on traditional markets. In North Africa, for example, we’re investing in fertilizer factories to leverage their EU and intra-African trade agreements. That’s a smarter way to access larger markets at zero percent tariffs,” he said.
He added that lessons from Germany also revealed weaknesses in Indonesia’s export strategy.
“We rank fifth among Asian exporters in Germany, the EU, and even the U.S. Why? Because we only export 2 out of 10 key products demanded in those markets. Countries like Vietnam and Malaysia export 7 or 8. That has to change.”
Havas stressed that Indonesia must claim its place in shaping global standards. “We can’t just follow EU rules that don’t reflect our realities. As a major producer and emerging market power, Indonesia has every right to define its own sustainability benchmarks.” Indonesia Business Post
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American consumers will bear higher costs of tariffs on Malaysian products
KUALA LUMPUR: The impact of the United States' (US) 25 per cent tariff on Malaysian products will fall on American consumers, especially for goods where no alternatives exist, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
The minister said there is no substitute for Malaysian palm oil in the US market, as soybean oil cannot be processed into oleochemicals in the same way as palm-based products.
"What I want to emphasise is that out of our RM186 billion in exports, only about RM20 billion goes to the US. We export rubber products like rubber gloves, wood products including furniture, oleochemicals from palm oil, and also cocoa and chocolate.
"I see this as a non-competition issue. If they charge us 25 per cent, ultimately it is the American people who will pay for it," he told the media after the Palm Oil Briefing and Industry Dialogue Session held here today. Business Times
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‘No Palm Oil’ labels under fire: IFBA calls it a marketing gimmick
The association warned that such labelling trends, often amplified on social media, may influence consumers to make food choices that are not grounded in scientific evidence.
The Indian Food and Beverage Association (IFBA), has raised concerns over the increasing use of ‘No Palm Oil’ labels on consumer products, calling them a misleading marketing gimmick. Despite being consumed in India since the 19th century, palm oil continues to be misunderstood due to selective branding tactics that exploit health-related fears. Palm oil remains one of the most affordable, versatile, and accessible edible oils widely used by leading global brands for its long shelf life and nutritional stability.
In today’s digital era, food choices are often driven by social media trends rather than scientific evidence. IFBA cautions consumers against taking health advice from influencers who amplify half-truths without nutritional expertise. Labels like ‘Palm Oil Free’ overshadow credible dietary guidance and have become a marketing tool, especially in the FMCG sector, to tap into consumer fears. With India consuming 26 million tonnes of edible oil annually, including 9 million tonnes of palm oil, this trend has fuelled misconceptions and raised questions about whether excluding palm oil is genuinely beneficial or simply a tactic with unintended socio-economic consequences.
Deepak Jolly, chairperson, IFBA, said, “Palm oil has a recognised role in a healthy and balanced diet. Despite this, labels such as ‘No Palm Oil’ mislead consumers by prioritising marketing over science. These narratives distract the importance of overall nutritional balance and can undermine India’s efforts toward self-reliance, ultimately harming all stakeholders — from farmers and producers to consumers and the national economy.”
Shilpa Agrawal, director, scientific and regulatory affairs, IFBA, said, “The Dietary Guidelines for Indians – 2024 of the ICMR-National Institute of Nutrition clearly acknowledge the role of tocotrienols in palm oil in lowering cholesterol and supporting heart health. It recommends a rotation of edible oils, including palm oil, for a balanced fatty acid profile. This is science, not speculation.” Financial Express
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Starbucks Is Looking to Remove Seed Oils From Some of Its Food Products
SEATTLE – Starbucks is exploring how to remove canola oil from its food line-up in the US.
In one example, the company is considering making its egg white and roasted red pepper bites without canola oil, a spokesman said in response to an inquiry from Bloomberg News.
The company will also add a new egg bite to its menu that is made using avocado oil.
Canola oil, a seed oil made by crushing canola seeds, is used in several Starbucks food items in the U.S., from the popular egg white and roasted red pepper bites to its sandwiches. But that may soon change.
Bloomberg is reporting that the coffeehouse is exploring how to remove seed oils, including canola, from its lineup. A Starbucks spokesperson told the outlet that the company is also adding a new egg bite option to its menu made with avocado oil.
Last month, Starbucks CEO Brian Niccol met with the U.S. Health and Human Services Secretary, Robert F. Kennedy Jr., to discuss health and the company's menu. Seed oils are a top talking point for Kennedy, which he says are ultra-processed and linked to chronic diseases. His administration suggests using beef tallow, or rendered beef fat, instead of seed oils.
Salad chain Sweetgreen and burger chain Steak 'n Shake have already made the switch.
"We have made a commitment to remove seed oils from our restaurants," Steak 'n Shake wrote on its website. "Our fries, onion rings and chicken tenders are now cooked in 100% beef tallow in our restaurants."
Yesterday, I met with @Starbucks CEO Brian Niccol, who shared the company's plans to further MAHA its menu. I was pleased to learn that Starbucks' food and beverages already avoid artificial dyes, artificial flavors, high fructose corn syrup, artificial sweeteners, and other… pic.twitter.com/F2O9wHpVFW Entrepreneur
---------
U.S. dietary guidelines on a collision course with MAHA
The high-stakes effort to set nutrition standards for the food industry and government programs like Head Start is about to get a makeover from Health Secretary Robert F. Kennedy Jr.
Why it matters: It's an opportunity for Kennedy to exert more leverage over food and beverage companies and the products they make after narrower actions like pressing them to voluntarily eliminate synthetic food dyes.
- But experts worry Kennedy will short-circuit the evidence-based process behind the 2025-2030 Dietary Guidelines for Americans and use the requirements to ban targets of his public health movement, like seed oils or sugary drinks.
- "The industry's worst nightmare [is] that there's substantial changes in the dietary guidelines," Mande said. "I've just recently been in a number of meetings with CEOs of big food companies. They're not looking forward to wholesale changes."
- They also influence what doctors and nutritionists tell patients and the content on public-facing tools like the USDA's MyPlate and its predecessor the food pyramid.
- Kennedy and Agriculture Secretary Brooke Rollins have said they're pushing ahead with new recommendations that could be released soon.
- The expectation is a Make America Healthy Again-inspired revamp would not only call for more of a focus on locally sourced whole foods, but could call for the return of meat with high fat content, whole milk and beef tallow, in the name of healthier alternatives.
- During a speech at Texas A&M in April, he indicated he'd scrap a scientific report that a panel of nutrition experts issued under the Biden administration in December to guide this year's update. It called for eating less meat and saturated fats, and more fiber-rich legumes, fruits and vegetables.
- MAHA-aligned nutritionists suggest existing guidelines downplay nutritional inadequacies and mistakenly stress the health benefits of beans, peas and lentils over animal products.
- "There are myriad problems with an approach that oversimplifies nutrition science — not the least of which is that lawmakers can't make sound policy off of a short high-level overview," a food industry executive told Axios, speaking on the condition of anonymity because they weren't authorized to discuss the deliberations.
Saturated fats: The Dietary Guidelines have long recommended limiting saturated fat consumption to less than 10% of daily calories to reduce the risk of cardiovascular disease, said Jessi Silverman, a dietician at the Center for Science in the Public Interest.
- The organization fears Kennedy will instead promote disputed ideas about the benefits of beef tallow and increased consumption of meat and whole fat dairy products, she said.
- Schools have already been purchasing products without synthetic dyes in response to limits in some states, said Diane Pratt-Heavner, spokesperson for the School Nutrition Association.
- "The colors are a no-brainer because there's enough question about their safety that they really shouldn't be there. Just get rid of them," said Marion Nestle, emerita professor of nutrition at New York University.
- But the science is more complicated than it may seem, Pratt-Heavner said. "Ultra-processed as a category includes so many different foods that have a variety of different nutritional profiles," she noted, adding it's not yet clear what about ultra-processed foods is driving this correlation.
- School meals are already the most regulated in the country, with districts stretched to meet limits for calories, saturated fat, sodium and sugar. Upending those goals without a corresponding increase in funding would be an enormous challenge, she said.
- It's been an area of disagreement and not something the dietary advisory committee took up in December, Mande said.
- Health and Human Services did not respond to requests for comment.
- So far, Kennedy has avoided mandating changes, raising questions about how willing he is to lower the hammer on the food industry.
- "There's no reason it wouldn't say exactly what RFK Jr. and Brooke Rollins intend it to say," Mande said. Axios
July 8, 2025
EU countries seek more cuts to deforestation rules, letter shows
BRUSSELS, July 7 (Reuters) - Most European Union countries have demanded further changes to the bloc's anti-deforestation law, saying some of its producers cannot be expected to meet its terms and face a competitive disadvantage, a letter seen by Reuters showed.
From December, the deforestation law, a world first, will require operators placing goods including soy, beef and palm oil, onto the EU market to provide proof their products did not cause deforestation.
Felling CO2-storing forests is a major cause of climate change. But despite worsening extreme weather, political will to impose strict emissions-cutting policies has ebbed, as governments worry about the financial costs.
Brussels has already delayed its launch by a year and cut back reporting rules following criticism from trading partners, including the United States, as well as from EU countries.
Of the EU's 27 member countries, agriculture ministers from 18 wrote to the Commission on Monday, demanding the EU rules are not applied to countries deemed to have a low risk of deforestation. They should stick to national measures instead, they said.
"Excessive and redundant due diligence requirements should be removed in countries where agricultural expansion is not significantly reducing the forest area," the letter said.
It was signed by Austria, Bulgaria, Croatia, the Czech Republic, Estonia, Finland, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Poland, Portugal, Romania, Slovakia, Slovenia and Sweden.
The deforestation law also applies to EU exports, prompting the 18 countries to voice concern that European producers would relocate abroad to avoid the additional cost of complying with the rules.
"The full traceability within the EU-market required for all commodities by the regulation will be extremely difficult, if not impossible for some of them," the letter added.
The countries said Brussels should consider delaying the launch of the policy again, while it drafts proposals to simplify the rules further. Reuters
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Environment, 18 countries including Italy ask Commission to soften deforestation regulation
For the ministers, the Regulation is a milestone in global forest protection, but it imposes disproportionate bureaucratic obligations on countries where the problem is "demonstrably insignificant."
Brussels – Eighteen EU countries, including Italy, are asking Brussels for further simplification of the EU regulation on deforestation (EUDR). The ministers of Austria, Bulgaria, Croatia, Czech Republic, Estonia, Finland, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Poland, Portugal, Romania, Slovakia, Slovenia, and Sweden wrote a letter to the European Commission and the Commissioners for the Environment, Jessika Roswall and Agriculture Commissioner Christophe Hansen, pointing out that although the law is “a milestone in global forest protection”, it “does not take sufficient account of countries with effective forest protection laws and negligible risk of deforestation“. With the consequence that “the obligations imposed on farmers, forest owners, and operators remain onerous and unjustified for countries with negligible deforestation risk” and “are disproportionate to the objective of the regulation, which is to prevent deforestation where it occurs.” Therefore, “we urge the European Commission to rapidly include the Deforestation Regulation in its simplification plans in order to ensure a coordinated and effective implementation” of the regulation across the Union. In the meantime, “it may be appropriate to further postpone the date of application of the regulation,” the ministers write.
Coming into force on 29 June 2023, the Deforestation-Free Products Regulation (EUDR) seeks to address the main driver of deforestation, i.e. the expansion of agricultural land linked to the production of commodities such as livestock, wood, cocoa, soya, palm oil, coffee, rubber, and some of their derivative products, such as leather, chocolate, tyres, or furniture. Thus, according to the regulation, any operator or trader placing these products on the EU market, or exporting from it, must be able to prove that the products do not originate from land that has recently been deforested or has contributed to forest degradation. Initially intended to enter into force on 30 December 2024, in December last year the EU granted an additional 12-month phase-in period, making the law applicable on 30 December 2025 for large and medium-sized enterprises and on 30 June 2026 for micro and small enterprises, in order to give stakeholders more time to align with the requirements.
In the letter, it is emphasised that “sustainable forest management is key to developing climate resilient forests, ensuring species diversity and enhancing the bio-economy with multiple products and services.” And that, “thanks to the tireless work of the member states, the area covered by forests and wooded areas in Europe has increased in recent decades”. Moreover, for the 18 ministers, “the Regulation constitutes a milestone in global forest protection, providing a solid legal basis for EU action against deforestation, while strengthening international cooperation and including support measures for small producers in third countries”. However, “in its current form”, the text “does not take sufficient account of countries with effective forest protection laws and a negligible risk of deforestation.” And “instead of focusing on deforestation where the risk is highest, the regulation imposes disproportionate bureaucratic obligations on countries where deforestation is demonstrably insignificant.”
After having outlined this framework, the signatories recall that the Commission has placed competitiveness “at the heart of its general and economic agenda” and is “committed to ensuring that European businesses can thrive in the global marketplace and guarantee sustainable prosperity for all EU citizens.” Elements that clash, according to the ministers, with the regulation. So much so that, the ministers note, “given the considerable complexity” of the regulation’s provisions and to allow all parties (farmers, forest owners, operators, competent authorities) to fulfil their obligations, the Commission proposed last year to postpone the regulation’s application date to 30 December 2025. A proposal that was accepted and adopted by the co-legislators in December, along with a Commission statement “affirming its commitment to reducing burdens on businesses by removing unnecessary administrative obligations.”
Ministers acknowledge that “guidelines for simplifying and reducing administrative burdens were adopted by the European Commission in April 2025. However, the obligations imposed on farmers, forest owners, and operators remain burdensome and unjustified for countries with negligible deforestation risk. They are disproportionate to the objective of the regulation, which is to prevent deforestation where it occurs,” they write.
Another issue raised in the letter is that of costs, because the obligations “generate additional costs for both companies and administrations, thus undermining the overall objective of improving competitiveness, not only in the bioeconomy sector, but also in a number of other sectors, including livestock, and adapting forests to climate change through active and sustainable forest management,” the ministers point out. Not only that: the letter denounced “the concrete risk that the increase in raw material prices, caused by the complex obligations” of the regulation, “leads to an increase in production costs and prices, with the associated risk that our producers relocate their production outside the European Union.”
Another problematic aspect, according to the EU countries, is the complete traceability of raw materials within the EU market, which, according to the ministers of the 18 member states, “will be extremely difficult, if not impossible for some of them“. On the contrary, the letter notes that “excessive and redundant due diligence requirements should be eliminated in countries where agricultural expansion does not significantly reduce forest area” and that, “in countries designated as having a low risk of deforestation, it should be accepted that existing national systems are sufficiently robust to demonstrate that compliance with the EUDR can be adequately monitored.” For example, for the ministers “it is essential to simplify requirements for raw materials and products already placed on the EU market, as well as for farmers and foresters in countries or regions with negligible deforestation risk“. Furthermore, “it is essential to facilitate a better integration of the existing national forest datasets of the Member States with the Commission’s information system”.
Finally, “in the context of a general desire to simplify EU legislation, we reiterate that many member states have already expressed a strong need for a more substantial reduction of administrative burdens” related to the Deforestation Regulation. And “we therefore urge the European Commission to rapidly include the Deforestation Regulation in its simplification plans to ensure a coordinated and effective implementation of the EUDR across the EU”. Whereas, while waiting for the Commission’s simplification proposals to be formulated, “it might be appropriate to further postpone the date of application of the regulation.” EU News
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EU countries demand further cuts to deforestation rules
Most EU countries have demanded more changes to the trailblazing anti-deforestation law set to be implemented in December. This isn’t the first time that this legislation has faced pushback from the bloc’s member states, as eleven member states had previously asked that the law be weakened. Some of the EU’s producers argue that they cannot be expected to meet the legislation’s terms and will face a competitive disadvantage. Under the new law, operators are required to provide proof that their products including soy, beef and palm oil entering the EU market did not cause deforestation. Felling CO2 storing forests is a significant driver of climate change but political will to impose policies that will cut emissions has decreased as financial concerns come into play. Given that the deforestation law also applies to EU exports, 18 countries have voiced concern that European producers would relocate abroad to avoid the additional cost of compliance. In its current form, the EU deforestation policy aims to end 10% of global deforestation linked to EU consumption of imported goods. Impakter
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Mondelēz wants to delay EUDR, Nestlé doesn’t
07-Jul-2025 by Flora Southey
The debate is heating up over whether Europe’s deforestation law should be delayed, again Food Navigator
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Southeast Asia, spooked by Trump tariffs, presses for more talks
BANGKOK/JAKARTA, July 8 (Reuters) - Southeast Asia's biggest economies prepared on Tuesday to step up trade negotiations with Washington after it hit them with steep tariffs, despite a last-ditch flurry of offers to boost imports and slash levies on U.S. goods.
Regional nations are among the hardest hit by President Donald Trump's sweeping tariffs, as they rely on exports and manufacturing to drive economies collectively worth more than $3.8 trillion, some helped by supply chain shifts from China.
Unchanged tariff rates, opens new tab of 32% for Indonesia and 36% for Thailand from August 1 came despite late efforts to beef up proposals such as promises to ramp up purchases of U.S. goods and eliminate tariffs on a wide range of U.S. imports.
Details of the scope of the tariffs were not immediately clear. Malaysia, a key exporter of semiconductors and electronics, faces a levy of 25%, up from 24% threatened in April, before Trump called a 90-day pause.
Thai Finance Minister Pichai Chunhavajira, who made a proposal to U.S. officials after a visit to Washington last week, said he was "a little shocked" at his country's rate of 36%, but was ready to offer more to its biggest export market.
"The United States has not considered our latest proposal," he said in a post on X. "We will find more measures and find more solutions. So be confident we will fight to the end, so that Thailand will have the best offer possible."
RAFT OF CONCESSIONS
The broader tariff rates came after Trump unveiled a trade pact last week following rounds of talks with regional manufacturing powerhouse Vietnam that yielded it a levy of 20% on most exports and 40% on transshipped goods.
Indonesia, Southeast Asia's biggest economy, said its top negotiator Airlangga Hartarto was en route to Washington on Tuesday from a Brazil summit of the BRICS grouping and would hold talks with U.S. officials right away.
"There is still space for negotiations," said Haryo Limanseto, a spokesperson of the coordinating ministry of economic affairs. "The Indonesian government is maximising those negotiation chances."
G20 economy Indonesia had offered Washington a raft of concessions early on in talks, plus offers to boost investment in the United States.
More recently it has made a slew of offers to buy more energy, commodities, and aircraft from American companies in a deal that could go as high as $34 billion.
Yet the tariffs could still prove expensive for the world's biggest exporter of palm oil, which supplies about 85% of U.S. imports of the edible oil.
U.S. shipments could fall 15% to 20% because of the tariffs, and cost Indonesia the loss of market share to rival Malaysia, as well as other vegetable oils, Hadi Sugeng, the secretary general of its palm oil association, told Reuters.
Thailand, the world's second largest exporter of rice, could also suffer a 20% reduction in demand from the U.S. market, its rice exporters' association said, while facing greater competition from third-largest shipper Vietnam. Reuters
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Indonesia palm oil exports to US may fall due to tariffs, industry group says
JAKARTA, July 8 (Reuters) - Indonesian palm oil exports to the United States may fall due to the 32% tariffs threatened on Indonesian goods, allowing competitors in Malaysia to gain market share, an industry official told Reuters on Tuesday.
The two countries are the world's biggest palm oil producers, but Indonesia has been by far the biggest supplier to the United States, accounting for 85% of its total imports last year.
But if the new tariff comes into effect, it could lead to a 15%-20% drop in Indonesian palm oil shipments to the United States, said Hadi Sugeng, secretary general of the Indonesia Palm Oil Association.
"The competitiveness of palm oil will decline against other vegetable oils such as soybean oil and rapeseed oil, especially if countries exporting these vegetable oils receive lower tariffs," he added.
Overall, Indonesia exported 29.5 million tons of palm oil products in 2024. Exports to the United States stood at an average of 2.25 million metric tons per year over the past three years, Hadi said.
Indonesia's top negotiator is headed to Washington on Tuesday to meet with trade representatives of the United States, an economic ministry official said.
Malaysian palm oil faces a lower tariff of 25%, giving producers an advantage over their Indonesian counterparts.
Speaking on Tuesday, Malaysia's plantations and commodities minister Johari Abdul Ghani said U.S. importers would have to bear the cost of additional tariffs on palm oil.
He said there was was no alternative to palm oil in the U.S. as soybeans cannot be converted into oleochemicals, plant-based products used in toothpastes and detergents.
"I think it's a non-competition. If they charge us 25%, ultimately the person who is going to pay for it will be the Americans," he said. Reuters
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‘No palm oil’ label is misleading marketing tactic, says IFBA
The Indian Food and Beverage Association (IFBA) has termed the growing trend of “No Palm Oil” labels on consumer products as misleading and described it as a marketing gimmick rather than a scientifically backed health claim.
In a statement issued on Tuesday, the association expressed concern that selective branding tactics were creating confusion among consumers, despite palm oil being widely used and consumed in India since the 19th century.
“Palm oil has a recognised role in a healthy and balanced diet. Despite this, labels such as ‘No Palm Oil’ mislead consumers by prioritising marketing over science,” said Deepak Jolly, Chairperson of the IFBA, citing the Ministry of Health’s dietary guidelines.
The association pointed out that palm oil is among the most affordable and versatile edible oils, used extensively by leading global brands due to its long shelf life and nutritional stability.
It also cautioned that the rise of such labelling practices is encouraging consumers to make food choices based on social media trends rather than verified scientific evidence. “These narratives distract from the importance of overall nutritional balance and can undermine India’s efforts towards self-reliance, ultimately harming farmers, producers, consumers and the national economy,” Jolly said.
India consumes about 26 million tonnes of edible oil every year, of which nearly 9 million tonnes is palm oil.
Shilpa Agrawal, Director of Scientific and Regulatory Affairs at IFBA, noted that the Dietary Guidelines for Indians–2024, released by the ICMR–National Institute of Nutrition, recognise the role of tocotrienols found in palm oil in lowering cholesterol and supporting heart health. The guidelines recommend a rotation of edible oils, including palm oil, to maintain a balanced fatty acid profile, she added.
The association also lauded the government’s National Mission on Edible Oils–Oil Palm (NMEO-OP), launched in 2021 with an outlay of ₹11,040 crore, which aims to expand oil palm cultivation and reduce India’s dependence on edible oil imports.
“Consumers should be cautious of influencers who exaggerate claims without understanding nutrition science. Marketing tactics such as ‘Palm Oil Free’ labels are no substitute for balanced dietary advice,” the IFBA said. DD News
EU countries seek more cuts to deforestation rules, letter shows
BRUSSELS, July 7 (Reuters) - Most European Union countries have demanded further changes to the bloc's anti-deforestation law, saying some of its producers cannot be expected to meet its terms and face a competitive disadvantage, a letter seen by Reuters showed.
From December, the deforestation law, a world first, will require operators placing goods including soy, beef and palm oil, onto the EU market to provide proof their products did not cause deforestation.
Felling CO2-storing forests is a major cause of climate change. But despite worsening extreme weather, political will to impose strict emissions-cutting policies has ebbed, as governments worry about the financial costs.
Brussels has already delayed its launch by a year and cut back reporting rules following criticism from trading partners, including the United States, as well as from EU countries.
Of the EU's 27 member countries, agriculture ministers from 18 wrote to the Commission on Monday, demanding the EU rules are not applied to countries deemed to have a low risk of deforestation. They should stick to national measures instead, they said.
"Excessive and redundant due diligence requirements should be removed in countries where agricultural expansion is not significantly reducing the forest area," the letter said.
It was signed by Austria, Bulgaria, Croatia, the Czech Republic, Estonia, Finland, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Poland, Portugal, Romania, Slovakia, Slovenia and Sweden.
The deforestation law also applies to EU exports, prompting the 18 countries to voice concern that European producers would relocate abroad to avoid the additional cost of complying with the rules.
"The full traceability within the EU-market required for all commodities by the regulation will be extremely difficult, if not impossible for some of them," the letter added.
The countries said Brussels should consider delaying the launch of the policy again, while it drafts proposals to simplify the rules further. Reuters
---------
Environment, 18 countries including Italy ask Commission to soften deforestation regulation
For the ministers, the Regulation is a milestone in global forest protection, but it imposes disproportionate bureaucratic obligations on countries where the problem is "demonstrably insignificant."
Brussels – Eighteen EU countries, including Italy, are asking Brussels for further simplification of the EU regulation on deforestation (EUDR). The ministers of Austria, Bulgaria, Croatia, Czech Republic, Estonia, Finland, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Poland, Portugal, Romania, Slovakia, Slovenia, and Sweden wrote a letter to the European Commission and the Commissioners for the Environment, Jessika Roswall and Agriculture Commissioner Christophe Hansen, pointing out that although the law is “a milestone in global forest protection”, it “does not take sufficient account of countries with effective forest protection laws and negligible risk of deforestation“. With the consequence that “the obligations imposed on farmers, forest owners, and operators remain onerous and unjustified for countries with negligible deforestation risk” and “are disproportionate to the objective of the regulation, which is to prevent deforestation where it occurs.” Therefore, “we urge the European Commission to rapidly include the Deforestation Regulation in its simplification plans in order to ensure a coordinated and effective implementation” of the regulation across the Union. In the meantime, “it may be appropriate to further postpone the date of application of the regulation,” the ministers write.
Coming into force on 29 June 2023, the Deforestation-Free Products Regulation (EUDR) seeks to address the main driver of deforestation, i.e. the expansion of agricultural land linked to the production of commodities such as livestock, wood, cocoa, soya, palm oil, coffee, rubber, and some of their derivative products, such as leather, chocolate, tyres, or furniture. Thus, according to the regulation, any operator or trader placing these products on the EU market, or exporting from it, must be able to prove that the products do not originate from land that has recently been deforested or has contributed to forest degradation. Initially intended to enter into force on 30 December 2024, in December last year the EU granted an additional 12-month phase-in period, making the law applicable on 30 December 2025 for large and medium-sized enterprises and on 30 June 2026 for micro and small enterprises, in order to give stakeholders more time to align with the requirements.
In the letter, it is emphasised that “sustainable forest management is key to developing climate resilient forests, ensuring species diversity and enhancing the bio-economy with multiple products and services.” And that, “thanks to the tireless work of the member states, the area covered by forests and wooded areas in Europe has increased in recent decades”. Moreover, for the 18 ministers, “the Regulation constitutes a milestone in global forest protection, providing a solid legal basis for EU action against deforestation, while strengthening international cooperation and including support measures for small producers in third countries”. However, “in its current form”, the text “does not take sufficient account of countries with effective forest protection laws and a negligible risk of deforestation.” And “instead of focusing on deforestation where the risk is highest, the regulation imposes disproportionate bureaucratic obligations on countries where deforestation is demonstrably insignificant.”
After having outlined this framework, the signatories recall that the Commission has placed competitiveness “at the heart of its general and economic agenda” and is “committed to ensuring that European businesses can thrive in the global marketplace and guarantee sustainable prosperity for all EU citizens.” Elements that clash, according to the ministers, with the regulation. So much so that, the ministers note, “given the considerable complexity” of the regulation’s provisions and to allow all parties (farmers, forest owners, operators, competent authorities) to fulfil their obligations, the Commission proposed last year to postpone the regulation’s application date to 30 December 2025. A proposal that was accepted and adopted by the co-legislators in December, along with a Commission statement “affirming its commitment to reducing burdens on businesses by removing unnecessary administrative obligations.”
Ministers acknowledge that “guidelines for simplifying and reducing administrative burdens were adopted by the European Commission in April 2025. However, the obligations imposed on farmers, forest owners, and operators remain burdensome and unjustified for countries with negligible deforestation risk. They are disproportionate to the objective of the regulation, which is to prevent deforestation where it occurs,” they write.
Another issue raised in the letter is that of costs, because the obligations “generate additional costs for both companies and administrations, thus undermining the overall objective of improving competitiveness, not only in the bioeconomy sector, but also in a number of other sectors, including livestock, and adapting forests to climate change through active and sustainable forest management,” the ministers point out. Not only that: the letter denounced “the concrete risk that the increase in raw material prices, caused by the complex obligations” of the regulation, “leads to an increase in production costs and prices, with the associated risk that our producers relocate their production outside the European Union.”
Another problematic aspect, according to the EU countries, is the complete traceability of raw materials within the EU market, which, according to the ministers of the 18 member states, “will be extremely difficult, if not impossible for some of them“. On the contrary, the letter notes that “excessive and redundant due diligence requirements should be eliminated in countries where agricultural expansion does not significantly reduce forest area” and that, “in countries designated as having a low risk of deforestation, it should be accepted that existing national systems are sufficiently robust to demonstrate that compliance with the EUDR can be adequately monitored.” For example, for the ministers “it is essential to simplify requirements for raw materials and products already placed on the EU market, as well as for farmers and foresters in countries or regions with negligible deforestation risk“. Furthermore, “it is essential to facilitate a better integration of the existing national forest datasets of the Member States with the Commission’s information system”.
Finally, “in the context of a general desire to simplify EU legislation, we reiterate that many member states have already expressed a strong need for a more substantial reduction of administrative burdens” related to the Deforestation Regulation. And “we therefore urge the European Commission to rapidly include the Deforestation Regulation in its simplification plans to ensure a coordinated and effective implementation of the EUDR across the EU”. Whereas, while waiting for the Commission’s simplification proposals to be formulated, “it might be appropriate to further postpone the date of application of the regulation.” EU News
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EU countries demand further cuts to deforestation rules
Most EU countries have demanded more changes to the trailblazing anti-deforestation law set to be implemented in December. This isn’t the first time that this legislation has faced pushback from the bloc’s member states, as eleven member states had previously asked that the law be weakened. Some of the EU’s producers argue that they cannot be expected to meet the legislation’s terms and will face a competitive disadvantage. Under the new law, operators are required to provide proof that their products including soy, beef and palm oil entering the EU market did not cause deforestation. Felling CO2 storing forests is a significant driver of climate change but political will to impose policies that will cut emissions has decreased as financial concerns come into play. Given that the deforestation law also applies to EU exports, 18 countries have voiced concern that European producers would relocate abroad to avoid the additional cost of compliance. In its current form, the EU deforestation policy aims to end 10% of global deforestation linked to EU consumption of imported goods. Impakter
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Mondelēz wants to delay EUDR, Nestlé doesn’t
07-Jul-2025 by Flora Southey
The debate is heating up over whether Europe’s deforestation law should be delayed, again Food Navigator
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Southeast Asia, spooked by Trump tariffs, presses for more talks
- High U.S. tariffs a blow to export-reliant region
- Thailand, Indonesia tariffs unchanged despite concessions
- Levies come after Trump clinches Vietnam trade deal
- Thai minister vows 'fight to the end' for better deal
BANGKOK/JAKARTA, July 8 (Reuters) - Southeast Asia's biggest economies prepared on Tuesday to step up trade negotiations with Washington after it hit them with steep tariffs, despite a last-ditch flurry of offers to boost imports and slash levies on U.S. goods.
Regional nations are among the hardest hit by President Donald Trump's sweeping tariffs, as they rely on exports and manufacturing to drive economies collectively worth more than $3.8 trillion, some helped by supply chain shifts from China.
Unchanged tariff rates, opens new tab of 32% for Indonesia and 36% for Thailand from August 1 came despite late efforts to beef up proposals such as promises to ramp up purchases of U.S. goods and eliminate tariffs on a wide range of U.S. imports.
Details of the scope of the tariffs were not immediately clear. Malaysia, a key exporter of semiconductors and electronics, faces a levy of 25%, up from 24% threatened in April, before Trump called a 90-day pause.
Thai Finance Minister Pichai Chunhavajira, who made a proposal to U.S. officials after a visit to Washington last week, said he was "a little shocked" at his country's rate of 36%, but was ready to offer more to its biggest export market.
"The United States has not considered our latest proposal," he said in a post on X. "We will find more measures and find more solutions. So be confident we will fight to the end, so that Thailand will have the best offer possible."
RAFT OF CONCESSIONS
The broader tariff rates came after Trump unveiled a trade pact last week following rounds of talks with regional manufacturing powerhouse Vietnam that yielded it a levy of 20% on most exports and 40% on transshipped goods.
Indonesia, Southeast Asia's biggest economy, said its top negotiator Airlangga Hartarto was en route to Washington on Tuesday from a Brazil summit of the BRICS grouping and would hold talks with U.S. officials right away.
"There is still space for negotiations," said Haryo Limanseto, a spokesperson of the coordinating ministry of economic affairs. "The Indonesian government is maximising those negotiation chances."
G20 economy Indonesia had offered Washington a raft of concessions early on in talks, plus offers to boost investment in the United States.
More recently it has made a slew of offers to buy more energy, commodities, and aircraft from American companies in a deal that could go as high as $34 billion.
Yet the tariffs could still prove expensive for the world's biggest exporter of palm oil, which supplies about 85% of U.S. imports of the edible oil.
U.S. shipments could fall 15% to 20% because of the tariffs, and cost Indonesia the loss of market share to rival Malaysia, as well as other vegetable oils, Hadi Sugeng, the secretary general of its palm oil association, told Reuters.
Thailand, the world's second largest exporter of rice, could also suffer a 20% reduction in demand from the U.S. market, its rice exporters' association said, while facing greater competition from third-largest shipper Vietnam. Reuters
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Indonesia palm oil exports to US may fall due to tariffs, industry group says
JAKARTA, July 8 (Reuters) - Indonesian palm oil exports to the United States may fall due to the 32% tariffs threatened on Indonesian goods, allowing competitors in Malaysia to gain market share, an industry official told Reuters on Tuesday.
The two countries are the world's biggest palm oil producers, but Indonesia has been by far the biggest supplier to the United States, accounting for 85% of its total imports last year.
But if the new tariff comes into effect, it could lead to a 15%-20% drop in Indonesian palm oil shipments to the United States, said Hadi Sugeng, secretary general of the Indonesia Palm Oil Association.
"The competitiveness of palm oil will decline against other vegetable oils such as soybean oil and rapeseed oil, especially if countries exporting these vegetable oils receive lower tariffs," he added.
Overall, Indonesia exported 29.5 million tons of palm oil products in 2024. Exports to the United States stood at an average of 2.25 million metric tons per year over the past three years, Hadi said.
Indonesia's top negotiator is headed to Washington on Tuesday to meet with trade representatives of the United States, an economic ministry official said.
Malaysian palm oil faces a lower tariff of 25%, giving producers an advantage over their Indonesian counterparts.
Speaking on Tuesday, Malaysia's plantations and commodities minister Johari Abdul Ghani said U.S. importers would have to bear the cost of additional tariffs on palm oil.
He said there was was no alternative to palm oil in the U.S. as soybeans cannot be converted into oleochemicals, plant-based products used in toothpastes and detergents.
"I think it's a non-competition. If they charge us 25%, ultimately the person who is going to pay for it will be the Americans," he said. Reuters
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‘No palm oil’ label is misleading marketing tactic, says IFBA
The Indian Food and Beverage Association (IFBA) has termed the growing trend of “No Palm Oil” labels on consumer products as misleading and described it as a marketing gimmick rather than a scientifically backed health claim.
In a statement issued on Tuesday, the association expressed concern that selective branding tactics were creating confusion among consumers, despite palm oil being widely used and consumed in India since the 19th century.
“Palm oil has a recognised role in a healthy and balanced diet. Despite this, labels such as ‘No Palm Oil’ mislead consumers by prioritising marketing over science,” said Deepak Jolly, Chairperson of the IFBA, citing the Ministry of Health’s dietary guidelines.
The association pointed out that palm oil is among the most affordable and versatile edible oils, used extensively by leading global brands due to its long shelf life and nutritional stability.
It also cautioned that the rise of such labelling practices is encouraging consumers to make food choices based on social media trends rather than verified scientific evidence. “These narratives distract from the importance of overall nutritional balance and can undermine India’s efforts towards self-reliance, ultimately harming farmers, producers, consumers and the national economy,” Jolly said.
India consumes about 26 million tonnes of edible oil every year, of which nearly 9 million tonnes is palm oil.
Shilpa Agrawal, Director of Scientific and Regulatory Affairs at IFBA, noted that the Dietary Guidelines for Indians–2024, released by the ICMR–National Institute of Nutrition, recognise the role of tocotrienols found in palm oil in lowering cholesterol and supporting heart health. The guidelines recommend a rotation of edible oils, including palm oil, to maintain a balanced fatty acid profile, she added.
The association also lauded the government’s National Mission on Edible Oils–Oil Palm (NMEO-OP), launched in 2021 with an outlay of ₹11,040 crore, which aims to expand oil palm cultivation and reduce India’s dependence on edible oil imports.
“Consumers should be cautious of influencers who exaggerate claims without understanding nutrition science. Marketing tactics such as ‘Palm Oil Free’ labels are no substitute for balanced dietary advice,” the IFBA said. DD News
July 07, 2025
Palm oil markets roiled by biofuel rules and geopolitical shocks
Indonesia's domestic use tightens supply; Malaysia seeks new markets in response to volatility
SINGAPORE/JAKARTA/KUALA LUMPUR -- Palm oil prices are jumpy this year, with markets rattled by geopolitical tensions and shifting biofuel policies that are reshaping markets for one of Southeast Asia's most important commodities.
Indonesia and Malaysia, which together produce 85% of the world's palm oil, face rising uncertainty from U.S. tariffs and the European Union's anti-deforestation law, which takes effect in December. The recent conflict between Iran and Israel has fueled still more volatility.
Although supply has recovered in recent months, analysts and industry players expect palm oil prices to stay fluid this year and into 2026, with potential changes to Indonesia's biodiesel mandate and tightening sustainability rules clouding the outlook.
"The palm oil market is navigating a storm of overhead pressure," said Atef Souki, head of palm oil derivatives at financial services company Marex, noting how U.S. tariffs are shifting trade flows. "We expect continued swings in palm oil prices, tied to both geopolitical shocks and supply adjustments."
Used in a variety of food products ranging from cooking oil and margarine to instant noodles, palm oil is the most consumed vegetable oil and remains particularly popular in Asian markets such as Indonesia, India and China. The highly versatile commodity is also used in cosmetics and biofuels.
But palm oil prices have faced a turbulent year. The benchmark Malaysia-listed front-month crude palm oil (CPO) futures contract ended the first half of the year at 3,986 ringgit ($942) per metric ton, down 18% through June 26, as production recovered from earlier weather disruptions in Indonesia and Malaysia.
The sharp decline followed a surge earlier this year driven by Indonesia's so-called B40 biodiesel mandate, which requires a 40% palm oil blend in diesel fuel. The policy, which aims to curb both the country's rising oil import bill and carbon emissions, has lifted domestic demand and limited exports.
For the rest of the year, Fitch Solutions' BMI said in a July 1 report that it expects palm oil prices to trade between 3,800 and 4,000 ringgit per ton, bringing the average annual price to 4,150 ringgit. Prices are forecast to ease in 2026, to 4,075 ringgit on average.
But a brief price spike last month underscored how sensitive the market remains to external shocks. Front-month Malaysian palm oil prices rose around 6% between June 12 and June 16, following the outbreak of the Israel-Iran war. The conflict pushed up global oil prices and renewed interest in alternative fuels such as palm-based biodiesel. Crude oil prices have settled down since the de-escalation of the conflict and palm oil prices have as well.
"As a key biofuel feedstock, palm oil prices remain closely linked to crude oil," said Matthew Biggin, senior commodities analyst at BMI. "Any sharp increase in crude prices due to geopolitical events will continue to provide support to the palm oil market."
More importantly, the June rally coincided with major policy shifts in the U.S. The Environmental Protection Agency has proposed raising the biofuel blending requirements for diesel and petrol by 8% to a record 24 billion gallons (90.8 billion liters) in 2026, including a 67% surge in biomass-based diesel targets. Although palm oil is not used in U.S. biofuels, higher demand for soybean oil used in U.S. biodiesel tightens global edible oil supplies, indirectly raising palm oil prices.
Palm oil is vital to Southeast Asia's economies. In Indonesia, the world's top producer, it contributes 3% to 4% to gross domestic product and supports millions of jobs. In Malaysia, it is the leading agricultural export. With the two countries accounting for nearly 90% of global exports, BMI warns the market faces "concentrated exposure" to weather risks in the region.
Despite the earlier volatility, analysts say the market has found support from inventories, policy-driven demand and energy market spillovers. "We now expect prices to fluctuate within a range, going forward, rather than continuing the sharp decline seen in the first half of 2025," said Sunny Nguyen, an economist at Moody's Analytics.
In May, Malaysia's palm oil stockpiles rose to almost 2 million tons, their third straight month of increases and the highest level in eight months. The latest data from Indonesia's Palm Oil Association, known as GAPKI, showed inventories jumped 51% in April from the previous month, reaching their highest level since May last year.
At the same time, analysts warn the industry faces significant unknowns. Hedgepoint Global Markets, a risk management specialist, points to multiple structural risks and a "highly fluid" outlook, citing, in particular, changing biodiesel regulations in Indonesia.
Indonesia is considering raising its biodiesel blend to B50 as soon as next year, a move that could increase domestic palm oil consumption by 1 million to 2 million tons annually, according to Hedgepoint. The shift "would likely reduce export volumes and tighten global stocks" across the regional market.
Indonesian watchdog Sawit Watch has raised concerns over the higher biodiesel mandate, warning that pushing the policy without sufficient supply could lead to price spikes, as happened in 2022 and 2023.
Despite growing domestic consumption, Indonesia's palm oil output has remained stagnant over the past six years, ranging from 51.2 million tons to 54.8 million tons annually. Industry group GAPKI expects supply to remain relatively flat this year, with annual growth estimated at around 3%.
To boost production, the Indonesian government is encouraging replanting, particularly among small farmers. In 2024, only around 38,000 hectares were rejuvenated, just slightly over a half of the initial target of 70,000 hectares. This year, it has set a significantly higher target of 180,000 hectares for smallholder oil palm rejuvenation. Nikkei Asia
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Dakshina Kannada farmers embrace oil palm cultivation for high returns, low investment
Mangaluru, Jul 7: In a shift from their traditional betel nut (areca) cultivation, farmers in Dakshina Kannada (DK) are increasingly turning towards oil palm (taale) farming as a supplementary crop. This move, gaining traction in recent years, is driven by the promise of high profits with relatively low investment.
Oil palm fruits are harvested around May, after which farmers collect and store them at convenient locations before handing them over to government-designated companies for oil extraction. This long-standing system in the coastal district has now gained renewed interest
Currently, around 200 farmers in the district are engaged in oil palm cultivation, producing nearly 2,000 tonnes annually. The market price for oil palm fruit stands at approximately Rs 18 per kg. However, with the central government recently slashing import duties on edible oils by 10%, a slight dip in prices is expected.
Still, farmers remain optimistic, cultivating oil palms both alongside betel nut trees and in separate plots. The crop’s minimum capital requirement and consistent returns, regardless of price fluctuations, make it an appealing alternative.
The harvested oil palm fruits are procured by Triple F Company, appointed by the Horticulture Department, and are sent to the oil extraction facility in Bagalkote. Presently, the district can supply up to 2,000 tonnes per day. If this daily production reaches 5,000 tonnes, there is potential to establish a local oil processing unit within the district itself.
Alongside Dakshina Kannada, oil palm is also cultivated in Shivamogga, Udupi, and Chikkamagaluru districts. To better organize farmers, a dedicated growers’ society has been established. As domestic oil palm production falls short of national demand, India continues to import from countries such as Malaysia, Indonesia, and parts of Africa.
Palm oil is in high demand across the food processing industry. It is a key ingredient in baked goods like biscuits and chocolates. During processing, the oil extracted from palm fruit initially has a red hue, which is later turned yellow through a refining process involving a minimal use of chemicals.
Farmers in Dakshina Kannada are now paving the way for a sustainable and profitable future by integrating oil palm cultivation into their agricultural practices, contributing significantly to both the local economy and the national food industry. Daiji World
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Achieve higher income through oil palm cultivation: MLA
Mahabubabad: “Farmers should switch to oil palm cultivation to earn higher income,” appealed Dr Bhukya Murali Naik, MLA of Mahabubabad. On Saturday, he participated in an awareness programme on oil palm and horticultural crops organised by the district horticulture and sericulture department in Parvathagiri village of Mahabubabad mandal.
On this occasion, the MLA advised farmers to make good use of the subsidies provided by the government and cultivate oil palm to earn an income of one lakh rupees per acre. He stated that more than 8,000 acres in Mahabubabad district are under oil palm cultivation, and in 1,350 acres, the yield has already started, with each farmer earning around one lakh rupees per acre. For the current year, a target of 4,500 acres has been set, and so far, farmers have received permission to plant saplings in 663 acres.
District Horticulture and Sericulture Officer G Mariyanna suggested that farmers plant oil palm saplings on the boundaries of their fields and in backyards. He recommended cultivating all types of vegetables in orchards, on terraces, and in front of houses for daily needs. He emphasised using good management practices in vegetable cultivation, including new methods of farming, raised beds, mulching, drip irrigation, fertigation, and others.
https://www.thehansindia.com/telangana/achieve-higher-income-through-oil-palm-cultivation-mla-985590
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Presco Plc Shareholders Set to Receive N42 Dividend as Company Thrives
Presco Plc, Nigeria’s palm oil company, has declared a dividend of N42 per share for the year ended December 31, 2024. The dividend payment is scheduled for August 6, 2025. Shareholders who have completed the e-dividend registration and mandated the Registrar will receive their dividends directly into their bank accounts.
The company’s audited financial statements show a 140% surge in after-tax profit to N77.79 billion in 2024, compared to N32.35 billion in 2023. Revenue doubled to N207.5 billion, representing a 102.6% increase from N102.4 billion in 2023. Presco’s profit before tax grew by 128.7% to N113.2 billion
The company’s strong performance is attributed to its agro-industrial operations and strategic market expansion. In August 2024, Presco acquired a 52% equity stake in Ghana Oil Palm Development Company Limited, aligning with its growth strategy. Shareholders’ names must appear on the Register of Members as at July 4, 2025, to qualify for the dividend payment. The Register of Shareholders will be closed from July 7 to 11, 2025. #Presco Plc Shareholders Set to Receive N42 Dividend as Company Thrives, D Market Forces
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Mars launches new fund to fuel sustainability innovation
Snacking giant Mars, Incorporated has launched the Mars Sustainability Investment Fund (MSIF), a new initiative that seeks to support solutions in sustainable agriculture, low-emission ingredients and next-generation packaging.
The $250 million fund ‘aims to provide capital to companies developing cutting-edge solutions that address key industry sustainability challenges’, Mars said in a statement, and will see capital deployed across investment funds and direct investments.
The three pillars of the fund, Advanced Agriculture, Innovative Ingredients and Raw Materials, and Next Generation Packaging build on Mars’ efforts to advance its Sustainable in a Generation strategic plan, the company noted.
Emissions reduction
Mars announced the fund as it reported a 1.9% reduction in greenhouse gas emissions in 2024 compared to its 2015 baseline, while over the same period, net sales have grown by 69%, reaching around $55 billion annually.
The company now operates more than 60 climate-smart agriculture projects around the world, covering 13 crops in 29 countries. These include efforts to transition palm oil farmers to RSPO certification in North Sumatra, which has led to the protection of 8,000 hectares of forest, and the ‘KIND Almond Acres Initiative’, which has led to a 17% increase in water use efficiency.
Under its Moo’ving Dairy Forward Sustainable Dairy Plan, meanwhile, Mars has committed more than $47 million over three years to help reduce emissions in its dairy supply chain, while in Thailand, the Sustainable Aromatic Rice Initiative (SARI) project has both increased production and cut water usage significantly.
‘Meaningful progress’
“I’m pleased to see our continued ability to decouple our business growth from our carbon footprint, while simultaneously investing in innovation and getting behind start-ups that will be creating new solutions and advance breakthroughs to help companies address resilience challenges,” commented Poul Weihrauch, Mars CEO.
“These are important areas to make meaningful progress in helping us to reduce exposure to future environmental risks, and eventually, turn it into profit and competitive advantage. Looking ahead, there will be setbacks – and we must be unafraid to say so – but we will stay focused on making progress, growing our business and reducing the impact we have on the planet by helping everyone thrive.” Sustainability Online
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Interview: Head of Malaysian palm oil producers on ‘unfair’ EUDR listing
Belvinder Kaur Sron, the chief executive officer of the Malaysian Palm Oil Council, speaks to ENDS about why efforts to exempt European commodities from the EU’s anti-deforestation rules could backfire.
Sron: “We feel there were some flaws in how the benchmarking was done.”Photo: MPOC / EE
The EU Deforestation Regulation (EUDR), designed to tackle the sale of goods produced on deforested land, has attracted fierce opposition both within the bloc and beyond since it was approved in 2023.
Under heavy pressure from industry actors and member states, the European Commission proposed an emergency year-long delay to implementing the new rules, giving companies until December this year – or June 2026 for small companies – to demonstrate that commodities including beef, wood, and palm oil that they sell in the EU do not originate from land deforested after 2020.
But that has not been enough to quell the storm. Secondary legislation classifying countries as being at high, standard or low risk of deforestation, which was signed off by member states in May, triggered a fresh barrage of criticism.
Since then, the EPP and far-right groups in the European Parliament successfully pushed through a (non-binding) call last month for the Commission to introduce a ‘negligible risk’ category for countries with “robust legal frameworks, low land-use change dynamics and sustainable land management practices”. Agriculture ministers have made a similar demand.
At the same time, some countries designated as medium risk have questioned the methodology behind the Commission’s benchmarking – and criticised lawmakers’ recent efforts to further shield EU producers.
Belvinder Kaur Sron, who has led the Malaysian Palm Oil Council since 2023, is exasperated at the push for a ‘negligible’ category.
“Now there could be an additional risk factor: no risk,” she tells ENDS Europe. “How many risks do you need? All the EU member states are [already] low risk. How was that decided? Is it a fair assessment? So we’ve got so many questions to ask the EU,” she says.
The decision to designate Malaysia as medium risk was “very surprising”, Sron adds, given the “huge improvement” it has made in tackling deforestation.
“We have been put together with countries like Brazil,” she says. In Brazil, forest clearances have been on the rise, she says. “Whereas, if you take the deforestation data for Malaysia, you just use Global Forest Watch, the deforestation rates have been decreasing.”
“We feel there were some flaws in how the benchmarking was done,” Sron explains. “If the cut-off date for the deforestation risk is 2020, by right, countries like Malaysia should be assessed on how we were improving post 2020 – it should not predate 2020. But surprisingly, the benchmarking they use is from 2015 until 2020.
The Commission has said it intends to review the country benchmarking in 2026, after the UN’s Food and Agriculture Organisation (FOA) publishes updated forest data this October. “Why is it that they couldn’t wait until the FAO new data was published?” Sron asks.
“From what I read and what I hear, it seems like [the EU] made a political decision. But you have to make a decision that’s fair. We are your trading partner, and from the very beginning we said we will be working towards complying with EUDR, [so] be fair to us.”
She adds: “This is something I think Malaysia will be bringing up at the EU [free trade] bilateral agreement negotiations that are taking place… there’s no fairness [in] the way Malaysia was benchmarked.”
When it comes to complying with EUDR, Sron says work is underway to make sure Malaysian palm oil producers – particularly smallholders – are fully on board. “It’s extremely difficult,” she says. “It’s not that we don’t want to do it. We would like to comply, but we just need more time to make sure that everyone is on board. We hope that we are all well prepared by the end of this year.”
The requirement for geolocating each plot is proving to be the major hurdle, Sron adds.
“That’s going to cost us a lot. Because forestry resides with the states in Malaysia, we have to consult the states for the data and for the information and to get permission.”
For smallholders the picture is even more complicated. “People told us: ‘oh, just get a smartphone and get satellite imagery’. It doesn’t work like that,” Sron says. “These are farmers that are 50 years, 60 years and above. They don’t have access to a smartphone. They don’t have internet access [or it is] very, very erratic in rural areas – and most of the time it is… the government agencies that have to go in to assist them.”
The impact of the EUDR is already being felt across the global commodity market, Sron adds, with buyers from across the world asking for proof of compliance with the EU rules. “We are being told: ‘you need to make sure that you are EUDR compliant’,” she says. “So there’s no way of circumventing all these requirements that are coming out from Europe. It’s bound to happen in other markets. It’s just that the benchmarking system is… creating the problem.”
[email protected]/ ENDS Europe
Palm oil markets roiled by biofuel rules and geopolitical shocks
Indonesia's domestic use tightens supply; Malaysia seeks new markets in response to volatility
SINGAPORE/JAKARTA/KUALA LUMPUR -- Palm oil prices are jumpy this year, with markets rattled by geopolitical tensions and shifting biofuel policies that are reshaping markets for one of Southeast Asia's most important commodities.
Indonesia and Malaysia, which together produce 85% of the world's palm oil, face rising uncertainty from U.S. tariffs and the European Union's anti-deforestation law, which takes effect in December. The recent conflict between Iran and Israel has fueled still more volatility.
Although supply has recovered in recent months, analysts and industry players expect palm oil prices to stay fluid this year and into 2026, with potential changes to Indonesia's biodiesel mandate and tightening sustainability rules clouding the outlook.
"The palm oil market is navigating a storm of overhead pressure," said Atef Souki, head of palm oil derivatives at financial services company Marex, noting how U.S. tariffs are shifting trade flows. "We expect continued swings in palm oil prices, tied to both geopolitical shocks and supply adjustments."
Used in a variety of food products ranging from cooking oil and margarine to instant noodles, palm oil is the most consumed vegetable oil and remains particularly popular in Asian markets such as Indonesia, India and China. The highly versatile commodity is also used in cosmetics and biofuels.
But palm oil prices have faced a turbulent year. The benchmark Malaysia-listed front-month crude palm oil (CPO) futures contract ended the first half of the year at 3,986 ringgit ($942) per metric ton, down 18% through June 26, as production recovered from earlier weather disruptions in Indonesia and Malaysia.
The sharp decline followed a surge earlier this year driven by Indonesia's so-called B40 biodiesel mandate, which requires a 40% palm oil blend in diesel fuel. The policy, which aims to curb both the country's rising oil import bill and carbon emissions, has lifted domestic demand and limited exports.
For the rest of the year, Fitch Solutions' BMI said in a July 1 report that it expects palm oil prices to trade between 3,800 and 4,000 ringgit per ton, bringing the average annual price to 4,150 ringgit. Prices are forecast to ease in 2026, to 4,075 ringgit on average.
But a brief price spike last month underscored how sensitive the market remains to external shocks. Front-month Malaysian palm oil prices rose around 6% between June 12 and June 16, following the outbreak of the Israel-Iran war. The conflict pushed up global oil prices and renewed interest in alternative fuels such as palm-based biodiesel. Crude oil prices have settled down since the de-escalation of the conflict and palm oil prices have as well.
"As a key biofuel feedstock, palm oil prices remain closely linked to crude oil," said Matthew Biggin, senior commodities analyst at BMI. "Any sharp increase in crude prices due to geopolitical events will continue to provide support to the palm oil market."
More importantly, the June rally coincided with major policy shifts in the U.S. The Environmental Protection Agency has proposed raising the biofuel blending requirements for diesel and petrol by 8% to a record 24 billion gallons (90.8 billion liters) in 2026, including a 67% surge in biomass-based diesel targets. Although palm oil is not used in U.S. biofuels, higher demand for soybean oil used in U.S. biodiesel tightens global edible oil supplies, indirectly raising palm oil prices.
Palm oil is vital to Southeast Asia's economies. In Indonesia, the world's top producer, it contributes 3% to 4% to gross domestic product and supports millions of jobs. In Malaysia, it is the leading agricultural export. With the two countries accounting for nearly 90% of global exports, BMI warns the market faces "concentrated exposure" to weather risks in the region.
Despite the earlier volatility, analysts say the market has found support from inventories, policy-driven demand and energy market spillovers. "We now expect prices to fluctuate within a range, going forward, rather than continuing the sharp decline seen in the first half of 2025," said Sunny Nguyen, an economist at Moody's Analytics.
In May, Malaysia's palm oil stockpiles rose to almost 2 million tons, their third straight month of increases and the highest level in eight months. The latest data from Indonesia's Palm Oil Association, known as GAPKI, showed inventories jumped 51% in April from the previous month, reaching their highest level since May last year.
At the same time, analysts warn the industry faces significant unknowns. Hedgepoint Global Markets, a risk management specialist, points to multiple structural risks and a "highly fluid" outlook, citing, in particular, changing biodiesel regulations in Indonesia.
Indonesia is considering raising its biodiesel blend to B50 as soon as next year, a move that could increase domestic palm oil consumption by 1 million to 2 million tons annually, according to Hedgepoint. The shift "would likely reduce export volumes and tighten global stocks" across the regional market.
Indonesian watchdog Sawit Watch has raised concerns over the higher biodiesel mandate, warning that pushing the policy without sufficient supply could lead to price spikes, as happened in 2022 and 2023.
Despite growing domestic consumption, Indonesia's palm oil output has remained stagnant over the past six years, ranging from 51.2 million tons to 54.8 million tons annually. Industry group GAPKI expects supply to remain relatively flat this year, with annual growth estimated at around 3%.
To boost production, the Indonesian government is encouraging replanting, particularly among small farmers. In 2024, only around 38,000 hectares were rejuvenated, just slightly over a half of the initial target of 70,000 hectares. This year, it has set a significantly higher target of 180,000 hectares for smallholder oil palm rejuvenation. Nikkei Asia
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Dakshina Kannada farmers embrace oil palm cultivation for high returns, low investment
Mangaluru, Jul 7: In a shift from their traditional betel nut (areca) cultivation, farmers in Dakshina Kannada (DK) are increasingly turning towards oil palm (taale) farming as a supplementary crop. This move, gaining traction in recent years, is driven by the promise of high profits with relatively low investment.
Oil palm fruits are harvested around May, after which farmers collect and store them at convenient locations before handing them over to government-designated companies for oil extraction. This long-standing system in the coastal district has now gained renewed interest
Currently, around 200 farmers in the district are engaged in oil palm cultivation, producing nearly 2,000 tonnes annually. The market price for oil palm fruit stands at approximately Rs 18 per kg. However, with the central government recently slashing import duties on edible oils by 10%, a slight dip in prices is expected.
Still, farmers remain optimistic, cultivating oil palms both alongside betel nut trees and in separate plots. The crop’s minimum capital requirement and consistent returns, regardless of price fluctuations, make it an appealing alternative.
The harvested oil palm fruits are procured by Triple F Company, appointed by the Horticulture Department, and are sent to the oil extraction facility in Bagalkote. Presently, the district can supply up to 2,000 tonnes per day. If this daily production reaches 5,000 tonnes, there is potential to establish a local oil processing unit within the district itself.
Alongside Dakshina Kannada, oil palm is also cultivated in Shivamogga, Udupi, and Chikkamagaluru districts. To better organize farmers, a dedicated growers’ society has been established. As domestic oil palm production falls short of national demand, India continues to import from countries such as Malaysia, Indonesia, and parts of Africa.
Palm oil is in high demand across the food processing industry. It is a key ingredient in baked goods like biscuits and chocolates. During processing, the oil extracted from palm fruit initially has a red hue, which is later turned yellow through a refining process involving a minimal use of chemicals.
Farmers in Dakshina Kannada are now paving the way for a sustainable and profitable future by integrating oil palm cultivation into their agricultural practices, contributing significantly to both the local economy and the national food industry. Daiji World
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Achieve higher income through oil palm cultivation: MLA
Mahabubabad: “Farmers should switch to oil palm cultivation to earn higher income,” appealed Dr Bhukya Murali Naik, MLA of Mahabubabad. On Saturday, he participated in an awareness programme on oil palm and horticultural crops organised by the district horticulture and sericulture department in Parvathagiri village of Mahabubabad mandal.
On this occasion, the MLA advised farmers to make good use of the subsidies provided by the government and cultivate oil palm to earn an income of one lakh rupees per acre. He stated that more than 8,000 acres in Mahabubabad district are under oil palm cultivation, and in 1,350 acres, the yield has already started, with each farmer earning around one lakh rupees per acre. For the current year, a target of 4,500 acres has been set, and so far, farmers have received permission to plant saplings in 663 acres.
District Horticulture and Sericulture Officer G Mariyanna suggested that farmers plant oil palm saplings on the boundaries of their fields and in backyards. He recommended cultivating all types of vegetables in orchards, on terraces, and in front of houses for daily needs. He emphasised using good management practices in vegetable cultivation, including new methods of farming, raised beds, mulching, drip irrigation, fertigation, and others.
https://www.thehansindia.com/telangana/achieve-higher-income-through-oil-palm-cultivation-mla-985590
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Presco Plc Shareholders Set to Receive N42 Dividend as Company Thrives
Presco Plc, Nigeria’s palm oil company, has declared a dividend of N42 per share for the year ended December 31, 2024. The dividend payment is scheduled for August 6, 2025. Shareholders who have completed the e-dividend registration and mandated the Registrar will receive their dividends directly into their bank accounts.
The company’s audited financial statements show a 140% surge in after-tax profit to N77.79 billion in 2024, compared to N32.35 billion in 2023. Revenue doubled to N207.5 billion, representing a 102.6% increase from N102.4 billion in 2023. Presco’s profit before tax grew by 128.7% to N113.2 billion
The company’s strong performance is attributed to its agro-industrial operations and strategic market expansion. In August 2024, Presco acquired a 52% equity stake in Ghana Oil Palm Development Company Limited, aligning with its growth strategy. Shareholders’ names must appear on the Register of Members as at July 4, 2025, to qualify for the dividend payment. The Register of Shareholders will be closed from July 7 to 11, 2025. #Presco Plc Shareholders Set to Receive N42 Dividend as Company Thrives, D Market Forces
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Mars launches new fund to fuel sustainability innovation
Snacking giant Mars, Incorporated has launched the Mars Sustainability Investment Fund (MSIF), a new initiative that seeks to support solutions in sustainable agriculture, low-emission ingredients and next-generation packaging.
The $250 million fund ‘aims to provide capital to companies developing cutting-edge solutions that address key industry sustainability challenges’, Mars said in a statement, and will see capital deployed across investment funds and direct investments.
The three pillars of the fund, Advanced Agriculture, Innovative Ingredients and Raw Materials, and Next Generation Packaging build on Mars’ efforts to advance its Sustainable in a Generation strategic plan, the company noted.
Emissions reduction
Mars announced the fund as it reported a 1.9% reduction in greenhouse gas emissions in 2024 compared to its 2015 baseline, while over the same period, net sales have grown by 69%, reaching around $55 billion annually.
The company now operates more than 60 climate-smart agriculture projects around the world, covering 13 crops in 29 countries. These include efforts to transition palm oil farmers to RSPO certification in North Sumatra, which has led to the protection of 8,000 hectares of forest, and the ‘KIND Almond Acres Initiative’, which has led to a 17% increase in water use efficiency.
Under its Moo’ving Dairy Forward Sustainable Dairy Plan, meanwhile, Mars has committed more than $47 million over three years to help reduce emissions in its dairy supply chain, while in Thailand, the Sustainable Aromatic Rice Initiative (SARI) project has both increased production and cut water usage significantly.
‘Meaningful progress’
“I’m pleased to see our continued ability to decouple our business growth from our carbon footprint, while simultaneously investing in innovation and getting behind start-ups that will be creating new solutions and advance breakthroughs to help companies address resilience challenges,” commented Poul Weihrauch, Mars CEO.
“These are important areas to make meaningful progress in helping us to reduce exposure to future environmental risks, and eventually, turn it into profit and competitive advantage. Looking ahead, there will be setbacks – and we must be unafraid to say so – but we will stay focused on making progress, growing our business and reducing the impact we have on the planet by helping everyone thrive.” Sustainability Online
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Interview: Head of Malaysian palm oil producers on ‘unfair’ EUDR listing
Belvinder Kaur Sron, the chief executive officer of the Malaysian Palm Oil Council, speaks to ENDS about why efforts to exempt European commodities from the EU’s anti-deforestation rules could backfire.
Sron: “We feel there were some flaws in how the benchmarking was done.”Photo: MPOC / EE
The EU Deforestation Regulation (EUDR), designed to tackle the sale of goods produced on deforested land, has attracted fierce opposition both within the bloc and beyond since it was approved in 2023.
Under heavy pressure from industry actors and member states, the European Commission proposed an emergency year-long delay to implementing the new rules, giving companies until December this year – or June 2026 for small companies – to demonstrate that commodities including beef, wood, and palm oil that they sell in the EU do not originate from land deforested after 2020.
But that has not been enough to quell the storm. Secondary legislation classifying countries as being at high, standard or low risk of deforestation, which was signed off by member states in May, triggered a fresh barrage of criticism.
Since then, the EPP and far-right groups in the European Parliament successfully pushed through a (non-binding) call last month for the Commission to introduce a ‘negligible risk’ category for countries with “robust legal frameworks, low land-use change dynamics and sustainable land management practices”. Agriculture ministers have made a similar demand.
At the same time, some countries designated as medium risk have questioned the methodology behind the Commission’s benchmarking – and criticised lawmakers’ recent efforts to further shield EU producers.
Belvinder Kaur Sron, who has led the Malaysian Palm Oil Council since 2023, is exasperated at the push for a ‘negligible’ category.
“Now there could be an additional risk factor: no risk,” she tells ENDS Europe. “How many risks do you need? All the EU member states are [already] low risk. How was that decided? Is it a fair assessment? So we’ve got so many questions to ask the EU,” she says.
The decision to designate Malaysia as medium risk was “very surprising”, Sron adds, given the “huge improvement” it has made in tackling deforestation.
“We have been put together with countries like Brazil,” she says. In Brazil, forest clearances have been on the rise, she says. “Whereas, if you take the deforestation data for Malaysia, you just use Global Forest Watch, the deforestation rates have been decreasing.”
“We feel there were some flaws in how the benchmarking was done,” Sron explains. “If the cut-off date for the deforestation risk is 2020, by right, countries like Malaysia should be assessed on how we were improving post 2020 – it should not predate 2020. But surprisingly, the benchmarking they use is from 2015 until 2020.
The Commission has said it intends to review the country benchmarking in 2026, after the UN’s Food and Agriculture Organisation (FOA) publishes updated forest data this October. “Why is it that they couldn’t wait until the FAO new data was published?” Sron asks.
“From what I read and what I hear, it seems like [the EU] made a political decision. But you have to make a decision that’s fair. We are your trading partner, and from the very beginning we said we will be working towards complying with EUDR, [so] be fair to us.”
She adds: “This is something I think Malaysia will be bringing up at the EU [free trade] bilateral agreement negotiations that are taking place… there’s no fairness [in] the way Malaysia was benchmarked.”
When it comes to complying with EUDR, Sron says work is underway to make sure Malaysian palm oil producers – particularly smallholders – are fully on board. “It’s extremely difficult,” she says. “It’s not that we don’t want to do it. We would like to comply, but we just need more time to make sure that everyone is on board. We hope that we are all well prepared by the end of this year.”
The requirement for geolocating each plot is proving to be the major hurdle, Sron adds.
“That’s going to cost us a lot. Because forestry resides with the states in Malaysia, we have to consult the states for the data and for the information and to get permission.”
For smallholders the picture is even more complicated. “People told us: ‘oh, just get a smartphone and get satellite imagery’. It doesn’t work like that,” Sron says. “These are farmers that are 50 years, 60 years and above. They don’t have access to a smartphone. They don’t have internet access [or it is] very, very erratic in rural areas – and most of the time it is… the government agencies that have to go in to assist them.”
The impact of the EUDR is already being felt across the global commodity market, Sron adds, with buyers from across the world asking for proof of compliance with the EU rules. “We are being told: ‘you need to make sure that you are EUDR compliant’,” she says. “So there’s no way of circumventing all these requirements that are coming out from Europe. It’s bound to happen in other markets. It’s just that the benchmarking system is… creating the problem.”
[email protected]/ ENDS Europe
July 06, 2025
Judicial review of the immunity clause for prosecutors in the Prosecutor's Law debated in Indonesia's high courts
The courtroom of the Constitutional Court, which is usually cold, felt slightly warmer with the exchange of arguments between representatives of the Indonesian National Police and the Attorney General's Office. Nine constitutional judges listened attentively, as did the petitioners for the judicial review of the immunity clause for prosecutors in the Prosecutor's Law. The Chief Justice of the Constitutional Court, Suhartoyo, smiled occasionally to lighten the atmosphere and requested the prosecution not to be provoked.
"This matter becomes lengthy once it reaches the investigation stage. Mr. Eben, be patient. Don't get heated," said Suhartoyo to the representative of the prosecutor's office, Leonard Eben Ezer Simanjuntak, Head of the Education and Training Agency of the Attorney General's Office.
Although wrapped in polite legal language, the tension between the prosecution and the police is evident when highlighting the fundamental differences in views regarding the issue of legal immunity for prosecutors and the coordination of law enforcement in connectivity cases. Both institutions are involved in three cases concerning the judicial review of the Prosecutor's Law, which maintains the immunity rights of prosecutors during enforcement actions (Article 8 Paragraph (5)), and the authority of the Attorney General to coordinate, control, and conduct investigations, inquiries, and prosecutions in connectivity cases (Article 35 Paragraph (1) letter g).
The case was filed by a number of advocates and students. Several articles were questioned, including Article 8 Paragraph (5) of the Attorney General's Law which reads: "In carrying out his duties and authorities, summons, examination, searches, arrests and detention of prosecutors may only be carried out with the permission of the Attorney General." Read more at Kompas
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Indonesians Now Trust Prosecutors More Than KPK, New Survey Reveals
Jakarta. The Attorney General’s Office has emerged as the most trusted law enforcement institution in Indonesia, overtaking both the Corruption Eradication Commission (KPK) and the National Police, according to the latest survey by the Indonesian Survey Institute (LSI), led by political analyst Denny Januar Ali.
The LSI survey conducted in June found that 61 percent of respondents expressed trust in the Attorney General’s Office, slightly ahead of the KPK at 60 percent, and the National Police at 54.3 percent.
“For the first time in over a decade, the Attorney General’s Office has been named the most trusted law enforcement agency by the Indonesian public,” Denny said in a written statement on Saturday.
“This is not merely a statistical outcome, but a reflection of the public’s collective psychology -- of who they believe is genuinely fighting corruption,” he added.
Under the leadership of Attorney General Sanitiar Burhanuddin, the office has prosecuted several major corruption cases, including the high-profile national broadband scandal involving then-Communications Minister Johnny Plate. He became the first sitting minister to be named a graft suspect by the Attorney General’s Office.
The institution has also pursued cases involving fuel adulteration at Pertamina, illegal mining on state-owned tin mining land Timah, illicit palm oil exports, and unauthorized pure gold production linked to mining company Aneka Tambang (Antam).
These efforts have resulted in the recovery of hundreds of trillions of rupiah in state losses from seized assets and restitution paid by suspects and convicted individuals.
“In a time of public disillusionment, the Attorney General’s Office has emerged as a new face of justice -- not without flaws, but with the courage to restore hope,” Denny said. Jakarta Globe
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Sarawak trade hits RM198.7 bln with RM71.1 bln surplus in 2024 amid global uncertainties
KUCHING, July 5: Despite facing external uncertainties such as global market fluctuations and geopolitical tensions, Sarawak recorded a total trade of RM198.7 billion and a trade surplus of RM71.1 billion in 2024.
According to Bernama, the Department of Statistics Malaysia’s (DoSM) chief statistician, Datuk Seri Dr Mohd Uzir Mahidin, said this was due to higher commodity prices, particularly crude palm oil, supported by firm global demand.
In addition, major exports, including palm oil, liquefied natural gas (LNG), and crude petroleum, continued to remain strong, thereby driving trade growth.
“In 2024, Sarawak recorded RM198.7 billion, marking an increase of 2.7 per cent compared to 2023. The trade balance also grew by 4.2 per cent to RM71.1 billion.
“Both exports and imports showed an upward trend. Exports expanded by 3.1 per cent to RM134.9 billion while imports surged by 1.9 per cent to RM63.8 billion,” he said.
In terms of major export destinations in 2024, the top five spots went to Japan, China, South Korea, Peninsular Malaysia, and India, with Japan and China accounting for 35.1 per cent of the State’s total exports, valued at RM47.3 billion.
Exports to Japan reached RM29.1 billion, a 1.4 per cent increase year-on-year, with the main products exported being LNG, valued at RM25.4 billion, followed by wood products, valued at RM1.4 billion, and iron and steel products, at RM0.8 billion.
Meanwhile, exports to China were valued at RM18.2 billion, accounting for 13.5 per cent of Sarawak’s total exports, a decline of 1.7 per cent or RM0.3 billion compared to the previous year.
LNG remained the primary export product to China, amounting to RM13.5 billion, followed by manufactured metal products at RM1.1 billion, while palm oil and palm-based products amounted to RM0.9 billion. — DayakDaily
Judicial review of the immunity clause for prosecutors in the Prosecutor's Law debated in Indonesia's high courts
The courtroom of the Constitutional Court, which is usually cold, felt slightly warmer with the exchange of arguments between representatives of the Indonesian National Police and the Attorney General's Office. Nine constitutional judges listened attentively, as did the petitioners for the judicial review of the immunity clause for prosecutors in the Prosecutor's Law. The Chief Justice of the Constitutional Court, Suhartoyo, smiled occasionally to lighten the atmosphere and requested the prosecution not to be provoked.
"This matter becomes lengthy once it reaches the investigation stage. Mr. Eben, be patient. Don't get heated," said Suhartoyo to the representative of the prosecutor's office, Leonard Eben Ezer Simanjuntak, Head of the Education and Training Agency of the Attorney General's Office.
Although wrapped in polite legal language, the tension between the prosecution and the police is evident when highlighting the fundamental differences in views regarding the issue of legal immunity for prosecutors and the coordination of law enforcement in connectivity cases. Both institutions are involved in three cases concerning the judicial review of the Prosecutor's Law, which maintains the immunity rights of prosecutors during enforcement actions (Article 8 Paragraph (5)), and the authority of the Attorney General to coordinate, control, and conduct investigations, inquiries, and prosecutions in connectivity cases (Article 35 Paragraph (1) letter g).
The case was filed by a number of advocates and students. Several articles were questioned, including Article 8 Paragraph (5) of the Attorney General's Law which reads: "In carrying out his duties and authorities, summons, examination, searches, arrests and detention of prosecutors may only be carried out with the permission of the Attorney General." Read more at Kompas
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Indonesians Now Trust Prosecutors More Than KPK, New Survey Reveals
Jakarta. The Attorney General’s Office has emerged as the most trusted law enforcement institution in Indonesia, overtaking both the Corruption Eradication Commission (KPK) and the National Police, according to the latest survey by the Indonesian Survey Institute (LSI), led by political analyst Denny Januar Ali.
The LSI survey conducted in June found that 61 percent of respondents expressed trust in the Attorney General’s Office, slightly ahead of the KPK at 60 percent, and the National Police at 54.3 percent.
“For the first time in over a decade, the Attorney General’s Office has been named the most trusted law enforcement agency by the Indonesian public,” Denny said in a written statement on Saturday.
“This is not merely a statistical outcome, but a reflection of the public’s collective psychology -- of who they believe is genuinely fighting corruption,” he added.
Under the leadership of Attorney General Sanitiar Burhanuddin, the office has prosecuted several major corruption cases, including the high-profile national broadband scandal involving then-Communications Minister Johnny Plate. He became the first sitting minister to be named a graft suspect by the Attorney General’s Office.
The institution has also pursued cases involving fuel adulteration at Pertamina, illegal mining on state-owned tin mining land Timah, illicit palm oil exports, and unauthorized pure gold production linked to mining company Aneka Tambang (Antam).
These efforts have resulted in the recovery of hundreds of trillions of rupiah in state losses from seized assets and restitution paid by suspects and convicted individuals.
“In a time of public disillusionment, the Attorney General’s Office has emerged as a new face of justice -- not without flaws, but with the courage to restore hope,” Denny said. Jakarta Globe
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Sarawak trade hits RM198.7 bln with RM71.1 bln surplus in 2024 amid global uncertainties
KUCHING, July 5: Despite facing external uncertainties such as global market fluctuations and geopolitical tensions, Sarawak recorded a total trade of RM198.7 billion and a trade surplus of RM71.1 billion in 2024.
According to Bernama, the Department of Statistics Malaysia’s (DoSM) chief statistician, Datuk Seri Dr Mohd Uzir Mahidin, said this was due to higher commodity prices, particularly crude palm oil, supported by firm global demand.
In addition, major exports, including palm oil, liquefied natural gas (LNG), and crude petroleum, continued to remain strong, thereby driving trade growth.
“In 2024, Sarawak recorded RM198.7 billion, marking an increase of 2.7 per cent compared to 2023. The trade balance also grew by 4.2 per cent to RM71.1 billion.
“Both exports and imports showed an upward trend. Exports expanded by 3.1 per cent to RM134.9 billion while imports surged by 1.9 per cent to RM63.8 billion,” he said.
In terms of major export destinations in 2024, the top five spots went to Japan, China, South Korea, Peninsular Malaysia, and India, with Japan and China accounting for 35.1 per cent of the State’s total exports, valued at RM47.3 billion.
Exports to Japan reached RM29.1 billion, a 1.4 per cent increase year-on-year, with the main products exported being LNG, valued at RM25.4 billion, followed by wood products, valued at RM1.4 billion, and iron and steel products, at RM0.8 billion.
Meanwhile, exports to China were valued at RM18.2 billion, accounting for 13.5 per cent of Sarawak’s total exports, a decline of 1.7 per cent or RM0.3 billion compared to the previous year.
LNG remained the primary export product to China, amounting to RM13.5 billion, followed by manufactured metal products at RM1.1 billion, while palm oil and palm-based products amounted to RM0.9 billion. — DayakDaily
July 04, 2025
Indonesia raises concern over EU forest rule’s impact on farmers
Jakarta (ANTARA) - Indonesia’s Ministry of Foreign Affairs has raised concerns over the European Union Deforestation Regulation (EUDR), warning that it could disproportionately impact smallholder farmers who produce key export commodities.
“We have discussed this issue before, and among the problems we are currently facing, the most significant impact is on smallholders, especially those involved in rubber, cocoa, coffee, and palm oil,” Deputy Foreign Minister Arif Havas Oegroseno told reporters in Jakarta on Thursday.
He said the regulation could make it more difficult for smallholders to export their goods to the EU, while farmers within the bloc are exempt under a new "negligible risk" classification.
“If this is accepted, it clearly reflects a discriminatory practice. There are rules that apply only to EU farmers, while those outside Europe are treated differently,” he said.
Oegroseno clarified that the EUDR is not part of the ongoing Indonesia–EU Comprehensive Economic Partnership Agreement (IEU–CEPA) talks, but is instead being addressed separately through a coalition of affected nations.
“There is a group called the ‘Like-Minded Countries’ or LMC. So we have our own forum to specifically address this issue,” he added.
When asked whether Indonesia would consider filing a complaint with the World Trade Organization (WTO), Oegroseno said the option remains under review.
“There has been no filing yet. The process is not underway. We don’t know whether it will be accepted. But even European trade experts acknowledge there’s a strong case for non-EU countries to raise this at the WTO,” he said.
On June 4, Indonesia and the EU held a bilateral dialogue in Brussels to discuss the implications of the EUDR. During the meeting, Indonesia officially objected to the regulation’s unilateral adoption, its extraterritorial impact, and the lack of consultation with producing countries.
Indonesia also requested clarification on several points, including the legal basis and methodology for risk classification, recognition of national legality systems, potential conflicts with WTO rules, and administrative burdens on smallholder farmers related to geolocation and digital traceability requirements.
The EU has committed to providing a written response to Indonesia’s questions in the near future. Antara News
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Mondelez calls for EU to delay landmark deforestation law
US chocolate makers are dialling back their support for the environmental regulation under pressure from Washington
Mondelez is lobbying for the implementation of the EU’s deforestation law to be delayed again as US chocolate makers dial back their support for the landmark regulation amid political pressure and unusually high cocoa prices.
The proposed law, due to be implemented at the end of the year, bans imports ranging from cocoa to palm oil from being sold on the EU market if they have come from deforested land.
Cadbury owner Mondelez, which had previously supported the legislation, warned that the chocolate industry was already struggling with “record prices and supply shocks”.
“Further regulatory barriers could undermine the competitiveness of a €70 billion industry — at a time when the EU needs to step up its focus on global competitiveness and economic resilience,” said Massimiliano di Domenico, vice-president of corporate and government affairs for Europe.
“That’s why we strongly believe there is a need for a further delay.”
Mars and Hershey, two other major US chocolate manufacturers, have recently declined to join European counterparts such as Nestlé and Ferrero in signing letters to the European Commission voicing support for the law.
That decision was partly motivated by US President Donald Trump’s antipathy towards environmental rules, according to people involved in drafting the letters.
Mars told the Financial Times it had been “consistent in its support” for the EU’s deforestation law. A person familiar with the company’s position said it opposed a delay.
Hershey said it “continues to support efforts from the [European] commission to ensure this regulation achieves its intended impact of addressing deforestation”.
Chocolate makers have come under heavy strain after unfavourable weather and crop disease in west Africa, the world’s main cocoa growing region, reduced supply and caused cocoa prices to more than triple in just eight months.
Futures in New York have recently fallen from their peak of more than $12,000 per tonne but remain about $4,000 above their usual range.
The EU’s deforestation law, a big piece of its ambitious environmental agenda, has been criticised by bloc agricultural ministers, trading partners and rightwing politicians, many of whom say that it is unfeasible and want it radically watered down.
It was due to come into force at the start of 2025, but Brussels agreed in October to delay its implementation by one year. Companies were issued with additional guidance to help them prepare for the detailed customs information they will have to provide.
Organisations in other sectors such as agriculture and forestry are preparing to issue a statement calling for an amendment to the law in the coming days, according to one industry body involved.
In a letter this week, seen by the Financial Times, European chocolate makers including Ferrero, Nestlé and Tony’s Chocolonely said further delays or changes to the law “would severely undermine one of the EU’s flagship policies for tackling global deforestation and nature degradation”.
Antonie Fountain, managing director of Voice Network, which advocates for sustainable cocoa production, said uncertainty over the law’s implementation was causing chocolate makers “a lot of displeasure.”
“They are saying ‘stop prevaricating so we can get on with it’. [But] some of the American companies will not be saying this in public because they see what happens to those that do stand up for sustainability.”
The US has long opposed the deforestation law. Biden administration officials sent a letter to the commission in June last year saying it posed “critical challenges” to American producers and should be delayed.
EU officials have said recently that the deforestation law is one of several seen as problematic by the US. Others included the Digital Markets Act, which regulates big tech firms, and rules governing methane emissions, they said. Financial Times
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The EUDR Benchmarking list is here - and comes as a surprise
The EU Commission's country benchmarking is an important step for the EUDR, which will apply from the end of 2025, with some surprising country classifications.
The European Union Deforestation Regulation (EUDR) continues to take momentum. On 22 May 2025, the EU Commission published an initial list for country benchmarking, which classifies all countries in the world into three risk categories in order to map the risk of deforestation associated with beef, cocoa, coffee, palm oil, rubber, soy, and timber. These raw materials and their products are often produced on illegally deforested land, which the comprehensive EUDR obligations are intended to prevent.
Countries of origin determine the scope of due diligence and control obligations
In order to map the risk of deforestation in the supply chain of the product concerned as accurately as possible, Article 29 EUDR provides for a risk-based approach. This involves classifying the country of origin of a product into one of three risk categories. The categories are “low risk,” “normal risk,” and “high risk.” Countries are classified primarily according to quantitative criteria. According to the methodology applied by the Commission, the decisive factors are the rate of deforestation and forest degradation, the extent of expansion of agricultural land for relevant commodities, and production trends of relevant commodities and products. In addition, agreements concluded and measures taken by the respective countries to protect against deforestation are taken into account.
However, the assessment carried out according to these criteria not only has an impact on the extent of deforestation but also has direct consequences for the scope of due diligence required under the EUDR. For example, operators and traders enjoy simplified due diligence obligations when sourcing relevant products from “low-risk” countries, as they are required to collect information but not to assess and mitigate risks. However, this only applies if, after assessing the complexity of the supply chain and the risk of circumvention of the regulation or mixing with products of unknown origin, the companies concerned have ensured that the relevant raw materials and products were produced exclusively in low-risk countries.
In addition, the scope of the Member States' control obligations for compliance with the EUDR obligations is also measured according to country benchmarking. The number of operators to be controlled per year is graded according to the three risk categories. Accordingly, Member States shall ensure that at least 1% of operators with products from low-risk countries are controlled each year. For countries with normal risk, this figure is at least 3%; for countries with high risk, it is at least 9%.
Classification of the majority of countries as “low risk” comes as a surprise
The only countries classified as “high risk” are Belarus, North Korea, Myanmar, and Russia. This is mainly because these countries are subject to United Nations or EU sanctions on the import or export of goods covered by the EUDR. Countries classified as “normal risk” are not explicitly listed in the country list published by the Commission, but are considered countries that are neither high nor low risk. Unsurprisingly, the countries classified as low risk include all EU member states and all countries in the European Economic Area. What is surprising, however, is the classification of countries with large areas of rainforest, such as Brazil and Côte d'Ivoire, as “normal risk” countries. The ongoing deforestation in these countries has been known for decades. The rapid deforestation in Brazil prompted the EU Economic and Social Committee to issue a statement in November last year, in which it highlighted the clearing of the Brazilian rainforest and explicitly mentioned the associated ecological risk. It is not reasonable why there is said to be no high risk of deforestation.
Simplification of the EUDR through the back door?
It is suspected that labeling countries with a high risk of deforestation as merely “normal risk” is a way of easing regulatory pressure through the back door. Last year, after strong opposition from affected companies, the EU postponed the implementation of the EUDR by one year, pushing the deadline to the end of 2025. In addition, due diligence and information requirements were to be significantly simplified. Such simplification is apparently also to be achieved indirectly through the country benchmarking that has now been published. Companies that source the affected raw materials from countries with a low risk of deforestation can therefore breathe a sigh of relief. However, it remains to be seen whether the EUDR will still be able to live up to its own ambitions. The question could arise as to whether the EUDR will ultimately just create more bureaucracy. Only the coming years will provide a clear answer to this question. Regardless of this, companies should begin implementing the EUDR as soon as possible in order to fulfill their due diligence obligations and avoid sanctions. Lexology
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Malaysia Succeeds In Attracting RM8.13 Bln Potential Investments From Italy - PM Anwar
ROME, July 3 (Bernama) -- Potential investments worth RM8.13 billion have been achieved through the Malaysia-Italy economic cooperation roundtable meeting and meetings with companies here, said Prime Minister Datuk Seri Anwar Ibrahim.
The roundtable meeting involved the participation of 41 Italian companies and agencies, comprising 23 companies from the manufacturing sector, nine companies from the service sector, two companies from the trade sector as well as five government agencies and two industrial organisations.
“The potential investments achieved through these two meetings are worth RM8.13 billion in the petrochemical, machinery and equipment, electrical and electronics, and oil and gas services and equipment sectors,” he said at a press conference at the end of his visit to Rome, Italy.
Anwar, who is also the Finance Minister, said the potential exports generated were worth RM425 million for oleochemical products, renewable energy, biofuel feedstocks, animal feed additives and food.
The roundtable meeting allowed potential companies in Italy an opportunity to express their desire to collaborate with Malaysian companies in various sectors such as high-tech manufacturing, renewable energy, digital economy and sustainable infrastructure.
Meanwhile, Anwar said that in a bilateral meeting with his counterpart Giorgia Meloni, Rome and Putrajaya would increase cooperation in the energy, solar, geothermal and hydrogen sectors.
Among the collaborations are the Petronas and Eni SpA joint venture in Pengerang, Johor in the sustainable aviation fuel (SAF) sector; Perodua and Magna Styer for electric vehicle batteries; and collaboration and investment in the modernisation of the electricity grid, including the ASEAN Power Grid (APG).
In the discussion, the Prime Minister said he also applied for recognition of the Malaysian Sustainable Palm Oil (MSPO) certification from Italy, in addition to requesting support for a fairer assessment of the European Union Deforestation-Free Products Regulation (EUDR) Implementation.
Malaysia aims to be in the low-risk category in the EUDR benchmark system when the rating is reviewed by 2026.
Meanwhile, Malaysia has also sought Italy's support in concluding negotiations on the Malaysia-European Union Free Trade Agreement (FTA).
The Prime Minister arrived here on Tuesday for a three-day working visit to Italy, the third largest economy in the EU.
The visit was at the invitation of Meloni.
Throughout the visit, Anwar was accompanied by Foreign Minister Datuk Seri Mohamad Hasan, Transport Minister Anthony Loke, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu, Defence Minister Datuk Seri Mohamed Khaled Nordin and Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
Also joining the delegation was Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir.
In 2024, total trade between Malaysia and Italy recorded an increase of two per cent to US$3.18 billion (RM14.61 billion) compared to the same period in 2023.
For the period from January to May 2025, total trade between the two countries continued to show positive performance with an increase of 3.3 per cent to US$1.48 billion (RM6.5 billion) compared to the same period in 2024.
The Prime Minister departed for France for an official visit on July 3 and 4 after concluding his visit to Italy. Bernama
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EFTA MALAYSIA JOINT STATEMENT ON SUSTAINABLE PALM OIL
The EFTA States and Malaysia reaffirm their shared and ongoing commitment to work
together to conserve forests and to support and promote sustainable supply chains, and
sustainable production of commodities.
The EFTA States and Malaysia will continue to uphold their respective commitments to
the UN Framework Convention on Climate Change and the Paris Agreement, the
Convention on Biological Diversity, the UN Convention to Combat Desertification, the
Sustainable Development Goals, the Glasgow Leaders’ Declaration on Forests and Land
Use and other relevant initiatives and instruments.
The EFTA States and Malaysia will continue to communicate with relevant stakeholders
on the initiatives to support sustainable practices along palm oil supply chains. The EFTA
States and Malaysia also commit to regularly share information with one another about
ongoing domestic developments related to the sustainability of palm oil supply chains.
This will include initiatives by Malaysia to support and improve the sustainable
development of the Malaysian palm oil industry, including the Malaysian Sustainable
Palm Oil (MSPO) Certification Scheme and forthcoming updates to the scheme. The
EFTA States and Malaysia acknowledge the role of these initiatives in improving the
sustainability of palm oil supply chains.
The EFTA States and Malaysia look forward to continuing their efforts domestically and
internationally to support and encourage future development of sustainability of palm oil
supply chains to meet their shared goals. EFTA
Indonesia raises concern over EU forest rule’s impact on farmers
Jakarta (ANTARA) - Indonesia’s Ministry of Foreign Affairs has raised concerns over the European Union Deforestation Regulation (EUDR), warning that it could disproportionately impact smallholder farmers who produce key export commodities.
“We have discussed this issue before, and among the problems we are currently facing, the most significant impact is on smallholders, especially those involved in rubber, cocoa, coffee, and palm oil,” Deputy Foreign Minister Arif Havas Oegroseno told reporters in Jakarta on Thursday.
He said the regulation could make it more difficult for smallholders to export their goods to the EU, while farmers within the bloc are exempt under a new "negligible risk" classification.
“If this is accepted, it clearly reflects a discriminatory practice. There are rules that apply only to EU farmers, while those outside Europe are treated differently,” he said.
Oegroseno clarified that the EUDR is not part of the ongoing Indonesia–EU Comprehensive Economic Partnership Agreement (IEU–CEPA) talks, but is instead being addressed separately through a coalition of affected nations.
“There is a group called the ‘Like-Minded Countries’ or LMC. So we have our own forum to specifically address this issue,” he added.
When asked whether Indonesia would consider filing a complaint with the World Trade Organization (WTO), Oegroseno said the option remains under review.
“There has been no filing yet. The process is not underway. We don’t know whether it will be accepted. But even European trade experts acknowledge there’s a strong case for non-EU countries to raise this at the WTO,” he said.
On June 4, Indonesia and the EU held a bilateral dialogue in Brussels to discuss the implications of the EUDR. During the meeting, Indonesia officially objected to the regulation’s unilateral adoption, its extraterritorial impact, and the lack of consultation with producing countries.
Indonesia also requested clarification on several points, including the legal basis and methodology for risk classification, recognition of national legality systems, potential conflicts with WTO rules, and administrative burdens on smallholder farmers related to geolocation and digital traceability requirements.
The EU has committed to providing a written response to Indonesia’s questions in the near future. Antara News
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Mondelez calls for EU to delay landmark deforestation law
US chocolate makers are dialling back their support for the environmental regulation under pressure from Washington
Mondelez is lobbying for the implementation of the EU’s deforestation law to be delayed again as US chocolate makers dial back their support for the landmark regulation amid political pressure and unusually high cocoa prices.
The proposed law, due to be implemented at the end of the year, bans imports ranging from cocoa to palm oil from being sold on the EU market if they have come from deforested land.
Cadbury owner Mondelez, which had previously supported the legislation, warned that the chocolate industry was already struggling with “record prices and supply shocks”.
“Further regulatory barriers could undermine the competitiveness of a €70 billion industry — at a time when the EU needs to step up its focus on global competitiveness and economic resilience,” said Massimiliano di Domenico, vice-president of corporate and government affairs for Europe.
“That’s why we strongly believe there is a need for a further delay.”
Mars and Hershey, two other major US chocolate manufacturers, have recently declined to join European counterparts such as Nestlé and Ferrero in signing letters to the European Commission voicing support for the law.
That decision was partly motivated by US President Donald Trump’s antipathy towards environmental rules, according to people involved in drafting the letters.
Mars told the Financial Times it had been “consistent in its support” for the EU’s deforestation law. A person familiar with the company’s position said it opposed a delay.
Hershey said it “continues to support efforts from the [European] commission to ensure this regulation achieves its intended impact of addressing deforestation”.
Chocolate makers have come under heavy strain after unfavourable weather and crop disease in west Africa, the world’s main cocoa growing region, reduced supply and caused cocoa prices to more than triple in just eight months.
Futures in New York have recently fallen from their peak of more than $12,000 per tonne but remain about $4,000 above their usual range.
The EU’s deforestation law, a big piece of its ambitious environmental agenda, has been criticised by bloc agricultural ministers, trading partners and rightwing politicians, many of whom say that it is unfeasible and want it radically watered down.
It was due to come into force at the start of 2025, but Brussels agreed in October to delay its implementation by one year. Companies were issued with additional guidance to help them prepare for the detailed customs information they will have to provide.
Organisations in other sectors such as agriculture and forestry are preparing to issue a statement calling for an amendment to the law in the coming days, according to one industry body involved.
In a letter this week, seen by the Financial Times, European chocolate makers including Ferrero, Nestlé and Tony’s Chocolonely said further delays or changes to the law “would severely undermine one of the EU’s flagship policies for tackling global deforestation and nature degradation”.
Antonie Fountain, managing director of Voice Network, which advocates for sustainable cocoa production, said uncertainty over the law’s implementation was causing chocolate makers “a lot of displeasure.”
“They are saying ‘stop prevaricating so we can get on with it’. [But] some of the American companies will not be saying this in public because they see what happens to those that do stand up for sustainability.”
The US has long opposed the deforestation law. Biden administration officials sent a letter to the commission in June last year saying it posed “critical challenges” to American producers and should be delayed.
EU officials have said recently that the deforestation law is one of several seen as problematic by the US. Others included the Digital Markets Act, which regulates big tech firms, and rules governing methane emissions, they said. Financial Times
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The EUDR Benchmarking list is here - and comes as a surprise
The EU Commission's country benchmarking is an important step for the EUDR, which will apply from the end of 2025, with some surprising country classifications.
The European Union Deforestation Regulation (EUDR) continues to take momentum. On 22 May 2025, the EU Commission published an initial list for country benchmarking, which classifies all countries in the world into three risk categories in order to map the risk of deforestation associated with beef, cocoa, coffee, palm oil, rubber, soy, and timber. These raw materials and their products are often produced on illegally deforested land, which the comprehensive EUDR obligations are intended to prevent.
Countries of origin determine the scope of due diligence and control obligations
In order to map the risk of deforestation in the supply chain of the product concerned as accurately as possible, Article 29 EUDR provides for a risk-based approach. This involves classifying the country of origin of a product into one of three risk categories. The categories are “low risk,” “normal risk,” and “high risk.” Countries are classified primarily according to quantitative criteria. According to the methodology applied by the Commission, the decisive factors are the rate of deforestation and forest degradation, the extent of expansion of agricultural land for relevant commodities, and production trends of relevant commodities and products. In addition, agreements concluded and measures taken by the respective countries to protect against deforestation are taken into account.
However, the assessment carried out according to these criteria not only has an impact on the extent of deforestation but also has direct consequences for the scope of due diligence required under the EUDR. For example, operators and traders enjoy simplified due diligence obligations when sourcing relevant products from “low-risk” countries, as they are required to collect information but not to assess and mitigate risks. However, this only applies if, after assessing the complexity of the supply chain and the risk of circumvention of the regulation or mixing with products of unknown origin, the companies concerned have ensured that the relevant raw materials and products were produced exclusively in low-risk countries.
In addition, the scope of the Member States' control obligations for compliance with the EUDR obligations is also measured according to country benchmarking. The number of operators to be controlled per year is graded according to the three risk categories. Accordingly, Member States shall ensure that at least 1% of operators with products from low-risk countries are controlled each year. For countries with normal risk, this figure is at least 3%; for countries with high risk, it is at least 9%.
Classification of the majority of countries as “low risk” comes as a surprise
The only countries classified as “high risk” are Belarus, North Korea, Myanmar, and Russia. This is mainly because these countries are subject to United Nations or EU sanctions on the import or export of goods covered by the EUDR. Countries classified as “normal risk” are not explicitly listed in the country list published by the Commission, but are considered countries that are neither high nor low risk. Unsurprisingly, the countries classified as low risk include all EU member states and all countries in the European Economic Area. What is surprising, however, is the classification of countries with large areas of rainforest, such as Brazil and Côte d'Ivoire, as “normal risk” countries. The ongoing deforestation in these countries has been known for decades. The rapid deforestation in Brazil prompted the EU Economic and Social Committee to issue a statement in November last year, in which it highlighted the clearing of the Brazilian rainforest and explicitly mentioned the associated ecological risk. It is not reasonable why there is said to be no high risk of deforestation.
Simplification of the EUDR through the back door?
It is suspected that labeling countries with a high risk of deforestation as merely “normal risk” is a way of easing regulatory pressure through the back door. Last year, after strong opposition from affected companies, the EU postponed the implementation of the EUDR by one year, pushing the deadline to the end of 2025. In addition, due diligence and information requirements were to be significantly simplified. Such simplification is apparently also to be achieved indirectly through the country benchmarking that has now been published. Companies that source the affected raw materials from countries with a low risk of deforestation can therefore breathe a sigh of relief. However, it remains to be seen whether the EUDR will still be able to live up to its own ambitions. The question could arise as to whether the EUDR will ultimately just create more bureaucracy. Only the coming years will provide a clear answer to this question. Regardless of this, companies should begin implementing the EUDR as soon as possible in order to fulfill their due diligence obligations and avoid sanctions. Lexology
---------
Malaysia Succeeds In Attracting RM8.13 Bln Potential Investments From Italy - PM Anwar
ROME, July 3 (Bernama) -- Potential investments worth RM8.13 billion have been achieved through the Malaysia-Italy economic cooperation roundtable meeting and meetings with companies here, said Prime Minister Datuk Seri Anwar Ibrahim.
The roundtable meeting involved the participation of 41 Italian companies and agencies, comprising 23 companies from the manufacturing sector, nine companies from the service sector, two companies from the trade sector as well as five government agencies and two industrial organisations.
“The potential investments achieved through these two meetings are worth RM8.13 billion in the petrochemical, machinery and equipment, electrical and electronics, and oil and gas services and equipment sectors,” he said at a press conference at the end of his visit to Rome, Italy.
Anwar, who is also the Finance Minister, said the potential exports generated were worth RM425 million for oleochemical products, renewable energy, biofuel feedstocks, animal feed additives and food.
The roundtable meeting allowed potential companies in Italy an opportunity to express their desire to collaborate with Malaysian companies in various sectors such as high-tech manufacturing, renewable energy, digital economy and sustainable infrastructure.
Meanwhile, Anwar said that in a bilateral meeting with his counterpart Giorgia Meloni, Rome and Putrajaya would increase cooperation in the energy, solar, geothermal and hydrogen sectors.
Among the collaborations are the Petronas and Eni SpA joint venture in Pengerang, Johor in the sustainable aviation fuel (SAF) sector; Perodua and Magna Styer for electric vehicle batteries; and collaboration and investment in the modernisation of the electricity grid, including the ASEAN Power Grid (APG).
In the discussion, the Prime Minister said he also applied for recognition of the Malaysian Sustainable Palm Oil (MSPO) certification from Italy, in addition to requesting support for a fairer assessment of the European Union Deforestation-Free Products Regulation (EUDR) Implementation.
Malaysia aims to be in the low-risk category in the EUDR benchmark system when the rating is reviewed by 2026.
Meanwhile, Malaysia has also sought Italy's support in concluding negotiations on the Malaysia-European Union Free Trade Agreement (FTA).
The Prime Minister arrived here on Tuesday for a three-day working visit to Italy, the third largest economy in the EU.
The visit was at the invitation of Meloni.
Throughout the visit, Anwar was accompanied by Foreign Minister Datuk Seri Mohamad Hasan, Transport Minister Anthony Loke, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu, Defence Minister Datuk Seri Mohamed Khaled Nordin and Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
Also joining the delegation was Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir.
In 2024, total trade between Malaysia and Italy recorded an increase of two per cent to US$3.18 billion (RM14.61 billion) compared to the same period in 2023.
For the period from January to May 2025, total trade between the two countries continued to show positive performance with an increase of 3.3 per cent to US$1.48 billion (RM6.5 billion) compared to the same period in 2024.
The Prime Minister departed for France for an official visit on July 3 and 4 after concluding his visit to Italy. Bernama
---------
EFTA MALAYSIA JOINT STATEMENT ON SUSTAINABLE PALM OIL
The EFTA States and Malaysia reaffirm their shared and ongoing commitment to work
together to conserve forests and to support and promote sustainable supply chains, and
sustainable production of commodities.
The EFTA States and Malaysia will continue to uphold their respective commitments to
the UN Framework Convention on Climate Change and the Paris Agreement, the
Convention on Biological Diversity, the UN Convention to Combat Desertification, the
Sustainable Development Goals, the Glasgow Leaders’ Declaration on Forests and Land
Use and other relevant initiatives and instruments.
The EFTA States and Malaysia will continue to communicate with relevant stakeholders
on the initiatives to support sustainable practices along palm oil supply chains. The EFTA
States and Malaysia also commit to regularly share information with one another about
ongoing domestic developments related to the sustainability of palm oil supply chains.
This will include initiatives by Malaysia to support and improve the sustainable
development of the Malaysian palm oil industry, including the Malaysian Sustainable
Palm Oil (MSPO) Certification Scheme and forthcoming updates to the scheme. The
EFTA States and Malaysia acknowledge the role of these initiatives in improving the
sustainability of palm oil supply chains.
The EFTA States and Malaysia look forward to continuing their efforts domestically and
internationally to support and encourage future development of sustainability of palm oil
supply chains to meet their shared goals. EFTA
July 03, 2025
Indonesia to revoke palm plantation certificate in Riau
Jakarta (ANTARA) - The Indonesian government has pledged to revoke the certificate of a palm oil plantation found guilty of operating within the Tesso Nilo National Park area in Palalawan District, Riau, a minister announced.
Agrarian and Spatial Planning Minister/National Land Agency (BPN) Head Nusron Wahid stated that no further reverification is necessary, as his ministry has already conducted a field verification confirming the company's legal violation.
Wahid stated here on Tuesday that the palm oil plantation's certificate will be revoked immediately as part of the ministry's commitment to preserving the country's national park area and combating illegal land use.
Speaking to journalists after meeting with lawmakers from the House of Representatives' Commission II overseeing forestry and agriculture, he noted that the national park is home to wild Sumatran elephants.
As reported earlier, Sumatran forests are habitats for some of the world's rarest plant species and are among the few remaining landscapes where elephants, tigers, and orangutans coexist.
Sumatra, the world's sixth-largest island, covers 470 thousand square kilometers and is home to 580 bird species, 201 mammalian species, and more than 15 thousand known plant species.
The Tesso Nilo National Park is home to wild Sumatran elephants (Elephas maximus sumatranus), but forest loss, particularly due to plantation, development projects, and forest fires, has threatened these land mammals. Antara News
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Indonesia seeks ‘predictable policy’ by India on palm oil imports
Indonesia has urged India to adopt a predictable palm oil import policy to ensure stable trade amid changing climate and policy shifts. Highlighting mutual market needs, Indonesia seeks transparency in stock management and import-export rules to avoid trade disruptions.
Indonesia, the world’s biggest producer and exporter of crude palm oil (CPO), on Wednesday sought a “predictable policy: on shipment of cooking oils to India.
“We both are big populous countries in the world and have large domestic markets to cater to. We need to have a predictable policy taking into consideration the supply and demand side issues,” Ina Hagniningtyas Krisnamurthi, Indonesia’s ambassador to India, told FE.
She said that there is a need for openness in understanding the stock management policies of both the governments and “we hope that predictable policies or certainty policies will not hamper the trade itself,”.
“With climate change being frequent occurrences, we also understand that Indian government will also impose certain policies while we also impose certain policies when it comes to weather and yield,” Krisnamurthi said referring imports duties imposed by India and export restrictions by Indonesia.
On May 30, India reduced the effective import duty including basic custom duty and cess on these three oils to 16.5% from 27.5% imposed in September last year to curb spike in prices
Since May, 2025 Indonesia has increased export duties on CPO to 10% from 7.5% aimed at funding its biofuel programme and replanting initiative.
In April, 2022, Indonesia imposed a ban on palm oil exports, which had disrupted global supplies and pushed up cooking oils prices globally.
India imported the over 4.83 million tonne (MT), over 55% of its total crude and RBD palm oil imports from Indonesia during 2023 – 2024 oil year (November-October).
In 2025, Indonesia is projected to increase its palm oil production to 47 MT , with exports aiming for 25 million tonnes. Indonesia’s B40 biodiesel mandate – which blends 40% palm oil into diesel, diverts 2 MT of oil.
In 2024, Indonesia exported palm oil majorly to India, China, Pakistan, Bangladesh, the United States, and Egypt. Financial Express
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EU court deals blow to Indonesian palm companies Musim Mas and Permata Hijau Palm Oleo and Nubika Jaya in anti-dumping fight
The EU's top trade court upheld steep anti-dumping duties of up to 46.4% on Indonesian palm oil imports, rejecting all legal challenges from major producers.
BRUSSELS (CN) — Indonesian palm oil companies suffered a comprehensive legal defeat Wednesday as the European Union's General Court rejected all challenges to punishing anti-dumping duties, delivering a major victory for EU trade enforcement and maintaining penalties of up to 46.4% on fatty acid imports.
In two related rulings issued Wednesday, the Luxembourg-based court upheld the European Commission's decision to impose steep tariffs on Indonesian fatty acid imports. The judgments dismissed challenges from three Indonesian companies that had argued the trade penalties were improperly calculated and unjustified.
A three-judge panel dismissed every legal argument raised by Musim Mas, the Indonesian subsidiary of the Singapore-headquartered Musim Mas Group, with operations in 13 countries and 37,000 workers worldwide. The company, one of Indonesia's largest palm oil producers, faced a 46.4% penalty on its products.
Two other Indonesian companies, Permata Hijau Palm Oleo and Nubika Jaya, also lost their separate challenge and face 26.6% duties.
The Musim Mas case raised broader legal challenges to EU trade enforcement, while the companion case focused mainly on procedural issues about individual company treatment.
Commission wins on all counts
In August 2022, the Coalition Against Unfair Trade in Fatty Acid — the EU industry group that filed the original complaint with the commission — withdrew its complaint. But the EU executive decided to continue the investigation anyway, a move Musim Mas challenged as improper, though the court disagreed.
A significant part of the ruling clarified the commission's authority to continue trade investigations. "Where a complaint is withdrawn, the institutions have the option — but not the obligation — to terminate the proceeding," the court ruled, confirming that the European Commission can pursue trade enforcement even when European industry withdraws support.
Anti-dumping measures typically arise when domestic producers claim foreign competitors are selling products below cost, potentially harming local industry.
"The imposition of anti-dumping measures was 'clearly' in the interest of the Union industry," the court found, rejecting Musim Mas arguments that the commission failed to prove imposing duties served EU interests. The company had pointed to the complaint withdrawal and opposition from some European producers who argued the duties would disrupt supply chains.
The court said the commission must give special consideration to eliminating unfair trade practices and restoring fair competition. The judges found the commission properly concluded the duties would not harm users and other stakeholders too much.
Musim Mas also challenged how the commission calculated "normal value" — the benchmark price used to determine dumping margins. The company claimed officials used unreasonably high profit margins of 35.32% and 91.24% for certain product types.
"The use of actual margins to construct the normal value for the product types cannot give rise to an infringement," the court ruled. The judges found the high profit margins resulted from the company's own pricing policy in Indonesia and were legitimate since the sales were made in normal business conditions.
"The applicant was barred from alleging such an error of fact for the first time in the action," the court ruled in dismissing Musim Mas's exchange rate arguments. The company had alleged the commission used incorrect exchange rates, leading to a dumping margin that was 0.31% too high, but failed to raise this issue during the proceedings.
"Consequently, the action must be dismissed in its entirety," the court concluded, ordering all Indonesian companies to pay the commission's legal costs.
Industry impact
The ruling allowing investigations to continue after complaint withdrawal significantly strengthens the EU executive's enforcement powers and could encourage more aggressive trade action even when European industry support wavers. The decisions maintain current trade restrictions on Indonesian fatty acid imports and reflect ongoing tensions between the EU and Southeast Asian palm oil producers over environmental and trade concerns.
European officials have increasingly scrutinized palm oil imports over deforestation worries, while Indonesia and Malaysia have pushed back against what they view as unfair barriers. Indonesia has filed broader disputes against the EU at the World Trade Organization over palm oil regulations, with a WTO panel report issued in January 2025 in a related case.
Indonesia is the EU's 33rd-biggest trading partner and the EU's fifth-biggest ASEAN trading partner in 2024, as per EU data. Bilateral trade in goods between the EU and Indonesia totaled 27.3 billion euros ($29.5 billion) in 2024, with EU exports worth 9.7 billion euros ($11.4 billion) and EU imports worth 17.5 billion euros ($20.6 billion). Palm oil and its derivatives represent a multibillion-dollar global trade, with Indonesia serving as the world's largest producer.
The European Commission originally imposed the anti-dumping duties in January 2023 following "an investigation which showed that EU industry was being harmed by dumped imports because it could not compete on price, resulting in a market share loss." The duties range from 15.2% to 46.4% to help ensure fair competition between fatty acids imported from Indonesia and locally produced ones.
Fatty acid is widely used in food, cosmetics and medicines. Palm oil is a key raw ingredient of fatty acid, making the trade measures significant for both industrial and consumer product supply chains. Musim Mas markets itself as a sustainability leader, having been the first company in Indonesia to achieve RSPO certification — which sets global standards for sustainable palm oil production — back in 2004.
The Indonesian companies could potentially appeal the decisions to the European Court of Justice within two months. The General Court handles most EU trade disputes as the first court in the Court of Justice of the European Union. Court House News
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EU Pushing Ahead With Climate Plans Amid Concerns Over Energy Costs, Tariffs — Commodities Roundup
The European Union is pushing ahead with a new target for cutting greenhouse gas emissions, testing the willingness of politicians and the public across the bloc to pay for a sweeping shift to cleaner technologies at a time of economic upheaval on the continent.
The European Commission, the EU's executive, proposed legislation that would require a 90% emissions decrease by 2040 compared to 1990 levels, pushing aside concerns from some members of the bloc as their companies struggle with high energy costs, slumping markets and the threat of a wall of tariffs from the U.S. French President Emmanuel Macron suggested last week that the decision should be delayed.
The EU's emissions have fallen 37% between 1990 and 2023, a sign of the massive investments in clean technology that will be needed to achieve the 90% target. Morningstar
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HVO demand may hit record as EU rules tighten
Stricter biofuel mandates in northwest Europe may push hydrotreated vegetable oil (HVO) consumption to record highs in 2026, as suppliers shift away from conventional biodiesel to meet EU targets. In Germany alone, demand could rise by 1.5mn t — nearly quadruple 2025 levels — according to Argus Consulting.
To bypass the 7pc cap on blending conventional methyl ester biodiesel into diesel, suppliers are turning to HVO Class II, boosting trading on the Intercontinental Exchange (Ice) ahead of rising renewables targets next year.
A total of 717,500t of used cooking oil-based HVO (Class II) futures traded on Ice in June, up from 140,100t in May and surpassing the previous record of 232,000t in March.
The Ice contract — cash-settled and based on Argus spot assessments — launched in 2022 as both a differential to Ice low-sulphur gasoil and outright, with the differential more actively traded. Open interest now extends to June 2026. December positions total 99,000t, close to the 109,000t held in the more liquid Ice Ucome biodiesel contract, Ice data show.
Since 20 June, the forward curve has remained in contango, peaking in the fourth quarter. This reflects expectations of rising demand ahead of 2026, when biofuels targets increase in key markets such as the Netherlands and Germany, which are adopting greenhouse gas (GHG) reduction-based mandates. Both recently published draft legislation to transpose the EU's revised Renewable Energy Directive (RED III), proposing to abolish double-counting of Annex IX feedstocks.
Obligated parties will need a broader fuel mix to meet higher targets, supporting waste-based HVO demand.
Spot market activity has also picked up. Argus Open Markets (AOM) volumes for HVO Class II have reached 36,000t so far in 2025, nearly matching the 2024 total of 44,000t. Trades of palm oil mill effluent-based HVO (Class IV) have hit 22,000t, already exceeding last year's 16,000t.
The increase in spot demand has been supported by changes to renewable fuel ticket carryover rules. The Netherlands cut its allowance from 25pc to 10pc for 2025 compliance, reducing flexibility for obligated blenders and prompting more near-term buying.
Strong demand and tight supply pushed HVO Class II premiums to a seven-month high in June, peaking at $1,095/m³ on 20 June and holding firm into July.
In April, Germany's federal agriculture and food office (BLE) suspended an HVO producer's access to the Nabisy biomass registry and froze Proof of Sustainability (PoS) documents during an investigation. These documents are required to log fuels on compliance platforms and count them towards RED targets. Prices rose following the suspension and remained supported even after the PoS documents were reinstated under the "protection of confidence" principle, as delays and reduced supply continued.
Trade flows have also been reshaped by EU anti-dumping duties imposed in February on Chinese biodiesel and HVO. Just 95,000t of HVO arrived at the Amsterdam-Rotterdam-Antwerp (ARA) hub in the second quarter, down from 155,000t a year earlier, according to Kpler data. Arbitrage for standard 5,000t parcels has largely disappeared for Chinese producers facing duties of 21.7pc or more, although flows remain viable for exporters subject to the reduced 10pc rate.
Anti-dumping and anti-subsidy duties are already in place for HVO and biodiesel of US and Canadian origin. While US-origin HVO flows to the UK remain unaffected — EU duties were removed in 2022 — the UK launched an anti-dumping investigation into US HVO in March..
By Evelina Lungu/ Argus Media
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Turkey to set SAF mandates for airlines and suppliers
Turkey’s civil aviation authority announced plans to impose mandates on airlines and jet fuel suppliers to increase the use of sustainable aviation fuel (SAF), aiming to cut aviation emissions by 5% by 2030.
This initiative supports compliance with the UN International Civil Aviation Organisation’s emission reduction program, which becomes mandatory in 2027.
Under the new regulations, airlines operating international flights involving Turkey must use enough SAF to achieve the 5% emissions reduction target. Jet fuel suppliers in Turkey will also be required to source SAF to meet this goal, including domestic oil refiners like Tupras.
The authority will set and publish minimum emission reduction targets annually before the end of the third quarter. It will enforce penalties on airlines and fuel suppliers that fail to comply.
Additionally, airlines must load 90% of their required SAF for international flights within Turkey.
According to the International Energy Agency, aviation accounts for 2.5% of global energy-related CO2 emissions.
Tupras, Turkey’s largest oil refiner, plans to produce 20,000 metric tons of SAF at a major plant by 2026 and aims to increase production to 400,000 tons by constructing a new unit at its Izmir refinery, pending final investment approval.
Local biofuel company DB Tarimsal Enerji also targets 100,000 tons of SAF production at a new facility.
Turkey’s jet fuel consumption declined by 4% last year to 6.26 million tons (approximately 135,000 barrels per day), according to the country’s energy regulator. Biofuels News
Indonesia to revoke palm plantation certificate in Riau
Jakarta (ANTARA) - The Indonesian government has pledged to revoke the certificate of a palm oil plantation found guilty of operating within the Tesso Nilo National Park area in Palalawan District, Riau, a minister announced.
Agrarian and Spatial Planning Minister/National Land Agency (BPN) Head Nusron Wahid stated that no further reverification is necessary, as his ministry has already conducted a field verification confirming the company's legal violation.
Wahid stated here on Tuesday that the palm oil plantation's certificate will be revoked immediately as part of the ministry's commitment to preserving the country's national park area and combating illegal land use.
Speaking to journalists after meeting with lawmakers from the House of Representatives' Commission II overseeing forestry and agriculture, he noted that the national park is home to wild Sumatran elephants.
As reported earlier, Sumatran forests are habitats for some of the world's rarest plant species and are among the few remaining landscapes where elephants, tigers, and orangutans coexist.
Sumatra, the world's sixth-largest island, covers 470 thousand square kilometers and is home to 580 bird species, 201 mammalian species, and more than 15 thousand known plant species.
The Tesso Nilo National Park is home to wild Sumatran elephants (Elephas maximus sumatranus), but forest loss, particularly due to plantation, development projects, and forest fires, has threatened these land mammals. Antara News
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Indonesia seeks ‘predictable policy’ by India on palm oil imports
Indonesia has urged India to adopt a predictable palm oil import policy to ensure stable trade amid changing climate and policy shifts. Highlighting mutual market needs, Indonesia seeks transparency in stock management and import-export rules to avoid trade disruptions.
Indonesia, the world’s biggest producer and exporter of crude palm oil (CPO), on Wednesday sought a “predictable policy: on shipment of cooking oils to India.
“We both are big populous countries in the world and have large domestic markets to cater to. We need to have a predictable policy taking into consideration the supply and demand side issues,” Ina Hagniningtyas Krisnamurthi, Indonesia’s ambassador to India, told FE.
She said that there is a need for openness in understanding the stock management policies of both the governments and “we hope that predictable policies or certainty policies will not hamper the trade itself,”.
“With climate change being frequent occurrences, we also understand that Indian government will also impose certain policies while we also impose certain policies when it comes to weather and yield,” Krisnamurthi said referring imports duties imposed by India and export restrictions by Indonesia.
On May 30, India reduced the effective import duty including basic custom duty and cess on these three oils to 16.5% from 27.5% imposed in September last year to curb spike in prices
Since May, 2025 Indonesia has increased export duties on CPO to 10% from 7.5% aimed at funding its biofuel programme and replanting initiative.
In April, 2022, Indonesia imposed a ban on palm oil exports, which had disrupted global supplies and pushed up cooking oils prices globally.
India imported the over 4.83 million tonne (MT), over 55% of its total crude and RBD palm oil imports from Indonesia during 2023 – 2024 oil year (November-October).
In 2025, Indonesia is projected to increase its palm oil production to 47 MT , with exports aiming for 25 million tonnes. Indonesia’s B40 biodiesel mandate – which blends 40% palm oil into diesel, diverts 2 MT of oil.
In 2024, Indonesia exported palm oil majorly to India, China, Pakistan, Bangladesh, the United States, and Egypt. Financial Express
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EU court deals blow to Indonesian palm companies Musim Mas and Permata Hijau Palm Oleo and Nubika Jaya in anti-dumping fight
The EU's top trade court upheld steep anti-dumping duties of up to 46.4% on Indonesian palm oil imports, rejecting all legal challenges from major producers.
BRUSSELS (CN) — Indonesian palm oil companies suffered a comprehensive legal defeat Wednesday as the European Union's General Court rejected all challenges to punishing anti-dumping duties, delivering a major victory for EU trade enforcement and maintaining penalties of up to 46.4% on fatty acid imports.
In two related rulings issued Wednesday, the Luxembourg-based court upheld the European Commission's decision to impose steep tariffs on Indonesian fatty acid imports. The judgments dismissed challenges from three Indonesian companies that had argued the trade penalties were improperly calculated and unjustified.
A three-judge panel dismissed every legal argument raised by Musim Mas, the Indonesian subsidiary of the Singapore-headquartered Musim Mas Group, with operations in 13 countries and 37,000 workers worldwide. The company, one of Indonesia's largest palm oil producers, faced a 46.4% penalty on its products.
Two other Indonesian companies, Permata Hijau Palm Oleo and Nubika Jaya, also lost their separate challenge and face 26.6% duties.
The Musim Mas case raised broader legal challenges to EU trade enforcement, while the companion case focused mainly on procedural issues about individual company treatment.
Commission wins on all counts
In August 2022, the Coalition Against Unfair Trade in Fatty Acid — the EU industry group that filed the original complaint with the commission — withdrew its complaint. But the EU executive decided to continue the investigation anyway, a move Musim Mas challenged as improper, though the court disagreed.
A significant part of the ruling clarified the commission's authority to continue trade investigations. "Where a complaint is withdrawn, the institutions have the option — but not the obligation — to terminate the proceeding," the court ruled, confirming that the European Commission can pursue trade enforcement even when European industry withdraws support.
Anti-dumping measures typically arise when domestic producers claim foreign competitors are selling products below cost, potentially harming local industry.
"The imposition of anti-dumping measures was 'clearly' in the interest of the Union industry," the court found, rejecting Musim Mas arguments that the commission failed to prove imposing duties served EU interests. The company had pointed to the complaint withdrawal and opposition from some European producers who argued the duties would disrupt supply chains.
The court said the commission must give special consideration to eliminating unfair trade practices and restoring fair competition. The judges found the commission properly concluded the duties would not harm users and other stakeholders too much.
Musim Mas also challenged how the commission calculated "normal value" — the benchmark price used to determine dumping margins. The company claimed officials used unreasonably high profit margins of 35.32% and 91.24% for certain product types.
"The use of actual margins to construct the normal value for the product types cannot give rise to an infringement," the court ruled. The judges found the high profit margins resulted from the company's own pricing policy in Indonesia and were legitimate since the sales were made in normal business conditions.
"The applicant was barred from alleging such an error of fact for the first time in the action," the court ruled in dismissing Musim Mas's exchange rate arguments. The company had alleged the commission used incorrect exchange rates, leading to a dumping margin that was 0.31% too high, but failed to raise this issue during the proceedings.
"Consequently, the action must be dismissed in its entirety," the court concluded, ordering all Indonesian companies to pay the commission's legal costs.
Industry impact
The ruling allowing investigations to continue after complaint withdrawal significantly strengthens the EU executive's enforcement powers and could encourage more aggressive trade action even when European industry support wavers. The decisions maintain current trade restrictions on Indonesian fatty acid imports and reflect ongoing tensions between the EU and Southeast Asian palm oil producers over environmental and trade concerns.
European officials have increasingly scrutinized palm oil imports over deforestation worries, while Indonesia and Malaysia have pushed back against what they view as unfair barriers. Indonesia has filed broader disputes against the EU at the World Trade Organization over palm oil regulations, with a WTO panel report issued in January 2025 in a related case.
Indonesia is the EU's 33rd-biggest trading partner and the EU's fifth-biggest ASEAN trading partner in 2024, as per EU data. Bilateral trade in goods between the EU and Indonesia totaled 27.3 billion euros ($29.5 billion) in 2024, with EU exports worth 9.7 billion euros ($11.4 billion) and EU imports worth 17.5 billion euros ($20.6 billion). Palm oil and its derivatives represent a multibillion-dollar global trade, with Indonesia serving as the world's largest producer.
The European Commission originally imposed the anti-dumping duties in January 2023 following "an investigation which showed that EU industry was being harmed by dumped imports because it could not compete on price, resulting in a market share loss." The duties range from 15.2% to 46.4% to help ensure fair competition between fatty acids imported from Indonesia and locally produced ones.
Fatty acid is widely used in food, cosmetics and medicines. Palm oil is a key raw ingredient of fatty acid, making the trade measures significant for both industrial and consumer product supply chains. Musim Mas markets itself as a sustainability leader, having been the first company in Indonesia to achieve RSPO certification — which sets global standards for sustainable palm oil production — back in 2004.
The Indonesian companies could potentially appeal the decisions to the European Court of Justice within two months. The General Court handles most EU trade disputes as the first court in the Court of Justice of the European Union. Court House News
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EU Pushing Ahead With Climate Plans Amid Concerns Over Energy Costs, Tariffs — Commodities Roundup
The European Union is pushing ahead with a new target for cutting greenhouse gas emissions, testing the willingness of politicians and the public across the bloc to pay for a sweeping shift to cleaner technologies at a time of economic upheaval on the continent.
The European Commission, the EU's executive, proposed legislation that would require a 90% emissions decrease by 2040 compared to 1990 levels, pushing aside concerns from some members of the bloc as their companies struggle with high energy costs, slumping markets and the threat of a wall of tariffs from the U.S. French President Emmanuel Macron suggested last week that the decision should be delayed.
The EU's emissions have fallen 37% between 1990 and 2023, a sign of the massive investments in clean technology that will be needed to achieve the 90% target. Morningstar
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HVO demand may hit record as EU rules tighten
Stricter biofuel mandates in northwest Europe may push hydrotreated vegetable oil (HVO) consumption to record highs in 2026, as suppliers shift away from conventional biodiesel to meet EU targets. In Germany alone, demand could rise by 1.5mn t — nearly quadruple 2025 levels — according to Argus Consulting.
To bypass the 7pc cap on blending conventional methyl ester biodiesel into diesel, suppliers are turning to HVO Class II, boosting trading on the Intercontinental Exchange (Ice) ahead of rising renewables targets next year.
A total of 717,500t of used cooking oil-based HVO (Class II) futures traded on Ice in June, up from 140,100t in May and surpassing the previous record of 232,000t in March.
The Ice contract — cash-settled and based on Argus spot assessments — launched in 2022 as both a differential to Ice low-sulphur gasoil and outright, with the differential more actively traded. Open interest now extends to June 2026. December positions total 99,000t, close to the 109,000t held in the more liquid Ice Ucome biodiesel contract, Ice data show.
Since 20 June, the forward curve has remained in contango, peaking in the fourth quarter. This reflects expectations of rising demand ahead of 2026, when biofuels targets increase in key markets such as the Netherlands and Germany, which are adopting greenhouse gas (GHG) reduction-based mandates. Both recently published draft legislation to transpose the EU's revised Renewable Energy Directive (RED III), proposing to abolish double-counting of Annex IX feedstocks.
Obligated parties will need a broader fuel mix to meet higher targets, supporting waste-based HVO demand.
Spot market activity has also picked up. Argus Open Markets (AOM) volumes for HVO Class II have reached 36,000t so far in 2025, nearly matching the 2024 total of 44,000t. Trades of palm oil mill effluent-based HVO (Class IV) have hit 22,000t, already exceeding last year's 16,000t.
The increase in spot demand has been supported by changes to renewable fuel ticket carryover rules. The Netherlands cut its allowance from 25pc to 10pc for 2025 compliance, reducing flexibility for obligated blenders and prompting more near-term buying.
Strong demand and tight supply pushed HVO Class II premiums to a seven-month high in June, peaking at $1,095/m³ on 20 June and holding firm into July.
In April, Germany's federal agriculture and food office (BLE) suspended an HVO producer's access to the Nabisy biomass registry and froze Proof of Sustainability (PoS) documents during an investigation. These documents are required to log fuels on compliance platforms and count them towards RED targets. Prices rose following the suspension and remained supported even after the PoS documents were reinstated under the "protection of confidence" principle, as delays and reduced supply continued.
Trade flows have also been reshaped by EU anti-dumping duties imposed in February on Chinese biodiesel and HVO. Just 95,000t of HVO arrived at the Amsterdam-Rotterdam-Antwerp (ARA) hub in the second quarter, down from 155,000t a year earlier, according to Kpler data. Arbitrage for standard 5,000t parcels has largely disappeared for Chinese producers facing duties of 21.7pc or more, although flows remain viable for exporters subject to the reduced 10pc rate.
Anti-dumping and anti-subsidy duties are already in place for HVO and biodiesel of US and Canadian origin. While US-origin HVO flows to the UK remain unaffected — EU duties were removed in 2022 — the UK launched an anti-dumping investigation into US HVO in March..
By Evelina Lungu/ Argus Media
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Turkey to set SAF mandates for airlines and suppliers
Turkey’s civil aviation authority announced plans to impose mandates on airlines and jet fuel suppliers to increase the use of sustainable aviation fuel (SAF), aiming to cut aviation emissions by 5% by 2030.
This initiative supports compliance with the UN International Civil Aviation Organisation’s emission reduction program, which becomes mandatory in 2027.
Under the new regulations, airlines operating international flights involving Turkey must use enough SAF to achieve the 5% emissions reduction target. Jet fuel suppliers in Turkey will also be required to source SAF to meet this goal, including domestic oil refiners like Tupras.
The authority will set and publish minimum emission reduction targets annually before the end of the third quarter. It will enforce penalties on airlines and fuel suppliers that fail to comply.
Additionally, airlines must load 90% of their required SAF for international flights within Turkey.
According to the International Energy Agency, aviation accounts for 2.5% of global energy-related CO2 emissions.
Tupras, Turkey’s largest oil refiner, plans to produce 20,000 metric tons of SAF at a major plant by 2026 and aims to increase production to 400,000 tons by constructing a new unit at its Izmir refinery, pending final investment approval.
Local biofuel company DB Tarimsal Enerji also targets 100,000 tons of SAF production at a new facility.
Turkey’s jet fuel consumption declined by 4% last year to 6.26 million tons (approximately 135,000 barrels per day), according to the country’s energy regulator. Biofuels News
July 01, 2025
Platts to launch Indonesia domestic POME assessment, effective Aug 1
Platts, part of S&P Global Commodity Insights, will launch a daily assessment for Indonesia domestic palm oil mill effluent (POME), effective Aug. 1, 2025.
Indonesia produces approximately 2 million mt/year of POME, according to data from S&P Global Commodity Insights. As the country increases the biodiesel blend in road transportation, it has largely reduced the export of POME and kept its production for the domestic market. The new assessment will reflect domestic POME spot prices in this important market.
The Indonesia POME domestic assessment will reflect a free fatty acid (FFA) value of a maximum of 50%, a moisture and impurities content of a maximum of 3%, and a total fatty matter (TFM) of a minimum of 95%.
The assessment will reflect a cargo size of 100 to 2,000 mt, loading one to seven days forward from the date of publication on a delivered-at-place (DAP) Dumai, Sumatra Island, basis. It will also consider cargoes delivering to other locations in Sumatra Island, including Belawan, Palembang, Lampung, and Aceh, but may be normalized back to the basis location of Dumai.
Other volumes may also be considered by normalizing back to the stated volume specifications. The assessment will reflect cargo values inclusive of a 12% value-added tax.
The assessment will have the following specifications: More at SP Global
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Clean fuel production credit: Regulatory roadblocks ahead
The Sec. 45Z clean fuel production credit is a significant initiative introduced by the Inflation Reduction Act of 2022, P.L. 117–169. This credit aims to incentivize the production of clean transportation fuels, including either sustainable aviation fuel (SAF) or non–SAF transportation fuel, within the United States by offering tax credits to producers that meet specific environmental criteria.
To be eligible for the credit in a specific tax year, taxpayers must produce a qualifying transportation fuel within the United States for sale to an unrelated party for certain specified purposes. A non–SAF transportation fuel must be produced in accordance with certain feedstock requirements, must be suitable for use in highway vehicles or aircraft, and must have a lifecycle greenhouse gas (GHG) emissions rate of no more than 50 kilograms per carbon dioxide equivalent (CO2e) (based on relative global warming potential) per million British thermal units (mmBTU) (Secs. 45Z(b)(1)(A) and (d)). Alternatively, SAF must adhere to specific industry standards, meet a separate set of feedstock requirements, and be sold for use in aircraft.
On Jan. 10, 2025, Treasury and the IRS issued Notice 2025–10, which contains draft forthcoming proposed regulations for the Sec. 45Z clean fuel production credit, and Notice 2025–11, which includes the Sec. 45Z annual emissions rate table. Also in January, the Department of Energy released the 45ZCF–GREET model, with a user manual and other information, to calculate emissions for non–SAF transportation fuel. Overall, the guidance provides helpful information but ultimately neglects several crucial industry issues. Therefore, taxpayers in the clean fuel industry are evaluating how to apply the notices, given their nonbinding and somewhat ineffective nature.
This item explores two key issues among many that are puzzling industry participants: imported used cooking oil (UCO) and the definition of a qualifying sale, particularly for clean fuel producers selling to wholesalers. The lack of clarity in these areas could significantly affect the clean fuel industry’s ability to generate the Sec. 45Z credit.
Imported UCO
The forthcoming proposed regulations do not provide specific guidance on the use of imported UCO as a feedstock eligible for the Sec. 45Z credit, specifically with respect to non–SAF transportation fuel. Notice 2025–10 contemplates concerns regarding the identification and market implications of imported UCO, particularly the risk of mislabeling substances such as virgin palm oil as UCO. Compared to palm oil, genuine UCO has a significantly lower GHG emissions rate, meaning that producing biodiesel from UCO generates considerably fewer carbon emissions than producing it from palm oil. This is primarily because UCO is considered a waste product that would otherwise be discarded, while palm oil production is often linked to large–scale deforestation, leading to high GHG emissions. Therefore, this mislabeling could potentially lead to higher emissions impacts than genuine UCO. Due to these concerns, the notice provides that pathways using imported UCO are currently unavailable in the 45ZCF–GREET model until further guidance is issued. When the current 45ZCF–GREET model does not include certain feedstocks such as imported UCO in its production pathways, the taxpayer must request a provisional emissions rate (PER) to establish an official emissions rate for its product.
This guidance fails to provide a specific PER process for taxpayers to follow, which creates significant uncertainty for industry participants that have relied on imported UCO as a sustainable feedstock, and this lack of a defined process will lead to difficulties in ensuring compliance and claiming the Sec. 45Z credit. To complicate this further, there is not an anticipated date for further guidance under the new administration; therefore, taxpayers that use imported UCO will be left searching for answers in the interim, making it difficult to estimate this incentive’s benefits.
Qualifying sale More at The Tax Adviser
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Biodiesel seen as a path to preserve forests and boost family income
The federal government’s Social Biofuel Seal estimates that more than R$30 billion has already been directed to home farming
Keeping the Amazon intact has become a global priority amid mounting climate risks from deforestation in the world’s largest tropical forest. At the same time, improving the living conditions of the region’s population remains a critical challenge. One alternative that demonstrates it is possible to balance both goals is the production of biofuels, particularly biodiesel.
“I recently experienced an economic revolution in my life. Today, I have a well-structured home and a car. I never imagined that one day I would be in the economic situation I am in,” says Luane Alves Penha, a farmer and açaí producer in the city of Mazagão, Amapá. “Our family’s situation improved from the moment we learned to produce while preserving nature,” adds the owner of a 50-hectare (500,000 m²) plot where she cultivates açaí alongside cassava, coconut, pineapple, banana, lemon, pumpkin, and corn.
Ms. Penha, who lives with her husband and their three children, says the turning point came two years ago when she joined a local food cooperative called Bio+Açaí. The cooperative supports 812 families in Amapá and Pará, providing technical assistance and guaranteeing the purchase of all the açaí produced by its members
“Before, we had a lot of uncertainty. We produced a little but were discouraged because we had no one to sell to,” she recalls. “Today, we can see a return on our investment. Our income from açaí was around R$1,200. With the technical assistance we receive, production has increased, and our income from açaí alone has more than doubled—not to mention what we earn from other crops,” says Ms. Penha, noting that she stopped cutting down other tree species on her land to work exclusively with açaí, a once common practice. “I learned that other trees help protect the açaí grove from pests and provide me with extra income.”
The driving force behind Bio+Açaí’s ability to provide technical and financial assistance to Ms. Penha and 811 other families is the Social Biofuel Seal program, administered by the Ministry of Agrarian
Development and Home Farming. Created in 2004, the initiative has gained traction with the increase in the biodiesel blend in diesel fuel and the growing recognition that sustainable development in the Amazon depends on strengthening the bioeconomy.
Valor Agribusiness
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Daabon Sustainable Palm Oils: A Trusted and Scalable Alternative To Seed Oils
Seed Oil Free Certification provides transparency and highlights the unique benefits of Daabon’s palm oils for food brands, restaurants, and health-conscious consumers.
BOCA RATON, Fla.--(BUSINESS WIRE)--The Seed Oil Free Alliance, an independent certifying organization advised by a coalition of public health and nutrition experts, announced today that Daabon’s full line of palm fruit and palm kernel oils are Seed Oil Free Certified™, providing brands and restaurants a scalable, functional, and ethical alternative to industrial seed oils. Daabon is the first producer of palm oil, a fruit oil that is heat-stable and low in omega-6, to be awarded the Seed Oil Free Certified Seal. Daabon’s transparent, vertically integrated production model ensures this solution is sustainable, ethical, and ready for scale.
“Highly refined industrial seed oils like soybean, canola, and sunflower are overly processed, unstable when heated, and contribute to an imbalanced omega-6 to omega-3 ratio, a topic of ongoing research for its potential role in inflammation,” said Jonathan Rubin, founder and CEO of the Seed Oil Free Alliance. “Palm oil is often mistaken for a seed oil, but it’s from the fruit of the oil palm. When grown and processed right, it’s one of the most promising fats available today.”
The key to palm oil’s functional advantage lies in its fatty acid profile, which is approximately 50% saturated, 40% monounsaturated, and 10% polyunsaturated fatty acids (PUFA). By contrast, common seed oils are up to 60% PUFA and prone to breaking down when heated. A 2021 study in the journal Foods found that palm olein resisted oxidation better than soybean and sunflower oils when repeatedly heated and produced significantly fewer harmful compounds.
Qua Kiat Seng, a chemical engineer with 50 years of experience in the oil and fats industry, currently Adjunct Senior Lecturer at Monash University Malaysia, agrees that palm oil is the healthier choice for deep frying. “We dove into the chemical changes oils undergo during frying, like oxidation, hydrolysis, and polymerization, and how these affect oil quality and health. It highlights that palm olein’s composition makes it more resistant to breakdown, while highly refined seed oils like soybean, canola, and sunflower are more prone to forming undesirable byproducts.”
Palm oil is the world’s most popular vegetable oil and an amazingly versatile natural product. Unfortunately, in certain parts of the world, palm oil has been linked to deforestation, loss of wild habitats, and social injustice for workers. Daabon is firmly committed to sustainability, providing full traceability to the farm. In addition to Seed Oil Free Certified, the company holds a series of accreditations demonstrating its commitment to environmental, social, and economic issues, including Roundtable on Sustainable Palm Oil (RSPO), Fair Trade USA, Regenerative Organic (Gold Level), and Non-GMO Project.
A list of Daabon’s Seed Oil Free Certified Products can be found at: seedoilfreecertified.com/brand/daabon. Brands and restaurants can purchase Seed Oil Free Certified Daabon Palm Oil and Palm Kernel Oil at daabonusa.com/contact-us/ Business Wire
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Medella's blend of red palm oil and coconut oil trending as an antioxidant packed cooking oil
Medella has introduced Red Palm & Coconut Cooking Oil, Malaysia’s first 50/50 blend of natural red palm oil and coconut oil, offering a healthier alternative for everyday cooking. Developed using a chemical-free process that preserves its nutritional value, the oil delivers a rich source of antioxidants and healthy fats, supporting the needs of increasingly health-conscious consumers.
Each 15g serving contains 4.5g of Medium Chain Triglycerides (MCTs) for quick energy and metabolism support, 3.75mg of Vitamin E to promote immune and skin health, and 1.13mg of Provitamin A to maintain good vision. With non-communicable diseases such as diabetes and high cholesterol on the rise, Medella’s launch provides a timely solution for Malaysians looking to make better choices in the kitchen.
The Red Palm & Coconut Cooking Oil blend brings together the wellness benefits of two natural oils, offering a clean, flavorful option that supports a balanced lifestyle.
Trend Themes
1. Antioxidant-rich Ingredients - The fusion of red palm and coconut oils in cooking products highlights the growing consumer interest in antioxidant-rich ingredients for enhanced health benefits.
2. Functional Food Innovations - Medella's new oil blend, with added MCTs and vitamins, reflects a broader trend towards functional foods designed to support metabolic and immune health.
3. Natural Oil Blends - The introduction of chemical-free processing methods in oil production is steering the trend towards natural oil blends that maintain nutritional integrity.
Industry Implications
1. Health-conscious Food Products - As consumers prioritize health in their dietary choices, there is increasing demand in the food industry for products that offer both nutrition and preventative health benefits.
2. Nutraceuticals - Integrating ingredients like MCTs and vitamins into cooking oils underscores a shift in the nutraceutical industry towards versatile products that merge everyday use with health enhancement.
3. Clean Label Foods - The appeal of chemical-free processing in Medella's oil reflects the clean label movement gaining traction across the food industry, driven by consumer desire for transparency and purity. Trend Hunter
Platts to launch Indonesia domestic POME assessment, effective Aug 1
Platts, part of S&P Global Commodity Insights, will launch a daily assessment for Indonesia domestic palm oil mill effluent (POME), effective Aug. 1, 2025.
Indonesia produces approximately 2 million mt/year of POME, according to data from S&P Global Commodity Insights. As the country increases the biodiesel blend in road transportation, it has largely reduced the export of POME and kept its production for the domestic market. The new assessment will reflect domestic POME spot prices in this important market.
The Indonesia POME domestic assessment will reflect a free fatty acid (FFA) value of a maximum of 50%, a moisture and impurities content of a maximum of 3%, and a total fatty matter (TFM) of a minimum of 95%.
The assessment will reflect a cargo size of 100 to 2,000 mt, loading one to seven days forward from the date of publication on a delivered-at-place (DAP) Dumai, Sumatra Island, basis. It will also consider cargoes delivering to other locations in Sumatra Island, including Belawan, Palembang, Lampung, and Aceh, but may be normalized back to the basis location of Dumai.
Other volumes may also be considered by normalizing back to the stated volume specifications. The assessment will reflect cargo values inclusive of a 12% value-added tax.
The assessment will have the following specifications: More at SP Global
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Clean fuel production credit: Regulatory roadblocks ahead
The Sec. 45Z clean fuel production credit is a significant initiative introduced by the Inflation Reduction Act of 2022, P.L. 117–169. This credit aims to incentivize the production of clean transportation fuels, including either sustainable aviation fuel (SAF) or non–SAF transportation fuel, within the United States by offering tax credits to producers that meet specific environmental criteria.
To be eligible for the credit in a specific tax year, taxpayers must produce a qualifying transportation fuel within the United States for sale to an unrelated party for certain specified purposes. A non–SAF transportation fuel must be produced in accordance with certain feedstock requirements, must be suitable for use in highway vehicles or aircraft, and must have a lifecycle greenhouse gas (GHG) emissions rate of no more than 50 kilograms per carbon dioxide equivalent (CO2e) (based on relative global warming potential) per million British thermal units (mmBTU) (Secs. 45Z(b)(1)(A) and (d)). Alternatively, SAF must adhere to specific industry standards, meet a separate set of feedstock requirements, and be sold for use in aircraft.
On Jan. 10, 2025, Treasury and the IRS issued Notice 2025–10, which contains draft forthcoming proposed regulations for the Sec. 45Z clean fuel production credit, and Notice 2025–11, which includes the Sec. 45Z annual emissions rate table. Also in January, the Department of Energy released the 45ZCF–GREET model, with a user manual and other information, to calculate emissions for non–SAF transportation fuel. Overall, the guidance provides helpful information but ultimately neglects several crucial industry issues. Therefore, taxpayers in the clean fuel industry are evaluating how to apply the notices, given their nonbinding and somewhat ineffective nature.
This item explores two key issues among many that are puzzling industry participants: imported used cooking oil (UCO) and the definition of a qualifying sale, particularly for clean fuel producers selling to wholesalers. The lack of clarity in these areas could significantly affect the clean fuel industry’s ability to generate the Sec. 45Z credit.
Imported UCO
The forthcoming proposed regulations do not provide specific guidance on the use of imported UCO as a feedstock eligible for the Sec. 45Z credit, specifically with respect to non–SAF transportation fuel. Notice 2025–10 contemplates concerns regarding the identification and market implications of imported UCO, particularly the risk of mislabeling substances such as virgin palm oil as UCO. Compared to palm oil, genuine UCO has a significantly lower GHG emissions rate, meaning that producing biodiesel from UCO generates considerably fewer carbon emissions than producing it from palm oil. This is primarily because UCO is considered a waste product that would otherwise be discarded, while palm oil production is often linked to large–scale deforestation, leading to high GHG emissions. Therefore, this mislabeling could potentially lead to higher emissions impacts than genuine UCO. Due to these concerns, the notice provides that pathways using imported UCO are currently unavailable in the 45ZCF–GREET model until further guidance is issued. When the current 45ZCF–GREET model does not include certain feedstocks such as imported UCO in its production pathways, the taxpayer must request a provisional emissions rate (PER) to establish an official emissions rate for its product.
This guidance fails to provide a specific PER process for taxpayers to follow, which creates significant uncertainty for industry participants that have relied on imported UCO as a sustainable feedstock, and this lack of a defined process will lead to difficulties in ensuring compliance and claiming the Sec. 45Z credit. To complicate this further, there is not an anticipated date for further guidance under the new administration; therefore, taxpayers that use imported UCO will be left searching for answers in the interim, making it difficult to estimate this incentive’s benefits.
Qualifying sale More at The Tax Adviser
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Biodiesel seen as a path to preserve forests and boost family income
The federal government’s Social Biofuel Seal estimates that more than R$30 billion has already been directed to home farming
Keeping the Amazon intact has become a global priority amid mounting climate risks from deforestation in the world’s largest tropical forest. At the same time, improving the living conditions of the region’s population remains a critical challenge. One alternative that demonstrates it is possible to balance both goals is the production of biofuels, particularly biodiesel.
“I recently experienced an economic revolution in my life. Today, I have a well-structured home and a car. I never imagined that one day I would be in the economic situation I am in,” says Luane Alves Penha, a farmer and açaí producer in the city of Mazagão, Amapá. “Our family’s situation improved from the moment we learned to produce while preserving nature,” adds the owner of a 50-hectare (500,000 m²) plot where she cultivates açaí alongside cassava, coconut, pineapple, banana, lemon, pumpkin, and corn.
Ms. Penha, who lives with her husband and their three children, says the turning point came two years ago when she joined a local food cooperative called Bio+Açaí. The cooperative supports 812 families in Amapá and Pará, providing technical assistance and guaranteeing the purchase of all the açaí produced by its members
“Before, we had a lot of uncertainty. We produced a little but were discouraged because we had no one to sell to,” she recalls. “Today, we can see a return on our investment. Our income from açaí was around R$1,200. With the technical assistance we receive, production has increased, and our income from açaí alone has more than doubled—not to mention what we earn from other crops,” says Ms. Penha, noting that she stopped cutting down other tree species on her land to work exclusively with açaí, a once common practice. “I learned that other trees help protect the açaí grove from pests and provide me with extra income.”
The driving force behind Bio+Açaí’s ability to provide technical and financial assistance to Ms. Penha and 811 other families is the Social Biofuel Seal program, administered by the Ministry of Agrarian
Development and Home Farming. Created in 2004, the initiative has gained traction with the increase in the biodiesel blend in diesel fuel and the growing recognition that sustainable development in the Amazon depends on strengthening the bioeconomy.
Valor Agribusiness
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Daabon Sustainable Palm Oils: A Trusted and Scalable Alternative To Seed Oils
Seed Oil Free Certification provides transparency and highlights the unique benefits of Daabon’s palm oils for food brands, restaurants, and health-conscious consumers.
BOCA RATON, Fla.--(BUSINESS WIRE)--The Seed Oil Free Alliance, an independent certifying organization advised by a coalition of public health and nutrition experts, announced today that Daabon’s full line of palm fruit and palm kernel oils are Seed Oil Free Certified™, providing brands and restaurants a scalable, functional, and ethical alternative to industrial seed oils. Daabon is the first producer of palm oil, a fruit oil that is heat-stable and low in omega-6, to be awarded the Seed Oil Free Certified Seal. Daabon’s transparent, vertically integrated production model ensures this solution is sustainable, ethical, and ready for scale.
“Highly refined industrial seed oils like soybean, canola, and sunflower are overly processed, unstable when heated, and contribute to an imbalanced omega-6 to omega-3 ratio, a topic of ongoing research for its potential role in inflammation,” said Jonathan Rubin, founder and CEO of the Seed Oil Free Alliance. “Palm oil is often mistaken for a seed oil, but it’s from the fruit of the oil palm. When grown and processed right, it’s one of the most promising fats available today.”
The key to palm oil’s functional advantage lies in its fatty acid profile, which is approximately 50% saturated, 40% monounsaturated, and 10% polyunsaturated fatty acids (PUFA). By contrast, common seed oils are up to 60% PUFA and prone to breaking down when heated. A 2021 study in the journal Foods found that palm olein resisted oxidation better than soybean and sunflower oils when repeatedly heated and produced significantly fewer harmful compounds.
Qua Kiat Seng, a chemical engineer with 50 years of experience in the oil and fats industry, currently Adjunct Senior Lecturer at Monash University Malaysia, agrees that palm oil is the healthier choice for deep frying. “We dove into the chemical changes oils undergo during frying, like oxidation, hydrolysis, and polymerization, and how these affect oil quality and health. It highlights that palm olein’s composition makes it more resistant to breakdown, while highly refined seed oils like soybean, canola, and sunflower are more prone to forming undesirable byproducts.”
Palm oil is the world’s most popular vegetable oil and an amazingly versatile natural product. Unfortunately, in certain parts of the world, palm oil has been linked to deforestation, loss of wild habitats, and social injustice for workers. Daabon is firmly committed to sustainability, providing full traceability to the farm. In addition to Seed Oil Free Certified, the company holds a series of accreditations demonstrating its commitment to environmental, social, and economic issues, including Roundtable on Sustainable Palm Oil (RSPO), Fair Trade USA, Regenerative Organic (Gold Level), and Non-GMO Project.
A list of Daabon’s Seed Oil Free Certified Products can be found at: seedoilfreecertified.com/brand/daabon. Brands and restaurants can purchase Seed Oil Free Certified Daabon Palm Oil and Palm Kernel Oil at daabonusa.com/contact-us/ Business Wire
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Medella's blend of red palm oil and coconut oil trending as an antioxidant packed cooking oil
Medella has introduced Red Palm & Coconut Cooking Oil, Malaysia’s first 50/50 blend of natural red palm oil and coconut oil, offering a healthier alternative for everyday cooking. Developed using a chemical-free process that preserves its nutritional value, the oil delivers a rich source of antioxidants and healthy fats, supporting the needs of increasingly health-conscious consumers.
Each 15g serving contains 4.5g of Medium Chain Triglycerides (MCTs) for quick energy and metabolism support, 3.75mg of Vitamin E to promote immune and skin health, and 1.13mg of Provitamin A to maintain good vision. With non-communicable diseases such as diabetes and high cholesterol on the rise, Medella’s launch provides a timely solution for Malaysians looking to make better choices in the kitchen.
The Red Palm & Coconut Cooking Oil blend brings together the wellness benefits of two natural oils, offering a clean, flavorful option that supports a balanced lifestyle.
Trend Themes
1. Antioxidant-rich Ingredients - The fusion of red palm and coconut oils in cooking products highlights the growing consumer interest in antioxidant-rich ingredients for enhanced health benefits.
2. Functional Food Innovations - Medella's new oil blend, with added MCTs and vitamins, reflects a broader trend towards functional foods designed to support metabolic and immune health.
3. Natural Oil Blends - The introduction of chemical-free processing methods in oil production is steering the trend towards natural oil blends that maintain nutritional integrity.
Industry Implications
1. Health-conscious Food Products - As consumers prioritize health in their dietary choices, there is increasing demand in the food industry for products that offer both nutrition and preventative health benefits.
2. Nutraceuticals - Integrating ingredients like MCTs and vitamins into cooking oils underscores a shift in the nutraceutical industry towards versatile products that merge everyday use with health enhancement.
3. Clean Label Foods - The appeal of chemical-free processing in Medella's oil reflects the clean label movement gaining traction across the food industry, driven by consumer desire for transparency and purity. Trend Hunter
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Palm oil news. July 2025. CSPO Watch