Palm oil news - November 2024
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November 30, 2024
Johari Ghani calls for stronger Malaysia-Indonesia cooperation in palm oil industry
JAKARTA (Nov 29): Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani has called for greater cooperation between Malaysia and Indonesia to address the regulatory challenges facing the global palm oil industry.
Speaking at a joint press conference after the 12th Council of Palm Oil Producing Countries (CPOPC) Ministerial Meeting on Friday, the minister warned that protectionist policies, including the European Union Deforestation Regulation (EUDR), could lead to trade barriers.
Johari highlighted the CPOPC’s role in creating strategies to ensure fair treatment for smallholders, improve market access, and promote sustainable practices within the sector.
“The CPOPC is a vital platform to address environmental concerns while adhering to global regulations, ensuring that the benefits are shared for the betterment of our nations and the world,” he said.
Johari also emphasised Indonesia’s position as the world’s largest palm oil producer, noting its use of palm oil for biodiesel.
“The global acceptance of biodiesel is essential to combating climate change as it has helped reduce emissions in the energy sector,” he said.
He added that Indonesia and Malaysia account for over 70% of the global palm oil market.
The meeting, chaired by Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto, also saw the virtual attendance of Honduras’ Minister of Agriculture and Livestock Laura Suazo, represented by Deputy Minister Lid Roy Lazo Rodríguez, and Congo’s Minister Delegate for International Cooperation Bestine Kazadi Ditabala.
At a joint press conference, Airlangga highlighted that Indonesia and Malaysia are strengthening their cooperation to expand the global palm oil market and promote sustainability, with support from Honduras.
“Closer cooperation between Indonesia, Malaysia, and Honduras is a strategic step to ensure industry sustainability,” he said.
Airlangga said the meeting also welcomed Nigeria and Congo as new observer countries, while Colombia, Ghana, and Papua New Guinea are in discussions to become full members. The EdgeMY
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Scientific study to counter negative claims against palm oil
KUALA LUMPUR: The Council of Palm Oil Producing Countries (CPOPC) will conduct a specific scientific study to counter baseless claims and negative perceptions against palm oil.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani, who leads the Malaysian delegation to Jakarta for the CPOPC Ministerial meeting, said that the study will also highlight the benefits of palm oil to the world.
He said the study would also emphasise the importance of CPOPC's role as an international organisation capable of addressing negative perceptions and baseless allegations against palm oil.
This commitment is in line with Johari, who is set to become the chairman of CPOPC, starting Jan 1.
"We also propose that CPOPC focus on efforts to enhance its credibility. This can be achieved by supporting the involvement of observer countries like Colombia, Ghana and Papua New Guinea as full members and expanding the membership of the organisation," he said in a statement today.
The CPOPC meeting was chaired by Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto. New Straits Times
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Indonesia Is Committed To Supporting The Sustainability Of The Palm Oil Industry
Coordinating Minister for Economic Affairs Airlangga Hartarto conveyed that Indonesia and the State Council of Palm Oil Producting Countries (CPOPC) are committed to supporting the sustainability of the palm oil industry.
"Indonesia wants to appreciate the long-term partnerships and collaborations among palm oil producing countries, with CPOPC support, despite complex challenges in the global palm oil sector," he said in his statement, Friday, November 29.
Airlangga said there were several challenges in the global palm oil industry, such as those caused by market volatility, fluctuations in CPO prices, demands for sustainability from consumer countries or importers, the entry of small farmers in the global supply chain, the risk of climate change, as well as issues related to the environment, health, and labor.
In addition, Airlangga said that in the long term, these challenges could affect the livelihoods of small farmers and small-scale producers, because they are the backbone of the palm oil supply chain.
"Indonesia remains committed to ensuring the welfare of more than 12 million people who get direct and indirect jobs from the palm oil industry," he said.
On the other hand, Airlangga said palm oil producing countries also continue to face trade discrimination against palm oil products and their derivatives, which are disguised as environmentally friendly policies imposed by importing countries, such as EU Deforestation-free Regulation (EUDR), EU RefuelEU Aviation Rules, EU Due-Diligence Regulation, Global Biofuel Alliance (GBA), and United Kingdom's Forest Risk Commodities (FRC) Law.
"For that, we must formulate an appropriate strategy to create a profitable and stable palm oil price. In addition, we must refrain from implementing trade policies in a way that is not in line with the relevant WTO provisions, to ensure market transparency and the predictability of palm oil," said Airlangga.
Airlangga said that Indonesia still considers the palm oil sector as a national priority, especially since there is a strong commitment from President Prabowo Subianto to this vital sector as reflected in Asta Cita, namely achieving food security goals, food self-sufficiency, energy self-sufficiency, and industrial downstreaming. VOI
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India-Malaysia ties strengthened following Malaysian PM's Visit to India
NEW DELHI: The Indian Ministry of External Affairs has described the Prime Minister Datuk Seri Anwar Ibrahim’s recent official visit to India, as marking a significant milestone in strengthening the partnership between the two nations.
Its official spokesperson Randhir Jaiswal stated that both countries are making substantial progress in areas such as the economy, defence, technology, investments, logistics, and diaspora relations.
“This ongoing growth presents a strong foundation, and we are committed to further strengthening this partnership,” he told a Bernama journalist, who is part of the 79th edition of the Know India Programme (KIP), here, which runs from Nov 25 to Dec 13.
Anwar’s visit to India, from Aug 19 to 21, was his first official visit to the country since assuming office as Malaysia’s 10th prime minister in Nov 2022.
When asked about the KIP initiative for the Indian diaspora, Randhir said that the recent editions have seen strong participation from Malaysians, who have gained valuable experience through these programmes.
“We have learnt a great deal from each other, sharing knowledge and best practices. Ultimately, it’s about building a stronger, united family. The SunMY
Johari Ghani calls for stronger Malaysia-Indonesia cooperation in palm oil industry
JAKARTA (Nov 29): Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani has called for greater cooperation between Malaysia and Indonesia to address the regulatory challenges facing the global palm oil industry.
Speaking at a joint press conference after the 12th Council of Palm Oil Producing Countries (CPOPC) Ministerial Meeting on Friday, the minister warned that protectionist policies, including the European Union Deforestation Regulation (EUDR), could lead to trade barriers.
Johari highlighted the CPOPC’s role in creating strategies to ensure fair treatment for smallholders, improve market access, and promote sustainable practices within the sector.
“The CPOPC is a vital platform to address environmental concerns while adhering to global regulations, ensuring that the benefits are shared for the betterment of our nations and the world,” he said.
Johari also emphasised Indonesia’s position as the world’s largest palm oil producer, noting its use of palm oil for biodiesel.
“The global acceptance of biodiesel is essential to combating climate change as it has helped reduce emissions in the energy sector,” he said.
He added that Indonesia and Malaysia account for over 70% of the global palm oil market.
The meeting, chaired by Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto, also saw the virtual attendance of Honduras’ Minister of Agriculture and Livestock Laura Suazo, represented by Deputy Minister Lid Roy Lazo Rodríguez, and Congo’s Minister Delegate for International Cooperation Bestine Kazadi Ditabala.
At a joint press conference, Airlangga highlighted that Indonesia and Malaysia are strengthening their cooperation to expand the global palm oil market and promote sustainability, with support from Honduras.
“Closer cooperation between Indonesia, Malaysia, and Honduras is a strategic step to ensure industry sustainability,” he said.
Airlangga said the meeting also welcomed Nigeria and Congo as new observer countries, while Colombia, Ghana, and Papua New Guinea are in discussions to become full members. The EdgeMY
--------
Scientific study to counter negative claims against palm oil
KUALA LUMPUR: The Council of Palm Oil Producing Countries (CPOPC) will conduct a specific scientific study to counter baseless claims and negative perceptions against palm oil.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani, who leads the Malaysian delegation to Jakarta for the CPOPC Ministerial meeting, said that the study will also highlight the benefits of palm oil to the world.
He said the study would also emphasise the importance of CPOPC's role as an international organisation capable of addressing negative perceptions and baseless allegations against palm oil.
This commitment is in line with Johari, who is set to become the chairman of CPOPC, starting Jan 1.
"We also propose that CPOPC focus on efforts to enhance its credibility. This can be achieved by supporting the involvement of observer countries like Colombia, Ghana and Papua New Guinea as full members and expanding the membership of the organisation," he said in a statement today.
The CPOPC meeting was chaired by Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto. New Straits Times
--------
Indonesia Is Committed To Supporting The Sustainability Of The Palm Oil Industry
Coordinating Minister for Economic Affairs Airlangga Hartarto conveyed that Indonesia and the State Council of Palm Oil Producting Countries (CPOPC) are committed to supporting the sustainability of the palm oil industry.
"Indonesia wants to appreciate the long-term partnerships and collaborations among palm oil producing countries, with CPOPC support, despite complex challenges in the global palm oil sector," he said in his statement, Friday, November 29.
Airlangga said there were several challenges in the global palm oil industry, such as those caused by market volatility, fluctuations in CPO prices, demands for sustainability from consumer countries or importers, the entry of small farmers in the global supply chain, the risk of climate change, as well as issues related to the environment, health, and labor.
In addition, Airlangga said that in the long term, these challenges could affect the livelihoods of small farmers and small-scale producers, because they are the backbone of the palm oil supply chain.
"Indonesia remains committed to ensuring the welfare of more than 12 million people who get direct and indirect jobs from the palm oil industry," he said.
On the other hand, Airlangga said palm oil producing countries also continue to face trade discrimination against palm oil products and their derivatives, which are disguised as environmentally friendly policies imposed by importing countries, such as EU Deforestation-free Regulation (EUDR), EU RefuelEU Aviation Rules, EU Due-Diligence Regulation, Global Biofuel Alliance (GBA), and United Kingdom's Forest Risk Commodities (FRC) Law.
"For that, we must formulate an appropriate strategy to create a profitable and stable palm oil price. In addition, we must refrain from implementing trade policies in a way that is not in line with the relevant WTO provisions, to ensure market transparency and the predictability of palm oil," said Airlangga.
Airlangga said that Indonesia still considers the palm oil sector as a national priority, especially since there is a strong commitment from President Prabowo Subianto to this vital sector as reflected in Asta Cita, namely achieving food security goals, food self-sufficiency, energy self-sufficiency, and industrial downstreaming. VOI
--------
India-Malaysia ties strengthened following Malaysian PM's Visit to India
NEW DELHI: The Indian Ministry of External Affairs has described the Prime Minister Datuk Seri Anwar Ibrahim’s recent official visit to India, as marking a significant milestone in strengthening the partnership between the two nations.
Its official spokesperson Randhir Jaiswal stated that both countries are making substantial progress in areas such as the economy, defence, technology, investments, logistics, and diaspora relations.
“This ongoing growth presents a strong foundation, and we are committed to further strengthening this partnership,” he told a Bernama journalist, who is part of the 79th edition of the Know India Programme (KIP), here, which runs from Nov 25 to Dec 13.
Anwar’s visit to India, from Aug 19 to 21, was his first official visit to the country since assuming office as Malaysia’s 10th prime minister in Nov 2022.
When asked about the KIP initiative for the Indian diaspora, Randhir said that the recent editions have seen strong participation from Malaysians, who have gained valuable experience through these programmes.
“We have learnt a great deal from each other, sharing knowledge and best practices. Ultimately, it’s about building a stronger, united family. The SunMY
November 29, 2024
Indonesia committed to introduce B40 biodiesel on Jan 1, says Minister Airlangga Hartarto
JAKARTA, Nov 29 (Reuters) - Indonesia remains committed to start implementing a 40% mandatory biodiesel mix with palm oil-based fuel, or B40, on Jan. 1 next year, its chief economic minister said on Friday.
Indonesia, the world's largest palm oil producer, currently uses B35, a 35% blend of palm oil-based biodiesel.
Minister Airlangga Hartarto said the B40 implementation was Indonesia's "concrete contribution to the world" as it could reduce carbon dioxide emissions by about 40 million metric tons.
He also said Indonesia's palm oil fund agency would be able to finance the gap between the cost of palm-oil based fuel and fossil fuel.
B40 will boost Indonesia's palm oil use for biodiesel to 13.9 million metric tons, from the estimated 11 million tons needed this year with B35, Indonesia's biofuel producers association APROBI has previously estimated. Reuters
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Colombia | Sowing the future: Agricultural sector - Palm Oil Report Summary
The country benefits from strategic location and high productivity, enabling exponential growth of this crop over recent decades. As the world's fourth-largest producer and the leading producer in the Americas, Colombia's potential paves the way for consolidation in new markets.
Key points
This crop stands out for its versatility, with applications across multiple productive sectors. In the food industry, it is used for producing oils, ice cream, and confectionery, while in the industrial sector, it is employed in manufacturing cosmetics, soaps, paints, and even biofuels.
Palm oil is the highest-yielding oilseed crop per hectare, significantly outperforming its counterparts. While other oilseeds produce an average of 0.6 tons of oil per hectare, palm oil yields 2.6 tons, a productivity advantage of over four times. Cultivated in tropical regions, Colombia is strategically positioned for competitive global production.
Globally, the unchecked expansion of palm oil cultivation has been linked to deforestation, particularly in Asia. However, Colombia has implemented mechanisms to promote sustainable practices. By 2023, approximately 35% of cultivated land and 30% of national production were certified for sustainability.
Palm oil emerges as a key resource in a global context demanding more sustainable production methods. Its potential to contribute to the energy transition through biofuel production, alongside its integration into circular economy initiatives, positions it as a strategic investment for sustainable development.
Research and development are critical to mitigating the latent sanitary risks in the sector. Combined with the implementation of sustainable measures, these efforts will drive rural development and strengthen Colombia's position in global trade. BBVA Research
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Malaysia-FGV profits continue to rise due to improved palm oil productivity
PETALING JAYA: Analysts are mostly positive about FGV Holdings Bhd’s earnings and have raised their estimates for its future results.
The group’s latest financial results for the third quarter ended Sep 30, 2024, (3Q24) saw FGV posting a net profit of RM87.16mil with basic earnings per share of 2.39 sen.
Its revenue increased to RM6.18bil compared with RM4.91bil in 3Q23.
Cumulatively, the group recorded a net profit of RM160.05mil and revenue of RM16.24bil. Its basic earnings per share for the nine months up to September (9M24) was 4.39 sen.
Commenting on the results, Hong Leong Investment Bank Research (HLIB Research) said FGV’s results exceeded expectations at 124.5% to 253.9% of consensus and its own full-year estimates, respectively, mainly due to improvement in fresh fruit bunch (FFB) production and yield.
HLIB Research noted that the group’s core net profit jumped to RM208.4mil in 3Q24, on a yearly basis, thanks to significantly improved plantation earnings.
This was driven by a 20% increase in FFB output, lower crude palm oil (CPO) production costs, improvements in the research and development segment, as well as higher margins and sales volume in its fertiliser business. The StarMY
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The fundamental flaw in the EU deforestation regulation
By Julian McGill / The Edge Malaysia
This is a particular problem for one of the more controversial crops covered by the regulation: the oil palm.
The law is the same for all crops it covers, but each crop has its own peculiarities. For the oil palm, nature provides one single fact that shapes its logistics: it produces fruit. The oil palm’s fruit, in turn, needs to be processed as soon as it ripens.
Just like during the apple harvest, when different orchards combine their crops in one press, the fruit from the oil palm needs to be aggregated and processed together in one mill. Individuals with a few trees, small family farms, large estates, dealers — all of them supply mills within a short radius of their palms.
Can mills buying from many small farmers really be sure that they can demonstrate legal compliance? Small farmers usually don’t read English and they certainly can’t afford their own legal department, human resources team or sustainability adviser. Tribal laws are often still the main source of legitimacy, not those written at the federal capital a thousand kilometres away. The inheritance of land is a particular problem: it follows ancient traditions not modern demands for the correct paperwork. More The EdgeMY
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Indonesia committed to introduce B40 biodiesel on Jan 1, says Minister Airlangga Hartarto
JAKARTA, Nov 29 (Reuters) - Indonesia remains committed to start implementing a 40% mandatory biodiesel mix with palm oil-based fuel, or B40, on Jan. 1 next year, its chief economic minister said on Friday.
Indonesia, the world's largest palm oil producer, currently uses B35, a 35% blend of palm oil-based biodiesel.
Minister Airlangga Hartarto said the B40 implementation was Indonesia's "concrete contribution to the world" as it could reduce carbon dioxide emissions by about 40 million metric tons.
He also said Indonesia's palm oil fund agency would be able to finance the gap between the cost of palm-oil based fuel and fossil fuel.
B40 will boost Indonesia's palm oil use for biodiesel to 13.9 million metric tons, from the estimated 11 million tons needed this year with B35, Indonesia's biofuel producers association APROBI has previously estimated. Reuters
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Colombia | Sowing the future: Agricultural sector - Palm Oil Report Summary
The country benefits from strategic location and high productivity, enabling exponential growth of this crop over recent decades. As the world's fourth-largest producer and the leading producer in the Americas, Colombia's potential paves the way for consolidation in new markets.
Key points
This crop stands out for its versatility, with applications across multiple productive sectors. In the food industry, it is used for producing oils, ice cream, and confectionery, while in the industrial sector, it is employed in manufacturing cosmetics, soaps, paints, and even biofuels.
Palm oil is the highest-yielding oilseed crop per hectare, significantly outperforming its counterparts. While other oilseeds produce an average of 0.6 tons of oil per hectare, palm oil yields 2.6 tons, a productivity advantage of over four times. Cultivated in tropical regions, Colombia is strategically positioned for competitive global production.
Globally, the unchecked expansion of palm oil cultivation has been linked to deforestation, particularly in Asia. However, Colombia has implemented mechanisms to promote sustainable practices. By 2023, approximately 35% of cultivated land and 30% of national production were certified for sustainability.
Palm oil emerges as a key resource in a global context demanding more sustainable production methods. Its potential to contribute to the energy transition through biofuel production, alongside its integration into circular economy initiatives, positions it as a strategic investment for sustainable development.
Research and development are critical to mitigating the latent sanitary risks in the sector. Combined with the implementation of sustainable measures, these efforts will drive rural development and strengthen Colombia's position in global trade. BBVA Research
--------
Malaysia-FGV profits continue to rise due to improved palm oil productivity
PETALING JAYA: Analysts are mostly positive about FGV Holdings Bhd’s earnings and have raised their estimates for its future results.
The group’s latest financial results for the third quarter ended Sep 30, 2024, (3Q24) saw FGV posting a net profit of RM87.16mil with basic earnings per share of 2.39 sen.
Its revenue increased to RM6.18bil compared with RM4.91bil in 3Q23.
Cumulatively, the group recorded a net profit of RM160.05mil and revenue of RM16.24bil. Its basic earnings per share for the nine months up to September (9M24) was 4.39 sen.
Commenting on the results, Hong Leong Investment Bank Research (HLIB Research) said FGV’s results exceeded expectations at 124.5% to 253.9% of consensus and its own full-year estimates, respectively, mainly due to improvement in fresh fruit bunch (FFB) production and yield.
HLIB Research noted that the group’s core net profit jumped to RM208.4mil in 3Q24, on a yearly basis, thanks to significantly improved plantation earnings.
This was driven by a 20% increase in FFB output, lower crude palm oil (CPO) production costs, improvements in the research and development segment, as well as higher margins and sales volume in its fertiliser business. The StarMY
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The fundamental flaw in the EU deforestation regulation
By Julian McGill / The Edge Malaysia
This is a particular problem for one of the more controversial crops covered by the regulation: the oil palm.
The law is the same for all crops it covers, but each crop has its own peculiarities. For the oil palm, nature provides one single fact that shapes its logistics: it produces fruit. The oil palm’s fruit, in turn, needs to be processed as soon as it ripens.
Just like during the apple harvest, when different orchards combine their crops in one press, the fruit from the oil palm needs to be aggregated and processed together in one mill. Individuals with a few trees, small family farms, large estates, dealers — all of them supply mills within a short radius of their palms.
Can mills buying from many small farmers really be sure that they can demonstrate legal compliance? Small farmers usually don’t read English and they certainly can’t afford their own legal department, human resources team or sustainability adviser. Tribal laws are often still the main source of legitimacy, not those written at the federal capital a thousand kilometres away. The inheritance of land is a particular problem: it follows ancient traditions not modern demands for the correct paperwork. More The EdgeMY
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November 28, 2024
EU Deforestation Regulation | Insights into proposed changes and latest guidance
Following the European Commission's proposal to postpone the application date of the EUDR by 12 months (to 30 December 2025 for large companies, and 30 December 2026 for micro and small enterprises), the European Parliament voted in favor of the EUDR and included new material changes, such as a new "no-risk" category for countries. Parliament decided to refer this file back to committee for interinstitutional negotiations. For these changes to enter into force, the agreed text will have to be endorsed by both European Union (EU) Council and European Parliament and published in the EU Official Journal.
This Alert sets out the current status and timeline of the EUDR, outstanding questions regarding the proposed "no-risk" category, noteworthy points of the published frequently asked questions (FAQs) and guidance in October, and implications for businesses in scope.
Recap on EUDR
Deforestation and forest degradation are significant contributors to climate change and biodiversity loss. The EUDR imposes stringent supply chain due diligence (DD) and reporting requirements on certain commodities and products imported into, traded within and exported out of the EU. Commodities and products include cattle, cocoa, coffee, palm oil, rubber, soy, wood, as well as certain related products such as leather, chocolate, certain furniture, tires, paper or natural rubber spare parts.
Companies must verify that goods are both deforestation-free and have been produced in compliance with relevant legislation of the country of production/harvest. EUDR compliance requires geolocation data collection down to the "plots of land" where relevant commodities have been produced or harvested, in addition to checking that local laws have been observed. DD statements need to be filed with the competent authorities evidencing "EUDR-compliant" status on a batch-level basis. Effective EUDR compliance requires a traceability system that allows the origin of relevant commodities to be identified throughout the upstream supply chains.
Consequences of noncompliance could be severe and can include significant fines, temporary exclusion from the EU market and public procurement processes or, in certain countries, personal liability for managing directors (non-exhaustive).
Current status and timeline of the EUDR
Given the need to extensively and transparently map chains of activities (including inhouse/intragroup) and collect and validate data throughout the supply chain, the original timeline of 30 December 2024 poses a significant challenge for many companies. Coupled with public scrutiny from various countries and organizations, the European Commission proposed a 12-month postponement to provide more time to prepare.
Following the EU legislative process, the EU Council approved the proposal to postpone. The European Parliament voted in favor and also included other material changes, including introducing a "no-risk" category for countries. For these changes to enter into force, the agreed text will have to be endorsed by both the Council and Parliament and published in the EU Official Journal.
When the European Commission proposed a 12-month extension, the substance of the EUDR was not in question and, in earlier negotiations, the European Commission and EU co-legislators had objected to a "no-risk" country category owing to potential increased EUDR circumvention risk. One outcome could see the European Commission disapprove the proposed material changes and withdraw its postponement proposal, meaning the original deadline of 30 December 2024 would apply.
Proposed "no-risk" category: potential issues
According to the European Parliament's proposal, whether a country or a region within a country qualifies for the "no-risk" category, is to be assessed based on three criteria:
"[F]orest area development has remained stable or has increased compared to 1990."
"[T]he Paris Agreement and international conventions on human rights and on preventing deforestation have been signed by those countries and parts thereof."
"[R]egulations on preventing deforestation and forest conservation at national level are strictly implemented and enforced in full transparency and monitored."
These three criteria may need to be defined in more detail to constitute a valid legal basis for categorization. Following are some areas that will also require further clarification: Global Tax News
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Industrialization and downstreaming to increase GDP: Bappenas
Jakarta (ANTARA) - The National Development Planning Ministry (Bappenas) has made industrialization and downstreaming as central policies to increase the industry's contribution to Indonesia’s gross domestic product (GDP).
"In the economic transformation agenda, industrialization and downstreaming are central policies to reverse the contribution of the industrial sector to GDP to increase," the agency’s deputy minister, Febrian Alphyanto Ruddyard, stated here on Tuesday.
Based on Indonesia's natural resources, nickel is the commodity with the largest ore reserves in the world, with a total of 5.24 billion tons, 49.7 million tons of the world's largest Crude Palm Oil (CPO) production, 3.13 billion tons of bauxite reserves, and 9.2 million tons of the second-largest seaweed production in the world.
Downstreaming of priority commodities is considered to be the key to increasing added value with the potential for an additional GDP of USD165 billion, based on Bappenas’ data.
Industrialization will also be focused on several priority sectors, including downstream of agro, mining, and marine industries; chemical and metal industries; as well as pharmaceuticals, electronics, and transportation equipment industries.
On the other hand, Febrian affirmed that industrial development should also focus on environmental aspects to boost competitiveness.
Currently, the processing industry is the second-largest sector producing carbon dioxide emissions. Meanwhile, the demands of the eight largest nickel ore-buying countries in the world have set a net zero emission (NZE) commitment in terms of policies and regulations.
To address this problem, the strategy to encourage the development of green industry is the implementation of a circular economy estimated to increase GDP by Rp539 trillion to Rp638 trillion (USD1 = around Rp15,856) in 2030.
The second strategy is developing an Eco-Industrial Park that uses renewable energy, sustainable materials, and resources; reduces waste; encourages recycling companies and facilitates sorting; carries out business remodeling; utilizes digital technology; and conducts industrial symbiosis.
The final strategy is to develop five priority sectors of the circular economy, comprising food, textiles, construction, plastics, and electronics. Antara News
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Bursa Malaysia aims to launch UCO futures contract in December
Futures and options exchange Bursa Malaysia Derivatives Berhad is aiming to launch a used cooking oil (UCO) futures contract in December to meet increasing demand for the product as a biofuel feedstock, the New Straits Times (NST) quoted the director of the Malaysian bourse as saying.
“It is already in the final stages. It is awaiting regulatory approvals,” Mohd Saleem Kader Bakas told Reuters during an oilseeds conference in Dalian, China.
Depending on the approvals, the contract could launch in December or in the first quarter of 2025, he said.
Bursa Malaysia’s UCO futures contract would follow the launch of its soyabean oil futures contract in March, NST wrote on 14 November.
The bourse was aiming to position itself as an edible oil hub, Mohd Saleem said.
Malaysia, the world’s second-largest producer of palm oil, exported almost 300,000 tonnes of biodiesel last year, while domestic consumption totalled around 1.1M tonnes, the report said.
“We are starting to see growing demand for used cooking oil as the market is driven by sustainability initiatives and biofuel mandates,” Mohd Saleem said.
Bursa Malaysia’s UCO contract would target the South-east Asian market, he added. OFI Magazine
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Call for Malaysia to supply palm oil under G2G
Commerce adviser Sheikh Bashir Uddin has requested the plantation and commodities minister of Malaysia to take steps to supply refined palm oil to Bangladesh under government-to-government (G2G) arrangement.
He made the call during his two-day visit to the Southeast Asian country.
During a meeting with his counterpart Johari Abdul Ghani, Mr Bashir shed light on various aspects of Bangladesh-Malaysia bilateral relations.
He informed the Malaysian minister of the demand, production and supply system of essential commodities in Bangladesh.
It is worth noting that Malaysia is the world's second-largest palm oil producer and Bangladesh is one of the major South Asian countries in terms of importing Malaysian crude palm oil.
Mr Bashir also highlighted his government's plan to provide essential commodities like edible oil at fair prices to 10-million families through the Trading Corporation of Bangladesh under the social safety-net programme.
He, therefore, requested Mr Ghani to take necessary steps as early as possible to supply refined palm oil to Bangladesh, under the support of the Malaysian government, ahead of the upcoming holy Ramadan.
The Malaysian minister took note of the request for palm oil supply on a G2G basis under the patronage of his government and assured the adviser of taking effective measures after discussing this matter with local businessmen.
The topics discussed included collaboration in the rubber sector development, potential trade and investment opportunities, and cooperation in establishing the 'Commodity Exchange' mooted by the Chittagong Stock Exchange. Financial ExpressBD
EU Deforestation Regulation | Insights into proposed changes and latest guidance
- The recent European Union Regulation on deforestation-free products (EU Deforestation Regulation or EUDR) includes a possible postponement and a new "no risk" category for countries.
- Businesses in scope should monitor legislative developments and continue to plan for effective EUDR compliance.
Following the European Commission's proposal to postpone the application date of the EUDR by 12 months (to 30 December 2025 for large companies, and 30 December 2026 for micro and small enterprises), the European Parliament voted in favor of the EUDR and included new material changes, such as a new "no-risk" category for countries. Parliament decided to refer this file back to committee for interinstitutional negotiations. For these changes to enter into force, the agreed text will have to be endorsed by both European Union (EU) Council and European Parliament and published in the EU Official Journal.
This Alert sets out the current status and timeline of the EUDR, outstanding questions regarding the proposed "no-risk" category, noteworthy points of the published frequently asked questions (FAQs) and guidance in October, and implications for businesses in scope.
Recap on EUDR
Deforestation and forest degradation are significant contributors to climate change and biodiversity loss. The EUDR imposes stringent supply chain due diligence (DD) and reporting requirements on certain commodities and products imported into, traded within and exported out of the EU. Commodities and products include cattle, cocoa, coffee, palm oil, rubber, soy, wood, as well as certain related products such as leather, chocolate, certain furniture, tires, paper or natural rubber spare parts.
Companies must verify that goods are both deforestation-free and have been produced in compliance with relevant legislation of the country of production/harvest. EUDR compliance requires geolocation data collection down to the "plots of land" where relevant commodities have been produced or harvested, in addition to checking that local laws have been observed. DD statements need to be filed with the competent authorities evidencing "EUDR-compliant" status on a batch-level basis. Effective EUDR compliance requires a traceability system that allows the origin of relevant commodities to be identified throughout the upstream supply chains.
Consequences of noncompliance could be severe and can include significant fines, temporary exclusion from the EU market and public procurement processes or, in certain countries, personal liability for managing directors (non-exhaustive).
Current status and timeline of the EUDR
Given the need to extensively and transparently map chains of activities (including inhouse/intragroup) and collect and validate data throughout the supply chain, the original timeline of 30 December 2024 poses a significant challenge for many companies. Coupled with public scrutiny from various countries and organizations, the European Commission proposed a 12-month postponement to provide more time to prepare.
Following the EU legislative process, the EU Council approved the proposal to postpone. The European Parliament voted in favor and also included other material changes, including introducing a "no-risk" category for countries. For these changes to enter into force, the agreed text will have to be endorsed by both the Council and Parliament and published in the EU Official Journal.
When the European Commission proposed a 12-month extension, the substance of the EUDR was not in question and, in earlier negotiations, the European Commission and EU co-legislators had objected to a "no-risk" country category owing to potential increased EUDR circumvention risk. One outcome could see the European Commission disapprove the proposed material changes and withdraw its postponement proposal, meaning the original deadline of 30 December 2024 would apply.
Proposed "no-risk" category: potential issues
According to the European Parliament's proposal, whether a country or a region within a country qualifies for the "no-risk" category, is to be assessed based on three criteria:
"[F]orest area development has remained stable or has increased compared to 1990."
"[T]he Paris Agreement and international conventions on human rights and on preventing deforestation have been signed by those countries and parts thereof."
"[R]egulations on preventing deforestation and forest conservation at national level are strictly implemented and enforced in full transparency and monitored."
These three criteria may need to be defined in more detail to constitute a valid legal basis for categorization. Following are some areas that will also require further clarification: Global Tax News
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Industrialization and downstreaming to increase GDP: Bappenas
Jakarta (ANTARA) - The National Development Planning Ministry (Bappenas) has made industrialization and downstreaming as central policies to increase the industry's contribution to Indonesia’s gross domestic product (GDP).
"In the economic transformation agenda, industrialization and downstreaming are central policies to reverse the contribution of the industrial sector to GDP to increase," the agency’s deputy minister, Febrian Alphyanto Ruddyard, stated here on Tuesday.
Based on Indonesia's natural resources, nickel is the commodity with the largest ore reserves in the world, with a total of 5.24 billion tons, 49.7 million tons of the world's largest Crude Palm Oil (CPO) production, 3.13 billion tons of bauxite reserves, and 9.2 million tons of the second-largest seaweed production in the world.
Downstreaming of priority commodities is considered to be the key to increasing added value with the potential for an additional GDP of USD165 billion, based on Bappenas’ data.
Industrialization will also be focused on several priority sectors, including downstream of agro, mining, and marine industries; chemical and metal industries; as well as pharmaceuticals, electronics, and transportation equipment industries.
On the other hand, Febrian affirmed that industrial development should also focus on environmental aspects to boost competitiveness.
Currently, the processing industry is the second-largest sector producing carbon dioxide emissions. Meanwhile, the demands of the eight largest nickel ore-buying countries in the world have set a net zero emission (NZE) commitment in terms of policies and regulations.
To address this problem, the strategy to encourage the development of green industry is the implementation of a circular economy estimated to increase GDP by Rp539 trillion to Rp638 trillion (USD1 = around Rp15,856) in 2030.
The second strategy is developing an Eco-Industrial Park that uses renewable energy, sustainable materials, and resources; reduces waste; encourages recycling companies and facilitates sorting; carries out business remodeling; utilizes digital technology; and conducts industrial symbiosis.
The final strategy is to develop five priority sectors of the circular economy, comprising food, textiles, construction, plastics, and electronics. Antara News
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Bursa Malaysia aims to launch UCO futures contract in December
Futures and options exchange Bursa Malaysia Derivatives Berhad is aiming to launch a used cooking oil (UCO) futures contract in December to meet increasing demand for the product as a biofuel feedstock, the New Straits Times (NST) quoted the director of the Malaysian bourse as saying.
“It is already in the final stages. It is awaiting regulatory approvals,” Mohd Saleem Kader Bakas told Reuters during an oilseeds conference in Dalian, China.
Depending on the approvals, the contract could launch in December or in the first quarter of 2025, he said.
Bursa Malaysia’s UCO futures contract would follow the launch of its soyabean oil futures contract in March, NST wrote on 14 November.
The bourse was aiming to position itself as an edible oil hub, Mohd Saleem said.
Malaysia, the world’s second-largest producer of palm oil, exported almost 300,000 tonnes of biodiesel last year, while domestic consumption totalled around 1.1M tonnes, the report said.
“We are starting to see growing demand for used cooking oil as the market is driven by sustainability initiatives and biofuel mandates,” Mohd Saleem said.
Bursa Malaysia’s UCO contract would target the South-east Asian market, he added. OFI Magazine
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Call for Malaysia to supply palm oil under G2G
Commerce adviser Sheikh Bashir Uddin has requested the plantation and commodities minister of Malaysia to take steps to supply refined palm oil to Bangladesh under government-to-government (G2G) arrangement.
He made the call during his two-day visit to the Southeast Asian country.
During a meeting with his counterpart Johari Abdul Ghani, Mr Bashir shed light on various aspects of Bangladesh-Malaysia bilateral relations.
He informed the Malaysian minister of the demand, production and supply system of essential commodities in Bangladesh.
It is worth noting that Malaysia is the world's second-largest palm oil producer and Bangladesh is one of the major South Asian countries in terms of importing Malaysian crude palm oil.
Mr Bashir also highlighted his government's plan to provide essential commodities like edible oil at fair prices to 10-million families through the Trading Corporation of Bangladesh under the social safety-net programme.
He, therefore, requested Mr Ghani to take necessary steps as early as possible to supply refined palm oil to Bangladesh, under the support of the Malaysian government, ahead of the upcoming holy Ramadan.
The Malaysian minister took note of the request for palm oil supply on a G2G basis under the patronage of his government and assured the adviser of taking effective measures after discussing this matter with local businessmen.
The topics discussed included collaboration in the rubber sector development, potential trade and investment opportunities, and cooperation in establishing the 'Commodity Exchange' mooted by the Chittagong Stock Exchange. Financial ExpressBD
November 27, 2024
As rich states fail to reduce planet warming, Malaysia must take fight to global stage
KUALA LUMPUR, Nov 26 — Malaysia’s chances of adapting to global warming cannot solely depend on domestic policy but must include more aggressive international action, Khazanah Research Institute (KRI) said in its latest report on the climate crisis.
The KRI report was released last Friday, ahead of a controversial US$300 billion climate deal reached in Azerbaijan over the weekend on how world governments will deal with planetary warming that drove a bigger wedge between developed and developing nations.
In its report, the local think tank said that while Malaysia has been a keen adopter of climate initiatives set out by the 2015 Paris Agreement, domestic action has played a relatively small role in global climate stabilisation because of the country’s relatively small share of emissions.
The South-east Asian nation with a population of 33 million has been a net positive emitter only since 2004 due to significant carbon sinks mostly in the form of forests, accounting for just 0.4 per cent of total global emissions.
“Domestic mitigation action alone — at an estimated minimum cost of RM1.2-RM1.3 trillion — cannot perceptibly reduce Malaysia’s risk to climate impacts unless big emitters engage in big cuts,” KRI said in the report.
“The tragedy of climate change is that the world is dependent on some of its most selfish, irresponsible yet powerful states in order to save itself from climate catastrophe.
“Safeguarding Malaysia’s future climate security requires assessment of international relations and strategic interventions to build favourable outcomes for the long-term survival and prosperity of our small nation-state,” it added. Yahoo Malaysia News
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Plantation ministry sets sights on oil palm replanting across 77,000 hectares over next five years
KUALA LUMPUR (Nov 26): The government has targeted oil palm replanting on 77,000 hectares of land over the next five years (2025–2029) to ensure the palm sector remains sustainable and competitive through the implementation of an oil palm replanting programme, specifically among smallholders.
The Ministry of Plantation and Commodities (KPK) said that research and development (R&D) will be enhanced to produce high-yielding oil palm plants using tissue culture techniques and conventional seed production to meet the demand for replanting.
“Currently, the Malaysian Palm Oil Board (MPOB) has launched three commercial clones, namely Clonal Palm Series 1 (CPS1), CPS2 and CPS3 to improve yield and productivity.
"MPOB is also facilitating the adoption of automation, mechanisation and IR4.0 (Industrial Revolution 4.0) technologies to boost production and quality,” KPK said in a written reply published on the Parliament website Tuesday.
The ministry said this in response to a question from Nurul Amin Hamid (PN-Padang Terap) regarding the long-term strategic plan of KPK in the aspects of rejuvenating the agri-commodity sector, especially rubber and oil palm.
Meanwhile, in response to a question from Jamaludin Yahya (PN-Pasir Salak) on the readiness of the local ecosystem for smart agricultural technology, KPK informed that MPOB is collaborating with the Malaysian Communications and Multimedia Commission (MCMC) through the AgriNXT programme to provide digital solutions for the oil palm industry.
"It is hoped that through these efforts, the acceptance of smart agricultural technology can be enhanced, thereby improving the effectiveness of oil palm estate management and increase the country’s oil palm output,” it said. The EdgeMY
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Malaysia to be leading producer of Sustainable Aviation Fuel
KUALA LUMPUR: Malaysia, as the second-largest palm oil producer globally, is strategically positioned to become one of the world's leading producers of Sustainable Aviation Fuel (SAF).
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said aside from the country's commitment to achieving net-zero carbon emissions by 2050, SAF also holds significant potential for the national economy, particularly in enhancing the implementation of a circular economy.
"The use of SAF is one of the initiatives introduced to meet the International Civil Aviation Organisation's goal of reducing carbon emissions in the aviation sector by five per cent by 2030.
"The government plans to make this initiative mandatory starting in 2027. Malaysia is expected to begin sustainably producing SAF in 2027.
"(And) production capacity will be gradually increased based on the capacity of production plants and the availability of feedstock, in line with Malaysia's agenda to strengthen its position as a SAF producer in Southeast Asia," he said during the minister's question time in the Dewan Rakyat today.
Johari (BN-Titiwangsa) said this in response to Khairil Nizam Khirudin (PN-Jerantut) who inquired about the government's target and strategy to position Malaysia as a regional leader in SAF production, particularly given the country's potential for bio-feedstock.
Johari added that in line with the Malaysia Aviation Decarbonisation Blueprint, the ministry was also working with the Investment, Trade and Industry Ministry to develop the National Strategy for SAF to support the growth of the country's SAF production and usage industry.
He said the government would expand the implementation of the used cooking oil collection awareness programme nationwide, in collaboration with Petronas.
"This awareness programme is crucial in ensuring that the SAF production industry has a sufficient supply of raw materials in the country."
Meanwhile, he added that renewable fuel producer EcoCeres Renewable Fuels Sdn Bhd was in the process of constructing a SAF refining and production plant in Tanjung Langsat, Johor, with an annual production capacity of 350,000 metric tonnes.
"Petronas will also build a SAF refining and production plant through a collaboration with Italy's Enilive and Japan's Euglena in Pengerang, Johor, with an annual production capacity of 650,000 metric tonnes." New Straits Times
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Palm oil is no longer the cheapest, jeopardizing its dominant market share
Palm oil’s reputation as an affordable and abundant crop makes it ubiquitous on store shelves as part of products ranging from cookies to cosmetics, but rising prices are threatening that dominance, Bloomberg analysts said.
Unlike soybeans, sunflowers and canola, palm oil is harvested year-round and requires less land to grow, which means it’s usually cheaper. However, the tropical commodity has ceded its status as the world’s cheapest vegetable oil to soybean oil this year when prices surged amid concerns over production curbs in Malaysia and Indonesia, as well as plans to shift more of its supply to biofuels.
If the premium to palm oil persists, bakery and cosmetics makers will have to make tough decisions: absorb the higher cost, pass it on to consumers, or change their recipes with less expensive alternatives. As the agency notes, some Brazilian manufacturers have already started using soybean oil as a substitute for palm oil.
Cosmetics companies use palm oil as a skin neutral, while food manufacturers worry that changing recipes could affect demand, as oils derived from olives or coconuts usually have a distinct flavor that limits their viability as substitutes.
“The end product will be ruined if producers just switch to other oils,” said Satya Varka, senior analyst at Fast Markets Palm Oil Analytics in Singapore, which predicts palm oil prices will fall after rising more than 25 percent this year.
The global soybean harvest is forecast to be plentiful, especially in Brazil, and the U.S. Department of Agriculture expects global demand for palm oil over soybean oil to be the lowest in three years this season. There is no quick fix for the palm sector’s production problems. Farmers in Malaysia and Indonesia are hesitant to replant old trees that take years to bear fruit, and Europe’s tough anti-deforestation measures make it difficult to clear new fields. UK Agro Consult
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Soyoil assumes power position as palm oil prices reach near-record premium
NAPERVILLE, Illinois, Nov 26 (Reuters) - Despite its status as the world's most plentiful vegetable oil, palm oil is no longer the cheapest, as supply concerns have pushed up prices by nearly 30% this year.
Meanwhile, prices for rival soybean oil have declined more than 11% so far this year, driven by record global soybean output.
This has set up a rare discount of soybean oil to palm oil, which has accelerated to near-record levels in recent weeks.
Palm oil accounts for about 40% of global output of major vegoils, which include rapeseed and sunflower oil, while soybean oil claims a one-third share. Therefore, palm oil is almost always cheaper than soybean oil, and the average discount over the last decade was around $170 per metric ton.
But on Monday, benchmark Malaysian palm oil futures were about $145 more expensive per ton than most-active Chicago soybean oil futures , marking palm’s steepest premium versus soyoil in decades.
Palm oil grabbed the vegoil market’s attention three months ago when it became pricier than soy oil, and the premium has only escalated since, owing partly to an output skid in top producer Indonesia.
Palm oil is found in a wide range of products including cooking oil, soaps and chocolate. But it has also been increasingly used as a biofuel additive, particularly in the top producing countries, tightening exportable supply.
Unlike soybeans which are planted every six months, palm is harvested year-round, meaning that palm production problems can take many months to correct.
The recent price inversion may eventually correct, however, since it is very rare for palm oil to sustain a premium to soy oil. The longest such span was about 10 months between 1998 and 1999, linked to reduced palm output off the 1997-98 El Nino.
Palm oil’s two-country supply setup does not leave much room for error. Malaysia and Indonesia contribute 83% of the world’s production, and the two countries account for 86% of global exports.
Top-two soy oil exporters Argentina and Brazil account for 58% of global shipments, though they produce only 29% of the world’s annual output. China and the United States are the top two soy oil producers, accounting for a combined 47% of market share.
The United States had been a key soy oil exporter within the last decade, but the biofuel policy-related surge in domestic prices choked off shipments two years ago. U.S. soy oil export sales now stand at four-year highs for the date, perhaps related to the palm-soy oil price dynamic.
Both rapeseed and sunflower oil production are projected to shrink globally in the 2024-25 season, meaning that the palm oil supply squeeze could at least temporarily thrust soybean oil further into the global spotlight and potentially limit downside price risk.
Karen Braun is a market analyst for Reuters. Views expressed above are her own.
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RFA to CARB: Time to step up monitoring and verification of imported UCO feedstock
November 26, 2024
BY Renewable Fuels Association
In comments submitted on Nov. 25 in response to a request for information from the California Air Resources Board, the Renewable Fuels Association urged the state agency to do more to ensure the integrity of imported used cooking oil (UCO) and tallow for biomass-based diesel production under the state’s Low Carbon Fuel Standard.
According to CARB data on fuel consumption in California, usage of biomass-based diesel (BBD) produced from UCO doubled from 2019 to 2023, while usage of BBD produced from tallow tripled, RFA noted, and some in the marketplace believe these feedstocks may be of questionable origin and content.
“Many biofuel market participants and other observers have expressed concerns about the legitimacy of imported ‘waste’ feedstocks and have questioned whether some volumes of UCO in particular may contain palm oil and/or other incorrectly labeled fats, oils, and greases,” wrote RFA Chief Economist Scott Richman. “These concerns have been heightened in recent months as Indonesia and Malaysia, which jointly account for nearly 85% of world palm oil production, have emerged alongside China as leading origins of UCO imported into the U.S.”
This flood of foreign feedstock has suppressed demand and prices for domestically produced feedstocks like distillers corn oil, which is produced by the ethanol industry. Moreover, the impact extends beyond the LCFS program. Significant volumes of imported waste-based BBD, along with BBD produced domestically from imported UCO and tallow (and consumed in California) are also being used to satisfy conventional renewable fuel volume obligations under the federal Renewable Fuel Standard, undermining demand for ethanol and, especially, its use in higher blends like E15 and E85. Ethanol Producer
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China removing export tax rebate can help curb palm oil UCO fraud, boost domestic biofuels: USDA
China's removal of the export tax rebate on renewable waste feedstock, such as used cooking oil, could help stop the alleged practice of repackaging virgin palm oil as waste, according to a report from the US Department of Agriculture.
The USDA said Nov. 26 that China's decision earlier this month to remove a 13% tax rebate for UCO exports effective December would both lower the incentive for fraud and keep more material in the country for renewable diesel and sustainable aviation fuel production.
There are also reports that Chinese authorities are investigating abuses within the rebate system, where importers allegedly mixed palm oil acid with UCO to fraudulently claim tax rebates, the USDA said.
In a significant policy shift aimed at bolstering the domestic bio-based diesel industry, China announced Nov. 15 the termination of the export tax rebate for UCO, effective Dec. 1.
The announcement already triggered notable changes in the UCO market.
Prices for waste oil have seen a dramatic drop, with northern China's export-quality brown grease falling 11% shortly after the policy disclosure. This reflected the anticipated reduction in export activity and a pivot toward enhancing domestic supply chains, as per the USDA.
Chinese UCO producers have set higher contract prices for December and January. Exporters previously used to consider the 13% rebate in their profitability calculations.
Key Chinese UCO producers set initial December and January contract prices at $1,000-$1,050/mt, an increase of $100-$150/mt over previous rates.
On the procurement side, waste oil prices dropped significantly. Export-quality brown grease in northern China, which averaged Yuan 6,800/mt ($940/mt) on Nov. 15 when the policy was announced, fell to Yuan 6,100/mt ($843/mt) by Nov. 18, the USDA said.
Several processing plants have paused waste oil collection, awaiting further developments. The potential volatility in coming months could lead to industry consolidation as smaller traders are acquired by larger companies, according to market sources.
FOB China UCO offers have been rescinded, with new offers priced at least $150/mt higher. This poses challenges for UCO traders that rely heavily on the rebate for profitability. The estimated rebate loss for exporters ranged $109-$117/mt, industry sources said.
Long-term implications
The policy is expected to have broader economic and strategic implications. By retaining more UCO within China, the government aims to stabilize domestic supply, potentially paving the way for future mandates on SAF and other biofuel-supportive measures.
China released in August a target for adopting SAF in its aviation sector, requiring at least 2% SAF blend by 2025 and increasing to 15% by 2030. SP Global
As rich states fail to reduce planet warming, Malaysia must take fight to global stage
KUALA LUMPUR, Nov 26 — Malaysia’s chances of adapting to global warming cannot solely depend on domestic policy but must include more aggressive international action, Khazanah Research Institute (KRI) said in its latest report on the climate crisis.
The KRI report was released last Friday, ahead of a controversial US$300 billion climate deal reached in Azerbaijan over the weekend on how world governments will deal with planetary warming that drove a bigger wedge between developed and developing nations.
In its report, the local think tank said that while Malaysia has been a keen adopter of climate initiatives set out by the 2015 Paris Agreement, domestic action has played a relatively small role in global climate stabilisation because of the country’s relatively small share of emissions.
The South-east Asian nation with a population of 33 million has been a net positive emitter only since 2004 due to significant carbon sinks mostly in the form of forests, accounting for just 0.4 per cent of total global emissions.
“Domestic mitigation action alone — at an estimated minimum cost of RM1.2-RM1.3 trillion — cannot perceptibly reduce Malaysia’s risk to climate impacts unless big emitters engage in big cuts,” KRI said in the report.
“The tragedy of climate change is that the world is dependent on some of its most selfish, irresponsible yet powerful states in order to save itself from climate catastrophe.
“Safeguarding Malaysia’s future climate security requires assessment of international relations and strategic interventions to build favourable outcomes for the long-term survival and prosperity of our small nation-state,” it added. Yahoo Malaysia News
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Plantation ministry sets sights on oil palm replanting across 77,000 hectares over next five years
KUALA LUMPUR (Nov 26): The government has targeted oil palm replanting on 77,000 hectares of land over the next five years (2025–2029) to ensure the palm sector remains sustainable and competitive through the implementation of an oil palm replanting programme, specifically among smallholders.
The Ministry of Plantation and Commodities (KPK) said that research and development (R&D) will be enhanced to produce high-yielding oil palm plants using tissue culture techniques and conventional seed production to meet the demand for replanting.
“Currently, the Malaysian Palm Oil Board (MPOB) has launched three commercial clones, namely Clonal Palm Series 1 (CPS1), CPS2 and CPS3 to improve yield and productivity.
"MPOB is also facilitating the adoption of automation, mechanisation and IR4.0 (Industrial Revolution 4.0) technologies to boost production and quality,” KPK said in a written reply published on the Parliament website Tuesday.
The ministry said this in response to a question from Nurul Amin Hamid (PN-Padang Terap) regarding the long-term strategic plan of KPK in the aspects of rejuvenating the agri-commodity sector, especially rubber and oil palm.
Meanwhile, in response to a question from Jamaludin Yahya (PN-Pasir Salak) on the readiness of the local ecosystem for smart agricultural technology, KPK informed that MPOB is collaborating with the Malaysian Communications and Multimedia Commission (MCMC) through the AgriNXT programme to provide digital solutions for the oil palm industry.
"It is hoped that through these efforts, the acceptance of smart agricultural technology can be enhanced, thereby improving the effectiveness of oil palm estate management and increase the country’s oil palm output,” it said. The EdgeMY
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Malaysia to be leading producer of Sustainable Aviation Fuel
KUALA LUMPUR: Malaysia, as the second-largest palm oil producer globally, is strategically positioned to become one of the world's leading producers of Sustainable Aviation Fuel (SAF).
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said aside from the country's commitment to achieving net-zero carbon emissions by 2050, SAF also holds significant potential for the national economy, particularly in enhancing the implementation of a circular economy.
"The use of SAF is one of the initiatives introduced to meet the International Civil Aviation Organisation's goal of reducing carbon emissions in the aviation sector by five per cent by 2030.
"The government plans to make this initiative mandatory starting in 2027. Malaysia is expected to begin sustainably producing SAF in 2027.
"(And) production capacity will be gradually increased based on the capacity of production plants and the availability of feedstock, in line with Malaysia's agenda to strengthen its position as a SAF producer in Southeast Asia," he said during the minister's question time in the Dewan Rakyat today.
Johari (BN-Titiwangsa) said this in response to Khairil Nizam Khirudin (PN-Jerantut) who inquired about the government's target and strategy to position Malaysia as a regional leader in SAF production, particularly given the country's potential for bio-feedstock.
Johari added that in line with the Malaysia Aviation Decarbonisation Blueprint, the ministry was also working with the Investment, Trade and Industry Ministry to develop the National Strategy for SAF to support the growth of the country's SAF production and usage industry.
He said the government would expand the implementation of the used cooking oil collection awareness programme nationwide, in collaboration with Petronas.
"This awareness programme is crucial in ensuring that the SAF production industry has a sufficient supply of raw materials in the country."
Meanwhile, he added that renewable fuel producer EcoCeres Renewable Fuels Sdn Bhd was in the process of constructing a SAF refining and production plant in Tanjung Langsat, Johor, with an annual production capacity of 350,000 metric tonnes.
"Petronas will also build a SAF refining and production plant through a collaboration with Italy's Enilive and Japan's Euglena in Pengerang, Johor, with an annual production capacity of 650,000 metric tonnes." New Straits Times
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Palm oil is no longer the cheapest, jeopardizing its dominant market share
Palm oil’s reputation as an affordable and abundant crop makes it ubiquitous on store shelves as part of products ranging from cookies to cosmetics, but rising prices are threatening that dominance, Bloomberg analysts said.
Unlike soybeans, sunflowers and canola, palm oil is harvested year-round and requires less land to grow, which means it’s usually cheaper. However, the tropical commodity has ceded its status as the world’s cheapest vegetable oil to soybean oil this year when prices surged amid concerns over production curbs in Malaysia and Indonesia, as well as plans to shift more of its supply to biofuels.
If the premium to palm oil persists, bakery and cosmetics makers will have to make tough decisions: absorb the higher cost, pass it on to consumers, or change their recipes with less expensive alternatives. As the agency notes, some Brazilian manufacturers have already started using soybean oil as a substitute for palm oil.
Cosmetics companies use palm oil as a skin neutral, while food manufacturers worry that changing recipes could affect demand, as oils derived from olives or coconuts usually have a distinct flavor that limits their viability as substitutes.
“The end product will be ruined if producers just switch to other oils,” said Satya Varka, senior analyst at Fast Markets Palm Oil Analytics in Singapore, which predicts palm oil prices will fall after rising more than 25 percent this year.
The global soybean harvest is forecast to be plentiful, especially in Brazil, and the U.S. Department of Agriculture expects global demand for palm oil over soybean oil to be the lowest in three years this season. There is no quick fix for the palm sector’s production problems. Farmers in Malaysia and Indonesia are hesitant to replant old trees that take years to bear fruit, and Europe’s tough anti-deforestation measures make it difficult to clear new fields. UK Agro Consult
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Soyoil assumes power position as palm oil prices reach near-record premium
NAPERVILLE, Illinois, Nov 26 (Reuters) - Despite its status as the world's most plentiful vegetable oil, palm oil is no longer the cheapest, as supply concerns have pushed up prices by nearly 30% this year.
Meanwhile, prices for rival soybean oil have declined more than 11% so far this year, driven by record global soybean output.
This has set up a rare discount of soybean oil to palm oil, which has accelerated to near-record levels in recent weeks.
Palm oil accounts for about 40% of global output of major vegoils, which include rapeseed and sunflower oil, while soybean oil claims a one-third share. Therefore, palm oil is almost always cheaper than soybean oil, and the average discount over the last decade was around $170 per metric ton.
But on Monday, benchmark Malaysian palm oil futures were about $145 more expensive per ton than most-active Chicago soybean oil futures , marking palm’s steepest premium versus soyoil in decades.
Palm oil grabbed the vegoil market’s attention three months ago when it became pricier than soy oil, and the premium has only escalated since, owing partly to an output skid in top producer Indonesia.
Palm oil is found in a wide range of products including cooking oil, soaps and chocolate. But it has also been increasingly used as a biofuel additive, particularly in the top producing countries, tightening exportable supply.
Unlike soybeans which are planted every six months, palm is harvested year-round, meaning that palm production problems can take many months to correct.
The recent price inversion may eventually correct, however, since it is very rare for palm oil to sustain a premium to soy oil. The longest such span was about 10 months between 1998 and 1999, linked to reduced palm output off the 1997-98 El Nino.
Palm oil’s two-country supply setup does not leave much room for error. Malaysia and Indonesia contribute 83% of the world’s production, and the two countries account for 86% of global exports.
Top-two soy oil exporters Argentina and Brazil account for 58% of global shipments, though they produce only 29% of the world’s annual output. China and the United States are the top two soy oil producers, accounting for a combined 47% of market share.
The United States had been a key soy oil exporter within the last decade, but the biofuel policy-related surge in domestic prices choked off shipments two years ago. U.S. soy oil export sales now stand at four-year highs for the date, perhaps related to the palm-soy oil price dynamic.
Both rapeseed and sunflower oil production are projected to shrink globally in the 2024-25 season, meaning that the palm oil supply squeeze could at least temporarily thrust soybean oil further into the global spotlight and potentially limit downside price risk.
Karen Braun is a market analyst for Reuters. Views expressed above are her own.
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RFA to CARB: Time to step up monitoring and verification of imported UCO feedstock
November 26, 2024
BY Renewable Fuels Association
In comments submitted on Nov. 25 in response to a request for information from the California Air Resources Board, the Renewable Fuels Association urged the state agency to do more to ensure the integrity of imported used cooking oil (UCO) and tallow for biomass-based diesel production under the state’s Low Carbon Fuel Standard.
According to CARB data on fuel consumption in California, usage of biomass-based diesel (BBD) produced from UCO doubled from 2019 to 2023, while usage of BBD produced from tallow tripled, RFA noted, and some in the marketplace believe these feedstocks may be of questionable origin and content.
“Many biofuel market participants and other observers have expressed concerns about the legitimacy of imported ‘waste’ feedstocks and have questioned whether some volumes of UCO in particular may contain palm oil and/or other incorrectly labeled fats, oils, and greases,” wrote RFA Chief Economist Scott Richman. “These concerns have been heightened in recent months as Indonesia and Malaysia, which jointly account for nearly 85% of world palm oil production, have emerged alongside China as leading origins of UCO imported into the U.S.”
This flood of foreign feedstock has suppressed demand and prices for domestically produced feedstocks like distillers corn oil, which is produced by the ethanol industry. Moreover, the impact extends beyond the LCFS program. Significant volumes of imported waste-based BBD, along with BBD produced domestically from imported UCO and tallow (and consumed in California) are also being used to satisfy conventional renewable fuel volume obligations under the federal Renewable Fuel Standard, undermining demand for ethanol and, especially, its use in higher blends like E15 and E85. Ethanol Producer
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China removing export tax rebate can help curb palm oil UCO fraud, boost domestic biofuels: USDA
China's removal of the export tax rebate on renewable waste feedstock, such as used cooking oil, could help stop the alleged practice of repackaging virgin palm oil as waste, according to a report from the US Department of Agriculture.
The USDA said Nov. 26 that China's decision earlier this month to remove a 13% tax rebate for UCO exports effective December would both lower the incentive for fraud and keep more material in the country for renewable diesel and sustainable aviation fuel production.
There are also reports that Chinese authorities are investigating abuses within the rebate system, where importers allegedly mixed palm oil acid with UCO to fraudulently claim tax rebates, the USDA said.
In a significant policy shift aimed at bolstering the domestic bio-based diesel industry, China announced Nov. 15 the termination of the export tax rebate for UCO, effective Dec. 1.
The announcement already triggered notable changes in the UCO market.
Prices for waste oil have seen a dramatic drop, with northern China's export-quality brown grease falling 11% shortly after the policy disclosure. This reflected the anticipated reduction in export activity and a pivot toward enhancing domestic supply chains, as per the USDA.
Chinese UCO producers have set higher contract prices for December and January. Exporters previously used to consider the 13% rebate in their profitability calculations.
Key Chinese UCO producers set initial December and January contract prices at $1,000-$1,050/mt, an increase of $100-$150/mt over previous rates.
On the procurement side, waste oil prices dropped significantly. Export-quality brown grease in northern China, which averaged Yuan 6,800/mt ($940/mt) on Nov. 15 when the policy was announced, fell to Yuan 6,100/mt ($843/mt) by Nov. 18, the USDA said.
Several processing plants have paused waste oil collection, awaiting further developments. The potential volatility in coming months could lead to industry consolidation as smaller traders are acquired by larger companies, according to market sources.
FOB China UCO offers have been rescinded, with new offers priced at least $150/mt higher. This poses challenges for UCO traders that rely heavily on the rebate for profitability. The estimated rebate loss for exporters ranged $109-$117/mt, industry sources said.
Long-term implications
The policy is expected to have broader economic and strategic implications. By retaining more UCO within China, the government aims to stabilize domestic supply, potentially paving the way for future mandates on SAF and other biofuel-supportive measures.
China released in August a target for adopting SAF in its aviation sector, requiring at least 2% SAF blend by 2025 and increasing to 15% by 2030. SP Global
November 26, 2024
Avoiding Self-Inflicted Trade And Economic Wounds
Op-Ed by Paul Driessen
European debates and experiences offer guidance for President Trump and Congress
President-elect Trump says he will impose tariffs on foreign products, to raise revenue and in response to practices that give foreign manufacturers unfair advantages over American companies. Europe’s debates over similar issues offer relevant guidance, advisories and impetus.
As the European Union looks ahead to the next five-year term of its new European Commission and Parliament, officials talk about playing “its full part on the world stage in geopolitics.” Europe and the world heard it before, when Ursula von der Leyen promised a “geopolitical Commission” at the start of her first presidential term in Brussels in 2019. It didn’t happen then, and it’s not likely to happen now.
To be fair, it was a challenging five years. The unprecedented Covid pandemic kept the EU focused on domestic questions of healthcare, lockdowns, debt financing and student learning. Russia’s Ukraine invasion shortly after ensured that European policy priorities remained largely regional.
But possibly the most significant blow to her dream of a geopolitical Commission was entirely self-inflicted: the EU’s obsession with the utopian Green Deal.
Especially by raising energy and petrochemical prices to exorbitant levels, the Green Deal regulatory regime undercut EU competitiveness, particularly in agriculture and industry. European Commission international ambitions were thereby reduced to a domestic protectionist agenda designed to hobble potential competitors by erecting non-tariff barriers affecting – and infuriating – Europe’s trading partners, whether they compete on productivity or cost.
Citing the “climate crisis,” the EU demanded that the rest of the world adopt its own crippling regulations – or risk losing access to its markets. Soaring prices for “clean, renewable, sustainable” wind and solar energy (and duplicative backup power) destroyed jobs, made home heating and food extremely expensive for many families, and reduced living standards.
--------
Palm Plantations And Biodiversity: Go Along Or Go Against?
JAKARTA – A certain group of people consider the biodiversity of oil palm plantations as very low. But they could not provide convincing data to support their opinion. The following facts and descriptions will show the biodiversity reality of palm plantations.
The oil palm trees that are planted with minimum tillage, minimum weeding and with no ratoons, will grow into trees with relatively large and high trunks and have a canopy cover almost 100 percent upon maturity. Oil palm trees have a life span or production cycle of 25-30 years.
During land clearing or planting, some of the vegetations may migrate in short time to surrounding areas, but then they will return to the oil palm plantation areas. The characteristics of oil palm plantations which have a production cycle (life span) of 25-30 years also allow for the re-growth of biodiversity in the plantation areas (except for large mammals) along with the increasing age of the oil palm trees (PASPI Monitor, 2021a).
A variety of empirical studies (Erniwati et al., 2017; Santosa et al., 2017; Santosa and Purnamasari, 2017; Suharto et al., 2019) reveal that the number of vegetation species in mature oil palm plantations is not always lower than the biodiversity on land before being converted into oil palm plantation (Ecosystem Benchmark) or the biodiversity in forested areas (High Conservation Value) around the plantation.
The study results have shown that the number of species in the oil palm plantations is not always lower than the biodiversity in the Ecosystem Benchmark or HCV. In fact, the development of oil palm plantations in several research locations had increased the number of species, such as herpetofauna and butterflies, compared to the number of species in the Ecosystem Benchmark or HCV. In one ecosystem landscape of oil palm plantation, there are several types of habitats such as young, medium, old oil palm plants, bushes, and HCV areas that are still left forested. With the variety of landscapes, it becomes an area for the growth and development of flora and fauna in the oil palm plantation ecosystem. This has also shown that biodiversity in oil palm plantations is not always lower than in forested areas. GAPKI
--------
China consumes 8pc of world’s palm oil
Kota Kinabalu: China is the second top major country at RM20.01 billion in agri exports after the European Union at RM21.95 billion.
The Malaysian agricommodity sector has a strong global standing being first in hand glove, second in palm oil, fifth in cocoa and pepper, sixth in rubber and eighth in furniture.
“Agricommodity exports are significant and stable. For the year 2023, the agricommodity exports were valued at RM160.4 billion. In 2023, Malaysia accounted for 8.2 per cent of total global oils and fats production, being the fifth world largest producer of oils and fats, and was the second largest exporter of oils and fats.”
KPK Deputy Minister Chan Foong Hin said 2023, China consumed about 8 per cent of the world’s palm oil.
“China is shifting from importing only cooking oil to importing fats with functionalities and specialities.”
On biofuels as source of clean energy, Chan said it is important to expand the usage of palm oil downstream products, as well as a mechanism to manage crude palm oil stock and stabilise palm oil prices.
Biofuels can reduce the rate of greenhouse gas emissions in line with the aim to reduce greenhouse gas emission intensity of Gross Domestic Product by 45 per cent by 2030, relative to 2005 rates.
Chan said this would help to reduce the country’s dependence on fossil fuels as part of national energy security efforts, while scaling up the circular economy.
The Sabah State Government is committed to renewable energy initiatives that offer substantial investment opportunities while maintaining its commitment to safeguard the environment.
Chan said Sawit Kinabalu will start its red palm oil factory in Kunak soon and he has enabled the sale of its red palm oil in advance when he was in Shanghai earlier this year. Daily Express
--------
First RSPO IP-Certified Sustainable Palm Oil Shipment to China Led by Yili Group and Yihai Kerry
Asia's leading dairy brand Yili Group in partnership with China's largest palm oil trader Yihai Kerry spearheaded the first shipment of RSPO-Identity Preserved (IP) Certified sustainable palm oil to China, marking a milestone in advancing the country's sustainability agenda.
SHANGHAI, Nov. 25, 2024 /PRNewswire/ -- Representing a significant milestone for the Chinese market, the very first shipment of RSPO Certified Sustainable Palm Oil (CSPO) arrived at the Shanghai port today. This pioneering effort was spearheaded by Inner Mongolia Yili Industrial Group (Yili Group), Asia's leading dairy brand and one of the top five globally, in partnership with Yihai Kerry Arawana Holdings Co., Ltd (Yihai Kerry), the largest palm oil trader in China under the RSPO group membership of Wilmar.
A total of 750 tonnes of Certified Sustainable Palm Oil, certified under the Identity Preserved (IP) supply chain model, marks the initial batch of Yili's palm oil procurement for 2024-2025. The IP model ensures that certified palm oil is kept separate from conventional supplies throughout the supply chain, guaranteeing its traceability and sustainability. This delivery is particularly notable as it follows the August 2024 certification of Shanghai Kerry Food Industries (under Wilmar), making it the first site in China to obtain RSPO-IP certification.
Palm oil is a crucial ingredient in Yili's ice cream production, with the company having consumed 35,000 tonnes in 2023, of which 360 tonnes (1.03%) were RSPO-certified under the Mass Balance (MB) model. This latest development signifies Yili's drive to expand its use of RSPO-IP certified palm oil and underscores the group's commitment to a deforestation-free supply chain by 2030.
"We are very proud of this milestone achievement, not just for Yili Group, but also for the Chinese market as it represents a major step in realising China's commitment to sustainability," said the spokesperson from Yili Group. "By sourcing RSPO Certified sustainable palm oil, Yili is demonstrating our dedication to responsible sourcing and combating deforestation within our supply chains." PR Newswire
--------
Graphjet Technology Receives ISO Certifications for Sustainable Graphite and Graphene Production; Strengthens IP Position
Secures three ISO certifications for the eco-friendly manufacturing of graphite and graphene from biomass waste
Awarded patent further enhances competitive moat in the production of green graphite and graphene from palm kernel shells
KUALA LUMPUR, Malaysia, Nov. 25, 2024 (GLOBE NEWSWIRE) -- Graphjet Technology (“Graphjet” or “the Company”) (Nasdaq:GTI), a leading manufacturing company focusing on carbon-based materials, producing artificial graphite from biomass waste residues from the process of palm oil, today announced the Company has received ISO (International Organization for Standardization) certifications for the manufacturing of graphite and graphene from biomass waste from ARES International, a verification services provider.
The scope of the ISO certifications covered the manufacturing of biomass waste (palm kernel shell and composite material) to produce artificial graphite and graphene:
ISO 14001:2015
ISO 9001:2015
ISO 45001:2018
These ISO certifications showcase Graphjet Technology’s commitment to excellence in environmental, quality, and health & safety management, which is expected to drive operational, financial, and reputational gains. The certifications also demonstrate that the Company compliance is in line with global standards and are expected to enhance its reputation and improve its market access, customer satisfaction and loyalty, cost efficiency and sustainability, and operational efficiency.
“On the heels of opening the world’s first and largest green graphite facility, receiving these ISO certifications is a testament to the strength of our patented technology,” said Aiden Lee, CEO and Co-Founder of Graphjet. “These certifications provide third-party validation of our technology and demonstrate to our customers and other stakeholders the opportunities ahead for our green graphite production
process. As we continue to scale, we aim to meet the growing demand for this strategic material in semiconductors and electric vehicle batteries.”
Awarded Key Graphene Patent
In addition, Graphjet has been granted an important patent in Malaysia, further solidifying its industry-leading position in the production of green graphite and graphene. The patent, which builds on Graphjet’s existing IP protection for palm-based synthetic graphite production, covers the company’s unique and innovative process for producing palm-based graphene. It is the only patent of its kind in Malaysia. The Company is also pursuing patents in the United States to expand its leading global IP position. Globe Newswire
--------
Malaysia plans to produce sustainable jet fuel in 2027
KUALA LUMPUR, Nov 26 (Reuters) - Malaysia plans to start producing sustainable aviation fuel (SAF) in 2027, with an initial production capacity of one million metric tons per year, Plantation and Commodities Minister Johari Abdul Ghani said on Tuesday.
The production capacity will gradually increase based on factory output and feedstock availability, the minister told parliament.
Malaysia, the world's second-largest palm oil producer, is in a strategic position to become one of the world's leading SAF producers, he said.
Under the government's National Energy Transition Roadmap published in 2023, the government established an SAF blending mandate starting with 1%, aiming for a 47% blend by 2050.
Johari added that EcoCeres Renewable Fuels Sdn Bhd and Petronas, in partnership with Enilive and Euglena, are constructing a SAF refinery and production plant with capacity of 350,000 and 650,000 metric tons per year, respectively.
"With the development of these two plants, we will have the capacity to produce one million metric tons of SAF," he said, adding that any surplus could be exported to other non-producing SAF countries.
He said the government was also considering various tax incentives to attract investors to Malaysia and establish the country as an SAF development hub.
Johari added that SAF production would benefit small farmers and palm industry players as palm waste has a higher value than crude palm oil itself.
In the Asean region, Singapore has announced that it plans to require all flights departing the country to use SAF starting in 2026 and plans to raise it to 3-5% by 2030, subject to global developments and the wider availability and adoption of SAF.
In October, Indonesia flew its first commercial flight using palm oil-blended jet fuel. The flight operated by flag carrier Garuda Indonesia carried more than 100 passengers from the capital Jakarta to Surakarta city about 550 km (342 miles) away. Reuters
Avoiding Self-Inflicted Trade And Economic Wounds
Op-Ed by Paul Driessen
European debates and experiences offer guidance for President Trump and Congress
President-elect Trump says he will impose tariffs on foreign products, to raise revenue and in response to practices that give foreign manufacturers unfair advantages over American companies. Europe’s debates over similar issues offer relevant guidance, advisories and impetus.
As the European Union looks ahead to the next five-year term of its new European Commission and Parliament, officials talk about playing “its full part on the world stage in geopolitics.” Europe and the world heard it before, when Ursula von der Leyen promised a “geopolitical Commission” at the start of her first presidential term in Brussels in 2019. It didn’t happen then, and it’s not likely to happen now.
To be fair, it was a challenging five years. The unprecedented Covid pandemic kept the EU focused on domestic questions of healthcare, lockdowns, debt financing and student learning. Russia’s Ukraine invasion shortly after ensured that European policy priorities remained largely regional.
But possibly the most significant blow to her dream of a geopolitical Commission was entirely self-inflicted: the EU’s obsession with the utopian Green Deal.
Especially by raising energy and petrochemical prices to exorbitant levels, the Green Deal regulatory regime undercut EU competitiveness, particularly in agriculture and industry. European Commission international ambitions were thereby reduced to a domestic protectionist agenda designed to hobble potential competitors by erecting non-tariff barriers affecting – and infuriating – Europe’s trading partners, whether they compete on productivity or cost.
Citing the “climate crisis,” the EU demanded that the rest of the world adopt its own crippling regulations – or risk losing access to its markets. Soaring prices for “clean, renewable, sustainable” wind and solar energy (and duplicative backup power) destroyed jobs, made home heating and food extremely expensive for many families, and reduced living standards.
--------
Palm Plantations And Biodiversity: Go Along Or Go Against?
JAKARTA – A certain group of people consider the biodiversity of oil palm plantations as very low. But they could not provide convincing data to support their opinion. The following facts and descriptions will show the biodiversity reality of palm plantations.
The oil palm trees that are planted with minimum tillage, minimum weeding and with no ratoons, will grow into trees with relatively large and high trunks and have a canopy cover almost 100 percent upon maturity. Oil palm trees have a life span or production cycle of 25-30 years.
During land clearing or planting, some of the vegetations may migrate in short time to surrounding areas, but then they will return to the oil palm plantation areas. The characteristics of oil palm plantations which have a production cycle (life span) of 25-30 years also allow for the re-growth of biodiversity in the plantation areas (except for large mammals) along with the increasing age of the oil palm trees (PASPI Monitor, 2021a).
A variety of empirical studies (Erniwati et al., 2017; Santosa et al., 2017; Santosa and Purnamasari, 2017; Suharto et al., 2019) reveal that the number of vegetation species in mature oil palm plantations is not always lower than the biodiversity on land before being converted into oil palm plantation (Ecosystem Benchmark) or the biodiversity in forested areas (High Conservation Value) around the plantation.
The study results have shown that the number of species in the oil palm plantations is not always lower than the biodiversity in the Ecosystem Benchmark or HCV. In fact, the development of oil palm plantations in several research locations had increased the number of species, such as herpetofauna and butterflies, compared to the number of species in the Ecosystem Benchmark or HCV. In one ecosystem landscape of oil palm plantation, there are several types of habitats such as young, medium, old oil palm plants, bushes, and HCV areas that are still left forested. With the variety of landscapes, it becomes an area for the growth and development of flora and fauna in the oil palm plantation ecosystem. This has also shown that biodiversity in oil palm plantations is not always lower than in forested areas. GAPKI
--------
China consumes 8pc of world’s palm oil
Kota Kinabalu: China is the second top major country at RM20.01 billion in agri exports after the European Union at RM21.95 billion.
The Malaysian agricommodity sector has a strong global standing being first in hand glove, second in palm oil, fifth in cocoa and pepper, sixth in rubber and eighth in furniture.
“Agricommodity exports are significant and stable. For the year 2023, the agricommodity exports were valued at RM160.4 billion. In 2023, Malaysia accounted for 8.2 per cent of total global oils and fats production, being the fifth world largest producer of oils and fats, and was the second largest exporter of oils and fats.”
KPK Deputy Minister Chan Foong Hin said 2023, China consumed about 8 per cent of the world’s palm oil.
“China is shifting from importing only cooking oil to importing fats with functionalities and specialities.”
On biofuels as source of clean energy, Chan said it is important to expand the usage of palm oil downstream products, as well as a mechanism to manage crude palm oil stock and stabilise palm oil prices.
Biofuels can reduce the rate of greenhouse gas emissions in line with the aim to reduce greenhouse gas emission intensity of Gross Domestic Product by 45 per cent by 2030, relative to 2005 rates.
Chan said this would help to reduce the country’s dependence on fossil fuels as part of national energy security efforts, while scaling up the circular economy.
The Sabah State Government is committed to renewable energy initiatives that offer substantial investment opportunities while maintaining its commitment to safeguard the environment.
Chan said Sawit Kinabalu will start its red palm oil factory in Kunak soon and he has enabled the sale of its red palm oil in advance when he was in Shanghai earlier this year. Daily Express
--------
First RSPO IP-Certified Sustainable Palm Oil Shipment to China Led by Yili Group and Yihai Kerry
Asia's leading dairy brand Yili Group in partnership with China's largest palm oil trader Yihai Kerry spearheaded the first shipment of RSPO-Identity Preserved (IP) Certified sustainable palm oil to China, marking a milestone in advancing the country's sustainability agenda.
SHANGHAI, Nov. 25, 2024 /PRNewswire/ -- Representing a significant milestone for the Chinese market, the very first shipment of RSPO Certified Sustainable Palm Oil (CSPO) arrived at the Shanghai port today. This pioneering effort was spearheaded by Inner Mongolia Yili Industrial Group (Yili Group), Asia's leading dairy brand and one of the top five globally, in partnership with Yihai Kerry Arawana Holdings Co., Ltd (Yihai Kerry), the largest palm oil trader in China under the RSPO group membership of Wilmar.
A total of 750 tonnes of Certified Sustainable Palm Oil, certified under the Identity Preserved (IP) supply chain model, marks the initial batch of Yili's palm oil procurement for 2024-2025. The IP model ensures that certified palm oil is kept separate from conventional supplies throughout the supply chain, guaranteeing its traceability and sustainability. This delivery is particularly notable as it follows the August 2024 certification of Shanghai Kerry Food Industries (under Wilmar), making it the first site in China to obtain RSPO-IP certification.
Palm oil is a crucial ingredient in Yili's ice cream production, with the company having consumed 35,000 tonnes in 2023, of which 360 tonnes (1.03%) were RSPO-certified under the Mass Balance (MB) model. This latest development signifies Yili's drive to expand its use of RSPO-IP certified palm oil and underscores the group's commitment to a deforestation-free supply chain by 2030.
"We are very proud of this milestone achievement, not just for Yili Group, but also for the Chinese market as it represents a major step in realising China's commitment to sustainability," said the spokesperson from Yili Group. "By sourcing RSPO Certified sustainable palm oil, Yili is demonstrating our dedication to responsible sourcing and combating deforestation within our supply chains." PR Newswire
--------
Graphjet Technology Receives ISO Certifications for Sustainable Graphite and Graphene Production; Strengthens IP Position
Secures three ISO certifications for the eco-friendly manufacturing of graphite and graphene from biomass waste
Awarded patent further enhances competitive moat in the production of green graphite and graphene from palm kernel shells
KUALA LUMPUR, Malaysia, Nov. 25, 2024 (GLOBE NEWSWIRE) -- Graphjet Technology (“Graphjet” or “the Company”) (Nasdaq:GTI), a leading manufacturing company focusing on carbon-based materials, producing artificial graphite from biomass waste residues from the process of palm oil, today announced the Company has received ISO (International Organization for Standardization) certifications for the manufacturing of graphite and graphene from biomass waste from ARES International, a verification services provider.
The scope of the ISO certifications covered the manufacturing of biomass waste (palm kernel shell and composite material) to produce artificial graphite and graphene:
ISO 14001:2015
ISO 9001:2015
ISO 45001:2018
These ISO certifications showcase Graphjet Technology’s commitment to excellence in environmental, quality, and health & safety management, which is expected to drive operational, financial, and reputational gains. The certifications also demonstrate that the Company compliance is in line with global standards and are expected to enhance its reputation and improve its market access, customer satisfaction and loyalty, cost efficiency and sustainability, and operational efficiency.
“On the heels of opening the world’s first and largest green graphite facility, receiving these ISO certifications is a testament to the strength of our patented technology,” said Aiden Lee, CEO and Co-Founder of Graphjet. “These certifications provide third-party validation of our technology and demonstrate to our customers and other stakeholders the opportunities ahead for our green graphite production
process. As we continue to scale, we aim to meet the growing demand for this strategic material in semiconductors and electric vehicle batteries.”
Awarded Key Graphene Patent
In addition, Graphjet has been granted an important patent in Malaysia, further solidifying its industry-leading position in the production of green graphite and graphene. The patent, which builds on Graphjet’s existing IP protection for palm-based synthetic graphite production, covers the company’s unique and innovative process for producing palm-based graphene. It is the only patent of its kind in Malaysia. The Company is also pursuing patents in the United States to expand its leading global IP position. Globe Newswire
--------
Malaysia plans to produce sustainable jet fuel in 2027
KUALA LUMPUR, Nov 26 (Reuters) - Malaysia plans to start producing sustainable aviation fuel (SAF) in 2027, with an initial production capacity of one million metric tons per year, Plantation and Commodities Minister Johari Abdul Ghani said on Tuesday.
The production capacity will gradually increase based on factory output and feedstock availability, the minister told parliament.
Malaysia, the world's second-largest palm oil producer, is in a strategic position to become one of the world's leading SAF producers, he said.
Under the government's National Energy Transition Roadmap published in 2023, the government established an SAF blending mandate starting with 1%, aiming for a 47% blend by 2050.
Johari added that EcoCeres Renewable Fuels Sdn Bhd and Petronas, in partnership with Enilive and Euglena, are constructing a SAF refinery and production plant with capacity of 350,000 and 650,000 metric tons per year, respectively.
"With the development of these two plants, we will have the capacity to produce one million metric tons of SAF," he said, adding that any surplus could be exported to other non-producing SAF countries.
He said the government was also considering various tax incentives to attract investors to Malaysia and establish the country as an SAF development hub.
Johari added that SAF production would benefit small farmers and palm industry players as palm waste has a higher value than crude palm oil itself.
In the Asean region, Singapore has announced that it plans to require all flights departing the country to use SAF starting in 2026 and plans to raise it to 3-5% by 2030, subject to global developments and the wider availability and adoption of SAF.
In October, Indonesia flew its first commercial flight using palm oil-blended jet fuel. The flight operated by flag carrier Garuda Indonesia carried more than 100 passengers from the capital Jakarta to Surakarta city about 550 km (342 miles) away. Reuters
November 25, 2024
Indonesian palm oil victim of Global Interests
JAKARTA – Deputy Minister of Environment Diaz Hendropriyono said many foreign groups do not want to see Indonesian palm oil industry progressing and being strong at the global market.
“There are certain groups of people, especially those in Europe, who do not want to see our palm oil industries growing bigger and stronger. They will keep trying to block our palm oil products with whatever means they can,” Diaz said at the office building of Ombudsman in Jakarta on Monday (18/11/2024).
Diaz said that there are also a number of national challenges facing the Indonesian palm oil industries. “There are overlapping regulations on palm oil. These legal problems should be resolved and oriented to the fulfillment of public interest. Government’s policies on palm oil should be designed to support the interest of general public,” he said.
According to Diaz, the same challenges also stand in the way of President Prabowo Subianto in initiating the program of self-sufficiency in foods and energy, which is targeted to be realized in 2028.
Diaz said that now is the right time to realize self-sufficiency in foods and energy, including by growing Indonesian palm oil industries. “We have our President who are very supportive and really eager to make Indonesia more independent in foods and energy,” he said.
Previously, the Ombudsman reported there had been maladministration in managing the palm oil industries in Indonesia, also the problems of overlapping regulations, and the fact that Indonesian palm oil industries are not yet well integrated. “Such condition is potential to incur an economic loss up to Rp279.1 trillion per year,” he said. (*) GAPKI
--------
Palm oil’s contribution to global health and well-being
Today’s consumers are increasingly aware of how the choices they make may have an impact on the world they live in. Concerned about their health as well as the potential environmental and social consequences of their purchases, these advocates of change actively seek out food products that align with their values. This growing awareness has led to rising demand for sustainably produced palm oil.
Aware of the nuances of the different vegetable oils, their cultivation and their health benefits, conscious consumers are choosing ethically produced palm oil to demonstrate their support for businesses that are committed to sustainability, transparency and accountability. This, in turn, supports the palm oil industry in its journey to ensure the preservation of the environment, reduction of carbon footprint and promotion of ethical labour practices and well-being of local communities, while also providing a stable and nutritious food source that is cost-effective.
Role of palm oil in a balanced diet
The most common misconception about palm oil is that it is unhealthy. On the contrary, the versatility and nutritional value of this high-yield vegetable oil — found in almost everything from salad dressing to peanut butter — ensure consumers all over the world have access to healthy dietary fats.
Perceived by some as a purely saturated fat, this naturally trans-fat-free vegetable oil actually has a balanced fatty acid ratio comprising 50% saturated fats, consisting of palmitic acid and stearic acid, and 50% unsaturated fats, which are made up of oleic acid and linoleic acid, or Omega-9 and Omega-6 fatty acids, as they are commonly known. In fact, some studies suggest that when incorporated into a balanced diet, palm oil may help improve heart health by raising good cholesterol (HDL).
Palm oil also has a high content of vitamin E and carotenoids, which act as powerful antioxidants that protect cells by neutralising free radicals and minimising damage, promoting overall health. Vitamin E, specifically tocotrienols, have the potential to help with cardiovascular health by lowering plasma cholesterol. Tocotrienols can also enhance the immune system and potentially help reduce the risk of neurodegenerative diseases. Red palm oil, extracted and refined from crude palm oil, also boasts 15 times more carotenoids than carrots and 50 times more than tomatoes, making it a nutritional powerhouse. These carotenoids in palm oil, which include alpha- and beta-carotene, are converted into vitamin A, the deficiency of which can contribute towards visual impairment, stunted growth in children, infertility and impaired immune system. The EdgeMY
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Plant-sterol fortified palm oil reduces total cholesterol, LDL – BASF-funded study
By Tingmin Koe
Eating meals cooked with plant sterol fortified palm oil has shown to significantly reduce total cholesterol and low-density lipoprotein (LDL) cholesterol in people with mild to moderately high cholesterol levels, says an eight-week clinical trial funded by BASF.
Consuming palm sterols has also shown to improve blood lipid ratios.
However, it had also led to an increase in c-reactive protein (CRP) levels which typically increase when the body is experiencing inflammation.
Findings of the trial were published in Nutrients.
The double-blinded randomised controlled trial was conducted in Bogor District, West Java, Indonesia.
A total of 100 individuals aged 25 to 60 with mild to moderate hypercholesterolemia and need not undergo lipid-lowering drug therapy took part in the trial. More Nutra Ingredients
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Is your cooking oil choice contributing to chronic inflammation?
TOI Lifestyle Desk
From the once-coveted hydrogenated oils of the 1970s to the current debate on seed oils, the article explores the evolving landscape of cooking oils and their impact on health. It highlights the link between inflammation and chronic diseases, attributing it partly to the high omega-6 fatty acid content in certain oils.
It is interesting to see how the popularity of cooking oils has evolved over the years. It is hard to believe that in the 1970s, when vegetable oils were first hydrogenated, how coveted they were.
Today, we know that trans fats produced by hydrogenation are harmful for our health, hence we actively seek to avoid them. Yet what were once considered culinary villains, like ghee and coconut, have made a comeback and their virtues reconsidered.
Right now, avocado, grapeseed and moringa oil are in vogue for some consumer groups, but their high cost acts as a deterrent for most shoppers. Hence, picking the right oil for cooking seems to be a dynamic process.
While we consider our choices, concerns around cooking oils, it seems, are here to stay. Excessive consumption of fats and oils and their links to obesity, diabetes and cardiovascular disease is very much a problem that we are all grappling with. As our understanding of chronic diseases grows, there is evidence to show that inflammation lies at the core of many of these ailments. Naturally, this directs our attention to cooking oils. In reality, oil is an omnipresent ingredient in our everyday life through all forms of food preparation. Times of India
Indonesian palm oil victim of Global Interests
JAKARTA – Deputy Minister of Environment Diaz Hendropriyono said many foreign groups do not want to see Indonesian palm oil industry progressing and being strong at the global market.
“There are certain groups of people, especially those in Europe, who do not want to see our palm oil industries growing bigger and stronger. They will keep trying to block our palm oil products with whatever means they can,” Diaz said at the office building of Ombudsman in Jakarta on Monday (18/11/2024).
Diaz said that there are also a number of national challenges facing the Indonesian palm oil industries. “There are overlapping regulations on palm oil. These legal problems should be resolved and oriented to the fulfillment of public interest. Government’s policies on palm oil should be designed to support the interest of general public,” he said.
According to Diaz, the same challenges also stand in the way of President Prabowo Subianto in initiating the program of self-sufficiency in foods and energy, which is targeted to be realized in 2028.
Diaz said that now is the right time to realize self-sufficiency in foods and energy, including by growing Indonesian palm oil industries. “We have our President who are very supportive and really eager to make Indonesia more independent in foods and energy,” he said.
Previously, the Ombudsman reported there had been maladministration in managing the palm oil industries in Indonesia, also the problems of overlapping regulations, and the fact that Indonesian palm oil industries are not yet well integrated. “Such condition is potential to incur an economic loss up to Rp279.1 trillion per year,” he said. (*) GAPKI
--------
Palm oil’s contribution to global health and well-being
Today’s consumers are increasingly aware of how the choices they make may have an impact on the world they live in. Concerned about their health as well as the potential environmental and social consequences of their purchases, these advocates of change actively seek out food products that align with their values. This growing awareness has led to rising demand for sustainably produced palm oil.
Aware of the nuances of the different vegetable oils, their cultivation and their health benefits, conscious consumers are choosing ethically produced palm oil to demonstrate their support for businesses that are committed to sustainability, transparency and accountability. This, in turn, supports the palm oil industry in its journey to ensure the preservation of the environment, reduction of carbon footprint and promotion of ethical labour practices and well-being of local communities, while also providing a stable and nutritious food source that is cost-effective.
Role of palm oil in a balanced diet
The most common misconception about palm oil is that it is unhealthy. On the contrary, the versatility and nutritional value of this high-yield vegetable oil — found in almost everything from salad dressing to peanut butter — ensure consumers all over the world have access to healthy dietary fats.
Perceived by some as a purely saturated fat, this naturally trans-fat-free vegetable oil actually has a balanced fatty acid ratio comprising 50% saturated fats, consisting of palmitic acid and stearic acid, and 50% unsaturated fats, which are made up of oleic acid and linoleic acid, or Omega-9 and Omega-6 fatty acids, as they are commonly known. In fact, some studies suggest that when incorporated into a balanced diet, palm oil may help improve heart health by raising good cholesterol (HDL).
Palm oil also has a high content of vitamin E and carotenoids, which act as powerful antioxidants that protect cells by neutralising free radicals and minimising damage, promoting overall health. Vitamin E, specifically tocotrienols, have the potential to help with cardiovascular health by lowering plasma cholesterol. Tocotrienols can also enhance the immune system and potentially help reduce the risk of neurodegenerative diseases. Red palm oil, extracted and refined from crude palm oil, also boasts 15 times more carotenoids than carrots and 50 times more than tomatoes, making it a nutritional powerhouse. These carotenoids in palm oil, which include alpha- and beta-carotene, are converted into vitamin A, the deficiency of which can contribute towards visual impairment, stunted growth in children, infertility and impaired immune system. The EdgeMY
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Plant-sterol fortified palm oil reduces total cholesterol, LDL – BASF-funded study
By Tingmin Koe
Eating meals cooked with plant sterol fortified palm oil has shown to significantly reduce total cholesterol and low-density lipoprotein (LDL) cholesterol in people with mild to moderately high cholesterol levels, says an eight-week clinical trial funded by BASF.
Consuming palm sterols has also shown to improve blood lipid ratios.
However, it had also led to an increase in c-reactive protein (CRP) levels which typically increase when the body is experiencing inflammation.
Findings of the trial were published in Nutrients.
The double-blinded randomised controlled trial was conducted in Bogor District, West Java, Indonesia.
A total of 100 individuals aged 25 to 60 with mild to moderate hypercholesterolemia and need not undergo lipid-lowering drug therapy took part in the trial. More Nutra Ingredients
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Is your cooking oil choice contributing to chronic inflammation?
TOI Lifestyle Desk
From the once-coveted hydrogenated oils of the 1970s to the current debate on seed oils, the article explores the evolving landscape of cooking oils and their impact on health. It highlights the link between inflammation and chronic diseases, attributing it partly to the high omega-6 fatty acid content in certain oils.
It is interesting to see how the popularity of cooking oils has evolved over the years. It is hard to believe that in the 1970s, when vegetable oils were first hydrogenated, how coveted they were.
Today, we know that trans fats produced by hydrogenation are harmful for our health, hence we actively seek to avoid them. Yet what were once considered culinary villains, like ghee and coconut, have made a comeback and their virtues reconsidered.
Right now, avocado, grapeseed and moringa oil are in vogue for some consumer groups, but their high cost acts as a deterrent for most shoppers. Hence, picking the right oil for cooking seems to be a dynamic process.
While we consider our choices, concerns around cooking oils, it seems, are here to stay. Excessive consumption of fats and oils and their links to obesity, diabetes and cardiovascular disease is very much a problem that we are all grappling with. As our understanding of chronic diseases grows, there is evidence to show that inflammation lies at the core of many of these ailments. Naturally, this directs our attention to cooking oils. In reality, oil is an omnipresent ingredient in our everyday life through all forms of food preparation. Times of India
November 24, 2024
Indonesian goverment preparing regulation on methane utilization from palm oil waste
Pelalawan, Riau (ANTARA) - The Environment Ministry is currently preparing regulations related to the utilization of methane from palm oil industry waste, including government incentives and disincentives in its implementation, to support the carbon trading climate in the country.
"We hope that in the not too distant future, a ministerial regulation or temporary decision of the Head of the Environmental Control Agency will regulate the limited management of POME (Palm Oil Mill Effluent) into methane capture," Environment Minister Hanif Faisol said during a working visit to Pelalawan Regency, Riau, Saturday (Nov 23).
Referring to the good practices carried out by the palm oil industry which utilizes methane from palm oil waste for energy, he mentioned the major impact of this waste reduction efforts.
According to the Deputy for Pollution Control and Environmental Damage data, palm oil industry that spread in 18 million hectares of land in Indonesia can produce 36 million tons of carbon dioxide equivalent.
Meanwhile, he acknowledged that there are differences in the ability of palm oil industry players to utilize methane from palm oil industry waste. For that reason, each layer of utilization will be prepared in the regulation to support its acceleration.
The Environment Ministry will also study good practices from other companies that have utilized methane, to get a complete picture in preparing a roadmap for methane utilization.
"We are currently compiling this together, hopefully we will be able to quickly compile the roadmap and then monitor its implementation," Faisol noted.
On that occasion, he also stated that the Environment Ministry as the guardian of climate change issues, will strive to build a carbon trading climate including the utilization of methane. Antara News
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Dayak Oil Palm Planters Association advocates for oil palm smallholders amid EUDR challenges
KUCHING: The Dayak Oil Palm Planters Association (DOPPA) continues to champion the interests of smallholders facing challenges at both local and international levels.
Minister of Food Industry, Commodities, and Regional Development (M-FICORD) Datuk Seri Dr Stephen Rundi Utom said smallholders in the state, not only among the Dayak community but also other groups cultivating oil palm, have faced numerous challenges, including the demand for compliance with the European Union Deforestation Regulation (EUDR) for palm oil exports to European markets.
“If compliance with the EUDR is not managed properly and diplomatically, it risks excluding independent smallholders from the global palm oil supply chain.
“In this regard, DOPPA has voiced smallholders’ concerns domestically and internationally through engagement sessions and meetings with key industry players.
“It has also been actively involved in discussions on the direction and policies at both state and federal levels, particularly in engagement sessions with my ministry,” he said.
He said this in his text speech read by M-Ficord deputy minister Datuk Dr Abdul Rahman Ismail during the DOPPA’s anniversary dinner held at Dayak Bidayuh National Association (DBNA) here last night (Nov 23).
Rundi also urged DOPPA to propose working papers to the ministry to leverage agricultural incentives provided by the state government, including upgraded farm roads and support for food and crop integration.
He said the state government’s agricultural incentives, aligned with its mission to improve the socio-economic status of rural areas, are vital to supporting smallholders.
According to Rundi, smallholders cultivate over 266,000 hectares of oil palm, involving 48,913 individuals as of October this year.
“The palm oil industry has proven to provide a stable income for smallholders, especially in rural and remote areas of Sarawak.
“Therefore, I hope that DOPPA can propose working papers to the ministry to obtain these incentives, as well as other benefits such as food and crop integration,” he added. New Sarawak Tribune
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China remains a vital partner for Sabah
Kota Kinabalu: China remains a vital business partner for Sabah with exports amounting to RM7.6 billion or 19.5 per cent of the state’s total trade in 2023, said Chief Minister Datuk Seri Hajiji Noor.
He said key exports included palm oil, timber, seafood and rubber, while imports comprised machinery, electronics, and various manufactured goods.
“Chinese investments in sectors like agriculture, aquaculture and infrastructure continue to grow. We see vast potential in green technology and high-tech agriculture, smart cities, manufacturing, renewable energy, e-commerce and education,” he said at the Malaysia (Sabah) - Business Summit welcoming dinner at the Sabah International Convention Centre, here.
His speech was read by Deputy Chief Minister II and Local Government and Housing Minister Datuk Seri Dr Joachim Gunsalam.
“We are pleased that Sabah has remained a sought-after destination for China visitors, both for leisure and for business.
“Moving forward, we are also keen for Chinese investors to explore new opportunities such as in Sabah’s Blue Economy,” he said.
He reiterated that the Blue Economy offers immense investment opportunities in fisheries and aquaculture, logistics, tourism, renewable energy, mineral resources, biotechnology and pharmaceuticals, blue carbon, waste management and pollution control, research and development, and marine infrastructure, among others.
“Similarly, the energy sector presents significant opportunities and while oil and gas remain important revenue streams for Sabah, we welcome investors to also explore solar and storage technologies, hydro, geothermal, and carbon market opportunities,” he said.
The Chief Minister said tourism remained a critical driver of Sabah’s economy and has served as a vibrant link, particularly with China.
“Sabah recorded 2.42 million domestic and international arrivals from January to September this year. Of this, 991,629 were international arrivals. China topped the list at 383,827.
“This makes China the largest source of foreign visitors to Sabah. We will continue to enhance tourism infrastructure, focusing on high-value and sustainable tourism that highlights Sabah’s natural and cultural richness,” he said. Daily Express
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Are seed oils toxic? It's complicated — here's what you need to know about the war over dietary fats
Hilary Brueck
In recent years, a war has been brewing over the fats we eat. Specifically, it's a fight over "seed oils." Are they as toxic as some health influencers believe?
Robert F. Kennedy Jr, President-elect Trump's pick for Health and Human Services secretary, is a leading figure in the fight. He has a line of t-shirts, bumper stickers, and red hats dedicated to "make frying oil tallow again," arguing for places like McDonalds to go back to using beef fat.
Nutrition experts say the discourse around so-called seed oils stokes unnecessary fear, obscuring the truth about what is already well-established about how to eat to promote human health and longevity.
Professor Richard Bazinet, who studies how fat fuels our brains at the University of Toronto, says online discourse about seed oils being the "root of all evil" has exploded since 2020.
"People are coming out and saying, 'Hey, the government's lying to you,'" he told Business Insider. "Saturated fats are good for you. Seed oils are actually what's killing you, causing cancer."
Do seed oils cause inflammation?
Opponents of seed oils say that they are toxic and often recommend butter instead, which is rich in saturated fatty acids with only small amounts of omega-6. Business Insider
Indonesian goverment preparing regulation on methane utilization from palm oil waste
Pelalawan, Riau (ANTARA) - The Environment Ministry is currently preparing regulations related to the utilization of methane from palm oil industry waste, including government incentives and disincentives in its implementation, to support the carbon trading climate in the country.
"We hope that in the not too distant future, a ministerial regulation or temporary decision of the Head of the Environmental Control Agency will regulate the limited management of POME (Palm Oil Mill Effluent) into methane capture," Environment Minister Hanif Faisol said during a working visit to Pelalawan Regency, Riau, Saturday (Nov 23).
Referring to the good practices carried out by the palm oil industry which utilizes methane from palm oil waste for energy, he mentioned the major impact of this waste reduction efforts.
According to the Deputy for Pollution Control and Environmental Damage data, palm oil industry that spread in 18 million hectares of land in Indonesia can produce 36 million tons of carbon dioxide equivalent.
Meanwhile, he acknowledged that there are differences in the ability of palm oil industry players to utilize methane from palm oil industry waste. For that reason, each layer of utilization will be prepared in the regulation to support its acceleration.
The Environment Ministry will also study good practices from other companies that have utilized methane, to get a complete picture in preparing a roadmap for methane utilization.
"We are currently compiling this together, hopefully we will be able to quickly compile the roadmap and then monitor its implementation," Faisol noted.
On that occasion, he also stated that the Environment Ministry as the guardian of climate change issues, will strive to build a carbon trading climate including the utilization of methane. Antara News
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Dayak Oil Palm Planters Association advocates for oil palm smallholders amid EUDR challenges
KUCHING: The Dayak Oil Palm Planters Association (DOPPA) continues to champion the interests of smallholders facing challenges at both local and international levels.
Minister of Food Industry, Commodities, and Regional Development (M-FICORD) Datuk Seri Dr Stephen Rundi Utom said smallholders in the state, not only among the Dayak community but also other groups cultivating oil palm, have faced numerous challenges, including the demand for compliance with the European Union Deforestation Regulation (EUDR) for palm oil exports to European markets.
“If compliance with the EUDR is not managed properly and diplomatically, it risks excluding independent smallholders from the global palm oil supply chain.
“In this regard, DOPPA has voiced smallholders’ concerns domestically and internationally through engagement sessions and meetings with key industry players.
“It has also been actively involved in discussions on the direction and policies at both state and federal levels, particularly in engagement sessions with my ministry,” he said.
He said this in his text speech read by M-Ficord deputy minister Datuk Dr Abdul Rahman Ismail during the DOPPA’s anniversary dinner held at Dayak Bidayuh National Association (DBNA) here last night (Nov 23).
Rundi also urged DOPPA to propose working papers to the ministry to leverage agricultural incentives provided by the state government, including upgraded farm roads and support for food and crop integration.
He said the state government’s agricultural incentives, aligned with its mission to improve the socio-economic status of rural areas, are vital to supporting smallholders.
According to Rundi, smallholders cultivate over 266,000 hectares of oil palm, involving 48,913 individuals as of October this year.
“The palm oil industry has proven to provide a stable income for smallholders, especially in rural and remote areas of Sarawak.
“Therefore, I hope that DOPPA can propose working papers to the ministry to obtain these incentives, as well as other benefits such as food and crop integration,” he added. New Sarawak Tribune
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China remains a vital partner for Sabah
Kota Kinabalu: China remains a vital business partner for Sabah with exports amounting to RM7.6 billion or 19.5 per cent of the state’s total trade in 2023, said Chief Minister Datuk Seri Hajiji Noor.
He said key exports included palm oil, timber, seafood and rubber, while imports comprised machinery, electronics, and various manufactured goods.
“Chinese investments in sectors like agriculture, aquaculture and infrastructure continue to grow. We see vast potential in green technology and high-tech agriculture, smart cities, manufacturing, renewable energy, e-commerce and education,” he said at the Malaysia (Sabah) - Business Summit welcoming dinner at the Sabah International Convention Centre, here.
His speech was read by Deputy Chief Minister II and Local Government and Housing Minister Datuk Seri Dr Joachim Gunsalam.
“We are pleased that Sabah has remained a sought-after destination for China visitors, both for leisure and for business.
“Moving forward, we are also keen for Chinese investors to explore new opportunities such as in Sabah’s Blue Economy,” he said.
He reiterated that the Blue Economy offers immense investment opportunities in fisheries and aquaculture, logistics, tourism, renewable energy, mineral resources, biotechnology and pharmaceuticals, blue carbon, waste management and pollution control, research and development, and marine infrastructure, among others.
“Similarly, the energy sector presents significant opportunities and while oil and gas remain important revenue streams for Sabah, we welcome investors to also explore solar and storage technologies, hydro, geothermal, and carbon market opportunities,” he said.
The Chief Minister said tourism remained a critical driver of Sabah’s economy and has served as a vibrant link, particularly with China.
“Sabah recorded 2.42 million domestic and international arrivals from January to September this year. Of this, 991,629 were international arrivals. China topped the list at 383,827.
“This makes China the largest source of foreign visitors to Sabah. We will continue to enhance tourism infrastructure, focusing on high-value and sustainable tourism that highlights Sabah’s natural and cultural richness,” he said. Daily Express
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Are seed oils toxic? It's complicated — here's what you need to know about the war over dietary fats
Hilary Brueck
In recent years, a war has been brewing over the fats we eat. Specifically, it's a fight over "seed oils." Are they as toxic as some health influencers believe?
Robert F. Kennedy Jr, President-elect Trump's pick for Health and Human Services secretary, is a leading figure in the fight. He has a line of t-shirts, bumper stickers, and red hats dedicated to "make frying oil tallow again," arguing for places like McDonalds to go back to using beef fat.
Nutrition experts say the discourse around so-called seed oils stokes unnecessary fear, obscuring the truth about what is already well-established about how to eat to promote human health and longevity.
Professor Richard Bazinet, who studies how fat fuels our brains at the University of Toronto, says online discourse about seed oils being the "root of all evil" has exploded since 2020.
"People are coming out and saying, 'Hey, the government's lying to you,'" he told Business Insider. "Saturated fats are good for you. Seed oils are actually what's killing you, causing cancer."
Do seed oils cause inflammation?
Opponents of seed oils say that they are toxic and often recommend butter instead, which is rich in saturated fatty acids with only small amounts of omega-6. Business Insider
November 23, 2024
Indonesia-Palm Oil Law Regulations Recommended For Simplification
JAKARTA - Head of the Center for Palm Oil Studies at the Bogor Agricultural Institute (IPB) Prof. Budi Mulyanto recommended simplification of oil palm legislation or a kind of palm oil omnibus that regulates from upstream to downstream.
Budi conveyed that the regulation is expected to fix governance so that the use and utilization of oil palm potential is maximized.
"Given that oil palm is special for the Indonesian people, there are many benefits and many businesses, then one body is to manage oil palm A-Z affairs, so that people get one-door services," Budi said quoting Antara.
According to Budi, this agency must also manage one periodically updated palm data for the improvement and development of the palm oil industry (continuous improvement).
"Hopefully it will be started by the Government of President Prabowo, the palm oil industry will develop more steadily and orderly, so that the value of business (EODB) in Indonesia will increase, and investors will believe in investing in the palm oil sector," he said.
Budi also appreciated the results of a systemic study by the Indonesian Ombudsman regarding the potential for maladministration in the management of the palm oil industry in Indonesia.
The results of these findings are expected to be followed up with an affirmative policy for the settling down of palm oil problems.
It is known, based on the findings of the Indonesian Ombudsman, the unclear status of oil palm plantation land due to overlap with forest areas has disrupted the sustainability of oil palm plantations.
It was found that the overlay slice area overlapping oil palm plantations with forest areas was 3,222,350 hectares, with legal subjects amounting to 3,235.
Conflict in land ownership status between oil palm plantations and forest areas results in legal uncertainty for farmers and companies. Voice of Indonesia
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HSBC, Cathay Pacific and EcoCeres partner for major sustainable aviation fuel initiative in Hong Kong
Tri-party pilot will support Hong Kong’s use of innovative decarbonisation technologies and Hong Kong’s aspiration as a regional SAF hub
HSBC Hong Kong, Cathay Pacific and EcoCeres are launching a significant initiative to support the use of sustainable aviation fuel (SAF) in Hong Kong. By bringing together Hong Kong’s largest bank, its home airline, and a leading Hong Kong-based SAF producer, the collaboration aims to support a key innovation for the long-term decarbonisation of air travel and foster a local SAF ecosystem for Hong Kong.
HSBC Hong Kong is entering into a one-time purchase agreement for around 3,400 metric tonnes of SAF produced by EcoCeres, which will be used in Cathay Pacific flights departing from the Hong Kong International Airport.
EcoCeres’ SAF is derived from 100% waste-based biomass feedstock, which can deliver an estimated reduction of up to 90% in greenhouse gas emissions compared to conventional jet fuel, certified by International Sustainability and Carbon Certification (ISCC). This batch of SAF is made from fully traceable feedstock of used cooking oil. The reduction in lifecycle carbon emissions is estimated to be 11,800 metric tonnes, compared with use of the same volume of conventional jet fuel. It is equivalent to the carbon emissions arising from around 10,000 roundtrip Economy class seats between Hong Kong and London on Cathay Pacific flights. Cathay Pacific
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EU ready to react to any renewed US trade tensions under Trump, ambassador says
WASHINGTON, Nov 22 (Reuters) - The European Union is prepared to react to any renewed trade tensions with the United States that may emerge under President-elect Donald Trump's second administration, the EU's ambassador to the U.S., Jovita Neliupšienė, said on Friday.
Neliupšienė, speaking to reporters during a press briefing, declined to discuss possible retaliatory measures that Brussels could impose to respond to Trump's vow to impose tariffs of 10%-20% on all U.S. imports.
She said the U.S. is the most important trade partner for the EU, with $1.7 trillion in two-way goods and services trade, and $5 trillion in two-way investment. She added that there are opportunities for the two sides to cooperate in more areas, including energy and other sectors.
"But of course, you know, as in every family, there are sometimes tensions," she said. "If there are some new frictions for the trade, the European Union will be ready, actually, to react to that." Reuters
Indonesia-Palm Oil Law Regulations Recommended For Simplification
JAKARTA - Head of the Center for Palm Oil Studies at the Bogor Agricultural Institute (IPB) Prof. Budi Mulyanto recommended simplification of oil palm legislation or a kind of palm oil omnibus that regulates from upstream to downstream.
Budi conveyed that the regulation is expected to fix governance so that the use and utilization of oil palm potential is maximized.
"Given that oil palm is special for the Indonesian people, there are many benefits and many businesses, then one body is to manage oil palm A-Z affairs, so that people get one-door services," Budi said quoting Antara.
According to Budi, this agency must also manage one periodically updated palm data for the improvement and development of the palm oil industry (continuous improvement).
"Hopefully it will be started by the Government of President Prabowo, the palm oil industry will develop more steadily and orderly, so that the value of business (EODB) in Indonesia will increase, and investors will believe in investing in the palm oil sector," he said.
Budi also appreciated the results of a systemic study by the Indonesian Ombudsman regarding the potential for maladministration in the management of the palm oil industry in Indonesia.
The results of these findings are expected to be followed up with an affirmative policy for the settling down of palm oil problems.
It is known, based on the findings of the Indonesian Ombudsman, the unclear status of oil palm plantation land due to overlap with forest areas has disrupted the sustainability of oil palm plantations.
It was found that the overlay slice area overlapping oil palm plantations with forest areas was 3,222,350 hectares, with legal subjects amounting to 3,235.
Conflict in land ownership status between oil palm plantations and forest areas results in legal uncertainty for farmers and companies. Voice of Indonesia
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HSBC, Cathay Pacific and EcoCeres partner for major sustainable aviation fuel initiative in Hong Kong
Tri-party pilot will support Hong Kong’s use of innovative decarbonisation technologies and Hong Kong’s aspiration as a regional SAF hub
HSBC Hong Kong, Cathay Pacific and EcoCeres are launching a significant initiative to support the use of sustainable aviation fuel (SAF) in Hong Kong. By bringing together Hong Kong’s largest bank, its home airline, and a leading Hong Kong-based SAF producer, the collaboration aims to support a key innovation for the long-term decarbonisation of air travel and foster a local SAF ecosystem for Hong Kong.
HSBC Hong Kong is entering into a one-time purchase agreement for around 3,400 metric tonnes of SAF produced by EcoCeres, which will be used in Cathay Pacific flights departing from the Hong Kong International Airport.
EcoCeres’ SAF is derived from 100% waste-based biomass feedstock, which can deliver an estimated reduction of up to 90% in greenhouse gas emissions compared to conventional jet fuel, certified by International Sustainability and Carbon Certification (ISCC). This batch of SAF is made from fully traceable feedstock of used cooking oil. The reduction in lifecycle carbon emissions is estimated to be 11,800 metric tonnes, compared with use of the same volume of conventional jet fuel. It is equivalent to the carbon emissions arising from around 10,000 roundtrip Economy class seats between Hong Kong and London on Cathay Pacific flights. Cathay Pacific
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EU ready to react to any renewed US trade tensions under Trump, ambassador says
- EU ambassador to US declines to discuss retaliatory measures
- Trump has threatened 10%-20% tariffs on global US imports
- Neliupšienė says energy an area for US trade cooperation
- No EU interest in putting Airbus-Boeing truce at risk-ambassador
WASHINGTON, Nov 22 (Reuters) - The European Union is prepared to react to any renewed trade tensions with the United States that may emerge under President-elect Donald Trump's second administration, the EU's ambassador to the U.S., Jovita Neliupšienė, said on Friday.
Neliupšienė, speaking to reporters during a press briefing, declined to discuss possible retaliatory measures that Brussels could impose to respond to Trump's vow to impose tariffs of 10%-20% on all U.S. imports.
She said the U.S. is the most important trade partner for the EU, with $1.7 trillion in two-way goods and services trade, and $5 trillion in two-way investment. She added that there are opportunities for the two sides to cooperate in more areas, including energy and other sectors.
"But of course, you know, as in every family, there are sometimes tensions," she said. "If there are some new frictions for the trade, the European Union will be ready, actually, to react to that." Reuters
November 21, 2024
EU countries reject Parliament’s proposal to gut deforestation rules
The decision is a slap in the face to the center-right European People’s Party, which proposed the changes.
European Union member countries will oppose a push by the European Parliament to water down the new anti-deforestation rules — holding firm to the European Commission's earlier proposal that the flagship environmental law only be delayed by one year and otherwise be left untouched.
At a meeting of the deputy ambassadors to the EU on Wednesday, a very large majority of member countries said they opposed the amendments to the regulation, according to five national diplomats with knowledge of the closed-door gathering.
It's a slap in the face to the center-right European People's Party, which had led the push to water down the regulation, and which it got it through Parliament with the help of hard- and far-right groups and some members of the centrist Renew group.
The five diplomats said the Council was "almost unanimous" in reaffirming its position agreed last month, which is to accept the Commission's proposal to delay the implementation of the EU Deforestation Regulation by a year but not modify the substance of the text.
This aims to give businesses and trading partners more time to prepare for the new due diligence requirements, which will force companies to police their supply chains for deforestation and human rights violations. The new rules will apply to imports of cocoa, coffee, rubber, palm oil, soy, timber and cattle.
Wednesday's meeting sent a "clear message" that member countries "want to stick to the original proposal from the Commission and the mandate that was approved on Oct. 16," one of the diplomats said. "Opening the text would only generate legal uncertainty and huge time constraints," they added.
Italy did express some openness to discussing the amendments proposed by Parliament during today's meeting, according to three of the diplomats.
The Parliament's proposal is to create a new “no risk” category which would drastically cut down traceability for products sourced from areas where negligible risk of deforestation has been identified. This would effectively create a risk to circumvent the traceability requirements and undermine the due diligence obligations, which are the core of the regulation, a second diplomat pointed out.
The Council, the Parliament and the Commission will now enter into interi-nstitutional talks to try and find a compromise on the text. The first round of negotiations will take place today at 11 a.m., according to three parliamentary officials briefed on the meeting. Politico
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Member States' block on the Deforestation Law is irresponsible!
Ambassadors from the Member States, led by Germany, France, and Spain, have rejected the changes to the Deforestation Law adopted last week by the European Parliament under the leadership of the EPP Group.
"The behaviour of these Member States is irresponsible! They are obstructing urgently needed changes to the Deforestation Law that could stop illegal global deforestation and protect European companies, foresters and farmers against unreasonable bureaucracy," commented Christine Schneider MEP, the European Parliament's lead negotiator on the Deforestation Law.
"The law must be both effective and practical. We must extend the implementation deadline by a year and introduce changes to provide companies with the planning security they need. We must ensure that these changes are adopted before the end of the year," she added.
For the EPP Group, a mere postponement is not enough. "The structural problems of the legislation remain, particularly the bureaucratic burdens and documentation requirements that overwhelm small and medium-sized enterprises. These businesses often face insurmountable challenges even though they play no role in global deforestation. The current law punishes those who already practice sustainable forestry while failing to address real issues – such as illegal deforestation," Schneider says.
"If Member States continue to block progress and refuse to compromise, they risk disadvantaging European businesses, foresters, and farmers, who urgently need clear and practicable guidelines. There is a significant political risk in talking only on simplification and competitiveness without taking concrete steps to improve the legislation. This creates fertile ground for all extremist forces in Europe to thrive," Schneider concluded. EPP Group
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Ministry Of Industry Projects Palm Oil Export Value To Reach IDR 775 Trillion By The End Of 2024
JAKARTA - The Ministry of Industry (Kemenperin) estimates that by the end of 2024, the export of the national palm oil industry will be able to reach IDR 775 trillion. As is known, this sector contributed to the national GDP by 3.5 percent, and from total non-oil and gas exports the industry contributed 11.6 percent or IDR 450 trillion throughout 2023.
"The value of the industrial economy reaches IDR 193 trillion in the second quarter of 2024, and is projected to reach IDR 775 trillion by the end of this year," said Director General of Agro Industry at the Ministry of Industry Putu Juli Ardika in a written statement, quoted Thursday, November 21.
Putu said that the contribution of palm oil dominates the performance of the Indonesian economy for the last two decades. Palm oil has been used to meet food needs, non-food and renewable fuel.
It is even a leading export commodity to create foreign exchange from exports of products with high added value.
"The achievement of the downstream program of the palm oil industry can be seen from two indicators, namely various downstream products and the export ratio of raw materials with downstream products," he said.
He added that various types of downstream palm products were increasing significantly. In 2010 there were only 54 types, increasing to 193 types in 2023. Meanwhile, the export ratio of raw materials and downstream palm products has also increased.
As for 2010, the ratio was 40 percent and 60 percent (of raw materials and downstream palm products) increased drastically to 7 percent and 93 percent in 2023. "This indicates that downstream policy is going well," said Putu.
According to Putu, the broad impact provided by the palm oil processing industry in Indonesia, among others, can be seen from the absorption of direct and indirect labor as many as 17 million people. He assessed that the palm oil processing industry has created new economic growth centers, especially outside Java, such as Sumatra, Kalimantan and other regions in eastern Indonesia. VOI
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Sri Lanka's Palm Oil Industry Association congratulates new Govt. on resounding victory
The Palm Oil Industry Association (POIA) has extended its warmest congratulations to the newly elected Government on its resounding victory in the recent General Election.
“This remarkable achievement reflects the trust and confidence placed in the NPP by the people of Sri Lanka. We recognise the vital role that the Government plays in shaping policies that affect the agriculture and industrial sectors, including the palm oil industry. Under the leadership of President Anura Kumara Dissanayake, we are confident of fostering an environment that supports sustainable agriculture practices, innovation, and growth within the agriculture industry,” POIA said in a statement.
The Association also extended its congratulations and best wishes to the newly elected Minister of Plantation and Community Infrastructure Samanatha Vidyarathna, in his new role to reap the full potential of the plantation sector.
“The palm oil sector is crucial to Sri Lanka’s economy, providing livelihoods for rural communities, promoting food security and contributing towards poverty alleviation. We are eager to collaborate with the new Government to address the challenges and opportunities ahead and to promote the sustainability of the palm oil industry which is a thriving industry especially in South Asia.
“We look forward to engaging with the new administration and working together to ensure that the palm oil industry thrives in a manner that is beneficial for all stakeholders. Once again, our sincere congratulations to the new Government. The POIA wishes the new Government every success in charting a new course for our nation,” the statement added. FT LK
EU countries reject Parliament’s proposal to gut deforestation rules
The decision is a slap in the face to the center-right European People’s Party, which proposed the changes.
European Union member countries will oppose a push by the European Parliament to water down the new anti-deforestation rules — holding firm to the European Commission's earlier proposal that the flagship environmental law only be delayed by one year and otherwise be left untouched.
At a meeting of the deputy ambassadors to the EU on Wednesday, a very large majority of member countries said they opposed the amendments to the regulation, according to five national diplomats with knowledge of the closed-door gathering.
It's a slap in the face to the center-right European People's Party, which had led the push to water down the regulation, and which it got it through Parliament with the help of hard- and far-right groups and some members of the centrist Renew group.
The five diplomats said the Council was "almost unanimous" in reaffirming its position agreed last month, which is to accept the Commission's proposal to delay the implementation of the EU Deforestation Regulation by a year but not modify the substance of the text.
This aims to give businesses and trading partners more time to prepare for the new due diligence requirements, which will force companies to police their supply chains for deforestation and human rights violations. The new rules will apply to imports of cocoa, coffee, rubber, palm oil, soy, timber and cattle.
Wednesday's meeting sent a "clear message" that member countries "want to stick to the original proposal from the Commission and the mandate that was approved on Oct. 16," one of the diplomats said. "Opening the text would only generate legal uncertainty and huge time constraints," they added.
Italy did express some openness to discussing the amendments proposed by Parliament during today's meeting, according to three of the diplomats.
The Parliament's proposal is to create a new “no risk” category which would drastically cut down traceability for products sourced from areas where negligible risk of deforestation has been identified. This would effectively create a risk to circumvent the traceability requirements and undermine the due diligence obligations, which are the core of the regulation, a second diplomat pointed out.
The Council, the Parliament and the Commission will now enter into interi-nstitutional talks to try and find a compromise on the text. The first round of negotiations will take place today at 11 a.m., according to three parliamentary officials briefed on the meeting. Politico
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Member States' block on the Deforestation Law is irresponsible!
Ambassadors from the Member States, led by Germany, France, and Spain, have rejected the changes to the Deforestation Law adopted last week by the European Parliament under the leadership of the EPP Group.
"The behaviour of these Member States is irresponsible! They are obstructing urgently needed changes to the Deforestation Law that could stop illegal global deforestation and protect European companies, foresters and farmers against unreasonable bureaucracy," commented Christine Schneider MEP, the European Parliament's lead negotiator on the Deforestation Law.
"The law must be both effective and practical. We must extend the implementation deadline by a year and introduce changes to provide companies with the planning security they need. We must ensure that these changes are adopted before the end of the year," she added.
For the EPP Group, a mere postponement is not enough. "The structural problems of the legislation remain, particularly the bureaucratic burdens and documentation requirements that overwhelm small and medium-sized enterprises. These businesses often face insurmountable challenges even though they play no role in global deforestation. The current law punishes those who already practice sustainable forestry while failing to address real issues – such as illegal deforestation," Schneider says.
"If Member States continue to block progress and refuse to compromise, they risk disadvantaging European businesses, foresters, and farmers, who urgently need clear and practicable guidelines. There is a significant political risk in talking only on simplification and competitiveness without taking concrete steps to improve the legislation. This creates fertile ground for all extremist forces in Europe to thrive," Schneider concluded. EPP Group
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Ministry Of Industry Projects Palm Oil Export Value To Reach IDR 775 Trillion By The End Of 2024
JAKARTA - The Ministry of Industry (Kemenperin) estimates that by the end of 2024, the export of the national palm oil industry will be able to reach IDR 775 trillion. As is known, this sector contributed to the national GDP by 3.5 percent, and from total non-oil and gas exports the industry contributed 11.6 percent or IDR 450 trillion throughout 2023.
"The value of the industrial economy reaches IDR 193 trillion in the second quarter of 2024, and is projected to reach IDR 775 trillion by the end of this year," said Director General of Agro Industry at the Ministry of Industry Putu Juli Ardika in a written statement, quoted Thursday, November 21.
Putu said that the contribution of palm oil dominates the performance of the Indonesian economy for the last two decades. Palm oil has been used to meet food needs, non-food and renewable fuel.
It is even a leading export commodity to create foreign exchange from exports of products with high added value.
"The achievement of the downstream program of the palm oil industry can be seen from two indicators, namely various downstream products and the export ratio of raw materials with downstream products," he said.
He added that various types of downstream palm products were increasing significantly. In 2010 there were only 54 types, increasing to 193 types in 2023. Meanwhile, the export ratio of raw materials and downstream palm products has also increased.
As for 2010, the ratio was 40 percent and 60 percent (of raw materials and downstream palm products) increased drastically to 7 percent and 93 percent in 2023. "This indicates that downstream policy is going well," said Putu.
According to Putu, the broad impact provided by the palm oil processing industry in Indonesia, among others, can be seen from the absorption of direct and indirect labor as many as 17 million people. He assessed that the palm oil processing industry has created new economic growth centers, especially outside Java, such as Sumatra, Kalimantan and other regions in eastern Indonesia. VOI
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Sri Lanka's Palm Oil Industry Association congratulates new Govt. on resounding victory
The Palm Oil Industry Association (POIA) has extended its warmest congratulations to the newly elected Government on its resounding victory in the recent General Election.
“This remarkable achievement reflects the trust and confidence placed in the NPP by the people of Sri Lanka. We recognise the vital role that the Government plays in shaping policies that affect the agriculture and industrial sectors, including the palm oil industry. Under the leadership of President Anura Kumara Dissanayake, we are confident of fostering an environment that supports sustainable agriculture practices, innovation, and growth within the agriculture industry,” POIA said in a statement.
The Association also extended its congratulations and best wishes to the newly elected Minister of Plantation and Community Infrastructure Samanatha Vidyarathna, in his new role to reap the full potential of the plantation sector.
“The palm oil sector is crucial to Sri Lanka’s economy, providing livelihoods for rural communities, promoting food security and contributing towards poverty alleviation. We are eager to collaborate with the new Government to address the challenges and opportunities ahead and to promote the sustainability of the palm oil industry which is a thriving industry especially in South Asia.
“We look forward to engaging with the new administration and working together to ensure that the palm oil industry thrives in a manner that is beneficial for all stakeholders. Once again, our sincere congratulations to the new Government. The POIA wishes the new Government every success in charting a new course for our nation,” the statement added. FT LK
November 20, 2024
Graphjet Technology Commences Operations at the World’s First Agricultural Waste-to-Graphite Facility in Malaysia
Graphjet Technology Commences Operations at the World’s First Agricultural Waste-to-Graphite Facility in Malaysia
The Company’s first green graphite facility commissioned with production capacity of up to 3,000 metric tons of battery-grade graphite per year, sufficient to power approximately 40,000 EVs annually
Begins shipping green graphite samples to its customer; facility will also provide feedstock for Graphjet’s planned facility in Nevada
Graphjet has received its first shipment of palm kernel shells and has begun shipping green graphite product samples to its customers. Additionally, the Company plans to produce hard carbon at the facility to provide feedstock for its planned green graphite facility in Nevada.
Aiden Lee, CEO and Co-Founder of Graphjet, said:
The Graphjet team has achieved a monumental step towards the execution of our strategy and vision to become a reliable supplier of green graphite globally,
“With this facility online, Graphjet is now the primary player in green graphite production outside of China, as the Company has the largest production capacity ex-China. This facility, which is the first green graphite facility to commence operations outside of China, demonstrates our ability to leverage our technology at scale, and we are proud to commence commercial operations at the world’s largest green graphite facility of its kind. This facility will provide us with an ability to generate revenue by FY 2025, support our valued customers, and establish a strong foundation for a successful launch in the United States in Nevada.”
Aiden Lee, continued :
The opening of our facility is a clear indicator of the availability of green graphite production outside of China to support automakers and battery manufacturers,
“With Graphjet now officially in commercial production, we are excited to support the transition to clean energy with our environmentally friendly and cost-effective processes and technology.” Batteries News
---------
Resilience in Motion: Malaysian Palm Oil Thrives in India's Shifting Market
In 2024, India has reinforced its position as the world’s largest importer and a key force in the global edible oil market. As a major player, any policy change in India can have widespread impacts on the industry. In September, India introduced significant policy measures to reduce its reliance on imported edible oils and support its domestic oilseed farmers. Palm Pulse MPOC
--------
Malaysia's indigenous palm oil farmers without land grants, licences must refer to state govts for palm oil sales for compliance with EUDR
KUALA KANGSAR, Nov 19 — Orang Asli intending to sell oil palm fruit but lacking land grants and licences must refer to their state governments, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
He said the requirements for land grants and licences apply to all players in the domestic palm oil industry.
“If such cases involve the Orang Asli, they should approach the state government, seek verification, and we can consider recognising the land as their property,” he said after officiating the World’s First AI-Based Smart Palm Oil Mill, a collaboration between Minsawi Industries (Kuala Kangsar) Sdn Bhd and Airei Sdn Bhd, here today.
He clarified that unauthorised deforestation for oil palm cultivation disqualifies Orang Asli from obtaining the Malaysian Sustainable Palm Oil certification, thereby preventing them from selling their produce.
Yesterday, media reports highlighted that Bera MP Datuk Seri Ismail Sabri Yaakob, a former prime minister, during a parliamentary debate urged the Malaysian Palm Oil Board to relax requirements for land grants and licences to sell oil palm bunches, arguing that these rules burden smallholders, especially the Orang Asli community.
Meanwhile, Johari said the requirement for land grants and licences to sell oil palm bunches was introduced to meet the European Union Deforestation Regulation’s standards.
He noted that Malaysia produces 18.6 million tonnes of palm oil annually and exports 13 to 14 million tonnes of that amount to China, India, and Europe.
To comply with European certification standards, he stressed that all oil palm plantations must have legal ownership. Bernama
---------
Plans to rid supply chains of deforestation in peril as EU votes to amend flagship law
Efforts to rid global supply chains of illegal deforestation are under threat after the European Union voted to amend its flagship law, campaigners have warned.
The European Parliament last week approved proposals to delay the implementation of the EU Deforestation Regulation (EUDR), set to come into place this December, by 12 months.
The EUDR requires companies selling products in the bloc that include commodities notoriously linked to deforestation, such as cocoa, coffee, soy and palm oil, to provide extensive evidence that they came from deforestation-free lands.
Notably, the parliament also voted through new amendments to include a new “no-risk” category that would exempt whole countries from those requirements.
Environmental campaigners have now warned that this would “allow huge volumes of forest-destroying products to continue to be sold in the EU”.
“This new rating risks sabotaging the EUDR altogether,” said Julia Christian, forests and agriculture campaigner at Fern.
“Companies could easily ‘launder’ non-compliant products, by making goods tainted by deforestation transit through a ‘no-risk’ country – which could include countries like China – before being imported to the EU.”
The EUDR was set for a one-year delay to the original timeline after businesses and agricultural lobbies warned for months that suppliers in the most-affected origin countries – many of which in Africa and Asia – as well as European-based companies were not prepared for the rules.
The regulation asks for robust supply chain traceability evidence from food and drink companies, among many others trading in or with the EU, including geolocation mapping and farm-level data.
While the delay was widely expected to press ahead, environmental groups had hoped there would be no further amendments to the law, which has often been described as the greatest shake-up to global supply chains in decades.
But in a last-minute joint effort by conservative lawmakers grouped under commissioner Ursula Von der Leyen’s European People’s Party (EPP), the parliament voted to make significant changes to the EUDR.
Christian said changing countries’ deforestation risk ratings was “particularly egregious” as it gave “most EU countries a free pass”.
The parliament last week outlined three criteria for no-risk eligibility, with the main one being that a country’s “forest area development remains stable or has increased compared to 1990” – meaning most countries in the bloc will be potentially exempt from the requirements.
Under the no-risk categorisation, no due diligence is required and authorities need only to audit 0,1% of imports from these countries. The Grocer UK
--------
Malaysia: Fight the EU on palm oil with facts, says MP
Fight Western countries’ claims of Malaysian oil palm plantations causing deforestation with facts, an MP has told the Dewan Rakyat.
Datuk Willie Mongin (GPS – Puncak Borneo) said the European Union’s pontification to Malaysia about forest sustainability belied the fact that those countries had only about 38% forest cover in their areas.
He highlighted the percentages of forest cover in various European countries.
“In Germany it is 33%, in France and Spain it is 30%, and in Poland only 29%.
“Whereas the forest cover in Malaysia is 60% and Indonesia is 51%,” he said when debating the Supply Bill 2025 on Monday (Nov 18).
“If we go to their countries we can hardly see their forest, why should we be afraid to fight facts with facts,” he said.
He further claimed that flora and fauna in the EU were more threatened compared to those found in Malaysia and Indonesia.
For almost 30 years of expertise in the agri markets, UkrAgroConsult has accumulated an extensive database, which became the basis of the platform AgriSupp.
It is a multi-functional online platform with market intelligence for grains and oilseeds that enables to get access to daily operational information on the Black Sea & Danube markets, analytical reports, historical data. UKR Agro Consult
Graphjet Technology Commences Operations at the World’s First Agricultural Waste-to-Graphite Facility in Malaysia
Graphjet Technology Commences Operations at the World’s First Agricultural Waste-to-Graphite Facility in Malaysia
The Company’s first green graphite facility commissioned with production capacity of up to 3,000 metric tons of battery-grade graphite per year, sufficient to power approximately 40,000 EVs annually
Begins shipping green graphite samples to its customer; facility will also provide feedstock for Graphjet’s planned facility in Nevada
Graphjet has received its first shipment of palm kernel shells and has begun shipping green graphite product samples to its customers. Additionally, the Company plans to produce hard carbon at the facility to provide feedstock for its planned green graphite facility in Nevada.
Aiden Lee, CEO and Co-Founder of Graphjet, said:
The Graphjet team has achieved a monumental step towards the execution of our strategy and vision to become a reliable supplier of green graphite globally,
“With this facility online, Graphjet is now the primary player in green graphite production outside of China, as the Company has the largest production capacity ex-China. This facility, which is the first green graphite facility to commence operations outside of China, demonstrates our ability to leverage our technology at scale, and we are proud to commence commercial operations at the world’s largest green graphite facility of its kind. This facility will provide us with an ability to generate revenue by FY 2025, support our valued customers, and establish a strong foundation for a successful launch in the United States in Nevada.”
Aiden Lee, continued :
The opening of our facility is a clear indicator of the availability of green graphite production outside of China to support automakers and battery manufacturers,
“With Graphjet now officially in commercial production, we are excited to support the transition to clean energy with our environmentally friendly and cost-effective processes and technology.” Batteries News
---------
Resilience in Motion: Malaysian Palm Oil Thrives in India's Shifting Market
In 2024, India has reinforced its position as the world’s largest importer and a key force in the global edible oil market. As a major player, any policy change in India can have widespread impacts on the industry. In September, India introduced significant policy measures to reduce its reliance on imported edible oils and support its domestic oilseed farmers. Palm Pulse MPOC
--------
Malaysia's indigenous palm oil farmers without land grants, licences must refer to state govts for palm oil sales for compliance with EUDR
KUALA KANGSAR, Nov 19 — Orang Asli intending to sell oil palm fruit but lacking land grants and licences must refer to their state governments, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
He said the requirements for land grants and licences apply to all players in the domestic palm oil industry.
“If such cases involve the Orang Asli, they should approach the state government, seek verification, and we can consider recognising the land as their property,” he said after officiating the World’s First AI-Based Smart Palm Oil Mill, a collaboration between Minsawi Industries (Kuala Kangsar) Sdn Bhd and Airei Sdn Bhd, here today.
He clarified that unauthorised deforestation for oil palm cultivation disqualifies Orang Asli from obtaining the Malaysian Sustainable Palm Oil certification, thereby preventing them from selling their produce.
Yesterday, media reports highlighted that Bera MP Datuk Seri Ismail Sabri Yaakob, a former prime minister, during a parliamentary debate urged the Malaysian Palm Oil Board to relax requirements for land grants and licences to sell oil palm bunches, arguing that these rules burden smallholders, especially the Orang Asli community.
Meanwhile, Johari said the requirement for land grants and licences to sell oil palm bunches was introduced to meet the European Union Deforestation Regulation’s standards.
He noted that Malaysia produces 18.6 million tonnes of palm oil annually and exports 13 to 14 million tonnes of that amount to China, India, and Europe.
To comply with European certification standards, he stressed that all oil palm plantations must have legal ownership. Bernama
---------
Plans to rid supply chains of deforestation in peril as EU votes to amend flagship law
Efforts to rid global supply chains of illegal deforestation are under threat after the European Union voted to amend its flagship law, campaigners have warned.
The European Parliament last week approved proposals to delay the implementation of the EU Deforestation Regulation (EUDR), set to come into place this December, by 12 months.
The EUDR requires companies selling products in the bloc that include commodities notoriously linked to deforestation, such as cocoa, coffee, soy and palm oil, to provide extensive evidence that they came from deforestation-free lands.
Notably, the parliament also voted through new amendments to include a new “no-risk” category that would exempt whole countries from those requirements.
Environmental campaigners have now warned that this would “allow huge volumes of forest-destroying products to continue to be sold in the EU”.
“This new rating risks sabotaging the EUDR altogether,” said Julia Christian, forests and agriculture campaigner at Fern.
“Companies could easily ‘launder’ non-compliant products, by making goods tainted by deforestation transit through a ‘no-risk’ country – which could include countries like China – before being imported to the EU.”
The EUDR was set for a one-year delay to the original timeline after businesses and agricultural lobbies warned for months that suppliers in the most-affected origin countries – many of which in Africa and Asia – as well as European-based companies were not prepared for the rules.
The regulation asks for robust supply chain traceability evidence from food and drink companies, among many others trading in or with the EU, including geolocation mapping and farm-level data.
While the delay was widely expected to press ahead, environmental groups had hoped there would be no further amendments to the law, which has often been described as the greatest shake-up to global supply chains in decades.
But in a last-minute joint effort by conservative lawmakers grouped under commissioner Ursula Von der Leyen’s European People’s Party (EPP), the parliament voted to make significant changes to the EUDR.
Christian said changing countries’ deforestation risk ratings was “particularly egregious” as it gave “most EU countries a free pass”.
The parliament last week outlined three criteria for no-risk eligibility, with the main one being that a country’s “forest area development remains stable or has increased compared to 1990” – meaning most countries in the bloc will be potentially exempt from the requirements.
Under the no-risk categorisation, no due diligence is required and authorities need only to audit 0,1% of imports from these countries. The Grocer UK
--------
Malaysia: Fight the EU on palm oil with facts, says MP
Fight Western countries’ claims of Malaysian oil palm plantations causing deforestation with facts, an MP has told the Dewan Rakyat.
Datuk Willie Mongin (GPS – Puncak Borneo) said the European Union’s pontification to Malaysia about forest sustainability belied the fact that those countries had only about 38% forest cover in their areas.
He highlighted the percentages of forest cover in various European countries.
“In Germany it is 33%, in France and Spain it is 30%, and in Poland only 29%.
“Whereas the forest cover in Malaysia is 60% and Indonesia is 51%,” he said when debating the Supply Bill 2025 on Monday (Nov 18).
“If we go to their countries we can hardly see their forest, why should we be afraid to fight facts with facts,” he said.
He further claimed that flora and fauna in the EU were more threatened compared to those found in Malaysia and Indonesia.
For almost 30 years of expertise in the agri markets, UkrAgroConsult has accumulated an extensive database, which became the basis of the platform AgriSupp.
It is a multi-functional online platform with market intelligence for grains and oilseeds that enables to get access to daily operational information on the Black Sea & Danube markets, analytical reports, historical data. UKR Agro Consult
November 19, 2024
Palm oil sustainability key to energy security goals: Ombudsman
Jakarta (ANTARA) - Member of the Indonesian Ombudsman Yeka Hendra Fatika underscored the need for sustainable palm oil industry governance to support the use of biodiesel, which is part of Indonesia's energy security program.
"The development of the biodiesel industry is highly dependent on the success of building palm oil plantations sustainably," he remarked while delivering a presentation on the prevention of maladministration in the palm oil industry governance services here on Monday.
In this regard, Fatika suggested Energy and Mineral Resources Minister Bahlil Lahadalia make improvements in the biodiesel policy to achieve energy security.
The improvements include the creation of a road map for the B40 or B50 biodiesel program, including ensuring the availability of crude palm oil as the raw material and the readiness of production infrastructure, among other aspects.
Furthermore, he highlighted the issue related to the budget for the biodiesel program.
If the biodiesel program is further increased, namely reaching B50, then the amount of palm oil exports is feared to decrease, resulting in a dip in export revenue.
He pointed out that the incentive costs to be borne for the biodiesel program will be even greater.
To this end, if the biodiesel program is not followed by an increase in palm oil productivity, then it would cause a reduction in exports.
"If the exports decline, biodiesel incentives will decrease more, and the burden on the state budget will be bigger. This is what must be calculated comprehensively," he remarked.
The Ministry of Agriculture stated that Indonesia needs to secure 20 million kiloliters of crude palm oil production per year to implement the 50 percent biodiesel mix or B50 program.
The biodiesel mix still applicable in Indonesia is B35. The government is seeking to increase the biodiesel mix from 35 percent (B35) to 40 percent (B40) in 2025 and is making preparations for the implementation of B50. Antara News
---------
Tree islands restore nature in oil palm plantations
Research team led by Göttingen University investigate native species recovery in Sumatra
Peer-Reviewed Publication
University of Göttingen
Southeast Asia’s tropical forests are renowned for their biodiversity, but at the same time face significant threats from the expansion of oil palm plantations. With global demand for palm oil rising, the urgency for effective restoration strategies in these landscapes has become critical. A long-running experiment led by Göttingen University, Germany, and including the IPB University, Bogor and Jambi University in Indonesia, has investigated how ecological restoration promotes biodiversity recovery in oil palm plantations in Sumatra. Their findings reveal that establishing islands of trees within large oil palm monocultures can promote the recovery of native tree diversity through natural regeneration. The results were published in Science.
The international research team established 52 tree islands of varying sizes and diversity of planted trees in a conventional industrial oil palm plantation in Sumatra, Indonesia. This innovative experimental setup provided valuable insights into how initial restoration decisions influence biodiversity in oil palm-dominated landscapes. For instance, standard plantation management usually includes suppression of the undergrowth by using large amounts of herbicides and fertilizers. However, a diverse range of native species successfully colonized the tree islands, including trees that are endemic to Sundaland, meaning that they are only found in this region. Within just six years, many of these trees have already begun fruiting, with some exceeding 15 meters in height. Interestingly, alien species – meaning those not native to the study region – represented only ten percent of the natural regeneration in the restored areas.
The study highlights that tree islands accelerate the natural regeneration of native species, through the establishment of species from seeds that have arrived for example by wind or bird. This process enhances functional and evolutionary diversity, both crucial for building resilient ecosystems capable of withstanding climate change. Dr Gustavo Paterno, postdoctoral researcher at Göttingen University and lead author of the study, says: “An important finding to inform plantation management is that larger islands of trees, particularly those over 400 m², are essential for endemic and forest tree species that struggle to find suitable habitats within conventional oil palm plantations.” He adds: “Increasing the area of restoration leads to a surprisingly high increase in diversity.”
The research showed that starting with a higher diversity of planted native trees on each island can lead to a greater variety of ecological plant strategies colonizing the tree islands. “The more tree species you begin with, the more functionally diverse the restored ecosystem will become over time,” explains Professor Holger Kreft, Head of Göttingen University’s Biodiversity, Macroecology and Biogeography research group. “Our study demonstrates the potential of tree islands to transform biodiversity-poor agricultural lands into ecosystems teeming with biodiversity and native plants.” The team found, however, that despite these promising results, biodiversity levels in restored areas were still much lower than those in undisturbed forests, highlighting the urgent need to protect remaining forest patches with their irreplaceable conservation value.
This research was made possible thanks to the German Research Foundation (DFG) through the Collaborative Research Centre "Ecological and Socio-economic Functions of Tropical Lowland Rainforest Transformation Systems (EFForTS)".
Original publication: Gustavo Brant Paterno et al. Diverse and larger tree islands promote native tree diversity in oil palm landscapes. Science, 2024. DOI: 10.1126/science.ado1629
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MPOC Unveils Study To Drive Malaysian Palm Oil Industry Towards Carbon Neutrality and Net Zero
KUALA LUMPUR, 18 November 2024 – The Malaysian Palm Oil Council (MPOC) released a pivotal study identifying innovative pathways for the Malaysian palm oil industry’s journey toward carbon neutrality and net zero emissions. Conducted in collaboration with Swinburne University of Technology (Sarawak Campus), this study outlined a bold roadmap to help the Malaysian palm oil industry reach carbon neutrality and ultimately net-zero, while strengthening its role as a global leader in climate-smart agriculture.
Among others, the study highlights significant greenhouse gas (GHG) reductions achieved through compliance with the Malaysian Sustainable Palm Oil (MSPO) certification and best practices, showcasing the industry’s ability to perform above the global average in emissions reduction. With strategic recommendations for a smooth transition to net-zero emissions, the study provides a comprehensive roadmap that aligns Malaysia’s palm oil sector with international climate goals.
Belvinder Sron, CEO of MPOC, emphasised the critical importance of the study, noting, “The Malaysian palm oil industry has long been a cornerstone of global food security, providing a certified, sustainable source of edible oils and fats. With this study, we can chart a course toward a future where our industry remains both competitive and climate-resilient, setting a new standard in climate-friendly palm oil production and exemplifying our commitment to net-zero targets.”
Ir. Professor Lau Hieng Ho, Pro Vice-Chancellor and CEO of Swinburne University of Technology Sarawak Campus, expressed pride in the collaboration, underscoring the study’s role in driving real-world impact. “Through partnering with MPOC, we have outlined a practical roadmap for sustainable practices that demonstrates Swinburne’s commitment to applying academic rigour to global challenges. It is incredibly rewarding to see our expertise driving positive change for Malaysia and the broader global community, and we are eager to continue this journey towards a sustainable future.”
The Way Forward:
To achieve net-zero emissions, the Malaysian palm oil industry can leverage both proven and innovative biomass conversion technologies. Current practices, including Combined Heat and Power (CHP) systems and biogas capture from Palm Oil Mill Effluent (POME), have achieved a 68.8% reduction in emissions by replacing fossil fuels and mitigating methane emissions. To close the remaining gap, emerging solutions like processing empty fruit bunches (EFB) into briquettes or pellets can achieve or even surpass net-zero emissions by generating energy and minimising waste. Complementary approaches, such as biochar production, also enhance carbon storage in soil, contributing to long-term sequestration.
However, achieving industry-wide adoption requires addressing barriers like high capital costs, reliance on imported technology, and logistical challenges. Strategic investments in R&D, local manufacturing, and infrastructure will be essential to fully realise net-zero goals and ensure the Malaysian palm oil sector leads in sustainable production.
Media Invitation: As MPOC leads this pioneering movement towards a net-zero future, media are invited to cover this milestone in sustainable palm oil. The study underscores Malaysia’s position as a trailblazer in sustainable agriculture, with the findings resonating beyond borders to shape global conversations on climate-smart food production.
The full report of the study can be downloaded here: https://www.mpoc.org.my/review-of-current-state-gaps-and-opportunities-for-technologies-in-the-malaysian-oil-palm-estates-and-palm-oil-mills-towards-net-zero-emissions/
For more information on MPOC and Malaysian palm oil, visit www.mpoc.org.my
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Perak facility is world’s first palm oil mill to adopt AI
KUALA KANGSAR: A palm oil mill here operating for 41 years has been transformed into a smart facility utilising artificial intelligence (AI).
The facility - Minsawi Industries Kuala Kangsar Sdn Bhd in partnership with technology provider Artificial Intelligence Robotics Engineering Industries (AIREI) - was launched by Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
Johari said there were 446 palm oil mills in the country, and that this mill is the first in the world to use this new technology in the processing of palm oil.
He said the mill, which is not new but has been in existence for a long time, had invested between RM4mil and RM5mil for this technology. The StarMY
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Palm oil sustainability key to energy security goals: Ombudsman
Jakarta (ANTARA) - Member of the Indonesian Ombudsman Yeka Hendra Fatika underscored the need for sustainable palm oil industry governance to support the use of biodiesel, which is part of Indonesia's energy security program.
"The development of the biodiesel industry is highly dependent on the success of building palm oil plantations sustainably," he remarked while delivering a presentation on the prevention of maladministration in the palm oil industry governance services here on Monday.
In this regard, Fatika suggested Energy and Mineral Resources Minister Bahlil Lahadalia make improvements in the biodiesel policy to achieve energy security.
The improvements include the creation of a road map for the B40 or B50 biodiesel program, including ensuring the availability of crude palm oil as the raw material and the readiness of production infrastructure, among other aspects.
Furthermore, he highlighted the issue related to the budget for the biodiesel program.
If the biodiesel program is further increased, namely reaching B50, then the amount of palm oil exports is feared to decrease, resulting in a dip in export revenue.
He pointed out that the incentive costs to be borne for the biodiesel program will be even greater.
To this end, if the biodiesel program is not followed by an increase in palm oil productivity, then it would cause a reduction in exports.
"If the exports decline, biodiesel incentives will decrease more, and the burden on the state budget will be bigger. This is what must be calculated comprehensively," he remarked.
The Ministry of Agriculture stated that Indonesia needs to secure 20 million kiloliters of crude palm oil production per year to implement the 50 percent biodiesel mix or B50 program.
The biodiesel mix still applicable in Indonesia is B35. The government is seeking to increase the biodiesel mix from 35 percent (B35) to 40 percent (B40) in 2025 and is making preparations for the implementation of B50. Antara News
---------
Tree islands restore nature in oil palm plantations
Research team led by Göttingen University investigate native species recovery in Sumatra
Peer-Reviewed Publication
University of Göttingen
Southeast Asia’s tropical forests are renowned for their biodiversity, but at the same time face significant threats from the expansion of oil palm plantations. With global demand for palm oil rising, the urgency for effective restoration strategies in these landscapes has become critical. A long-running experiment led by Göttingen University, Germany, and including the IPB University, Bogor and Jambi University in Indonesia, has investigated how ecological restoration promotes biodiversity recovery in oil palm plantations in Sumatra. Their findings reveal that establishing islands of trees within large oil palm monocultures can promote the recovery of native tree diversity through natural regeneration. The results were published in Science.
The international research team established 52 tree islands of varying sizes and diversity of planted trees in a conventional industrial oil palm plantation in Sumatra, Indonesia. This innovative experimental setup provided valuable insights into how initial restoration decisions influence biodiversity in oil palm-dominated landscapes. For instance, standard plantation management usually includes suppression of the undergrowth by using large amounts of herbicides and fertilizers. However, a diverse range of native species successfully colonized the tree islands, including trees that are endemic to Sundaland, meaning that they are only found in this region. Within just six years, many of these trees have already begun fruiting, with some exceeding 15 meters in height. Interestingly, alien species – meaning those not native to the study region – represented only ten percent of the natural regeneration in the restored areas.
The study highlights that tree islands accelerate the natural regeneration of native species, through the establishment of species from seeds that have arrived for example by wind or bird. This process enhances functional and evolutionary diversity, both crucial for building resilient ecosystems capable of withstanding climate change. Dr Gustavo Paterno, postdoctoral researcher at Göttingen University and lead author of the study, says: “An important finding to inform plantation management is that larger islands of trees, particularly those over 400 m², are essential for endemic and forest tree species that struggle to find suitable habitats within conventional oil palm plantations.” He adds: “Increasing the area of restoration leads to a surprisingly high increase in diversity.”
The research showed that starting with a higher diversity of planted native trees on each island can lead to a greater variety of ecological plant strategies colonizing the tree islands. “The more tree species you begin with, the more functionally diverse the restored ecosystem will become over time,” explains Professor Holger Kreft, Head of Göttingen University’s Biodiversity, Macroecology and Biogeography research group. “Our study demonstrates the potential of tree islands to transform biodiversity-poor agricultural lands into ecosystems teeming with biodiversity and native plants.” The team found, however, that despite these promising results, biodiversity levels in restored areas were still much lower than those in undisturbed forests, highlighting the urgent need to protect remaining forest patches with their irreplaceable conservation value.
This research was made possible thanks to the German Research Foundation (DFG) through the Collaborative Research Centre "Ecological and Socio-economic Functions of Tropical Lowland Rainforest Transformation Systems (EFForTS)".
Original publication: Gustavo Brant Paterno et al. Diverse and larger tree islands promote native tree diversity in oil palm landscapes. Science, 2024. DOI: 10.1126/science.ado1629
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MPOC Unveils Study To Drive Malaysian Palm Oil Industry Towards Carbon Neutrality and Net Zero
KUALA LUMPUR, 18 November 2024 – The Malaysian Palm Oil Council (MPOC) released a pivotal study identifying innovative pathways for the Malaysian palm oil industry’s journey toward carbon neutrality and net zero emissions. Conducted in collaboration with Swinburne University of Technology (Sarawak Campus), this study outlined a bold roadmap to help the Malaysian palm oil industry reach carbon neutrality and ultimately net-zero, while strengthening its role as a global leader in climate-smart agriculture.
Among others, the study highlights significant greenhouse gas (GHG) reductions achieved through compliance with the Malaysian Sustainable Palm Oil (MSPO) certification and best practices, showcasing the industry’s ability to perform above the global average in emissions reduction. With strategic recommendations for a smooth transition to net-zero emissions, the study provides a comprehensive roadmap that aligns Malaysia’s palm oil sector with international climate goals.
Belvinder Sron, CEO of MPOC, emphasised the critical importance of the study, noting, “The Malaysian palm oil industry has long been a cornerstone of global food security, providing a certified, sustainable source of edible oils and fats. With this study, we can chart a course toward a future where our industry remains both competitive and climate-resilient, setting a new standard in climate-friendly palm oil production and exemplifying our commitment to net-zero targets.”
Ir. Professor Lau Hieng Ho, Pro Vice-Chancellor and CEO of Swinburne University of Technology Sarawak Campus, expressed pride in the collaboration, underscoring the study’s role in driving real-world impact. “Through partnering with MPOC, we have outlined a practical roadmap for sustainable practices that demonstrates Swinburne’s commitment to applying academic rigour to global challenges. It is incredibly rewarding to see our expertise driving positive change for Malaysia and the broader global community, and we are eager to continue this journey towards a sustainable future.”
The Way Forward:
To achieve net-zero emissions, the Malaysian palm oil industry can leverage both proven and innovative biomass conversion technologies. Current practices, including Combined Heat and Power (CHP) systems and biogas capture from Palm Oil Mill Effluent (POME), have achieved a 68.8% reduction in emissions by replacing fossil fuels and mitigating methane emissions. To close the remaining gap, emerging solutions like processing empty fruit bunches (EFB) into briquettes or pellets can achieve or even surpass net-zero emissions by generating energy and minimising waste. Complementary approaches, such as biochar production, also enhance carbon storage in soil, contributing to long-term sequestration.
However, achieving industry-wide adoption requires addressing barriers like high capital costs, reliance on imported technology, and logistical challenges. Strategic investments in R&D, local manufacturing, and infrastructure will be essential to fully realise net-zero goals and ensure the Malaysian palm oil sector leads in sustainable production.
Media Invitation: As MPOC leads this pioneering movement towards a net-zero future, media are invited to cover this milestone in sustainable palm oil. The study underscores Malaysia’s position as a trailblazer in sustainable agriculture, with the findings resonating beyond borders to shape global conversations on climate-smart food production.
The full report of the study can be downloaded here: https://www.mpoc.org.my/review-of-current-state-gaps-and-opportunities-for-technologies-in-the-malaysian-oil-palm-estates-and-palm-oil-mills-towards-net-zero-emissions/
For more information on MPOC and Malaysian palm oil, visit www.mpoc.org.my
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Perak facility is world’s first palm oil mill to adopt AI
KUALA KANGSAR: A palm oil mill here operating for 41 years has been transformed into a smart facility utilising artificial intelligence (AI).
The facility - Minsawi Industries Kuala Kangsar Sdn Bhd in partnership with technology provider Artificial Intelligence Robotics Engineering Industries (AIREI) - was launched by Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
Johari said there were 446 palm oil mills in the country, and that this mill is the first in the world to use this new technology in the processing of palm oil.
He said the mill, which is not new but has been in existence for a long time, had invested between RM4mil and RM5mil for this technology. The StarMY
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November 18, 2024
RM10mil boost to improve palm oil's image in Europe, says Deputy Minister
KUALA LUMPUR: Almost RM10mil is allocated to improve Malaysia’s palm oil perception in Europe, says Deputy Plantations and Commodities Minister.
While Budget 2025 has allocated RM15mil to improve palm oil perception, Datuk Chan Foong Hin said that RM5.625mil will be used for consumer information campaigns in Europe, while another RM4.3mil will be used for lobbying for palm oil.
With the additional budget for the promotion of palm oil, he will also ask the Malaysian Palm Oil Council (MPOC) and Malaysian Palm Oil Board to reconsider reopening offices in Europe.
“Previously, the closure of MPOB offices abroad was part of the government's initiative to control spending prudently,” he said on Monday (Nov 18). The StarMY
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Fight the EU on palm oil with facts, says Malaysian MP Willie Mongin
KUALA LUMPUR: Fight Western countries’ claims of Malaysian oil palm plantations causing deforestation with facts, an MP has told the Dewan Rakyat.
Datuk Willie Mongin (GPS - Puncak Borneo) said the European Union’s pontification to Malaysia about forest sustainability belied the fact that those countries had only about 38% forest cover in their areas.
He highlighted the percentages of forest cover in various European countries.
"In Germany it is 33%, in France and Spain it is 30%, and in Poland only 29%.
"Whereas the forest cover in Malaysia is 60% and Indonesia is 51%,” he said when debating the Supply Bill 2025 on Monday (Nov 18).
"If we go to their countries we can hardly see their forest, why should we be afraid to fight facts with facts," he said.
He further claimed that flora and fauna in the EU were more threatened compared to those found in Malaysia and Indonesia. The StarMY
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MPOC urges EU to grant Malaysia low-risk status, accept MSPO certification scheme
The Malaysian Palm Oil Council (MPOC) has urged the European Union (EU) to class Malaysia as a low-risk country, and to put in place transparent benchmarking criterias which accepts the Malaysian Sustainable Palm Oil (MSPO) certification scheme, as an effective compliance tool for The EU’s ‘Regulation on Deforestation-free Products’ (EUDR. NSTP/MOHD AZREEN JAMALUDDIN
KUALA LUMPUR: The Malaysian Palm Oil Council (MPOC) has urged the European Union (EU) to class Malaysia as a low-risk country, and to put in place transparent benchmarking criterias which accepts the Malaysian Sustainable Palm Oil (MSPO) certification scheme, as an effective compliance tool for The EU's 'Regulation on Deforestation-free Products'(EUDR).
MSPO is the world's first nationally mandated environmental standard enforceable by law.
It strengthens traceability across the entire supply chain by bringing operators, traders, and supply chain partners together to address deforestation, promote sustainability in the sector.
MPOC in a statement, welcomed the EU's decision to postpone its regulation on EUDR legislation for 12 months.
MPOC chief executive officer Belvinder Sron said the MSPO certification scheme has been unfairly overlooked by the EU, although it has contributed enormously to greater sustainability across the industry.
She noted that Malaysia achieved a 57 per cent reduction in primary forest loss as of 2022, demonstrating the success of government and industry initiatives to curb deforestation.
"The decline in deforestation reflects Malaysia's decision to refrain from expanding into new areas to prioritise environmental concerns, further strengthens the nation's position as a low-risk country under the EUDR's unilaterally imposed benchmarking system," she added.
The EUDR, which was due to come into full force on Dec 30 this year, requires companies to ensure that products sold in the EU are not sourced from deforested or degraded land.
However, the European Parliament voted to postpone the regulation and to include a four-tier classification system for countries based on risk levels.
Sron, however, is concerned over the introduction of a 'no risk' category in the four-tier classification system that could provide a convenient off-ramp for legislators to exempt domestic companies from the legislation, which would constitute two-tier protectionist policymaking.
"A two-tiered approach to regulation – protecting European companies while penalising their international trade partners – would send the wrong message to the world, given that countries like Malaysia have worked so hard to comply with EUDR," she said in the statement.
Sron called on the EU for greater cooperation and an open trading relationship. New Straits Times
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Indonesia Has A Strategic Role In Supporting Global Food And Energy Availability Through Palm Oil
JAKARTA - Indonesia as the largest palm oil producer in the world is considered to have a strategic role in supporting food and energy availability at the global level as the human population increases.
"In the context of Indonesia, palm oil is a strategic commodity that will support our nation to achieve food and energy independence," said Chairman of the Indonesian Palm Oil House (RSI), Kacuk Sumarto in Jakarta, quoted from Antara, Monday, November 18.
According to him, the world's human population is expected to increase to around 8.5 billion people (in 2030) from about 8.2 billion people (in 2024), while the United Nations (UN) predicts it will reach 10 billion in 2080.
Of course, he continued, this will also increase the number of food and energy needs. Meanwhile, the earth's carrying capacity has decreased as a result of; exploitation of excessive natural resources, use of unwise kima fertilizers and climate change. This has an impact on the ratio of food availability to decrease and food prices are increasing.
The increase in population will also have an impact on increasing human activity and in turn the need for energy will also increase, while the availability of energy originating from the stomach will decrease and be limited.
"Therefore, the development of new and renewable energy is a necessity. Moreover, the use of fossil fuels contributes to a very high impact on carbon emissions, so it must be limited in use," said Kacuk in his statement.
He emphasized that it is absolute for the state to establish a policy of food and energy independence that is not disturbed by any situation in the international world.
Seeing the condition of the existing land, he added, oil palm plantations have the most potential to support food sovereignty or independence and energy.
This considers two main things, first; palm oil can produce food and energy. Second; oil palm plantation land, covering an area of 16.8 million hectares and spread across the country, has the potential to be planted with food and energy. VOI
RM10mil boost to improve palm oil's image in Europe, says Deputy Minister
KUALA LUMPUR: Almost RM10mil is allocated to improve Malaysia’s palm oil perception in Europe, says Deputy Plantations and Commodities Minister.
While Budget 2025 has allocated RM15mil to improve palm oil perception, Datuk Chan Foong Hin said that RM5.625mil will be used for consumer information campaigns in Europe, while another RM4.3mil will be used for lobbying for palm oil.
With the additional budget for the promotion of palm oil, he will also ask the Malaysian Palm Oil Council (MPOC) and Malaysian Palm Oil Board to reconsider reopening offices in Europe.
“Previously, the closure of MPOB offices abroad was part of the government's initiative to control spending prudently,” he said on Monday (Nov 18). The StarMY
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Fight the EU on palm oil with facts, says Malaysian MP Willie Mongin
KUALA LUMPUR: Fight Western countries’ claims of Malaysian oil palm plantations causing deforestation with facts, an MP has told the Dewan Rakyat.
Datuk Willie Mongin (GPS - Puncak Borneo) said the European Union’s pontification to Malaysia about forest sustainability belied the fact that those countries had only about 38% forest cover in their areas.
He highlighted the percentages of forest cover in various European countries.
"In Germany it is 33%, in France and Spain it is 30%, and in Poland only 29%.
"Whereas the forest cover in Malaysia is 60% and Indonesia is 51%,” he said when debating the Supply Bill 2025 on Monday (Nov 18).
"If we go to their countries we can hardly see their forest, why should we be afraid to fight facts with facts," he said.
He further claimed that flora and fauna in the EU were more threatened compared to those found in Malaysia and Indonesia. The StarMY
--------
MPOC urges EU to grant Malaysia low-risk status, accept MSPO certification scheme
The Malaysian Palm Oil Council (MPOC) has urged the European Union (EU) to class Malaysia as a low-risk country, and to put in place transparent benchmarking criterias which accepts the Malaysian Sustainable Palm Oil (MSPO) certification scheme, as an effective compliance tool for The EU’s ‘Regulation on Deforestation-free Products’ (EUDR. NSTP/MOHD AZREEN JAMALUDDIN
KUALA LUMPUR: The Malaysian Palm Oil Council (MPOC) has urged the European Union (EU) to class Malaysia as a low-risk country, and to put in place transparent benchmarking criterias which accepts the Malaysian Sustainable Palm Oil (MSPO) certification scheme, as an effective compliance tool for The EU's 'Regulation on Deforestation-free Products'(EUDR).
MSPO is the world's first nationally mandated environmental standard enforceable by law.
It strengthens traceability across the entire supply chain by bringing operators, traders, and supply chain partners together to address deforestation, promote sustainability in the sector.
MPOC in a statement, welcomed the EU's decision to postpone its regulation on EUDR legislation for 12 months.
MPOC chief executive officer Belvinder Sron said the MSPO certification scheme has been unfairly overlooked by the EU, although it has contributed enormously to greater sustainability across the industry.
She noted that Malaysia achieved a 57 per cent reduction in primary forest loss as of 2022, demonstrating the success of government and industry initiatives to curb deforestation.
"The decline in deforestation reflects Malaysia's decision to refrain from expanding into new areas to prioritise environmental concerns, further strengthens the nation's position as a low-risk country under the EUDR's unilaterally imposed benchmarking system," she added.
The EUDR, which was due to come into full force on Dec 30 this year, requires companies to ensure that products sold in the EU are not sourced from deforested or degraded land.
However, the European Parliament voted to postpone the regulation and to include a four-tier classification system for countries based on risk levels.
Sron, however, is concerned over the introduction of a 'no risk' category in the four-tier classification system that could provide a convenient off-ramp for legislators to exempt domestic companies from the legislation, which would constitute two-tier protectionist policymaking.
"A two-tiered approach to regulation – protecting European companies while penalising their international trade partners – would send the wrong message to the world, given that countries like Malaysia have worked so hard to comply with EUDR," she said in the statement.
Sron called on the EU for greater cooperation and an open trading relationship. New Straits Times
--------
Indonesia Has A Strategic Role In Supporting Global Food And Energy Availability Through Palm Oil
JAKARTA - Indonesia as the largest palm oil producer in the world is considered to have a strategic role in supporting food and energy availability at the global level as the human population increases.
"In the context of Indonesia, palm oil is a strategic commodity that will support our nation to achieve food and energy independence," said Chairman of the Indonesian Palm Oil House (RSI), Kacuk Sumarto in Jakarta, quoted from Antara, Monday, November 18.
According to him, the world's human population is expected to increase to around 8.5 billion people (in 2030) from about 8.2 billion people (in 2024), while the United Nations (UN) predicts it will reach 10 billion in 2080.
Of course, he continued, this will also increase the number of food and energy needs. Meanwhile, the earth's carrying capacity has decreased as a result of; exploitation of excessive natural resources, use of unwise kima fertilizers and climate change. This has an impact on the ratio of food availability to decrease and food prices are increasing.
The increase in population will also have an impact on increasing human activity and in turn the need for energy will also increase, while the availability of energy originating from the stomach will decrease and be limited.
"Therefore, the development of new and renewable energy is a necessity. Moreover, the use of fossil fuels contributes to a very high impact on carbon emissions, so it must be limited in use," said Kacuk in his statement.
He emphasized that it is absolute for the state to establish a policy of food and energy independence that is not disturbed by any situation in the international world.
Seeing the condition of the existing land, he added, oil palm plantations have the most potential to support food sovereignty or independence and energy.
This considers two main things, first; palm oil can produce food and energy. Second; oil palm plantation land, covering an area of 16.8 million hectares and spread across the country, has the potential to be planted with food and energy. VOI
November 17, 2024
EU-Mercosur: Why the French have opposed this free trade agreement
The French government wants to block the free trade agreement between the European Union and five South American countries. Meanwhile, farmers have called for nationwide protests starting on Monday.
French farmers threaten nationwide protests as Prime Minister Michel Barnier heads to Brussels to plead his country's case: The possibility that a trade agreement between the European Union and Mercosur might soon be signed has been creating political turmoil in France and across Europe.
What is the EU-Mercosur agreement?
This is a proposed free-trade agreement between the EU and the countries in the Mercosur, an abbreviation of Mercado Común del Sur ("Southern Common Market"), a South American trade bloc, the full members of which are Brazil, Argentina, Paraguay, Uruguay and Bolivia.
If finalized, it would be the most significant free-trade deal ever concluded by the EU, both in terms of the total population concerned (780 million people) and the volume of trade (between €40 and €45 billion in imports and exports).
The agreement aims to facilitate trade between Europe and South America by gradually eliminating nearly all customs duties on trade between the two blocs. The EU hopes to thereby boost exports of European goods that currently face high tariffs applied by Mercosur countries, such as cars, clothing and wine. The agreement also provides for a substantial beef import quota, the recognition of almost 400 protected geographical indications for products, and several other measures designed to facilitate European and South American companies' mutual access to public procurement markets.
After a lengthy negotiation process that began in the early 2000s, the agreement was formally concluded on June 28, 2019. However, several involved countries, on both sides of the Atlantic, expressed hesitations that have delayed its ratification. Lemonde
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COP29: MPOC Showcases Malaysia's Leadership In Sustainable Palm Oil To The World
BAKU (Azerbaijan), Nov 16 (Bernama) -- The Malaysian Palm Oil Council’s (MPOC) maiden participation in the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC-COP29) reflected Malaysia's leading role in sustainable palm oil production.
To further elevate the Malaysian palm oil industry’s voice to the global stage, MPOC hosted a discussion titled, “Powering a Just Transition: Sustainable Malaysian Palm Oil”, at the Malaysia Pavilion, highlighting the country's dedication to producing certified sustainable palm oil (CSPO) and underscoring its role in fulfilling the United Nations Sustainable Development Goals (SDGs).
MPOC chief executive officer Belvinder Sron shared that the council’s presence at COP29 underscores Malaysia’s position as a trailblazer in sustainable palm oil production, further demonstrating the country’s proactive approach to sustainable practices.
"Through strategic partnerships and steadfast dedication to responsible practices, we aim to set a global benchmark for environmental stewardship and economic resilience, showing the world that sustainable palm oil can meet both ecological and societal needs," she said.
Furthermore, Belvinder said this reflects Malaysia’s intention to align its agricultural practices with ecological and social sustainability goals.
She noted that the MPOC has collaborated with major industry players such as SD Guthrie, Felda Global Ventures and Malaysian Palm Oil Green Conservation Foundation (MPOGCF) to enhance Malaysia's leadership in climate-smart agriculture.
Engaging with international leaders and policymakers at COP29 demonstrated sustainable palm oil can be a critical contributor to both global food security and environmental sustainability, thus creating a pathway toward a resilient future.
The major focus of MPOC's participation was advancing a “Just Transition” agenda, which seeks to ensure Malaysia's shift toward sustainability includes equitable growth and job security for all stakeholders, especially smallholders and rural communities relying on the industry.
MPOC also announced a "Net-Zero Transition" study in partnership with Swinburne University, providing a comprehensive roadmap for Malaysia's palm oil industry to achieve net-zero emissions.
The landmark study aligns the industry with global climate goals and emphasises its commitment to responsible practices that balance economic growth with environmental preservation.
Meanwhile, United Nations Sustainable Development Solutions Network (UNSDSN) president, Professor Jeffrey Sachs, highlighted the critical role of sustainable economic development in the global south and emphasised Malaysia's contributions to inclusive climate action.
The economist and sustainability advocate expressed a great deal of enthusiasm and optimism about Malaysia's upcoming ASEAN chairmanship in 2025 and its role in advancing sustainable development.
"I am excited about Malaysia's leadership as the chair of ASEAN in the coming year. Malaysia has consistently demonstrated a strong commitment to sustainable development, making it a great leader in the region.
"With this upcoming presidency, I am confident that ASEAN can make significant strides in energy transformation, biodiversity conservation, and economic development which cover all the main pillars of sustainability," he said.
Sachs said every part of the world must transition to clean energy systems to achieve net-zero carbon goals and that Malaysia is actively contributing to that effort.
"ASEAN, by working together, can harness diverse renewable energy sources such as hydropower, wind, solar, ocean, and geothermal power.
“The integration of these technologies will accelerate the region’s sustainable energy transformation," he said.
Sachs also said China, through its Belt and Road Initiative, could be a valuable partner in this effort, presenting tremendous opportunities for collaboration between ASEAN, China, and Malaysia, as the country has become a partner country of BRICS, which opens doors to even greater regional and global cooperation.
BRICS is an intergovernmental alliance that includes Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia and the United Arab Emirates.
"The East Asia region, including Northeast and Southeast Asia, is one of the world's most dynamic areas. By leveraging our technological capabilities and biodiversity, we can bring all the pieces together to achieve sustainable growth and energy transformation," he said. BERNAMA
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Deadline for palm oil processing units in Telangana: Firms must comply by 2025
Thummala Nageswara Rao said that plantation of oil palms in 25,470 acres has been achieved, as against one lakh acres targeted for plantation in 2024-25.
Hyderabad: Instructing all the palm oil processing companies to complete establishing their processing units by the end of 2025, Agriculture minister Thummala Nageswara Rao has warned the managements of the companies that if they failed to do so, their permissions will be cancelled and their units will be given to Telangana Cooperative Oil Seeds Growers Federation Limited (TGOILFED).
During a review meeting he held with the palm oil companies in Hyderabad on Saturday, November 16, he said that oil palm was being cultivated across 64,040 hectares in the state presently, and that plantation of oil palms in 25,470 acres has been achieved, as against one lakh acres targeted for plantation in 2024-25.
He told the companies that every processing unit needed to have its own nursery, and oil palm varieties that would give higher yields and show resistance to Ganoderma fungal attacks needed to be cultivated in those nurseries. Siasat
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Mahabubabad: Delay in construction of oil palm factory creating unrest among farmers
The oil palm factory at Gopalgiri village was supposed to be completed in two years, but since the government is not showing much interest in taking up the project, farmers are getting unrest and majority of them are reportedly planning to cut down the area of cultivation or completely stop
Mahabubabad: Oil palm farmers of the Thorrur mandal of the district are getting restless as the State government has not yet initiated the process of construction of an oil palm factory at Gopalgiri village of the mandal.
Last October, the then Panchayati Raj Minister Errabelli Dayakar Rao laid the foundation stone for an oil palm factory in Gopalgiri village of Palakurthi assembly Constituency, but after that no initiative has been taken by the government to start the construction of the factory.
Telangana State Cooperative Oilseeds Growers Federation (TG-Oilfed) was supposed to construct the factory on 82 acres. Though the farmers have been exerting pressure on the district administration to take up the construction of the oil palm factory, there is no response from them, creating confusion and anxiety among the farmers.
The proposed factory, which is estimated to cost Rs. 175 crore, will have a capacity to process 30 to 60 tonnes of oil per day. The establishment of this factory will create employment opportunities for around 300 people. In addition to expanding the area of palm oil cultivation, the factory will also be accessible to the farmers. Telangana Today
EU-Mercosur: Why the French have opposed this free trade agreement
The French government wants to block the free trade agreement between the European Union and five South American countries. Meanwhile, farmers have called for nationwide protests starting on Monday.
French farmers threaten nationwide protests as Prime Minister Michel Barnier heads to Brussels to plead his country's case: The possibility that a trade agreement between the European Union and Mercosur might soon be signed has been creating political turmoil in France and across Europe.
What is the EU-Mercosur agreement?
This is a proposed free-trade agreement between the EU and the countries in the Mercosur, an abbreviation of Mercado Común del Sur ("Southern Common Market"), a South American trade bloc, the full members of which are Brazil, Argentina, Paraguay, Uruguay and Bolivia.
If finalized, it would be the most significant free-trade deal ever concluded by the EU, both in terms of the total population concerned (780 million people) and the volume of trade (between €40 and €45 billion in imports and exports).
The agreement aims to facilitate trade between Europe and South America by gradually eliminating nearly all customs duties on trade between the two blocs. The EU hopes to thereby boost exports of European goods that currently face high tariffs applied by Mercosur countries, such as cars, clothing and wine. The agreement also provides for a substantial beef import quota, the recognition of almost 400 protected geographical indications for products, and several other measures designed to facilitate European and South American companies' mutual access to public procurement markets.
After a lengthy negotiation process that began in the early 2000s, the agreement was formally concluded on June 28, 2019. However, several involved countries, on both sides of the Atlantic, expressed hesitations that have delayed its ratification. Lemonde
--------
COP29: MPOC Showcases Malaysia's Leadership In Sustainable Palm Oil To The World
BAKU (Azerbaijan), Nov 16 (Bernama) -- The Malaysian Palm Oil Council’s (MPOC) maiden participation in the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC-COP29) reflected Malaysia's leading role in sustainable palm oil production.
To further elevate the Malaysian palm oil industry’s voice to the global stage, MPOC hosted a discussion titled, “Powering a Just Transition: Sustainable Malaysian Palm Oil”, at the Malaysia Pavilion, highlighting the country's dedication to producing certified sustainable palm oil (CSPO) and underscoring its role in fulfilling the United Nations Sustainable Development Goals (SDGs).
MPOC chief executive officer Belvinder Sron shared that the council’s presence at COP29 underscores Malaysia’s position as a trailblazer in sustainable palm oil production, further demonstrating the country’s proactive approach to sustainable practices.
"Through strategic partnerships and steadfast dedication to responsible practices, we aim to set a global benchmark for environmental stewardship and economic resilience, showing the world that sustainable palm oil can meet both ecological and societal needs," she said.
Furthermore, Belvinder said this reflects Malaysia’s intention to align its agricultural practices with ecological and social sustainability goals.
She noted that the MPOC has collaborated with major industry players such as SD Guthrie, Felda Global Ventures and Malaysian Palm Oil Green Conservation Foundation (MPOGCF) to enhance Malaysia's leadership in climate-smart agriculture.
Engaging with international leaders and policymakers at COP29 demonstrated sustainable palm oil can be a critical contributor to both global food security and environmental sustainability, thus creating a pathway toward a resilient future.
The major focus of MPOC's participation was advancing a “Just Transition” agenda, which seeks to ensure Malaysia's shift toward sustainability includes equitable growth and job security for all stakeholders, especially smallholders and rural communities relying on the industry.
MPOC also announced a "Net-Zero Transition" study in partnership with Swinburne University, providing a comprehensive roadmap for Malaysia's palm oil industry to achieve net-zero emissions.
The landmark study aligns the industry with global climate goals and emphasises its commitment to responsible practices that balance economic growth with environmental preservation.
Meanwhile, United Nations Sustainable Development Solutions Network (UNSDSN) president, Professor Jeffrey Sachs, highlighted the critical role of sustainable economic development in the global south and emphasised Malaysia's contributions to inclusive climate action.
The economist and sustainability advocate expressed a great deal of enthusiasm and optimism about Malaysia's upcoming ASEAN chairmanship in 2025 and its role in advancing sustainable development.
"I am excited about Malaysia's leadership as the chair of ASEAN in the coming year. Malaysia has consistently demonstrated a strong commitment to sustainable development, making it a great leader in the region.
"With this upcoming presidency, I am confident that ASEAN can make significant strides in energy transformation, biodiversity conservation, and economic development which cover all the main pillars of sustainability," he said.
Sachs said every part of the world must transition to clean energy systems to achieve net-zero carbon goals and that Malaysia is actively contributing to that effort.
"ASEAN, by working together, can harness diverse renewable energy sources such as hydropower, wind, solar, ocean, and geothermal power.
“The integration of these technologies will accelerate the region’s sustainable energy transformation," he said.
Sachs also said China, through its Belt and Road Initiative, could be a valuable partner in this effort, presenting tremendous opportunities for collaboration between ASEAN, China, and Malaysia, as the country has become a partner country of BRICS, which opens doors to even greater regional and global cooperation.
BRICS is an intergovernmental alliance that includes Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia and the United Arab Emirates.
"The East Asia region, including Northeast and Southeast Asia, is one of the world's most dynamic areas. By leveraging our technological capabilities and biodiversity, we can bring all the pieces together to achieve sustainable growth and energy transformation," he said. BERNAMA
--------
Deadline for palm oil processing units in Telangana: Firms must comply by 2025
Thummala Nageswara Rao said that plantation of oil palms in 25,470 acres has been achieved, as against one lakh acres targeted for plantation in 2024-25.
Hyderabad: Instructing all the palm oil processing companies to complete establishing their processing units by the end of 2025, Agriculture minister Thummala Nageswara Rao has warned the managements of the companies that if they failed to do so, their permissions will be cancelled and their units will be given to Telangana Cooperative Oil Seeds Growers Federation Limited (TGOILFED).
During a review meeting he held with the palm oil companies in Hyderabad on Saturday, November 16, he said that oil palm was being cultivated across 64,040 hectares in the state presently, and that plantation of oil palms in 25,470 acres has been achieved, as against one lakh acres targeted for plantation in 2024-25.
He told the companies that every processing unit needed to have its own nursery, and oil palm varieties that would give higher yields and show resistance to Ganoderma fungal attacks needed to be cultivated in those nurseries. Siasat
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Mahabubabad: Delay in construction of oil palm factory creating unrest among farmers
The oil palm factory at Gopalgiri village was supposed to be completed in two years, but since the government is not showing much interest in taking up the project, farmers are getting unrest and majority of them are reportedly planning to cut down the area of cultivation or completely stop
Mahabubabad: Oil palm farmers of the Thorrur mandal of the district are getting restless as the State government has not yet initiated the process of construction of an oil palm factory at Gopalgiri village of the mandal.
Last October, the then Panchayati Raj Minister Errabelli Dayakar Rao laid the foundation stone for an oil palm factory in Gopalgiri village of Palakurthi assembly Constituency, but after that no initiative has been taken by the government to start the construction of the factory.
Telangana State Cooperative Oilseeds Growers Federation (TG-Oilfed) was supposed to construct the factory on 82 acres. Though the farmers have been exerting pressure on the district administration to take up the construction of the oil palm factory, there is no response from them, creating confusion and anxiety among the farmers.
The proposed factory, which is estimated to cost Rs. 175 crore, will have a capacity to process 30 to 60 tonnes of oil per day. The establishment of this factory will create employment opportunities for around 300 people. In addition to expanding the area of palm oil cultivation, the factory will also be accessible to the farmers. Telangana Today
November 16, 2024
Bright future of oil palm industry in India
The growth performance is visible and there is scope to improve further
The Indian oil palm industry has expanded area coverage under oil palm (OP) cultivation slowly but steadily in the past 34 years by focussing on yield improvement of fresh fruit bunches (FFB) of oil palm, technology improvement and sustainability. OP area grew from 8,585 hectares (ha.) in 1991-92 to four lakh ha. (approximately) till March 2024. This was the conversion from agricultural land growing crops such as paddy, sugarcane, mango, cashew, lemon and tobacco etc. across various States in India. The Hindu Businessline
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EU parliament votes to delay and dilute anti-deforestation rules
In the first vote on environmental matters of its new term, the European parliament agreed on Thursday to delay and water down new rules aiming to ensure that products sold in the European market do not come from deforested land.
Under a regulation adopted in 2023, companies selling products beef, cocoa, coffee, palm-oil, soy, wood, rubber, charcoal and printed paper will have to trace raw materials back to the source to prove they did not cause deforestation, or face fines and possible bans.
The law, a landmark of the European Green Deal, aims to reduce the impact of European consumption worldwide. The UN Food and Agriculture Organisation (FAO) estimates that goods consumed in the EU cause around 10% of global deforestation, with palm oil and soy accounting for two-thirds of this.
The regulation was due to apply from 30 December 2024, but the commission proposed delaying it until end 2025 for large operators and 30 June 2026 for small enterprises, following concerns from non-EU countries, EU governments and traders.
On Thursday, the European parliament accepted the proposal and adopted further changes put forward by the conservative European People’s Party.
These include the controversial creation of a new category of countries posing “no risk” on deforestation in addition to the existing categories of “low”, “standard” and “high” risk. Goods from countries classified as “no risk” would face fewer requirements.
The amendments were passed with the support of the far-right and some
MEPs from the centrist Renew group, including the VVD. Dutch News
--------
NPA welcomes confirmation of 12-month EUDR delay
NPA chief executive Lizzie Wilson urged the UK government to adjust the timetable for the similar UK Forest Risk Commodities regulation accordingly to keep in step with the EU.
The NPA has welcomed confirmation by the European parliament that the EU Deforestation Regulation (EUDR) has been delayed for a year, which will bring some stability to the market for soya.
The European Commission proposed the delay in early October in response to concerns raised by member states, third countries and traders that they would not be able to fully comply with the new rules under the orignal timetable of December 31, 2024.
The European Council of Ministers endorsed the proposal a few weeks later and MEPs have now ratified the 12-month postponement by 371 votes to 240 against and 30 abstentions.
EUDR, adopted by Parliament on 19 April 2023, aims to fight climate change and biodiversity loss by preventing the deforestation related to EU consumption of products, including soya, cattle, cocoa, coffee, palm-oil, wood, rubber, charcoal and printed paper.
The parliament said it had agreed to the delay so that companies can comply with the new regulations, which ensure products sold in the EU are not sourced from deforested land.
Under the new timetable, large operators and traders will have to respect the obligations stemming from this regulation as of December 30, 2025, whereas micro- and small enterprises would have until June 30, 2026.
This additional time will help operators around the world to implement the rules smoothly from the start without undermining the objectives of the law, the parliament said.
NPA chief executive Lizzie Wilson said: “This is the most sensible option available, given that it has become increasingly clear the supply chain is simply not in a position to deliver the requirements of EUDR by the start of next year,” she said.
“This will allow a transitioned introduction and, therefore, time for the supply chain to adjust to the new conditions, the detail of which will require further clarification. NPA
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EUDR Delay: Will the US Be Exempt as a ‘No Risk’ Country?
The implementation of the European Deforestation Regulation (EUDR) has been postponed for twelve months following a decisive vote in the European Parliament, which also introduced nine amendments. Among the most significant is the addition of a “no-risk” country category. The designation aims to simplify compliance for countries with stable forestry practices and minimal deforestation risk. However, critics argue that it undermines the regulation’s climate-saving objectives.
This article explores the EUDR’s critical challenges, their implications, and whether the US could qualify as a “no-risk” category.
Details on EUDR Postponement and Key Amendments
Following a vote, Parliament has confirmed the EUDR implementation delay, granting larger operators until December 30, 2025, and smaller enterprises until June 30, 2026, to achieve compliance. Additionally, the benchmarking system has also been extended to June 30, 2025.
The decision provides more time for EU member states, developing countries, operators, and traders to meet the regulation's due diligence obligations. While many businesses welcomed the delay as a chance to address administrative complexities, environmental groups have expressed concerns, arguing that it weakens the urgency of addressing deforestation.
Reactions to the delay were mixed. Many organizations expressed relief, emphasizing the need to simplify regulatory processes. Conversely, environmental groups spoke out against the delay, labeling it detrimental to climate mitigation efforts.
“No Risk” Designation Explained Resource Wise
Bright future of oil palm industry in India
The growth performance is visible and there is scope to improve further
The Indian oil palm industry has expanded area coverage under oil palm (OP) cultivation slowly but steadily in the past 34 years by focussing on yield improvement of fresh fruit bunches (FFB) of oil palm, technology improvement and sustainability. OP area grew from 8,585 hectares (ha.) in 1991-92 to four lakh ha. (approximately) till March 2024. This was the conversion from agricultural land growing crops such as paddy, sugarcane, mango, cashew, lemon and tobacco etc. across various States in India. The Hindu Businessline
--------
EU parliament votes to delay and dilute anti-deforestation rules
In the first vote on environmental matters of its new term, the European parliament agreed on Thursday to delay and water down new rules aiming to ensure that products sold in the European market do not come from deforested land.
Under a regulation adopted in 2023, companies selling products beef, cocoa, coffee, palm-oil, soy, wood, rubber, charcoal and printed paper will have to trace raw materials back to the source to prove they did not cause deforestation, or face fines and possible bans.
The law, a landmark of the European Green Deal, aims to reduce the impact of European consumption worldwide. The UN Food and Agriculture Organisation (FAO) estimates that goods consumed in the EU cause around 10% of global deforestation, with palm oil and soy accounting for two-thirds of this.
The regulation was due to apply from 30 December 2024, but the commission proposed delaying it until end 2025 for large operators and 30 June 2026 for small enterprises, following concerns from non-EU countries, EU governments and traders.
On Thursday, the European parliament accepted the proposal and adopted further changes put forward by the conservative European People’s Party.
These include the controversial creation of a new category of countries posing “no risk” on deforestation in addition to the existing categories of “low”, “standard” and “high” risk. Goods from countries classified as “no risk” would face fewer requirements.
The amendments were passed with the support of the far-right and some
MEPs from the centrist Renew group, including the VVD. Dutch News
--------
NPA welcomes confirmation of 12-month EUDR delay
NPA chief executive Lizzie Wilson urged the UK government to adjust the timetable for the similar UK Forest Risk Commodities regulation accordingly to keep in step with the EU.
The NPA has welcomed confirmation by the European parliament that the EU Deforestation Regulation (EUDR) has been delayed for a year, which will bring some stability to the market for soya.
The European Commission proposed the delay in early October in response to concerns raised by member states, third countries and traders that they would not be able to fully comply with the new rules under the orignal timetable of December 31, 2024.
The European Council of Ministers endorsed the proposal a few weeks later and MEPs have now ratified the 12-month postponement by 371 votes to 240 against and 30 abstentions.
EUDR, adopted by Parliament on 19 April 2023, aims to fight climate change and biodiversity loss by preventing the deforestation related to EU consumption of products, including soya, cattle, cocoa, coffee, palm-oil, wood, rubber, charcoal and printed paper.
The parliament said it had agreed to the delay so that companies can comply with the new regulations, which ensure products sold in the EU are not sourced from deforested land.
Under the new timetable, large operators and traders will have to respect the obligations stemming from this regulation as of December 30, 2025, whereas micro- and small enterprises would have until June 30, 2026.
This additional time will help operators around the world to implement the rules smoothly from the start without undermining the objectives of the law, the parliament said.
NPA chief executive Lizzie Wilson said: “This is the most sensible option available, given that it has become increasingly clear the supply chain is simply not in a position to deliver the requirements of EUDR by the start of next year,” she said.
“This will allow a transitioned introduction and, therefore, time for the supply chain to adjust to the new conditions, the detail of which will require further clarification. NPA
--------
EUDR Delay: Will the US Be Exempt as a ‘No Risk’ Country?
The implementation of the European Deforestation Regulation (EUDR) has been postponed for twelve months following a decisive vote in the European Parliament, which also introduced nine amendments. Among the most significant is the addition of a “no-risk” country category. The designation aims to simplify compliance for countries with stable forestry practices and minimal deforestation risk. However, critics argue that it undermines the regulation’s climate-saving objectives.
This article explores the EUDR’s critical challenges, their implications, and whether the US could qualify as a “no-risk” category.
Details on EUDR Postponement and Key Amendments
Following a vote, Parliament has confirmed the EUDR implementation delay, granting larger operators until December 30, 2025, and smaller enterprises until June 30, 2026, to achieve compliance. Additionally, the benchmarking system has also been extended to June 30, 2025.
The decision provides more time for EU member states, developing countries, operators, and traders to meet the regulation's due diligence obligations. While many businesses welcomed the delay as a chance to address administrative complexities, environmental groups have expressed concerns, arguing that it weakens the urgency of addressing deforestation.
Reactions to the delay were mixed. Many organizations expressed relief, emphasizing the need to simplify regulatory processes. Conversely, environmental groups spoke out against the delay, labeling it detrimental to climate mitigation efforts.
“No Risk” Designation Explained Resource Wise
November 15, 2024
The EUDR Postponement is Official: Vesper Tackles Transparency Issues with a a range of Forward Price Benchmarks For Crude Palm Oil (CIF Rotterdam)
The European Commission has officially announced the postponement of the enforcement of its EU Deforestation-free Regulation (EUDR), originally slated for the end 2024. This decision follows concerns from EU member states, non-EU countries, and industry stakeholders about the feasibility of meeting the original 2024 deadline. Large companies now have until 30 December 2025, while small and micro-enterprises will have an extended deadline until 30 June 2026.
In addition to the postponement, Members of the European Parliament have introduced a “no-risk” category for countries with stable or increasing forest areas. Commodities from these countries would be subject to reduced checks under the EUDR. The specific countries that will be classified as “no-risk” and qualify for reduced checks under the EUDR are still unknown. This amendment has sparked controversy, with critics arguing that it could undermine the regulation’s effectiveness by creating potential loopholes.
To support compliance efforts, the European Commission published detailed EUDR guidelines in October. While these guidelines are comprehensive, they may still be subject to updates as the market evolves. You can access the guidance in full here.
While the guidance offers clarity on compliance requirements, the market continues to face challenges regarding price transparency. There is significant variation in pricing for EUDR-compliant palm oil, with limited transparency in the breakdown of associated costs.
Several prominent players in the market are already committing to EUDR-compliant components, despite the enforcement delay, however, the lack of transparency creates uncertainty for buyers attempting to understand the pricing landscape.
Vesper’s Forward Palm Oil Benchmarks for the EU: Bridging the Transparency Gap
To address this issue, Vesper has introduced benchmarks that provide market participants with consistent and transparent pricing data. By offering daily updates of a range of Forward prices, Vesper enables businesses to choose the pricing structure that best suits their needs. These options include:
Palm Oil, Crude – CIF Rotterdam (paper market)
CPO, RSPO SG Low Moah, CIF Rotterdam
CPO, RSPO SG Low Moah (EUDR compliant), CIF Rotterdam
Access Vesper’s Pricing Data
Interested in these pricing options and their calculation across different countries? Schedule a meeting with one of our commodity experts. Our team will guide you through the methodologies and provide access to real-time pricing information, ensuring you stay ahead of regulatory changes and market trends. Vespertool
--------
Malaysian Palm Oil Council Welcomes EU’s EUDR Delay, Calls For Cooperation
The Malaysian Palm Oil Council (MPOC) has welcomed the European Union’s decision to postpone its Regulation on Deforestation-free Products (EUDR) by 12 months and is calling on the EU to collaborate with Malaysia to ensure smallholder farmers continue to access international supply chains.
The EUDR, which was set to come into full effect on Dec 30 2024, requires companies to ensure that products sold in the EU are not sourced from deforested or degraded land. However, the European Parliament voted to delay the legislation and introduce a four-tier classification system for countries based on risk levels.
MPOC Chief Executive Officer, Belvinder Sron expressed concern over the introduction of a ‘no risk’ category in the classification system, fearing it could lead to protectionist policies that disadvantage international trade partners while benefiting domestic companies.
She said, “A two-tiered approach to regulation – protecting European companies while penalising their international trade partners – would send the wrong message to the world, given that countries like Malaysia have worked so hard to comply with EUDR.”
Sron also urged the EU to recognise Malaysia’s Malaysian Sustainable Palm Oil (MSPO) certification scheme as an effective compliance tool. “We believe that MSPO, with its rigorous standards and broad application, should be accepted as a key compliance tool for EUDR,” she added.
The MSPO, an independently audited standard for sustainable palm oil production, has played a significant role in reducing deforestation in Malaysia’s palm oil industry, which has seen a 57% reduction in primary forest loss since 2022, according to the World Resources Institute’s Global Forest Watch.
Sron commented, “The decline in deforestation reflects Malaysia’s decision to refrain from expanding into new areas to prioritise environmental concerns. This further strengthens Malaysia’s position as a low-risk country under the EUDR’s unilaterally imposed benchmarking system.”
Sron emphasised that Malaysia’s commitment to sustainable practices, including refraining from expanding into new areas, strengthens the country’s position under the EUDR’s risk categories. She also pointed to the success of the MSPO certification, which now covers over 80% of the industry and supports more than 450,000 smallholders.
She concluded, “As we strive for greater sustainability, transparency and accountability, all we ask of the EU is for greater cooperation and an open trading relationship. If EUDR is enforced incorrectly, environmental progress will be set back, destroying livelihoods, increasing poverty, raising costs for consumers and undermining the progress we have made in complying with EUDR.” Business Today
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MPOB: US trade policy changes to have minimal impact on palm oil sector
BANGI (Nov 14): Projected changes in the United States' (US) trade policy are not expected to significantly impact the country's palm oil sector following Donald Trump's victory in the recent US presidential election, the Malaysian Palm Oil Board (MPOB) said on Thursday.
MPOB director-general Datuk Ahmad Parveez Ghulam Kadir said it was too early to determine the new policies Trump would implement, although tariff changes were a common occurrence in the palm oil sector.
"For example, India recently raised the import duty by 20% on food products such as palm oil. If tariffs increase, the negative impact will be more pronounced in the importing country, as there are few alternatives to palm oil, other than domestically produced oils like soybeans.
"Palm oil entering markets like the US is primarily for industrial use, where it cannot be replaced by soybean oil. If tariffs increase, palm oil exports to the US will decline, leading to higher costs for their consumers," he added.
Ahmad Parveez made these remarks following the signing ceremony of a palm-based transformer oil commercialisation agreement between MPOB and Glide Technology Sdn Bhd here on Thursday.
Earlier, Ahmad Parveez explained that MPOB's research in various aspects of palm oil had led to the development of palm-based transformer oil, which is used in electrical substations.
He highlighted that, in addition to being environmentally friendly, the palm-based oil meets the specifications set by the International Electrotechnical Commission and boasts a higher flash and fire point than petroleum-based transformer oil. The Edge Malaysia
--------
EU deforestation ban in chaos as parliament loosens rules
The European Parliament on Thursday approved a one-year delay on implementing the bloc's sweeping anti-deforestation rules but also voted to loosen some requirements—raising fresh uncertainty over the landmark law.
The move triggered an outcry from environmental groups, which accused lawmakers of adding loopholes to a bill hailed as a major breakthrough in the fight to protect nature and combat climate change.
"It's a dark day for Europe's environmental credentials," said Julian Oram, policy director at advocacy group Mighty Earth. Global Witness said lawmakers had taken a "chainsaw" to the deforestation ban.
Parliament was called to sign off on a delay requested by the European Commission following pressure from trading partners such as Brazil and the United States, and some member states including Germany.
But lawmakers on the right used the vote to bring new amendments, passed with support from both right-wing and far-right groups.
Centrist lawmaker Yvan Verougstraete said the amendments had emptied the bill of its substance and could for instance see China—a major contributor to global deforestation—relieved of "all obligations".
Environmentalists said the changes would amount to exempting some EU nations entirely from the scope of the law.
The amendments de facto restart the legislative process, as the new text needs to be re-discussed by the commission and member states.
But environmental groups are calling on the former to pull the plug on the process by withdrawing its initial postponement request. Phys Org
--------
Indonesian Palm Oil Association raises concerns with B50 programme amid stagnant production
The Indonesian Palm Oil Association (GAPKI) has raised concerns over challenges facing the palm oil industries following the government’s plans to increase the country’s palm oil-based biodiesel mandate to 50% (B50).
Implementing the B50 programme had the potential to reduce palm oil exports by up to 6M tonnes, which would lead to a slowdown in the drive to increase production, GAPKI Chairman Eddy Martono said during a press conference on 30 October in Jakarta, Indonesia.
Exports are an important way for the palm oil industry to raise funds through export levies, which are collected by the oil palm plantation fund management board (BPDPKS) and are used as the main source of funding for important programmes, including replanting programmes of smallholders’ palm plantations, according to GAPKI.
“The government can no longer delay the acceleration of [the] replanting programme because palm oil production has been continually declining. This year alone until August (2024), production of CPO [crude palm oil] dropped by 4.86% to 36.27M tonnes compared to last year,” Martono said.
“In the meantime, domestic consumption has been continually rising, reaching 15.57M tonnes until August 2024, or an increase of 1.94% from last year.”
With current levels of production, Martono said a decrease in palm oil exports would affect B50 implementation, which was heavily dependent on funding via export levies.
In an earlier announcement, Agriculture Minister Andi Amran Sulaiman said that he hoped the B50 programme could be started in 2026.
Sulaiman said he was confident domestic CPO production, which totalled 46M tonnes at the time of the report, would be sufficient to supply the 5.3M tonnes of feedstock needed for B50 production.
Remaining palm oil output would be used to meet domestic need and exports, he added. OFI Magazine
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Palm oil mission: Driving health and employment in rural India
Palm oil is also a highly productive crop, giving farmers a reliable source of income, yielding 4-5 tons of oil per hectare per year, which is higher than any other vegetable oil crop. It needs less water than sugarcane and rice while using fewer fertilisers, pesticides and energy.
In what is a significant move, the Union Cabinet approved on 3rd October 2024 its National Mission on Edible Oils-Oilseeds (NMEO-Oilseeds) to increase domestic oilseed production and achieve self-sufficiency in edible oils. With an allocated budget of Rs 10,103 crore, the initiative will span from 2024-25 to 2030-31 and aim to increase primary oilseed production to 69.7 million tonnes by 2030-31 from 39 million tonnes in 2022-23.
It was followed by Prime Minister Narendra Modi’s tweet, “The Cabinet’s approval for a National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds) is a major step towards Atmanirbharta. This mission will boost domestic oilseed production, support hardworking farmers and encourage sustainable agricultural practices.”
The development has massive scope for rural employment and rural development. In 2021, the National Edible Oil Mission-Oil Palm (NMEO-OP) scheme, announced by the Prime Minister, set a roadmap to achieve “Atmanirbharta” or self-reliance, while meeting the food security needs of a population of 1.3 billion and empowering farmers in the country. As the world’s most popular and versatile vegetable oil, palm oil contributes to nearly 38% of our edible oil consumption. Around 9 million tonnes of palm oil is imported every year which is around 56% of the total imports of edible oil. Besides being used as a cooking oil, palm oil has edible and non-edible uses, from chocolates to cooking oil to shampoos, cosmetics and pharmaceuticals, as well as biofuel.
Palm oil is also a highly productive crop, giving farmers a reliable source of income, yielding 4-5 tons of oil per hectare per year, which is higher than any other vegetable oil crop. It needs less water than sugarcane and rice while using fewer fertilisers, pesticides and energy. Globally, palm oil supplies between 35% and 40% of the world’s vegetable oil demand on just under 8.6% of the land used to produce all vegetable oils. If one were to switch to alternatives like soybean, olive, or rapeseed oil, it would lead to everyday items becoming significantly more expensive.
In terms of everyday consumption, palm oil scores highly in terms of nutritional benefits, especially in developing countries like India where it can help people with a deficiency in Vitamin A, which can affect vision, the immune system and bone health.
According to numerous studies, red palm oil is said to contain 15 times more retinol (provitamin A) equivalents than carrots, 300 times more than tomatoes, and 44 times more than leafy vegetables. Palm oil is a treasure trove of potent antioxidants known as tocols, a family of vitamin E antioxidants that come in two main varieties: the more common tocopherols and the rarer tocotrienols, which packs an extra punch. In contrast, other commonly used dietary vegetable oils, including corn, olive, peanut, sesame, soybean, and sunflower, contain tocopherols exclusively. The Dietary Guidelines for Indians-2024 issued by the Indian Council of Medical Research (ICMR) and National Institute of Nutrition (NIN), has also recognised that “tocotrienols in palm oil, for instance, reduce blood cholesterol.”
To support farmers, the government has permitted 100% FDI in plantations, alongside pledging massive financial aid in coming years, incentivising palm oil production and increasing acreage. State governments have also involved private entrepreneurs in developing oil palm seedlings, nurseries and processing mills in their regions.
The strategy to implement NMEO-OP will include increasing the production of seedlings by establishing seed gardens and nurseries of oil palm to ensure the domestic availability of seedlings. Meanwhile, increasing drip irrigation coverage, diversification from low-yielding cereal crops to oil palm, and intercropping during the gestation period of four years, will provide financial returns to farmers when there is no production. More Rural Voice India
The EUDR Postponement is Official: Vesper Tackles Transparency Issues with a a range of Forward Price Benchmarks For Crude Palm Oil (CIF Rotterdam)
The European Commission has officially announced the postponement of the enforcement of its EU Deforestation-free Regulation (EUDR), originally slated for the end 2024. This decision follows concerns from EU member states, non-EU countries, and industry stakeholders about the feasibility of meeting the original 2024 deadline. Large companies now have until 30 December 2025, while small and micro-enterprises will have an extended deadline until 30 June 2026.
In addition to the postponement, Members of the European Parliament have introduced a “no-risk” category for countries with stable or increasing forest areas. Commodities from these countries would be subject to reduced checks under the EUDR. The specific countries that will be classified as “no-risk” and qualify for reduced checks under the EUDR are still unknown. This amendment has sparked controversy, with critics arguing that it could undermine the regulation’s effectiveness by creating potential loopholes.
To support compliance efforts, the European Commission published detailed EUDR guidelines in October. While these guidelines are comprehensive, they may still be subject to updates as the market evolves. You can access the guidance in full here.
While the guidance offers clarity on compliance requirements, the market continues to face challenges regarding price transparency. There is significant variation in pricing for EUDR-compliant palm oil, with limited transparency in the breakdown of associated costs.
Several prominent players in the market are already committing to EUDR-compliant components, despite the enforcement delay, however, the lack of transparency creates uncertainty for buyers attempting to understand the pricing landscape.
Vesper’s Forward Palm Oil Benchmarks for the EU: Bridging the Transparency Gap
To address this issue, Vesper has introduced benchmarks that provide market participants with consistent and transparent pricing data. By offering daily updates of a range of Forward prices, Vesper enables businesses to choose the pricing structure that best suits their needs. These options include:
Palm Oil, Crude – CIF Rotterdam (paper market)
CPO, RSPO SG Low Moah, CIF Rotterdam
CPO, RSPO SG Low Moah (EUDR compliant), CIF Rotterdam
Access Vesper’s Pricing Data
Interested in these pricing options and their calculation across different countries? Schedule a meeting with one of our commodity experts. Our team will guide you through the methodologies and provide access to real-time pricing information, ensuring you stay ahead of regulatory changes and market trends. Vespertool
--------
Malaysian Palm Oil Council Welcomes EU’s EUDR Delay, Calls For Cooperation
The Malaysian Palm Oil Council (MPOC) has welcomed the European Union’s decision to postpone its Regulation on Deforestation-free Products (EUDR) by 12 months and is calling on the EU to collaborate with Malaysia to ensure smallholder farmers continue to access international supply chains.
The EUDR, which was set to come into full effect on Dec 30 2024, requires companies to ensure that products sold in the EU are not sourced from deforested or degraded land. However, the European Parliament voted to delay the legislation and introduce a four-tier classification system for countries based on risk levels.
MPOC Chief Executive Officer, Belvinder Sron expressed concern over the introduction of a ‘no risk’ category in the classification system, fearing it could lead to protectionist policies that disadvantage international trade partners while benefiting domestic companies.
She said, “A two-tiered approach to regulation – protecting European companies while penalising their international trade partners – would send the wrong message to the world, given that countries like Malaysia have worked so hard to comply with EUDR.”
Sron also urged the EU to recognise Malaysia’s Malaysian Sustainable Palm Oil (MSPO) certification scheme as an effective compliance tool. “We believe that MSPO, with its rigorous standards and broad application, should be accepted as a key compliance tool for EUDR,” she added.
The MSPO, an independently audited standard for sustainable palm oil production, has played a significant role in reducing deforestation in Malaysia’s palm oil industry, which has seen a 57% reduction in primary forest loss since 2022, according to the World Resources Institute’s Global Forest Watch.
Sron commented, “The decline in deforestation reflects Malaysia’s decision to refrain from expanding into new areas to prioritise environmental concerns. This further strengthens Malaysia’s position as a low-risk country under the EUDR’s unilaterally imposed benchmarking system.”
Sron emphasised that Malaysia’s commitment to sustainable practices, including refraining from expanding into new areas, strengthens the country’s position under the EUDR’s risk categories. She also pointed to the success of the MSPO certification, which now covers over 80% of the industry and supports more than 450,000 smallholders.
She concluded, “As we strive for greater sustainability, transparency and accountability, all we ask of the EU is for greater cooperation and an open trading relationship. If EUDR is enforced incorrectly, environmental progress will be set back, destroying livelihoods, increasing poverty, raising costs for consumers and undermining the progress we have made in complying with EUDR.” Business Today
--------
MPOB: US trade policy changes to have minimal impact on palm oil sector
BANGI (Nov 14): Projected changes in the United States' (US) trade policy are not expected to significantly impact the country's palm oil sector following Donald Trump's victory in the recent US presidential election, the Malaysian Palm Oil Board (MPOB) said on Thursday.
MPOB director-general Datuk Ahmad Parveez Ghulam Kadir said it was too early to determine the new policies Trump would implement, although tariff changes were a common occurrence in the palm oil sector.
"For example, India recently raised the import duty by 20% on food products such as palm oil. If tariffs increase, the negative impact will be more pronounced in the importing country, as there are few alternatives to palm oil, other than domestically produced oils like soybeans.
"Palm oil entering markets like the US is primarily for industrial use, where it cannot be replaced by soybean oil. If tariffs increase, palm oil exports to the US will decline, leading to higher costs for their consumers," he added.
Ahmad Parveez made these remarks following the signing ceremony of a palm-based transformer oil commercialisation agreement between MPOB and Glide Technology Sdn Bhd here on Thursday.
Earlier, Ahmad Parveez explained that MPOB's research in various aspects of palm oil had led to the development of palm-based transformer oil, which is used in electrical substations.
He highlighted that, in addition to being environmentally friendly, the palm-based oil meets the specifications set by the International Electrotechnical Commission and boasts a higher flash and fire point than petroleum-based transformer oil. The Edge Malaysia
--------
EU deforestation ban in chaos as parliament loosens rules
The European Parliament on Thursday approved a one-year delay on implementing the bloc's sweeping anti-deforestation rules but also voted to loosen some requirements—raising fresh uncertainty over the landmark law.
The move triggered an outcry from environmental groups, which accused lawmakers of adding loopholes to a bill hailed as a major breakthrough in the fight to protect nature and combat climate change.
"It's a dark day for Europe's environmental credentials," said Julian Oram, policy director at advocacy group Mighty Earth. Global Witness said lawmakers had taken a "chainsaw" to the deforestation ban.
Parliament was called to sign off on a delay requested by the European Commission following pressure from trading partners such as Brazil and the United States, and some member states including Germany.
But lawmakers on the right used the vote to bring new amendments, passed with support from both right-wing and far-right groups.
Centrist lawmaker Yvan Verougstraete said the amendments had emptied the bill of its substance and could for instance see China—a major contributor to global deforestation—relieved of "all obligations".
Environmentalists said the changes would amount to exempting some EU nations entirely from the scope of the law.
The amendments de facto restart the legislative process, as the new text needs to be re-discussed by the commission and member states.
But environmental groups are calling on the former to pull the plug on the process by withdrawing its initial postponement request. Phys Org
--------
Indonesian Palm Oil Association raises concerns with B50 programme amid stagnant production
The Indonesian Palm Oil Association (GAPKI) has raised concerns over challenges facing the palm oil industries following the government’s plans to increase the country’s palm oil-based biodiesel mandate to 50% (B50).
Implementing the B50 programme had the potential to reduce palm oil exports by up to 6M tonnes, which would lead to a slowdown in the drive to increase production, GAPKI Chairman Eddy Martono said during a press conference on 30 October in Jakarta, Indonesia.
Exports are an important way for the palm oil industry to raise funds through export levies, which are collected by the oil palm plantation fund management board (BPDPKS) and are used as the main source of funding for important programmes, including replanting programmes of smallholders’ palm plantations, according to GAPKI.
“The government can no longer delay the acceleration of [the] replanting programme because palm oil production has been continually declining. This year alone until August (2024), production of CPO [crude palm oil] dropped by 4.86% to 36.27M tonnes compared to last year,” Martono said.
“In the meantime, domestic consumption has been continually rising, reaching 15.57M tonnes until August 2024, or an increase of 1.94% from last year.”
With current levels of production, Martono said a decrease in palm oil exports would affect B50 implementation, which was heavily dependent on funding via export levies.
In an earlier announcement, Agriculture Minister Andi Amran Sulaiman said that he hoped the B50 programme could be started in 2026.
Sulaiman said he was confident domestic CPO production, which totalled 46M tonnes at the time of the report, would be sufficient to supply the 5.3M tonnes of feedstock needed for B50 production.
Remaining palm oil output would be used to meet domestic need and exports, he added. OFI Magazine
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Palm oil mission: Driving health and employment in rural India
Palm oil is also a highly productive crop, giving farmers a reliable source of income, yielding 4-5 tons of oil per hectare per year, which is higher than any other vegetable oil crop. It needs less water than sugarcane and rice while using fewer fertilisers, pesticides and energy.
In what is a significant move, the Union Cabinet approved on 3rd October 2024 its National Mission on Edible Oils-Oilseeds (NMEO-Oilseeds) to increase domestic oilseed production and achieve self-sufficiency in edible oils. With an allocated budget of Rs 10,103 crore, the initiative will span from 2024-25 to 2030-31 and aim to increase primary oilseed production to 69.7 million tonnes by 2030-31 from 39 million tonnes in 2022-23.
It was followed by Prime Minister Narendra Modi’s tweet, “The Cabinet’s approval for a National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds) is a major step towards Atmanirbharta. This mission will boost domestic oilseed production, support hardworking farmers and encourage sustainable agricultural practices.”
The development has massive scope for rural employment and rural development. In 2021, the National Edible Oil Mission-Oil Palm (NMEO-OP) scheme, announced by the Prime Minister, set a roadmap to achieve “Atmanirbharta” or self-reliance, while meeting the food security needs of a population of 1.3 billion and empowering farmers in the country. As the world’s most popular and versatile vegetable oil, palm oil contributes to nearly 38% of our edible oil consumption. Around 9 million tonnes of palm oil is imported every year which is around 56% of the total imports of edible oil. Besides being used as a cooking oil, palm oil has edible and non-edible uses, from chocolates to cooking oil to shampoos, cosmetics and pharmaceuticals, as well as biofuel.
Palm oil is also a highly productive crop, giving farmers a reliable source of income, yielding 4-5 tons of oil per hectare per year, which is higher than any other vegetable oil crop. It needs less water than sugarcane and rice while using fewer fertilisers, pesticides and energy. Globally, palm oil supplies between 35% and 40% of the world’s vegetable oil demand on just under 8.6% of the land used to produce all vegetable oils. If one were to switch to alternatives like soybean, olive, or rapeseed oil, it would lead to everyday items becoming significantly more expensive.
In terms of everyday consumption, palm oil scores highly in terms of nutritional benefits, especially in developing countries like India where it can help people with a deficiency in Vitamin A, which can affect vision, the immune system and bone health.
According to numerous studies, red palm oil is said to contain 15 times more retinol (provitamin A) equivalents than carrots, 300 times more than tomatoes, and 44 times more than leafy vegetables. Palm oil is a treasure trove of potent antioxidants known as tocols, a family of vitamin E antioxidants that come in two main varieties: the more common tocopherols and the rarer tocotrienols, which packs an extra punch. In contrast, other commonly used dietary vegetable oils, including corn, olive, peanut, sesame, soybean, and sunflower, contain tocopherols exclusively. The Dietary Guidelines for Indians-2024 issued by the Indian Council of Medical Research (ICMR) and National Institute of Nutrition (NIN), has also recognised that “tocotrienols in palm oil, for instance, reduce blood cholesterol.”
To support farmers, the government has permitted 100% FDI in plantations, alongside pledging massive financial aid in coming years, incentivising palm oil production and increasing acreage. State governments have also involved private entrepreneurs in developing oil palm seedlings, nurseries and processing mills in their regions.
The strategy to implement NMEO-OP will include increasing the production of seedlings by establishing seed gardens and nurseries of oil palm to ensure the domestic availability of seedlings. Meanwhile, increasing drip irrigation coverage, diversification from low-yielding cereal crops to oil palm, and intercropping during the gestation period of four years, will provide financial returns to farmers when there is no production. More Rural Voice India
November 14, 2024
(Opinion) EU Parliament votes to dramatically weaken landmark forest law
Today the EU Parliament approved a package of amendments to weaken the landmark EU Deforestation-Free Products Regulation (EUDR), which is intended to prevent European consumption from driving deforestation and associated illegalities across the world.
The amendments, proposed by the conservative European People’s Party (EPP), carve out exemptions from the law for products from countries designated ‘no-risk.’ The law’s implementation will also be delayed by 12 months.
Earthsight’s Policy lead Fyfe Strachan said: “The EUDR has suffered a massive blow today. The EPP’s introduction of a new loophole for products from ‘no-risk’ countries is a wolf in sheep’s clothing. The EPP claims it just wants to cut red tape, but in reality this move undermines the integrity of the law and will make it dramatically harder to enforce.
These poorly drafted amendments will exempt products from ‘no-risk’ countries from many of the law’s requirements. The criteria for determining which countries are ‘no-risk’ are arbitrary and seem designed to pander to Europe’s agriculture and forestry lobbies. More than this, the amendments create a dangerous loophole that could open the floodgates for products produced in high-risk countries to be laundered through no-risk countries.
Just this week, new Earthsight research revealed connections between political donors to EPP member parties in Germany and Austria and illegal deforestation. The EPP’s amendments are likely to benefit its political donors, but will harm the world’s forests.
It remains disappointing that the EU has decided to push back the start of the law by one year. The deforestation impacts of this delay would be equivalent to the emissions of 18 million cars.
The Commission must act swiftly and withdraw its initial proposal. The amendments cannot be allowed to stand. If they do, Europe's standing in global efforts to combat deforestation will be in tatters.” Earthsight
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RSPO Members Adopt the 2024 Principles and Criteria and Independent Smallholder Standard
Following an extensive and thorough revision process, the revised RSPO Standards have been officially adopted by RSPO Members at the 21st RSPO General Assembly (GA21) in Bangkok, Thailand.
BANGKOK, Nov. 14, 2024 /PRNewswire/ -- Following the annual Roundtable Conference on Sustainable Palm Oil (RT2024), RSPO Members voted to adopt the 2024 RSPO Principles and Criteria (P&C) and Independent Smallholder (ISH) Standard during the 21st RSPO General Assembly (GA21). The adoption marks a new chapter in realising the global partnership's vision to make palm oil sustainable, as the RSPO Standards outline the aims and mandatory requirements for the sustainable production and procurement of RSPO Certified sustainable palm oil.
Ensuring no diminution of the RSPO Principles and Criteria (P&C) 2018 and the 2019 RSPO Independent Smallholder (ISH) Standard, the 2024 RSPO Standards are an iterative evolution of the requirements for greater clarity, auditability, implementability and market relevance. The revised standards will be effective 12 months after adoption, following a 12-month transition period.
Additionally, the 2024 Standards have been strengthened in its integration with the RSPO certification system through prisma, RSPO's new system providing digital data and digital supply chain traceability that serves as a supporting tool for members to strengthen risk assessment and due diligence for emerging regulatory compliance.
Key improvements of the 2024 RSPO Standards include:
Refining the Approach to Deforestation and Environmental Sustainability: Central to this revision is the improvement of the implementation of the Integrated High Conservation Value-High Carbon Stock (HCV-HCS) approach. A reformulated framework of indicators enhances implementation clarity of the protection of critical ecosystems, ensuring that land clearing is conducted responsibly. Moreover, a new indicator on water consumption and withdrawal was introduced, to address potential future water scarcity issues.
Introduction of Human Rights Due Diligence: Companies are required to conduct human rights due diligence to identify existing and potential human rights impacts in their operations and their direct suppliers and to develop an action plan to address them.
Strengthening smallholder inclusion: The Independent Smallholder (ISH) Standard has been enhanced for stronger clarity across all indicators to strengthen smallholder inclusion in physical supply chains, enabling better access to certification and new markets.
Enhanced Auditability and Implementability: A clear roadmap was outlined to balance environmental conservation, responsible labour practices, and the rights of communities. With a clearer, more auditable, and more implementable approach, it streamlines the audit process for members, Certification Bodies, and Accreditation Bodies, and this would strengthen assurance.
Inclusive revision process
"True to the spirit of a roundtable, the RSPO Standards revision process counted on the insights of smallholders, social and environmental NGOs, auditors, and experts from Africa, Latin America, Southeast Asia, and India, over a two-year period," said Joseph D'Cruz, RSPO Chief Executive Officer. "I welcome the adoption of the 2024 Standards by the RSPO membership, who have exceeded expectations in delivering stronger standards that are more ambitious, clearer, and rigorously address the challenges of our times—from protecting workers to combating deforestation.
Ruth Silva, Assurance Director, HCV Network, said, "The focus on the grower has been a critical addition to the Standards, not just to the indicators and criteria related to the HCV approach, the protection of HCVs, or achieving no deforestation. Grouping together all indicators related to management and monitoring gives a better, holistic look at implementation, which will make it easier for the grower as well as for the auditors to do verification." PR Newswire
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RSPO standards updated: What are the changes and do they align with EUDR?
13-Nov-2024 By Augustus Bambridge-Sutton
The RSPO’s standards on sustainable palm oil certification have been approved. Do they align with Europe’s upcoming regulation? Food Navigator
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Compare EU and RI On Peatland Conservation
November 13, 2024Myths & Facts, Publication, Recent News
JAKARTA – Another myth often voiced by certain groups of green NGOs is concerned with peatland. They said that unlike member countries of European Union (EU) which have preserved their peatlands, Indonesia has destroyed its peatlands.
The use of peatlands in Europe has been going on since the beginning of civilization, both for agriculture and other economic activities, including the use of peat as energy. The Fuel Peat Industry in EU report (VTT, 2005) shows that peatlands in Europe have been used for agriculture (horticulture) and energy (Table 1).
The World Energy Council reported in 2013 that Europe was the world’s largest consumer and producer of peat fuel. Currently, there are at least 117 power plants generated with peat energy and 651 peat energy producing companies spread across Finland, Ireland, Sweden, Estonia, Latvia, Lithuania and other European countries. The companies use peat to produce 1.65 million Ktoe of fuel which can meet the energy needs of 1.96 million people.
The peat dredging activities have resulted in the loss of European peatlands with an area of around 10.73 million hectares (International Mire Conservation Group and International Peat Society, 2002; Wetland International, 2010). The largest peatland loss in Europe (Table 4) was seen in Russia at around 4.36 million hectares, followed by Finland at 1.65 million hectares and the Netherlands at 1.15 million hectares. GAPKI
(Opinion) EU Parliament votes to dramatically weaken landmark forest law
Today the EU Parliament approved a package of amendments to weaken the landmark EU Deforestation-Free Products Regulation (EUDR), which is intended to prevent European consumption from driving deforestation and associated illegalities across the world.
The amendments, proposed by the conservative European People’s Party (EPP), carve out exemptions from the law for products from countries designated ‘no-risk.’ The law’s implementation will also be delayed by 12 months.
Earthsight’s Policy lead Fyfe Strachan said: “The EUDR has suffered a massive blow today. The EPP’s introduction of a new loophole for products from ‘no-risk’ countries is a wolf in sheep’s clothing. The EPP claims it just wants to cut red tape, but in reality this move undermines the integrity of the law and will make it dramatically harder to enforce.
These poorly drafted amendments will exempt products from ‘no-risk’ countries from many of the law’s requirements. The criteria for determining which countries are ‘no-risk’ are arbitrary and seem designed to pander to Europe’s agriculture and forestry lobbies. More than this, the amendments create a dangerous loophole that could open the floodgates for products produced in high-risk countries to be laundered through no-risk countries.
Just this week, new Earthsight research revealed connections between political donors to EPP member parties in Germany and Austria and illegal deforestation. The EPP’s amendments are likely to benefit its political donors, but will harm the world’s forests.
It remains disappointing that the EU has decided to push back the start of the law by one year. The deforestation impacts of this delay would be equivalent to the emissions of 18 million cars.
The Commission must act swiftly and withdraw its initial proposal. The amendments cannot be allowed to stand. If they do, Europe's standing in global efforts to combat deforestation will be in tatters.” Earthsight
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RSPO Members Adopt the 2024 Principles and Criteria and Independent Smallholder Standard
Following an extensive and thorough revision process, the revised RSPO Standards have been officially adopted by RSPO Members at the 21st RSPO General Assembly (GA21) in Bangkok, Thailand.
BANGKOK, Nov. 14, 2024 /PRNewswire/ -- Following the annual Roundtable Conference on Sustainable Palm Oil (RT2024), RSPO Members voted to adopt the 2024 RSPO Principles and Criteria (P&C) and Independent Smallholder (ISH) Standard during the 21st RSPO General Assembly (GA21). The adoption marks a new chapter in realising the global partnership's vision to make palm oil sustainable, as the RSPO Standards outline the aims and mandatory requirements for the sustainable production and procurement of RSPO Certified sustainable palm oil.
Ensuring no diminution of the RSPO Principles and Criteria (P&C) 2018 and the 2019 RSPO Independent Smallholder (ISH) Standard, the 2024 RSPO Standards are an iterative evolution of the requirements for greater clarity, auditability, implementability and market relevance. The revised standards will be effective 12 months after adoption, following a 12-month transition period.
Additionally, the 2024 Standards have been strengthened in its integration with the RSPO certification system through prisma, RSPO's new system providing digital data and digital supply chain traceability that serves as a supporting tool for members to strengthen risk assessment and due diligence for emerging regulatory compliance.
Key improvements of the 2024 RSPO Standards include:
Refining the Approach to Deforestation and Environmental Sustainability: Central to this revision is the improvement of the implementation of the Integrated High Conservation Value-High Carbon Stock (HCV-HCS) approach. A reformulated framework of indicators enhances implementation clarity of the protection of critical ecosystems, ensuring that land clearing is conducted responsibly. Moreover, a new indicator on water consumption and withdrawal was introduced, to address potential future water scarcity issues.
Introduction of Human Rights Due Diligence: Companies are required to conduct human rights due diligence to identify existing and potential human rights impacts in their operations and their direct suppliers and to develop an action plan to address them.
Strengthening smallholder inclusion: The Independent Smallholder (ISH) Standard has been enhanced for stronger clarity across all indicators to strengthen smallholder inclusion in physical supply chains, enabling better access to certification and new markets.
Enhanced Auditability and Implementability: A clear roadmap was outlined to balance environmental conservation, responsible labour practices, and the rights of communities. With a clearer, more auditable, and more implementable approach, it streamlines the audit process for members, Certification Bodies, and Accreditation Bodies, and this would strengthen assurance.
Inclusive revision process
"True to the spirit of a roundtable, the RSPO Standards revision process counted on the insights of smallholders, social and environmental NGOs, auditors, and experts from Africa, Latin America, Southeast Asia, and India, over a two-year period," said Joseph D'Cruz, RSPO Chief Executive Officer. "I welcome the adoption of the 2024 Standards by the RSPO membership, who have exceeded expectations in delivering stronger standards that are more ambitious, clearer, and rigorously address the challenges of our times—from protecting workers to combating deforestation.
Ruth Silva, Assurance Director, HCV Network, said, "The focus on the grower has been a critical addition to the Standards, not just to the indicators and criteria related to the HCV approach, the protection of HCVs, or achieving no deforestation. Grouping together all indicators related to management and monitoring gives a better, holistic look at implementation, which will make it easier for the grower as well as for the auditors to do verification." PR Newswire
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RSPO standards updated: What are the changes and do they align with EUDR?
13-Nov-2024 By Augustus Bambridge-Sutton
The RSPO’s standards on sustainable palm oil certification have been approved. Do they align with Europe’s upcoming regulation? Food Navigator
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Compare EU and RI On Peatland Conservation
November 13, 2024Myths & Facts, Publication, Recent News
JAKARTA – Another myth often voiced by certain groups of green NGOs is concerned with peatland. They said that unlike member countries of European Union (EU) which have preserved their peatlands, Indonesia has destroyed its peatlands.
The use of peatlands in Europe has been going on since the beginning of civilization, both for agriculture and other economic activities, including the use of peat as energy. The Fuel Peat Industry in EU report (VTT, 2005) shows that peatlands in Europe have been used for agriculture (horticulture) and energy (Table 1).
The World Energy Council reported in 2013 that Europe was the world’s largest consumer and producer of peat fuel. Currently, there are at least 117 power plants generated with peat energy and 651 peat energy producing companies spread across Finland, Ireland, Sweden, Estonia, Latvia, Lithuania and other European countries. The companies use peat to produce 1.65 million Ktoe of fuel which can meet the energy needs of 1.96 million people.
The peat dredging activities have resulted in the loss of European peatlands with an area of around 10.73 million hectares (International Mire Conservation Group and International Peat Society, 2002; Wetland International, 2010). The largest peatland loss in Europe (Table 4) was seen in Russia at around 4.36 million hectares, followed by Finland at 1.65 million hectares and the Netherlands at 1.15 million hectares. GAPKI
November 11, 2024
Advocacy group launches to speed up production and use of SAF across Asia
A new group, the Asia Sustainable Aviation Fuel Association (ASAFA), has been launched in Singapore to help accelerate pan-Asia production and use of low carbon aero fuels. Although the Asia-Pacific region is the largest consolidated market for air travel, accounting for almost 32% of global air passenger journeys, it lags both Europe and the US in SAF momentum. ASAFA brings together a range of participants in the SAF sector, from feedstock producers to policymakers, to collectively address core challenges, including standardising regulatory policies across the region, enhancing market frameworks, and raising awareness of the fuels through initiatives ranging from monthly workshops and webinars to industry white papers. Its aim is to uniformly progress SAF development and deployment in key sub-regions including Southeast Asia, Japan, South Korea and the world’s second and third largest aviation markets, China and India.
ASAFA has been co-founded by four industry specialists, former Airbus executive Fabrice Espinosa, now the new group’s CEO, chemical engineer and sustainable transport consultant Gabriel Ho as Chief Sustainability Officer, fuels and additives specialist Dr Dietmar Posselt as Chief Technology Officer, and Hui Ling Teo, a corporate lawyer specialising in aviation finance, technology and sustainability as the group’s Director of Governance.
Founding member organisations include Korean Air; major SAF user DHL Group; SAF distributor and emergent producer SkyNRG; carbon capture and storage company 1PointFive; environmental certification group Bureau Veritas; used cooking oil collector and distributor PT Green Energi Utama; low carbon-based feed and fuel producer Marquis Energy Global; energy pricing and data supplier Quantum Commodity Intelligence; and the EU-ASEAN Business Council.
Additionally, ASAFA has signed a Memorandum of Understanding with Singapore’s Agency for Science, Technology and Research (A*STAR), which will connect members of the new group with the agency’s research institutes to help develop and implement advanced SAF technologies.
“We are placing Asia at the heart of our efforts by driving policies that resolve market inefficiencies, attract investments and establish SAF as a viable decarbonisation option for the aviation industry, making Asia a leader in SAF for net zero aviation,” explained Espinosa, a former GM for Airbus in Hong Kong, Head of Country for the company in Korea, and ex-Chairman of the Aerospace and Defence Committee of the European Chamber of Commerce in Korea.
The new group plans to develop “a collaborative ecosystem addressing the SAF value chain’s core challenges,” bringing together stakeholders ranging from feedstock providers to technology licensors, fuel aggregators, biofuel producers, airlines, investors and policy makers. More Green Air News
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Malaysia Sets the Gold Standard for Sustainable Palm Oil at UNFCCC COP29
Petaling Jaya, Selangor; 11 November 2024 – The Malaysian Palm Oil Council (MPOC) is set to lead pivotal conversations on sustainability at the 29th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC COP29), hosting a dedicated Malaysian Palm Oil Day on 15 November 2024, at the Malaysia Pavilion. This event underscores Malaysia’s commitment to sustainable palm oil practices and its role as a global leader in producing Certified Sustainable Palm Oil (CSPO), a crucial step toward fulfilling the United Nations Sustainable Development Goals (SDGs).
At UNFCCC COP29, MPOC aims to advance its global mission of promoting CSPO as an essential solution to meet rising demands for food security while prioritizing environmental preservation. In line with Malaysia’s strategic goals, MPOC’s participation reflects an unwavering commitment to environmentally and socially responsible palm oil production, building an industry model that balances growth with the urgent need for climate action.
Belvinder Sron, CEO of MPOC, commented on the event’s significance: “Our presence at UNFCCC COP29 highlights Malaysia’s position as a trailblazer of sustainable palm oil production. Through strategic partnerships and steadfast dedication to responsible practices, we aim to set a global benchmark for environmental stewardship and economic resilience, showing the world that sustainable palm oil can meet both ecological and societal needs.”
As UNFCCC COP29 convenes global leaders, policymakers, and sustainability experts, MPOC will spearhead critical dialogues on Just Transition, Circular Economy, and Food Security, positioning Malaysia as an innovator in responsible agriculture and climate action. This is a landmark opportunity to demonstrate Malaysia’s progress and the Malaysian palm oil industry’s forward-thinking approach, reinforcing its pledge to meet global palm oil demand responsibly and sustainably.
Highlights of Malaysian Palm Oil Day include:
Launch of the “Net-Zero Transition” Study – In collaboration with Swinburne University, this study charts pathways for Malaysia’s palm oil sector to reach net-zero emissions. Unveiled by Dato’ Abdul Hadi Omar, Deputy Secretary General (Strategic Planning & Management) of the Ministry of Plantation and Commodities, this pivotal report underscores Malaysia’s proactive stance on climate action.
Special Keynote by Prof. Jeffrey Sachs – Global economist and environmental leader, Prof. Sachs, will deliver insights on the Just Transition, advocating inclusive growth and underscoring the importance of sustainable economic development for the Global South.
Panel on Just Transition and Circular Economy – This panel will showcase the Malaysian palm oil industry’s dedication to creating green jobs, advancing bioenergy, and pioneering circular economy solutions. Highlighting MPOC’s influence, the session will demonstrate how Malaysia integrates environmental responsibility with economic empowerment.
Presentation on Biodiversity and Conservation Efforts – The Malaysian Palm Oil Green Conservation Foundation (MPOGCF) will spotlight reforestation and wildlife conservation initiatives, demonstrating Malaysian palm oil’s role in biodiversity protection.
Panel on Sustainable Palm Oil and Global Food Security – Focusing on high-yield, sustainable palm oil, this discussion will highlight Malaysia’s significant contributions to global food security and showcase advancements supporting smallholders and sustainable farming practices.
By fostering global awareness of Malaysia’s pioneering efforts, MPOC aims to amplify the industry’s achievements and transformations towards a more sustainable future for palm oil.
Media are invited to join and witness how Malaysia’s leadership in sustainable palm oil aligns with global priorities at UNFCCC COP29, creating ripple effects for a greener, more resilient global agricultural landscape.
For more information, please visit the Malaysia Pavilion UNFCCC COP29 website: https://malaysiapavilion-cop.com/
For further details about MPOC, visit: https://www.mpoc.org.my/
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Malaysian firms urged to invest in Ghana’s oil palm industry
Players in the palm oil industry have called on Malaysian investors to tap into the country's favourable business environment and partner local firms to establish multinational enterprises that can cater for the rest of Africa.
At a business forum last Friday in Accra, government officials, manufacturers and traders asked the Malaysians to partner their counterparts to speed up Ghana’s transition period of becoming self-sufficient with the production of oil palm.
They explained that the two countries must start the partnership through institutional research, knowledge sharing, equipment manufacturing, strategic investment and technology transfer to accelerate the development of the industry.
The players include the President of the Oil Palm Development Association of Ghana (OPDAG), Samuel Avaala, and the Chief Executive of the Tree Crops Development Authority (TCDA), William Agyapong Quaittoo.
The Chief Commercial Officer at the Ministry of Trade and Industry (MoTI), Kofi Addo, said the partnership was to enable Ghana to learn from Malaysia's expertise in sustainable palm oil production to take advantage of the huge demand in Africa.
It was at the Malaysia Palm Oil Trade and Networking Programme organised by Malaysia Palm Oil Council (MPOC) with the aim to create an opportunity to strengthen the bonds between Malaysia and its partners in Africa. particularly in the palm oil industry.
The forum was attended by three of the big Malaysian firms which are into the production of oil palm, namely KLK Alami Commodities, Mac World Industries and Able Perfect.
Build partnership
Mr Avaala stated that Malaysian firms must rather focus on building partnerships that would enable them to reach the rest of Africa instead of expanding retail and distribution bases in the country.
“As a country, we are a net importer of palm oil. In fact, in Africa, it is only Cote d’Ivoire that are net exporters, the rest of the continent are importers of the commodity.
“In Ghana, our production is around 300,000 tonnes per annum and demand is 450,000 tonnes. And so, we have a deficit of 150,000 tonnes which require imports,” he said.
Transition
Mr Avaala explained that the country was in transition to become self-sufficient through the introduction of the Tree Crops Development Authority and other policies.
He said through the process the development of the industry was to ensure that agronomic practices, planting materials and processing were efficiently modernised to increase production.
“And so, what we are saying is that oil palm plantation takes three years before producing fruits and the first year of harvest is not even the biggest. The biggest harvest is between eight to 15 years.
“The project embarked upon by the TCDA would take up to 10 years to make Ghana self-sufficient. We will not be depending on importation of the commodity from Malaysia all the time and so, these businesses should find a way of partnering with us to help speed up the process of becoming self-sufficient,” he said.
He added that establishing in Ghana would not reduce the market share of the businesses in Malaysia because the whole of Africa was a net importer and consumption was believed to be 13 per cent of the entire global production.
Ghana ready
Mr Quaittoo said Ghana had enough capacity and the structures to partner the Malaysian firms to penetrate the rest of the consumers in Africa.
“We have to play our part very well to attract these investors. We have the infrastructure, including roads and ports, with a huge market demand.
“Ghana’s socioeconomic environment also offers competitive advantage over its neighbours within the continent,” he said.
For his part, Mr Addo said Ghana should forge robust partnerships with nations possessing expertise in the oil palm industry to propel its growth and development.
Crucial economic pillar
The High Commissioner of Malaysia in Ghana, Syed Nauzer Idid, stated that palm oil was a crucial economic pillar for Malaysia, contributing significantly to its growth and to the livelihood of millions involved in its production and distribution. Business Ghana
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RSPO Roundtable Conference Calls for Bold, New Approaches to Transform Sustainable Palm Oil
RT2024 sees new strategic partnerships to better address deforestation, improve smallholder inclusion through climate-smart programmes and drive global demand for RSPO Certified products
BANGKOK, Nov. 12, 2024 /PRNewswire/ -- Building upon two decades of impact, the Roundtable on Sustainable Palm Oil (RSPO) has called for more concerted efforts to scale innovation and drive transformative and systemic change within the sector. Supported by Thailand's Ministry of Agriculture and Cooperatives, the RSPO's Annual Roundtable conference (RT2024) took place in Bangkok from 11 to 13 November, amidst preparations for the adoption of the RSPO 2024 Standards.
Comprising the 2024 RSPO Principles & Criteria (P&C) and the 2024 RSPO Independent Smallholder (ISH) Standard, the revised Standards bring greater clarity, auditability and implementability, and addresses market and regulatory relevance, with a strong focus on addressing deforestation, human rights due diligence, and smallholder inclusion in global supply chains.
In his keynote address, RSPO's first Secretary General, Teoh Cheng Hai, reflected on the organisation's illustrious journey to become today the gold standard for sustainable palm oil production. He underscored the importance of innovative partnerships as a key strategy for RSPO to evolve as a world-class standard setter that can lead the global sustainable palm oil supply chain in line with the 2030 United Nations Sustainable Development Goals.
RSPO CEO, Joseph D'Cruz, in his opening remarks, reaffirmed that the RSPO is well positioned to meet the future demands of the industry. "Building on our strong foundations, the RSPO is ready to meet the next 20 years with fortified Standards, enhanced verification systems, and an end-to-end digital certification, trade and traceability architecture powered by data."
He added that the revised Standards have also been strengthened in its integration with the certification system through RSPO's certification, trade and traceability platform, prisma, which stands for Palm Resource Information and Sustainability Management. At RT2024, delegates previewed how prisma is built to provide digital data and supply chain traceability and can act as a supporting tool for members to strengthen risk assessment and due diligence for emerging regulatory compliance.
A testament to RSPO's credibility and reach as a global sustainability organisation, RT2024 witnessed the forging of several strategic partnerships designed to increase the social, environmental and economic benefits in the production and trade of certified sustainable palm oil (CSPO).
Advancing high conservation value protection for sustainable palm oil
At RT2024, RSPO and the High Conservation Value Network (HCVN) renewed a longstanding partnership to promote best practices and innovative approaches to HCV protection. Aligned with the revised RSPO Standards, the parties signed a Memorandum of Understanding (MoU) in a shared mission to protect high conservation value (HCV) and high carbon stock (HCS) forests within sustainable palm oil landscapes. The MoU will strengthen the protection of ecosystems, biodiversity, and areas of critical importance for indigenous and local communities.
"By prioritising conservation values as an integral part of sustainable palm oil production, HCVN will continue to collaborate with RSPO to embed HCV protections within sustainable land management practices across palm oil landscapes, setting clearer benchmarks for environmental and social stewardship across the palm oil sector," said Belinda Bowling, Global Director, HCV Network.
As of 2023, RSPO Certification has protected over 466,600 ha of valuable HCV and HCS forests since adopting the HCV Approach in November 2005 and the HCS Approach in November 2018.
Overall, taking into account other critical ecosystems, RSPO Certification has protected and remediated about 646,700 ha of valuable forests and areas including tropical peatlands and riparian reserves globally.
Integrating climate impact reduction within RSPO Independent Smallholder certification
Globally, RSPO's smallholder certification footprint has grown significantly. As of 2023, over 40,000 individual independent smallholders have been certified globally, up 11,268 from 2022, with certification now expanded to Colombia, Ecuador and Honduras.
Recognising the critical role that smallholders can play in the reduction of greenhouse gas (GHG) emissions derived from palm oil production, RSPO signed an MoU with Global Green Chemicals Public Company Limited (GGC) and the German sustainable development entity, GIZ. The MoU will integrate climate impact reduction within RSPO Certification through the Sustainable Palm Oil Production and Procurement Project on Climate Mitigation and Adaptation (SPOPP CLIMA), funded by GGC, a leading company in Thailand committed to achieving carbon neutrality.
The partnership aims to promote low-carbon farming practices and includes the development of a carbon footprint calculation tool for fresh fruit bunches to measure emissions and eventually develop reduction strategies, in line with guidelines from the Thailand Greenhouse Gas Management Organisation (TGO).
Mr. Kridsada Prasertsuko, Managing Director, Global Green Chemical PCL commented, "GGC has worked with GIZ and RSPO to support our oil palm smallholders in reducing carbon emissions and carbon footprints. Together, our goal is to achieve 20% carbon emission reduction by Year 2030 and achieve Net Zero by Year 2050, together with promoting sustainable oil palm production in accordance with the European Union Deforestation-free Regulations (EUDR), effective on 1 January 2025. This cooperation will not only reduce climate impact on the agricultural sector but also enhance sustainability to the oil palm industry and promote the image of the Thai oil palm industry in the global market."
Additionally, the project will create a training curriculum on carbon footprint calculation for farmers and establish demonstration plots to showcase suitable low-carbon farming practices. Since 2015, cumulative GHG emissions (~2 million MT CO2e) avoided through the implementation of RSPO Standards is equal to 468,864 passenger vehicles driven over a year.
Observing the MoU, Dr. Taworn Thunjai, Inspector-General of the Ministry of Agriculture and Cooperatives who delivered remarks on behalf of Her Excellency Prof. Dr. Narumon Pinyosinwat, Thailand's Minister of Agriculture and Cooperatives, recognised the RSPO's role in supporting smallholder farmers, who play a vital role in Thailand's palm oil sector. In the five years since the last Roundtable Conference was held in Thailand, the country has fortified its position as the world's third-largest palm oil producer. Today, smallholders from 400,000 households in Thailand account for 85% of Thailand's palm oil production area. Thailand has the highest percentage of RSPO certified independent smallholders who are women, 42%, compared to the global average of 28%.
Growth in RSPO Certification continues to drive supply and consumption
As of 2023, RSPO Certified oil palm area spans 5.2 million ha across 23 countries. Midstream and downstream facilities certified under the RSPO Supply Chain Certification (SCC) Standard stand at 6,907 sites worldwide.
CSPO supply reached a new milestone at 16.1 million MT, representing a 4.3% growth in production year-on-year, while CSPO consumption grew to 9.8 million MT, representing a 7.2% increase in downstream usage year-on-year. Consumption growth was supported by the RSPO Shared Responsibility (SR) Framework, designed to support members in compliance reporting as it requires having in place relevant policies and plans, and a commitment to meet yearly uptake targets. More than half of applicable processors and traders, consumer goods manufacturers, and retailer members met their 2023 CSPO SR uptake targets. To support independent smallholders (ISH), RSPO downstream members bought 261,792 ISH Credits worth US$7.0 million in 2023 (up by US$1.53 million from 2022) directly benefiting 85 certified ISH groups.
Downstream players from China, the world's second-largest palm oil importer, featured prominently at RT2024. In recent years, emerging policies in China have been steering suppliers towards sustainable palm oil sourcing practices, giving rise to a demand for more sustainable palm oil products in the Chinese market. In November, one of the world's top five dairy companies, Inner Mongolia Yili Industrial Group (Yili Group), and Yihai Kerry, the leading palm oil trader in China spearheaded the very first shipment of RSPO CSPO into the country. The first tranche involves 750 tonnes of CSPO, certified under the Identity Preserved (IP) supply chain model, which maintains a single identifiable certified source that is kept separate from ordinary palm oil throughout the supply chain.
Further sealing its commitment to sourcing CSPO products into China, at RT2024, Yili Group signed two additional sustainable procurement agreements with major international traders, Bunge and Cargill, demonstrating its ambition to build a global green value chain for palm oil.
The conference also featured the RSPO Excellence Awards, which saw fifteen RSPO Members nominated for their outstanding contributions to sustainable palm oil. The winners were World Association of Zoos and Accreditation for Innovation; Hacienda La Cabaña S.A for Conservation Leadership; Sustainable Palm Oil Production (ThaChana-Chaiya) Community Enterprise for Smallholder Impact; Ferrero Trading Luxembourg S.A and Chester Zoo for Communicating for Good, and Proctor and Gamble for Shared Responsibility. Learn more about the winners, nominees and their award-worthy initiatives here.
For further information on our work and impacts, view the RSPO Impact highlights here.
About RSPO:
The Roundtable on Sustainable Palm Oil (RSPO) is a global partnership to make palm oil sustainable. Formed in 2004, the RSPO is a multi-stakeholder non-profit organisation that unites members from across the palm oil value chain, including oil palm producers, palm oil processors and traders, consumer goods manufacturers, retailers, banks and investors, environmental or nature conservation non-governmental organisations (NGOs), and social or developmental NGOs.
As a partnership for progress and positive impact, the RSPO facilitates global change to make the production and consumption of palm oil sustainable. To inspire change, we communicate the environmental and social benefits. To make progress, we catalyse collaboration. To provide assurance, we set the standards of certification.
The RSPO is registered as an international association in Zurich, Switzerland, with main offices in Malaysia and Indonesia, and offices in China, Colombia, Netherlands, United Kingdom and the United States.
SOURCE Roundtable On Sustainable Palm Oil
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RSPO, HCVN SIGN MOU TO STRENGTHEN ECOSYSTEM PROTECTION IN PALM OIL INDUSTRY
BANGKOK, Nov 11 (Bernama) -- The Roundtable on Sustainable Palm Oil (RSPO) signed a memorandum of understanding (MOU) on Monday with the High Conservation Value Network (HCVN) to enhance efforts in safeguarding high conservation values (HCVs) and high carbon stock (HCS) forests integral to sustainable palm oil production.
The MOU formalises a shared commitment to protecting these critical ecosystems, which play an essential role in conserving biodiversity and supporting responsible land management within the palm oil sector.
RSPO chief executive officer Joseph D’Cruz said the partnership with HCVN aligns with the upcoming adoption of the 2024 RSPO Standards, which will reinforce RSPO’s use of the Integrated High Conservation Value-High Carbon Stock (HCV-HCS) approach.
“The adoption of the 2024 RSPO Standards provides an ideal opportunity to underscore our partnership with HCVN. These updated standards strengthen RSPO’s commitment to protecting vital ecosystems while offering clear, actionable guidance for responsible palm oil planting.
"HCVN’s insights have enhanced the RSPO Standards, positioning it as a leading tool for addressing deforestation in global supply chains,” he said at the RSPO’s Annual Roundtable Conference (RT2024) here.
HCVN global director, Belinda Bowling, emphasised that the joint efforts are directed at supporting resilient ecosystems, preventing biodiversity loss, and integrating HCV considerations into sustainable production standards. “We are united in our pursuit of global sustainability goals, working to ensure palm oil practices that benefit people, nature, and the future of our planet,” Bowling said.
The MOU builds on years of collaboration between RSPO and HCVN to protect ecosystems and biodiversity, as well as sites and resources vital to indigenous peoples and local communities.
Since adopting the HCV approach in November 2005 and the HCS approach in November 2018, RSPO Certification has protected over 466,600 hectares of valuable HCV and HCS forests as of 2023.
Separately, the RSPO also signed an MOU with Global Green Chemicals Public Company Limited (GGC) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) to expand climate-focused partnerships.
RSPO's head of technical and smallholder department, Francisco Naranjo, said the MOU aims to foster collaborative partnerships that integrate climate impact reduction within RSPO Certification through the Sustainable Palm Oil Production and Procurement Project on Climate Mitigation and Adaptation (SPOPP CLIMA), funded by GGC. He noted that GIZ will lead the implementation of the SPOPP CLIMA initiative.
“The MOU between GGC, GIZ, and RSPO underscores the importance of multi-stakeholder collaboration in empowering smallholders to adopt sustainable practices, positioning them as key players in combating climate change by reducing greenhouse gas emissions from palm oil production,” he said. BERNAMA
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Nestle, P&G investigate palm oil sourcing after green group's Indonesia deforestation report
By Bernadette Christina
Rainforests within the legally protected wildlife reserve had been cleared to make way for palm oil plantations during the last eight years, the U.S.-based Rainforest Action Network (RAN) said, citing satellite images that it says reveal deforestation in the area.
The group shared images which it said showed stretches of cleared brown land cut into the lush green expanse of Indonesia's Rawa Singkil Wildlife Reserve, with rows of young palm trees now planted along its borders.
Some images, which RAN said were taken during a field investigation in February 2024, showed that oil palm seedlings were planted on burnt ground surrounded by fallen trees inside the reserve, according to the report published on Monday.
The wildlife reserve, located in Aceh province in the northwest of Indonesia's Sumatra island, has lost 2,609 hectares (6,447 acres) of forest since 2016, with palm trees now growing on 645 hectares of the cleared area, RAN said.
Reuters could not independently confirm those findings.
Indonesia's forestry ministry did not respond to a request for comment.
ILLEGAL PLANTATIONS
RAN said its investigation, conducted in September and October, had found fresh fruit bunches from the illegal plantations were sold to mills PT Global Sawit Semesta (GSS) and PT Aceh Trumon Anugerah Kita (ATAK), both of which supplied major brands including Procter & Gamble, Nestlé, Mondelez and PepsiCo, according to the RAN report.
GSS and ATAK, which are located in remote areas, could not be reached by Reuters for comment.
Companies typically source palm oil from Indonesian mills through intermediaries.
A Nestle spokesperson said it promptly engaged with its direct supplier regarding GSS to investigate RAN's findings, adding that, by the end of 2023, 96% of its palm oil supply was "deforestation-free".
"Should there be a need to find remedies, we will take necessary action," the spokesperson said. Reuters
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Could palm oil be beneficial for your health?
By Prof Francesco Visioli
FOR many years, saturated fats have been cast in a negative light, with strong associations drawn between their consumption and cardiovascular disease.
This has led to a widespread belief that all saturated fats, including those found in palm oil, should be avoided to protect heart health.
However, with greater research and understanding in this space, we now know that dietary fats, including palm oil, are not inherently unhealthy.
In fact, palm oil could even offer some surprising benefits for heart health.
As a scientist dedicated to studying the complex interactions between diet and cardiovascular health, I have encountered many misconceptions about palm oil.
It is true that palm oil contains saturated fat, but it is crucial to understand that not all saturated fats are created equal.
The fats found in palm oil, specifically palmitic acid, might not elevate cholesterol levels or increase cardiovascular risk in the same way as other fats, like those in red meat.
In contrast to the popular narrative, palm oil could be viewed as a neutral player in the heart health equation.
One of palm oil's most valuable attributes is its stability during cooking. Because it remains stable under high temperatures, palm oil is less likely to oxidise and form harmful lipid peroxides.
These peroxides can be damaging to our arteries, potentially contributing to heart disease.
Palm oil's resistance to oxidation makes it a safer option for cooking compared to many other oils, particularly when deep-frying or preparing food at high heat.
Additionally, unrefined palm oil contains natural compounds such as tocopherols, tocotrienols, and carotenoids - nutrients that are not only beneficial for overall health but could protect the heart.
These antioxidants are thought to play a role in the prevention of cardiovascular diseases.
While the bright red colour of sustainable palm oil, due to its carotenoid content, is often removed during processing, these compounds are valuable to heart health when left intact.
It's important to consider palm oil not just in isolation but within the context of the foods it is found in.
Rarely is palm oil consumed on its own; instead, it is typically part of more complex meals. This "food matrix" influences how palm oil interacts with other nutrients, and these interactions can have positive or neutral effects on the body.
The key, as with any dietary component, lies in moderation and balance.
In recent years, the conversation about dietary fats had become more nuanced, and we have learned that blanket recommendations to avoid all saturated fats are no longer scientifically justified.
Palm oil, in particular, presents a compelling case for re-evaluation. Its modest effect on cholesterol, its role as a stable cooking fat, and its antioxidant content suggest that palm oil is far from the dietary villain it has been made out to be.
Of course, more research is always welcome. Studies like the Predimed and Cordioprev trials, which examined the effects of dietary fats on cardiovascular health, could help provide further clarity on palm oil's role.
However, the evidence we have today suggests that palm oil, when used appropriately, can be part of a healthy and heart-conscious diet.
As we move forward in understanding the complex relationships between diet and health, it is important that we approach palm oil with a more informed perspective.
Rather than focusing on its saturated fat content alone, we should consider its broader nutritional properties and how it fits into our overall dietary patterns.
For those concerned about heart health, palm oil can be an appropriate component of a balanced diet, offering stability in cooking and valuable vitamins that support cardiovascular well-being.
In conclusion, it is time to rethink palm oil's place in our diets. With its unique combination of properties, palm oil has the potential to contribute to heart health rather than harm it.
By looking beyond outdated perceptions, we can appreciate palm oil as a versatile and nutritious option in maintaining a healthy heart.
*The writer is an associate professor of human nutrition at the University of Padua, Italy New Straits Times
Advocacy group launches to speed up production and use of SAF across Asia
A new group, the Asia Sustainable Aviation Fuel Association (ASAFA), has been launched in Singapore to help accelerate pan-Asia production and use of low carbon aero fuels. Although the Asia-Pacific region is the largest consolidated market for air travel, accounting for almost 32% of global air passenger journeys, it lags both Europe and the US in SAF momentum. ASAFA brings together a range of participants in the SAF sector, from feedstock producers to policymakers, to collectively address core challenges, including standardising regulatory policies across the region, enhancing market frameworks, and raising awareness of the fuels through initiatives ranging from monthly workshops and webinars to industry white papers. Its aim is to uniformly progress SAF development and deployment in key sub-regions including Southeast Asia, Japan, South Korea and the world’s second and third largest aviation markets, China and India.
ASAFA has been co-founded by four industry specialists, former Airbus executive Fabrice Espinosa, now the new group’s CEO, chemical engineer and sustainable transport consultant Gabriel Ho as Chief Sustainability Officer, fuels and additives specialist Dr Dietmar Posselt as Chief Technology Officer, and Hui Ling Teo, a corporate lawyer specialising in aviation finance, technology and sustainability as the group’s Director of Governance.
Founding member organisations include Korean Air; major SAF user DHL Group; SAF distributor and emergent producer SkyNRG; carbon capture and storage company 1PointFive; environmental certification group Bureau Veritas; used cooking oil collector and distributor PT Green Energi Utama; low carbon-based feed and fuel producer Marquis Energy Global; energy pricing and data supplier Quantum Commodity Intelligence; and the EU-ASEAN Business Council.
Additionally, ASAFA has signed a Memorandum of Understanding with Singapore’s Agency for Science, Technology and Research (A*STAR), which will connect members of the new group with the agency’s research institutes to help develop and implement advanced SAF technologies.
“We are placing Asia at the heart of our efforts by driving policies that resolve market inefficiencies, attract investments and establish SAF as a viable decarbonisation option for the aviation industry, making Asia a leader in SAF for net zero aviation,” explained Espinosa, a former GM for Airbus in Hong Kong, Head of Country for the company in Korea, and ex-Chairman of the Aerospace and Defence Committee of the European Chamber of Commerce in Korea.
The new group plans to develop “a collaborative ecosystem addressing the SAF value chain’s core challenges,” bringing together stakeholders ranging from feedstock providers to technology licensors, fuel aggregators, biofuel producers, airlines, investors and policy makers. More Green Air News
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Malaysia Sets the Gold Standard for Sustainable Palm Oil at UNFCCC COP29
Petaling Jaya, Selangor; 11 November 2024 – The Malaysian Palm Oil Council (MPOC) is set to lead pivotal conversations on sustainability at the 29th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC COP29), hosting a dedicated Malaysian Palm Oil Day on 15 November 2024, at the Malaysia Pavilion. This event underscores Malaysia’s commitment to sustainable palm oil practices and its role as a global leader in producing Certified Sustainable Palm Oil (CSPO), a crucial step toward fulfilling the United Nations Sustainable Development Goals (SDGs).
At UNFCCC COP29, MPOC aims to advance its global mission of promoting CSPO as an essential solution to meet rising demands for food security while prioritizing environmental preservation. In line with Malaysia’s strategic goals, MPOC’s participation reflects an unwavering commitment to environmentally and socially responsible palm oil production, building an industry model that balances growth with the urgent need for climate action.
Belvinder Sron, CEO of MPOC, commented on the event’s significance: “Our presence at UNFCCC COP29 highlights Malaysia’s position as a trailblazer of sustainable palm oil production. Through strategic partnerships and steadfast dedication to responsible practices, we aim to set a global benchmark for environmental stewardship and economic resilience, showing the world that sustainable palm oil can meet both ecological and societal needs.”
As UNFCCC COP29 convenes global leaders, policymakers, and sustainability experts, MPOC will spearhead critical dialogues on Just Transition, Circular Economy, and Food Security, positioning Malaysia as an innovator in responsible agriculture and climate action. This is a landmark opportunity to demonstrate Malaysia’s progress and the Malaysian palm oil industry’s forward-thinking approach, reinforcing its pledge to meet global palm oil demand responsibly and sustainably.
Highlights of Malaysian Palm Oil Day include:
Launch of the “Net-Zero Transition” Study – In collaboration with Swinburne University, this study charts pathways for Malaysia’s palm oil sector to reach net-zero emissions. Unveiled by Dato’ Abdul Hadi Omar, Deputy Secretary General (Strategic Planning & Management) of the Ministry of Plantation and Commodities, this pivotal report underscores Malaysia’s proactive stance on climate action.
Special Keynote by Prof. Jeffrey Sachs – Global economist and environmental leader, Prof. Sachs, will deliver insights on the Just Transition, advocating inclusive growth and underscoring the importance of sustainable economic development for the Global South.
Panel on Just Transition and Circular Economy – This panel will showcase the Malaysian palm oil industry’s dedication to creating green jobs, advancing bioenergy, and pioneering circular economy solutions. Highlighting MPOC’s influence, the session will demonstrate how Malaysia integrates environmental responsibility with economic empowerment.
Presentation on Biodiversity and Conservation Efforts – The Malaysian Palm Oil Green Conservation Foundation (MPOGCF) will spotlight reforestation and wildlife conservation initiatives, demonstrating Malaysian palm oil’s role in biodiversity protection.
Panel on Sustainable Palm Oil and Global Food Security – Focusing on high-yield, sustainable palm oil, this discussion will highlight Malaysia’s significant contributions to global food security and showcase advancements supporting smallholders and sustainable farming practices.
By fostering global awareness of Malaysia’s pioneering efforts, MPOC aims to amplify the industry’s achievements and transformations towards a more sustainable future for palm oil.
Media are invited to join and witness how Malaysia’s leadership in sustainable palm oil aligns with global priorities at UNFCCC COP29, creating ripple effects for a greener, more resilient global agricultural landscape.
For more information, please visit the Malaysia Pavilion UNFCCC COP29 website: https://malaysiapavilion-cop.com/
For further details about MPOC, visit: https://www.mpoc.org.my/
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Malaysian firms urged to invest in Ghana’s oil palm industry
Players in the palm oil industry have called on Malaysian investors to tap into the country's favourable business environment and partner local firms to establish multinational enterprises that can cater for the rest of Africa.
At a business forum last Friday in Accra, government officials, manufacturers and traders asked the Malaysians to partner their counterparts to speed up Ghana’s transition period of becoming self-sufficient with the production of oil palm.
They explained that the two countries must start the partnership through institutional research, knowledge sharing, equipment manufacturing, strategic investment and technology transfer to accelerate the development of the industry.
The players include the President of the Oil Palm Development Association of Ghana (OPDAG), Samuel Avaala, and the Chief Executive of the Tree Crops Development Authority (TCDA), William Agyapong Quaittoo.
The Chief Commercial Officer at the Ministry of Trade and Industry (MoTI), Kofi Addo, said the partnership was to enable Ghana to learn from Malaysia's expertise in sustainable palm oil production to take advantage of the huge demand in Africa.
It was at the Malaysia Palm Oil Trade and Networking Programme organised by Malaysia Palm Oil Council (MPOC) with the aim to create an opportunity to strengthen the bonds between Malaysia and its partners in Africa. particularly in the palm oil industry.
The forum was attended by three of the big Malaysian firms which are into the production of oil palm, namely KLK Alami Commodities, Mac World Industries and Able Perfect.
Build partnership
Mr Avaala stated that Malaysian firms must rather focus on building partnerships that would enable them to reach the rest of Africa instead of expanding retail and distribution bases in the country.
“As a country, we are a net importer of palm oil. In fact, in Africa, it is only Cote d’Ivoire that are net exporters, the rest of the continent are importers of the commodity.
“In Ghana, our production is around 300,000 tonnes per annum and demand is 450,000 tonnes. And so, we have a deficit of 150,000 tonnes which require imports,” he said.
Transition
Mr Avaala explained that the country was in transition to become self-sufficient through the introduction of the Tree Crops Development Authority and other policies.
He said through the process the development of the industry was to ensure that agronomic practices, planting materials and processing were efficiently modernised to increase production.
“And so, what we are saying is that oil palm plantation takes three years before producing fruits and the first year of harvest is not even the biggest. The biggest harvest is between eight to 15 years.
“The project embarked upon by the TCDA would take up to 10 years to make Ghana self-sufficient. We will not be depending on importation of the commodity from Malaysia all the time and so, these businesses should find a way of partnering with us to help speed up the process of becoming self-sufficient,” he said.
He added that establishing in Ghana would not reduce the market share of the businesses in Malaysia because the whole of Africa was a net importer and consumption was believed to be 13 per cent of the entire global production.
Ghana ready
Mr Quaittoo said Ghana had enough capacity and the structures to partner the Malaysian firms to penetrate the rest of the consumers in Africa.
“We have to play our part very well to attract these investors. We have the infrastructure, including roads and ports, with a huge market demand.
“Ghana’s socioeconomic environment also offers competitive advantage over its neighbours within the continent,” he said.
For his part, Mr Addo said Ghana should forge robust partnerships with nations possessing expertise in the oil palm industry to propel its growth and development.
Crucial economic pillar
The High Commissioner of Malaysia in Ghana, Syed Nauzer Idid, stated that palm oil was a crucial economic pillar for Malaysia, contributing significantly to its growth and to the livelihood of millions involved in its production and distribution. Business Ghana
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RSPO Roundtable Conference Calls for Bold, New Approaches to Transform Sustainable Palm Oil
RT2024 sees new strategic partnerships to better address deforestation, improve smallholder inclusion through climate-smart programmes and drive global demand for RSPO Certified products
BANGKOK, Nov. 12, 2024 /PRNewswire/ -- Building upon two decades of impact, the Roundtable on Sustainable Palm Oil (RSPO) has called for more concerted efforts to scale innovation and drive transformative and systemic change within the sector. Supported by Thailand's Ministry of Agriculture and Cooperatives, the RSPO's Annual Roundtable conference (RT2024) took place in Bangkok from 11 to 13 November, amidst preparations for the adoption of the RSPO 2024 Standards.
Comprising the 2024 RSPO Principles & Criteria (P&C) and the 2024 RSPO Independent Smallholder (ISH) Standard, the revised Standards bring greater clarity, auditability and implementability, and addresses market and regulatory relevance, with a strong focus on addressing deforestation, human rights due diligence, and smallholder inclusion in global supply chains.
In his keynote address, RSPO's first Secretary General, Teoh Cheng Hai, reflected on the organisation's illustrious journey to become today the gold standard for sustainable palm oil production. He underscored the importance of innovative partnerships as a key strategy for RSPO to evolve as a world-class standard setter that can lead the global sustainable palm oil supply chain in line with the 2030 United Nations Sustainable Development Goals.
RSPO CEO, Joseph D'Cruz, in his opening remarks, reaffirmed that the RSPO is well positioned to meet the future demands of the industry. "Building on our strong foundations, the RSPO is ready to meet the next 20 years with fortified Standards, enhanced verification systems, and an end-to-end digital certification, trade and traceability architecture powered by data."
He added that the revised Standards have also been strengthened in its integration with the certification system through RSPO's certification, trade and traceability platform, prisma, which stands for Palm Resource Information and Sustainability Management. At RT2024, delegates previewed how prisma is built to provide digital data and supply chain traceability and can act as a supporting tool for members to strengthen risk assessment and due diligence for emerging regulatory compliance.
A testament to RSPO's credibility and reach as a global sustainability organisation, RT2024 witnessed the forging of several strategic partnerships designed to increase the social, environmental and economic benefits in the production and trade of certified sustainable palm oil (CSPO).
Advancing high conservation value protection for sustainable palm oil
At RT2024, RSPO and the High Conservation Value Network (HCVN) renewed a longstanding partnership to promote best practices and innovative approaches to HCV protection. Aligned with the revised RSPO Standards, the parties signed a Memorandum of Understanding (MoU) in a shared mission to protect high conservation value (HCV) and high carbon stock (HCS) forests within sustainable palm oil landscapes. The MoU will strengthen the protection of ecosystems, biodiversity, and areas of critical importance for indigenous and local communities.
"By prioritising conservation values as an integral part of sustainable palm oil production, HCVN will continue to collaborate with RSPO to embed HCV protections within sustainable land management practices across palm oil landscapes, setting clearer benchmarks for environmental and social stewardship across the palm oil sector," said Belinda Bowling, Global Director, HCV Network.
As of 2023, RSPO Certification has protected over 466,600 ha of valuable HCV and HCS forests since adopting the HCV Approach in November 2005 and the HCS Approach in November 2018.
Overall, taking into account other critical ecosystems, RSPO Certification has protected and remediated about 646,700 ha of valuable forests and areas including tropical peatlands and riparian reserves globally.
Integrating climate impact reduction within RSPO Independent Smallholder certification
Globally, RSPO's smallholder certification footprint has grown significantly. As of 2023, over 40,000 individual independent smallholders have been certified globally, up 11,268 from 2022, with certification now expanded to Colombia, Ecuador and Honduras.
Recognising the critical role that smallholders can play in the reduction of greenhouse gas (GHG) emissions derived from palm oil production, RSPO signed an MoU with Global Green Chemicals Public Company Limited (GGC) and the German sustainable development entity, GIZ. The MoU will integrate climate impact reduction within RSPO Certification through the Sustainable Palm Oil Production and Procurement Project on Climate Mitigation and Adaptation (SPOPP CLIMA), funded by GGC, a leading company in Thailand committed to achieving carbon neutrality.
The partnership aims to promote low-carbon farming practices and includes the development of a carbon footprint calculation tool for fresh fruit bunches to measure emissions and eventually develop reduction strategies, in line with guidelines from the Thailand Greenhouse Gas Management Organisation (TGO).
Mr. Kridsada Prasertsuko, Managing Director, Global Green Chemical PCL commented, "GGC has worked with GIZ and RSPO to support our oil palm smallholders in reducing carbon emissions and carbon footprints. Together, our goal is to achieve 20% carbon emission reduction by Year 2030 and achieve Net Zero by Year 2050, together with promoting sustainable oil palm production in accordance with the European Union Deforestation-free Regulations (EUDR), effective on 1 January 2025. This cooperation will not only reduce climate impact on the agricultural sector but also enhance sustainability to the oil palm industry and promote the image of the Thai oil palm industry in the global market."
Additionally, the project will create a training curriculum on carbon footprint calculation for farmers and establish demonstration plots to showcase suitable low-carbon farming practices. Since 2015, cumulative GHG emissions (~2 million MT CO2e) avoided through the implementation of RSPO Standards is equal to 468,864 passenger vehicles driven over a year.
Observing the MoU, Dr. Taworn Thunjai, Inspector-General of the Ministry of Agriculture and Cooperatives who delivered remarks on behalf of Her Excellency Prof. Dr. Narumon Pinyosinwat, Thailand's Minister of Agriculture and Cooperatives, recognised the RSPO's role in supporting smallholder farmers, who play a vital role in Thailand's palm oil sector. In the five years since the last Roundtable Conference was held in Thailand, the country has fortified its position as the world's third-largest palm oil producer. Today, smallholders from 400,000 households in Thailand account for 85% of Thailand's palm oil production area. Thailand has the highest percentage of RSPO certified independent smallholders who are women, 42%, compared to the global average of 28%.
Growth in RSPO Certification continues to drive supply and consumption
As of 2023, RSPO Certified oil palm area spans 5.2 million ha across 23 countries. Midstream and downstream facilities certified under the RSPO Supply Chain Certification (SCC) Standard stand at 6,907 sites worldwide.
CSPO supply reached a new milestone at 16.1 million MT, representing a 4.3% growth in production year-on-year, while CSPO consumption grew to 9.8 million MT, representing a 7.2% increase in downstream usage year-on-year. Consumption growth was supported by the RSPO Shared Responsibility (SR) Framework, designed to support members in compliance reporting as it requires having in place relevant policies and plans, and a commitment to meet yearly uptake targets. More than half of applicable processors and traders, consumer goods manufacturers, and retailer members met their 2023 CSPO SR uptake targets. To support independent smallholders (ISH), RSPO downstream members bought 261,792 ISH Credits worth US$7.0 million in 2023 (up by US$1.53 million from 2022) directly benefiting 85 certified ISH groups.
Downstream players from China, the world's second-largest palm oil importer, featured prominently at RT2024. In recent years, emerging policies in China have been steering suppliers towards sustainable palm oil sourcing practices, giving rise to a demand for more sustainable palm oil products in the Chinese market. In November, one of the world's top five dairy companies, Inner Mongolia Yili Industrial Group (Yili Group), and Yihai Kerry, the leading palm oil trader in China spearheaded the very first shipment of RSPO CSPO into the country. The first tranche involves 750 tonnes of CSPO, certified under the Identity Preserved (IP) supply chain model, which maintains a single identifiable certified source that is kept separate from ordinary palm oil throughout the supply chain.
Further sealing its commitment to sourcing CSPO products into China, at RT2024, Yili Group signed two additional sustainable procurement agreements with major international traders, Bunge and Cargill, demonstrating its ambition to build a global green value chain for palm oil.
The conference also featured the RSPO Excellence Awards, which saw fifteen RSPO Members nominated for their outstanding contributions to sustainable palm oil. The winners were World Association of Zoos and Accreditation for Innovation; Hacienda La Cabaña S.A for Conservation Leadership; Sustainable Palm Oil Production (ThaChana-Chaiya) Community Enterprise for Smallholder Impact; Ferrero Trading Luxembourg S.A and Chester Zoo for Communicating for Good, and Proctor and Gamble for Shared Responsibility. Learn more about the winners, nominees and their award-worthy initiatives here.
For further information on our work and impacts, view the RSPO Impact highlights here.
About RSPO:
The Roundtable on Sustainable Palm Oil (RSPO) is a global partnership to make palm oil sustainable. Formed in 2004, the RSPO is a multi-stakeholder non-profit organisation that unites members from across the palm oil value chain, including oil palm producers, palm oil processors and traders, consumer goods manufacturers, retailers, banks and investors, environmental or nature conservation non-governmental organisations (NGOs), and social or developmental NGOs.
As a partnership for progress and positive impact, the RSPO facilitates global change to make the production and consumption of palm oil sustainable. To inspire change, we communicate the environmental and social benefits. To make progress, we catalyse collaboration. To provide assurance, we set the standards of certification.
The RSPO is registered as an international association in Zurich, Switzerland, with main offices in Malaysia and Indonesia, and offices in China, Colombia, Netherlands, United Kingdom and the United States.
SOURCE Roundtable On Sustainable Palm Oil
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RSPO, HCVN SIGN MOU TO STRENGTHEN ECOSYSTEM PROTECTION IN PALM OIL INDUSTRY
BANGKOK, Nov 11 (Bernama) -- The Roundtable on Sustainable Palm Oil (RSPO) signed a memorandum of understanding (MOU) on Monday with the High Conservation Value Network (HCVN) to enhance efforts in safeguarding high conservation values (HCVs) and high carbon stock (HCS) forests integral to sustainable palm oil production.
The MOU formalises a shared commitment to protecting these critical ecosystems, which play an essential role in conserving biodiversity and supporting responsible land management within the palm oil sector.
RSPO chief executive officer Joseph D’Cruz said the partnership with HCVN aligns with the upcoming adoption of the 2024 RSPO Standards, which will reinforce RSPO’s use of the Integrated High Conservation Value-High Carbon Stock (HCV-HCS) approach.
“The adoption of the 2024 RSPO Standards provides an ideal opportunity to underscore our partnership with HCVN. These updated standards strengthen RSPO’s commitment to protecting vital ecosystems while offering clear, actionable guidance for responsible palm oil planting.
"HCVN’s insights have enhanced the RSPO Standards, positioning it as a leading tool for addressing deforestation in global supply chains,” he said at the RSPO’s Annual Roundtable Conference (RT2024) here.
HCVN global director, Belinda Bowling, emphasised that the joint efforts are directed at supporting resilient ecosystems, preventing biodiversity loss, and integrating HCV considerations into sustainable production standards. “We are united in our pursuit of global sustainability goals, working to ensure palm oil practices that benefit people, nature, and the future of our planet,” Bowling said.
The MOU builds on years of collaboration between RSPO and HCVN to protect ecosystems and biodiversity, as well as sites and resources vital to indigenous peoples and local communities.
Since adopting the HCV approach in November 2005 and the HCS approach in November 2018, RSPO Certification has protected over 466,600 hectares of valuable HCV and HCS forests as of 2023.
Separately, the RSPO also signed an MOU with Global Green Chemicals Public Company Limited (GGC) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) to expand climate-focused partnerships.
RSPO's head of technical and smallholder department, Francisco Naranjo, said the MOU aims to foster collaborative partnerships that integrate climate impact reduction within RSPO Certification through the Sustainable Palm Oil Production and Procurement Project on Climate Mitigation and Adaptation (SPOPP CLIMA), funded by GGC. He noted that GIZ will lead the implementation of the SPOPP CLIMA initiative.
“The MOU between GGC, GIZ, and RSPO underscores the importance of multi-stakeholder collaboration in empowering smallholders to adopt sustainable practices, positioning them as key players in combating climate change by reducing greenhouse gas emissions from palm oil production,” he said. BERNAMA
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Nestle, P&G investigate palm oil sourcing after green group's Indonesia deforestation report
By Bernadette Christina
- RAN report shows deforestation in Indonesia's Rawa Singkil Wildlife Reserve
- Nestle and P&G investigate and suspend sourcing from implicated suppliers
- Indonesia claims reduced deforestation rate, but RAN reports surge in protected areas
Rainforests within the legally protected wildlife reserve had been cleared to make way for palm oil plantations during the last eight years, the U.S.-based Rainforest Action Network (RAN) said, citing satellite images that it says reveal deforestation in the area.
The group shared images which it said showed stretches of cleared brown land cut into the lush green expanse of Indonesia's Rawa Singkil Wildlife Reserve, with rows of young palm trees now planted along its borders.
Some images, which RAN said were taken during a field investigation in February 2024, showed that oil palm seedlings were planted on burnt ground surrounded by fallen trees inside the reserve, according to the report published on Monday.
The wildlife reserve, located in Aceh province in the northwest of Indonesia's Sumatra island, has lost 2,609 hectares (6,447 acres) of forest since 2016, with palm trees now growing on 645 hectares of the cleared area, RAN said.
Reuters could not independently confirm those findings.
Indonesia's forestry ministry did not respond to a request for comment.
ILLEGAL PLANTATIONS
RAN said its investigation, conducted in September and October, had found fresh fruit bunches from the illegal plantations were sold to mills PT Global Sawit Semesta (GSS) and PT Aceh Trumon Anugerah Kita (ATAK), both of which supplied major brands including Procter & Gamble, Nestlé, Mondelez and PepsiCo, according to the RAN report.
GSS and ATAK, which are located in remote areas, could not be reached by Reuters for comment.
Companies typically source palm oil from Indonesian mills through intermediaries.
A Nestle spokesperson said it promptly engaged with its direct supplier regarding GSS to investigate RAN's findings, adding that, by the end of 2023, 96% of its palm oil supply was "deforestation-free".
"Should there be a need to find remedies, we will take necessary action," the spokesperson said. Reuters
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Could palm oil be beneficial for your health?
By Prof Francesco Visioli
FOR many years, saturated fats have been cast in a negative light, with strong associations drawn between their consumption and cardiovascular disease.
This has led to a widespread belief that all saturated fats, including those found in palm oil, should be avoided to protect heart health.
However, with greater research and understanding in this space, we now know that dietary fats, including palm oil, are not inherently unhealthy.
In fact, palm oil could even offer some surprising benefits for heart health.
As a scientist dedicated to studying the complex interactions between diet and cardiovascular health, I have encountered many misconceptions about palm oil.
It is true that palm oil contains saturated fat, but it is crucial to understand that not all saturated fats are created equal.
The fats found in palm oil, specifically palmitic acid, might not elevate cholesterol levels or increase cardiovascular risk in the same way as other fats, like those in red meat.
In contrast to the popular narrative, palm oil could be viewed as a neutral player in the heart health equation.
One of palm oil's most valuable attributes is its stability during cooking. Because it remains stable under high temperatures, palm oil is less likely to oxidise and form harmful lipid peroxides.
These peroxides can be damaging to our arteries, potentially contributing to heart disease.
Palm oil's resistance to oxidation makes it a safer option for cooking compared to many other oils, particularly when deep-frying or preparing food at high heat.
Additionally, unrefined palm oil contains natural compounds such as tocopherols, tocotrienols, and carotenoids - nutrients that are not only beneficial for overall health but could protect the heart.
These antioxidants are thought to play a role in the prevention of cardiovascular diseases.
While the bright red colour of sustainable palm oil, due to its carotenoid content, is often removed during processing, these compounds are valuable to heart health when left intact.
It's important to consider palm oil not just in isolation but within the context of the foods it is found in.
Rarely is palm oil consumed on its own; instead, it is typically part of more complex meals. This "food matrix" influences how palm oil interacts with other nutrients, and these interactions can have positive or neutral effects on the body.
The key, as with any dietary component, lies in moderation and balance.
In recent years, the conversation about dietary fats had become more nuanced, and we have learned that blanket recommendations to avoid all saturated fats are no longer scientifically justified.
Palm oil, in particular, presents a compelling case for re-evaluation. Its modest effect on cholesterol, its role as a stable cooking fat, and its antioxidant content suggest that palm oil is far from the dietary villain it has been made out to be.
Of course, more research is always welcome. Studies like the Predimed and Cordioprev trials, which examined the effects of dietary fats on cardiovascular health, could help provide further clarity on palm oil's role.
However, the evidence we have today suggests that palm oil, when used appropriately, can be part of a healthy and heart-conscious diet.
As we move forward in understanding the complex relationships between diet and health, it is important that we approach palm oil with a more informed perspective.
Rather than focusing on its saturated fat content alone, we should consider its broader nutritional properties and how it fits into our overall dietary patterns.
For those concerned about heart health, palm oil can be an appropriate component of a balanced diet, offering stability in cooking and valuable vitamins that support cardiovascular well-being.
In conclusion, it is time to rethink palm oil's place in our diets. With its unique combination of properties, palm oil has the potential to contribute to heart health rather than harm it.
By looking beyond outdated perceptions, we can appreciate palm oil as a versatile and nutritious option in maintaining a healthy heart.
*The writer is an associate professor of human nutrition at the University of Padua, Italy New Straits Times
November 10, 2024
Indonesia eyes to become world’s palm oil price setter
Indonesia’s Ministry of Agriculture has set a target of making the country the world’s largest palm oil producer by 2025, enabling it to influence global prices of the commodity.
Jakarta (VNA) – Indonesia’s Ministry of Agriculture has set a target of making the country the world’s largest palm oil producer by 2025, enabling it to influence global prices of the commodity.
Deputy Minister of Agriculture Sudaryono said that Indonesia targets to have the capacity of setting prices as soon as possible, Indonesian news agency ANTARA reported.
To achieve this, he urged farmers and palm oil entrepreneurs to view Indonesia’s palm oil plantations as high-priority agricultural areas requiring special attention to strengthen the national economy.
He also noted that Indonesia already has the technology needed to produce high-quality oil palm seeds.
He said that Indonesia can assess the suitability of a seed for planting before it sprouts, which is important in setting a standard for Indonesian oil palm seeds.
The official said that B50 is Indonesia’s bargaining chip on the international stage. Even if other countries are not interested in the product, the country could use it domestically. The presence of B50 gives Indonesia options to optimally absorb its palm oil outputs.
He added that the Indonesian government has carefully calculated how much palm oil to export and how much to allocate for domestic use to ensure that the goods will make a great contribution to Indonesian economy. VietnamPlus
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Newly Minted Indonesian President Prabowo gets state welcome in Beijing
Beijing (ANTARA) - President Prabowo Subianto was greeted by Chinese President Xi Jinping at the Great Hall of the People in Tiananmen Square, Beijing, during a state ceremony on Saturday.
Before the ceremony, the two heads of state introduced their respective delegations.
The Indonesian delegation included Coordinating Minister for Economic Affairs Airlangga Hartarto, Foreign Minister Sugiono, Energy and Mineral Resources Minister Bahlil Lahadalia, Minister of Investment Rosan Perkasa Roeslani, and Minister of Maritime Affairs and Fisheries Sakti Wahyu Trenggono.
Deputy Minister of Defense Donny Ermawan, Deputy Minister of Higher Education, Science, and Technology Stella Christie, and Deputy Minister of Housing and Settlement Areas Fahri Hamzah also accompanied Prabowo.
The delegation also included Chief of Air Staff Air Marshal Tonny Harjono, Chief of the Naval Staff Admiral Muhammad Ali, Cabinet Secretary Teddy Indra Wijaya, and Indonesian Ambassador to China Djauhari Oratmangun.
The Chinese delegation was led by Foreign Minister Wang Yi.
After the introductions, Prabowo and Xi participated in the welcoming ceremony, during which the Indonesian national anthem, Indonesia Raya, and China's national anthem, March of the Volunteers, were played.
The two leaders then conducted a troop inspection.
They were subsequently greeted by about thirty children holding flowers and the flags of both countries, who enthusiastically shouted "Welcome" in Mandarin.
After the ceremony, Prabowo, Xi, and their respective delegations held a bilateral meeting.
During the meeting, Xi praised the peaceful government transition from former President Joko Widodo to Prabowo and expressed his eagerness to work with Indonesia under Prabowo’s leadership.
In turn, Prabowo thanked Xi for his warm welcome and expressed his appreciation for the visit.
Following the meeting, the two leaders witnessed the signing and exchange of memorandums of understanding (MOUs) on further cooperation between their countries. Antara News
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China-Indonesia cooperation gets boost
That Prabowo Subianto has chosen China as the destination for his first overseas visit after being sworn in as Indonesia's president in October shows the new Indonesian government is keen on strengthening ties with China, boosting regional cooperation and safeguarding regional security. His visit to China from Friday to Sunday is his second this year — he paid a visit to the country as president-elect in March.
During the visit in March, the Indonesian and Chinese sides reached a consensus on further deepening bilateral cooperation. Prabowo had then said that Indonesia is keen on deepening relations with China and will continue then president Joko Widodo's friendly policy toward China.
Indonesian Foreign Minister Sugiono said on Tuesday that Prabowo's visit reaffirms Jakarta's commitment to the Sino-Indonesian comprehensive strategic partnership.
The leaders of the two countries are expected to exchange views on major bilateral and international issues during Prabowo's visit and focus on deepening mutually beneficial cooperation across a wide range of sectors.
Cooperation between China, the world's second-largest and Asia's biggest economy, and Indonesia, the largest economy within ASEAN and a member of G20, has been mutually beneficial. The two sides issued a joint statement on strengthening their comprehensive strategic partnership last year, providing important guidelines for deepening cooperation in the future. In fact, Sino-Indonesian cooperation has become a model of mutually beneficial relations.
The two sides have close economic and trade ties, and the scale of bilateral trade continues to grow. China has been Indonesia's largest trading partner for 11 consecutive years, with bilateral trade in 2023 reaching $139.42 billion. China is also Indonesia's largest source of imports as well as exports destination. And the first three quarters of this year saw bilateral trade reaching $105.621 billion, up 2.5 percent year-on-year.
China is a major destination for the export of Indonesia's natural resources such as coal, palm oil, rubber and nickel ore, while Chinese mechanical and electrical products, electronics goods and textiles are popular in the Indonesian market. Also, Chinese investment in Indonesia has been growing, reaching $7.4 billion last year and making China the second-largest foreign investor in Indonesia, after Singapore.
While their cooperation to increase production capacity has been continuously upgraded, their cooperation in infrastructure has borne fruitful results, and the two countries have strengthened their mutually beneficial cooperation in traditional fields such as mining, agriculture and fisheries. China Daily
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Sarawak Dayak Oil Palm Planters Association calls for state palm-oil governing body in 2025 Sarawak Budget
KUALA LUMPUR (Nov 10): The Dayak Oil Palm Planters Association (Doppa) has called for the establishment of a palm oil governing body in Sarawak, as part of its 2025 Sarawak Budget wishlist, according to a report by Borneo Post.
The 2025 Sarawak Budget is up for tabling in the State Legislative Assembly meeting on Monday (Nov 11).
According to the report, Doppa president Napoleon R Ningkos said that Sarawak should have a specific agency to regulate and monitor all of the sector’s activities in the state, on account that the state has the largest oil palm plantation area in the country.
The report cited Napoleon in a statement, that such an agency is necessary as a body that addresses various problems related to the industry in Sarawak, especially land issues that are far different from those in Peninsular Malaysia.
Ït can monitor native customary rights (NCR) land development in a more organised way.
It can also play a role in channeling the incentives given by the federal or state government, and also as a platform to promote Sarawak’s palm oil to the global market,” added the statement by Doppa.
The statement also said that a palm oil governing body for Sarawak is important in countering all “baseless accusations hurled against the industry”, which hurts the independent smallholders, noted the report.
In view of the oil palm sector being a stable source of income for many rural communities, Napoleon was quoted saying that he hopes the 2025 Sarawak Budget would be more people-friendly, and would line up the means and measures in tackling various issues and problems. The Edge Malaysia
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FGV Sees EUDR Delay As Opportunity To Boost Sustainability Efforts With Smallholders
SUNGKAI, Nov 8 (Bernama) -- FGV Holdings Bhd sees the delay in the European Union Deforestation Regulation (EUDR) enforcement as an opportunity for the company to work on the necessary things with smallholders.
Group chief sustainability officer Nurul Hasanah Ahamed Hassain Malim said FGV will engage with smallholders in every region in phases to provide the programme and create awareness on the importance of sustainability.
“We have identified which states to go first (Johor and Pahang)… one year delay may be enough to engage, create awareness and identify those who are willing to onboard with us.
“But to get the whole supply chain, smallholders to come on board, one year is not sufficient, we need a longer time,” she told a press conference on the sideline of the media familiarisation programme, ‘A Journey Through Sustainability with FGV’.
Nurul Hasanah said the company’s current strategy is to identify those who are keen and willing to come on board with FGV and prioritises that group of smallholders.
She said FGV is encouraging smallholders to adopt environmentally sustainable practices to access larger and new markets as required by market demand such as European Union Deforestation Regulation (EUDR).
“Our (palm) oil market is not just in Malaysia, we have to go out to the international market. From what we see, the international market requires compliance with sustainability standards especially the environment.
“They are very concerned about deforestation, planting on peatland and emphasising climate agenda…so, this is an element that the market needs,” she said on the sidelines of the media familiarisation programme called “A Journey Through Sustainability with FGV” here recently.
She added that the standard has been translated into our local regulation, which is the Malaysian standard for Sustainable Palm Oil Production (MSPO).
Nurul Hasanah explained that to comply with the EUDR, smallholders must provide specific information to buyers. Without this data from smallholders, FGV finds it difficult to engage in business transactions with smallholders.
“If you follow these requirements, the price may increase slightly. If the smallholder markets in a separate market, the price is quite different,” she said.
Group director of the plantation division Borhan Bachi said the company will shift to electric vehicle (EV) power barrow by the first quarter of 2025 to replace the conventional oil palm collection method using the power barrow engine. Bernama
Indonesia eyes to become world’s palm oil price setter
Indonesia’s Ministry of Agriculture has set a target of making the country the world’s largest palm oil producer by 2025, enabling it to influence global prices of the commodity.
Jakarta (VNA) – Indonesia’s Ministry of Agriculture has set a target of making the country the world’s largest palm oil producer by 2025, enabling it to influence global prices of the commodity.
Deputy Minister of Agriculture Sudaryono said that Indonesia targets to have the capacity of setting prices as soon as possible, Indonesian news agency ANTARA reported.
To achieve this, he urged farmers and palm oil entrepreneurs to view Indonesia’s palm oil plantations as high-priority agricultural areas requiring special attention to strengthen the national economy.
He also noted that Indonesia already has the technology needed to produce high-quality oil palm seeds.
He said that Indonesia can assess the suitability of a seed for planting before it sprouts, which is important in setting a standard for Indonesian oil palm seeds.
The official said that B50 is Indonesia’s bargaining chip on the international stage. Even if other countries are not interested in the product, the country could use it domestically. The presence of B50 gives Indonesia options to optimally absorb its palm oil outputs.
He added that the Indonesian government has carefully calculated how much palm oil to export and how much to allocate for domestic use to ensure that the goods will make a great contribution to Indonesian economy. VietnamPlus
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Newly Minted Indonesian President Prabowo gets state welcome in Beijing
Beijing (ANTARA) - President Prabowo Subianto was greeted by Chinese President Xi Jinping at the Great Hall of the People in Tiananmen Square, Beijing, during a state ceremony on Saturday.
Before the ceremony, the two heads of state introduced their respective delegations.
The Indonesian delegation included Coordinating Minister for Economic Affairs Airlangga Hartarto, Foreign Minister Sugiono, Energy and Mineral Resources Minister Bahlil Lahadalia, Minister of Investment Rosan Perkasa Roeslani, and Minister of Maritime Affairs and Fisheries Sakti Wahyu Trenggono.
Deputy Minister of Defense Donny Ermawan, Deputy Minister of Higher Education, Science, and Technology Stella Christie, and Deputy Minister of Housing and Settlement Areas Fahri Hamzah also accompanied Prabowo.
The delegation also included Chief of Air Staff Air Marshal Tonny Harjono, Chief of the Naval Staff Admiral Muhammad Ali, Cabinet Secretary Teddy Indra Wijaya, and Indonesian Ambassador to China Djauhari Oratmangun.
The Chinese delegation was led by Foreign Minister Wang Yi.
After the introductions, Prabowo and Xi participated in the welcoming ceremony, during which the Indonesian national anthem, Indonesia Raya, and China's national anthem, March of the Volunteers, were played.
The two leaders then conducted a troop inspection.
They were subsequently greeted by about thirty children holding flowers and the flags of both countries, who enthusiastically shouted "Welcome" in Mandarin.
After the ceremony, Prabowo, Xi, and their respective delegations held a bilateral meeting.
During the meeting, Xi praised the peaceful government transition from former President Joko Widodo to Prabowo and expressed his eagerness to work with Indonesia under Prabowo’s leadership.
In turn, Prabowo thanked Xi for his warm welcome and expressed his appreciation for the visit.
Following the meeting, the two leaders witnessed the signing and exchange of memorandums of understanding (MOUs) on further cooperation between their countries. Antara News
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China-Indonesia cooperation gets boost
That Prabowo Subianto has chosen China as the destination for his first overseas visit after being sworn in as Indonesia's president in October shows the new Indonesian government is keen on strengthening ties with China, boosting regional cooperation and safeguarding regional security. His visit to China from Friday to Sunday is his second this year — he paid a visit to the country as president-elect in March.
During the visit in March, the Indonesian and Chinese sides reached a consensus on further deepening bilateral cooperation. Prabowo had then said that Indonesia is keen on deepening relations with China and will continue then president Joko Widodo's friendly policy toward China.
Indonesian Foreign Minister Sugiono said on Tuesday that Prabowo's visit reaffirms Jakarta's commitment to the Sino-Indonesian comprehensive strategic partnership.
The leaders of the two countries are expected to exchange views on major bilateral and international issues during Prabowo's visit and focus on deepening mutually beneficial cooperation across a wide range of sectors.
Cooperation between China, the world's second-largest and Asia's biggest economy, and Indonesia, the largest economy within ASEAN and a member of G20, has been mutually beneficial. The two sides issued a joint statement on strengthening their comprehensive strategic partnership last year, providing important guidelines for deepening cooperation in the future. In fact, Sino-Indonesian cooperation has become a model of mutually beneficial relations.
The two sides have close economic and trade ties, and the scale of bilateral trade continues to grow. China has been Indonesia's largest trading partner for 11 consecutive years, with bilateral trade in 2023 reaching $139.42 billion. China is also Indonesia's largest source of imports as well as exports destination. And the first three quarters of this year saw bilateral trade reaching $105.621 billion, up 2.5 percent year-on-year.
China is a major destination for the export of Indonesia's natural resources such as coal, palm oil, rubber and nickel ore, while Chinese mechanical and electrical products, electronics goods and textiles are popular in the Indonesian market. Also, Chinese investment in Indonesia has been growing, reaching $7.4 billion last year and making China the second-largest foreign investor in Indonesia, after Singapore.
While their cooperation to increase production capacity has been continuously upgraded, their cooperation in infrastructure has borne fruitful results, and the two countries have strengthened their mutually beneficial cooperation in traditional fields such as mining, agriculture and fisheries. China Daily
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Sarawak Dayak Oil Palm Planters Association calls for state palm-oil governing body in 2025 Sarawak Budget
KUALA LUMPUR (Nov 10): The Dayak Oil Palm Planters Association (Doppa) has called for the establishment of a palm oil governing body in Sarawak, as part of its 2025 Sarawak Budget wishlist, according to a report by Borneo Post.
The 2025 Sarawak Budget is up for tabling in the State Legislative Assembly meeting on Monday (Nov 11).
According to the report, Doppa president Napoleon R Ningkos said that Sarawak should have a specific agency to regulate and monitor all of the sector’s activities in the state, on account that the state has the largest oil palm plantation area in the country.
The report cited Napoleon in a statement, that such an agency is necessary as a body that addresses various problems related to the industry in Sarawak, especially land issues that are far different from those in Peninsular Malaysia.
Ït can monitor native customary rights (NCR) land development in a more organised way.
It can also play a role in channeling the incentives given by the federal or state government, and also as a platform to promote Sarawak’s palm oil to the global market,” added the statement by Doppa.
The statement also said that a palm oil governing body for Sarawak is important in countering all “baseless accusations hurled against the industry”, which hurts the independent smallholders, noted the report.
In view of the oil palm sector being a stable source of income for many rural communities, Napoleon was quoted saying that he hopes the 2025 Sarawak Budget would be more people-friendly, and would line up the means and measures in tackling various issues and problems. The Edge Malaysia
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FGV Sees EUDR Delay As Opportunity To Boost Sustainability Efforts With Smallholders
SUNGKAI, Nov 8 (Bernama) -- FGV Holdings Bhd sees the delay in the European Union Deforestation Regulation (EUDR) enforcement as an opportunity for the company to work on the necessary things with smallholders.
Group chief sustainability officer Nurul Hasanah Ahamed Hassain Malim said FGV will engage with smallholders in every region in phases to provide the programme and create awareness on the importance of sustainability.
“We have identified which states to go first (Johor and Pahang)… one year delay may be enough to engage, create awareness and identify those who are willing to onboard with us.
“But to get the whole supply chain, smallholders to come on board, one year is not sufficient, we need a longer time,” she told a press conference on the sideline of the media familiarisation programme, ‘A Journey Through Sustainability with FGV’.
Nurul Hasanah said the company’s current strategy is to identify those who are keen and willing to come on board with FGV and prioritises that group of smallholders.
She said FGV is encouraging smallholders to adopt environmentally sustainable practices to access larger and new markets as required by market demand such as European Union Deforestation Regulation (EUDR).
“Our (palm) oil market is not just in Malaysia, we have to go out to the international market. From what we see, the international market requires compliance with sustainability standards especially the environment.
“They are very concerned about deforestation, planting on peatland and emphasising climate agenda…so, this is an element that the market needs,” she said on the sidelines of the media familiarisation programme called “A Journey Through Sustainability with FGV” here recently.
She added that the standard has been translated into our local regulation, which is the Malaysian standard for Sustainable Palm Oil Production (MSPO).
Nurul Hasanah explained that to comply with the EUDR, smallholders must provide specific information to buyers. Without this data from smallholders, FGV finds it difficult to engage in business transactions with smallholders.
“If you follow these requirements, the price may increase slightly. If the smallholder markets in a separate market, the price is quite different,” she said.
Group director of the plantation division Borhan Bachi said the company will shift to electric vehicle (EV) power barrow by the first quarter of 2025 to replace the conventional oil palm collection method using the power barrow engine. Bernama
November 09, 2024
Climate And Environmental Governance: Scaling up sustainability impact in the palm sector
By Joseph D’Cruz and Yen Hun Sung / The Edge Malaysia
Two decades ago, visionary leaders in our industry created a global platform for a sustainable palm oil industry. In the years since, the Roundtable on Sustainable Palm Oil (RSPO) has catalysed a transformation in sustainability standards and practices in global vegetable oils. But global sustainability challenges are still growing, with existential consequences for our natural resources, food systems and the workers and communities at the heart of our production system. Global temperature records are being shattered, with the last nine years being the hottest since record keeping began in 1880. The protection of our remaining forests is now a civilisational imperative. And the livelihood and food security needs of our communities continue to grow.
We are acutely aware of the need to rethink our approaches. The solutions that power our success today will not overcome the problems of tomorrow. Demonstrating sustainability impact in the coming years will require a combination of strong standards, robust verification, and transparent, evidence-based claims. The recent revision of the Roundtable on Sustainable Palm Oil Standards is our first step in this direction.
Evolving the RSPO standards
For nearly two decades, the RSPO standards have been the gold standard for responsible, ethical and sustainable palm oil production and trade. Every five years, these standards undergo a rigorous, stakeholder-led review process to maintain the relevance and credibility of Certified Sustainable Palm Oil and associated products in a sustainability-driven global market.
This revision cycle of the RSPO Principles and Criteria (P&C) and the Independent Smallholder (ISH) Standard began in June 2022. It was an exhaustive multi-stakeholder process of review and refinement in response to emerging sustainability challenges. With input from smallholders, community activists, industry practitioners, auditors and external experts, the revision focused on enhancing clarity, auditability, implementability and market relevance, while strengthening our impact on emerging priorities around People, Planet and Prosperity. More The EdgeMY
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Palm Oil Market to Grow by USD 57 Billion from 2024-2028, as Health Awareness Boosts Demand with AI Driving Market Transformation - Technavio
NEW YORK, Nov. 8, 2024 /PRNewswire/ -- Report with the AI impact on market trends - The global palm oil market size is estimated to grow by USD 57 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 10.07% during the forecast period. Increasing consumer awareness regarding health benefits of palm oil is driving market growth, with a trend towards new growth avenue for palm oil in biodiesel. However, concerns about deforestation and plant diversity losses poses a challenge.Key market players include Agarwal Industries P Ltd., Alami Commodities Sdn Bhd, Alfa Laval AB, Archer Daniels Midland Co., Asian Agri, Best Industry Group, Cargill Inc., Charleston Holdings Pte Ltd., Crowe LLP, Godrej and Boyce Manufacturing Co. Ltd., Gujarat Ambuja Exports Ltd., IOI Corp. Berhad, Kuala Lumpur Kepong Berhad, Musim Mas Group, Nisshin OilliO Group Ltd., Oil Palm India Ltd., Patanjali Ayurved Ltd., Sime Darby Plantation Berhad, Sinar Mas, and Univanich Palm Oil Public Co. Ltd.. PR Newswire
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Palm Kernel Oil insufficient for EU market under EUDR
The European oleochemical market will have insufficient palm kernel oil (PKO) supply under the EU Deforestation Regulation (EUDR), delegates heard today at the 20th Indonesian Palm Oil Conference and 2025 Price Outlook (IPOC 2024) in Nusa Dua, Bali.
The cost of compliance with the EUDR will tighten PKO supply for EU markets as fewer palm oil producers are expected to comply with the regulation, further increasing prices into the EU bloc, according to Glenauk Economics managing director Julian McGill.
Additionally, an excessive investment in fatty alcohols production in Indonesia will limit the country's exports, further tightening global supply, according to McGill. Indonesia currently consumes 70pc of its PKO production, McGill said.
The EUDR requires mandatory due diligence from operators and trading firms selling and importing palm oil and its derivatives into the EU bloc, including PKO. Firms must ensure that products sold in the EU have not contributed to deforestation or forest degradation.
Although the regulation is originally expected to take effect from 1 January 2025, the European Commission recently proposed an extra 12 months "phasing-in time" for implementation, which will be voted on by the EU parliament, probably on 14 November.
But "the problem with the EUDR will not be solved by postponing the regulation, as European demand for PKO will remain excessive compared to that for palm oil," Julian McGill said during the conference. To fulfil European demand for PKO, producers will have to generate more EUDR compliant palm oil than actually needed, according to McGill.
The average yield of PKO from fresh palm oil fruit bunches is 2-5pc.
McGill also highlighted that another important problem to be solved for the EUDR to be correctly implemented is the complexity of traceability requirements for palm and palm kernel oil, because they are liquid goods, unlike wood, coffee and cocoa beans.
By Carolina A. Palma. Argus Media
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Chemists find easier way to produce biodiesel from waste oil
by Jasmin Galvan, University of California - Santa Cruz
UC Santa Cruz chemists have discovered a new way to produce biodiesel from waste oil that both simplifies the process and requires relatively mild heat. This discovery has the potential to make the alternative fuel source much more appealing to the massive industrial sectors that are the backbone of the nation's economy.
In 2022, the U.S. transportation sector alone used about 3 million barrels of diesel per day, accounting for about 75% of total consumption of the fuel in this country. That same year, diesel use accounted for about 10% of total energy-related CO2 emissions in the United States, according to the federal Energy Information Administration.
While some companies have turned towards electric vehicles to reduce their carbon footprint, the vast majority of fleets still run on diesel—in part, because biodiesel production is difficult, energy intensive, and so, has slowed adoption. Of all the energy sources used by the U.S. transportation sector in 2022, biofuels accounted for just 6%.
In their study, published on October 3 in the journal Energy & Fuels, lead author Kevin Lofgren details a new way to turn used vegetable oil into biodiesel that involves sodium tetramethoxyborate (NaB(OMe)4). This chemical, used to make the active ingredient that reacts with oil to make biodiesel, is considered unique because it allows the biofuel to be easily separated from the byproducts of production—by simply pouring them off.
Another benefit is the resulting byproduct can be used to regenerate the most expensive ingredient in the production process. And last but not least, the reaction can be completed in under an hour at temperatures as low as 40°C (104°F)—saving energy and money. More Phys Org
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IPOC 2024: PHC Positions DRC as The Next Frontier for Sustainable Palm Oil Industry
he Democratic Republic of Congo (DRC) has been participated in the 20th Indonesian Palm Oil Conference (IPOC 2024) in Bali on Friday. Monique Gieskes, CEO of Plantations et Huileries du Congo (PHC), the country's leading palm oil company, invited participants to consider the DRC as a land of exceptional opportunity for the palm oil industry and as an investment destination of choice. "We at PHC stand ready to work with you to make these opportunities a reality," Gieskes said. During the IPOC 2024, Gieskes has presented PHC's vision and commitments for the sustainable development of the palm oil industry in the DRC. As the country's leading palm oil company, PHC aims to position the DRC as a new frontier for environmentally friendly palm oil based on sustainable and responsible practices. The event was also attended by Adewale Adeosun, Chairman of Kuramo Capital Management, PHC's major shareholder, and his partner and Member of PHC's Board of Directors Shaka Kariuki.
Click to read: https://www.thejakartapost.com/business/2024/11/09/ipoc-2024-phc-positions-drc-as-the-next-frontier-for-sustainable-palm-oil-industry.html.
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Malaysia palm oil futures seen around and above RM5,000 per tonne until mid-2025, analyst Mistry says
By Bernadette Christina Munthe / Reuters
NUSA DUA, Indonesia (Nov 8): Malaysian benchmark palm oil futures are expected to trade above and around RM5,000 per tonne until June 2025, supported by tight supply and bullish demand, leading industry analyst Dorab Mistry said on Friday.
Global vegetable oil demand in the 2024-2025 season (Nov-Oct) is expected to grow by 6.5 million tonnes, while supply is seen increasing by three million tonnes, Mistry told the Indonesia Palm Oil Conference in Bali.
Palm oil supply in 2024-2025 is expected to increase by 2.5 million tonnes and soya oil supply was seen rising by 3.5 million tonnes, while he said the supply of rapeseed oil and others is expected to drop.
Indonesia's plan to increase the mandated percentage of palm oil in biodiesel is among the top factors to watch in the next season, said Mistry, who has argued the market has been too bullish on the plan and made palm oil prices uncompetitive.
Boosts to demand around Lunar New Year and Ramadan are also expected to support prices in the first quarter of 2025, he said.
Uploaded by Chng Shear Lane/ The EdgeMy
Climate And Environmental Governance: Scaling up sustainability impact in the palm sector
By Joseph D’Cruz and Yen Hun Sung / The Edge Malaysia
Two decades ago, visionary leaders in our industry created a global platform for a sustainable palm oil industry. In the years since, the Roundtable on Sustainable Palm Oil (RSPO) has catalysed a transformation in sustainability standards and practices in global vegetable oils. But global sustainability challenges are still growing, with existential consequences for our natural resources, food systems and the workers and communities at the heart of our production system. Global temperature records are being shattered, with the last nine years being the hottest since record keeping began in 1880. The protection of our remaining forests is now a civilisational imperative. And the livelihood and food security needs of our communities continue to grow.
We are acutely aware of the need to rethink our approaches. The solutions that power our success today will not overcome the problems of tomorrow. Demonstrating sustainability impact in the coming years will require a combination of strong standards, robust verification, and transparent, evidence-based claims. The recent revision of the Roundtable on Sustainable Palm Oil Standards is our first step in this direction.
Evolving the RSPO standards
For nearly two decades, the RSPO standards have been the gold standard for responsible, ethical and sustainable palm oil production and trade. Every five years, these standards undergo a rigorous, stakeholder-led review process to maintain the relevance and credibility of Certified Sustainable Palm Oil and associated products in a sustainability-driven global market.
This revision cycle of the RSPO Principles and Criteria (P&C) and the Independent Smallholder (ISH) Standard began in June 2022. It was an exhaustive multi-stakeholder process of review and refinement in response to emerging sustainability challenges. With input from smallholders, community activists, industry practitioners, auditors and external experts, the revision focused on enhancing clarity, auditability, implementability and market relevance, while strengthening our impact on emerging priorities around People, Planet and Prosperity. More The EdgeMY
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Palm Oil Market to Grow by USD 57 Billion from 2024-2028, as Health Awareness Boosts Demand with AI Driving Market Transformation - Technavio
NEW YORK, Nov. 8, 2024 /PRNewswire/ -- Report with the AI impact on market trends - The global palm oil market size is estimated to grow by USD 57 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 10.07% during the forecast period. Increasing consumer awareness regarding health benefits of palm oil is driving market growth, with a trend towards new growth avenue for palm oil in biodiesel. However, concerns about deforestation and plant diversity losses poses a challenge.Key market players include Agarwal Industries P Ltd., Alami Commodities Sdn Bhd, Alfa Laval AB, Archer Daniels Midland Co., Asian Agri, Best Industry Group, Cargill Inc., Charleston Holdings Pte Ltd., Crowe LLP, Godrej and Boyce Manufacturing Co. Ltd., Gujarat Ambuja Exports Ltd., IOI Corp. Berhad, Kuala Lumpur Kepong Berhad, Musim Mas Group, Nisshin OilliO Group Ltd., Oil Palm India Ltd., Patanjali Ayurved Ltd., Sime Darby Plantation Berhad, Sinar Mas, and Univanich Palm Oil Public Co. Ltd.. PR Newswire
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Palm Kernel Oil insufficient for EU market under EUDR
The European oleochemical market will have insufficient palm kernel oil (PKO) supply under the EU Deforestation Regulation (EUDR), delegates heard today at the 20th Indonesian Palm Oil Conference and 2025 Price Outlook (IPOC 2024) in Nusa Dua, Bali.
The cost of compliance with the EUDR will tighten PKO supply for EU markets as fewer palm oil producers are expected to comply with the regulation, further increasing prices into the EU bloc, according to Glenauk Economics managing director Julian McGill.
Additionally, an excessive investment in fatty alcohols production in Indonesia will limit the country's exports, further tightening global supply, according to McGill. Indonesia currently consumes 70pc of its PKO production, McGill said.
The EUDR requires mandatory due diligence from operators and trading firms selling and importing palm oil and its derivatives into the EU bloc, including PKO. Firms must ensure that products sold in the EU have not contributed to deforestation or forest degradation.
Although the regulation is originally expected to take effect from 1 January 2025, the European Commission recently proposed an extra 12 months "phasing-in time" for implementation, which will be voted on by the EU parliament, probably on 14 November.
But "the problem with the EUDR will not be solved by postponing the regulation, as European demand for PKO will remain excessive compared to that for palm oil," Julian McGill said during the conference. To fulfil European demand for PKO, producers will have to generate more EUDR compliant palm oil than actually needed, according to McGill.
The average yield of PKO from fresh palm oil fruit bunches is 2-5pc.
McGill also highlighted that another important problem to be solved for the EUDR to be correctly implemented is the complexity of traceability requirements for palm and palm kernel oil, because they are liquid goods, unlike wood, coffee and cocoa beans.
By Carolina A. Palma. Argus Media
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Chemists find easier way to produce biodiesel from waste oil
by Jasmin Galvan, University of California - Santa Cruz
UC Santa Cruz chemists have discovered a new way to produce biodiesel from waste oil that both simplifies the process and requires relatively mild heat. This discovery has the potential to make the alternative fuel source much more appealing to the massive industrial sectors that are the backbone of the nation's economy.
In 2022, the U.S. transportation sector alone used about 3 million barrels of diesel per day, accounting for about 75% of total consumption of the fuel in this country. That same year, diesel use accounted for about 10% of total energy-related CO2 emissions in the United States, according to the federal Energy Information Administration.
While some companies have turned towards electric vehicles to reduce their carbon footprint, the vast majority of fleets still run on diesel—in part, because biodiesel production is difficult, energy intensive, and so, has slowed adoption. Of all the energy sources used by the U.S. transportation sector in 2022, biofuels accounted for just 6%.
In their study, published on October 3 in the journal Energy & Fuels, lead author Kevin Lofgren details a new way to turn used vegetable oil into biodiesel that involves sodium tetramethoxyborate (NaB(OMe)4). This chemical, used to make the active ingredient that reacts with oil to make biodiesel, is considered unique because it allows the biofuel to be easily separated from the byproducts of production—by simply pouring them off.
Another benefit is the resulting byproduct can be used to regenerate the most expensive ingredient in the production process. And last but not least, the reaction can be completed in under an hour at temperatures as low as 40°C (104°F)—saving energy and money. More Phys Org
--------
IPOC 2024: PHC Positions DRC as The Next Frontier for Sustainable Palm Oil Industry
he Democratic Republic of Congo (DRC) has been participated in the 20th Indonesian Palm Oil Conference (IPOC 2024) in Bali on Friday. Monique Gieskes, CEO of Plantations et Huileries du Congo (PHC), the country's leading palm oil company, invited participants to consider the DRC as a land of exceptional opportunity for the palm oil industry and as an investment destination of choice. "We at PHC stand ready to work with you to make these opportunities a reality," Gieskes said. During the IPOC 2024, Gieskes has presented PHC's vision and commitments for the sustainable development of the palm oil industry in the DRC. As the country's leading palm oil company, PHC aims to position the DRC as a new frontier for environmentally friendly palm oil based on sustainable and responsible practices. The event was also attended by Adewale Adeosun, Chairman of Kuramo Capital Management, PHC's major shareholder, and his partner and Member of PHC's Board of Directors Shaka Kariuki.
Click to read: https://www.thejakartapost.com/business/2024/11/09/ipoc-2024-phc-positions-drc-as-the-next-frontier-for-sustainable-palm-oil-industry.html.
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Malaysia palm oil futures seen around and above RM5,000 per tonne until mid-2025, analyst Mistry says
By Bernadette Christina Munthe / Reuters
NUSA DUA, Indonesia (Nov 8): Malaysian benchmark palm oil futures are expected to trade above and around RM5,000 per tonne until June 2025, supported by tight supply and bullish demand, leading industry analyst Dorab Mistry said on Friday.
Global vegetable oil demand in the 2024-2025 season (Nov-Oct) is expected to grow by 6.5 million tonnes, while supply is seen increasing by three million tonnes, Mistry told the Indonesia Palm Oil Conference in Bali.
Palm oil supply in 2024-2025 is expected to increase by 2.5 million tonnes and soya oil supply was seen rising by 3.5 million tonnes, while he said the supply of rapeseed oil and others is expected to drop.
Indonesia's plan to increase the mandated percentage of palm oil in biodiesel is among the top factors to watch in the next season, said Mistry, who has argued the market has been too bullish on the plan and made palm oil prices uncompetitive.
Boosts to demand around Lunar New Year and Ramadan are also expected to support prices in the first quarter of 2025, he said.
Uploaded by Chng Shear Lane/ The EdgeMy
November 08, 2024
Imogen Fanning and Zoological Society of London Struggling to Stay Relevant with Weak Assessments on Palm Oil Sustainability
The palm oil sector has made significant advances in commitments to zero deforestation but evidence of implementation is widely lacking, reveals our latest assessment.
Published today, this year’s ZSL SPOTT palm oil assessment marks a decade of evaluating progress in the industry’s environmental, social, and governance (ESG) public disclosures. While it reveals steady progress in companies adopting zero deforestation commitments, crucial gaps in implementation threaten progress towards the UN COP26 global goal of ending and reversing deforestation by 2030.
The team behind the report is urging the palm oil sector to urgently enhance transparency and accountability – including from supply chain industry giants such as Ferrero, Mars and Nestle - in order to reach this vital goal that will help humanity simultaneously address the biodiversity and climate crises.
Palm oil and deforestation
For decades, unsustainable expansion of palm oil plantations have decimated biodiversity in tropical countries, including Indonesia and Malaysia – the world’s largest palm oil producers. Following a greater need for transparency and eliminating deforestation in the industry, SPOTT began to track companies’ deforestation policies and practices in 2014, initially tracking companies’ various approaches to addressing deforestation. By 2017, SPOTT refined this to focus on clear zero deforestation commitments – at that time, only 29 out of 50 companies had adopted such pledges. Today, 51 out of 81 assessed companies have adopted zero deforestation commitments. ZSL
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Indonesia optimistic about palm oil industry’s future amid global, domestic challenges
Deputy Minister of Agriculture, Sudaryono, expressed optimism about the future of Indonesia’s palm oil industry, emphasizing its potential to continue contributing to the national economy.
Addressing the opening of the 2024 Indonesian Palm Oil Conference (IPOC) recently held at The Westin Resort, Bali, Sudaryono highlighted Indonesia’s global leadership in palm oil production, accounting for 25 percent of the world’s vegetable oil and 59 percent of global palm oil output.
Sudaryono noted that the industry provides 16 million jobs, including for small-scale farmers.
He also pointed to the Indonesian government’s commitment to renewable energy, particularly through its mandate for 35 percent palm oil-based biodiesel (B35).
The B35 program, part of President Prabowo Subianto’s administration’s initiatives, aims to reduce fossil fuel imports and greenhouse gas emissions.
Sudaryono reported that the B35 mandate saved over US$7.9 billion in fossil fuel imports in 2023 and laid the groundwork for a future B50 target, which would see biodiesel at 50 percent palm oil. Indonesia Business Post
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Indonesia’s Palm Oil Industry Welcomes EU’s Deforestation Rule Delay to 2025
The Indonesian palm oil industry welcomes the European Union’s decision to postpone its deforestation regulation by a year, now set for enforcement on Dec. 31, 2025. The delay offers time for industry adaptation, allowing palm oil businesses to comply with new rules, and address transparency in supply chains. The European Commission’s formal announcement is expected next week.
Eddy Martono, Chairman of the Indonesian Palm Oil Association (Gapki), said this delay alleviates industry concerns. The sector, he said, is already highly sensitive to fluctuations in energy prices, global demand, weather, and evolving trade policies.
“We welcome this decision as it grants the necessary time to prepare and implement full compliance,” he said at the opening of the 20th Indonesian Palm Oil Conference and 2025 Price Outlook (IPOC 2024) in Nusa Dua, Bali, on Thursday. IPOC 2024, themed “Seizing Opportunities Amidst Global Uncertainty,” is bringing together stakeholders to discuss these industry dynamics.
The European Union Deforestation Regulation (EUDR), which became law in mid-2023, mandates that products such as beef, cocoa, coffee, palm oil, and rubber must be “deforestation-free” to enter the EU market. These goods cannot be sourced from land cleared after 2020, replacing the previous EU Timber Regulation. Initially, EUDR compliance was set to begin on Dec. 30, 2024, for large businesses, with smaller enterprises to follow a year later. UKAgroconsult
Imogen Fanning and Zoological Society of London Struggling to Stay Relevant with Weak Assessments on Palm Oil Sustainability
The palm oil sector has made significant advances in commitments to zero deforestation but evidence of implementation is widely lacking, reveals our latest assessment.
Published today, this year’s ZSL SPOTT palm oil assessment marks a decade of evaluating progress in the industry’s environmental, social, and governance (ESG) public disclosures. While it reveals steady progress in companies adopting zero deforestation commitments, crucial gaps in implementation threaten progress towards the UN COP26 global goal of ending and reversing deforestation by 2030.
The team behind the report is urging the palm oil sector to urgently enhance transparency and accountability – including from supply chain industry giants such as Ferrero, Mars and Nestle - in order to reach this vital goal that will help humanity simultaneously address the biodiversity and climate crises.
Palm oil and deforestation
For decades, unsustainable expansion of palm oil plantations have decimated biodiversity in tropical countries, including Indonesia and Malaysia – the world’s largest palm oil producers. Following a greater need for transparency and eliminating deforestation in the industry, SPOTT began to track companies’ deforestation policies and practices in 2014, initially tracking companies’ various approaches to addressing deforestation. By 2017, SPOTT refined this to focus on clear zero deforestation commitments – at that time, only 29 out of 50 companies had adopted such pledges. Today, 51 out of 81 assessed companies have adopted zero deforestation commitments. ZSL
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Indonesia optimistic about palm oil industry’s future amid global, domestic challenges
Deputy Minister of Agriculture, Sudaryono, expressed optimism about the future of Indonesia’s palm oil industry, emphasizing its potential to continue contributing to the national economy.
Addressing the opening of the 2024 Indonesian Palm Oil Conference (IPOC) recently held at The Westin Resort, Bali, Sudaryono highlighted Indonesia’s global leadership in palm oil production, accounting for 25 percent of the world’s vegetable oil and 59 percent of global palm oil output.
Sudaryono noted that the industry provides 16 million jobs, including for small-scale farmers.
He also pointed to the Indonesian government’s commitment to renewable energy, particularly through its mandate for 35 percent palm oil-based biodiesel (B35).
The B35 program, part of President Prabowo Subianto’s administration’s initiatives, aims to reduce fossil fuel imports and greenhouse gas emissions.
Sudaryono reported that the B35 mandate saved over US$7.9 billion in fossil fuel imports in 2023 and laid the groundwork for a future B50 target, which would see biodiesel at 50 percent palm oil. Indonesia Business Post
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Indonesia’s Palm Oil Industry Welcomes EU’s Deforestation Rule Delay to 2025
The Indonesian palm oil industry welcomes the European Union’s decision to postpone its deforestation regulation by a year, now set for enforcement on Dec. 31, 2025. The delay offers time for industry adaptation, allowing palm oil businesses to comply with new rules, and address transparency in supply chains. The European Commission’s formal announcement is expected next week.
Eddy Martono, Chairman of the Indonesian Palm Oil Association (Gapki), said this delay alleviates industry concerns. The sector, he said, is already highly sensitive to fluctuations in energy prices, global demand, weather, and evolving trade policies.
“We welcome this decision as it grants the necessary time to prepare and implement full compliance,” he said at the opening of the 20th Indonesian Palm Oil Conference and 2025 Price Outlook (IPOC 2024) in Nusa Dua, Bali, on Thursday. IPOC 2024, themed “Seizing Opportunities Amidst Global Uncertainty,” is bringing together stakeholders to discuss these industry dynamics.
The European Union Deforestation Regulation (EUDR), which became law in mid-2023, mandates that products such as beef, cocoa, coffee, palm oil, and rubber must be “deforestation-free” to enter the EU market. These goods cannot be sourced from land cleared after 2020, replacing the previous EU Timber Regulation. Initially, EUDR compliance was set to begin on Dec. 30, 2024, for large businesses, with smaller enterprises to follow a year later. UKAgroconsult
November 07, 2024
Indonesia confident palm oil production can be increased to meet biofuel demand
NUSA DUA, Indonesia :Indonesia's chief economic minister said on Thursday he is confident palm oil production can be increased in coming years to meet the country's rising demand for energy as the mandatory biodiesel blend is poised to expand.
Indonesia's government plans to expand the mandatory blend of biodiesel to contain 40 per cent of palm oil-based fuel in 2025 - called B40 - from 35 per cent currently, and is expected to increase the mix further.
"Indonesia's biodiesel policy is primarily aimed at reducing dependence on imported fossil fuels, fostering a more sustainable energy mix, and supporting the palm oil industry," Airlangga Hartarto, the country's coordinating minister for economic affairs told participants at the Indonesia Palm Oil Conference.
The plan by the world's biggest exporter of the vegetable oil has propped up global palm oil prices as outbound shipments are seen dropping amid expectations of sluggish output.
Implementation of the B40 biofuel mandate may result in palm oil used for energy rising to 13.9 million metric tons in 2025, from the estimated 11 million tons needed this year with B35, Indonesia's biofuel producers association APROBI had previously estimated.
The government is looking to increase the biodiesel mix to 50 per cent in 2028, Edi Wibowo, a director at the energy ministry told the same conference, adding that the ministry is also eyeing a 1 per cent blending mandate in jet fuel in 2027.
Indonesia's newly inaugurated president Prabowo Subianto has pledged to reach self-sufficiency in food and energy.
REPLANTING EFFORTS More Channel News Asia
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Brazil’s push to expand biofuels is central to its strategy to “drive the decarbonisation agenda” and build a robust “bioeconomy,” setting the stage for this to become a major focus at the upcoming UN Climate Change Conference (COP 30) in Brazil in November 2025.
Brazil’s biofuel ‘revolution’
During a ceremony at the Brasilia Air Base in October, president Luiz Inácio Lula da Silva declared:
Brazil will lead the world’s energy revolution
This statement came as he signed the Fuel of the Future Law, a set of initiatives aimed at advancing the country’s bioenergy sector. Lula added:
Lula announced a rise in ethanol blending with gasoline from 22% to 27%, with a target of 35% by 2030. Biodiesel blending, currently at 14%, will increase by one percentage point annually, aiming to reach 20% by March 2030.
Biofuel mandates have generated a relentless demand for crops, including sugarcane, corn, soybean, and palm oil.
Ethanol and biodiesel production in Brazil reached nearly 43bn litres in 2023, according to the 2024 Brazilian Statistical Yearbook on Oil, Natural Gas, and Biofuels, published by Brazil’s National Agency for Petroleum, Natural Gas, and Biofuels (ANP).
Biofuels for energy independence More TheCanary
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Ukraine President Zelensky signed anti palm oil bill
President Volodymyr Zelensky signed bill №5148, which restricts the use of palm oil in food products, particularly in baby food. This was reported by Member of Parliament Yaroslav Zheleznyak.
Bill №5148 limits the use of hydrogenated vegetable fats and oils (including palm oil) in the production of certain products, namely:
The law also introduces fines for relevant violations, as well as clear and understandable labeling of food products containing palm oil.
The maximum content of trans fatty acids in food products should be no more than 2 grams per 100 grams of the total amount of all fats in the product, and the labeling must clearly indicate what type of trans fat it contains.
The Harmfulness of Palm Oil
Member of the Ukrainian Gastroenterological Association Alla Kurylets detailed the harm of palm oil: "Palm oil contains many saturated (unhealthy) fats, which can accumulate in liver cells leading to fibrosis and then cirrhosis. Moreover, saturated fats negatively affect the cardiovascular system as they disrupt cholesterol metabolism, promoting plaque formation that clogs vessels, increasing the risk of a stroke."
Despite this, it is profitable for manufacturers to use palm oil. Deputy Head of the Food Safety and Veterinary Medicine Department and Head of the State Control Department of the State Consumer Service in Kyiv Yuriy Myrkeev explained why this is the case. 112 ua
Disclaimer: This article while reporting on a real piece of legislation in the Ukraine, appears to be poorly reported
Indonesia confident palm oil production can be increased to meet biofuel demand
NUSA DUA, Indonesia :Indonesia's chief economic minister said on Thursday he is confident palm oil production can be increased in coming years to meet the country's rising demand for energy as the mandatory biodiesel blend is poised to expand.
Indonesia's government plans to expand the mandatory blend of biodiesel to contain 40 per cent of palm oil-based fuel in 2025 - called B40 - from 35 per cent currently, and is expected to increase the mix further.
"Indonesia's biodiesel policy is primarily aimed at reducing dependence on imported fossil fuels, fostering a more sustainable energy mix, and supporting the palm oil industry," Airlangga Hartarto, the country's coordinating minister for economic affairs told participants at the Indonesia Palm Oil Conference.
The plan by the world's biggest exporter of the vegetable oil has propped up global palm oil prices as outbound shipments are seen dropping amid expectations of sluggish output.
Implementation of the B40 biofuel mandate may result in palm oil used for energy rising to 13.9 million metric tons in 2025, from the estimated 11 million tons needed this year with B35, Indonesia's biofuel producers association APROBI had previously estimated.
The government is looking to increase the biodiesel mix to 50 per cent in 2028, Edi Wibowo, a director at the energy ministry told the same conference, adding that the ministry is also eyeing a 1 per cent blending mandate in jet fuel in 2027.
Indonesia's newly inaugurated president Prabowo Subianto has pledged to reach self-sufficiency in food and energy.
REPLANTING EFFORTS More Channel News Asia
--------
Brazil’s push to expand biofuels is central to its strategy to “drive the decarbonisation agenda” and build a robust “bioeconomy,” setting the stage for this to become a major focus at the upcoming UN Climate Change Conference (COP 30) in Brazil in November 2025.
Brazil’s biofuel ‘revolution’
During a ceremony at the Brasilia Air Base in October, president Luiz Inácio Lula da Silva declared:
Brazil will lead the world’s energy revolution
This statement came as he signed the Fuel of the Future Law, a set of initiatives aimed at advancing the country’s bioenergy sector. Lula added:
Lula announced a rise in ethanol blending with gasoline from 22% to 27%, with a target of 35% by 2030. Biodiesel blending, currently at 14%, will increase by one percentage point annually, aiming to reach 20% by March 2030.
Biofuel mandates have generated a relentless demand for crops, including sugarcane, corn, soybean, and palm oil.
Ethanol and biodiesel production in Brazil reached nearly 43bn litres in 2023, according to the 2024 Brazilian Statistical Yearbook on Oil, Natural Gas, and Biofuels, published by Brazil’s National Agency for Petroleum, Natural Gas, and Biofuels (ANP).
Biofuels for energy independence More TheCanary
--------
Ukraine President Zelensky signed anti palm oil bill
President Volodymyr Zelensky signed bill №5148, which restricts the use of palm oil in food products, particularly in baby food. This was reported by Member of Parliament Yaroslav Zheleznyak.
Bill №5148 limits the use of hydrogenated vegetable fats and oils (including palm oil) in the production of certain products, namely:
The law also introduces fines for relevant violations, as well as clear and understandable labeling of food products containing palm oil.
The maximum content of trans fatty acids in food products should be no more than 2 grams per 100 grams of the total amount of all fats in the product, and the labeling must clearly indicate what type of trans fat it contains.
The Harmfulness of Palm Oil
Member of the Ukrainian Gastroenterological Association Alla Kurylets detailed the harm of palm oil: "Palm oil contains many saturated (unhealthy) fats, which can accumulate in liver cells leading to fibrosis and then cirrhosis. Moreover, saturated fats negatively affect the cardiovascular system as they disrupt cholesterol metabolism, promoting plaque formation that clogs vessels, increasing the risk of a stroke."
Despite this, it is profitable for manufacturers to use palm oil. Deputy Head of the Food Safety and Veterinary Medicine Department and Head of the State Control Department of the State Consumer Service in Kyiv Yuriy Myrkeev explained why this is the case. 112 ua
Disclaimer: This article while reporting on a real piece of legislation in the Ukraine, appears to be poorly reported
November 06, 2024
Europe's chocolate groups support exclusion of smallholders to prevent further investments in sustainable supply chains
Europe’s chocolate groups lead opposition to EU deforestation law delay
Nestlé, Ferrero and more than 50 other companies say the uncertainty is putting investment at risk
Nestlé, Michelin and more than 50 other companies have said the EU’s decision to delay its landmark deforestation law is causing uncertainty across business and putting investment at risk.
The law, which was due to come into force on December 30, bans goods from being sold within the bloc which are made with commodities grown on deforested land from seven sectors including cocoa, palm oil, rubber and wood.
But it has been fiercely contested by producing countries such as Indonesia, Brazil and Malaysia, prompting the European Commission to say last month that it would postpone its enforcement by a year.
Member states had already approved the delay in October, with the European parliament vote due later this month. The new vote has opened the door for MEPs to add amendments, and leading companies, especially those reliant on cocoa and rubber imports, are concerned about reopening the legislation to changes.
In joint statement on Wednesday — the deadline for MEPs to submit amendments — companies warned of further uncertainty over the legislation.
Francesco Tramontin, vice-president of global public affairs at Ferrero, said “avoiding potential reopening of the regulation” was key to safeguarding the preparations companies had already made and to pushing them to continue investing in more sustainable practices.
Marc Genot, managing director of SIPH, the biggest producer of natural rubber in Africa, said that the rubber sector had already invested in mapping tools and funds to support smallholders in order to comply with the rules. He said that the delay had created “instability across the entire supply chain”.
Bart Vandewaetere, vice-president of ESG engagement at Nestlé Europe, told the FT that the Swiss multinational had “worked to comply with the regulation’s current provisions” and its suppliers had taken “significant steps towards compliance”.
“We encourage policymakers to maintain its core framework without reopening it,” he added.
Other companies opposing the delay include tyre companies Michelin and Pirelli, the supermarket chain Carrefour and the consumer companies Mars and Unilever.
According to a report from the Thai bank Krungsri this year, the deforestation law will impact around $401bn of EU trade annually — around 5.5 per cent of all imports into the bloc in 2022.
In its own impact assessment for the law, the commission estimated that the cost of compliance could amount to between $170mn to $2.5bn per year.
Heavy lobbying from particularly palm oil and soya bean exporting countries led the European Commission to postpone the introduction of the law. Companies in those sectors also voiced concern that Brussels had yet to provide guidance for how to comply with the rules.
S&P Global warned in August last year that the introduction of the law was “likely to reconfigure trade and supply chains across deforestation-linked commodities over the next decade”. Financial Times
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Activists attempt to derail RSPO effort to expand influence on the ground
New standard for ethical palm oil faces backlash before it’s even issued
JAKARTA — The world’s top certification body for ethical palm oil is set to vote on a major new standard aimed at balancing conservation goals with the practicalities of the palm oil industry.
This revised standard, expected to pass at the annual general assembly of the Roundtable on Sustainable Palm Oil (RSPO) on Nov. 13 in Bangkok, would be the first update since 2018, revising key environmental and social safeguards for the industry.
The RSPO says the new standard retains the safeguards of previous standards and introduces improvements to make them easier to implement and audit.
However, some NGOs say the new standard could open loopholes for deforestation, notably through the RSPO’s introduction of a new definition for high-carbon stock (HCS) forest that diverges from the globally recognized HCS Approach (HCSA) toolkit.
Critics warn that this approach may pave the way for more palm oil expansion into forests, as the RSPO definition prioritizes the carbon value of forests over their broader ecological role, potentially allowing companies to convert certain forest areas that would have been protected under the HCSA toolkit.
The RSPO’s retention of its existing remediation and compensation procedure (RaCP), which allows forest clearing beyond designated cutoff dates if compensated for, has also prompted concerns. Greenpeace International senior campaign adviser Grant Rosoman said this may weaken the RSPO’s stance against deforestation and limit compliance with zero-deforestation regulations like the European Union’s Deforestation Regulation (EUDR).
“In its revised Principles and Criteria the RSPO has scored an ‘own goal’ by weakening its commitment to ensuring No Deforestation, its very raison d’être,” he said in a statement. Mongabay
Europe's chocolate groups support exclusion of smallholders to prevent further investments in sustainable supply chains
Europe’s chocolate groups lead opposition to EU deforestation law delay
Nestlé, Ferrero and more than 50 other companies say the uncertainty is putting investment at risk
Nestlé, Michelin and more than 50 other companies have said the EU’s decision to delay its landmark deforestation law is causing uncertainty across business and putting investment at risk.
The law, which was due to come into force on December 30, bans goods from being sold within the bloc which are made with commodities grown on deforested land from seven sectors including cocoa, palm oil, rubber and wood.
But it has been fiercely contested by producing countries such as Indonesia, Brazil and Malaysia, prompting the European Commission to say last month that it would postpone its enforcement by a year.
Member states had already approved the delay in October, with the European parliament vote due later this month. The new vote has opened the door for MEPs to add amendments, and leading companies, especially those reliant on cocoa and rubber imports, are concerned about reopening the legislation to changes.
In joint statement on Wednesday — the deadline for MEPs to submit amendments — companies warned of further uncertainty over the legislation.
Francesco Tramontin, vice-president of global public affairs at Ferrero, said “avoiding potential reopening of the regulation” was key to safeguarding the preparations companies had already made and to pushing them to continue investing in more sustainable practices.
Marc Genot, managing director of SIPH, the biggest producer of natural rubber in Africa, said that the rubber sector had already invested in mapping tools and funds to support smallholders in order to comply with the rules. He said that the delay had created “instability across the entire supply chain”.
Bart Vandewaetere, vice-president of ESG engagement at Nestlé Europe, told the FT that the Swiss multinational had “worked to comply with the regulation’s current provisions” and its suppliers had taken “significant steps towards compliance”.
“We encourage policymakers to maintain its core framework without reopening it,” he added.
Other companies opposing the delay include tyre companies Michelin and Pirelli, the supermarket chain Carrefour and the consumer companies Mars and Unilever.
According to a report from the Thai bank Krungsri this year, the deforestation law will impact around $401bn of EU trade annually — around 5.5 per cent of all imports into the bloc in 2022.
In its own impact assessment for the law, the commission estimated that the cost of compliance could amount to between $170mn to $2.5bn per year.
Heavy lobbying from particularly palm oil and soya bean exporting countries led the European Commission to postpone the introduction of the law. Companies in those sectors also voiced concern that Brussels had yet to provide guidance for how to comply with the rules.
S&P Global warned in August last year that the introduction of the law was “likely to reconfigure trade and supply chains across deforestation-linked commodities over the next decade”. Financial Times
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Activists attempt to derail RSPO effort to expand influence on the ground
New standard for ethical palm oil faces backlash before it’s even issued
- The Roundtable on Sustainable Palm Oil (RSPO) is expected to issue a new standard for its member companies to abide by when it holds its annual general meeting next week.
- The new standard, an update to the existing guidelines issued in 2018, brings improvements in environmental and social safeguards, according to the RSPO.
- But advocacy groups say it introduces loopholes that could allow for greater forest loss, including a new definition of what constitutes high-carbon stock forests, a dispensation for deforestation on Indigenous lands, and allowing deforestation as long as it’s compensated for.
- The RSPO has refuted these interpretations, saying the new standard is designed to be even more stringent than the current one and that undoing the progress it’s made would be “ill-advised.”
JAKARTA — The world’s top certification body for ethical palm oil is set to vote on a major new standard aimed at balancing conservation goals with the practicalities of the palm oil industry.
This revised standard, expected to pass at the annual general assembly of the Roundtable on Sustainable Palm Oil (RSPO) on Nov. 13 in Bangkok, would be the first update since 2018, revising key environmental and social safeguards for the industry.
The RSPO says the new standard retains the safeguards of previous standards and introduces improvements to make them easier to implement and audit.
However, some NGOs say the new standard could open loopholes for deforestation, notably through the RSPO’s introduction of a new definition for high-carbon stock (HCS) forest that diverges from the globally recognized HCS Approach (HCSA) toolkit.
Critics warn that this approach may pave the way for more palm oil expansion into forests, as the RSPO definition prioritizes the carbon value of forests over their broader ecological role, potentially allowing companies to convert certain forest areas that would have been protected under the HCSA toolkit.
The RSPO’s retention of its existing remediation and compensation procedure (RaCP), which allows forest clearing beyond designated cutoff dates if compensated for, has also prompted concerns. Greenpeace International senior campaign adviser Grant Rosoman said this may weaken the RSPO’s stance against deforestation and limit compliance with zero-deforestation regulations like the European Union’s Deforestation Regulation (EUDR).
“In its revised Principles and Criteria the RSPO has scored an ‘own goal’ by weakening its commitment to ensuring No Deforestation, its very raison d’être,” he said in a statement. Mongabay
November 05, 2024
Ditch Butter for Good: Expert Lists Healthier Vegan Oils You Need to Try
Butter is high in saturated fat content and can elevate heart disease risk. Here are some healthier vegan options that you can try.
If you've ever found yourself torn between enjoying a buttery delight and worrying about your heart health, you're not alone. Butter is delicious, but it's high in saturated fats that can raise cholesterol and impact heart health when consumed in excess. The good news is that there are healthier, plant-based oils that can offer a tasty, heart-friendly alternative. We spoke to our expert Dr Varun Bansal, Consultant Cardiac Surgeon, Indraprastha Apollo Hospitals, New Delhi, who listed vegan alternative oils to butter to keep your health in check without compromising the flavour.
"Butter is a popular dairy product made by churning cream to separate butterfat from buttermilk. It is commonly used for cooking and baking and is a source of vitamins A, D, and E. However, it is high in saturated fats and calories, which can be linked to heart disease, especially for those with heart conditions," said Dr Bansal.
A study published in Nature Medicine revealed that diets rich in plant-based unsaturated fats, rather than saturated animal fats, were linked to a lower incidence of type 2 diabetes and cardiovascular disease. OnlyMyHealth
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Unilever India to Protect Shareholders with Calibrated Price Increases Despite Govt Plea to Protect Consumers from Inflation
Hindustan Unilever India (HUL) has announced plans to implement ‘calibrated price increases’ in light of inflationary pressures leading to significant cost hikes in palm oil and tea. Food Navigator Asia
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Godrej vs Hindustan Unilever: Brands face off over palm oil content in soaps
Mumbai: Godrej Consumer Products said it will not compromise on its soap quality by reducing palm oil, hitting back at Hindustan Unilever (HUL), which slashed content of palm oil and its derivatives in soaps by 25% to offset volatility in commodity prices. Economic Times
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Unilever faces new risk as India's consumers turn pickier, more demanding
India's personal-care sector is estimated to become a $33 billion market by 2027 from $20 billion in 2022, according to Redseer Management Consulting Pvt
The largest consumer company in the world’s most populous nation has provided everyday products from detergent to instant coffee to Indians for decades.
Now Hindustan Unilever Ltd. is seeing its fortunes flag as an increasingly sophisticated consumer class with disposable incomes demands more. The Indian unit of Unilever Plc is battling a slowing rate of growth in revenue and profits while its share price is lagging.
India’s elite classes are becoming pickier consumers, fueling the success of organic personal-care brands backed by slick social media marketing campaigns. The rise of companies like local upstart Honasa Consumer Ltd, and the inroads made by global names including Estee Lauder Companies Inc. and Clinique Laboratories LLC, is forcing Hindustan Unilever to spend more on product development and advertising.
The company’s challenges mirror those of other consumer-goods giants, such as Procter & Gamble Co., L’Oreal SA and its London-based parent, which in recent years have had to acquire the niche brands taking market share from their in-house businesses.
‘Challenger Brands’ Business Standard
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EU-Mercosur trade deal could be 'fair,' Šefčovič promises in confirmation hearing
Grilled by MEPs on the trade deal with Latin American countries, Slovakia’s Commissioner-designate defended a deal that would satisfy opponents demanding insurances for farmers and transparency.
The contentious EU-Mercosur free trade deal could be "concluded on very very fair ground," Maroš Šefčovič said on Monday as he underwent his confirmation hearing to be the new European Commissioner for Trade and Economic Security.
Šefčovič, a long-running Commissioner, played it safe and stuck to the script as he answered over three hours of questions at the European Parliament.
Grilled mainly by French MEPs over the Mercosur agreement, as France is the main opponent to the deal, Šefčovič said that the negotiations were at the technical level and had not reached a political level yet.
The trade deal, which has been discussed for more than two decades with Mercosur countries - Argentina, Brazil, Paraguay and Uruguay -, aims to lift trade barriers such as tariffs to create a free trade area covering 780 million people and annual exports and imports worth between €40 and €45 billion.
“Fair ground” for European opponents to the deal means taking into account farmers’ demands and environmental insurances that the Europeans want to see secured in the deal.
While Mercosur countries are resisting in the negotiations on environmental standards, Šefčovič said that EU’s trading partners sometimes see environment as a unilateral request from the EU, perceived sometimes as “regulatory imperialism” and that the EU had to do "more outreach".
Several months after Europe underwent massive farmers’ protests, the Slovak insisted that the EU is “hypervigilant” to defend EU’s interest. Euronews
Ditch Butter for Good: Expert Lists Healthier Vegan Oils You Need to Try
Butter is high in saturated fat content and can elevate heart disease risk. Here are some healthier vegan options that you can try.
If you've ever found yourself torn between enjoying a buttery delight and worrying about your heart health, you're not alone. Butter is delicious, but it's high in saturated fats that can raise cholesterol and impact heart health when consumed in excess. The good news is that there are healthier, plant-based oils that can offer a tasty, heart-friendly alternative. We spoke to our expert Dr Varun Bansal, Consultant Cardiac Surgeon, Indraprastha Apollo Hospitals, New Delhi, who listed vegan alternative oils to butter to keep your health in check without compromising the flavour.
"Butter is a popular dairy product made by churning cream to separate butterfat from buttermilk. It is commonly used for cooking and baking and is a source of vitamins A, D, and E. However, it is high in saturated fats and calories, which can be linked to heart disease, especially for those with heart conditions," said Dr Bansal.
A study published in Nature Medicine revealed that diets rich in plant-based unsaturated fats, rather than saturated animal fats, were linked to a lower incidence of type 2 diabetes and cardiovascular disease. OnlyMyHealth
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Unilever India to Protect Shareholders with Calibrated Price Increases Despite Govt Plea to Protect Consumers from Inflation
Hindustan Unilever India (HUL) has announced plans to implement ‘calibrated price increases’ in light of inflationary pressures leading to significant cost hikes in palm oil and tea. Food Navigator Asia
--------
Godrej vs Hindustan Unilever: Brands face off over palm oil content in soaps
Mumbai: Godrej Consumer Products said it will not compromise on its soap quality by reducing palm oil, hitting back at Hindustan Unilever (HUL), which slashed content of palm oil and its derivatives in soaps by 25% to offset volatility in commodity prices. Economic Times
---------
Unilever faces new risk as India's consumers turn pickier, more demanding
India's personal-care sector is estimated to become a $33 billion market by 2027 from $20 billion in 2022, according to Redseer Management Consulting Pvt
The largest consumer company in the world’s most populous nation has provided everyday products from detergent to instant coffee to Indians for decades.
Now Hindustan Unilever Ltd. is seeing its fortunes flag as an increasingly sophisticated consumer class with disposable incomes demands more. The Indian unit of Unilever Plc is battling a slowing rate of growth in revenue and profits while its share price is lagging.
India’s elite classes are becoming pickier consumers, fueling the success of organic personal-care brands backed by slick social media marketing campaigns. The rise of companies like local upstart Honasa Consumer Ltd, and the inroads made by global names including Estee Lauder Companies Inc. and Clinique Laboratories LLC, is forcing Hindustan Unilever to spend more on product development and advertising.
The company’s challenges mirror those of other consumer-goods giants, such as Procter & Gamble Co., L’Oreal SA and its London-based parent, which in recent years have had to acquire the niche brands taking market share from their in-house businesses.
‘Challenger Brands’ Business Standard
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EU-Mercosur trade deal could be 'fair,' Šefčovič promises in confirmation hearing
Grilled by MEPs on the trade deal with Latin American countries, Slovakia’s Commissioner-designate defended a deal that would satisfy opponents demanding insurances for farmers and transparency.
The contentious EU-Mercosur free trade deal could be "concluded on very very fair ground," Maroš Šefčovič said on Monday as he underwent his confirmation hearing to be the new European Commissioner for Trade and Economic Security.
Šefčovič, a long-running Commissioner, played it safe and stuck to the script as he answered over three hours of questions at the European Parliament.
Grilled mainly by French MEPs over the Mercosur agreement, as France is the main opponent to the deal, Šefčovič said that the negotiations were at the technical level and had not reached a political level yet.
The trade deal, which has been discussed for more than two decades with Mercosur countries - Argentina, Brazil, Paraguay and Uruguay -, aims to lift trade barriers such as tariffs to create a free trade area covering 780 million people and annual exports and imports worth between €40 and €45 billion.
“Fair ground” for European opponents to the deal means taking into account farmers’ demands and environmental insurances that the Europeans want to see secured in the deal.
While Mercosur countries are resisting in the negotiations on environmental standards, Šefčovič said that EU’s trading partners sometimes see environment as a unilateral request from the EU, perceived sometimes as “regulatory imperialism” and that the EU had to do "more outreach".
Several months after Europe underwent massive farmers’ protests, the Slovak insisted that the EU is “hypervigilant” to defend EU’s interest. Euronews
November 04, 2024
Sustainable trade could be an opportunity for Indonesia. WEF shows how
At present, Indonesia is less integrated into global value chains compared to regional peers, but it is a leading soft commodity exporter. Many of these commodities like palm oil, rubber and paper are linked to sustainable development – providing employment for smallholder farmers, but also associated with the risks of deforestation and rising emissions from land-use change.
Overall, Indonesia is a net exporter when it comes to emissions embedded in trade. Yet, as highlighted by the Centre for Strategic and International Studies (CSIS), it is also one of the main investment destinations in ASEAN. Indonesia could leverage this investment for a green growth agenda. It could target activities that both decarbonize existing exports and build up a position in new low-carbon value chains. More WEF
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MSPO certification is important for the country's palm oil industry
REMBAU: The Ministry of Agriculture and Commodities will try to ensure that all industry players including small growers involved in the palm oil industry obtain Malaysian Sustainable Palm Oil (MSPO) certification.
The minister, Datuk Seri Johari Abdul Ghani said, they would be given training and guidance to produce palm oil that is capable of meeting global demand, especially in Europe.
"So if someone wants to buy, a foreign country wants to import palm oil, he will choose Malaysia because not only are we leaving, Indonesia is also coming out, Thailand is also coming out, so he will look for us looking for Palm Oil rather than Malaysia, he will benefit us if we comply in terms of MSPO."
He said this after attending the closing ceremony for the Titiwangsa Youth Leadership Community Malaysia Madani Leadership State Training Program here today.
The addition of this certification is an important step to ensure that palm oil products exported from Malaysia are from sources that practice efficient production practices.
Johari said, compliance with (MSPO) will not only improve Malaysia's reputation in the global market, but will also help preserve the environment and biodiversity.
He said, by implementing the terbabit initiative, Malaysia could become a major player in the palm oil industry.
The media previously reported that the Malaysian Palm Oil Board (MPOB) is targeting more than 90 percent of free smallholder planters to receive (MSPO) by the end of next year. BuletinTV3
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Sustainable trade could be an opportunity for Indonesia. WEF shows how
- Indonesia aims to be a high-income country by 2045, with trade and investment important tools for policy-makers to deliver growth.
- The country is a top exporter of soft commodities linked to sustainable development, but also associated with deforestation risks and emissions.
- Indonesia could leverage investment for a growth agenda, targeting activities that decarbonize exports, provide sustainable livelihoods and build up a role in low-carbon value chains.
At present, Indonesia is less integrated into global value chains compared to regional peers, but it is a leading soft commodity exporter. Many of these commodities like palm oil, rubber and paper are linked to sustainable development – providing employment for smallholder farmers, but also associated with the risks of deforestation and rising emissions from land-use change.
Overall, Indonesia is a net exporter when it comes to emissions embedded in trade. Yet, as highlighted by the Centre for Strategic and International Studies (CSIS), it is also one of the main investment destinations in ASEAN. Indonesia could leverage this investment for a green growth agenda. It could target activities that both decarbonize existing exports and build up a position in new low-carbon value chains. More WEF
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MSPO certification is important for the country's palm oil industry
REMBAU: The Ministry of Agriculture and Commodities will try to ensure that all industry players including small growers involved in the palm oil industry obtain Malaysian Sustainable Palm Oil (MSPO) certification.
The minister, Datuk Seri Johari Abdul Ghani said, they would be given training and guidance to produce palm oil that is capable of meeting global demand, especially in Europe.
"So if someone wants to buy, a foreign country wants to import palm oil, he will choose Malaysia because not only are we leaving, Indonesia is also coming out, Thailand is also coming out, so he will look for us looking for Palm Oil rather than Malaysia, he will benefit us if we comply in terms of MSPO."
He said this after attending the closing ceremony for the Titiwangsa Youth Leadership Community Malaysia Madani Leadership State Training Program here today.
The addition of this certification is an important step to ensure that palm oil products exported from Malaysia are from sources that practice efficient production practices.
Johari said, compliance with (MSPO) will not only improve Malaysia's reputation in the global market, but will also help preserve the environment and biodiversity.
He said, by implementing the terbabit initiative, Malaysia could become a major player in the palm oil industry.
The media previously reported that the Malaysian Palm Oil Board (MPOB) is targeting more than 90 percent of free smallholder planters to receive (MSPO) by the end of next year. BuletinTV3
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November 03, 2024
International Trade: Can Europe Avoid Self-Inflicted Injuries That Stifle growth?
by Paul Driessen, of the U.S-based Heartland Institute, one of the world’s leading free-market think tanks, and author of books and articles on energy, environmental, climate and human rights issues
As the EU looks ahead to the next five-year term of the new European Commission and Parliament, officials talk about playing “its full part on the world stage in geopolitics”.
Europe and the world heard it all before, in 2019 when Ursula von der Leyen promised a ‘geopolitical Commission’ at the start of her first term in Brussels. It did not happen then, and it doesn’t look much more likely to happen now.
To be fair, it was a challenging five years.
The unprecedented Covid pandemic kept the EU focused on domestic questions of healthcare, lockdowns, debt financing and student learning. The Russian invasion of Ukraine shortly after ensured that European policy priorities remained largely regional.
But possibly the most significant blow to the dreams of a ‘geopolitical Commission’ was entirely self-inflicted: the EU’s obsession with the utopian Green Deal.
The regulatory regime of the Green Deal undercut EU competitiveness, particularly in agriculture and industry. As a result, the international ambitions of the European Commission were reduced to a domestic, protectionist agenda designed to hobble potential competitors by erecting non-tariff barriers affecting – and infuriating – Europe’s trading partners, whether they compete on productivity or cost.
Citing climate, the EU demanded that the rest of the world adopt its own crippling regulations – or risk losing access to its markets.
Brussels’ recent U-Turn on the EU Deforestation Regulation (EUDR) – which would force EU’s trading partners to certify the ecological purity of their entire supply chains – demonstrated that the law was a huge miscalculation in both climate and trade policymaking.
Even the famously green Biden-Harris administration opposed the Brussels proposals as too onerous and too hastily introduced. Imagine having to document and geolocate every cocoa bean in a bar of chocolate, every particle of coffee in an espresso, every chip of wood in a particle board.
Only Brussels would concoct such a thing.
Even Germany, the richest economy in the Union and arguably the most vocal advocate of planet-care in Europe, balked at the prospect of implementing the EUDR.
If geopolitics truly matters to the EU in the coming term, the EU Commissioner will go back to core principles on trade, not trade suppression. That means identifying the biggest opportunities in terms of markets; Europe, India and ASEAN are obvious examples.
Equally obvious, alienating the USA, the biggest and wealthiest market in the world, capable of self-reliance and an in-kind response to hostile trade regulations, does not seem like a smart idea.
The European Union has an interest in advancing international commerce, rather than wantonly raising regulatory barriers that developing countries cannot afford and developed economies won’t accept.
European economies are exporters – EU jobs and financial systems depend on selling high-value goods and services. A mercantilist, capricious, quasi-lawless global economy, such as that preferred by China, is not in Europe’s interest.
First, the starting point must be liberalizing, rather than raising barriers, and working with allied trading partners that have similar principles. And yet, the EUDR is a perfect example of a regulation where the EU has actively worked against its closest partners – not to mention that it been disastrous for the EU’s international image.
Indeed, outside of several single-issue NGOs and a handful of unelected EU officials, the Commission would be hard-pressed to find any EUDR proponents.
Second, trade policy needs to be strategic, not dogmatic. China and Russia, most obviously, are significant threats to the global economic order, and Europe has a responsibility to mitigate such threats.
Weaponising trade is justified when the goal is preventing carnage in Ukraine, or stopping surveillance equipment from being installed in EU networks. Similarly, deliberate attempts to dump subsidized products or flood European markets should not be confused with free trade and must be addressed accordingly. In such cases, a smart, deliberate, targeted response is warranted.
The problem with the Green Deal’s EUDR lies in its indiscriminate, dogmatic application of punitive economic measures, including against allies like Malaysia, Mexico, Thailand and even the United States. Moreover, products targeted under the EU Deforestation Regulation (such as rubber, coffee, cocoa and palm oil) are key parts of Europe’s own supply chains
Palm oil from Malaysia, for example, is an ingredient in some of Europe’s most famous food and cosmetic brands. Besides, Malaysia already has its own mandatory sustainable palm oil standard, so there is no need to impose additional punitive EU regulations.
Similarly,Brussels shouldn’t impose deforestation restrictions on cobalt mining for wind energy and battery technologies – or on cutting trees for wind and solar farms and transmission lines – in trade-partner countries that are trying to comply with EU climate rules.
International cooperation would be a good third principle for the EU to adopt. While rhetoric in Brussels is cheap, over the past five years the EU engaged in more bullying than cooperation, both toward its own member states and toward partners outside the Union.
In trade, unilateral and punitive barriers of the Green Deal too often beat dialogue and cooperation.
This approach has not worked. It has enraged everyone from European and American businesses to Asian small farmers – understandably so. There is no reason for the EU to reject Malaysia’s Sustainable Palm Oil standards (MSPO), just because of an EUDR.
Other countries have analogous standards for their major commodities, which should be considered for acceptance. There is no reason not to address sustainability and environmental progress as part of a free trade, voluntary partnership or mutual recognition agreement – rather than through trade barriers and irrational regulations.
The new Commission can no doubt expect its share of the unexpected during its five-year term. But it should at least try to avoid self-inflicted injuries. Choosing economic growth over anti-competitive regulations would be a good start. EU Today
Paul Driessen, is author of Eco-Imperialism: Green power, black death (Ṍko-Imperialismus: Grüne Poitikmit tödlichen Folgen in German; Eco-Imperialismo: Potere verde, Morte nera in Italian; Eco-Imperialismo: La pobreze es el peor contaminante in Spanish)
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Ukraine seeks Malaysia as ASEAN gateway for UAV partnerships
KUALA LUMPUR: Ukraine views Malaysia as a key entry point for expanding collaborations in the ASEAN region’s unmanned aerial vehicle (UAV) and drone sectors, said Ukraine’s deputy economy minister, Taras Kachka.
Noting Malaysia’s strong digital economy, Kachka also said that the country is the most advanced in ASEAN regarding infrastructure, semiconductor spare parts supply and skilled manpower.
Kachka remarked that discussions on potential collaborations are ongoing between companies from both nations.
“The advancement of UAV in Ukraine is naturally connected to the defence and security, but (the UAV usage) was (also) strong for civil purposes such as agriculture.
“Now, the usage of UAVs in Ukraine is so high that it grabs all the engineers’ resources... that is why the knowledge developed in Ukraine is used in Malaysia.
“That is why we are going to support the cooperation in this area since we need strong supply chains of spare parts, we also can indicate in terms of engineers’ development, that might be useful for modernised the products,“ he told a press conference here today. The SunMY
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Johor, Japan's Fuji Oil to develop RM500 mil palm oil refinery in Kota Tinggi
ISKANDAR PUTERI: Johor has signed an agreement with Japanese food industry leader Fuji Oil Holdings Inc. (Fuji Oil) to build a RM500 million specialized palm oil and fats refinery in Pasir Logok, Kota Tinggi.
The agreement to develop the project, which is part of the Integrated Sustainable Palm Oil Complex (ISPOC), was signed between Johor Plantations Group Bhd (JPG) and Fuji Oil's subsidiary, Fuji Oil Asia Pte. Ltd.
The agreement was signed during a recent visit by the Johor state delegation, led by Johor Menteri Besar Datuk Onn Hafiz Ghazi and representatives from the state government, to Fuji Oil Holdings' facilities in Osaka, Japan.
The delegation toured manufacturing sites, tank terminals, and a refinery plant to observe production processes firsthand.
The tour included a closer look at Fuji Oil's chocolate production line, showcasing products made from palm oil-derived ingredients supplied by Fuji Oil, which are widely sold in supermarkets and convenience stores.
Onn Hafiz, in a post on his Facebook page, said the ISPOC refinery, which is expected to be completed by the middle of 2026, will bring advanced refining capabilities to Johor, aligning with sustainable practices in palm oil production.
He added that the collaboration also aims to foster local workforce development, with discussions initiated on specialised training and skill-building programmes for Johor's labour force to meet industry demands and improve competitiveness,
"We believe this partnership will benefit both Fuji Oil and Johor Plantations Group, not only advancing food production and processing but also contributing to the economic growth and sustainability of Johor," he said. New Straits Times
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Yes Minister! Palm oil drives GDP growth, rural wealth creation in Sarawak
SARAWAK holds the record for being the state with the largest land areas planted with oil palm.
In 2023, the size of the planted area for oil palm in Sarawak was approximately 1.62 million hectares, a slight increase compared to the number recorded in 2021.
The acreage accounts for 8.6 per cent of the total Malaysian oil palm-planted areas, followed by Sabah with 1.51 million hectares, or 26.6 per cent. Oil palm-planted area in Peninsular Malaysia amounted to 2.54 million hectares, or 44.8 per cent.
The oil palm industry in Sarawak contributes significantly to the state’s gross domestic product (GDP). In 2021, oil palm contributed 68 per cent of Sarawak’s GDP in the agriculture sector.
It is expected to add US$3.6 billion to the state’s GDP by 2030. It is also expected to create up to 70,000 new jobs in Sarawak.
Since 2015, Malaysia’s oil palm industry’s performance has remained stable and positive. Malaysia exported around 25 million tonnes of palm oil and palm-based products in 2022 and the country’s palm oil industry was valued at around RM137 billion, contributing RM35 billion to the total GDP.
Malaysia is currently the second largest producer of palm oil in the world, and it currently accounts for 23 per cent of world palm oil production and 31 per cent of world exports. In all this, Sarawak oil palm industry takes centrestage and is a key driver in strengthening and stabilising the sector’s contribution to the GDP.
Oil palm is regarded as the most efficient oil-bearing crop in the world, requiring only 0.28 hectares of land to produce one tonne of oil, compared to 2.24, 1.49, and 1.37 hectares for soybean, sunflower, and rapeseed, respectively. This was based on the findings of several studies revealed by the Malaysian Palm Oil Council (MPOC).
In addition to its superior economic competitiveness, oil palm’s high yield qualities may be viewed as a guarantee of successful returns. They characterise the economics of the oil palm industry.
Rural wealth creation
Since wealth is the stock of assets that can contribute to people’s well-being, increasing wealth is important for increasing well-being.
However, wealth creation in aggregate may not improve the well-being of all people in a community. This depends upon the distribution of wealth ownership and benefits among community members and whether the social benefits of the investment exceed the social costs.
Although increases in aggregate wealth may not be sufficient to improve the well-being of everyone in a community, increasing wealth is necessary to sustainably increase well-being. The philosophy of ‘wealth creation’ is generally central to the plantation development policies and plans that seek to diversify income and business opportunities for the rural community, especially longhouse communities with significant Native Customary Rights (NCR) land assets, and contribute to enhancing their living standard and ushering them into the mainstream of modern economy.
Yes, Minister! Increasing wealth is crucial for boosting social and economic well-being since it is derived from locally produced assets like land and agricultural products, which may enhance people’s quality of life.
Furthermore, long-term solutions to poverty and the rising desire for higher social pursuits necessitate the efforts to develop and use money efficiently, as people’s income and consumption prospects are dependent on their wealth.
Participation in oil palm plantations has also caused many rural populations to abandon traditional agricultural methods, which were largely ineffective and did not previously offer a steady source of revenue.
The independent cultivators in particular have been willing to forgo their traditional way of farming, including dependence on ecosystem services such as river water supply and natural forest products, in return for substantial economic returns from oil palm cultivation.
With growth and development of these rural centres, the state benefitted from the ever increasing economic wealth generated, both directly and indirectly from the palm oil industry’s rise.
Hence, what unfolds is the planned growth of the rural economy and the palm oil contribution to the wealth of the rural community.
The Sarawak government has assisted to the growth of the palm oil industry through joint ventures with private companies and also infrastructures like roads, airports, ports and other amenities
In return, the sale of palm oil from Sarawak generates revenues for the state through sales tax, land tax and corporate taxes.
The benefits arising from the cultivation of oil palms are numerous, both directly and indirectly, especially from the spillover effects like increasing demands for goods and services, which are all contributing to the growth of the rural areas and the state in general.
Departure from traditional livelihood
Long before the availability of infrastructure and public utilities and the arrival of oil palm, the living conditions might not be not favourable and much of this was attributed to geographical disadvantage faced by the longhouse community.
But the conditions turned out to be a motivation of sorts that drove the local residents to venture beyond their traditional sphere and seek new opportunities in order to earn higher income and upgrade their living standard.
Oil palm arrived about two decades ago and offered new hope. It emerged as a gamechanger and paved the way for a prospective future.
The experience of the longhouse community in Sebauh, Bintulu, bears testimony to this.
The oil palm plantation development in Sebauh is managed by Ta Ann Pelita Silas Sdn Bhd (TAPS), a joint-venture company where the shareholders are Ta Ann Pelita Silas Plantation Sdn Bhd (60 per cent), Land Custody and Development Authority or PELITA, the acronym in Bahasa Malaysia (10 per cent), and the participants from the Sebauh longhouse community (30 per cent).
The modernising experience of the Sebauh longhouse community reinforces some of the existing literature that oil palm development plays a significant role in alleviating poverty and providing a better standard of living to many rural communities.
However, the processes of inclusion and exclusion from this development depend on the ability of the local villagers to adopt oil palm cultivation as a new livelihood strategy – an issue that had been amicably resolved following consultations among the stakeholders.
There do not appear to be many viable alternative livelihood pathways besides the oil palm sector for the impacted longhouse community.
The main drivers for development are road constructions to these rural communities where oil palms are cultivated, resulting in accessibility and spur even more agricultural activities as well as support industries for these developments.
The emergence of several sizable estates in Sarawak’s rural regions has led to the quick expansion of the nearby rural centres, which serve as the primary suppliers for the mills and other new estates’ needs.
To meet the ever-increasing need of the estate workers, new complementary enterprises have also appeared in these rural centres. The Borneo Post
International Trade: Can Europe Avoid Self-Inflicted Injuries That Stifle growth?
by Paul Driessen, of the U.S-based Heartland Institute, one of the world’s leading free-market think tanks, and author of books and articles on energy, environmental, climate and human rights issues
As the EU looks ahead to the next five-year term of the new European Commission and Parliament, officials talk about playing “its full part on the world stage in geopolitics”.
Europe and the world heard it all before, in 2019 when Ursula von der Leyen promised a ‘geopolitical Commission’ at the start of her first term in Brussels. It did not happen then, and it doesn’t look much more likely to happen now.
To be fair, it was a challenging five years.
The unprecedented Covid pandemic kept the EU focused on domestic questions of healthcare, lockdowns, debt financing and student learning. The Russian invasion of Ukraine shortly after ensured that European policy priorities remained largely regional.
But possibly the most significant blow to the dreams of a ‘geopolitical Commission’ was entirely self-inflicted: the EU’s obsession with the utopian Green Deal.
The regulatory regime of the Green Deal undercut EU competitiveness, particularly in agriculture and industry. As a result, the international ambitions of the European Commission were reduced to a domestic, protectionist agenda designed to hobble potential competitors by erecting non-tariff barriers affecting – and infuriating – Europe’s trading partners, whether they compete on productivity or cost.
Citing climate, the EU demanded that the rest of the world adopt its own crippling regulations – or risk losing access to its markets.
Brussels’ recent U-Turn on the EU Deforestation Regulation (EUDR) – which would force EU’s trading partners to certify the ecological purity of their entire supply chains – demonstrated that the law was a huge miscalculation in both climate and trade policymaking.
Even the famously green Biden-Harris administration opposed the Brussels proposals as too onerous and too hastily introduced. Imagine having to document and geolocate every cocoa bean in a bar of chocolate, every particle of coffee in an espresso, every chip of wood in a particle board.
Only Brussels would concoct such a thing.
Even Germany, the richest economy in the Union and arguably the most vocal advocate of planet-care in Europe, balked at the prospect of implementing the EUDR.
If geopolitics truly matters to the EU in the coming term, the EU Commissioner will go back to core principles on trade, not trade suppression. That means identifying the biggest opportunities in terms of markets; Europe, India and ASEAN are obvious examples.
Equally obvious, alienating the USA, the biggest and wealthiest market in the world, capable of self-reliance and an in-kind response to hostile trade regulations, does not seem like a smart idea.
The European Union has an interest in advancing international commerce, rather than wantonly raising regulatory barriers that developing countries cannot afford and developed economies won’t accept.
European economies are exporters – EU jobs and financial systems depend on selling high-value goods and services. A mercantilist, capricious, quasi-lawless global economy, such as that preferred by China, is not in Europe’s interest.
First, the starting point must be liberalizing, rather than raising barriers, and working with allied trading partners that have similar principles. And yet, the EUDR is a perfect example of a regulation where the EU has actively worked against its closest partners – not to mention that it been disastrous for the EU’s international image.
Indeed, outside of several single-issue NGOs and a handful of unelected EU officials, the Commission would be hard-pressed to find any EUDR proponents.
Second, trade policy needs to be strategic, not dogmatic. China and Russia, most obviously, are significant threats to the global economic order, and Europe has a responsibility to mitigate such threats.
Weaponising trade is justified when the goal is preventing carnage in Ukraine, or stopping surveillance equipment from being installed in EU networks. Similarly, deliberate attempts to dump subsidized products or flood European markets should not be confused with free trade and must be addressed accordingly. In such cases, a smart, deliberate, targeted response is warranted.
The problem with the Green Deal’s EUDR lies in its indiscriminate, dogmatic application of punitive economic measures, including against allies like Malaysia, Mexico, Thailand and even the United States. Moreover, products targeted under the EU Deforestation Regulation (such as rubber, coffee, cocoa and palm oil) are key parts of Europe’s own supply chains
Palm oil from Malaysia, for example, is an ingredient in some of Europe’s most famous food and cosmetic brands. Besides, Malaysia already has its own mandatory sustainable palm oil standard, so there is no need to impose additional punitive EU regulations.
Similarly,Brussels shouldn’t impose deforestation restrictions on cobalt mining for wind energy and battery technologies – or on cutting trees for wind and solar farms and transmission lines – in trade-partner countries that are trying to comply with EU climate rules.
International cooperation would be a good third principle for the EU to adopt. While rhetoric in Brussels is cheap, over the past five years the EU engaged in more bullying than cooperation, both toward its own member states and toward partners outside the Union.
In trade, unilateral and punitive barriers of the Green Deal too often beat dialogue and cooperation.
This approach has not worked. It has enraged everyone from European and American businesses to Asian small farmers – understandably so. There is no reason for the EU to reject Malaysia’s Sustainable Palm Oil standards (MSPO), just because of an EUDR.
Other countries have analogous standards for their major commodities, which should be considered for acceptance. There is no reason not to address sustainability and environmental progress as part of a free trade, voluntary partnership or mutual recognition agreement – rather than through trade barriers and irrational regulations.
The new Commission can no doubt expect its share of the unexpected during its five-year term. But it should at least try to avoid self-inflicted injuries. Choosing economic growth over anti-competitive regulations would be a good start. EU Today
Paul Driessen, is author of Eco-Imperialism: Green power, black death (Ṍko-Imperialismus: Grüne Poitikmit tödlichen Folgen in German; Eco-Imperialismo: Potere verde, Morte nera in Italian; Eco-Imperialismo: La pobreze es el peor contaminante in Spanish)
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Ukraine seeks Malaysia as ASEAN gateway for UAV partnerships
KUALA LUMPUR: Ukraine views Malaysia as a key entry point for expanding collaborations in the ASEAN region’s unmanned aerial vehicle (UAV) and drone sectors, said Ukraine’s deputy economy minister, Taras Kachka.
Noting Malaysia’s strong digital economy, Kachka also said that the country is the most advanced in ASEAN regarding infrastructure, semiconductor spare parts supply and skilled manpower.
Kachka remarked that discussions on potential collaborations are ongoing between companies from both nations.
“The advancement of UAV in Ukraine is naturally connected to the defence and security, but (the UAV usage) was (also) strong for civil purposes such as agriculture.
“Now, the usage of UAVs in Ukraine is so high that it grabs all the engineers’ resources... that is why the knowledge developed in Ukraine is used in Malaysia.
“That is why we are going to support the cooperation in this area since we need strong supply chains of spare parts, we also can indicate in terms of engineers’ development, that might be useful for modernised the products,“ he told a press conference here today. The SunMY
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Johor, Japan's Fuji Oil to develop RM500 mil palm oil refinery in Kota Tinggi
ISKANDAR PUTERI: Johor has signed an agreement with Japanese food industry leader Fuji Oil Holdings Inc. (Fuji Oil) to build a RM500 million specialized palm oil and fats refinery in Pasir Logok, Kota Tinggi.
The agreement to develop the project, which is part of the Integrated Sustainable Palm Oil Complex (ISPOC), was signed between Johor Plantations Group Bhd (JPG) and Fuji Oil's subsidiary, Fuji Oil Asia Pte. Ltd.
The agreement was signed during a recent visit by the Johor state delegation, led by Johor Menteri Besar Datuk Onn Hafiz Ghazi and representatives from the state government, to Fuji Oil Holdings' facilities in Osaka, Japan.
The delegation toured manufacturing sites, tank terminals, and a refinery plant to observe production processes firsthand.
The tour included a closer look at Fuji Oil's chocolate production line, showcasing products made from palm oil-derived ingredients supplied by Fuji Oil, which are widely sold in supermarkets and convenience stores.
Onn Hafiz, in a post on his Facebook page, said the ISPOC refinery, which is expected to be completed by the middle of 2026, will bring advanced refining capabilities to Johor, aligning with sustainable practices in palm oil production.
He added that the collaboration also aims to foster local workforce development, with discussions initiated on specialised training and skill-building programmes for Johor's labour force to meet industry demands and improve competitiveness,
"We believe this partnership will benefit both Fuji Oil and Johor Plantations Group, not only advancing food production and processing but also contributing to the economic growth and sustainability of Johor," he said. New Straits Times
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Yes Minister! Palm oil drives GDP growth, rural wealth creation in Sarawak
SARAWAK holds the record for being the state with the largest land areas planted with oil palm.
In 2023, the size of the planted area for oil palm in Sarawak was approximately 1.62 million hectares, a slight increase compared to the number recorded in 2021.
The acreage accounts for 8.6 per cent of the total Malaysian oil palm-planted areas, followed by Sabah with 1.51 million hectares, or 26.6 per cent. Oil palm-planted area in Peninsular Malaysia amounted to 2.54 million hectares, or 44.8 per cent.
The oil palm industry in Sarawak contributes significantly to the state’s gross domestic product (GDP). In 2021, oil palm contributed 68 per cent of Sarawak’s GDP in the agriculture sector.
It is expected to add US$3.6 billion to the state’s GDP by 2030. It is also expected to create up to 70,000 new jobs in Sarawak.
Since 2015, Malaysia’s oil palm industry’s performance has remained stable and positive. Malaysia exported around 25 million tonnes of palm oil and palm-based products in 2022 and the country’s palm oil industry was valued at around RM137 billion, contributing RM35 billion to the total GDP.
Malaysia is currently the second largest producer of palm oil in the world, and it currently accounts for 23 per cent of world palm oil production and 31 per cent of world exports. In all this, Sarawak oil palm industry takes centrestage and is a key driver in strengthening and stabilising the sector’s contribution to the GDP.
Oil palm is regarded as the most efficient oil-bearing crop in the world, requiring only 0.28 hectares of land to produce one tonne of oil, compared to 2.24, 1.49, and 1.37 hectares for soybean, sunflower, and rapeseed, respectively. This was based on the findings of several studies revealed by the Malaysian Palm Oil Council (MPOC).
In addition to its superior economic competitiveness, oil palm’s high yield qualities may be viewed as a guarantee of successful returns. They characterise the economics of the oil palm industry.
Rural wealth creation
Since wealth is the stock of assets that can contribute to people’s well-being, increasing wealth is important for increasing well-being.
However, wealth creation in aggregate may not improve the well-being of all people in a community. This depends upon the distribution of wealth ownership and benefits among community members and whether the social benefits of the investment exceed the social costs.
Although increases in aggregate wealth may not be sufficient to improve the well-being of everyone in a community, increasing wealth is necessary to sustainably increase well-being. The philosophy of ‘wealth creation’ is generally central to the plantation development policies and plans that seek to diversify income and business opportunities for the rural community, especially longhouse communities with significant Native Customary Rights (NCR) land assets, and contribute to enhancing their living standard and ushering them into the mainstream of modern economy.
Yes, Minister! Increasing wealth is crucial for boosting social and economic well-being since it is derived from locally produced assets like land and agricultural products, which may enhance people’s quality of life.
Furthermore, long-term solutions to poverty and the rising desire for higher social pursuits necessitate the efforts to develop and use money efficiently, as people’s income and consumption prospects are dependent on their wealth.
Participation in oil palm plantations has also caused many rural populations to abandon traditional agricultural methods, which were largely ineffective and did not previously offer a steady source of revenue.
The independent cultivators in particular have been willing to forgo their traditional way of farming, including dependence on ecosystem services such as river water supply and natural forest products, in return for substantial economic returns from oil palm cultivation.
With growth and development of these rural centres, the state benefitted from the ever increasing economic wealth generated, both directly and indirectly from the palm oil industry’s rise.
Hence, what unfolds is the planned growth of the rural economy and the palm oil contribution to the wealth of the rural community.
The Sarawak government has assisted to the growth of the palm oil industry through joint ventures with private companies and also infrastructures like roads, airports, ports and other amenities
In return, the sale of palm oil from Sarawak generates revenues for the state through sales tax, land tax and corporate taxes.
The benefits arising from the cultivation of oil palms are numerous, both directly and indirectly, especially from the spillover effects like increasing demands for goods and services, which are all contributing to the growth of the rural areas and the state in general.
Departure from traditional livelihood
Long before the availability of infrastructure and public utilities and the arrival of oil palm, the living conditions might not be not favourable and much of this was attributed to geographical disadvantage faced by the longhouse community.
But the conditions turned out to be a motivation of sorts that drove the local residents to venture beyond their traditional sphere and seek new opportunities in order to earn higher income and upgrade their living standard.
Oil palm arrived about two decades ago and offered new hope. It emerged as a gamechanger and paved the way for a prospective future.
The experience of the longhouse community in Sebauh, Bintulu, bears testimony to this.
The oil palm plantation development in Sebauh is managed by Ta Ann Pelita Silas Sdn Bhd (TAPS), a joint-venture company where the shareholders are Ta Ann Pelita Silas Plantation Sdn Bhd (60 per cent), Land Custody and Development Authority or PELITA, the acronym in Bahasa Malaysia (10 per cent), and the participants from the Sebauh longhouse community (30 per cent).
The modernising experience of the Sebauh longhouse community reinforces some of the existing literature that oil palm development plays a significant role in alleviating poverty and providing a better standard of living to many rural communities.
However, the processes of inclusion and exclusion from this development depend on the ability of the local villagers to adopt oil palm cultivation as a new livelihood strategy – an issue that had been amicably resolved following consultations among the stakeholders.
There do not appear to be many viable alternative livelihood pathways besides the oil palm sector for the impacted longhouse community.
The main drivers for development are road constructions to these rural communities where oil palms are cultivated, resulting in accessibility and spur even more agricultural activities as well as support industries for these developments.
The emergence of several sizable estates in Sarawak’s rural regions has led to the quick expansion of the nearby rural centres, which serve as the primary suppliers for the mills and other new estates’ needs.
To meet the ever-increasing need of the estate workers, new complementary enterprises have also appeared in these rural centres. The Borneo Post
November 01, 2024
UN outlines plan to combat corruption within Indonesia palm oil industry
Juri Berger | Geneva Academy of International Humanitarian Law and Human Rights, CH
The UN Office on Drugs and Crime (UNODC) set out on Wednesday to work directly with Indonesia’s Palm Oil Industry in order to combat corruption in the country.
This comes after the UNODC organized a workshop to bring together different private and public actors, such as the Indonesian Palm Oil Association and the national Corruption Eradication Commission (KPK). The UN agency stressed that integrity in the private sector is especially important and that a “collective effort” is necessary for an economically and environmentally sustainable future.
Indonesian palm oil companies have been heavily criticized for weak anti-graft policies and a lack of transparency. A report by NGO Transparency International found that this lack of transparency risks malpractices such as bribery and illegal land acquisitions to remain unknown and put the palm oil industry at a high risk of corruption.
This month, Indonesian prosecutors launched an investigation into the Ministry of Environment and Forestry on the grounds of corruption related to the palm oil industry. Currently, an area of 3.37 million hectares of oil palm plantations is illegal under Indonesian law because they were established on land protected as forest areas.
The government introduced an amnesty law in 2020 which saves the plantation operators from criminal prosecution if they obtain a proper permit within three years. Even though the law has been repealed and replaced, the ministry is still not collecting the major part of the fees that would constitute the reparations, prompting allegations of corruption. A corruption court had recently sentenced the former agriculture minister to 10 years over graft charges.
As the guardian of the international law framework on corruption, the UNODC oversees the implementation of the United Nations Convention against Corruption (UNCAC), the only legally binding universal instrument on corruption. It imposes measures to foster anti-corruption reforms and legislative changes on a national level and its progress is reviewed on a circular basis. Jurist
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Minister Airlangga: RI Has New Strategy To Deal With EUDR
JAKARTA – Economic Coordinating Minister Airlangga Hartaro said that the government has designed a new strategy to deal with the European Union Deforestation-free Regulation (EUDR), which was initially scheduled to be implemented in 2025 but then delayed until 2026.
Minister Airlangga said currently they are in a process of proposing to President Prabowo Subianto to determine the standard of certification of the Indonesian Sustainable Palm Oil (ISPO) through a government regulation (PP). “We’ll show to the world, especially European Union (EU), that Indonesia has a special regulation on the sustainability in its palm oil sector.
“The standard (ISPO) will be set through a government regulation. That way we’ll ensure to EU that we have a regulation on sustainability,” he said on Wednesday (30/10/2024).
Adopted by the EU in June 2023, the EUDR was sheduled to be effective since 30 December this year. But then the EU decided to delay its implementation for one year. Based on its decision taken on Wednesday, 16 October 2024, its implementation will be started in December 2025 for companies, and in the middle of 2026 for smallholders.
The EUDR requires that the supply chain of all products of agriculture, plantations and forestry, including palm oil, traded in the European market are free from deforestation in their countries of origins. The European Commission said that deforestation has become the second largest source of greenhouse gas (GHG) emission after burning of fossil fuels as the cause global climate change.
According to Airlangga, all palm plantation companies and smallholders are obliged to have the Indonesian Sustainable Palm Oil (ISPO) certification since November 2025. But the process of ISPO certification among companies and smallholders has been slow until now.
Based on the government’s data, the realization of ISPO certification, especially among smallholders, is lower than expected. During the last 13 years the ISPO certification for smallholders’ institutions only amounted to 81 certificates with a total plantation areas of 60,236 hectares, as compared to the total plantation areas of smallholders at 6.94 million hectares or just 0.3 percent of the total. (*) GAPKI
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Malaysian Palm Oil Board (MPOB)’s compliance initiatives bearing fruit
KUALA LUMPUR: The Malaysian Palm Oil Board (MPOB) is targeting more than 90% of independent smallholders (ISH) to achieve Malaysian Sustainable Palm Oil (MSPO) certification by the end of next year.
MPOB director-general Datuk Dr Ahmad Parveez Ghulam Kadir based his optimism on 76.9% of the total 210,891 independent oil palm smallholders who are licensed with the board are already certified under the MSPO standard.
The significant compliance rate, which presents a strong foundation for further compliance, was made possible by MPOB’s initiatives, which include providing continuous financial and technical assistance, he said in response to queries by Bernama recently.
MPOB also undertakes awareness campaigns on the importance of sustainability through targeted training programmes as well as by implementing the Sawit Intelligent Management System (Sims).
“The Sims aims to improve the monitoring of palm oil transactions, ensuring greater transparency and traceability throughout the supply chain,” he said.
MPOB is also committed to supporting ISH by providing full funding for the MSPO certification audit process, he said.
“This support includes training and supplying essential inputs, such as personal protective equipment (PPE) and shelves for storing herbicides and pesticides.
“By alleviating these financial burdens, the allocation encourages ISH to pursue sustainable palm oil production, thereby contributing to environmental conservation and economic stability within the oil palm industry,” he said.
The MPSO certificate ensures that plantation products, especially palm oil, are produced through sustainable methods, using processes that are environment-friendly and safe, complying with good agricultural practices.
Benefits from complying with such standards would enable Malaysian palm oil to be more marketable overseas, especially in developed markets such as the European Union (EU) which constantly demands compliance with such standards.
Many western countries including the EU have laws against buying palm oil linked to environmental issues like deforestation and wildlife destruction.
Nevertheless, the EU is an important market for Malaysia, being the third largest importer of palm oil after India and China, having imported 2.7 million tonnes of palm oil and palm oil products last year. The StarMY
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North Sumatra Palm Oil Project Boosts Sustainability, Profit
Musim Mas Group, the Livelihoods Fund for Family Farming (L3F), SNV Indonesia, and World Agroforestry (ICRAF) have partnered over the last three years on the Biodiverse & Inclusive Palm Oil Supply Chain (BIPOSC) project to strengthen the knowledge and skills of independent oil palm smallholders throughout the country. The collaboration aims to enhance sustainability and promote inclusivity within the palm oil supply chain.
The BIPOSC project, launched in 2021 in Labuhanbatu, North Sumatra, is integrating regenerative agriculture techniques to address environmental concerns while improving farmer profitability.
Over 1,000 independent smallholders have already received training, applying advanced agricultural methods such as bio-input application, mulching, cover crop cultivation, and integrated pest management across 1,000 hectares. These practices significantly reduce the use of chemical pesticides and fertilizers, making palm oil farming more sustainable.
A key driver behind BIPOSC’s success is a pioneering composting facility run by the Labuhanbatu Independent Oil Palm Smallholders Association (APSKS LB). The facility produces up to 150 tons of compost monthly, providing members with affordable, high-quality compost at half the market price. In its first year, the facility produced 588 tons of compost and generated over IDR 421 million in profit.
With independent smallholders expected to manage 60% of Indonesia’s palm oil plantations by 2030 (up from 41%), the BIPOSC project could have a transformative effect on the palm oil industry. By combining environmental sustainability with economic viability, the initiative provides a blueprint for other palm oil producers to follow.
For almost 30 years of expertise in the agri markets, UkrAgroConsult has accumulated an extensive database, which became the basis of the platform AgriSupp. UKR AgroConsult
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3F Oil Palm inks pact with Karnataka Government to empower farmers
The 3F Oil Palm on Wednesday said it has signed a pact with the Karnataka government to advance sustainable agriculture in rural communities.
This partnership will provide farmers access to advanced agricultural technologies, training programmes and essential resources to enhance productivity and support Karnataka's growing horticultural sector, according to a statement.
A Memorandum of Understanding (MoU) was signed with the Department of Horticulture of Karnataka with an aim to increase palm oil productivity, create economic growth and empower farmers with sustainable knowledge, offering a model for long-term agricultural success for oil palm cultivators in Udupi, Dakshina Kannada and Sedam taluk of Gulbarga district, the company said in a statement.The company plans to introduce cultivation practices, focusing on sustainable growth and community empowerment. Daily Pioneer
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Thailand bans export of raw palm oil as production drops due to drought and diseases
BANGKOK, Thailand – Commerce Ministry temporarily banned the export of raw palm oil, focusing on effective stock management after the production is reduced due to the drought and plant diseases, Oct 31.
He asks for cooperation from the department stores to fix the selling prices and organize sales promotion for the customers.
Commerce Minister Pichai Naripthaphan said there was a significant decrease in oil palm output at the moment, forcing the prices to be increased. The Ministry has to intervene to make the balanced market conditions, to take the necessitating measures to protect both farmers and consumers from inflated prices.
Mr Pichai said the short term measure that he instructed the Department of Internal Trade to implement was the delay of raw palm oil export. If necessary, more measures would be taken including to reduce the use of palm oil in biodiesel production to make the surplus palm oil available to produce refined palm oil for household consumption. Pattaya Mail
UN outlines plan to combat corruption within Indonesia palm oil industry
Juri Berger | Geneva Academy of International Humanitarian Law and Human Rights, CH
The UN Office on Drugs and Crime (UNODC) set out on Wednesday to work directly with Indonesia’s Palm Oil Industry in order to combat corruption in the country.
This comes after the UNODC organized a workshop to bring together different private and public actors, such as the Indonesian Palm Oil Association and the national Corruption Eradication Commission (KPK). The UN agency stressed that integrity in the private sector is especially important and that a “collective effort” is necessary for an economically and environmentally sustainable future.
Indonesian palm oil companies have been heavily criticized for weak anti-graft policies and a lack of transparency. A report by NGO Transparency International found that this lack of transparency risks malpractices such as bribery and illegal land acquisitions to remain unknown and put the palm oil industry at a high risk of corruption.
This month, Indonesian prosecutors launched an investigation into the Ministry of Environment and Forestry on the grounds of corruption related to the palm oil industry. Currently, an area of 3.37 million hectares of oil palm plantations is illegal under Indonesian law because they were established on land protected as forest areas.
The government introduced an amnesty law in 2020 which saves the plantation operators from criminal prosecution if they obtain a proper permit within three years. Even though the law has been repealed and replaced, the ministry is still not collecting the major part of the fees that would constitute the reparations, prompting allegations of corruption. A corruption court had recently sentenced the former agriculture minister to 10 years over graft charges.
As the guardian of the international law framework on corruption, the UNODC oversees the implementation of the United Nations Convention against Corruption (UNCAC), the only legally binding universal instrument on corruption. It imposes measures to foster anti-corruption reforms and legislative changes on a national level and its progress is reviewed on a circular basis. Jurist
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Minister Airlangga: RI Has New Strategy To Deal With EUDR
JAKARTA – Economic Coordinating Minister Airlangga Hartaro said that the government has designed a new strategy to deal with the European Union Deforestation-free Regulation (EUDR), which was initially scheduled to be implemented in 2025 but then delayed until 2026.
Minister Airlangga said currently they are in a process of proposing to President Prabowo Subianto to determine the standard of certification of the Indonesian Sustainable Palm Oil (ISPO) through a government regulation (PP). “We’ll show to the world, especially European Union (EU), that Indonesia has a special regulation on the sustainability in its palm oil sector.
“The standard (ISPO) will be set through a government regulation. That way we’ll ensure to EU that we have a regulation on sustainability,” he said on Wednesday (30/10/2024).
Adopted by the EU in June 2023, the EUDR was sheduled to be effective since 30 December this year. But then the EU decided to delay its implementation for one year. Based on its decision taken on Wednesday, 16 October 2024, its implementation will be started in December 2025 for companies, and in the middle of 2026 for smallholders.
The EUDR requires that the supply chain of all products of agriculture, plantations and forestry, including palm oil, traded in the European market are free from deforestation in their countries of origins. The European Commission said that deforestation has become the second largest source of greenhouse gas (GHG) emission after burning of fossil fuels as the cause global climate change.
According to Airlangga, all palm plantation companies and smallholders are obliged to have the Indonesian Sustainable Palm Oil (ISPO) certification since November 2025. But the process of ISPO certification among companies and smallholders has been slow until now.
Based on the government’s data, the realization of ISPO certification, especially among smallholders, is lower than expected. During the last 13 years the ISPO certification for smallholders’ institutions only amounted to 81 certificates with a total plantation areas of 60,236 hectares, as compared to the total plantation areas of smallholders at 6.94 million hectares or just 0.3 percent of the total. (*) GAPKI
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Malaysian Palm Oil Board (MPOB)’s compliance initiatives bearing fruit
KUALA LUMPUR: The Malaysian Palm Oil Board (MPOB) is targeting more than 90% of independent smallholders (ISH) to achieve Malaysian Sustainable Palm Oil (MSPO) certification by the end of next year.
MPOB director-general Datuk Dr Ahmad Parveez Ghulam Kadir based his optimism on 76.9% of the total 210,891 independent oil palm smallholders who are licensed with the board are already certified under the MSPO standard.
The significant compliance rate, which presents a strong foundation for further compliance, was made possible by MPOB’s initiatives, which include providing continuous financial and technical assistance, he said in response to queries by Bernama recently.
MPOB also undertakes awareness campaigns on the importance of sustainability through targeted training programmes as well as by implementing the Sawit Intelligent Management System (Sims).
“The Sims aims to improve the monitoring of palm oil transactions, ensuring greater transparency and traceability throughout the supply chain,” he said.
MPOB is also committed to supporting ISH by providing full funding for the MSPO certification audit process, he said.
“This support includes training and supplying essential inputs, such as personal protective equipment (PPE) and shelves for storing herbicides and pesticides.
“By alleviating these financial burdens, the allocation encourages ISH to pursue sustainable palm oil production, thereby contributing to environmental conservation and economic stability within the oil palm industry,” he said.
The MPSO certificate ensures that plantation products, especially palm oil, are produced through sustainable methods, using processes that are environment-friendly and safe, complying with good agricultural practices.
Benefits from complying with such standards would enable Malaysian palm oil to be more marketable overseas, especially in developed markets such as the European Union (EU) which constantly demands compliance with such standards.
Many western countries including the EU have laws against buying palm oil linked to environmental issues like deforestation and wildlife destruction.
Nevertheless, the EU is an important market for Malaysia, being the third largest importer of palm oil after India and China, having imported 2.7 million tonnes of palm oil and palm oil products last year. The StarMY
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North Sumatra Palm Oil Project Boosts Sustainability, Profit
Musim Mas Group, the Livelihoods Fund for Family Farming (L3F), SNV Indonesia, and World Agroforestry (ICRAF) have partnered over the last three years on the Biodiverse & Inclusive Palm Oil Supply Chain (BIPOSC) project to strengthen the knowledge and skills of independent oil palm smallholders throughout the country. The collaboration aims to enhance sustainability and promote inclusivity within the palm oil supply chain.
The BIPOSC project, launched in 2021 in Labuhanbatu, North Sumatra, is integrating regenerative agriculture techniques to address environmental concerns while improving farmer profitability.
Over 1,000 independent smallholders have already received training, applying advanced agricultural methods such as bio-input application, mulching, cover crop cultivation, and integrated pest management across 1,000 hectares. These practices significantly reduce the use of chemical pesticides and fertilizers, making palm oil farming more sustainable.
A key driver behind BIPOSC’s success is a pioneering composting facility run by the Labuhanbatu Independent Oil Palm Smallholders Association (APSKS LB). The facility produces up to 150 tons of compost monthly, providing members with affordable, high-quality compost at half the market price. In its first year, the facility produced 588 tons of compost and generated over IDR 421 million in profit.
With independent smallholders expected to manage 60% of Indonesia’s palm oil plantations by 2030 (up from 41%), the BIPOSC project could have a transformative effect on the palm oil industry. By combining environmental sustainability with economic viability, the initiative provides a blueprint for other palm oil producers to follow.
For almost 30 years of expertise in the agri markets, UkrAgroConsult has accumulated an extensive database, which became the basis of the platform AgriSupp. UKR AgroConsult
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3F Oil Palm inks pact with Karnataka Government to empower farmers
The 3F Oil Palm on Wednesday said it has signed a pact with the Karnataka government to advance sustainable agriculture in rural communities.
This partnership will provide farmers access to advanced agricultural technologies, training programmes and essential resources to enhance productivity and support Karnataka's growing horticultural sector, according to a statement.
A Memorandum of Understanding (MoU) was signed with the Department of Horticulture of Karnataka with an aim to increase palm oil productivity, create economic growth and empower farmers with sustainable knowledge, offering a model for long-term agricultural success for oil palm cultivators in Udupi, Dakshina Kannada and Sedam taluk of Gulbarga district, the company said in a statement.The company plans to introduce cultivation practices, focusing on sustainable growth and community empowerment. Daily Pioneer
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Thailand bans export of raw palm oil as production drops due to drought and diseases
BANGKOK, Thailand – Commerce Ministry temporarily banned the export of raw palm oil, focusing on effective stock management after the production is reduced due to the drought and plant diseases, Oct 31.
He asks for cooperation from the department stores to fix the selling prices and organize sales promotion for the customers.
Commerce Minister Pichai Naripthaphan said there was a significant decrease in oil palm output at the moment, forcing the prices to be increased. The Ministry has to intervene to make the balanced market conditions, to take the necessitating measures to protect both farmers and consumers from inflated prices.
Mr Pichai said the short term measure that he instructed the Department of Internal Trade to implement was the delay of raw palm oil export. If necessary, more measures would be taken including to reduce the use of palm oil in biodiesel production to make the surplus palm oil available to produce refined palm oil for household consumption. Pattaya Mail
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Palm oil news. November 2024. CSPO Watch