Palm Oil News-March 2024
For all the news on the global palm oil industry. March 2024
Makin' it easy for you to monitor developments in the palm oil industry
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Mar 30, 2024
Indonesia-Government Advocates for Biodiesel Mandate Up to B-40 Level
Jakarta. The government continues to push for mandatory biodiesel usage, which has now reached B-35 and is being tested for B-40. The domestic biodiesel sales in 2023 amounted to 12.2 million kiloliters (KL).
The B-35 is a policy that increases the palm-oil-based biodiesel blend from 30 percent to 35 percent. B-40 will increase the blend to 40 percent.
"The government is steadfast in its promotion of mandatory biodiesel, having advanced to B-35 and currently under examination for B-40. The achievement of 12.2 million kiloliters in domestic biodiesel sales for 2023 undoubtedly impacts the absorption of CPO within the country," said Coordinating Minister for Economic Affairs Airlangga Hartarto during the National Coordination Meeting on the Sustainable Palm Oil Plantation National Action Plan at Hotel Indonesia Kempinski, Jakarta, on Thursday.
As the world's largest palm oil producer, with a total production of 56 million tons and exports of 26.33 million tons, palm oil has emerged as a pivotal commodity bolstering the national economy. In 2023, exports of palm oil and its derivatives reached US$ 28.45 billion, constituting 11.6 percent of total non-oil and gas exports, while employing 16.2 million direct and indirect workers, including smallholders.
"Palm oil serves as a catalyst for economic growth in palm oil-producing regions and fosters rural development, thereby mitigating poverty levels," Airlangga added.
During the 2024 presidential election presidential debate, Vice President-elect Gibran Rakabuming Raka pledged to enhance B-35 production and intends to elevate the blend to 40 percent. Gibran emphasized that the biodiesel policy has significantly aided Indonesia in reducing its oil imports.
Gibran stressed the necessity for Indonesia to persist in its energy transition towards renewables. “We should not rely on fossil fuel anymore. We shall continue to encourage the use of renewables, particularly those based on vegetable raw materials, such as bioethanol, Bioavtur [aviation fuel], and biodiesel,” Gibran said. Jakarta Globe
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The palm oil debate, like diets, needs to be more balanced
Palm oil is also not “high in saturated fats,” rather it is balanced at 50/50 saturated and unsaturated fats.
By Dr. Jonathan Ellen
Old narratives can take a long time to die. This is especially true in the field of health and nutrition. Here, science moves at an astonishing rate, uncovering new evidence and data, often overturning outdated thinking. But “homespun wisdom” is as stubborn as it is unscientific, and it sadly continues to muddy the waters of debate.
A recent article speaking to the dangers of Palm Oil follows the old trope that remains pervasive despite being disproven by evidence. Opponents cite high cholesterol levels as a potential concern, even as abundant research shows conclusively that palmitic acid has no meaningful impact on cholesterol. Dr Elena Fattore and Dr Roberto Fanelli of the Mario Negri Institute for Pharmacological Research in Milan concluded after an extensive review that its effect on the HDL/LDL cholesterol ratio is neutral.
Palm oil is also not “high in saturated fats,” rather it is balanced at 50/50 saturated and unsaturated fats. Its primary replacements, which are semi-solid fats, are substantially higher. Butter, cocoa butter and coconut oil range from 60 to 90 percent saturated, making them far less balanced than their palm oil alternative. They are also significantly more expensive, which is an important factor in a world of high inflation and tight family budgets.
The important data point of trans fats, which holds great importance to the issue of public health, requires a serious analysis and debate.
The story of trans fats is a cautionary tale. When the “palm oil is dangerous” fad was really popular – back in the 1980s and 1990s – companies replaced palm oil not with butter or coconut oil but with partially-hydrogenated softer oils (PHOs). This is the process of adding hydrogen to harden the liquid oils, making them suitable for food processing. Read more Financial Express
Indonesia-Government Advocates for Biodiesel Mandate Up to B-40 Level
Jakarta. The government continues to push for mandatory biodiesel usage, which has now reached B-35 and is being tested for B-40. The domestic biodiesel sales in 2023 amounted to 12.2 million kiloliters (KL).
The B-35 is a policy that increases the palm-oil-based biodiesel blend from 30 percent to 35 percent. B-40 will increase the blend to 40 percent.
"The government is steadfast in its promotion of mandatory biodiesel, having advanced to B-35 and currently under examination for B-40. The achievement of 12.2 million kiloliters in domestic biodiesel sales for 2023 undoubtedly impacts the absorption of CPO within the country," said Coordinating Minister for Economic Affairs Airlangga Hartarto during the National Coordination Meeting on the Sustainable Palm Oil Plantation National Action Plan at Hotel Indonesia Kempinski, Jakarta, on Thursday.
As the world's largest palm oil producer, with a total production of 56 million tons and exports of 26.33 million tons, palm oil has emerged as a pivotal commodity bolstering the national economy. In 2023, exports of palm oil and its derivatives reached US$ 28.45 billion, constituting 11.6 percent of total non-oil and gas exports, while employing 16.2 million direct and indirect workers, including smallholders.
"Palm oil serves as a catalyst for economic growth in palm oil-producing regions and fosters rural development, thereby mitigating poverty levels," Airlangga added.
During the 2024 presidential election presidential debate, Vice President-elect Gibran Rakabuming Raka pledged to enhance B-35 production and intends to elevate the blend to 40 percent. Gibran emphasized that the biodiesel policy has significantly aided Indonesia in reducing its oil imports.
Gibran stressed the necessity for Indonesia to persist in its energy transition towards renewables. “We should not rely on fossil fuel anymore. We shall continue to encourage the use of renewables, particularly those based on vegetable raw materials, such as bioethanol, Bioavtur [aviation fuel], and biodiesel,” Gibran said. Jakarta Globe
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The palm oil debate, like diets, needs to be more balanced
Palm oil is also not “high in saturated fats,” rather it is balanced at 50/50 saturated and unsaturated fats.
By Dr. Jonathan Ellen
Old narratives can take a long time to die. This is especially true in the field of health and nutrition. Here, science moves at an astonishing rate, uncovering new evidence and data, often overturning outdated thinking. But “homespun wisdom” is as stubborn as it is unscientific, and it sadly continues to muddy the waters of debate.
A recent article speaking to the dangers of Palm Oil follows the old trope that remains pervasive despite being disproven by evidence. Opponents cite high cholesterol levels as a potential concern, even as abundant research shows conclusively that palmitic acid has no meaningful impact on cholesterol. Dr Elena Fattore and Dr Roberto Fanelli of the Mario Negri Institute for Pharmacological Research in Milan concluded after an extensive review that its effect on the HDL/LDL cholesterol ratio is neutral.
Palm oil is also not “high in saturated fats,” rather it is balanced at 50/50 saturated and unsaturated fats. Its primary replacements, which are semi-solid fats, are substantially higher. Butter, cocoa butter and coconut oil range from 60 to 90 percent saturated, making them far less balanced than their palm oil alternative. They are also significantly more expensive, which is an important factor in a world of high inflation and tight family budgets.
The important data point of trans fats, which holds great importance to the issue of public health, requires a serious analysis and debate.
The story of trans fats is a cautionary tale. When the “palm oil is dangerous” fad was really popular – back in the 1980s and 1990s – companies replaced palm oil not with butter or coconut oil but with partially-hydrogenated softer oils (PHOs). This is the process of adding hydrogen to harden the liquid oils, making them suitable for food processing. Read more Financial Express
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Mar 29, 2024
EU Policy. Governments urged to reconsider bid to delay deforestation law
Forest conservationists and environmental campaigners have reacted angrily to governments' efforts within the EU Council to water down a recently adopted law designed to protect forests both overseas and in Europe, before it has even come into effect.
Environmental organisations urged governments not to back-pedal on new legislation to prevent deforestation linked to goods sold on the EU market, after a large majority of agriculture ministers lined up behind a call to postpone the law which is due to take effect at the end of this year.
In an open letter to EU governments today (28 March) some three dozen NGOs including forest action group Fern and the legal charity Client Earth reacted with alarm to an “urgent call for action” tabled by Austria at an EU Council summit on Tuesday, demanding the implementation period be “significantly extended”, with blanket exemptions for “safe countries” and for small-scale producers within the EU.
The call was endorsed by Finland, Italy, Poland, Slovakia, Slovenia and Sweden, and Austrian agriculture minister Norbert Totschnig subsequently said his initiative had been supported by “an overwhelming majority” of 20 member states. “We now urge the Commission for a temporary suspension of the regulation allowing for a feasible implementation accompanied by a revision of the regulation,” he said in a statement. Read more Euronews
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A shared sense of urgency: 23 signatories raise their voice in a joint cross-commodity call on EU Commission and Member States to provide clarifications and workable solutions for #EUDR implementation.
Joint cross-commodity call to EU Commission and Member States to provide urgent
clarifications and workable solutions for EUDR implementation
We, the undersigned organisations, are active in preparing for the implementation of the EU
Deforestation Regulation (EUDR) with our member companies and across our respective
supply chains.
As part of our commitment to support a successful implementation of this regulation,
considering the significant adjustments that are needed from suppliers, operators and traders,
we would like to express serious concerns regarding the pace of preparation of EUDR-related
legislative acts, the mandatory systems (i.e. Information System), and the guidance and
clarifications required for implementation by operators and traders and enforcement by
competent authorities.
Operators and traders are working hard to prepare their supply chains and adapt their systems
and due diligence processes for compliance with the EUDR. They try to develop workable
solutions, compatible with the EUDR provisions, but implying less administrative burden.
However, these efforts are impeded by large gaps in information, lack of appropriate technical
solutions and by misconceptions as to the functioning of our complex chains. We therefore
call for the following actions: Read more FEDIOL
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Indonesia accounts for 54% of global palm oil exports: minister
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs, Airlangga Hartarto, has said that Indonesia is dominating global palm oil exports, accounting for 54 percent of world palm oil supplies.
In 2023, Indonesia's total palm oil production stood at 56 million tons with export realization reaching 26.33 million tons, he informed.
"Indonesia is the world's largest palm oil producer with (production pegged at) 56 million tons. Our exports amount to 26.33 million tons and make up 54 percent of the world market," Hartarto said at the National Coordination Meeting for the National Action Plan for Sustainable Palm Oil Plantations 2019–2024 on Thursday.
According to him, palm oil is a strategic commodity for Indonesia. In 2023, the value of palm oil exports reached Rp28.45 billion (US$1.7 million), or close to 12 percent of non-oil and gas exports.
In addition, the palm oil industry contributes to the labor sector by directly and indirectly employing 16.2 million people, he highlighted.
"Palm oil is also an economic driver in palm oil producing areas and brought development in rural areas and reduces poverty levels," Hartarto added.
Therefore, his ministry is continuing to develop palm oil downstreaming by producing finished products with higher value, for example, B40 biodiesel derived from palm oil, which has been developed as a sustainable alternative fuel. Read more Antara News
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Palm oil smallholder cluster model to increase output in Malaysia
PETALING JAYA: The implementation of the palm oil smallholder cluster model can contribute an additional 9 million tonnes of fresh fruit bunches (FFB) producing roughly 1.8 million tonnes of crude palm oil if all the 1.5 million hectares of land that belong to smallholders can be consolidated into clusters of 10,000 hectares, said plantation and commodities minister Johari Ghani.
He said his ministry is working to unite all independent palm oil smallholders to form a larger cluster to further increase the country’s palm oil production.
“For example, if each independent smallholder has four hectares, we gather them all into a cluster in one area and if we can reach 10,000 hectares, then we can apply good plantation management practices so that the yield of each hectare can increase,” he said while winding up the debate on the motion of thanks for the royal address in the Dewan Negara yesterday.
Johari was responding to senator Fatmi Che Salleh regarding the opening of new plantations to increase the country’s palm oil yield.
He said the ministry has also emphasised the importance of a replanting programme when a tree reaches 25 years of age as practised by the private sector.
Johari also noted that Malaysia does not have enough land to explore new plantation sites.
“We have no land as we only have 5.7 million hectares for palm oil. We are faced with a standard guideline that is imposed on countries that produce ‘edible oil’, which is that any palm oil intended for export must come from land that has been forested before 2020.
“If not, we will be considered as a country that does not take into account the issue of deforestation and it interferes with the export of palm oil abroad,” he said. Daily ExpressMY
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Malaysian Oil palm factory in Gemas fined RM150,000 for polluting air, breaching licence conditions
SEREMBAN: An oil palm factory in Gemas was today fined a total of RM150,000 by the Sessions Court here for violating the Environmental Quality Act 1974.
Judge Diana Md Razali meted out the fine on Classic Palm Oil Mill Sdn Bhd after finding that the company, represented by its engineer, Hidayah Md Said, 35, failed to raise reasonable doubts against the case at the end of the defence case.
The company was charged with eight counts of violating the Environmental Quality Act 1974, six of the charges for causing air pollution and was fined RM20,000 on each count.
The offences were for failing to inform the Director General not later than one hour of the failure in the operation of its air pollution control system as provided under Regulation 8 of the Environmental Quality (Clean Air) Regulations 2014.
The company also failed to conduct performance monitoring of its air pollution control system as required under Section 9 (b) of the same regulations. Read more The SunMY
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MKH Oil Palm expects Indonesian refineries to take up all of its palm oil
KUALA LUMPUR (March 29): MKH Oil Palm (East Kalimantan) Bhd, which launched its initial public offering (IPO) on Friday for the Main Market, expects almost all of its crude palm oil to be taken up by Indonesian refineries amid the government’s push for biofuel.
In Indonesia, where the government has mandated 35% blend of palm oil into diesel, the company is planning to acquire another 5,000 hectares of land in East Kalimantan by the second quarter of 2024. MKH Oil Palm currently owns more than 18,000 hectares of plantation estates, mostly in Indonesia.
Nearly 95% of its trees are in the prime producing ages of 10 to 16, and it would take “another eight to ten years before the replanting exercise is necessary," executive director Datuk Andy Lee Khee Meng told the press after the prospectus launch.
Under Indonesia’s so-called B35 programme, 35% of the biodiesel will be blended with palm-based methyl ester with traditional petroleum diesel for sale at retail pumps nationwide.
The B35 policy will increase the demand for crude palm oil amid a campaign in Europe against edible oil used in everything from lipstick to chocolate.
“Crude palm oil is the most productive, cheapest source for edible oil,” Lee said. “As the population of the world increases, we definitely need more crude palm oil in the market,” he said while recommending that the government provide more land for responsible planters. Read more The Edge Malaysia
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Palm Oil Corruption, 2 Former Head Of West Aceh Office Sentenced To 4 Years In Prison
The panel of judges at the Corruption Court at the Banda Aceh District Court sentenced two former Heads of the West Aceh Regency Forestry Service (Kadis) to four years in prison each for being proven guilty of corruption in the people's oil palm rejuvenation program (PSR).
The verdict was read out by the panel of judges chaired by Muhifuddin at the trial at the Corruption Court at the Banda Aceh District Court in Banda Aceh, Thursday, March 28.
The two defendants Said Mahjali, served as Head of the West Aceh Regency Forestry Service 2017-2019, and the defendant Danil Adrial, served as Head of the West Aceh Regency Forestry Plantation Service 2019-2023.
The two defendants were present at the trial accompanied by their legal advisory team. Also attending the trial of the Public Prosecutor (JPU) Taqdirullah and friends of the West Aceh District Attorney.
In addition to imprisonment, the panel of judges sentenced the two to pay a fine of Rp. 200 million each, a subsidiary or a substitute sentence of two months in prison.
"The two defendants were not sentenced to pay compensation for state losses because there was no evidence of receiving money from the proceeds of the corruption crime," said the panel of judges.
According to the panel of judges, the two defendants violated Pasar 2 Paragraph (1) of Law Number 31 which was changed to Law Number 20 of 2001 concerning the eradication of corruption in conjunction with Article 55 Paragraph (1) 1 in conjunction with Article 65 Paragraph (1) of the 1st Criminal Code. Read more VOI
EU Policy. Governments urged to reconsider bid to delay deforestation law
Forest conservationists and environmental campaigners have reacted angrily to governments' efforts within the EU Council to water down a recently adopted law designed to protect forests both overseas and in Europe, before it has even come into effect.
Environmental organisations urged governments not to back-pedal on new legislation to prevent deforestation linked to goods sold on the EU market, after a large majority of agriculture ministers lined up behind a call to postpone the law which is due to take effect at the end of this year.
In an open letter to EU governments today (28 March) some three dozen NGOs including forest action group Fern and the legal charity Client Earth reacted with alarm to an “urgent call for action” tabled by Austria at an EU Council summit on Tuesday, demanding the implementation period be “significantly extended”, with blanket exemptions for “safe countries” and for small-scale producers within the EU.
The call was endorsed by Finland, Italy, Poland, Slovakia, Slovenia and Sweden, and Austrian agriculture minister Norbert Totschnig subsequently said his initiative had been supported by “an overwhelming majority” of 20 member states. “We now urge the Commission for a temporary suspension of the regulation allowing for a feasible implementation accompanied by a revision of the regulation,” he said in a statement. Read more Euronews
---------
A shared sense of urgency: 23 signatories raise their voice in a joint cross-commodity call on EU Commission and Member States to provide clarifications and workable solutions for #EUDR implementation.
Joint cross-commodity call to EU Commission and Member States to provide urgent
clarifications and workable solutions for EUDR implementation
We, the undersigned organisations, are active in preparing for the implementation of the EU
Deforestation Regulation (EUDR) with our member companies and across our respective
supply chains.
As part of our commitment to support a successful implementation of this regulation,
considering the significant adjustments that are needed from suppliers, operators and traders,
we would like to express serious concerns regarding the pace of preparation of EUDR-related
legislative acts, the mandatory systems (i.e. Information System), and the guidance and
clarifications required for implementation by operators and traders and enforcement by
competent authorities.
Operators and traders are working hard to prepare their supply chains and adapt their systems
and due diligence processes for compliance with the EUDR. They try to develop workable
solutions, compatible with the EUDR provisions, but implying less administrative burden.
However, these efforts are impeded by large gaps in information, lack of appropriate technical
solutions and by misconceptions as to the functioning of our complex chains. We therefore
call for the following actions: Read more FEDIOL
---------
Indonesia accounts for 54% of global palm oil exports: minister
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs, Airlangga Hartarto, has said that Indonesia is dominating global palm oil exports, accounting for 54 percent of world palm oil supplies.
In 2023, Indonesia's total palm oil production stood at 56 million tons with export realization reaching 26.33 million tons, he informed.
"Indonesia is the world's largest palm oil producer with (production pegged at) 56 million tons. Our exports amount to 26.33 million tons and make up 54 percent of the world market," Hartarto said at the National Coordination Meeting for the National Action Plan for Sustainable Palm Oil Plantations 2019–2024 on Thursday.
According to him, palm oil is a strategic commodity for Indonesia. In 2023, the value of palm oil exports reached Rp28.45 billion (US$1.7 million), or close to 12 percent of non-oil and gas exports.
In addition, the palm oil industry contributes to the labor sector by directly and indirectly employing 16.2 million people, he highlighted.
"Palm oil is also an economic driver in palm oil producing areas and brought development in rural areas and reduces poverty levels," Hartarto added.
Therefore, his ministry is continuing to develop palm oil downstreaming by producing finished products with higher value, for example, B40 biodiesel derived from palm oil, which has been developed as a sustainable alternative fuel. Read more Antara News
---------
Palm oil smallholder cluster model to increase output in Malaysia
PETALING JAYA: The implementation of the palm oil smallholder cluster model can contribute an additional 9 million tonnes of fresh fruit bunches (FFB) producing roughly 1.8 million tonnes of crude palm oil if all the 1.5 million hectares of land that belong to smallholders can be consolidated into clusters of 10,000 hectares, said plantation and commodities minister Johari Ghani.
He said his ministry is working to unite all independent palm oil smallholders to form a larger cluster to further increase the country’s palm oil production.
“For example, if each independent smallholder has four hectares, we gather them all into a cluster in one area and if we can reach 10,000 hectares, then we can apply good plantation management practices so that the yield of each hectare can increase,” he said while winding up the debate on the motion of thanks for the royal address in the Dewan Negara yesterday.
Johari was responding to senator Fatmi Che Salleh regarding the opening of new plantations to increase the country’s palm oil yield.
He said the ministry has also emphasised the importance of a replanting programme when a tree reaches 25 years of age as practised by the private sector.
Johari also noted that Malaysia does not have enough land to explore new plantation sites.
“We have no land as we only have 5.7 million hectares for palm oil. We are faced with a standard guideline that is imposed on countries that produce ‘edible oil’, which is that any palm oil intended for export must come from land that has been forested before 2020.
“If not, we will be considered as a country that does not take into account the issue of deforestation and it interferes with the export of palm oil abroad,” he said. Daily ExpressMY
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Malaysian Oil palm factory in Gemas fined RM150,000 for polluting air, breaching licence conditions
SEREMBAN: An oil palm factory in Gemas was today fined a total of RM150,000 by the Sessions Court here for violating the Environmental Quality Act 1974.
Judge Diana Md Razali meted out the fine on Classic Palm Oil Mill Sdn Bhd after finding that the company, represented by its engineer, Hidayah Md Said, 35, failed to raise reasonable doubts against the case at the end of the defence case.
The company was charged with eight counts of violating the Environmental Quality Act 1974, six of the charges for causing air pollution and was fined RM20,000 on each count.
The offences were for failing to inform the Director General not later than one hour of the failure in the operation of its air pollution control system as provided under Regulation 8 of the Environmental Quality (Clean Air) Regulations 2014.
The company also failed to conduct performance monitoring of its air pollution control system as required under Section 9 (b) of the same regulations. Read more The SunMY
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MKH Oil Palm expects Indonesian refineries to take up all of its palm oil
KUALA LUMPUR (March 29): MKH Oil Palm (East Kalimantan) Bhd, which launched its initial public offering (IPO) on Friday for the Main Market, expects almost all of its crude palm oil to be taken up by Indonesian refineries amid the government’s push for biofuel.
In Indonesia, where the government has mandated 35% blend of palm oil into diesel, the company is planning to acquire another 5,000 hectares of land in East Kalimantan by the second quarter of 2024. MKH Oil Palm currently owns more than 18,000 hectares of plantation estates, mostly in Indonesia.
Nearly 95% of its trees are in the prime producing ages of 10 to 16, and it would take “another eight to ten years before the replanting exercise is necessary," executive director Datuk Andy Lee Khee Meng told the press after the prospectus launch.
Under Indonesia’s so-called B35 programme, 35% of the biodiesel will be blended with palm-based methyl ester with traditional petroleum diesel for sale at retail pumps nationwide.
The B35 policy will increase the demand for crude palm oil amid a campaign in Europe against edible oil used in everything from lipstick to chocolate.
“Crude palm oil is the most productive, cheapest source for edible oil,” Lee said. “As the population of the world increases, we definitely need more crude palm oil in the market,” he said while recommending that the government provide more land for responsible planters. Read more The Edge Malaysia
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Palm Oil Corruption, 2 Former Head Of West Aceh Office Sentenced To 4 Years In Prison
The panel of judges at the Corruption Court at the Banda Aceh District Court sentenced two former Heads of the West Aceh Regency Forestry Service (Kadis) to four years in prison each for being proven guilty of corruption in the people's oil palm rejuvenation program (PSR).
The verdict was read out by the panel of judges chaired by Muhifuddin at the trial at the Corruption Court at the Banda Aceh District Court in Banda Aceh, Thursday, March 28.
The two defendants Said Mahjali, served as Head of the West Aceh Regency Forestry Service 2017-2019, and the defendant Danil Adrial, served as Head of the West Aceh Regency Forestry Plantation Service 2019-2023.
The two defendants were present at the trial accompanied by their legal advisory team. Also attending the trial of the Public Prosecutor (JPU) Taqdirullah and friends of the West Aceh District Attorney.
In addition to imprisonment, the panel of judges sentenced the two to pay a fine of Rp. 200 million each, a subsidiary or a substitute sentence of two months in prison.
"The two defendants were not sentenced to pay compensation for state losses because there was no evidence of receiving money from the proceeds of the corruption crime," said the panel of judges.
According to the panel of judges, the two defendants violated Pasar 2 Paragraph (1) of Law Number 31 which was changed to Law Number 20 of 2001 concerning the eradication of corruption in conjunction with Article 55 Paragraph (1) 1 in conjunction with Article 65 Paragraph (1) of the 1st Criminal Code. Read more VOI
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Mar 27, 2024
Calls for blanket ban on deforestation-linked products rejected by UK government
he government has rejected recommendations to ban UK businesses from trading in products linked to deforestation, regardless of whether their production was legal.
The cross-party Environmental Audit Committee (EAC) had said UK businesses should be banned from trading in commodities linked to UN-defined deforestation in all cases, regardless of whether the deforestation was illegal or permitted by local laws.
It previously found that the consumption of commodities such as soy, cocoa, palm oil, beef and leather by domestic consumers is unsustainable and leading to rampant deforestation across the globe.
A zero-deforestation approach would encourage consistency in trading such commodities across UK and European markets.
But in its response to the EAC’s report, the government said: “The only way to achieve zero global deforestation in supply chains is to work in partnership with producer countries – and that working in partnership requires us to uphold and respect national laws.” Read more EANDT
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Malaysia boosts palm oil exports in March
Malaysia shipped about 1 million tons of palm oil to foreign markets between March 1 and March 25, according to data from Amspec Agri. According to experts, this result is 11% higher than the level in the same period last month.
“The increase in shipments is due to active demand for Malaysian palm oil from countries in Africa, the Middle East and India,” experts explained.
In addition, the increase in shipments is associated with a decline in palm oil prices during the third week of March, as market operators expect Malaysian exports to remain stable amid domestic restrictions in Indonesia, which could affect sales from the region. UK Agro Consult
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US imports linked to deforestation the size of Los Angeles
Global Witness calls on Congress to pass the FOREST Act to stem the flow of illegal deforestation-linked imports into the country
Tuesday 26 March 2024, London - An area of tropical forest the size of Los Angeles has been lost in just two years thanks to imports of deforestation-linked palm oil, beef, coffee and other products flooding the US market, according to new research provided by Trase to Global Witness.
Of the estimated total 122,800 hectares (ha) of deforestation linked to these imports between October 2021 and November 2023, just over a third (41,000ha) were linked to palm oil, around a third (39,100ha) to cattle products like beef, and almost a quarter (29,700ha) to coffee.
The new findings shine a spotlight on the impact of the US Government’s delayed efforts to end global deforestation by 2030. While a proposed bill in Congress known as the FOREST Act could add more safeguards to US trade policy and limit the import of high-risk commodities produced on land illegally deforested overseas, negotiations around the Act are still being drawn out - despite bipartisan support. Read more Global Witness
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Calls for blanket ban on deforestation-linked products rejected by UK government
he government has rejected recommendations to ban UK businesses from trading in products linked to deforestation, regardless of whether their production was legal.
The cross-party Environmental Audit Committee (EAC) had said UK businesses should be banned from trading in commodities linked to UN-defined deforestation in all cases, regardless of whether the deforestation was illegal or permitted by local laws.
It previously found that the consumption of commodities such as soy, cocoa, palm oil, beef and leather by domestic consumers is unsustainable and leading to rampant deforestation across the globe.
A zero-deforestation approach would encourage consistency in trading such commodities across UK and European markets.
But in its response to the EAC’s report, the government said: “The only way to achieve zero global deforestation in supply chains is to work in partnership with producer countries – and that working in partnership requires us to uphold and respect national laws.” Read more EANDT
---------
Malaysia boosts palm oil exports in March
Malaysia shipped about 1 million tons of palm oil to foreign markets between March 1 and March 25, according to data from Amspec Agri. According to experts, this result is 11% higher than the level in the same period last month.
“The increase in shipments is due to active demand for Malaysian palm oil from countries in Africa, the Middle East and India,” experts explained.
In addition, the increase in shipments is associated with a decline in palm oil prices during the third week of March, as market operators expect Malaysian exports to remain stable amid domestic restrictions in Indonesia, which could affect sales from the region. UK Agro Consult
---------
US imports linked to deforestation the size of Los Angeles
Global Witness calls on Congress to pass the FOREST Act to stem the flow of illegal deforestation-linked imports into the country
Tuesday 26 March 2024, London - An area of tropical forest the size of Los Angeles has been lost in just two years thanks to imports of deforestation-linked palm oil, beef, coffee and other products flooding the US market, according to new research provided by Trase to Global Witness.
Of the estimated total 122,800 hectares (ha) of deforestation linked to these imports between October 2021 and November 2023, just over a third (41,000ha) were linked to palm oil, around a third (39,100ha) to cattle products like beef, and almost a quarter (29,700ha) to coffee.
The new findings shine a spotlight on the impact of the US Government’s delayed efforts to end global deforestation by 2030. While a proposed bill in Congress known as the FOREST Act could add more safeguards to US trade policy and limit the import of high-risk commodities produced on land illegally deforested overseas, negotiations around the Act are still being drawn out - despite bipartisan support. Read more Global Witness
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Mar 26, 2024
Malaysian palm oil futures climb
JAKARTA: Malaysian palm oil futures rose on Monday, snapping two straight sessions of losses, underpinned by strong export data and weak output growth.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange gained 1.46% to close at 4,249 ringgit ($899.64) a metric ton by midday break. The contract lost around 2% in the past two sessions.
“Crude palm oil futures are up on improved export figures as well as lower production figures,” a Kuala Lumpur-based trader said. Exports of Malaysian palm oil products for March 1-25 are expected to increase between 13.8% and 21.2%, compared to shipments during February 1-25, cargo surveyors Intertek Testing Services and AmSpec Agri said on Monday.
The news that Indonesia, the world’s biggest palm oil producer, is mulling revising the domestic market obligation (DMO) policy for cooking oil by linking it to production instead of exports is also supporting the price, said Anilkumar Bagani, commodity research head at Mumbai-based Sunvin Group. Read more Brecorder
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Increasing biodiesel use in Indonesia may aggravate environmental risks
The massive push for biodiesel usage had long been predicted to have side effects, Jakarta-based think tank Energy Shift Institute said in a report published on Feb 9.
JAKARTA – The emergence of a food-versus-fuel dilemma in Indonesia has added to concern that a push for palm oil-based biodiesel will drive deforestation.
Consumption of palm oil for biodiesel in Indonesia surpassed that for food for the first time last year, Indonesian Palm Oil Association (GAPKI) data show, with 46 percent of a total 23.2 million tonnes going to biodiesel and 44 percent to food production. Ten percent was used for oleochemicals.
Eliza Mardian, a researcher at the Center of Reform on Economics (CORE), said the continuing rise in domestic demand for biodiesel might see new land cleared for oil palm to increase output of the commodity.
“The increasing demand for palm oil for fuel and food may encourage deforestation, especially in eastern Indonesia, to increase production,” she told The Jakarta Post on Friday. Read more Asia News Network
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European banks give billions to environmentally destructive activities
According to a new research Greenpeace International published together with Milieudefensie (Friends of the Earth Netherlands), Harvest, Global Witness and supported by 16 other NGOs, since 2015, European banks have lent almost €256 billion ($278 billion) to major corporations active in sectors like soy, palm oil and cattle, that put rainforests, savannahs and other climate critical natural ecosystems at risk.
The businesses receiving funding from banks in the EU include the Brazilian livestock giant JBS, US-based food commodities company Cargill, and Indonesian conglomerate Sinar Mas, all corporations with reported links to recent nature destruction.
The EU is the second-largest global financial hub bankrolling these commodity sectors that are pushing precious and essential nature areas and critical forests past a point of no return. The new report shows that the EU finance sector, including banking giants such as BNP Paribas, Santander, Deutsche Bank, Rabobank and ING group, provided a staggering 22.1% of total global credit between 2016 and early 2023 to major corporate players in these sectors. The vast majority (86.6%) of this credit came from banks based in France, the Netherlands, Germany and Spain. Banks, pension funds, and asset managers based in the EU also provide 9.4% of current global investments to these “ecosystem risk sectors.” Read more Greenpeace
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The UK’s contribution to tackling global deforestation: Government Response to the Committee’s Fourth Report
This is a House of Commons Committee Special report.
Fifth Special Report of Session 2023–24
Introduction
The UK is committed to continuing to demonstrate international leadership in tackling global deforestation. We have showcased this recently at COP28 held in Dubai, setting out the UK’s strategic approach to tackling climate change, protecting nature, and ensuring food security, development, and prosperity.
The Government is grateful to the Environmental Audit Committee (“the Committee”) for its report on the UK’s contribution to tackling global deforestation. We will ensure the recommendations are fully taken into account as we work to monitor and address how the UK is supporting the preservation of the world’s forests in recognition of the devastating scale of global forest loss. Read more Publications Parliament UK
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UK Government rejects Committee’s call to prohibit products from legal deforestation
The Government has rejected the Environmental Audit Committee’s recommendation to prevent UK businesses from trading in products linked to deforestation, regardless of whether their production was legal.
The Committee had recommended the Government prevent UK businesses from trading in commodities linked to UN-defined deforestation in all cases, regardless of whether the deforestation was illegal or permitted by local laws. This ‘zero-deforestation’ approach would encourage consistency in trading such commodities across UK and European markets, increasing protections for areas at risk of deforestation.
But in its response to the Committee’s report, The UK’s contribution to tackling global deforestation, the Government said it believed “the only way to achieve zero global deforestation in supply chains is to work in partnership with producer countries – and that working in partnership requires us to uphold and respect national laws.” Read more Committees Parliament UK
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FGV Determined to have US CBP WRO Removed with Remediation Measures
KUALA LUMPUR, March 26 (Bernama) – FGV Holdings Bhd (FGV) is determined to have the Withhold Release Order (WRO) issued by the United States Customs and Border Protection (CBP) on Sept 30, 2020, modified.
CBP issued the WRO against the palm oil and palm oil products of FGV and its subsidiaries and joint ventures on Sept 30, 2020, barring entry of these products to the US.
Group chief sustainability officer Nurul Hasanah Ahamed Hassain Malim told Bernama that FGV has implemented remedial measures to get the US import ban lifted, including appointing global independent consultant Lloyd’s Register Quality Assurance (LRQA), formerly known as ELEVATE, to conduct an assessment of FGV’s operations against the 11 International Labour Organisation indicators of forced labour.
She said that as one of the world’s largest crude palm oil producers, FGV has implemented a recovery plan to reduce the risk of forced labour in its operations.
This includes an allocation of RM605 million for the construction of new housing for workers and improvements to their living conditions, said Nurul Hasanah.
“FGV has also allocated RM22.2 million to improve access to safe drinking water supply and RM15 million to improve internet access for workers, especially in remote operational areas,” she said. Read more Bernama
Malaysian palm oil futures climb
JAKARTA: Malaysian palm oil futures rose on Monday, snapping two straight sessions of losses, underpinned by strong export data and weak output growth.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange gained 1.46% to close at 4,249 ringgit ($899.64) a metric ton by midday break. The contract lost around 2% in the past two sessions.
“Crude palm oil futures are up on improved export figures as well as lower production figures,” a Kuala Lumpur-based trader said. Exports of Malaysian palm oil products for March 1-25 are expected to increase between 13.8% and 21.2%, compared to shipments during February 1-25, cargo surveyors Intertek Testing Services and AmSpec Agri said on Monday.
The news that Indonesia, the world’s biggest palm oil producer, is mulling revising the domestic market obligation (DMO) policy for cooking oil by linking it to production instead of exports is also supporting the price, said Anilkumar Bagani, commodity research head at Mumbai-based Sunvin Group. Read more Brecorder
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Increasing biodiesel use in Indonesia may aggravate environmental risks
The massive push for biodiesel usage had long been predicted to have side effects, Jakarta-based think tank Energy Shift Institute said in a report published on Feb 9.
JAKARTA – The emergence of a food-versus-fuel dilemma in Indonesia has added to concern that a push for palm oil-based biodiesel will drive deforestation.
Consumption of palm oil for biodiesel in Indonesia surpassed that for food for the first time last year, Indonesian Palm Oil Association (GAPKI) data show, with 46 percent of a total 23.2 million tonnes going to biodiesel and 44 percent to food production. Ten percent was used for oleochemicals.
Eliza Mardian, a researcher at the Center of Reform on Economics (CORE), said the continuing rise in domestic demand for biodiesel might see new land cleared for oil palm to increase output of the commodity.
“The increasing demand for palm oil for fuel and food may encourage deforestation, especially in eastern Indonesia, to increase production,” she told The Jakarta Post on Friday. Read more Asia News Network
----------
European banks give billions to environmentally destructive activities
According to a new research Greenpeace International published together with Milieudefensie (Friends of the Earth Netherlands), Harvest, Global Witness and supported by 16 other NGOs, since 2015, European banks have lent almost €256 billion ($278 billion) to major corporations active in sectors like soy, palm oil and cattle, that put rainforests, savannahs and other climate critical natural ecosystems at risk.
The businesses receiving funding from banks in the EU include the Brazilian livestock giant JBS, US-based food commodities company Cargill, and Indonesian conglomerate Sinar Mas, all corporations with reported links to recent nature destruction.
The EU is the second-largest global financial hub bankrolling these commodity sectors that are pushing precious and essential nature areas and critical forests past a point of no return. The new report shows that the EU finance sector, including banking giants such as BNP Paribas, Santander, Deutsche Bank, Rabobank and ING group, provided a staggering 22.1% of total global credit between 2016 and early 2023 to major corporate players in these sectors. The vast majority (86.6%) of this credit came from banks based in France, the Netherlands, Germany and Spain. Banks, pension funds, and asset managers based in the EU also provide 9.4% of current global investments to these “ecosystem risk sectors.” Read more Greenpeace
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The UK’s contribution to tackling global deforestation: Government Response to the Committee’s Fourth Report
This is a House of Commons Committee Special report.
Fifth Special Report of Session 2023–24
Introduction
The UK is committed to continuing to demonstrate international leadership in tackling global deforestation. We have showcased this recently at COP28 held in Dubai, setting out the UK’s strategic approach to tackling climate change, protecting nature, and ensuring food security, development, and prosperity.
The Government is grateful to the Environmental Audit Committee (“the Committee”) for its report on the UK’s contribution to tackling global deforestation. We will ensure the recommendations are fully taken into account as we work to monitor and address how the UK is supporting the preservation of the world’s forests in recognition of the devastating scale of global forest loss. Read more Publications Parliament UK
---------
UK Government rejects Committee’s call to prohibit products from legal deforestation
The Government has rejected the Environmental Audit Committee’s recommendation to prevent UK businesses from trading in products linked to deforestation, regardless of whether their production was legal.
The Committee had recommended the Government prevent UK businesses from trading in commodities linked to UN-defined deforestation in all cases, regardless of whether the deforestation was illegal or permitted by local laws. This ‘zero-deforestation’ approach would encourage consistency in trading such commodities across UK and European markets, increasing protections for areas at risk of deforestation.
But in its response to the Committee’s report, The UK’s contribution to tackling global deforestation, the Government said it believed “the only way to achieve zero global deforestation in supply chains is to work in partnership with producer countries – and that working in partnership requires us to uphold and respect national laws.” Read more Committees Parliament UK
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FGV Determined to have US CBP WRO Removed with Remediation Measures
KUALA LUMPUR, March 26 (Bernama) – FGV Holdings Bhd (FGV) is determined to have the Withhold Release Order (WRO) issued by the United States Customs and Border Protection (CBP) on Sept 30, 2020, modified.
CBP issued the WRO against the palm oil and palm oil products of FGV and its subsidiaries and joint ventures on Sept 30, 2020, barring entry of these products to the US.
Group chief sustainability officer Nurul Hasanah Ahamed Hassain Malim told Bernama that FGV has implemented remedial measures to get the US import ban lifted, including appointing global independent consultant Lloyd’s Register Quality Assurance (LRQA), formerly known as ELEVATE, to conduct an assessment of FGV’s operations against the 11 International Labour Organisation indicators of forced labour.
She said that as one of the world’s largest crude palm oil producers, FGV has implemented a recovery plan to reduce the risk of forced labour in its operations.
This includes an allocation of RM605 million for the construction of new housing for workers and improvements to their living conditions, said Nurul Hasanah.
“FGV has also allocated RM22.2 million to improve access to safe drinking water supply and RM15 million to improve internet access for workers, especially in remote operational areas,” she said. Read more Bernama
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Mar 25, 2024
Jakarta. Indonesia wants to wrap up the trade agreement negotiations with the Eurasian Economic Union (EAEU) -- of which Russia is a member -- later this year as Jakarta is hoping to not rely too much on traditional markets.
Indonesia is currently seeking to diversify its export markets from the usual China and Japan, among others. One of Jakarta’s strategies is to secure a trade deal with the EAEU -- an economic bloc that brings together Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. Last week, Armenia hosted the fourth round of negotiations, which saw some progress on the trade agreement. The next round is set to take place in Indonesia this July.
“If we keep this up, I’m optimistic we can meet the target of wrapping up the Indonesia-EAEU free trade agreement this year,” Johni Martha, the director for bilateral negotiations at the Trade Ministry, said in a statement.
The recent negotiation round saw both sides reaching a consensus on chapters related to standards, technical regulations, and conformity assessment procedures, as well as transparency. Both sides already finished discussing the chapters on customs. Read more Jakarta Globe
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Palm Oil Rallies on Strong Exports and Indonesian Policy Worry
(Bloomberg) -- Palm oil snapped a two-day drop on optimism that Malaysian exports will be robust this month, and on concerns that potential Indonesian policy changes could limit supplies from the biggest shipper.
The gains this morning are mainly due to the strength in Malaysia’s export performance this month, according to David Ng, a senior trader at IcebergX Sdn. in Kuala Lumpur. After the end of the morning session, Intertek Testing Services reported shipments climbed 14% during March 1-25 from a month earlier, thanks to stronger demand from Africa, India and the Middle East. AmSpec Agri will release data for the same period later Monday.
The market is also waiting for clarity on Indonesia’s plan to tweak its domestic market obligation policy, known as DMO, Ng said. The government is mulling a revision in the policy by linking it to production, instead of exports, Edy Priyono, deputy at the presidential staff office, said in Jakarta on Monday.
Read more: Indonesia Mulls Linking Cooking Oil Supply Quota with Output
The rule currently allows companies to export some palm oil products after supplying certain volumes of cooking oil domestically, but the policy is vulnerable when export demand slows down, Priyono said. Linking the DMO to output will help prevent impact from the global market, he added. Read more BNN Bloomberg
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Declining Indonesian palm oil exports may affect domestic supply, officials say
JAKARTA, March 25 (Reuters) - Indonesia's palm oil product exports slipped in January and February, raising concerns less of the edible oil will be available domestically because of the tie between overseas sales quotas and internal quotas, official said on Monday.
Indonesia, the world's biggest palm oil producer, shipped 1.89 million metric tons of palm oil products in January and 1.01 million tons in February, below the monthly average over the past year and year ago levels, Trade Ministry official Bambang Wisnubroto said.
Palm oil demand was hit by less competitive pricing compared to rivals such as soy and canola oils, Bambang said.
"Under this condition, importing countries would prefer other edible oils," he said at a weekly government meeting on inflation broadcast online. Read more Market Screener
Jakarta. Indonesia wants to wrap up the trade agreement negotiations with the Eurasian Economic Union (EAEU) -- of which Russia is a member -- later this year as Jakarta is hoping to not rely too much on traditional markets.
Indonesia is currently seeking to diversify its export markets from the usual China and Japan, among others. One of Jakarta’s strategies is to secure a trade deal with the EAEU -- an economic bloc that brings together Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. Last week, Armenia hosted the fourth round of negotiations, which saw some progress on the trade agreement. The next round is set to take place in Indonesia this July.
“If we keep this up, I’m optimistic we can meet the target of wrapping up the Indonesia-EAEU free trade agreement this year,” Johni Martha, the director for bilateral negotiations at the Trade Ministry, said in a statement.
The recent negotiation round saw both sides reaching a consensus on chapters related to standards, technical regulations, and conformity assessment procedures, as well as transparency. Both sides already finished discussing the chapters on customs. Read more Jakarta Globe
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Palm Oil Rallies on Strong Exports and Indonesian Policy Worry
(Bloomberg) -- Palm oil snapped a two-day drop on optimism that Malaysian exports will be robust this month, and on concerns that potential Indonesian policy changes could limit supplies from the biggest shipper.
The gains this morning are mainly due to the strength in Malaysia’s export performance this month, according to David Ng, a senior trader at IcebergX Sdn. in Kuala Lumpur. After the end of the morning session, Intertek Testing Services reported shipments climbed 14% during March 1-25 from a month earlier, thanks to stronger demand from Africa, India and the Middle East. AmSpec Agri will release data for the same period later Monday.
The market is also waiting for clarity on Indonesia’s plan to tweak its domestic market obligation policy, known as DMO, Ng said. The government is mulling a revision in the policy by linking it to production, instead of exports, Edy Priyono, deputy at the presidential staff office, said in Jakarta on Monday.
Read more: Indonesia Mulls Linking Cooking Oil Supply Quota with Output
The rule currently allows companies to export some palm oil products after supplying certain volumes of cooking oil domestically, but the policy is vulnerable when export demand slows down, Priyono said. Linking the DMO to output will help prevent impact from the global market, he added. Read more BNN Bloomberg
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Declining Indonesian palm oil exports may affect domestic supply, officials say
JAKARTA, March 25 (Reuters) - Indonesia's palm oil product exports slipped in January and February, raising concerns less of the edible oil will be available domestically because of the tie between overseas sales quotas and internal quotas, official said on Monday.
Indonesia, the world's biggest palm oil producer, shipped 1.89 million metric tons of palm oil products in January and 1.01 million tons in February, below the monthly average over the past year and year ago levels, Trade Ministry official Bambang Wisnubroto said.
Palm oil demand was hit by less competitive pricing compared to rivals such as soy and canola oils, Bambang said.
"Under this condition, importing countries would prefer other edible oils," he said at a weekly government meeting on inflation broadcast online. Read more Market Screener
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Mar 22, 2024
EU’s ban on palm oil import in biofuel seen as biased
KUALA LUMPUR: The European Union’s (EU) ban on the import of palm oil as a biofuel by 2030 is seen as lacking in transparency and scientific reliability which provides an inaccurate view of the sustainability practices practised in the country’s biofuel industry.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the ban is also seen as biased and will create undue restrictions and contradict free trade practices as it violates the principles of the World Trade Organisation (WTO), namely the Technical Barriers to Trade and the General Agreement on Tariffs and Trade 1994.
He said in this matter, Indonesia and Malaysia have filed complaints with the WTO against the EU’s actions — Indonesia filed its complaint on Dec 9, 2019, and Malaysia filed its complaint on Jan 15, 2021 (about 13 months after Indonesia).
“In my opinion, Malaysia should not have taken such action. This is because the Delegated Act under the Renewable Energy Directive II (RED II) targets palm oil-based biofuels and does not touch on sustainability issues related to palm oil in general,“ he said.
Based on the Delegated Act under the EU RED II, palm oil has been categorised as having a high indirect land-use change (ILUC) rate.
The import of palm oil as a biofuel source by the EU will be fully banned or phased out by 2030 if it is still categorised as having a high ILUC rate.
He said Indonesia is among the world’s leading biofuel producers; PME (palm methyl esters) is a key biofuel blend stock input in Indonesia and Malaysia.
“Based on statistics released by OilWorld, in 2023, an estimated 25.2 per cent (12.2 million tonnes) of Indonesia’s crude palm oil (CPO) production (48.4 million tonnes) was processed to produce PME. In the same period, Malaysia (recorded) only 7.7 per cent (1.4 million tonnes), of which biodiesel constituted 134,000 tonnes.
“Therefore, when the decision was announced, Indonesia took the stand that when it saw Malaysia had also filed this issue with the WTO, it decided to withdraw. They (Indonesia) suspended their case, so now it’s only Malaysia.
“That is why, today, the decision made by the WTO, no one wins. It has 20 issues related to this, 10 won by the EU and 10 won by Malaysia,“ he said.
However, he said many people out there do not understand the issue and it seems as if Malaysian palm oil is worse than Indonesia’s, when in fact Indonesia withdrew their case. Read more The SunMY/ Bernama
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Palm oil: POTC report reveals split supply chain strategy to address EUDR, concerns over smallholder exclusion
By Jane Byrne
Importers of palm oil and its derivatives, such as palm kernel oil and meal, are devising strategies to comply with the EU Deforestation Regulation (EUDR) in the short term.
According to a report by the Palm Oil Transparency Coalition (POTC), which comprises businesses collaborating to eliminate deforestation and exploitation from the palm oil production sector, importers are planning to split their supply chains. Palm materials that cannot be fully traced back to their origin will be directed to regions outside the EU.
The POTC report highlights that smallholders are likely to face disadvantages and exclusion from EU supply chains as a result due to the challenges in tracing palm volumes back to individual plantations.
Sian Allen, a consultant at 3Keel and one of the report's authors, speaking to this publication, noted that traders are navigating two conflicting demands. Firstly, there is a crucial need to avoid excluding smallholders from the supply chain, as palm oil is integral to the livelihoods of many communities in Malaysia and Indonesia. Excluding smallholders could discourage them from adopting sustainable practices, potentially exacerbating deforestation. Read more Feed Navigator
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RGE Closes US$1 billion Sustainability-Linked Loan and US$1 billion Sustainability-Linked Derivative with a Consortium of International Banks
RGE, a Singapore-headquartered multinational group of resource-based manufacturing companies, today announced the closing of a three-year, US$1 billion Sustainability-Linked Loan (SLL) for its sustainable agribusiness group consisting of Asian Agri and Apical.
The SLL, which includes a US$150 million Murabaha term facility that is AAOIFI-compliant, marks RGE’s inaugural sustainability-linked Islamic financing and serves as a catalyst for the company’s continued strategic expansion into key regions, including the Middle East where its local operations are witnessing exponential growth.
The US$1 billion SLL will be used to support RGE’s agribusiness’ operations, growth and expansion across its diverse product offerings to further contribute to the bioeconomy. It is also tied to key performance indicators (KPIs) to enhance: Engagement with the number of suppliers carrying out independent traceability verification, Utilisation of energy derived from renewable and clean energy sources, andCollaboration with NDPE[2]-compliant suppliers.
By embedding sustainability throughout the entire traceable and transparent supply chain, from cultivation to consumption, Asian Agri and Apical will enhance the value for its customers and partners, offering them environmentally and ethically sustainable products. This commitment aligns with the key actions discussed at the recently concluded COP28, where accelerating decarbonisation and pace of change is pledged by the heads of states and private sector leaders. Sawit Indonesia
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Indonesia-Apical Invests US$1 Billion to Expand Palm Oil Downstream Products in Dumai, Riau
SINGAPORE, March 22, 2024 /PRNewswire/ -- Apical, a leading vegetable oils processor with an expanding global footprint, has announced that it has invested US$1 billion in Dumai, Riau to boost the production of its value-added products in Indonesia.
The investment, which commenced at the end of 2021, aligns with Indonesia government's vision to advance the downstream industries and is part of Apical's ambitious plans to facilitate broader collaborations with its distributor partners both on and beyond Java Island and increase its local market penetration. This move is expected to expand the company's distribution network and contribute to the growth of the Indonesian economy.
"This investment affirms Apical's commitment to our local business and the positive development of the local palm oil industry. We believe that through downstream activities, we can make a significant contribution to the national economy, create more job opportunities and support the growth of the small and medium enterprises (SMEs) in the country," said Mr. Manumpak Manurung, Head of Government and Industry Relations at Apical.
Apical, a member of the RGE group of companies founded by Sukanto Tanoto, is dedicated to deepening collaborations with its stakeholders, covering local governments, food industry companies and Micro, Small and Medium Enterprises (UMKM) throughout Indonesia. Through collaborations with these stakeholders on various culinary creations and activities using Apical's extensive range of products, which include brands like Vitas, Medalia, Camar and Harumas, the company aims to stimulate the growth of the food industry and provide greater economic opportunities for the wider community.
Market Development Manager at Apical, Mr. George Tjijptamustika, said that the company is looking to increase the number of distributor partners on Java Island and open up new distribution areas outside of the island, such as in Sumatra, Kalimantan and Sulawesi. He further added that Apical plans to review its pricing strategies in order to make its products more accessible to more consumers. PR Newswire
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EU’s ban on palm oil import in biofuel seen as biased
KUALA LUMPUR: The European Union’s (EU) ban on the import of palm oil as a biofuel by 2030 is seen as lacking in transparency and scientific reliability which provides an inaccurate view of the sustainability practices practised in the country’s biofuel industry.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the ban is also seen as biased and will create undue restrictions and contradict free trade practices as it violates the principles of the World Trade Organisation (WTO), namely the Technical Barriers to Trade and the General Agreement on Tariffs and Trade 1994.
He said in this matter, Indonesia and Malaysia have filed complaints with the WTO against the EU’s actions — Indonesia filed its complaint on Dec 9, 2019, and Malaysia filed its complaint on Jan 15, 2021 (about 13 months after Indonesia).
“In my opinion, Malaysia should not have taken such action. This is because the Delegated Act under the Renewable Energy Directive II (RED II) targets palm oil-based biofuels and does not touch on sustainability issues related to palm oil in general,“ he said.
Based on the Delegated Act under the EU RED II, palm oil has been categorised as having a high indirect land-use change (ILUC) rate.
The import of palm oil as a biofuel source by the EU will be fully banned or phased out by 2030 if it is still categorised as having a high ILUC rate.
He said Indonesia is among the world’s leading biofuel producers; PME (palm methyl esters) is a key biofuel blend stock input in Indonesia and Malaysia.
“Based on statistics released by OilWorld, in 2023, an estimated 25.2 per cent (12.2 million tonnes) of Indonesia’s crude palm oil (CPO) production (48.4 million tonnes) was processed to produce PME. In the same period, Malaysia (recorded) only 7.7 per cent (1.4 million tonnes), of which biodiesel constituted 134,000 tonnes.
“Therefore, when the decision was announced, Indonesia took the stand that when it saw Malaysia had also filed this issue with the WTO, it decided to withdraw. They (Indonesia) suspended their case, so now it’s only Malaysia.
“That is why, today, the decision made by the WTO, no one wins. It has 20 issues related to this, 10 won by the EU and 10 won by Malaysia,“ he said.
However, he said many people out there do not understand the issue and it seems as if Malaysian palm oil is worse than Indonesia’s, when in fact Indonesia withdrew their case. Read more The SunMY/ Bernama
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Palm oil: POTC report reveals split supply chain strategy to address EUDR, concerns over smallholder exclusion
By Jane Byrne
Importers of palm oil and its derivatives, such as palm kernel oil and meal, are devising strategies to comply with the EU Deforestation Regulation (EUDR) in the short term.
According to a report by the Palm Oil Transparency Coalition (POTC), which comprises businesses collaborating to eliminate deforestation and exploitation from the palm oil production sector, importers are planning to split their supply chains. Palm materials that cannot be fully traced back to their origin will be directed to regions outside the EU.
The POTC report highlights that smallholders are likely to face disadvantages and exclusion from EU supply chains as a result due to the challenges in tracing palm volumes back to individual plantations.
Sian Allen, a consultant at 3Keel and one of the report's authors, speaking to this publication, noted that traders are navigating two conflicting demands. Firstly, there is a crucial need to avoid excluding smallholders from the supply chain, as palm oil is integral to the livelihoods of many communities in Malaysia and Indonesia. Excluding smallholders could discourage them from adopting sustainable practices, potentially exacerbating deforestation. Read more Feed Navigator
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RGE Closes US$1 billion Sustainability-Linked Loan and US$1 billion Sustainability-Linked Derivative with a Consortium of International Banks
RGE, a Singapore-headquartered multinational group of resource-based manufacturing companies, today announced the closing of a three-year, US$1 billion Sustainability-Linked Loan (SLL) for its sustainable agribusiness group consisting of Asian Agri and Apical.
The SLL, which includes a US$150 million Murabaha term facility that is AAOIFI-compliant, marks RGE’s inaugural sustainability-linked Islamic financing and serves as a catalyst for the company’s continued strategic expansion into key regions, including the Middle East where its local operations are witnessing exponential growth.
The US$1 billion SLL will be used to support RGE’s agribusiness’ operations, growth and expansion across its diverse product offerings to further contribute to the bioeconomy. It is also tied to key performance indicators (KPIs) to enhance: Engagement with the number of suppliers carrying out independent traceability verification, Utilisation of energy derived from renewable and clean energy sources, andCollaboration with NDPE[2]-compliant suppliers.
By embedding sustainability throughout the entire traceable and transparent supply chain, from cultivation to consumption, Asian Agri and Apical will enhance the value for its customers and partners, offering them environmentally and ethically sustainable products. This commitment aligns with the key actions discussed at the recently concluded COP28, where accelerating decarbonisation and pace of change is pledged by the heads of states and private sector leaders. Sawit Indonesia
---------
Indonesia-Apical Invests US$1 Billion to Expand Palm Oil Downstream Products in Dumai, Riau
SINGAPORE, March 22, 2024 /PRNewswire/ -- Apical, a leading vegetable oils processor with an expanding global footprint, has announced that it has invested US$1 billion in Dumai, Riau to boost the production of its value-added products in Indonesia.
The investment, which commenced at the end of 2021, aligns with Indonesia government's vision to advance the downstream industries and is part of Apical's ambitious plans to facilitate broader collaborations with its distributor partners both on and beyond Java Island and increase its local market penetration. This move is expected to expand the company's distribution network and contribute to the growth of the Indonesian economy.
"This investment affirms Apical's commitment to our local business and the positive development of the local palm oil industry. We believe that through downstream activities, we can make a significant contribution to the national economy, create more job opportunities and support the growth of the small and medium enterprises (SMEs) in the country," said Mr. Manumpak Manurung, Head of Government and Industry Relations at Apical.
Apical, a member of the RGE group of companies founded by Sukanto Tanoto, is dedicated to deepening collaborations with its stakeholders, covering local governments, food industry companies and Micro, Small and Medium Enterprises (UMKM) throughout Indonesia. Through collaborations with these stakeholders on various culinary creations and activities using Apical's extensive range of products, which include brands like Vitas, Medalia, Camar and Harumas, the company aims to stimulate the growth of the food industry and provide greater economic opportunities for the wider community.
Market Development Manager at Apical, Mr. George Tjijptamustika, said that the company is looking to increase the number of distributor partners on Java Island and open up new distribution areas outside of the island, such as in Sumatra, Kalimantan and Sulawesi. He further added that Apical plans to review its pricing strategies in order to make its products more accessible to more consumers. PR Newswire
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Mar 21, 2024
EU'S DISCRIMINATION AGAINST MALAYSIA'S PALM OIL AMONG MATTERS DISCUSSED IN PARLIAMENT TODAY
KUALA LUMPUR, March 21 (Bernama) --The European Union’s (EU) discrimination against palm oil produced by Malaysia is among the focus at the Dewan Rakyat sitting today.
According to the Order Paper on the Parliament website, the matter will be raised by Teresa Kok (PH-Seputeh) to the Minister of Plantation and Commodities during the Minister's Question Time.
Kok wants to know whether the decision of the World Trade Organisation (WTO) panel against Malaysia's appeal regarding the EU's discrimination against palm oil still allows the EU to implement the Delegated Act that bans palm oil as a biofuel by 2030. Read more Bernama
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Malaysia should have not filed dispute against EU with WTO over palm oil regulations- Johari Ghani
KUALA LUMPUR: Malaysia should not have filed a dispute complaint against the European Union (EU) with the World Trade Organisation (WTO) over palm oil-based biofuels, the Dewan Rakyat was told today.
Instead, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said Malaysia should let Indonesia do so and support the move made by the republic.
"In my opinion, Malaysia should not have filed a complaint with the WTO. This is because the Delegated Act under the Renewable Energy Directive (RED II) targets biofuels based on palm oil and does not address sustainability issues related to palm oil in general.
"Malaysia should instead support and remain as an observer in the case of Indonesia in defending palm oil as a biofuel source against any discrimination," he said in response to Teresa Kok (PH-Seputeh) Read more New Straits Times
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Discover the sustainable practices of Sime Darby Oils
In the heart of the palm oil industry, Sime Darby Oils stands as a beacon of sustainability and responsibility. As a subsidiary of Sime Darby Plantation Berhad, the world’s largest producer of Certified Sustainable Palm Oil (CSPO), and a founding member of the Roundtable on Sustainable Palm Oil (RSPO), the company is committed to leading the way in sustainable practices.
With operations spanning across eight countries, Sime Darby Oils is dedicated to advancing the production, procurement, and utilisation of sustainable palm oil products. Their mission aligns seamlessly with the United Nations Sustainable Development Goals (UN SDGs), reflecting a deep-rooted commitment to delivering sustainable futures.
Central to their approach is engagement with stakeholders and collaboration with business partners who share their dedication to sustainability. Through continuous dialogue and feedback, Sime Darby Oils strives for ongoing improvement, ensuring that their practices remain at the forefront of sustainability.
At the core of their operations are three charters that outline their commitments: the Responsible Agriculture Charter, the Human Rights Charter, and the Innovation & Productivity Charter. These charters serve as guiding principles, emphasising responsible environmental, social, and governance practices, as well as the importance of respecting human rights and fostering innovation and productivity across the value chain. Read more Eat Out
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US DEPARTMENT OF LABOR AWARDS $2M GRANT TO ILO FOR PROJECT TO STRENGTHEN GLOBAL SOCIAL COMPLIANCE SYSTEMS, COMBAT FORCED LABOR IN SUPPLY CHAINS
Part of the US government’s 2nd National Action Plan on Responsible Business Conduct
WASHINGTON – The U.S. Department of Labor today announced a $2 million award to the International Labor Organization to further support the use of worker-driven, social compliance systems to promote fundamental labor rights and acceptable work conditions, including an end to forced labor in supply chains.
Funded by the Bureau of International Labor Affairs, the Strengthening Social Compliance Systems Project will be piloted in the Indonesian palm oil sector in an effort to create or refine a model for worker-driven social compliance systems. Once refined, the model can be replicated in other countries and sectors to promote worker voice and fair working conditions.
Launched today as part of the U.S. government’s second National Action Plan on Responsible Business Conduct, the project is part of the action plan in which the U.S. government commits to leveraging its resources to advance responsible business conduct and identify, prevent and mitigate the risk of adverse business impacts. The plan also commits to deepening engagement with civil society, organized labor and the private sector; providing businesses with tools and incentives to conduct worker-centric due diligence; strengthening coordination with governments; and applying best practices and lessons learned in U.S. government operations. DOL
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Brands drop Singapore-listed palm oil giant after Deforestation Inc. exposé
ICIJ partner The Gecko Project previously found evidence the company, First Resources, violated its sustainability pledges and secretly controlled companies that cleared swaths of Indonesian rainforest.
Eight companies say they have suspended sourcing from palm oil giant First Resources after ICIJ partner The Gecko Project found the billionaire family behind it secretly controlled a network of “shadow” companies that cleared more forest for palm oil than any other firm in Southeast Asia.
The brands include skincare company Beiersdorf, which produces Nivea moisturizers; cleaning and personal care company Procter & Gamble; food manufacturers FrieslandCampina, Danone and Vandemoortele; laundry and hair-care company Henkel; vegetable oils firm Lipsa and chemicals company BASF, The Gecko Project reported.
In November, the U.K.-based investigative outlet revealed evidence that a trio of ostensibly independent Indonesia-registered companies were controlled by the Fangiano family, the majority shareholders of Singapore-listed First Resources, in breach of the company’s “sustainability” pledges and claims. Read more ICIJ
EU'S DISCRIMINATION AGAINST MALAYSIA'S PALM OIL AMONG MATTERS DISCUSSED IN PARLIAMENT TODAY
KUALA LUMPUR, March 21 (Bernama) --The European Union’s (EU) discrimination against palm oil produced by Malaysia is among the focus at the Dewan Rakyat sitting today.
According to the Order Paper on the Parliament website, the matter will be raised by Teresa Kok (PH-Seputeh) to the Minister of Plantation and Commodities during the Minister's Question Time.
Kok wants to know whether the decision of the World Trade Organisation (WTO) panel against Malaysia's appeal regarding the EU's discrimination against palm oil still allows the EU to implement the Delegated Act that bans palm oil as a biofuel by 2030. Read more Bernama
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Malaysia should have not filed dispute against EU with WTO over palm oil regulations- Johari Ghani
KUALA LUMPUR: Malaysia should not have filed a dispute complaint against the European Union (EU) with the World Trade Organisation (WTO) over palm oil-based biofuels, the Dewan Rakyat was told today.
Instead, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said Malaysia should let Indonesia do so and support the move made by the republic.
"In my opinion, Malaysia should not have filed a complaint with the WTO. This is because the Delegated Act under the Renewable Energy Directive (RED II) targets biofuels based on palm oil and does not address sustainability issues related to palm oil in general.
"Malaysia should instead support and remain as an observer in the case of Indonesia in defending palm oil as a biofuel source against any discrimination," he said in response to Teresa Kok (PH-Seputeh) Read more New Straits Times
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Discover the sustainable practices of Sime Darby Oils
In the heart of the palm oil industry, Sime Darby Oils stands as a beacon of sustainability and responsibility. As a subsidiary of Sime Darby Plantation Berhad, the world’s largest producer of Certified Sustainable Palm Oil (CSPO), and a founding member of the Roundtable on Sustainable Palm Oil (RSPO), the company is committed to leading the way in sustainable practices.
With operations spanning across eight countries, Sime Darby Oils is dedicated to advancing the production, procurement, and utilisation of sustainable palm oil products. Their mission aligns seamlessly with the United Nations Sustainable Development Goals (UN SDGs), reflecting a deep-rooted commitment to delivering sustainable futures.
Central to their approach is engagement with stakeholders and collaboration with business partners who share their dedication to sustainability. Through continuous dialogue and feedback, Sime Darby Oils strives for ongoing improvement, ensuring that their practices remain at the forefront of sustainability.
At the core of their operations are three charters that outline their commitments: the Responsible Agriculture Charter, the Human Rights Charter, and the Innovation & Productivity Charter. These charters serve as guiding principles, emphasising responsible environmental, social, and governance practices, as well as the importance of respecting human rights and fostering innovation and productivity across the value chain. Read more Eat Out
---------
US DEPARTMENT OF LABOR AWARDS $2M GRANT TO ILO FOR PROJECT TO STRENGTHEN GLOBAL SOCIAL COMPLIANCE SYSTEMS, COMBAT FORCED LABOR IN SUPPLY CHAINS
Part of the US government’s 2nd National Action Plan on Responsible Business Conduct
WASHINGTON – The U.S. Department of Labor today announced a $2 million award to the International Labor Organization to further support the use of worker-driven, social compliance systems to promote fundamental labor rights and acceptable work conditions, including an end to forced labor in supply chains.
Funded by the Bureau of International Labor Affairs, the Strengthening Social Compliance Systems Project will be piloted in the Indonesian palm oil sector in an effort to create or refine a model for worker-driven social compliance systems. Once refined, the model can be replicated in other countries and sectors to promote worker voice and fair working conditions.
Launched today as part of the U.S. government’s second National Action Plan on Responsible Business Conduct, the project is part of the action plan in which the U.S. government commits to leveraging its resources to advance responsible business conduct and identify, prevent and mitigate the risk of adverse business impacts. The plan also commits to deepening engagement with civil society, organized labor and the private sector; providing businesses with tools and incentives to conduct worker-centric due diligence; strengthening coordination with governments; and applying best practices and lessons learned in U.S. government operations. DOL
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Brands drop Singapore-listed palm oil giant after Deforestation Inc. exposé
ICIJ partner The Gecko Project previously found evidence the company, First Resources, violated its sustainability pledges and secretly controlled companies that cleared swaths of Indonesian rainforest.
Eight companies say they have suspended sourcing from palm oil giant First Resources after ICIJ partner The Gecko Project found the billionaire family behind it secretly controlled a network of “shadow” companies that cleared more forest for palm oil than any other firm in Southeast Asia.
The brands include skincare company Beiersdorf, which produces Nivea moisturizers; cleaning and personal care company Procter & Gamble; food manufacturers FrieslandCampina, Danone and Vandemoortele; laundry and hair-care company Henkel; vegetable oils firm Lipsa and chemicals company BASF, The Gecko Project reported.
In November, the U.K.-based investigative outlet revealed evidence that a trio of ostensibly independent Indonesia-registered companies were controlled by the Fangiano family, the majority shareholders of Singapore-listed First Resources, in breach of the company’s “sustainability” pledges and claims. Read more ICIJ
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Mar 20, 2024
EU firms face new climate due diligence rules
The European Parliament today adopted a law that will oblige larger companies to mitigate their impact on human rights and the environment.
The directive lays down obligations for EU and non-EU firms and parent companies with over 1,000 employees and with a turnover of more than €450mn ($489mn). It will also apply to franchises with a turnover of more than €80mn if at least €22.5mn was generated by royalties.
Companies will also have to draw up a transition plan "making their business model compatible with the global warming limit of 1.5°C under the Paris Agreement".
The directive, which needs to be transposed into EU states' national laws, sets out an obligation to "adopt and put into effect a transition plan for climate change mitigation which aims to ensure, through best efforts, compatibility of the business model and strategy of the company with the transition to a sustainable economy and with the limiting of global warming to 1.5°C".
The new requirements will apply to the companies' "own operations, the operations of their subsidiaries, and the operations carried out by their business partners in companies' chains of activities". Read more Argus Media
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Will EU delay EUDR deadline?
19-Mar-2024 By Donna Eastlake
Rumours are rife that the EU is planning to delay the EUDR deadline past 30 December 2024. But is this true, and if not, are suppliers and manufacturers ready? Read more Food Navigator
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Biomass burn increases in February at Japan's Erex
Japanese utility Erex's biomass-fired generation at its four dedicated power plants rose from a year earlier in February, with output at the co-fired Itoigawa plant also increasingly sharply.
The group's combined biomass-fired output at the Toasa, Saiki, Buzen and Nakagusku power plants rose by 4.3pc from the previous year to 116.3GWh in February, Erex data show. Generation increased at all but Tosa, which suspended operations for a half day on 20 February because of an equipment inspection.
Output at the 149MW co-fired Itoigawa power plant rose sharply to 85GWh in February from 2GWh a year earlier, when it had suspended operations for nearly the whole month "due to fuel constraints", Erex said.
Erex bought a 64pc stake in Itoigawa from Japanese utility J-Power as part of its strategy to increase domestic power generation capacity. It tested co-firing biomass with coal at Itoigawa in mid- to late September 2023 with test ratios for wood pellets co-firing ranging between 10-30pc. Erex previously said it aims to switch to full biomass firing at Itoigawa by 2030 without seeking government support under the feed-in-tariff scheme, with most of the feedstock to be imported.
The utility operates a combined 269MW of wood pellet and palm kernel shell-fired capacity (see table), importing most of the feedstock. Erex does not publish output data for its 75MW biomass-fired Ofunato plant. Argus Media
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Dutch company Wilhelmina to build US$60m TG2 black pellet plant in Pahang, Malaysia
KUALA LUMPUR: Dutch renewable energy company Maatschappij Wilhelmina NV is investing US$60 million (RM283 million) to build a TG2 black pellet plant, the first of its kind in the world, that uses empty fruit bunches (EFB) from oil palms as feedstock to produce drop-in coal replacement fuel in Pahang
The plant with a production capacity of 15 tonnes an hour will be located in Phase 3 of the Gebeng Industrial Area in Kuantan. Construction is expected to begin in the fourth quarter of this year, be completed in 16 to 18 months’ time.
Wilhelmina CEO and co-founder Barthold van Doorn said it sees tremendous opportunities in generating renewable and carbon neutral energy through recycling industrial agricultural waste streams in Malaysia as the country is the second biggest producer of palm oil in the world.
“This TG2 black pellet which will use EFB as feedstock will be the first of its kind in the world. We are primarily focused on the Southeast Asian region and Malaysia ticked all the boxes for us to locate our first plant. As the second largest producer of palm oil globally, we understand Malaysia generates some 20 million tonnes of EFB waste a year.
“Instead of being left to decay or filling up landfill, these can be transformed into a clean and high-energy coal replacement that could reduce as much as 12 million tonnes of methane, equivalent to 300 million tonnes of CO2. This can certainly contribute towards Malaysian government’s target of becoming a carbon-neutral nation by 2050,” van Doorn told a press conference at the collaboration agreement signing ceremony yesterday between Wilhelmina and Ecoscience International Bhd for the engineering, procurement and construction (EPC) work of the plant via wholly owned subsidiary Ecoscience Manufacturing & Engineering Sdn Bhd. Read more The SunMY
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Startup Offers EV Firms Greener Graphite in Alternative to China
An alternative energy startup in Malaysia is ready to help electric-vehicle makers source a key ingredient outside of China — using agriculture waste to create graphite.
(Bloomberg) — An alternative energy startup in Malaysia is ready to help electric-vehicle makers source a key ingredient outside of China — using agriculture waste to create graphite.
Graphjet Technology said it can turn palm kernels into graphite — an essential component in EV battery anodes — from its facility in Malaysia, one of the world’s top producers of palm oil. The company, which started trading on Nasdaq Friday, expects to begin producing the ingredient in the second quarter, targeting an annual capacity of 3,000 tons, according to Chief Executive Officer Aiden Lee.
Synthetic graphite, which accounts for most of global production, is typically made from petroleum coke, in an expensive and carbon-intensive process. Graphjet says its process cuts the carbon footprint by 83% while reducing costs by 80%.
The company’s projected output is small in comparison to the huge global demand for the critical mineral, which BloombergNEF estimates may almost triple to 2.4 million metric tons by 2030. However, Graphjet’s production offers EV makers an alternative source to China, which accounts for 90% of the synthetic variety. Read more Financial Post
EU firms face new climate due diligence rules
The European Parliament today adopted a law that will oblige larger companies to mitigate their impact on human rights and the environment.
The directive lays down obligations for EU and non-EU firms and parent companies with over 1,000 employees and with a turnover of more than €450mn ($489mn). It will also apply to franchises with a turnover of more than €80mn if at least €22.5mn was generated by royalties.
Companies will also have to draw up a transition plan "making their business model compatible with the global warming limit of 1.5°C under the Paris Agreement".
The directive, which needs to be transposed into EU states' national laws, sets out an obligation to "adopt and put into effect a transition plan for climate change mitigation which aims to ensure, through best efforts, compatibility of the business model and strategy of the company with the transition to a sustainable economy and with the limiting of global warming to 1.5°C".
The new requirements will apply to the companies' "own operations, the operations of their subsidiaries, and the operations carried out by their business partners in companies' chains of activities". Read more Argus Media
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Will EU delay EUDR deadline?
19-Mar-2024 By Donna Eastlake
Rumours are rife that the EU is planning to delay the EUDR deadline past 30 December 2024. But is this true, and if not, are suppliers and manufacturers ready? Read more Food Navigator
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Biomass burn increases in February at Japan's Erex
Japanese utility Erex's biomass-fired generation at its four dedicated power plants rose from a year earlier in February, with output at the co-fired Itoigawa plant also increasingly sharply.
The group's combined biomass-fired output at the Toasa, Saiki, Buzen and Nakagusku power plants rose by 4.3pc from the previous year to 116.3GWh in February, Erex data show. Generation increased at all but Tosa, which suspended operations for a half day on 20 February because of an equipment inspection.
Output at the 149MW co-fired Itoigawa power plant rose sharply to 85GWh in February from 2GWh a year earlier, when it had suspended operations for nearly the whole month "due to fuel constraints", Erex said.
Erex bought a 64pc stake in Itoigawa from Japanese utility J-Power as part of its strategy to increase domestic power generation capacity. It tested co-firing biomass with coal at Itoigawa in mid- to late September 2023 with test ratios for wood pellets co-firing ranging between 10-30pc. Erex previously said it aims to switch to full biomass firing at Itoigawa by 2030 without seeking government support under the feed-in-tariff scheme, with most of the feedstock to be imported.
The utility operates a combined 269MW of wood pellet and palm kernel shell-fired capacity (see table), importing most of the feedstock. Erex does not publish output data for its 75MW biomass-fired Ofunato plant. Argus Media
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Dutch company Wilhelmina to build US$60m TG2 black pellet plant in Pahang, Malaysia
KUALA LUMPUR: Dutch renewable energy company Maatschappij Wilhelmina NV is investing US$60 million (RM283 million) to build a TG2 black pellet plant, the first of its kind in the world, that uses empty fruit bunches (EFB) from oil palms as feedstock to produce drop-in coal replacement fuel in Pahang
The plant with a production capacity of 15 tonnes an hour will be located in Phase 3 of the Gebeng Industrial Area in Kuantan. Construction is expected to begin in the fourth quarter of this year, be completed in 16 to 18 months’ time.
Wilhelmina CEO and co-founder Barthold van Doorn said it sees tremendous opportunities in generating renewable and carbon neutral energy through recycling industrial agricultural waste streams in Malaysia as the country is the second biggest producer of palm oil in the world.
“This TG2 black pellet which will use EFB as feedstock will be the first of its kind in the world. We are primarily focused on the Southeast Asian region and Malaysia ticked all the boxes for us to locate our first plant. As the second largest producer of palm oil globally, we understand Malaysia generates some 20 million tonnes of EFB waste a year.
“Instead of being left to decay or filling up landfill, these can be transformed into a clean and high-energy coal replacement that could reduce as much as 12 million tonnes of methane, equivalent to 300 million tonnes of CO2. This can certainly contribute towards Malaysian government’s target of becoming a carbon-neutral nation by 2050,” van Doorn told a press conference at the collaboration agreement signing ceremony yesterday between Wilhelmina and Ecoscience International Bhd for the engineering, procurement and construction (EPC) work of the plant via wholly owned subsidiary Ecoscience Manufacturing & Engineering Sdn Bhd. Read more The SunMY
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Startup Offers EV Firms Greener Graphite in Alternative to China
An alternative energy startup in Malaysia is ready to help electric-vehicle makers source a key ingredient outside of China — using agriculture waste to create graphite.
(Bloomberg) — An alternative energy startup in Malaysia is ready to help electric-vehicle makers source a key ingredient outside of China — using agriculture waste to create graphite.
Graphjet Technology said it can turn palm kernels into graphite — an essential component in EV battery anodes — from its facility in Malaysia, one of the world’s top producers of palm oil. The company, which started trading on Nasdaq Friday, expects to begin producing the ingredient in the second quarter, targeting an annual capacity of 3,000 tons, according to Chief Executive Officer Aiden Lee.
Synthetic graphite, which accounts for most of global production, is typically made from petroleum coke, in an expensive and carbon-intensive process. Graphjet says its process cuts the carbon footprint by 83% while reducing costs by 80%.
The company’s projected output is small in comparison to the huge global demand for the critical mineral, which BloombergNEF estimates may almost triple to 2.4 million metric tons by 2030. However, Graphjet’s production offers EV makers an alternative source to China, which accounts for 90% of the synthetic variety. Read more Financial Post
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Mar 19, 2024
EU palm oil ban: Malaysia, Indonesia seek trade justice
David Hutt
A WTO panel's ruling on the EU's palm oil import policy has intensified trade tensions with Malaysia and Indonesia, highlighting environmental and trade rule disputes.
A World Trade Organization (WTO) panel ruled earlier this month on a complaint brought by Malaysia against the European Union over the bloc's plans to phase out the import of palm oil as biofuel because of environmental concerns.
Malaysia, the world's second largest producer of palm oil after Indonesia, brought a case to the WTO in early 2021 against the EU, France and Lithuania.
The Southeast Asian country contested that the EU had violated international trade rules in its policy to phase-out the import of palm oil as a biofuel due to deforestation and emissions risks under the EU's second Renewable Energy Directive (RED II).
Indonesia also filed a case with the WTO but asked for it to be suspended a day before the result of Malaysia's case was announced.
What was the WTO decision based on?
The three-person panel voted by two-to-one in favor of the EU's ability make rules against imports of crop-based fuels for environmental reasons.
However, it also said that the EU was at fault for how it had prepared and published its policy, which amounted to "arbitrary or unjustifiable discrimination" against Malaysia. Read more DW
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Malaysian palm oil producers welcome expected delay in EUDR regulations
Palm oil producers in Malaysia have reportedly welcomed plans from the EU that would see a delay in implementing its much-publicised deforestation regulation policies that have met with fears in South East Asia and Latin America over elevated costs for farmers, reports Neill Barston.
An investigation from the Financial Times noted that European parliament officials had indicated that the new proposed EUDR legislation – which was due to come into force in December 2024, will now not see locations graded by apparent risk, enabling them greater time to meet compliance standards.
Under the terms of the legislation as it was originally put forward, countries would be bracketed into low, medium and high risk zones, but this, according to latest reports, is set to be watered down to initially band all nations under a ‘standard’ rating in order to allow them greater time to review their operations.
The EUDR regulations have been designed to ensure greater transparency within supply chains, centred on creating a standard that ensures that products EU citizens consume are not contributing towards global deforestation. Furthermore, it also ties in respect for human rights within local producing populations as a core element of the legislation, which applies to major commodities including cocoa, coffee and rubber.
As observed by the Mypalmoilpolicy.com industry organisation, Malaysian prime minister, Anwar Ibrahim stated recently that “the EU should show some sort of appreciation, and at least give recognition to the efforts by Malaysia,” which comes as sector observers express concern that the South East Asian country’s hundreds of thousands of farmers would be negatively impacted by the burdens of EUDR regulation if additional requirements are put in place. Read more Confectionery Production
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Ownership of oil palm giant Presco returns to Nigeria after 33-year Belgian control
Presco is the country’s biggest fully integrated agro-industrial palm processor, according to GCR Ratings.
Oil palm powerhouse Presco switched ownership from long-time investor Siat N.V, based in Brussels, Belgium, which had held on to the company’s majority control for well over three decades until the start of this month.
Fimave N.V., holder of 86.7 per cent of the total issued shares of Siat, which owned a 60 per cent interest in Presco, consummated a deal shifting that stake to Oak and Saffron Limited, the oil palm processor said in a regulatory note.
Oak and Saffron, PREMIUM TIMES check with Corporate Affairs Commission shows, is backed by Rasheed Sarumi, founder, owner and managing director of Saro Africa International, an agribusiness group whose subsidiaries include Gossy Warm Springs, Saro Agrosciences, Saro Oil Palms and Saro Lifecare.
Oak and Saffron is “established for oil palm, rubber and horticulture businesses” and “intends to keep Presco Plc Plc listed on the NGX,” Presco stated in the document. Yet, the company has little or no online presence, with no website.
The document said the transaction is “strategic” for Oak and Saffron, especially “its long-term commitment to developing the oil palm and rubber industries in West Africa and the horticulture industry in China, Belgium and the United States.”
The takeover moves the control of approximately 50,000 hectares of currently-cultivated oil palms on a plantation able to produce 100,000 metric tons of palm kernel oil, crude palm oil and natural rubber in thousands of metric tons every year to the new investor. Read more Premium TimesNG
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Green COP Announces Strategic Collaboration with IOI
Innovative biofuel solutions company Green COP, has announced a strategic collaboration with IOI Corporation Berhad (IOI), a leading global integrated palm oil player.
Leveraging IOI’s expertise in creating a sustainable palm oil supply chain along with Green COP’s innovative biofuel technology, the collaboration aims to convert empty fruit bunches (EFB), a by-product of palm oil processing, into sustainable biofuels.
Under the partnership, IOI will play a crucial role in supporting the pilot plant including providing the required feedstock, space and utilities.
Green COP, with its proprietary technology, specializes in the efficient conversion of lignocellulosic biomass, including EFB, into biofuels through a patented pre-treatment and fermentation process. This innovative and cost-effective approach not only maximizes resource utilization but also minimizes waste generation, contributing to the circular economy and environmental sustainability.
“We are thrilled to embark on this collaboration with IOI,” said Dr. Hanson Lee, co-founder and Chief Executive Officer of Green COP. “By combining IOI’s expertise in sustainable palm oil production with Green COP’s innovative biofuel technology, we aim to create sustainable biofuels solution that have a positive impact on the environment and society.”
The partnership will set up a pilot plant at an IOI palm oil mill site capable of processing a ton of biomass daily to produce sustainable biofuels. These biofuels, designed as drop-in fuels for ships, can be easily integrated without extensive ship modifications. ESG News Asia
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Japan's 2025-26 FiP, FiT small biomass price unchanged
Japan's trade and industry ministry (Meti) has decided to maintain the feed-in-premium (FiP) and feed-in-tariff (FiT) price for small biomass power projects at ¥24/kWh ($160/MWh) for the April 2025-March 2026 fiscal year.
The purchasing cost of electricity applies to projects that use general woody and agricultural biomass with less than 10MW capacity under the FiP scheme. Plants with capacity between 50kW-1MW can choose the FiT scheme if the projects can contribute to regional development. The general biomass fuels include imported and domestically produced woody material such as chips and pellets, palm kernel shells and palm trunk. The new price will be the same as 2024-25.
The FiP price for a general biomass power plant with more than 10MW and a palm oil-fired plant with no capacity limit is decided through a tender system, which was launched in 2018-19 to enhance market competitiveness of biomass power projects. The 2024-25 tender is scheduled to be completed in November with it seeking 120MW of capacity. But the committee under Meti is considering reducing the tender biomass capacity to 30MW as there has been no bidders since 2021-22, while giving a flexibility to raise the upper limit to 140MW, in case larger projects join the tender. Argus Media
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Graphjet Technology, The World’s Only Direct Biomass-to-Graphite Producer, Completes Transaction and Will Begin Trading on Nasdaq
Graphjet, utilizing its proven, commercial and patented technologies to sustainably produce graphite from agricultural waste, becomes the leading source of graphite and graphene for the U.S. market
Graphjet’s vertically integrated environmentally friendly solution provides up to an 83% reduction in carbon footprint and up to an 80% reduction in cost compared to traditional processes
Graphjet is well positioned for growth, with a new facility beginning production in Q2 2024, to support a $30 million offtake customer agreement with Toyoda
KUALA LUMPUR, Malaysia, March 14, 2024 (GLOBE NEWSWIRE) -- Graphjet Technology (“Graphjet” or “the Company”), a leading developer of patented technologies to produce graphite and graphene directly from agricultural waste, and Energem Corp. (“Energem”) (Nasdaq: ENCP, ENCPW) today announced they have closed their previously announced business combination (“the Business Combination”). The transaction, which was approved on February 28, 2024, by Energem stockholders, creates the only pure-play publicly traded direct biomass-to-graphite company, establishing the Company as the leading source of graphite and graphene for the U.S market.
Beginning tomorrow, March 15, 2024, Graphjet’s ordinary shares will start trading on Nasdaq under the ticker symbol “GTI.” Graphjet’s warrants will be delisted from Nasdaq and begin trading on the OTC market under the symbol “GTIWW” on March 15, 2024. Graphjet’s CEO, Lee Ping Wei (Aiden Lee), and the rest of the Company’s current management team are expected to remain in leadership positions. Read more Nasdaq
EU palm oil ban: Malaysia, Indonesia seek trade justice
David Hutt
A WTO panel's ruling on the EU's palm oil import policy has intensified trade tensions with Malaysia and Indonesia, highlighting environmental and trade rule disputes.
A World Trade Organization (WTO) panel ruled earlier this month on a complaint brought by Malaysia against the European Union over the bloc's plans to phase out the import of palm oil as biofuel because of environmental concerns.
Malaysia, the world's second largest producer of palm oil after Indonesia, brought a case to the WTO in early 2021 against the EU, France and Lithuania.
The Southeast Asian country contested that the EU had violated international trade rules in its policy to phase-out the import of palm oil as a biofuel due to deforestation and emissions risks under the EU's second Renewable Energy Directive (RED II).
Indonesia also filed a case with the WTO but asked for it to be suspended a day before the result of Malaysia's case was announced.
What was the WTO decision based on?
The three-person panel voted by two-to-one in favor of the EU's ability make rules against imports of crop-based fuels for environmental reasons.
However, it also said that the EU was at fault for how it had prepared and published its policy, which amounted to "arbitrary or unjustifiable discrimination" against Malaysia. Read more DW
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Malaysian palm oil producers welcome expected delay in EUDR regulations
Palm oil producers in Malaysia have reportedly welcomed plans from the EU that would see a delay in implementing its much-publicised deforestation regulation policies that have met with fears in South East Asia and Latin America over elevated costs for farmers, reports Neill Barston.
An investigation from the Financial Times noted that European parliament officials had indicated that the new proposed EUDR legislation – which was due to come into force in December 2024, will now not see locations graded by apparent risk, enabling them greater time to meet compliance standards.
Under the terms of the legislation as it was originally put forward, countries would be bracketed into low, medium and high risk zones, but this, according to latest reports, is set to be watered down to initially band all nations under a ‘standard’ rating in order to allow them greater time to review their operations.
The EUDR regulations have been designed to ensure greater transparency within supply chains, centred on creating a standard that ensures that products EU citizens consume are not contributing towards global deforestation. Furthermore, it also ties in respect for human rights within local producing populations as a core element of the legislation, which applies to major commodities including cocoa, coffee and rubber.
As observed by the Mypalmoilpolicy.com industry organisation, Malaysian prime minister, Anwar Ibrahim stated recently that “the EU should show some sort of appreciation, and at least give recognition to the efforts by Malaysia,” which comes as sector observers express concern that the South East Asian country’s hundreds of thousands of farmers would be negatively impacted by the burdens of EUDR regulation if additional requirements are put in place. Read more Confectionery Production
---------
Ownership of oil palm giant Presco returns to Nigeria after 33-year Belgian control
Presco is the country’s biggest fully integrated agro-industrial palm processor, according to GCR Ratings.
Oil palm powerhouse Presco switched ownership from long-time investor Siat N.V, based in Brussels, Belgium, which had held on to the company’s majority control for well over three decades until the start of this month.
Fimave N.V., holder of 86.7 per cent of the total issued shares of Siat, which owned a 60 per cent interest in Presco, consummated a deal shifting that stake to Oak and Saffron Limited, the oil palm processor said in a regulatory note.
Oak and Saffron, PREMIUM TIMES check with Corporate Affairs Commission shows, is backed by Rasheed Sarumi, founder, owner and managing director of Saro Africa International, an agribusiness group whose subsidiaries include Gossy Warm Springs, Saro Agrosciences, Saro Oil Palms and Saro Lifecare.
Oak and Saffron is “established for oil palm, rubber and horticulture businesses” and “intends to keep Presco Plc Plc listed on the NGX,” Presco stated in the document. Yet, the company has little or no online presence, with no website.
The document said the transaction is “strategic” for Oak and Saffron, especially “its long-term commitment to developing the oil palm and rubber industries in West Africa and the horticulture industry in China, Belgium and the United States.”
The takeover moves the control of approximately 50,000 hectares of currently-cultivated oil palms on a plantation able to produce 100,000 metric tons of palm kernel oil, crude palm oil and natural rubber in thousands of metric tons every year to the new investor. Read more Premium TimesNG
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Green COP Announces Strategic Collaboration with IOI
Innovative biofuel solutions company Green COP, has announced a strategic collaboration with IOI Corporation Berhad (IOI), a leading global integrated palm oil player.
Leveraging IOI’s expertise in creating a sustainable palm oil supply chain along with Green COP’s innovative biofuel technology, the collaboration aims to convert empty fruit bunches (EFB), a by-product of palm oil processing, into sustainable biofuels.
Under the partnership, IOI will play a crucial role in supporting the pilot plant including providing the required feedstock, space and utilities.
Green COP, with its proprietary technology, specializes in the efficient conversion of lignocellulosic biomass, including EFB, into biofuels through a patented pre-treatment and fermentation process. This innovative and cost-effective approach not only maximizes resource utilization but also minimizes waste generation, contributing to the circular economy and environmental sustainability.
“We are thrilled to embark on this collaboration with IOI,” said Dr. Hanson Lee, co-founder and Chief Executive Officer of Green COP. “By combining IOI’s expertise in sustainable palm oil production with Green COP’s innovative biofuel technology, we aim to create sustainable biofuels solution that have a positive impact on the environment and society.”
The partnership will set up a pilot plant at an IOI palm oil mill site capable of processing a ton of biomass daily to produce sustainable biofuels. These biofuels, designed as drop-in fuels for ships, can be easily integrated without extensive ship modifications. ESG News Asia
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Japan's 2025-26 FiP, FiT small biomass price unchanged
Japan's trade and industry ministry (Meti) has decided to maintain the feed-in-premium (FiP) and feed-in-tariff (FiT) price for small biomass power projects at ¥24/kWh ($160/MWh) for the April 2025-March 2026 fiscal year.
The purchasing cost of electricity applies to projects that use general woody and agricultural biomass with less than 10MW capacity under the FiP scheme. Plants with capacity between 50kW-1MW can choose the FiT scheme if the projects can contribute to regional development. The general biomass fuels include imported and domestically produced woody material such as chips and pellets, palm kernel shells and palm trunk. The new price will be the same as 2024-25.
The FiP price for a general biomass power plant with more than 10MW and a palm oil-fired plant with no capacity limit is decided through a tender system, which was launched in 2018-19 to enhance market competitiveness of biomass power projects. The 2024-25 tender is scheduled to be completed in November with it seeking 120MW of capacity. But the committee under Meti is considering reducing the tender biomass capacity to 30MW as there has been no bidders since 2021-22, while giving a flexibility to raise the upper limit to 140MW, in case larger projects join the tender. Argus Media
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Graphjet Technology, The World’s Only Direct Biomass-to-Graphite Producer, Completes Transaction and Will Begin Trading on Nasdaq
Graphjet, utilizing its proven, commercial and patented technologies to sustainably produce graphite from agricultural waste, becomes the leading source of graphite and graphene for the U.S. market
Graphjet’s vertically integrated environmentally friendly solution provides up to an 83% reduction in carbon footprint and up to an 80% reduction in cost compared to traditional processes
Graphjet is well positioned for growth, with a new facility beginning production in Q2 2024, to support a $30 million offtake customer agreement with Toyoda
KUALA LUMPUR, Malaysia, March 14, 2024 (GLOBE NEWSWIRE) -- Graphjet Technology (“Graphjet” or “the Company”), a leading developer of patented technologies to produce graphite and graphene directly from agricultural waste, and Energem Corp. (“Energem”) (Nasdaq: ENCP, ENCPW) today announced they have closed their previously announced business combination (“the Business Combination”). The transaction, which was approved on February 28, 2024, by Energem stockholders, creates the only pure-play publicly traded direct biomass-to-graphite company, establishing the Company as the leading source of graphite and graphene for the U.S market.
Beginning tomorrow, March 15, 2024, Graphjet’s ordinary shares will start trading on Nasdaq under the ticker symbol “GTI.” Graphjet’s warrants will be delisted from Nasdaq and begin trading on the OTC market under the symbol “GTIWW” on March 15, 2024. Graphjet’s CEO, Lee Ping Wei (Aiden Lee), and the rest of the Company’s current management team are expected to remain in leadership positions. Read more Nasdaq
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Mar 18, 2024
Malaysia govt, Petronas eye 300 mt retail UCO collection in 2024
KUALA LUMPUR, March 16 (Bernama) -- The Plantation and Commodities Ministry (KPK), in partnership with Petronas Dagangan Bhd (PDB), targets to collect 300,000 kilogrammes (kg) of used cooking oil (UCO) in 2024 under the UCO Collection Programme.
Minister Datuk Seri Johari Abdul Ghani said KPK and PDB plan to expand the collection network to 50 Petronas petrol stations nationwide and to attract the participation of 15,000 members of the public.
“From July 2023 until February 2024, a total of 205,000 kg of UCO was collected from 35 Petronas stations with the participation of 11,593 members of the public,” he said when launching the UCO Collection Programme at the Desa Pandan Ramadan bazaar here today in conjunction with the “Ikhlas Ramadan bersama Gas Petronas” programme.
During Ramadan, Petronas and KPK have agreed to expand the UCO Collection Programme to selected Ramadan bazaars, including in Selangor such as in USJ4, Bandar Kinrara, Puchong Prima and Puncak Jalil (PUJ3).
Johari said Petronas is offering to purchase UCO for RM3 per kg in the peninsula except in the West Coast and East Coast as well as Sabah and Sarawak, where the price is set at RM2.50 per kg.
“The programme is a joint effort between PDB and KPK to raise public awareness on protecting the environment.
“At the same time, the programme can generate additional income for households and expand the potential of sustainable biofuel production using UCO to reduce greenhouse gas emissions,” he said.
He said the programme represents a proactive measure by Petronas specifically and the country in general to prepare for the commercialisation of sustainable aviation fuel (SAF) towards meeting the carbon neutral growth target for the international aviation sector. Read more Bernama
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A sustainable future for palm
From ice cream to livestock feed rations, palm oil is a common ingredient found throughout all stages of the dairy supply chain.
Valued for its unique melting point, mixability and low odour, it has become one of the top global edible oils by consumption since the palm oil boom of the early 1990s, says Catherine Barton, Policy Lead on Deforestation-Free Commodities and Regenerative Agriculture for Chester Zoo.
“Palm is incredibly versatile and allows for manufacturing methods, product properties and extended shelf life that otherwise would not be possible if replaced with a different ingredient,” explains Ms Barton.
In on-farm dairy production this goes a step further, with palm oil fractions used in the manufacture of many types of rumen-protected fat supplements as highly energy-dense ingredients with unique fatty acid profiles. These supplements are targeted to improve various aspects of dairy production including milk yield, milk fat production and cow fertility, says Dr Richard Kirkland, Global Technical Manager and nutritionist for Volac Wilmar Feed Ingredients (VWFI). Read more Farming Life
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Ban import of palm oil, demand Tiruppur ryots
Farmers assembled at a private marriage hall near Palladam road and raised slogans asking officials to stop the sale of palm oil in PDS shops.
TIRUPPUR: Hundreds of farmers held a rally near the Tiruppur district collectorate seeking the inclusion of coconut oil and groundnut oil for sale through Public Distribution System throughout Tamil Nadu.
Farmers assembled at a private marriage hall near Palladam road and raised slogans asking officials to stop the sale of palm oil in PDS shops. They said several thousand tonnes of refined palm oil are imported every year from Malaysia and are widely distributed in all the PDS shops in Tamil Nadu and other states. However, coconut trees are grown throughout the country and the price of copra has dropped to Rs 10.
The protesting farmers claimed that if the State and the Union government procured coconut oil and other crops through cooperative departments and civil supplies departments, it could greatly benefit coconut farmers. So, we seek an immediate ban on the import of palm oil from Malaysia and initiate procurement of coconut oil for the welfare of farmers.
The rally ended near the collectorate. Read more New Indian Express
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Massive deforestation in Borneo destroying orangutan habitat
Jakarta, Indonesia – Today, a coalition of leading environmental organizations have released the report Deforestation Anonymous that sheds light on the alarming resurgence of deforestation in Indonesia, driven by PT Mayawana Persada in Indonesian Borneo. The evidence presented in the report documents the largest current case of deforestation among all pulpwood and oil palm plantation companies in Indonesia. In the last three years, PT Mayawana Persada, which operates a forestry concession in Indonesia’s West Kalimantan province on the island of Borneo, has cleared more than 33,000 hectares of rainforest, an area nearly half the size of Singapore.[1]
The report reveals that Mayawana is part of a larger trend where companies are using complex corporate structures involving offshore secrecy jurisdictions to continue clearing tropical forests. This deforestation has destroyed habitat for Bornean orangutans and other endangered species, and has catalyzed a conflict between the company and a local Dayak community.
“Over 55,000 hectares of rainforest remains in the Mayawana concession, making it a critical test case for efforts to control deforestation in Indonesia,” said Hilman Afif of Auriga Nusantara, one of the environmental groups that co-published the investigation. Yet the company’s opaque ownership structure makes it difficult to know who should be held accountable for the company’s destructive activities.
Mayawana is owned by a chain of holding companies that leads to the secrecy jurisdictions of the British Virgin Islands and Samoa, neither of which require the names of shareholders to be disclosed to the public. “This complex corporate structure, in effect, hides the ultimate beneficial owner(s) of the company and can shield them from the legal and reputational risks of destroying such vast tracts of tropical forest,” said Arie Rompas of Greenpeace Indonesia. Read more Greenpeace
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Indonesia's Attorny Generals Office (AGO) Probes Alleged Rp 5 Trillion Corruption at LPEI
Jakarta. The Attorney General's Office (AGO) is currently probing a report from the Finance Ministry concerning alleged corruption involving the Indonesian Export Financing Agency (LPEI), also known as Indonesia Eximbank, totaling more than Rp 5 trillion ($318,5 million).
Attorney General Sanitiar Burhanuddin disclosed that in the initial phase, four debtors flagged by the Ministry were under investigation for potential credit facilities fraud, amounting to a total of Rp 2.5 trillion.
"For this initial phase, the total amount is Rp 2.5 trillion, involving debtors (companies) such as RII with around Rp 1.8 trillion, SMR with Rp 216 billion, SRI with Rp 1.44 billion, and BRS with Rp 300.5 billion," Burhanuddin stated during a press conference at the Attorney General's Office on Monday.
These companies operate in the coal, nickel, shipping, and crude palm oil (CPO) sectors.
He further stated that a second phase would ensue, involving six companies, amounting to Rp 3 trillion.
Finance Minister Sri Mulyani confirmed receipt of a report detailing the investigation findings on problematic loans at LPEI.
Finance Minister Sri Mulyani indicated receipt of a report concerning suspicious loans, potentially involving fraudulent activities by the debtors.
Previously, the Supreme Audit Agency (BPK) had forwarded a report on the outcomes of the state losses calculation examination to the Attorney General's Office regarding alleged corruption at LPEI spanning from 2013 to 2019. Read more Jakarta Globe
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Malaysia Welcomes Delay in EU Deforestation Rules
The Financial Times reports that EU officials are preparing to delay a key element of the EU Deforestation Regulation (EUDR), following pushback by Malaysia and other developing nations – led by Prime Minister Anwar Ibrahim, who in 2023 called for the EU to revise the EUDR, saying, “the EU (European Union) should show some sort of appreciation. At least give recognition and recognise the efforts by Malaysia”.
The Prime Minister’s comments were echoed in recent weeks by Plantation and Commodities Minister Johari Abdul Ghani who responded to a recent WTO ruling that proved EU discrimination against Malaysian palm oil, saying “This ruling from WTO demonstrates that Malaysia’s claims of discrimination are indeed justified. This vindicates Malaysia’s pursuit of justice for our biodiesel traders, companies and employees”.
Malaysia has set out clearly the case against EUDR for almost two years, now. In particular, concerns that EUDR rules would disadvantage Malaysia’s hundreds of thousands of small farmers. Overall, Malaysian exporters already have in place the tools to comply with strict deforestation criteria. The Malaysian Sustainable Palm Oil (MSPO) certification standard guarantees no deforestation and good agricultural practices, and can meet standards set in the EU, and anywhere else.
The concerns around small farmers are important, however. Thirteen other developing nations joined Malaysia in this effort, writing a letter directly to EU leaders in 2023. India, Brazil and others wrote that the EUDR was “discriminatory”, “burdensome” and “impractical”.
The information reported by the Financial Times suggests that these voices may, belatedly, have been listened to. The proposed ‘High Risk’ and ‘Low Risk’ designations are the elements being delayed. The proposal in EUDR was that different countries would be given different designations, with ‘High Risk’ countries subject to higher costs, more checks, and generally more burdens, in addition to the reputational damage. This now reportedly will not be included in EUDR as of the implementation deadline of December 31st 2024. All other elements of the EUDR appear to be proceeding, for now.
This is a welcome development. The ‘High Risk’ label had no evidence base and no clear process set out. Countries such as Malaysia – that has a proven sustainable track record, an internationally-accepted certification standard, and clear data demonstrating no deforestation – are clearly not high risk, and should not be considered as such.
Two primary questions though remain: Read more MY Palm Oil Policy
Malaysia govt, Petronas eye 300 mt retail UCO collection in 2024
KUALA LUMPUR, March 16 (Bernama) -- The Plantation and Commodities Ministry (KPK), in partnership with Petronas Dagangan Bhd (PDB), targets to collect 300,000 kilogrammes (kg) of used cooking oil (UCO) in 2024 under the UCO Collection Programme.
Minister Datuk Seri Johari Abdul Ghani said KPK and PDB plan to expand the collection network to 50 Petronas petrol stations nationwide and to attract the participation of 15,000 members of the public.
“From July 2023 until February 2024, a total of 205,000 kg of UCO was collected from 35 Petronas stations with the participation of 11,593 members of the public,” he said when launching the UCO Collection Programme at the Desa Pandan Ramadan bazaar here today in conjunction with the “Ikhlas Ramadan bersama Gas Petronas” programme.
During Ramadan, Petronas and KPK have agreed to expand the UCO Collection Programme to selected Ramadan bazaars, including in Selangor such as in USJ4, Bandar Kinrara, Puchong Prima and Puncak Jalil (PUJ3).
Johari said Petronas is offering to purchase UCO for RM3 per kg in the peninsula except in the West Coast and East Coast as well as Sabah and Sarawak, where the price is set at RM2.50 per kg.
“The programme is a joint effort between PDB and KPK to raise public awareness on protecting the environment.
“At the same time, the programme can generate additional income for households and expand the potential of sustainable biofuel production using UCO to reduce greenhouse gas emissions,” he said.
He said the programme represents a proactive measure by Petronas specifically and the country in general to prepare for the commercialisation of sustainable aviation fuel (SAF) towards meeting the carbon neutral growth target for the international aviation sector. Read more Bernama
---------
A sustainable future for palm
From ice cream to livestock feed rations, palm oil is a common ingredient found throughout all stages of the dairy supply chain.
Valued for its unique melting point, mixability and low odour, it has become one of the top global edible oils by consumption since the palm oil boom of the early 1990s, says Catherine Barton, Policy Lead on Deforestation-Free Commodities and Regenerative Agriculture for Chester Zoo.
“Palm is incredibly versatile and allows for manufacturing methods, product properties and extended shelf life that otherwise would not be possible if replaced with a different ingredient,” explains Ms Barton.
In on-farm dairy production this goes a step further, with palm oil fractions used in the manufacture of many types of rumen-protected fat supplements as highly energy-dense ingredients with unique fatty acid profiles. These supplements are targeted to improve various aspects of dairy production including milk yield, milk fat production and cow fertility, says Dr Richard Kirkland, Global Technical Manager and nutritionist for Volac Wilmar Feed Ingredients (VWFI). Read more Farming Life
---------
Ban import of palm oil, demand Tiruppur ryots
Farmers assembled at a private marriage hall near Palladam road and raised slogans asking officials to stop the sale of palm oil in PDS shops.
TIRUPPUR: Hundreds of farmers held a rally near the Tiruppur district collectorate seeking the inclusion of coconut oil and groundnut oil for sale through Public Distribution System throughout Tamil Nadu.
Farmers assembled at a private marriage hall near Palladam road and raised slogans asking officials to stop the sale of palm oil in PDS shops. They said several thousand tonnes of refined palm oil are imported every year from Malaysia and are widely distributed in all the PDS shops in Tamil Nadu and other states. However, coconut trees are grown throughout the country and the price of copra has dropped to Rs 10.
The protesting farmers claimed that if the State and the Union government procured coconut oil and other crops through cooperative departments and civil supplies departments, it could greatly benefit coconut farmers. So, we seek an immediate ban on the import of palm oil from Malaysia and initiate procurement of coconut oil for the welfare of farmers.
The rally ended near the collectorate. Read more New Indian Express
---------
Massive deforestation in Borneo destroying orangutan habitat
Jakarta, Indonesia – Today, a coalition of leading environmental organizations have released the report Deforestation Anonymous that sheds light on the alarming resurgence of deforestation in Indonesia, driven by PT Mayawana Persada in Indonesian Borneo. The evidence presented in the report documents the largest current case of deforestation among all pulpwood and oil palm plantation companies in Indonesia. In the last three years, PT Mayawana Persada, which operates a forestry concession in Indonesia’s West Kalimantan province on the island of Borneo, has cleared more than 33,000 hectares of rainforest, an area nearly half the size of Singapore.[1]
The report reveals that Mayawana is part of a larger trend where companies are using complex corporate structures involving offshore secrecy jurisdictions to continue clearing tropical forests. This deforestation has destroyed habitat for Bornean orangutans and other endangered species, and has catalyzed a conflict between the company and a local Dayak community.
“Over 55,000 hectares of rainforest remains in the Mayawana concession, making it a critical test case for efforts to control deforestation in Indonesia,” said Hilman Afif of Auriga Nusantara, one of the environmental groups that co-published the investigation. Yet the company’s opaque ownership structure makes it difficult to know who should be held accountable for the company’s destructive activities.
Mayawana is owned by a chain of holding companies that leads to the secrecy jurisdictions of the British Virgin Islands and Samoa, neither of which require the names of shareholders to be disclosed to the public. “This complex corporate structure, in effect, hides the ultimate beneficial owner(s) of the company and can shield them from the legal and reputational risks of destroying such vast tracts of tropical forest,” said Arie Rompas of Greenpeace Indonesia. Read more Greenpeace
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Indonesia's Attorny Generals Office (AGO) Probes Alleged Rp 5 Trillion Corruption at LPEI
Jakarta. The Attorney General's Office (AGO) is currently probing a report from the Finance Ministry concerning alleged corruption involving the Indonesian Export Financing Agency (LPEI), also known as Indonesia Eximbank, totaling more than Rp 5 trillion ($318,5 million).
Attorney General Sanitiar Burhanuddin disclosed that in the initial phase, four debtors flagged by the Ministry were under investigation for potential credit facilities fraud, amounting to a total of Rp 2.5 trillion.
"For this initial phase, the total amount is Rp 2.5 trillion, involving debtors (companies) such as RII with around Rp 1.8 trillion, SMR with Rp 216 billion, SRI with Rp 1.44 billion, and BRS with Rp 300.5 billion," Burhanuddin stated during a press conference at the Attorney General's Office on Monday.
These companies operate in the coal, nickel, shipping, and crude palm oil (CPO) sectors.
He further stated that a second phase would ensue, involving six companies, amounting to Rp 3 trillion.
Finance Minister Sri Mulyani confirmed receipt of a report detailing the investigation findings on problematic loans at LPEI.
Finance Minister Sri Mulyani indicated receipt of a report concerning suspicious loans, potentially involving fraudulent activities by the debtors.
Previously, the Supreme Audit Agency (BPK) had forwarded a report on the outcomes of the state losses calculation examination to the Attorney General's Office regarding alleged corruption at LPEI spanning from 2013 to 2019. Read more Jakarta Globe
---------
Malaysia Welcomes Delay in EU Deforestation Rules
The Financial Times reports that EU officials are preparing to delay a key element of the EU Deforestation Regulation (EUDR), following pushback by Malaysia and other developing nations – led by Prime Minister Anwar Ibrahim, who in 2023 called for the EU to revise the EUDR, saying, “the EU (European Union) should show some sort of appreciation. At least give recognition and recognise the efforts by Malaysia”.
The Prime Minister’s comments were echoed in recent weeks by Plantation and Commodities Minister Johari Abdul Ghani who responded to a recent WTO ruling that proved EU discrimination against Malaysian palm oil, saying “This ruling from WTO demonstrates that Malaysia’s claims of discrimination are indeed justified. This vindicates Malaysia’s pursuit of justice for our biodiesel traders, companies and employees”.
Malaysia has set out clearly the case against EUDR for almost two years, now. In particular, concerns that EUDR rules would disadvantage Malaysia’s hundreds of thousands of small farmers. Overall, Malaysian exporters already have in place the tools to comply with strict deforestation criteria. The Malaysian Sustainable Palm Oil (MSPO) certification standard guarantees no deforestation and good agricultural practices, and can meet standards set in the EU, and anywhere else.
The concerns around small farmers are important, however. Thirteen other developing nations joined Malaysia in this effort, writing a letter directly to EU leaders in 2023. India, Brazil and others wrote that the EUDR was “discriminatory”, “burdensome” and “impractical”.
The information reported by the Financial Times suggests that these voices may, belatedly, have been listened to. The proposed ‘High Risk’ and ‘Low Risk’ designations are the elements being delayed. The proposal in EUDR was that different countries would be given different designations, with ‘High Risk’ countries subject to higher costs, more checks, and generally more burdens, in addition to the reputational damage. This now reportedly will not be included in EUDR as of the implementation deadline of December 31st 2024. All other elements of the EUDR appear to be proceeding, for now.
This is a welcome development. The ‘High Risk’ label had no evidence base and no clear process set out. Countries such as Malaysia – that has a proven sustainable track record, an internationally-accepted certification standard, and clear data demonstrating no deforestation – are clearly not high risk, and should not be considered as such.
Two primary questions though remain: Read more MY Palm Oil Policy
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Mar 17, 2024
India’s first integrated Oil Palm Processing Unit by 3F Oil Palm starts commercial operations
Roing (Arunachal Pradesh) [India], March 17 (ANI): India's first integrated Oil Palm Processing Unit by 3F Oil Palm, one of India's largest Oil Palm development companies, started its commercial operations on Saturday and the factory situated at Roing in lower Dibang Valley in Arunachal Pradesh, carries forward Mission Palm Oil, representing a pivotal step in India's journey towards self-reliance in edible oils, catalyzed by the National Mission on Edible Oils - Oil Palm (NMEO-OP).
This integrated Oil Palm project will include a cutting-edge oil palm factory (Palm Oil Processing and Refinery), a zero-discharge effluent plant, a palm waste-based power plant, and additional structures and go-downs for support purposes.
This factory marks the first Oil Palm factory in Arunachal Pradesh and India's first Oil Palm Factory under NMEO-OP.
The inauguration of the 3F Oil Palm Processing Unit in Arunachal Pradesh was virtually carried out by Prime Minister Narendra Modi on March 9, 2024, marking the commencement of a transformative journey.
Prime Minister Modi laid the foundation stone for various other projects worth over Rs 55,000 crore, reinforcing the government's commitment to the development of the Northeast.
Speaking about this inauguration at the Viksit Bharat - Viksit Northeast event in Arunachal Pradesh, Prime Minister Narendra Modi highlighted the government's focus on Mission Palm Oil, with a special focus on Northeast, to not only achieve Atmanirbharta but also to empower farmers and boost farmer income. He thanked Northeast farmers for their enthusiastic participation and dedication to palm cultivation following the launch of the Palm Mission, which holds a promise for a brighter future. MSN
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Malaysia receives invitation to join Climate Club
HAMBURG: Malaysia has agreed in principle to join the Climate Club, an intergovernmental forum for exchange on accelerating climate change action and industry decarbonisation.
Prime Minister Datuk Seri Anwar Ibrahim said the invitation was extended to Malaysia by German Chancellor Olaf Schulz.
"Chancellor Scholz had suggested that we work together in addressing environmental concerns.
"Malaysia has agreed in principle to the invitation, to boost the level of cooperation, as we have in other sectors such as the economy and education," he told Malaysian media at the end of his six-day official visit to Germany.
Malaysia, he said, can capitalise on this in terms of technology transfer and capacity-building.
"It will also strengthen Malaysia's profile on climate action efforts as well as commitments to fulfill obligations under the Paris Agreement," he said. Read more New Straits Times
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Malaysian companies record sales of RM1.49bil at Gulfood 2024 in Dubai
KUALA LUMPUR: Eighty Malaysian companies have recorded sales worth RM1.49 billion at the world’s largest food exhibition, Gulfood 2024, held in Dubai, United Arab Emirates, from Feb 19-23.
Malaysia External Trade Development Corporation (Matrade) chairman Reezal Merican Naina Merican said the sales amount marked a significant increase of 57.9% over the RM943.46 million recorded in 2023.
He said more companies took part this time in the exhibition. Last year, only 71 companies took part and the exhibition was extended from four days to five days this year.
“Of the total sales, RM579.1 million were actual sales while RM916.75 million are potential sales,” he told Bernama.
Reezal said the success reflected Malaysian companies’ ability to expand their exports and enter global markets through platforms such as Gulfood.
He was proud to note that most of the companies were micro, small and medium enterprises, with the majority being Bumiputera companies.
He said Matrade would continue to monitor the progress of the sales every month to ensure the potential sales of RM916.75 million were realised. Read more FMT
India’s first integrated Oil Palm Processing Unit by 3F Oil Palm starts commercial operations
Roing (Arunachal Pradesh) [India], March 17 (ANI): India's first integrated Oil Palm Processing Unit by 3F Oil Palm, one of India's largest Oil Palm development companies, started its commercial operations on Saturday and the factory situated at Roing in lower Dibang Valley in Arunachal Pradesh, carries forward Mission Palm Oil, representing a pivotal step in India's journey towards self-reliance in edible oils, catalyzed by the National Mission on Edible Oils - Oil Palm (NMEO-OP).
This integrated Oil Palm project will include a cutting-edge oil palm factory (Palm Oil Processing and Refinery), a zero-discharge effluent plant, a palm waste-based power plant, and additional structures and go-downs for support purposes.
This factory marks the first Oil Palm factory in Arunachal Pradesh and India's first Oil Palm Factory under NMEO-OP.
The inauguration of the 3F Oil Palm Processing Unit in Arunachal Pradesh was virtually carried out by Prime Minister Narendra Modi on March 9, 2024, marking the commencement of a transformative journey.
Prime Minister Modi laid the foundation stone for various other projects worth over Rs 55,000 crore, reinforcing the government's commitment to the development of the Northeast.
Speaking about this inauguration at the Viksit Bharat - Viksit Northeast event in Arunachal Pradesh, Prime Minister Narendra Modi highlighted the government's focus on Mission Palm Oil, with a special focus on Northeast, to not only achieve Atmanirbharta but also to empower farmers and boost farmer income. He thanked Northeast farmers for their enthusiastic participation and dedication to palm cultivation following the launch of the Palm Mission, which holds a promise for a brighter future. MSN
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Malaysia receives invitation to join Climate Club
HAMBURG: Malaysia has agreed in principle to join the Climate Club, an intergovernmental forum for exchange on accelerating climate change action and industry decarbonisation.
Prime Minister Datuk Seri Anwar Ibrahim said the invitation was extended to Malaysia by German Chancellor Olaf Schulz.
"Chancellor Scholz had suggested that we work together in addressing environmental concerns.
"Malaysia has agreed in principle to the invitation, to boost the level of cooperation, as we have in other sectors such as the economy and education," he told Malaysian media at the end of his six-day official visit to Germany.
Malaysia, he said, can capitalise on this in terms of technology transfer and capacity-building.
"It will also strengthen Malaysia's profile on climate action efforts as well as commitments to fulfill obligations under the Paris Agreement," he said. Read more New Straits Times
---------
Malaysian companies record sales of RM1.49bil at Gulfood 2024 in Dubai
KUALA LUMPUR: Eighty Malaysian companies have recorded sales worth RM1.49 billion at the world’s largest food exhibition, Gulfood 2024, held in Dubai, United Arab Emirates, from Feb 19-23.
Malaysia External Trade Development Corporation (Matrade) chairman Reezal Merican Naina Merican said the sales amount marked a significant increase of 57.9% over the RM943.46 million recorded in 2023.
He said more companies took part this time in the exhibition. Last year, only 71 companies took part and the exhibition was extended from four days to five days this year.
“Of the total sales, RM579.1 million were actual sales while RM916.75 million are potential sales,” he told Bernama.
Reezal said the success reflected Malaysian companies’ ability to expand their exports and enter global markets through platforms such as Gulfood.
He was proud to note that most of the companies were micro, small and medium enterprises, with the majority being Bumiputera companies.
He said Matrade would continue to monitor the progress of the sales every month to ensure the potential sales of RM916.75 million were realised. Read more FMT
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Mar 16, 2024
After Delays, EU Approves Corporate Sustainability Due Diligence Law
Jon McGowan
After weeks of delays, the European Commission has approved the Corporate Sustainability Due Diligence Directive. The CSDDD creates a legal liability for companies relating to environmental and human rights violations within their supply chain. However, to reach an agreement, the final CSDDD is significantly watered down from the initial proposal. A move that will frustrate sustainability advocates. The directive will now go to the European Parliament for approval.
As the name implies, the CSDDD, also called the CS3D, establishes a corporate due diligence standard on sustainability issues for businesses operating in the EU. In this case, sustainability most directly applies to environmental concerns, climate change, and human rights.
The new due diligence requirements apply not only to the direct actions of the company, but also to their subsidiaries and supply chain. EU based companies, as well as non-EU companies that conduct a set level of business in the EU, could become liable for the actions of their suppliers.
The final draft of the CSDDD, released on January 30, initially appeared poised for easy approval. However, that support quickly eroded following Germany’s indication they will abstain from the vote. France, Italy, and other members followed Germany’s lead, making it became clear that the European Council would be unable to get a majority vote in support.
What followed was 45 days of closed-door negotiations, false starts, and political pressure that was an emotional roller coaster for sustainability advocates. Facing a March 15 deadline, the European Council repeatedly placed the CSDDD on the agenda, only to remove it at the last moment when it became clear support was lacking. Read more Forbes
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MEMBER STATES SAVE, BUT SIGNIFICANTLY WEAKEN THE DUE DILIGENCE DIRECTIVE AT LAST MINUTE
Today, the Coreper adopted the agreement on the Corporate Sustainability Due Diligence Directive.
Heidi Hautala, Greens/EFA MEP, Vice-President of the European Parliament and Shadow rapporteur in the Legal Affairs committee, comments:
“Finally, the EU Member States got their act together and reached an agreement on the Corporate Sustainability Due Diligence Directive. The price of the agreement was a significant dilution of the level of ambition of the legislation. The scope of the directive will be limited to companies with over one thousand employees instead of five hundred. High-risks sectors were deleted entirely and the legislation's entry into force will be further delayed.
“The behaviour of the Council and Member States in recent months has been reprehensible and damaging to the credibility of EU decision-making. Instead of respecting the December trilogue agreement, already a balanced compromise, Member States engaged in endless rounds of horse-trading and last-minute attempts to water down the legislation.
“Despite this sabotage by the FDP party in the German government, Italy, France, Finland, and others, the core of the directive remains intact. The UN Guiding Principles on Business and Human Rights will be, for the first time, codified in EU law, and businesses will be obliged to conduct environmental and human rights due diligence in their value chains.
“Beneficiaries of CSDDD will be the millions of people in modern slavery and other victims of corporate negligence and abuse. Responsible companies will also benefit from a level playing field and businesses will finally get more engaged in the fight against climate change.”
More:
The Council will formally adopt the agreement, after which it will be voted in the Legal Affairs Committee of the European Parliament with a final vote in the plenary in April. Green EFA
---------
Corporate sustainability and Due Diligence Directive: the good, the bad, and the ugly
The good: the EU Council finally reached an agreement on the Due Diligence Directive. The directive is a fundamental piece of legislation to tackle forced labour worldwide and ensure EU companies promote social rights and good working conditions worldwide, and will work in tandem with the regulation banning products made with forced labour.
The bad, however, is the scope: the net turnover for a company to be covered was agreed, in December, over €150 million. In February, it was doubled to €300 million. The agreement today dials it up again, to €450million. With the new threshold, only some 5400 companies will be affected: 0.05% of the total.
The ugly: this means the directive is weakened, and millions of workers who would have been protected under the December compromise are left behind now. For countries like Germany, the Directive will cover less companies than their current domestic legislation.
Despite the drawbacks, the directive remains a powerful tool, having a European standard on corporate due diligence means having fair competition based on a common set of rules and from the Workers’ Group we urge member states to swiftly transpose and implement it in letter and spirit. We will continue working with our national organisations to ensure this is the case. EESC Europa
---------
Corporate accountability law: EU countries give free pass to two-thirds of companies
EU Member States today agreed to back a renegotiated Corporate Sustainability Due Diligence Directive that includes major concessions - meaning many big companies will face no repercussions for abusing human rights or damaging the environment.
National governments voted on a deal struck in December, which establishes a comprehensive legal framework for communities anywhere in the world to sue large companies operating in the EU responsible for human rights abuses and linked environmental harms in European courts.
However, after weeks of delay and pushback from countries such as Germany, France and Italy, governments voted through a diluted agreement that will profoundly limit the law’s power.
The number of companies that the law applies to will be cut by almost two thirds – from approximately 16,300 to 5,400 as compared to the deal struck in December. Most of those companies will have roughly five years before these rules apply to them. This is even lower than a deal that was on the table last week, which would have captured approximately 1,400 more companies (6,838 in total). [1]
The deal agreed in December would have included safeguards to prevent human rights abuses and environmental damage by smaller companies in high-risk sectors – such as the mining, construction and garment industries. Yet the deal struck today gives these companies a free pass. [2]
A further weakening of the original deal means that companies will not be responsible for their waste disposal – which has been identified as a major issue in, among others, the fashion industry.
Aurelie Skrobik, corporate accountability campaigner at Global Witness, said Read more Global Witness
---------
Europe's new palm oil rules stir debate over environmental protection and jobs
Europe's ban on deforestation-linked imports puts Malaysia and Indonesia's economic interests at risk.
Patricia Cohen reports for The New York Times.
In short:
The European Union mandates tracing for a wide array of products to combat deforestation, impacting 85% of the world's palm oil supply from Malaysia and Indonesia.
Developing countries view the regulation as an economic threat, with allegations of "regulatory imperialism" from Indonesia's economic minister.
Compliance challenges may disproportionately affect smallholders, further exacerbating environmental damage and poverty.
Key quote:
"We're not questioning the need to fight deforestation. But it's not fair when countries that have deforested their own land for centuries, or are responsible for much of our deforestation, can unilaterally impose conditions on us."
— Nik Nazmi Nik Ahmad, Malaysia’s environment minister
Why this matters: Read more Environmental Health News
---------
Debunking Myths and Recognizing Benefits of Palm Oil
Its palm oil, a basic ingredient in almost 70% of personal care stuff like soap, shampoo, makeup, and lotion. This oil is everywhere – in margarine, ice cream, chocolate, detergent, instant noodles, biodiesel, cosmetics, and cooking oil.
People have been using palm oil in food for a long time, but recently, its getting more attention for being good for health. In India, where more than 1.3 billion people live, palm oil is not just for cooking – its in lots of different foods and products. India is the biggest buyer of palm oil globally, getting more than 20% of the worlds supply.
Palm oil has been a subject of ongoing debate and discourse, marked by numerous myths and misconceptions regarding its production and utilisation.
Myth: Health Concerns with Palm Oil
Theres a misconception that palm oil is unhealthy due to its high saturated fat content.
This belief is challenged by the examples of coconut oil and ghee, both high in saturated fats, yet not considered detrimental to health. The impact of fats on human health is intricate, and recent studies challenging the notion that all saturated fats are unhealthy.
Differentiating between plant-based saturated fats (e.g., coconut and palm oil) and animal-based ones is crucial, as highlighted in a report on ghee. Saturated fats are essential for optimal human health.
Palm oil, with its balanced composition of nutritious fats, including beta-carotene and Vitamin E-tocotrienols, contributes to a healthy diet when used in moderation.
Recognizing the Benefits
Not just good for cooking, palm oil also has important nutrients like Vitamin E and antioxidants that are good for our skin and health conditions such as:
Improving brain function Read more NetworkKNT
---------
Indonesia eyes F&B transactions worth Rp35.7 bln at Mexico expo
Jakarta (ANTARA) - The Indonesian government is targeting to earn Rp35.7 billion (US$2.3 million) from food and beverage (F&B) transactions at Mexico's Asociación Nacional de Tiendas de Autoservicio y Departamentales (ANTAD) Expo 2024.
Indonesian Ambassador to Mexico, Cheppy Triprakoso Wartono, in a statement issued by the Indonesian Trade Ministry in Jakarta on Friday, said that Indonesia's participation in the exhibition, held in Guadalajara, Mexico, from March 12–24, 2024, is a strategic step to further popularize its F&B products among Mexicans.
"Indonesia needs to consistently participate in such events to make its F&B products more popular in Mexican markets. Indonesian delegates should make the most of this opportunity to promote the country's unique and high-quality F&B products," he added.
At the exhibition, the Pavilion Indonesia booth is displaying assorted biscuits, snacks, instant noodles, herbal and traditional health drinks, as well as typical teas and coffees.
The ambassador expressed the hope that the expo would link Indonesian producers with Mexican buyers, importers, distributors, and retailers. Indonesia could use Mexico as a gateway to North American and South American markets, he added.
"Some F&B products from Indonesia have managed to penetrate the network of major retailers in Mexico. That is a feat deserving appreciation. We need to keep pushing," he said.
Meanwhile, head of the Indonesian Trade Promotion Center (ITPC) in Mexico city, Sunny Adrian, informed that his office has been routinely helping Indonesian businesses feature at ANTAD. Read more Antara
---------
India's first oil palm processing unit commences operations in Arunachal Pradesh
In a historic milestone for India's agricultural sector, India's first integrated Oil Palm Processing unit by 3F Oil Palm, one of India's largest Oil Palm development companies, started its commercial operations today. The factory situated at Roing in lower Dibang Valley in Arunachal Pradesh carries forwardMission Palm Oil, representing a pivotal step in India's journey towards self-reliance in edible oils, catalyzed by the National Mission on Edible Oils - Oil Palm (NMEO-OP).
This integrated Oil Palm project will include a cutting-edge oil palm factory (Palm Oil Processing and Refinery), a zero-discharge effluent plant, a palm waste-based power plant, and additional structures and go-downs for support purposes. This factory marks the first Oil Palm factory in Arunachal Pradesh and India's first Oil Palm Factory under NMEO-OP.
The inauguration of the 3F Oil Palm Processing Unit in Arunachal Pradesh was virtually carried out by Prime Minister Narendra Modi on 9th March 2024. Marking the commencement of a transformative journey. Hon'ble Prime Minister laid the foundation stone for various other projects worth over Rs 55,000 Crore, reinforcing the government's commitment to the development of the Northeast.
Speaking about this inauguration at the Viksit Bharat - Viksit Northeast event in Arunachal Pradesh, Prime Minister Narendra Modi highlighted the government's focus on Mission Palm Oil, with a special focus on Northeast, to not only achieve Atmanirbharta but also to empower farmers and boost farmer income. He thanked Northeast farmers for their enthusiastic participation and dedication to palm cultivation following the launch of the Palm Mission, which holds a promise for a brighter future. Read more India Today NE
After Delays, EU Approves Corporate Sustainability Due Diligence Law
Jon McGowan
After weeks of delays, the European Commission has approved the Corporate Sustainability Due Diligence Directive. The CSDDD creates a legal liability for companies relating to environmental and human rights violations within their supply chain. However, to reach an agreement, the final CSDDD is significantly watered down from the initial proposal. A move that will frustrate sustainability advocates. The directive will now go to the European Parliament for approval.
As the name implies, the CSDDD, also called the CS3D, establishes a corporate due diligence standard on sustainability issues for businesses operating in the EU. In this case, sustainability most directly applies to environmental concerns, climate change, and human rights.
The new due diligence requirements apply not only to the direct actions of the company, but also to their subsidiaries and supply chain. EU based companies, as well as non-EU companies that conduct a set level of business in the EU, could become liable for the actions of their suppliers.
The final draft of the CSDDD, released on January 30, initially appeared poised for easy approval. However, that support quickly eroded following Germany’s indication they will abstain from the vote. France, Italy, and other members followed Germany’s lead, making it became clear that the European Council would be unable to get a majority vote in support.
What followed was 45 days of closed-door negotiations, false starts, and political pressure that was an emotional roller coaster for sustainability advocates. Facing a March 15 deadline, the European Council repeatedly placed the CSDDD on the agenda, only to remove it at the last moment when it became clear support was lacking. Read more Forbes
---------
MEMBER STATES SAVE, BUT SIGNIFICANTLY WEAKEN THE DUE DILIGENCE DIRECTIVE AT LAST MINUTE
Today, the Coreper adopted the agreement on the Corporate Sustainability Due Diligence Directive.
Heidi Hautala, Greens/EFA MEP, Vice-President of the European Parliament and Shadow rapporteur in the Legal Affairs committee, comments:
“Finally, the EU Member States got their act together and reached an agreement on the Corporate Sustainability Due Diligence Directive. The price of the agreement was a significant dilution of the level of ambition of the legislation. The scope of the directive will be limited to companies with over one thousand employees instead of five hundred. High-risks sectors were deleted entirely and the legislation's entry into force will be further delayed.
“The behaviour of the Council and Member States in recent months has been reprehensible and damaging to the credibility of EU decision-making. Instead of respecting the December trilogue agreement, already a balanced compromise, Member States engaged in endless rounds of horse-trading and last-minute attempts to water down the legislation.
“Despite this sabotage by the FDP party in the German government, Italy, France, Finland, and others, the core of the directive remains intact. The UN Guiding Principles on Business and Human Rights will be, for the first time, codified in EU law, and businesses will be obliged to conduct environmental and human rights due diligence in their value chains.
“Beneficiaries of CSDDD will be the millions of people in modern slavery and other victims of corporate negligence and abuse. Responsible companies will also benefit from a level playing field and businesses will finally get more engaged in the fight against climate change.”
More:
The Council will formally adopt the agreement, after which it will be voted in the Legal Affairs Committee of the European Parliament with a final vote in the plenary in April. Green EFA
---------
Corporate sustainability and Due Diligence Directive: the good, the bad, and the ugly
The good: the EU Council finally reached an agreement on the Due Diligence Directive. The directive is a fundamental piece of legislation to tackle forced labour worldwide and ensure EU companies promote social rights and good working conditions worldwide, and will work in tandem with the regulation banning products made with forced labour.
The bad, however, is the scope: the net turnover for a company to be covered was agreed, in December, over €150 million. In February, it was doubled to €300 million. The agreement today dials it up again, to €450million. With the new threshold, only some 5400 companies will be affected: 0.05% of the total.
The ugly: this means the directive is weakened, and millions of workers who would have been protected under the December compromise are left behind now. For countries like Germany, the Directive will cover less companies than their current domestic legislation.
Despite the drawbacks, the directive remains a powerful tool, having a European standard on corporate due diligence means having fair competition based on a common set of rules and from the Workers’ Group we urge member states to swiftly transpose and implement it in letter and spirit. We will continue working with our national organisations to ensure this is the case. EESC Europa
---------
Corporate accountability law: EU countries give free pass to two-thirds of companies
EU Member States today agreed to back a renegotiated Corporate Sustainability Due Diligence Directive that includes major concessions - meaning many big companies will face no repercussions for abusing human rights or damaging the environment.
National governments voted on a deal struck in December, which establishes a comprehensive legal framework for communities anywhere in the world to sue large companies operating in the EU responsible for human rights abuses and linked environmental harms in European courts.
However, after weeks of delay and pushback from countries such as Germany, France and Italy, governments voted through a diluted agreement that will profoundly limit the law’s power.
The number of companies that the law applies to will be cut by almost two thirds – from approximately 16,300 to 5,400 as compared to the deal struck in December. Most of those companies will have roughly five years before these rules apply to them. This is even lower than a deal that was on the table last week, which would have captured approximately 1,400 more companies (6,838 in total). [1]
The deal agreed in December would have included safeguards to prevent human rights abuses and environmental damage by smaller companies in high-risk sectors – such as the mining, construction and garment industries. Yet the deal struck today gives these companies a free pass. [2]
A further weakening of the original deal means that companies will not be responsible for their waste disposal – which has been identified as a major issue in, among others, the fashion industry.
Aurelie Skrobik, corporate accountability campaigner at Global Witness, said Read more Global Witness
---------
Europe's new palm oil rules stir debate over environmental protection and jobs
Europe's ban on deforestation-linked imports puts Malaysia and Indonesia's economic interests at risk.
Patricia Cohen reports for The New York Times.
In short:
The European Union mandates tracing for a wide array of products to combat deforestation, impacting 85% of the world's palm oil supply from Malaysia and Indonesia.
Developing countries view the regulation as an economic threat, with allegations of "regulatory imperialism" from Indonesia's economic minister.
Compliance challenges may disproportionately affect smallholders, further exacerbating environmental damage and poverty.
Key quote:
"We're not questioning the need to fight deforestation. But it's not fair when countries that have deforested their own land for centuries, or are responsible for much of our deforestation, can unilaterally impose conditions on us."
— Nik Nazmi Nik Ahmad, Malaysia’s environment minister
Why this matters: Read more Environmental Health News
---------
Debunking Myths and Recognizing Benefits of Palm Oil
Its palm oil, a basic ingredient in almost 70% of personal care stuff like soap, shampoo, makeup, and lotion. This oil is everywhere – in margarine, ice cream, chocolate, detergent, instant noodles, biodiesel, cosmetics, and cooking oil.
People have been using palm oil in food for a long time, but recently, its getting more attention for being good for health. In India, where more than 1.3 billion people live, palm oil is not just for cooking – its in lots of different foods and products. India is the biggest buyer of palm oil globally, getting more than 20% of the worlds supply.
Palm oil has been a subject of ongoing debate and discourse, marked by numerous myths and misconceptions regarding its production and utilisation.
Myth: Health Concerns with Palm Oil
Theres a misconception that palm oil is unhealthy due to its high saturated fat content.
This belief is challenged by the examples of coconut oil and ghee, both high in saturated fats, yet not considered detrimental to health. The impact of fats on human health is intricate, and recent studies challenging the notion that all saturated fats are unhealthy.
Differentiating between plant-based saturated fats (e.g., coconut and palm oil) and animal-based ones is crucial, as highlighted in a report on ghee. Saturated fats are essential for optimal human health.
Palm oil, with its balanced composition of nutritious fats, including beta-carotene and Vitamin E-tocotrienols, contributes to a healthy diet when used in moderation.
Recognizing the Benefits
Not just good for cooking, palm oil also has important nutrients like Vitamin E and antioxidants that are good for our skin and health conditions such as:
Improving brain function Read more NetworkKNT
---------
Indonesia eyes F&B transactions worth Rp35.7 bln at Mexico expo
Jakarta (ANTARA) - The Indonesian government is targeting to earn Rp35.7 billion (US$2.3 million) from food and beverage (F&B) transactions at Mexico's Asociación Nacional de Tiendas de Autoservicio y Departamentales (ANTAD) Expo 2024.
Indonesian Ambassador to Mexico, Cheppy Triprakoso Wartono, in a statement issued by the Indonesian Trade Ministry in Jakarta on Friday, said that Indonesia's participation in the exhibition, held in Guadalajara, Mexico, from March 12–24, 2024, is a strategic step to further popularize its F&B products among Mexicans.
"Indonesia needs to consistently participate in such events to make its F&B products more popular in Mexican markets. Indonesian delegates should make the most of this opportunity to promote the country's unique and high-quality F&B products," he added.
At the exhibition, the Pavilion Indonesia booth is displaying assorted biscuits, snacks, instant noodles, herbal and traditional health drinks, as well as typical teas and coffees.
The ambassador expressed the hope that the expo would link Indonesian producers with Mexican buyers, importers, distributors, and retailers. Indonesia could use Mexico as a gateway to North American and South American markets, he added.
"Some F&B products from Indonesia have managed to penetrate the network of major retailers in Mexico. That is a feat deserving appreciation. We need to keep pushing," he said.
Meanwhile, head of the Indonesian Trade Promotion Center (ITPC) in Mexico city, Sunny Adrian, informed that his office has been routinely helping Indonesian businesses feature at ANTAD. Read more Antara
---------
India's first oil palm processing unit commences operations in Arunachal Pradesh
In a historic milestone for India's agricultural sector, India's first integrated Oil Palm Processing unit by 3F Oil Palm, one of India's largest Oil Palm development companies, started its commercial operations today. The factory situated at Roing in lower Dibang Valley in Arunachal Pradesh carries forwardMission Palm Oil, representing a pivotal step in India's journey towards self-reliance in edible oils, catalyzed by the National Mission on Edible Oils - Oil Palm (NMEO-OP).
This integrated Oil Palm project will include a cutting-edge oil palm factory (Palm Oil Processing and Refinery), a zero-discharge effluent plant, a palm waste-based power plant, and additional structures and go-downs for support purposes. This factory marks the first Oil Palm factory in Arunachal Pradesh and India's first Oil Palm Factory under NMEO-OP.
The inauguration of the 3F Oil Palm Processing Unit in Arunachal Pradesh was virtually carried out by Prime Minister Narendra Modi on 9th March 2024. Marking the commencement of a transformative journey. Hon'ble Prime Minister laid the foundation stone for various other projects worth over Rs 55,000 Crore, reinforcing the government's commitment to the development of the Northeast.
Speaking about this inauguration at the Viksit Bharat - Viksit Northeast event in Arunachal Pradesh, Prime Minister Narendra Modi highlighted the government's focus on Mission Palm Oil, with a special focus on Northeast, to not only achieve Atmanirbharta but also to empower farmers and boost farmer income. He thanked Northeast farmers for their enthusiastic participation and dedication to palm cultivation following the launch of the Palm Mission, which holds a promise for a brighter future. Read more India Today NE
|
|
|
Mar 15, 2024
Can Europe Save Forests Without Killing Jobs in Malaysia?
A new regulation aims to rid the palm oil supply chain of imports that come from former forestland. Southeast Asian countries say it threatens livelihoods.
The European Union’s upcoming ban on imports linked to deforestation has been hailed as a “gold standard” in climate policy: a meaningful step to protect the world’s forests, which help remove planet-killing greenhouse gases from the atmosphere.
The law requires traders to trace the origins of a head-spinning variety of products — beef and books, chocolate and charcoal, lipstick and leather. To the European Union, the mandate, set to take effect next year, is a testament to the bloc’s role as a global leader on climate change.
The policy, though, has gotten caught in fierce crosscurrents about how to navigate the economic and political trade-offs demanded by climate change in a world where power is shifting and international institutions are fracturing.
Developing countries have expressed outrage — with Malaysia and Indonesia among the most vocal. Together, the two nations supply 85 percent of the world’s palm oil, one of seven critical commodities covered by the European Union’s ban. And they maintain that the law puts their economies at risk. Read more New York Times
---------
EU’s Forest Rules Start to Reshape Palm Oil Trade, Report Shows
The European Union is introducing rules to stop products that destroy forests from being sold in shops and supermarkets. The largest companies have until the end of the year to comply with the regulation, which covers commodities from palm oil to cocoa and coffee.
But suppliers of palm oil have already started to divert the commodity that can’t be fully traced to regions outside the EU, according to 3Keel. If the diversion becomes a long-term trend, it will cause suppliers to de-prioritize their traceability efforts, the Oxford, England-based company said in a report Thursday.
“The segregated supply chain could also cause knock-on price increases for goods supplied to the EU, if the cost of having to separate out compliant volumes is passed on to the customer,” report co-author Sian Allen said.
Critics say the new rules especially punish smaller farmers. Those types of farmers are most likely to be disadvantaged and left out of EU supply chains, given the challenges in tracing palm back to individual plantations, 3Keel said. That includes farmers that apply responsible growing practices.
The report, prepared by 3Keel for the Palm Oil Transparency Coalition, is based on a survey and follow-up conversations with 20 globally significant palm-oil importers and traders. Read more BNN Bloomberg
---------
Second-generation biofuels: Riding the decarbonization wave into 2030
The biofuel movement has gone global. The drive to limit carbon emissions in the environment by 2030 has urged governments and companies to hasten the deployment of sustainable biofuels, while regulatory policies and tax incentives worldwide on biofuel usage are accelerating market demand.
The food-versus-fuel debate has pinned a lot of hope on second-generation or advanced biofuels, which are produced from residual and waste products such as used cooking oil and palm fatty acid distillate.
Riding on the second-generation biofuel wave, waste-based feedstocks have become attractive to both biofuel and renewable diesel producers. SP Global
---------
India’s new palm oil plan: Self-sufficiency in edible oils
Under the NMEO-OP, the government aims to promote the cultivation of oil palm in 8.4 lakh hectares of cultivable land in the Northeast
The government is determined to promote oil palm cultivation in new regions and provide comprehensive support to farmers. The government's new plan to save Rs 5,870 cr on edible oil production by promoting its cultivation in the Northeast has been unveiled by Prime Minister Narendra Modi during his visit to Arunachal Pradesh.
Under the Mission Palm Oil - Oil Palm (NMEO-OP), the government aims to promote the cultivation of oil palm in 8.4 lakh hectares of cultivable land in the Northeast, including Arunachal Pradesh, Assam, Manipur, Mizoram, Nagaland, and Tripura. The target is to produce 11.20 lakh tonnes of oil by 2025-26.
To promote the cultivation of oil palm, the government will provide assistance of Rs 1,00,000 per hectare to farmers for planting material, and management, and to address the topographical challenges faced by the farmers of the Northeast.
The government will also provide Rs 2,90,000 for the purchase of harvesting tools to farmers. The government will also pay a differential of 2 percent on the CPO prices to farmers considering the challenging terrain of the Northeast.
Under the NMEO-OP, the government has also proposed to set up 10 new oil mills in the Northeast to promote the post-harvest processing of oil. The government has also provided an incentive of Rs 5 crore for the development of private oil processing facilities in the region. East Mojo
Can Europe Save Forests Without Killing Jobs in Malaysia?
A new regulation aims to rid the palm oil supply chain of imports that come from former forestland. Southeast Asian countries say it threatens livelihoods.
The European Union’s upcoming ban on imports linked to deforestation has been hailed as a “gold standard” in climate policy: a meaningful step to protect the world’s forests, which help remove planet-killing greenhouse gases from the atmosphere.
The law requires traders to trace the origins of a head-spinning variety of products — beef and books, chocolate and charcoal, lipstick and leather. To the European Union, the mandate, set to take effect next year, is a testament to the bloc’s role as a global leader on climate change.
The policy, though, has gotten caught in fierce crosscurrents about how to navigate the economic and political trade-offs demanded by climate change in a world where power is shifting and international institutions are fracturing.
Developing countries have expressed outrage — with Malaysia and Indonesia among the most vocal. Together, the two nations supply 85 percent of the world’s palm oil, one of seven critical commodities covered by the European Union’s ban. And they maintain that the law puts their economies at risk. Read more New York Times
---------
EU’s Forest Rules Start to Reshape Palm Oil Trade, Report Shows
- Farmers ship hard-to-verify commodity outside the EU: 3Keel
- The diversions risk stalling progress on curbing deforestation
The European Union is introducing rules to stop products that destroy forests from being sold in shops and supermarkets. The largest companies have until the end of the year to comply with the regulation, which covers commodities from palm oil to cocoa and coffee.
But suppliers of palm oil have already started to divert the commodity that can’t be fully traced to regions outside the EU, according to 3Keel. If the diversion becomes a long-term trend, it will cause suppliers to de-prioritize their traceability efforts, the Oxford, England-based company said in a report Thursday.
“The segregated supply chain could also cause knock-on price increases for goods supplied to the EU, if the cost of having to separate out compliant volumes is passed on to the customer,” report co-author Sian Allen said.
Critics say the new rules especially punish smaller farmers. Those types of farmers are most likely to be disadvantaged and left out of EU supply chains, given the challenges in tracing palm back to individual plantations, 3Keel said. That includes farmers that apply responsible growing practices.
The report, prepared by 3Keel for the Palm Oil Transparency Coalition, is based on a survey and follow-up conversations with 20 globally significant palm-oil importers and traders. Read more BNN Bloomberg
---------
Second-generation biofuels: Riding the decarbonization wave into 2030
The biofuel movement has gone global. The drive to limit carbon emissions in the environment by 2030 has urged governments and companies to hasten the deployment of sustainable biofuels, while regulatory policies and tax incentives worldwide on biofuel usage are accelerating market demand.
The food-versus-fuel debate has pinned a lot of hope on second-generation or advanced biofuels, which are produced from residual and waste products such as used cooking oil and palm fatty acid distillate.
Riding on the second-generation biofuel wave, waste-based feedstocks have become attractive to both biofuel and renewable diesel producers. SP Global
---------
India’s new palm oil plan: Self-sufficiency in edible oils
Under the NMEO-OP, the government aims to promote the cultivation of oil palm in 8.4 lakh hectares of cultivable land in the Northeast
The government is determined to promote oil palm cultivation in new regions and provide comprehensive support to farmers. The government's new plan to save Rs 5,870 cr on edible oil production by promoting its cultivation in the Northeast has been unveiled by Prime Minister Narendra Modi during his visit to Arunachal Pradesh.
Under the Mission Palm Oil - Oil Palm (NMEO-OP), the government aims to promote the cultivation of oil palm in 8.4 lakh hectares of cultivable land in the Northeast, including Arunachal Pradesh, Assam, Manipur, Mizoram, Nagaland, and Tripura. The target is to produce 11.20 lakh tonnes of oil by 2025-26.
To promote the cultivation of oil palm, the government will provide assistance of Rs 1,00,000 per hectare to farmers for planting material, and management, and to address the topographical challenges faced by the farmers of the Northeast.
The government will also provide Rs 2,90,000 for the purchase of harvesting tools to farmers. The government will also pay a differential of 2 percent on the CPO prices to farmers considering the challenging terrain of the Northeast.
Under the NMEO-OP, the government has also proposed to set up 10 new oil mills in the Northeast to promote the post-harvest processing of oil. The government has also provided an incentive of Rs 5 crore for the development of private oil processing facilities in the region. East Mojo
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|
|
Mar 14, 2024
EU attempts to smooth South American complaints over deforestation policy
BRUSSELS (Reuters) – The European Union’s environment policy chief will tour South America this week in an attempt to alleviate fierce criticism from the region over a landmark EU law that will ban imports of goods linked to the destruction of forests.
From the end of December, the EU will require importers of soy, beef, coffee, palm oil and other commodities to provide proof their supply chain does not cause deforestation.
Deforestation fuels climate change and is the largest source of greenhouse gas emissions in Amazonian countries. Forests help curb global warming because their trees absorb huge amounts of carbon dioxide.
Countries including Brazil and Malaysia have criticised the EU law, which they say imposes trade barriers and extra costs on their economies, and is protectionist.
“It will bring changes compared to the way we traded in the past. My intention is to respond, to calm, any fears about the possible consequences,” EU Environment Commissioner Virginijus Sinkevicius told reporters on Wednesday.
“We see it as a turning point in the global fight against deforestation,” he added.
Paraguay, Bolivia and Ecuador, which Sinkevicius will visit this week, were among the countries to sign a statement at the World Trade Organisation last month criticising trade-altering green policies.
That statement urged countries “to refrain from imposing of unilateral trade-related environmental measures that create unnecessary obstacles to trade or arbitrary or unjustifiable discrimination between countries”. Read more Reuters
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Palm oil deserves fair treatment. Malaysian PM Anwar tells Germany
BERLIN, March 13 (Bernama) -- Malaysia, the world’s second-biggest palm oil producer, has urged Germany to adopt a more inclusive and fair approach regarding palm oil exports to Europe.
Prime Minister Datuk Seri Anwar Ibrahim has expressed Malaysia's concern that European Union (EU) policies on climate change, including its Deforestation Regulation, may serve as a form of non-tariff trade measure.
The concern was raised during Anwar's meeting with Germany's Vice-Chancellor and Minister for Economic Affairs and Climate Action, Robert Habeck. The meeting took place at the Berlin Station here before Anwar delivered his keynote address at the annual SME Future Day 2024 (Mittelstand).
Anwar was accompanied by Foreign Minister Datuk Seri Mohamad Hasan, Minister of Investment, Trade and Industry Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz and Minister of Entrepreneur and Cooperatives Development Datuk Ewon Benedick.
Both leaders hope for a positive outcome
On the Malaysia-EU Free Trade Agreement (FTA), both leaders also hoped for a positive outcome of the “scoping exercise” between the technical experts of both sides and for them to start discussions.
FTA negotiations were launched in 2010 and put on hold after seven rounds in 2012. Read more Bernama
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EU deforestation regulation seen to complicate RI biodiesel exports
he European Union’s deforestation regulation (EUDR) will make it harder for Indonesian biodiesel to enter the EU market, as well as that of other countries, experts believe. Biodiesel output in Indonesia, the world’s third-largest producer, rose 11.3 percent to 13.15 million kiloliters (kl) in 2023, according to data from the Indonesian Biodiesel Producers Association (APROBI). Exports, however, plummeted almost 50 percent to just 187,810 kl in 2023 from 371,000 kl in the preceding year. In January of this year, biodiesel exports sank about 73 percent month-to-month (mtm) to just 5,746 kl. APROBI secretary-general Ernest Gunawan expected the regulation, once enforced, to further reduce biodiesel exports, though he declined to provide an estimate of the impact.
“We will continue to collaborate with the government [...] to address the EUDR problem. Apart from that, we will focus on the domestic distribution of fatty acid methyl ester [FAME],” he told The Jakarta Post on Wednesday.
This article was published in thejakartapost.com with the title "". Click to read: https://www.thejakartapost.com/business/2024/03/14/eu-deforestation-regulation-seen-to-complicate-ri-biodiesel-exports.html.
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Nigeria-FG Tasks Oil Palm Stakeholders On Expansion Agenda
The Federal Ministry Of Industry Trade & Investment has challenged Oil Palm Stakeholders to take advantage of technology and innovations as part of measures to optimise yields, reduce waste and boost growth in the industry.
Speaking at an interactive meeting with stakeholders in Benin City, Edo State, the Permanent Secretary, Nuru Abba Rimi urged stakeholders to adopt sustainable best agricultural methods, invest in conservation efforts and ensure that operations are in harmony with the delicate eco system surrounding plantations.
Represented by the Chief Commercial Officer, Gambo Garba Magaji, he advised stakeholders to recognise that challenges lie ahead and collectively work towards a vision that “ensure the continued success of our oil Palm Industry “.
The meeting scheduled for six states and put together by the commodities And Export Department of the Federal Ministry of Trade & Investment in collaboration with National Palm Produce Association of Nigeria form part of on-the-spot assessment of the Oil Palm Industry.
The states are Cross River, Akwa Ibom, Abia, Imo, Edo and Ondo States.
Explaining further, Rimi said: “We must recognised the importance of collaboration and knowledge sharing. By fostering partnership with research institutions, industry experts and international organisation, we can tap into a wealth of expertise and stay at the forefront of advancement in Oil Palm cultivation.“ Read more This Day Live
EU attempts to smooth South American complaints over deforestation policy
BRUSSELS (Reuters) – The European Union’s environment policy chief will tour South America this week in an attempt to alleviate fierce criticism from the region over a landmark EU law that will ban imports of goods linked to the destruction of forests.
From the end of December, the EU will require importers of soy, beef, coffee, palm oil and other commodities to provide proof their supply chain does not cause deforestation.
Deforestation fuels climate change and is the largest source of greenhouse gas emissions in Amazonian countries. Forests help curb global warming because their trees absorb huge amounts of carbon dioxide.
Countries including Brazil and Malaysia have criticised the EU law, which they say imposes trade barriers and extra costs on their economies, and is protectionist.
“It will bring changes compared to the way we traded in the past. My intention is to respond, to calm, any fears about the possible consequences,” EU Environment Commissioner Virginijus Sinkevicius told reporters on Wednesday.
“We see it as a turning point in the global fight against deforestation,” he added.
Paraguay, Bolivia and Ecuador, which Sinkevicius will visit this week, were among the countries to sign a statement at the World Trade Organisation last month criticising trade-altering green policies.
That statement urged countries “to refrain from imposing of unilateral trade-related environmental measures that create unnecessary obstacles to trade or arbitrary or unjustifiable discrimination between countries”. Read more Reuters
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Palm oil deserves fair treatment. Malaysian PM Anwar tells Germany
BERLIN, March 13 (Bernama) -- Malaysia, the world’s second-biggest palm oil producer, has urged Germany to adopt a more inclusive and fair approach regarding palm oil exports to Europe.
Prime Minister Datuk Seri Anwar Ibrahim has expressed Malaysia's concern that European Union (EU) policies on climate change, including its Deforestation Regulation, may serve as a form of non-tariff trade measure.
The concern was raised during Anwar's meeting with Germany's Vice-Chancellor and Minister for Economic Affairs and Climate Action, Robert Habeck. The meeting took place at the Berlin Station here before Anwar delivered his keynote address at the annual SME Future Day 2024 (Mittelstand).
Anwar was accompanied by Foreign Minister Datuk Seri Mohamad Hasan, Minister of Investment, Trade and Industry Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz and Minister of Entrepreneur and Cooperatives Development Datuk Ewon Benedick.
Both leaders hope for a positive outcome
On the Malaysia-EU Free Trade Agreement (FTA), both leaders also hoped for a positive outcome of the “scoping exercise” between the technical experts of both sides and for them to start discussions.
FTA negotiations were launched in 2010 and put on hold after seven rounds in 2012. Read more Bernama
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EU deforestation regulation seen to complicate RI biodiesel exports
he European Union’s deforestation regulation (EUDR) will make it harder for Indonesian biodiesel to enter the EU market, as well as that of other countries, experts believe. Biodiesel output in Indonesia, the world’s third-largest producer, rose 11.3 percent to 13.15 million kiloliters (kl) in 2023, according to data from the Indonesian Biodiesel Producers Association (APROBI). Exports, however, plummeted almost 50 percent to just 187,810 kl in 2023 from 371,000 kl in the preceding year. In January of this year, biodiesel exports sank about 73 percent month-to-month (mtm) to just 5,746 kl. APROBI secretary-general Ernest Gunawan expected the regulation, once enforced, to further reduce biodiesel exports, though he declined to provide an estimate of the impact.
“We will continue to collaborate with the government [...] to address the EUDR problem. Apart from that, we will focus on the domestic distribution of fatty acid methyl ester [FAME],” he told The Jakarta Post on Wednesday.
This article was published in thejakartapost.com with the title "". Click to read: https://www.thejakartapost.com/business/2024/03/14/eu-deforestation-regulation-seen-to-complicate-ri-biodiesel-exports.html.
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Nigeria-FG Tasks Oil Palm Stakeholders On Expansion Agenda
The Federal Ministry Of Industry Trade & Investment has challenged Oil Palm Stakeholders to take advantage of technology and innovations as part of measures to optimise yields, reduce waste and boost growth in the industry.
Speaking at an interactive meeting with stakeholders in Benin City, Edo State, the Permanent Secretary, Nuru Abba Rimi urged stakeholders to adopt sustainable best agricultural methods, invest in conservation efforts and ensure that operations are in harmony with the delicate eco system surrounding plantations.
Represented by the Chief Commercial Officer, Gambo Garba Magaji, he advised stakeholders to recognise that challenges lie ahead and collectively work towards a vision that “ensure the continued success of our oil Palm Industry “.
The meeting scheduled for six states and put together by the commodities And Export Department of the Federal Ministry of Trade & Investment in collaboration with National Palm Produce Association of Nigeria form part of on-the-spot assessment of the Oil Palm Industry.
The states are Cross River, Akwa Ibom, Abia, Imo, Edo and Ondo States.
Explaining further, Rimi said: “We must recognised the importance of collaboration and knowledge sharing. By fostering partnership with research institutions, industry experts and international organisation, we can tap into a wealth of expertise and stay at the forefront of advancement in Oil Palm cultivation.“ Read more This Day Live
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Mar 13, 2024
With elections in June, EU plans to delay rules on imports from deforested areas and freeze the Green Deal
Following serious and combined complaints from Latin American, Asian and African countries, the European Union is prepared to delay the rules on exports from deforestation areas, it was reported in Brussels.
Rules to be applied beginning December classifying countries into low, standard and high risk import areas are to be delayed to give potentially affected countries more time to adapt to the anti deforestation regulations approved by the EU parliament.
“The rules can be burdensome, unfair and scare off investors,” argued EU trade partners. While Brussels EU officials admitted, “we will simply not classify which means everywhere will be medium risk — we need more time to get the system in place,” adding that ”we have had a lot of complaints from partners. Basically the delay means no country will have an advantage over another.”
The law, part of the EU’s flagship Green Deal, was passed last year and aims to reduce EU consumers’ role in cutting down woodland by barring imports including coffee, cocoa, palm oil, rubber, beef that have been grown in deforested areas from being sold in the bloc.
The regulation prompted fury and rejection from several developing nations that accused the EU of forcing its green standards on to others. Major palm oil producing countries including Indonesia and Malaysia raised “multiple concerns” over the rules in a letter to the European Commission in September.
“The legislation disregards local circumstances and capabilities, national legislation and certification mechanisms of developing producer countries, [as well as] their efforts to fight deforestation and multilateral commitments, including the principle of common but differentiated responsibilities,” it said. Read more Merco Press
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Anti-deforestation delays: EU backtracks on stricter import rules amid international backlash
12 Mar 2024 --- The EU plans to dilute its incoming deforestation regulation (EUDR) by temporarily designating all export countries with the same standard risk classification. The change comes after governments in Asia, Latin America and Africa complained about a need for clearer guidance on compliance, but experts warn implementation delays could cause more confusion.
The EUDR will come into force in December 2024 and require businesses to provide a “due diligence” statement supported by geolocation data to confirm their products have not come from deforested land. The regulation impacts various supply chains, including soybeans, cocoa, coffee, palm oil and beef, and will be reviewed in June 2028.
EU officials want to give countries and companies more time to comply with the new rules by postponing the traffic light system, which would have seen countries classified as “high,” “medium,” or “low” risk based on their anti-deforestation performance.
“The delay gives countries and companies more time to ensure their systems can be created to meet EUDR requirements, which is especially important for vulnerable communities,” Vasco van Roosmalen, CEO and co-founder at carbon solutions provider ReSeed, tells Food Ingredients First.
“But, implementation postponement creates uncertainty and can delay much-needed investments in the necessary systems.”
Reports have also surfaced that the EU could eventually designate risk classifications based on regional rather than national deforestation statuses, which van Roosmalen says could provide more positive outcomes.
“Considering the variability in deforestation pressures in different regions, this is the correct approach when applied using strict scientific criteria. For example, in Brazil, deforestation has been decreasing in the Amazon, but in other regions or biomes, deforestation has increased significantly,” he points out. Read more Food Ingredients First
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Africa: West Africa Not Producing Enough Palm Oil to Meet Its Needs - Ecowas Official
ECOWAS Commission's Director of Customs, Union and Taxation, Salifou Tiemtore, has lamented that West African countries are not producing enough palm oil to meet members' needs.
He disclosed this while speaking to journalists on the sideline of the meeting on the free movement of palm oil under the ECOWAS preferential tariff regime - ECOWAS Trade Liberalization Scheme (ETLS), in Abuja on Tuesday.
Tiemtore said: "Let me tell you the truth, till now, with the statistics we have, we still need to import palm oil. What we are producing is not enough for our own consumption.
"If you take a country like Nigeria, it has the capacity to double its production in terms of palm oil but we need to put in place some incentives so that through ECOWAS ETLS Nigeria can cover the Nigerian market and also go beyond the Nigerian market."
He said the region has the potential to meet the needs of member states if support were given to entrepreneurs to expand production and take advantage of the ECOWAS ETLS.
Mrs Massandje Toure-Litse, ECOWAS Commission's Commissioner for Economic Affairs and Agriculture, said one of the challenges in palm oil trading in the region was taxation, adding that ECOWAS ETLS had eradicated tariffs in business transactions within the region.
She said: "Some products will go to some countries and the countries will ask them to pay tariffs when we know that under ECOWAS law, goods produced in our region should be free of tax.
"We have invited all the countries to come and have a discussion to solve the issues in the commercialisation of palm oil in the region. The countries invited are Ivory Coast, Togo, Benin, Nigeria, Ghana and Liberia."
In his address of welcome, the Head of the ECOWAS National Unit at the Ministry of Foreign Affairs, Ambassador Yakubu Dadu, said despite the remarkable success of the ETLS, "we find ourselves facing challenges within the pivotal palm oil sector. Read more All Africa
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Nigeria Loses N94 Billion Annually to Palm Oil Importation, Says OAU ProfessorProf. Kehinde Owolarafe of the Department of Agriculture and Environmental Engineering, Obafemi Awolowo University (OAU), Ile-Ife, on Tuesday, said that Nigeria loses N94 billion annually to palm oil importation.
Owolarafe said this at a one day sensitisation workshop for oil palm producers, processors, distributors, marketers, retailers and users, on Tuesday in Osogbo.
The News Agency of Nigeria (NAN) reports that the workshop was organised by the Standards Organisation of Nigeria (SON), with the theme ” Promoting Palm Oil Value Chain Via Standardisation.
According to the don, between 1920 and 1960, Nigeria was the leading producer and exporter of palm oil in the world.
“But sadly, Indonesia and Malaysia now lead in the production of palm oil in the whole world. Read more Prompt News
With elections in June, EU plans to delay rules on imports from deforested areas and freeze the Green Deal
Following serious and combined complaints from Latin American, Asian and African countries, the European Union is prepared to delay the rules on exports from deforestation areas, it was reported in Brussels.
Rules to be applied beginning December classifying countries into low, standard and high risk import areas are to be delayed to give potentially affected countries more time to adapt to the anti deforestation regulations approved by the EU parliament.
“The rules can be burdensome, unfair and scare off investors,” argued EU trade partners. While Brussels EU officials admitted, “we will simply not classify which means everywhere will be medium risk — we need more time to get the system in place,” adding that ”we have had a lot of complaints from partners. Basically the delay means no country will have an advantage over another.”
The law, part of the EU’s flagship Green Deal, was passed last year and aims to reduce EU consumers’ role in cutting down woodland by barring imports including coffee, cocoa, palm oil, rubber, beef that have been grown in deforested areas from being sold in the bloc.
The regulation prompted fury and rejection from several developing nations that accused the EU of forcing its green standards on to others. Major palm oil producing countries including Indonesia and Malaysia raised “multiple concerns” over the rules in a letter to the European Commission in September.
“The legislation disregards local circumstances and capabilities, national legislation and certification mechanisms of developing producer countries, [as well as] their efforts to fight deforestation and multilateral commitments, including the principle of common but differentiated responsibilities,” it said. Read more Merco Press
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Anti-deforestation delays: EU backtracks on stricter import rules amid international backlash
12 Mar 2024 --- The EU plans to dilute its incoming deforestation regulation (EUDR) by temporarily designating all export countries with the same standard risk classification. The change comes after governments in Asia, Latin America and Africa complained about a need for clearer guidance on compliance, but experts warn implementation delays could cause more confusion.
The EUDR will come into force in December 2024 and require businesses to provide a “due diligence” statement supported by geolocation data to confirm their products have not come from deforested land. The regulation impacts various supply chains, including soybeans, cocoa, coffee, palm oil and beef, and will be reviewed in June 2028.
EU officials want to give countries and companies more time to comply with the new rules by postponing the traffic light system, which would have seen countries classified as “high,” “medium,” or “low” risk based on their anti-deforestation performance.
“The delay gives countries and companies more time to ensure their systems can be created to meet EUDR requirements, which is especially important for vulnerable communities,” Vasco van Roosmalen, CEO and co-founder at carbon solutions provider ReSeed, tells Food Ingredients First.
“But, implementation postponement creates uncertainty and can delay much-needed investments in the necessary systems.”
Reports have also surfaced that the EU could eventually designate risk classifications based on regional rather than national deforestation statuses, which van Roosmalen says could provide more positive outcomes.
“Considering the variability in deforestation pressures in different regions, this is the correct approach when applied using strict scientific criteria. For example, in Brazil, deforestation has been decreasing in the Amazon, but in other regions or biomes, deforestation has increased significantly,” he points out. Read more Food Ingredients First
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Africa: West Africa Not Producing Enough Palm Oil to Meet Its Needs - Ecowas Official
ECOWAS Commission's Director of Customs, Union and Taxation, Salifou Tiemtore, has lamented that West African countries are not producing enough palm oil to meet members' needs.
He disclosed this while speaking to journalists on the sideline of the meeting on the free movement of palm oil under the ECOWAS preferential tariff regime - ECOWAS Trade Liberalization Scheme (ETLS), in Abuja on Tuesday.
Tiemtore said: "Let me tell you the truth, till now, with the statistics we have, we still need to import palm oil. What we are producing is not enough for our own consumption.
"If you take a country like Nigeria, it has the capacity to double its production in terms of palm oil but we need to put in place some incentives so that through ECOWAS ETLS Nigeria can cover the Nigerian market and also go beyond the Nigerian market."
He said the region has the potential to meet the needs of member states if support were given to entrepreneurs to expand production and take advantage of the ECOWAS ETLS.
Mrs Massandje Toure-Litse, ECOWAS Commission's Commissioner for Economic Affairs and Agriculture, said one of the challenges in palm oil trading in the region was taxation, adding that ECOWAS ETLS had eradicated tariffs in business transactions within the region.
She said: "Some products will go to some countries and the countries will ask them to pay tariffs when we know that under ECOWAS law, goods produced in our region should be free of tax.
"We have invited all the countries to come and have a discussion to solve the issues in the commercialisation of palm oil in the region. The countries invited are Ivory Coast, Togo, Benin, Nigeria, Ghana and Liberia."
In his address of welcome, the Head of the ECOWAS National Unit at the Ministry of Foreign Affairs, Ambassador Yakubu Dadu, said despite the remarkable success of the ETLS, "we find ourselves facing challenges within the pivotal palm oil sector. Read more All Africa
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Nigeria Loses N94 Billion Annually to Palm Oil Importation, Says OAU ProfessorProf. Kehinde Owolarafe of the Department of Agriculture and Environmental Engineering, Obafemi Awolowo University (OAU), Ile-Ife, on Tuesday, said that Nigeria loses N94 billion annually to palm oil importation.
Owolarafe said this at a one day sensitisation workshop for oil palm producers, processors, distributors, marketers, retailers and users, on Tuesday in Osogbo.
The News Agency of Nigeria (NAN) reports that the workshop was organised by the Standards Organisation of Nigeria (SON), with the theme ” Promoting Palm Oil Value Chain Via Standardisation.
According to the don, between 1920 and 1960, Nigeria was the leading producer and exporter of palm oil in the world.
“But sadly, Indonesia and Malaysia now lead in the production of palm oil in the whole world. Read more Prompt News
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Mar 12, 2024
Sustainability and smallholder concerns: Palm oil producing nations question EU’s deforestation ‘workstream model’
12-Mar-2024 By Pearly Neo
Significant doubts remain as to whether the EU’s new deforestation workstream model will be sufficient to allay fears raised by palm oil producing nations, especially in relation to sustainability and smallholder farmers. Read more Food Navigator Asia
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EU mulls exemption for aviation biofuel feedstocks
The European commission is pushing to extend the 'advanced' technology definition for biofuel feedstocks from intermediate and cover crops — used to cover the soil between crops. But European waste-based and advanced biofuels association (Ewaba) deplores the proposed change only applying to the aviation sector.
Under a new text circulating among member state experts, feedstock from intermediate and cover crops used in other sectors — such as maritime or road — would fall under the existing 1.7pc cap for transport fuels and electricity from feedstocks defined as a 'mature' under part B of the EU's renewable directive's annex IX.
The text refers to "crops grown on severely degraded land, except food and feed crops" and defines such feedstocks as advanced "where used for the production of biofuel for the aviation sector" and as mature "where not used for the production of biofuel for the aviation sector".
The same differentiation is made for intermediate crops, such as catch crops and cover crops grown in single harvest areas, if their use does not trigger additional land demand and provided the "soil organic matter content is maintained". Cyanobacteria — an algae used to produce some biofuels — would also be advanced. Read more Argus Media
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FGV promotes MSPO logo on Saji cooking oil labels
KUALA LUMPUR: To promote sustainable practices in the palm oil industry, FGV Holdings Bhd has signed a strategic collaboration with Malaysian Sustainable Palm Oil (MSPO) to promote the latter's certification label on its Saji cooking oil products.
The agreement aims to endorse the MSPO label on Saji products while raising awareness about sustainability efforts in the country's palm oil sector.
FGV Holdings Bhd chairman Tan Sri Rastam Mohd Isa said he took pride in collaborating with MSPO and becoming the first company to use the MSPO certification logo on Saji cooking oil labels.
"We are confident that this effort will open up new market opportunities domestically and internationally, including enhancing consumer confidence.
"This initiative aligns with our commitment to ensuring sustainability practices are applied across every aspect of our group's operations to generate value and benefit stakeholders.
"At FGV, we believe that prioritising sustainability will lead to profitability and company growth," he said at the launch of the Saji cooking oil's new label with the MSPO certification logo at AEON BiG in Wangsa Maju, here, on Saturday.
The launch was attended by Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
FGV Holding Bhd group chief sustainability officer Nurul Hasanah Ahamed Hassain Malim said the addition of the MSPO logo on Saji cooking oil packaging will benefit FGV by boosting consumer trust, accessing eco-conscious markets and demonstrating compliance with MSPO standards. Read more New Straits Times
Sustainability and smallholder concerns: Palm oil producing nations question EU’s deforestation ‘workstream model’
12-Mar-2024 By Pearly Neo
Significant doubts remain as to whether the EU’s new deforestation workstream model will be sufficient to allay fears raised by palm oil producing nations, especially in relation to sustainability and smallholder farmers. Read more Food Navigator Asia
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EU mulls exemption for aviation biofuel feedstocks
The European commission is pushing to extend the 'advanced' technology definition for biofuel feedstocks from intermediate and cover crops — used to cover the soil between crops. But European waste-based and advanced biofuels association (Ewaba) deplores the proposed change only applying to the aviation sector.
Under a new text circulating among member state experts, feedstock from intermediate and cover crops used in other sectors — such as maritime or road — would fall under the existing 1.7pc cap for transport fuels and electricity from feedstocks defined as a 'mature' under part B of the EU's renewable directive's annex IX.
The text refers to "crops grown on severely degraded land, except food and feed crops" and defines such feedstocks as advanced "where used for the production of biofuel for the aviation sector" and as mature "where not used for the production of biofuel for the aviation sector".
The same differentiation is made for intermediate crops, such as catch crops and cover crops grown in single harvest areas, if their use does not trigger additional land demand and provided the "soil organic matter content is maintained". Cyanobacteria — an algae used to produce some biofuels — would also be advanced. Read more Argus Media
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FGV promotes MSPO logo on Saji cooking oil labels
KUALA LUMPUR: To promote sustainable practices in the palm oil industry, FGV Holdings Bhd has signed a strategic collaboration with Malaysian Sustainable Palm Oil (MSPO) to promote the latter's certification label on its Saji cooking oil products.
The agreement aims to endorse the MSPO label on Saji products while raising awareness about sustainability efforts in the country's palm oil sector.
FGV Holdings Bhd chairman Tan Sri Rastam Mohd Isa said he took pride in collaborating with MSPO and becoming the first company to use the MSPO certification logo on Saji cooking oil labels.
"We are confident that this effort will open up new market opportunities domestically and internationally, including enhancing consumer confidence.
"This initiative aligns with our commitment to ensuring sustainability practices are applied across every aspect of our group's operations to generate value and benefit stakeholders.
"At FGV, we believe that prioritising sustainability will lead to profitability and company growth," he said at the launch of the Saji cooking oil's new label with the MSPO certification logo at AEON BiG in Wangsa Maju, here, on Saturday.
The launch was attended by Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
FGV Holding Bhd group chief sustainability officer Nurul Hasanah Ahamed Hassain Malim said the addition of the MSPO logo on Saji cooking oil packaging will benefit FGV by boosting consumer trust, accessing eco-conscious markets and demonstrating compliance with MSPO standards. Read more New Straits Times
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Mar 11, 2024
Malaysia's Halal Development Corporation supports incorporation of MSPO compliance, halal cert in palm oil promotion
KUALA LUMPUR: The Halal Development Corporation Bhd (HDC) supports the proposal to incorporate the Malaysian Sustainable Palm Oil (MSPO) Certification compliance alongside halal certification requirements for the marketing of palm oil.
Its chairman, Khairul Azwan Harun said by including MSPO certification in the halal certification process, Malaysia can demonstrate its commitment to both Islamic principles and ethical consumption.
The move will also solidify the country’s position as a global leader in sustainable palm oil production while catering to the growing demand for halal products across various markets.
Khairul Azwan added that countries such as India, China, Japan, South Korea and various European nations such as the Netherlands are increasingly seeking halal-certified palm oil ingredients for a diverse range of products, including food, cosmetics, and pharmaceuticals.
“The synergies between Halal certification and MSPO represent a significant opportunity for the palm oil industry. We believe that by promoting sustainable practices in palm oil production, Malaysia can further enhance its position as a leading supplier of halal products worldwide.
“In our trade promotion efforts overseas, we have observed a substantial demand for halal-certified palm oil byproducts, so we expect to see trading of halal palm oil byproducts and derivatives to grow significantly,” he said in a statement today. Read more Sarawak Tribune
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MalaysianPM Anwar’s visit to Germany will focus on enhancing bilateral and business ties, says envoy
BERLIN, March 10 — Malaysia will be looking at enhancing its bilateral and business ties with Germany, its largest trading partner among European Union members when Prime Minister Datuk Seri Anwar Ibrahim undertakes a six-day visit to the country.
Malaysian Ambassador to Germany, Datin Paduka Adina Kamarudin said Anwar will be holding a bilateral meeting with his German counterpart, Chancellor Olaf Scholz besides paying a courtesy call to President Frank-Walter Steinmeier.
“Prime Minister Anwar is expected to discuss various bilateral and global issues during his meetings with the two German leaders,” she said at a press conference with Malaysian media covering the premier’s visit here.
President Steinmeier made a state visit to Malaysia from February 16 to 19 last year, where he also visited two of Germany’s largest investors in Malaysia — manufacturer of semiconductors Infineon and medical technology specialist B. Braun. Read more Malay Mail
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Dutch call for EU to do more for countries worried about green trade rules
The EU's deforestation law will apply from 2025, and the bloc will begin imposing CO2 charges on imported goods from 2026 under its carbon border levy. Both policies have faced criticism from the likes of India, Indonesia and Brazil.
BRUSSELS, March 8 (Reuters) - The Netherlands has called on the EU to do more to address concerns of countries worried about upcoming new European green trade rules, such as a carbon border tax and a ban on goods linked to deforestation, a paper seen by Reuters on Wednesday.
The EU's deforestation law will apply from 2025, and the bloc will begin imposing CO2 charges on imported goods from 2026 under its carbon border levy. Both policies have faced criticism from the likes of India, Indonesia and Brazil.
The Netherlands, one of more of the EU's more ardent supporters of open trade, said in a paper shared with other EU members this week that the bloc "should listen, strengthen engagement, and show a willingness to accommodate reasonable concerns" of its trade partners.
The paper, seen by Reuters, is designed to influence the new European Commission that will take office as the bloc's executive following a European Parliament election in June. Reuters
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Capitalising on Sabah’s biomass potential
PETALING JAYA: Promoting better biomass management strategies can help Sabah forge a greener future powered by renewable energy, says a climate change expert.
Gary William Theseira said the state government should accelerate the development of energy efficiency and conservation legislation as part of a comprehensive biomass management strategy aimed at maximising the utilisation efficiency of biomass in the state.
Theseira, the director of Climate Governance Malaysia, said biomass could generate electricity through the burning of wood chips, sawdust, and palm oil residues.
Deputy investment, trade and industry minister Liew Chin Tong previously said Sabah has great potential in the development of the downstream palm oil, biomass and biogas industries as the state is the largest palm oil producing territory in Malaysia. Read more FMT
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APKASINDO: Biodiesel Program Will Stop at B50, Here Are Three Reasons
Jakarta, SAWIT INDONESIA – The Indonesian Palm Oil Farmers Association (APKASINDO) welcomes the mandatory 40 percent blended biodiesel (B40) program. However, APKASINDO projects that Indonesia will stop at B50 because there are three obstacles and if there are no efforts to increase crude palm oil (CPO) production in the upstream sector.
General Chairman of DPP APKASINDO Dr. Gulat ME Manurung, MP., C.APO., C.IMA explained that the availability of CPO for B40 is still sufficient. However, when it is increased to B50, all Indonesian CPO products (2023, for example 48 million tons) will be used up for domestic needs such as food, oleochemicals, medical and B50 biodiesel, and that is assuming that the needs of the domestic food sector do not increase.
“If we continue forward from B40 we will stop at B50. Because there will be a deficit of 1.24 million tonnes of CPO if our benchmark is the volume of CPO export destination in 2023 which was 2.04 million tonnes (GAPKI outlook, 2023), so if we use B50 there will be no more CPO exports. And Indonesia's exports will decrease in the future in the form of refining products, biodiesel, palm kernel, because the Indonesian Biodiesel program is in mandatory form, meaning that all palm oil stakeholders must support it. If we don't export, we won't have any foreign exchange. Read more Sawit Indonesia
Malaysia's Halal Development Corporation supports incorporation of MSPO compliance, halal cert in palm oil promotion
KUALA LUMPUR: The Halal Development Corporation Bhd (HDC) supports the proposal to incorporate the Malaysian Sustainable Palm Oil (MSPO) Certification compliance alongside halal certification requirements for the marketing of palm oil.
Its chairman, Khairul Azwan Harun said by including MSPO certification in the halal certification process, Malaysia can demonstrate its commitment to both Islamic principles and ethical consumption.
The move will also solidify the country’s position as a global leader in sustainable palm oil production while catering to the growing demand for halal products across various markets.
Khairul Azwan added that countries such as India, China, Japan, South Korea and various European nations such as the Netherlands are increasingly seeking halal-certified palm oil ingredients for a diverse range of products, including food, cosmetics, and pharmaceuticals.
“The synergies between Halal certification and MSPO represent a significant opportunity for the palm oil industry. We believe that by promoting sustainable practices in palm oil production, Malaysia can further enhance its position as a leading supplier of halal products worldwide.
“In our trade promotion efforts overseas, we have observed a substantial demand for halal-certified palm oil byproducts, so we expect to see trading of halal palm oil byproducts and derivatives to grow significantly,” he said in a statement today. Read more Sarawak Tribune
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MalaysianPM Anwar’s visit to Germany will focus on enhancing bilateral and business ties, says envoy
BERLIN, March 10 — Malaysia will be looking at enhancing its bilateral and business ties with Germany, its largest trading partner among European Union members when Prime Minister Datuk Seri Anwar Ibrahim undertakes a six-day visit to the country.
Malaysian Ambassador to Germany, Datin Paduka Adina Kamarudin said Anwar will be holding a bilateral meeting with his German counterpart, Chancellor Olaf Scholz besides paying a courtesy call to President Frank-Walter Steinmeier.
“Prime Minister Anwar is expected to discuss various bilateral and global issues during his meetings with the two German leaders,” she said at a press conference with Malaysian media covering the premier’s visit here.
President Steinmeier made a state visit to Malaysia from February 16 to 19 last year, where he also visited two of Germany’s largest investors in Malaysia — manufacturer of semiconductors Infineon and medical technology specialist B. Braun. Read more Malay Mail
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Dutch call for EU to do more for countries worried about green trade rules
The EU's deforestation law will apply from 2025, and the bloc will begin imposing CO2 charges on imported goods from 2026 under its carbon border levy. Both policies have faced criticism from the likes of India, Indonesia and Brazil.
BRUSSELS, March 8 (Reuters) - The Netherlands has called on the EU to do more to address concerns of countries worried about upcoming new European green trade rules, such as a carbon border tax and a ban on goods linked to deforestation, a paper seen by Reuters on Wednesday.
The EU's deforestation law will apply from 2025, and the bloc will begin imposing CO2 charges on imported goods from 2026 under its carbon border levy. Both policies have faced criticism from the likes of India, Indonesia and Brazil.
The Netherlands, one of more of the EU's more ardent supporters of open trade, said in a paper shared with other EU members this week that the bloc "should listen, strengthen engagement, and show a willingness to accommodate reasonable concerns" of its trade partners.
The paper, seen by Reuters, is designed to influence the new European Commission that will take office as the bloc's executive following a European Parliament election in June. Reuters
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Capitalising on Sabah’s biomass potential
PETALING JAYA: Promoting better biomass management strategies can help Sabah forge a greener future powered by renewable energy, says a climate change expert.
Gary William Theseira said the state government should accelerate the development of energy efficiency and conservation legislation as part of a comprehensive biomass management strategy aimed at maximising the utilisation efficiency of biomass in the state.
Theseira, the director of Climate Governance Malaysia, said biomass could generate electricity through the burning of wood chips, sawdust, and palm oil residues.
Deputy investment, trade and industry minister Liew Chin Tong previously said Sabah has great potential in the development of the downstream palm oil, biomass and biogas industries as the state is the largest palm oil producing territory in Malaysia. Read more FMT
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APKASINDO: Biodiesel Program Will Stop at B50, Here Are Three Reasons
Jakarta, SAWIT INDONESIA – The Indonesian Palm Oil Farmers Association (APKASINDO) welcomes the mandatory 40 percent blended biodiesel (B40) program. However, APKASINDO projects that Indonesia will stop at B50 because there are three obstacles and if there are no efforts to increase crude palm oil (CPO) production in the upstream sector.
General Chairman of DPP APKASINDO Dr. Gulat ME Manurung, MP., C.APO., C.IMA explained that the availability of CPO for B40 is still sufficient. However, when it is increased to B50, all Indonesian CPO products (2023, for example 48 million tons) will be used up for domestic needs such as food, oleochemicals, medical and B50 biodiesel, and that is assuming that the needs of the domestic food sector do not increase.
“If we continue forward from B40 we will stop at B50. Because there will be a deficit of 1.24 million tonnes of CPO if our benchmark is the volume of CPO export destination in 2023 which was 2.04 million tonnes (GAPKI outlook, 2023), so if we use B50 there will be no more CPO exports. And Indonesia's exports will decrease in the future in the form of refining products, biodiesel, palm kernel, because the Indonesian Biodiesel program is in mandatory form, meaning that all palm oil stakeholders must support it. If we don't export, we won't have any foreign exchange. Read more Sawit Indonesia
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Mar 09, 2024
Golden Agri aims to maintain EU shipments after deforestation law takes force
The law impacts beef, livestock feed
Palm oil producer Golden Agri Resources (GAR) intends to maintain its exports to the European Union at around 800,000 metric tons next year even after the EU's landmark new deforestation regulation takes effect, Reuters reported, citing a company official.
The European Parliament approved a law last April that will ban imports of seven commodities including palm oil, soyoil, and beef if they are linked to destruction of the world's forests.
"We want to continue trading in the EU. It is not the biggest of our export markets but it is an important one - obviously, a premium-paying one. We want to stay in that space," Anita Neville, the firm's chief sustainability and communications officer, said in an interview in Kuala Lumpur this week.
Singapore-based Golden Agri exports 700,000-800,000 tons of crude palm oil and laurics to the EU annually, which represents 10% to 15% of its revenue, she said.
The company believes that it's own-sourced palm oil is compliant with the EU Deforestation Regulation (EUDR), and has traceability tools in place, Neville said.
It is arranging its supply chain, including rerouting trucks and preparing separate vessels to segregate EUDR complaint products from those without proof of land legality, geolocation, and that they are deforestation-free.
"GAR has been working on preparing for EUDR for two years and we feel reasonably confident that we are well placed to comply to EUDR,” she said. Read more The Pig Site
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SPKS Together with Oxfam and the North Konawe Regency Government Push for a Sustainable Palm Oil Action Plan
InfoSAWIT, NORTH KONAWE – The global push for palm oil to be produced sustainably and responsibly is now increasing the awareness of various stakeholders – palm oil producers, palm oil processors or traders, producers, banks and investors, environmental conservation organizations and social or development organizations . This trend is also in line with Indonesia's commitment to achieving the Sustainable Development Goals (TPB), where one of the achievements is ensuring "responsible consumption and production" in accordance with the 12th Sustainable Development Goal/SDGs.
As a major producer of palm oil, Indonesia is expected to improve social standards and environmental sustainability. This is important to ensure that the palm oil value chain is able to contribute to sustainable development, solving the contemporary challenges of palm oil production which still poses the problem of deforestation, and practices that are considered unsustainable along the supply chain which impact the livelihoods of the community, especially small farmers.
For this reason, Oxfam in Indonesia, the TERAS Community, the Palm Oil Farmers Union (SPKS) understand the importance of collaboration between actors/parties to jointly promote sustainable value chains, especially the role of civil society organizations (CSOs) which can be a bridge for public and actor interests. key in the value chain. This is also reflected in SDG Goal 17: “Partnerships for the Goals” which requires multi-stakeholder initiatives to produce significant transformation. Building multi-party cooperation will be very helpful in resolving complex issues in the palm oil industry because of the involvement of various actors. Read more Infosawit
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Johari wants MSPO alongside Halal cert as requirement for marketing palm oil
KUALA LUMPUR: The Plantations and Commodities Ministry will discuss with the Malaysian Islamic Development Department (Jakim) to include Malaysia Sustainable Palm Oil (MSPO) certification alongside Halal certification as a requirement for marketing palm oil.
This, according to its minister, Datuk Seri Johari Abdul Ghani, is due to the fact that Halal is a globally recognised and authoritative certification in Malaysia.
"Through MSPO, it encompasses the environment and where they can find out how the palm oil process goes until it is bottled.
"It also covers the condition of the palm oil plantation, the management of the plantation, the use of very high standards and whatever chemicals are used are safe for the product to be produced."
Hence, Johari said, the MSPO could prove to consumers that the product was not only assuredly clean, but also of high quality and safety.
He said previously, palm oil sold in the country had to be Halal-certified, irrespective of brand, and wanted MSPO to be included in the certification requirements.
"That's why if possible, we want to impose conditions on palm oil products that are marketed in the country to have an MSPO certification before they can be distributed here.
"Ideally, palm oil products sold in all stores and supermarkets in our country must have the MSPO certification," he told reporters after launching Saji's new cooking oil label with the MSPO logo and signing of a strategic collaboration between MSPO and FGV Holdings Bhd.
The MSPO certification is Malaysia's national certification standard and was developed with input from stakeholders in the palm oil industry. Read more New Straits Times
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Ghana committed to eliminating fake oil palm on market
President of the Artisanal Palm Oil Millers and Outgrowers Association of Ghana, Paul Amaning, has in a joint operation with the Oil Palm Development Association of Ghana and the Tree Crop Development Authority, intensified moves to eliminate fake oil on the Ghanaian market.
According to Mr Amaning, the operation forms part of a nationwide exercise initiated to stop the smuggling of unapproved vegetable oil into the country.
He stressed that the need has come for the public to help the Tree Crop Development Authority to eliminate fake oil palm from the market.
The operation extended to Kasoa New Market where shops such as Choice, Aicha, White Lilly and Ami, Kingsam were stormed.
Paul Amaning, the coordinator of the taskforce who led the operations, explained that a government directive since November 2023 mandated all imported vegetable oils to pass through both Tema and Takoradi ports.
Vegetable oils crossing Ghana's land borders were declared illegal.
He expressed concern over the prevalence of smuggling, explaining that it constituted a threat to over 8,000 jobs made up of farmers, millers, producers, and manufacturers.
He emphasised that only four brands – Kings Oil, Frytol, Hayat, and Golden Drop – are legal and approved for consumption in Ghana.
However, during the operation across Kasoa, Mallam Market, and Adabraka in Accra, none of these approved brands were found, indicating a significant influx of smuggled oils in the market.
“I was so surprised not to see one made in Ghana vegetable oil, which tells that the market is flooded with smuggled oil which is very bad. The security agencies and Customs have to sit up. I can tell you frankly that they are not doing their job at all.
“Some of these oils are not meant for consumption, they are for soap production, that is what we want Ghanaians to know,” Paul Amaning told Accra-based Adom TV in an interview. Read more Ghana Web
Golden Agri aims to maintain EU shipments after deforestation law takes force
The law impacts beef, livestock feed
Palm oil producer Golden Agri Resources (GAR) intends to maintain its exports to the European Union at around 800,000 metric tons next year even after the EU's landmark new deforestation regulation takes effect, Reuters reported, citing a company official.
The European Parliament approved a law last April that will ban imports of seven commodities including palm oil, soyoil, and beef if they are linked to destruction of the world's forests.
"We want to continue trading in the EU. It is not the biggest of our export markets but it is an important one - obviously, a premium-paying one. We want to stay in that space," Anita Neville, the firm's chief sustainability and communications officer, said in an interview in Kuala Lumpur this week.
Singapore-based Golden Agri exports 700,000-800,000 tons of crude palm oil and laurics to the EU annually, which represents 10% to 15% of its revenue, she said.
The company believes that it's own-sourced palm oil is compliant with the EU Deforestation Regulation (EUDR), and has traceability tools in place, Neville said.
It is arranging its supply chain, including rerouting trucks and preparing separate vessels to segregate EUDR complaint products from those without proof of land legality, geolocation, and that they are deforestation-free.
"GAR has been working on preparing for EUDR for two years and we feel reasonably confident that we are well placed to comply to EUDR,” she said. Read more The Pig Site
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SPKS Together with Oxfam and the North Konawe Regency Government Push for a Sustainable Palm Oil Action Plan
InfoSAWIT, NORTH KONAWE – The global push for palm oil to be produced sustainably and responsibly is now increasing the awareness of various stakeholders – palm oil producers, palm oil processors or traders, producers, banks and investors, environmental conservation organizations and social or development organizations . This trend is also in line with Indonesia's commitment to achieving the Sustainable Development Goals (TPB), where one of the achievements is ensuring "responsible consumption and production" in accordance with the 12th Sustainable Development Goal/SDGs.
As a major producer of palm oil, Indonesia is expected to improve social standards and environmental sustainability. This is important to ensure that the palm oil value chain is able to contribute to sustainable development, solving the contemporary challenges of palm oil production which still poses the problem of deforestation, and practices that are considered unsustainable along the supply chain which impact the livelihoods of the community, especially small farmers.
For this reason, Oxfam in Indonesia, the TERAS Community, the Palm Oil Farmers Union (SPKS) understand the importance of collaboration between actors/parties to jointly promote sustainable value chains, especially the role of civil society organizations (CSOs) which can be a bridge for public and actor interests. key in the value chain. This is also reflected in SDG Goal 17: “Partnerships for the Goals” which requires multi-stakeholder initiatives to produce significant transformation. Building multi-party cooperation will be very helpful in resolving complex issues in the palm oil industry because of the involvement of various actors. Read more Infosawit
---------
Johari wants MSPO alongside Halal cert as requirement for marketing palm oil
KUALA LUMPUR: The Plantations and Commodities Ministry will discuss with the Malaysian Islamic Development Department (Jakim) to include Malaysia Sustainable Palm Oil (MSPO) certification alongside Halal certification as a requirement for marketing palm oil.
This, according to its minister, Datuk Seri Johari Abdul Ghani, is due to the fact that Halal is a globally recognised and authoritative certification in Malaysia.
"Through MSPO, it encompasses the environment and where they can find out how the palm oil process goes until it is bottled.
"It also covers the condition of the palm oil plantation, the management of the plantation, the use of very high standards and whatever chemicals are used are safe for the product to be produced."
Hence, Johari said, the MSPO could prove to consumers that the product was not only assuredly clean, but also of high quality and safety.
He said previously, palm oil sold in the country had to be Halal-certified, irrespective of brand, and wanted MSPO to be included in the certification requirements.
"That's why if possible, we want to impose conditions on palm oil products that are marketed in the country to have an MSPO certification before they can be distributed here.
"Ideally, palm oil products sold in all stores and supermarkets in our country must have the MSPO certification," he told reporters after launching Saji's new cooking oil label with the MSPO logo and signing of a strategic collaboration between MSPO and FGV Holdings Bhd.
The MSPO certification is Malaysia's national certification standard and was developed with input from stakeholders in the palm oil industry. Read more New Straits Times
----------
Ghana committed to eliminating fake oil palm on market
President of the Artisanal Palm Oil Millers and Outgrowers Association of Ghana, Paul Amaning, has in a joint operation with the Oil Palm Development Association of Ghana and the Tree Crop Development Authority, intensified moves to eliminate fake oil on the Ghanaian market.
According to Mr Amaning, the operation forms part of a nationwide exercise initiated to stop the smuggling of unapproved vegetable oil into the country.
He stressed that the need has come for the public to help the Tree Crop Development Authority to eliminate fake oil palm from the market.
The operation extended to Kasoa New Market where shops such as Choice, Aicha, White Lilly and Ami, Kingsam were stormed.
Paul Amaning, the coordinator of the taskforce who led the operations, explained that a government directive since November 2023 mandated all imported vegetable oils to pass through both Tema and Takoradi ports.
Vegetable oils crossing Ghana's land borders were declared illegal.
He expressed concern over the prevalence of smuggling, explaining that it constituted a threat to over 8,000 jobs made up of farmers, millers, producers, and manufacturers.
He emphasised that only four brands – Kings Oil, Frytol, Hayat, and Golden Drop – are legal and approved for consumption in Ghana.
However, during the operation across Kasoa, Mallam Market, and Adabraka in Accra, none of these approved brands were found, indicating a significant influx of smuggled oils in the market.
“I was so surprised not to see one made in Ghana vegetable oil, which tells that the market is flooded with smuggled oil which is very bad. The security agencies and Customs have to sit up. I can tell you frankly that they are not doing their job at all.
“Some of these oils are not meant for consumption, they are for soap production, that is what we want Ghanaians to know,” Paul Amaning told Accra-based Adom TV in an interview. Read more Ghana Web
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Mar 08, 2024
EU delays stricter rules on imports from deforested areas
Every country to be designated as standard risk to give them more time to adapt to regulation
The EU intends to delay strict policing of imports from areas prone to deforestation after several governments in Asia, Africa and Latin America complained that the rules would be burdensome, unfair and scare off investors.
Brussels will put off classification of countries into low, standard or high risk, which was due to be implemented by December, instead designating every country as standard risk to give them more time to adapt to the anti-deforestation regulation, three EU officials told the Financial Times.
“We will simply not classify which means everywhere will be medium risk — we need more time to get the system in place,” said one official. “We have had a lot of complaints from partners. [The delay] means no country will have an advantage over another.”
The law, part of the EU’s flagship Green Deal, was passed last year and aims to reduce EU consumers’ role in cutting down woodland by barring imports including coffee, cocoa, palm oil and rubber that have been grown in deforested areas from being sold in the bloc.
But the regulation prompted ire from several developing nations that accused the EU of forcing its green standards on to others. Major palm oil producing countries including Indonesia and Malaysia raised “multiple concerns” over the rules in a letter to the European Commission in September.
“The legislation disregards local circumstances and capabilities, national legislation and certification mechanisms of developing producer countries, [as well as] their efforts to fight deforestation and multilateral commitments, including the principle of common but differentiated responsibilities,” it said.
Companies said they could pull out of “high-risk” areas because the burden of proving their products did not come from deforested land was too high, while several have started to favour supply deals with bigger producers that can afford to deploy sophisticated geolocation technology. Read more at FT
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WTO ruling can increase market access for Malaysian palm oil, say experts
KUALA LUMPUR: After years of fighting tooth and nail, Malaysia has made its stand clear by winning the ruling and ensuring palm oil-based biofuel is removed from the European Union's (EU) trade restriction, said industry experts.
The World Trade Organisation's (WTO) decision generally in favour of Malaysia is "huge" given the discrimination against palm oil while other similar products available in the EU market are not subjected to similar restrictions.
This is important in safeguarding biodiesel producers and the economy overall, experts added.
"Malaysia can now market biofuel to the EU in wider capacity without being subjected to any form of discrimination with the prospect for sustainable aviation fuel (SAF) and marine biofuel requirement is growing," an industry expert told Business Times on anonymity condition.
Malaysia will also be able to promote and educate the EU further on palm-based biofuel.
Now with the WTO overseeing things, it will become easier for Malaysia to challenge any unnecessary rules or limits imposed by the EU, making global trade fairer for everyone, said the industry expert.
"Local biofuel producers may safely increase production and market more to the EU, which means we can expect palm-based biofuel consumption to grow gradually," he added. Read more New Straits Times
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WTO rules EU’s delegated act discriminatory against Malaysia
KUALA LUMPUR: Malaysia has won a case against the European Union (EU) over the Delegated Act that discriminates against palm oil biofuels produced in the country, said Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani.
He said the World Trade Organization (WTO) panel, had on March 5, 2024, issued its final report and concluded that the EU’s Delegated Act, which restricted palm oil biofuels, is discriminatory.
"This ruling from WTO demonstrates that Malaysia’s discrimination claims are justified. This vindicates Malaysia’s pursuit of justice for our biodiesel traders, companies and employees,” he said in a statement today.
Johari said the WTO final report finds fault with the EU’s use of indirect land use change (ILUC) to ban palm oil biofuels.
He said it also finds fault with the EU’s approach to notifying and consulting with other economies when introducing new trade measures.
"The EU has agreed to comply with the WTO ruling before it can impose restrictions in accepting Malaysia’s palm oil biofuels,” said Johari.
He noted that the Malaysian government will closely monitor the EU’s changes to its regulations to bring them in line with the WTO’s findings and pursue compliance proceedings if necessary. The StarMY
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EU delays stricter rules on imports from deforested areas
Every country to be designated as standard risk to give them more time to adapt to regulation
The EU intends to delay strict policing of imports from areas prone to deforestation after several governments in Asia, Africa and Latin America complained that the rules would be burdensome, unfair and scare off investors.
Brussels will put off classification of countries into low, standard or high risk, which was due to be implemented by December, instead designating every country as standard risk to give them more time to adapt to the anti-deforestation regulation, three EU officials told the Financial Times.
“We will simply not classify which means everywhere will be medium risk — we need more time to get the system in place,” said one official. “We have had a lot of complaints from partners. [The delay] means no country will have an advantage over another.”
The law, part of the EU’s flagship Green Deal, was passed last year and aims to reduce EU consumers’ role in cutting down woodland by barring imports including coffee, cocoa, palm oil and rubber that have been grown in deforested areas from being sold in the bloc.
But the regulation prompted ire from several developing nations that accused the EU of forcing its green standards on to others. Major palm oil producing countries including Indonesia and Malaysia raised “multiple concerns” over the rules in a letter to the European Commission in September.
“The legislation disregards local circumstances and capabilities, national legislation and certification mechanisms of developing producer countries, [as well as] their efforts to fight deforestation and multilateral commitments, including the principle of common but differentiated responsibilities,” it said.
Companies said they could pull out of “high-risk” areas because the burden of proving their products did not come from deforested land was too high, while several have started to favour supply deals with bigger producers that can afford to deploy sophisticated geolocation technology. Read more at FT
---------
WTO ruling can increase market access for Malaysian palm oil, say experts
KUALA LUMPUR: After years of fighting tooth and nail, Malaysia has made its stand clear by winning the ruling and ensuring palm oil-based biofuel is removed from the European Union's (EU) trade restriction, said industry experts.
The World Trade Organisation's (WTO) decision generally in favour of Malaysia is "huge" given the discrimination against palm oil while other similar products available in the EU market are not subjected to similar restrictions.
This is important in safeguarding biodiesel producers and the economy overall, experts added.
"Malaysia can now market biofuel to the EU in wider capacity without being subjected to any form of discrimination with the prospect for sustainable aviation fuel (SAF) and marine biofuel requirement is growing," an industry expert told Business Times on anonymity condition.
Malaysia will also be able to promote and educate the EU further on palm-based biofuel.
Now with the WTO overseeing things, it will become easier for Malaysia to challenge any unnecessary rules or limits imposed by the EU, making global trade fairer for everyone, said the industry expert.
"Local biofuel producers may safely increase production and market more to the EU, which means we can expect palm-based biofuel consumption to grow gradually," he added. Read more New Straits Times
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WTO rules EU’s delegated act discriminatory against Malaysia
KUALA LUMPUR: Malaysia has won a case against the European Union (EU) over the Delegated Act that discriminates against palm oil biofuels produced in the country, said Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani.
He said the World Trade Organization (WTO) panel, had on March 5, 2024, issued its final report and concluded that the EU’s Delegated Act, which restricted palm oil biofuels, is discriminatory.
"This ruling from WTO demonstrates that Malaysia’s discrimination claims are justified. This vindicates Malaysia’s pursuit of justice for our biodiesel traders, companies and employees,” he said in a statement today.
Johari said the WTO final report finds fault with the EU’s use of indirect land use change (ILUC) to ban palm oil biofuels.
He said it also finds fault with the EU’s approach to notifying and consulting with other economies when introducing new trade measures.
"The EU has agreed to comply with the WTO ruling before it can impose restrictions in accepting Malaysia’s palm oil biofuels,” said Johari.
He noted that the Malaysian government will closely monitor the EU’s changes to its regulations to bring them in line with the WTO’s findings and pursue compliance proceedings if necessary. The StarMY
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Mar 07, 2024
Who Won from WTO decision on Malaysian palm oil vs EU?
The World Trade Organisation's (WTO) rulings are usually clear, but its decision on Tuesday following Malaysia's request to rule on the European Union's (EU) discriminatory regulations against the country's palm oil is an exception.
Moments after the WTO announced its ruling, the media, competing with each other to be the first to break the story, skewed the headlines in favour of the EU.
One read: WTO backs EU in deforestation case against Malaysia. That is not exactly right. For one thing it isn't a deforestation case. What it was is this: it was one rule for EU's rapeseed and sunflower oil and one rule for palm oil.
Malaysia's complaint was about discriminatory regulations and directives. Here, contrary to the media headlines, the WTO backed Malaysia by saying the way the regulations' measures were prepared and administered needed adjustments. The EU has agreed to comply and Malaysia is keeping a watch on the ordered adjustments. Read more New Straits Times
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Malaysia wins key parts in EU dispute over palm oil-based biofuels
KUALA LUMPUR: Malaysia has won key parts of its dispute with the European Union (EU) over the latter's renewable energy directive known as RED II, according to Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
Putrajaya was also successful in challenging several measures maintained by France, the minister told FMT.
Malaysia's initial challenges, Johari said, were against the EU's use of "indirect land-use change" (ILUC) and its requirement of "low ILUC risk" for trade restrictions on palm oil biofuel exports.
Johari said a three-member panel had ruled that several measures undertaken by the EU and France were "inconsistent with World Trade Organisation (WTO) rules".
Particularly, restrictions like the "high ILUC risk cap" and "phase-out" regulations violated trade agreements aimed at preventing unnecessary trade barriers, he told the portal.
The panel also noted that other similar products available in the EU market were not subject to the same restrictions.
"The EU and France must now bring their measures into conformity with their WTO obligations," he said.
Johari said the panel report found that the "high ILUC risk cap" and "phase-out" regulations imposed by the EU violated the WTO's Technical Barriers to Trade (TBT) agreement which was designed to prevent unnecessary obstacles to doing business in the European grouping.
The EU's calculation of ILUC risk and France's implementation of low ILUC risk procedures were found lacking.
He said the panel also ruled that the regulations breached a multilateral agreement on trade in goods, known as the General Agreement on Tariffs and Trade 1994 (GATT 1994). New Straits Times
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WTO asks the EU to adjust RED II in palm oil decision
A World Trade Organisation (WTO) panel said the EU must adjust the Renewable Energy Directive (RED II) because certain aspects of the act are inconsistent with WTO rules.
The decision was made in a claim brought by Malaysia against the EU concerning palm oil and oil palm crop-based biofuels in renewable energy consumption targets.
Palm oil was classified as a high indirect land use change (ILUC) risk feedstock in 2019, which means it is subject to a crop cap and must be phased out by 2030.
ILUC can occur when pasture or agricultural land previously destined for food and feed markets is diverted to biofuel production.
In a decision that can be appealed, the WTO found that the procedure used in identifying ILUC-risk criteria, among other things, "accords less favourable treatment to palm oil-based biofuel from Malaysia than that accorded to like products of EU origin", and "does not accord an advantage to palm oil-based biofuel from Malaysia that is accorded to like products imported from third countries".
The EU said it will "take the necessary steps to adjust the Delegated Act". Argus Media
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WTO finds fault in EU move against palm oil biofuel: Malaysia
Kuala Lumpur says EU ‘agreed’ to comply with WTO ruling before it can impose restrictions in accepting Malaysia’s palm oil
The EU’s move against Malaysian palm oil biofuel is “indeed discriminatory,” the World Trade Organization (WTO) has found, according to Kuala Lumpur.
Abdul Ghani, Malaysian minister of plantation and commodities, Tuesday called the WTO ruling a “vindication” of Kuala Lumpur’s “pursuit of justice” for our biodiesel traders, companies, and employees.
The WTO report, released on Monday, “clearly finds fault with the EU’s rules on indirect land use change to ban palm oil biofuels," the minister said.
“It also finds fault with the EU’s approach to notifying and consulting with other economies when introducing new trade measures,” Ghani added.
The EU Commission’s “delegated act” against Malaysian palm oil establishes criteria to determine which food and feed-crop-based biofuels have a “high risk” of increasing greenhouse gas emissions due to the changes in the use of land – such as deforestation.
Ghani said the EU has “agreed” to comply with the WTO ruling before it can impose restrictions in accepting Malaysia’s palm oil biofuels.
Malaysia will “closely monitor the EU’s changes to its regulations to bring it in line with the WTO’s findings,” he also said. Anadolu Agency
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Malaysia to monitor changes in EU curbs on palm biofuel after WTO ruling
KUALA LUMPUR (Reuters) -Malaysia said on Wednesday it will closely monitor how the EU responds to a WTO ruling that supported the bloc’s stance that biofuels causing deforestation cannot be regarded as renewables, but sought changes in how it implemented that decision.
A World Trade Organization adjudicating panel, in its first ruling related to deforestation, on Tuesday rejected many of Malaysia’s claims against EU measures that led it to rule out palm oil-based biofuel as a renewable fuel.
However, the panel accepted Malaysia’s complaints over how the measures had been prepared, published and administered. The EU will need to make adjustments, but need not withdraw its measures, following the WTO ruling.
The European Commission said it welcomed that the WTO panel report allowed the EU to preserve its legal framework on renewable energy and biofuels broadly intact, and confirmed it had the right to take action to tackle greenhouse gas emissions.
It said it was analysing the report but believed it would need to issue a report on the most recent scientific data to determine whether crops have a high risk of contributing to deforestation, and amend an act to change certain criteria for certification for crops of low risk.
It would do so in the coming months.
The Malaysian government will monitor any changes to the EU’s regulations to bring it into line with the WTO’s findings and pursue compliance proceedings if necessary, Plantations and Commodities Minister Johari Abdul Ghani said in a statement on Wednesday. Read more Swissinfo
Who Won from WTO decision on Malaysian palm oil vs EU?
The World Trade Organisation's (WTO) rulings are usually clear, but its decision on Tuesday following Malaysia's request to rule on the European Union's (EU) discriminatory regulations against the country's palm oil is an exception.
Moments after the WTO announced its ruling, the media, competing with each other to be the first to break the story, skewed the headlines in favour of the EU.
One read: WTO backs EU in deforestation case against Malaysia. That is not exactly right. For one thing it isn't a deforestation case. What it was is this: it was one rule for EU's rapeseed and sunflower oil and one rule for palm oil.
Malaysia's complaint was about discriminatory regulations and directives. Here, contrary to the media headlines, the WTO backed Malaysia by saying the way the regulations' measures were prepared and administered needed adjustments. The EU has agreed to comply and Malaysia is keeping a watch on the ordered adjustments. Read more New Straits Times
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Malaysia wins key parts in EU dispute over palm oil-based biofuels
KUALA LUMPUR: Malaysia has won key parts of its dispute with the European Union (EU) over the latter's renewable energy directive known as RED II, according to Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
Putrajaya was also successful in challenging several measures maintained by France, the minister told FMT.
Malaysia's initial challenges, Johari said, were against the EU's use of "indirect land-use change" (ILUC) and its requirement of "low ILUC risk" for trade restrictions on palm oil biofuel exports.
Johari said a three-member panel had ruled that several measures undertaken by the EU and France were "inconsistent with World Trade Organisation (WTO) rules".
Particularly, restrictions like the "high ILUC risk cap" and "phase-out" regulations violated trade agreements aimed at preventing unnecessary trade barriers, he told the portal.
The panel also noted that other similar products available in the EU market were not subject to the same restrictions.
"The EU and France must now bring their measures into conformity with their WTO obligations," he said.
Johari said the panel report found that the "high ILUC risk cap" and "phase-out" regulations imposed by the EU violated the WTO's Technical Barriers to Trade (TBT) agreement which was designed to prevent unnecessary obstacles to doing business in the European grouping.
The EU's calculation of ILUC risk and France's implementation of low ILUC risk procedures were found lacking.
He said the panel also ruled that the regulations breached a multilateral agreement on trade in goods, known as the General Agreement on Tariffs and Trade 1994 (GATT 1994). New Straits Times
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WTO asks the EU to adjust RED II in palm oil decision
A World Trade Organisation (WTO) panel said the EU must adjust the Renewable Energy Directive (RED II) because certain aspects of the act are inconsistent with WTO rules.
The decision was made in a claim brought by Malaysia against the EU concerning palm oil and oil palm crop-based biofuels in renewable energy consumption targets.
Palm oil was classified as a high indirect land use change (ILUC) risk feedstock in 2019, which means it is subject to a crop cap and must be phased out by 2030.
ILUC can occur when pasture or agricultural land previously destined for food and feed markets is diverted to biofuel production.
In a decision that can be appealed, the WTO found that the procedure used in identifying ILUC-risk criteria, among other things, "accords less favourable treatment to palm oil-based biofuel from Malaysia than that accorded to like products of EU origin", and "does not accord an advantage to palm oil-based biofuel from Malaysia that is accorded to like products imported from third countries".
The EU said it will "take the necessary steps to adjust the Delegated Act". Argus Media
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WTO finds fault in EU move against palm oil biofuel: Malaysia
Kuala Lumpur says EU ‘agreed’ to comply with WTO ruling before it can impose restrictions in accepting Malaysia’s palm oil
The EU’s move against Malaysian palm oil biofuel is “indeed discriminatory,” the World Trade Organization (WTO) has found, according to Kuala Lumpur.
Abdul Ghani, Malaysian minister of plantation and commodities, Tuesday called the WTO ruling a “vindication” of Kuala Lumpur’s “pursuit of justice” for our biodiesel traders, companies, and employees.
The WTO report, released on Monday, “clearly finds fault with the EU’s rules on indirect land use change to ban palm oil biofuels," the minister said.
“It also finds fault with the EU’s approach to notifying and consulting with other economies when introducing new trade measures,” Ghani added.
The EU Commission’s “delegated act” against Malaysian palm oil establishes criteria to determine which food and feed-crop-based biofuels have a “high risk” of increasing greenhouse gas emissions due to the changes in the use of land – such as deforestation.
Ghani said the EU has “agreed” to comply with the WTO ruling before it can impose restrictions in accepting Malaysia’s palm oil biofuels.
Malaysia will “closely monitor the EU’s changes to its regulations to bring it in line with the WTO’s findings,” he also said. Anadolu Agency
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Malaysia to monitor changes in EU curbs on palm biofuel after WTO ruling
KUALA LUMPUR (Reuters) -Malaysia said on Wednesday it will closely monitor how the EU responds to a WTO ruling that supported the bloc’s stance that biofuels causing deforestation cannot be regarded as renewables, but sought changes in how it implemented that decision.
A World Trade Organization adjudicating panel, in its first ruling related to deforestation, on Tuesday rejected many of Malaysia’s claims against EU measures that led it to rule out palm oil-based biofuel as a renewable fuel.
However, the panel accepted Malaysia’s complaints over how the measures had been prepared, published and administered. The EU will need to make adjustments, but need not withdraw its measures, following the WTO ruling.
The European Commission said it welcomed that the WTO panel report allowed the EU to preserve its legal framework on renewable energy and biofuels broadly intact, and confirmed it had the right to take action to tackle greenhouse gas emissions.
It said it was analysing the report but believed it would need to issue a report on the most recent scientific data to determine whether crops have a high risk of contributing to deforestation, and amend an act to change certain criteria for certification for crops of low risk.
It would do so in the coming months.
The Malaysian government will monitor any changes to the EU’s regulations to bring it into line with the WTO’s findings and pursue compliance proceedings if necessary, Plantations and Commodities Minister Johari Abdul Ghani said in a statement on Wednesday. Read more Swissinfo
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Mar 06, 2024
Malaysia wins WTO case against "discriminatory" EU Act
KUALA LUMPUR: Malaysia has succeeded in its World Trade Organisation (WTO) case against the European Delegated Act that is deemed discriminatory towards the country's palm oil biofuel.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the WTO panel had on March 5 issued its final report and concluded that the EU act that restricted palm oil biofuels, was indeed discriminatory.
"This ruling from WTO demonstrates that Malaysia's claims of discrimination are indeed justified. This vindicates Malaysia's pursuit of justice for our biodiesel traders, companies and employees," Johari said in a statement today.
His statement indirectly dismissed an earlier report by dpa news that a complaint by Malaysia against the EU over the bloc's rules on the use of palm oil-based biofuels had largely failed at the WTO.
The dispute dates to 2018 when the EU issued regulations on the minimum amount of renewable fuels that member countries must use in their transport sectors.
The EU stipulated that the use of biofuels for which forests had been cleared for planting could not be used to achieve this target. This primarily concerned oil palm crops.
Malaysia, which has a major palm oil production industry, had defended that the measures violated fair trade practices and launched a lawsuit against the WTO in 2021.
"The WTO final report clearly finds fault with the EU's use of indirect land use change to ban palm oil biofuels. It also finds fault with the EU's approach to notifying and consulting with other economies when introducing new trade measures," Johari said.
"The EU has agreed to comply with the WTO ruling before it can impose restrictions in accepting Malaysia's palm oil biofuels. The Malaysian government will closely monitor the EU's changes to its regulations to bring it in line with the WTO's findings, and pursue compliance proceedings if necessary."
He added that the government remains fully committed to defending the interests of palm oil biofuels industry players against trade barriers and discrimination. New Straits Times
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Malaysia to monitor changes in EU curbs on palm biofuel after WTO ruling
KUALA LUMPUR, March 6 (Reuters) - Malaysia said on Wednesday it will closely monitor how the EU responds to a WTO ruling that supported the bloc's stance that palm oil-based biodiesel should not count as a renewable biofuel, but sought changes in how it implemented that decision.
A World Trade Organization adjudicating panel, in its first ruling related to deforestation, on Tuesday rejected Malaysia's claims against the EU decision, but accepted its complaints over how the measures had been prepared, published and administered.
The EU will need to make adjustments, but need not withdraw its measures, following the WTO ruling.
The Malaysian government will monitor any changes to the EU's regulations to bring it into line with the WTO's findings, and pursue compliance proceedings if necessary, Plantations and Commodities Minister Johari Abdul Ghani said in a statement on Wednesday.
Malaysia, the world's second largest producer of palm oil, has described the EU's renewable energy directive as discriminatory, and in 2021 asked the WTO to examine the rules restricting the bloc's use of palm oil-based biofuels.
Under the regulations, palm oil-based fuels can no longer be considered as renewable transport fuel and are to be phased out by 2030, as the EU has determined that palm oil cultivation resulted in excessive deforestation.
Johari said the WTO report found fault with the EU’s rules on indirect land use change to ban palm oil biofuels, and with the bloc's approach to notifying and consulting with other economies when introducing new trade measures.
"This ruling from the WTO demonstrates that Malaysia's claims of discrimination are indeed justified," he said, adding that the government would continue to defend the interests of palm oil biofuels industry players against trade barriers. Reuters
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Shrinking global palm oil supplies, strong biodiesel demand to boost prices
KUALA LUMPUR (Reuters) - Stagnating global palm oil production and higher biodiesel mandates are likely to curb supplies of the world's most used vegetable oil this year, setting the stage for further gains in prices, which are trading at their highest in seven months.
Palm oil output in Indonesia and Malaysia, which account for a bulk of global production, is likely to either rise marginally in 2024 or decline from last year's level, as ageing plantations and a lack of expansion caps output, analysts told an industry conference in Kuala Lumpur on Wednesday.
"Vegetable oil prices will be supported by the prospective global production deficit," leading industry analyst Thomas Mielke said.
Palm oil inventories in the world's No. 1 producer Indonesia are low and stockpiles in the second-largest producer Malaysia are declining, he added.
The benchmark Malaysian palm oil contact jumped on Wednesday to its highest since late July at 4,075 ringgit per metric ton, taking the gains in 2024 to almost 10%. The market dropped for the last two years.
Palm oil, which accounts for more than half of around 90 million metric tons of edible oils shipped worldwide, is used in a range of products from chocolates, pizzas to cosmetics and as a biofuel.
LOWER PRODUCTION GROWTH
Annual palm oil production growth in 2023/24 is expected to be the smallest in four years at around 0.2-0.3 million metric tons, Mielke said, forecasting a 3,800-4,300 ringgit price range in the next three months.
While Indonesia's 2024 palm oil production will be at least one million tons lower than 2023, Malaysia's production is likely to be unchanged, analyst Dorab Mistry said.
"We are not able to expand acreage anymore. And the age profile of the trees is adverse," Mistry said at the end of the widely-watched event. Read more Yahoo/ Reuters
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Malaysia must accelerate replanting amid alarming drop in palm oil yield
KUALA LUMPUR (March 6): Malaysia must accelerate its replanting exercise to reverse the ageing oil palm structure or risk the market turning to other alternatives in the future, according to ISTA Mielke GmbH (Oil World) executive director Thomas Mielke.
“[If the situation is not reversed], it will be reflected in comparatively higher prices because the world needs rising quantities of oil. The market will decide who is going to cover this. The market will react, if necessary, [with] increased plantings and production of rapeseed, sunflower seed, or soybeans in other parts of the world,” he cautioned.
According to Mielke, there are over 1.7 million hectares of oil palms aged 19 years or older but the rate of replanting in the country remains low.
“The rate of replanting improved a little bit last year at around 130,000 to 140,000 hectares but still way below requirements. This is far too less and less than half of the recommended replanting of 250,000 to 280,000 hectares per year,” he told the audience at the Palm & Lauric Oils Price Outlook Conference & Exhibition.
“So there is a risk that by the year 2025, 35% or two million hectares of oil palm trees shall [be] older than 19 years. This is a problem which has to be solved,” he added.
Meanwhile, he commended the proposal put forward by Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani to consolidate independent smallholders to increase palm oil yield, as part of the efforts to reverse the ageing oil palm structure in Malaysia.
Mielke reiterated that palm oil production had lost its growth dynamics, as production has slowed down significantly since 2019. Read more The EdgeMY
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Indonesia's GAPKI sees lower 2024 palm oil exports, possible B40 mandate
KUALA LUMPUR: Indonesia's 2024 palm oil exports are seen at 29.50 million metric tonnes, down from 30.25 million tonnes last year, the Indonesia Palm Oil Association (GAPKI) said at an industry conference on Wednesday (March 6).
Meanwhile, palm oil output in the world's biggest producer of the edible oil is expected to rise by 2.26% to 54.4 million tonnes, GAPKI official Fadhil Hasan said, while domestic consumption is seen higher due to demand for biodiesel feedstock.
Indonesia's end-2024 palm oil stock is estimated at 5.25 million tonnes.
"There is a possibility of the new incoming government increasing B35 to B40," Fadhil said, referring to Indonesia's mandatory bio-content mix that currently stands at 35% of biodiesel. This could take place in the second half this year, he said.
"One of the programmes by the candidate likely to be elected is intention to raise to B50, but that is maybe for after 2025," he added.
Pollsters have said that Defence Minister Prabowo Subianto is the likely winner of the Feb 14 general election. The election committee has until March 20 to verify votes.
Meanwhile, the impact of El Nino dry weather pattern last year has turned out to be insignificant on 2024 production as it hit mostly Java and southern regions of Sumatra, which are not palm oil producing centres, Fadhil said. - Reuters
Malaysia wins WTO case against "discriminatory" EU Act
KUALA LUMPUR: Malaysia has succeeded in its World Trade Organisation (WTO) case against the European Delegated Act that is deemed discriminatory towards the country's palm oil biofuel.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the WTO panel had on March 5 issued its final report and concluded that the EU act that restricted palm oil biofuels, was indeed discriminatory.
"This ruling from WTO demonstrates that Malaysia's claims of discrimination are indeed justified. This vindicates Malaysia's pursuit of justice for our biodiesel traders, companies and employees," Johari said in a statement today.
His statement indirectly dismissed an earlier report by dpa news that a complaint by Malaysia against the EU over the bloc's rules on the use of palm oil-based biofuels had largely failed at the WTO.
The dispute dates to 2018 when the EU issued regulations on the minimum amount of renewable fuels that member countries must use in their transport sectors.
The EU stipulated that the use of biofuels for which forests had been cleared for planting could not be used to achieve this target. This primarily concerned oil palm crops.
Malaysia, which has a major palm oil production industry, had defended that the measures violated fair trade practices and launched a lawsuit against the WTO in 2021.
"The WTO final report clearly finds fault with the EU's use of indirect land use change to ban palm oil biofuels. It also finds fault with the EU's approach to notifying and consulting with other economies when introducing new trade measures," Johari said.
"The EU has agreed to comply with the WTO ruling before it can impose restrictions in accepting Malaysia's palm oil biofuels. The Malaysian government will closely monitor the EU's changes to its regulations to bring it in line with the WTO's findings, and pursue compliance proceedings if necessary."
He added that the government remains fully committed to defending the interests of palm oil biofuels industry players against trade barriers and discrimination. New Straits Times
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Malaysia to monitor changes in EU curbs on palm biofuel after WTO ruling
KUALA LUMPUR, March 6 (Reuters) - Malaysia said on Wednesday it will closely monitor how the EU responds to a WTO ruling that supported the bloc's stance that palm oil-based biodiesel should not count as a renewable biofuel, but sought changes in how it implemented that decision.
A World Trade Organization adjudicating panel, in its first ruling related to deforestation, on Tuesday rejected Malaysia's claims against the EU decision, but accepted its complaints over how the measures had been prepared, published and administered.
The EU will need to make adjustments, but need not withdraw its measures, following the WTO ruling.
The Malaysian government will monitor any changes to the EU's regulations to bring it into line with the WTO's findings, and pursue compliance proceedings if necessary, Plantations and Commodities Minister Johari Abdul Ghani said in a statement on Wednesday.
Malaysia, the world's second largest producer of palm oil, has described the EU's renewable energy directive as discriminatory, and in 2021 asked the WTO to examine the rules restricting the bloc's use of palm oil-based biofuels.
Under the regulations, palm oil-based fuels can no longer be considered as renewable transport fuel and are to be phased out by 2030, as the EU has determined that palm oil cultivation resulted in excessive deforestation.
Johari said the WTO report found fault with the EU’s rules on indirect land use change to ban palm oil biofuels, and with the bloc's approach to notifying and consulting with other economies when introducing new trade measures.
"This ruling from the WTO demonstrates that Malaysia's claims of discrimination are indeed justified," he said, adding that the government would continue to defend the interests of palm oil biofuels industry players against trade barriers. Reuters
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Shrinking global palm oil supplies, strong biodiesel demand to boost prices
KUALA LUMPUR (Reuters) - Stagnating global palm oil production and higher biodiesel mandates are likely to curb supplies of the world's most used vegetable oil this year, setting the stage for further gains in prices, which are trading at their highest in seven months.
Palm oil output in Indonesia and Malaysia, which account for a bulk of global production, is likely to either rise marginally in 2024 or decline from last year's level, as ageing plantations and a lack of expansion caps output, analysts told an industry conference in Kuala Lumpur on Wednesday.
"Vegetable oil prices will be supported by the prospective global production deficit," leading industry analyst Thomas Mielke said.
Palm oil inventories in the world's No. 1 producer Indonesia are low and stockpiles in the second-largest producer Malaysia are declining, he added.
The benchmark Malaysian palm oil contact jumped on Wednesday to its highest since late July at 4,075 ringgit per metric ton, taking the gains in 2024 to almost 10%. The market dropped for the last two years.
Palm oil, which accounts for more than half of around 90 million metric tons of edible oils shipped worldwide, is used in a range of products from chocolates, pizzas to cosmetics and as a biofuel.
LOWER PRODUCTION GROWTH
Annual palm oil production growth in 2023/24 is expected to be the smallest in four years at around 0.2-0.3 million metric tons, Mielke said, forecasting a 3,800-4,300 ringgit price range in the next three months.
While Indonesia's 2024 palm oil production will be at least one million tons lower than 2023, Malaysia's production is likely to be unchanged, analyst Dorab Mistry said.
"We are not able to expand acreage anymore. And the age profile of the trees is adverse," Mistry said at the end of the widely-watched event. Read more Yahoo/ Reuters
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Malaysia must accelerate replanting amid alarming drop in palm oil yield
KUALA LUMPUR (March 6): Malaysia must accelerate its replanting exercise to reverse the ageing oil palm structure or risk the market turning to other alternatives in the future, according to ISTA Mielke GmbH (Oil World) executive director Thomas Mielke.
“[If the situation is not reversed], it will be reflected in comparatively higher prices because the world needs rising quantities of oil. The market will decide who is going to cover this. The market will react, if necessary, [with] increased plantings and production of rapeseed, sunflower seed, or soybeans in other parts of the world,” he cautioned.
According to Mielke, there are over 1.7 million hectares of oil palms aged 19 years or older but the rate of replanting in the country remains low.
“The rate of replanting improved a little bit last year at around 130,000 to 140,000 hectares but still way below requirements. This is far too less and less than half of the recommended replanting of 250,000 to 280,000 hectares per year,” he told the audience at the Palm & Lauric Oils Price Outlook Conference & Exhibition.
“So there is a risk that by the year 2025, 35% or two million hectares of oil palm trees shall [be] older than 19 years. This is a problem which has to be solved,” he added.
Meanwhile, he commended the proposal put forward by Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani to consolidate independent smallholders to increase palm oil yield, as part of the efforts to reverse the ageing oil palm structure in Malaysia.
Mielke reiterated that palm oil production had lost its growth dynamics, as production has slowed down significantly since 2019. Read more The EdgeMY
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Indonesia's GAPKI sees lower 2024 palm oil exports, possible B40 mandate
KUALA LUMPUR: Indonesia's 2024 palm oil exports are seen at 29.50 million metric tonnes, down from 30.25 million tonnes last year, the Indonesia Palm Oil Association (GAPKI) said at an industry conference on Wednesday (March 6).
Meanwhile, palm oil output in the world's biggest producer of the edible oil is expected to rise by 2.26% to 54.4 million tonnes, GAPKI official Fadhil Hasan said, while domestic consumption is seen higher due to demand for biodiesel feedstock.
Indonesia's end-2024 palm oil stock is estimated at 5.25 million tonnes.
"There is a possibility of the new incoming government increasing B35 to B40," Fadhil said, referring to Indonesia's mandatory bio-content mix that currently stands at 35% of biodiesel. This could take place in the second half this year, he said.
"One of the programmes by the candidate likely to be elected is intention to raise to B50, but that is maybe for after 2025," he added.
Pollsters have said that Defence Minister Prabowo Subianto is the likely winner of the Feb 14 general election. The election committee has until March 20 to verify votes.
Meanwhile, the impact of El Nino dry weather pattern last year has turned out to be insignificant on 2024 production as it hit mostly Java and southern regions of Sumatra, which are not palm oil producing centres, Fadhil said. - Reuters
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Mar 05. 2024
Malaysia-EU RED II-WTO rules on renewable energy dispute
In a ruling published on 5 March 2024, the World Trade Organization (WTO) upheld the EU’s ability to take environmental and climate-based action under the Renewable Energy Directive (‘RED II’).
A WTO panel has ruled in a dispute brought by Malaysia (DS600) against measures taken by the EU under RED II concerning palm oil and oil palm crop-based biofuels, as well as certain related French measures. The measures establish renewable energy consumption targets for the EU transport fuel market. They limit the use of food and feed crop-based biofuels in achieving these targets, because such biofuels are considered to have negative overall impacts on climate change.
The panel confirmed the overall WTO compatibility of the RED II legal framework, but noted that certain aspects of the implementation and design of an EU Delegated Act under the Directive were inconsistent with WTO rules. This Delegated Act establishes the criteria to determine which food and feed-crop based biofuels have a high risk of increasing greenhouse gas emissions due to the changes in the use of land – such as deforestation – and allows for such crops to be certified as low risk in certain circumstances.
The matters identified by the panel are, to a very large extent, required anyway to be adjusted under EU law.
The EU intends to take the necessary steps to adjust the Delegated Act.
A parallel WTO dispute (DS593) brought by Indonesia, heard by the same panel, was suspended for a duration of two months at the request of Indonesia with effect from 5 March 2024. Read more EUROPA
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Nike in biofuel deal with CMA CGM, despite feedstock concerns
Nike is to offset more than one-third of its maritime transport carbon emissions with biofuel, through a deal with CMA CGM.
The ability to blend biofuel with conventional bunker fuel makes it possible for carriers to offer carbon ‘insetting’: customers can pay for a proportion of biofuel to be blended in, equivalent to the transport work done carrying their cargo.
With 36% of its cargo with CMA CGM to be covered, Nike claims offsetting in this way will reduce its CO2 emissions by 25,000 tons.
“Collaborating with a key player like Nike and taking this major step towards decarbonisation is an important achievement,” said Olivier Nivoix, CMA CGM EVP. “We are confident our success will act as a catalyst, encouraging other carriers and customers to join us on this path to accelerate the transition towards a net zero industry.”
Not everyone is happy with biofuels as a solution to CO2 emissions, however. Nike’s move contravenes the intentions of the EU ReFuelEU legislative package, which demands that “…a shift of crop-based biofuels from road transport to maritime transport” be “minimis[ed]”, because “road transport currently remains by far the most polluting transport sector”.
FuelEU Maritime noted: “It is therefore appropriate to avoid the creation of a potentially large demand for food- and feed crop-based biofuels, bioliquids and biomass fuels by promoting their use under this regulation.” Loadstar
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Malaysia Palm Oil Exports to grow 3.3% but Global Risks Remain
SINGAPORE (ICIS)–Malaysia’s palm oil exports are expected to improve this year amid better demand from key export destinations, but face risks from trade policy shifts and geopolitical tensions, industry officials said on Tuesday.
Palm oil exports are projected to grow by 3.3% year on year to 15.6m tonnes in 2024, while the export value of palm oil and palm-based product is expected to increase by 4.3% to Malaysian ringgit (M$) 110bn, Abdul Wahid Omar told delegates at the 35th Palm & Lauric Oils Price Outlook Conference & Exhibition (POC2024) in Kuala Lumpur.
Malaysia is the world’s second-biggest producer of palm oil, after Indonesia.
Despite the positive outlook for the palm oil industry, market participants need to stay alert to potential challenges, he said.
“These may come in the form of the increasingly unpredictable weather conditions, potential shifts to global trade and ESG [environmental, social, and governance] policies, and ongoing geopolitical risks, all of which could significantly impact palm oil trade,” Abdul Wahid said.
Malaysia’s minister of plantation and commodities Johari Abdul Ghani in a speech at the conference said that demand from export destinations such as India, China and the EU is set for robust growth this year. Read more on ICIS
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Malaysia sees strong palm oil demand from India, China this year Malaysia Plantation and Commodities Minister told the country expected strong demand for palm oil from key markets.
The government is working tirelessly for its palm oil certification to be accepted, Johari Abdul Ghani said, adding it must manage negative perceptions toward the edible oil.
Kuala Lampur: Malaysia Plantation and Commodities Minister on Tuesday told an industry conference the country expected strong demand for palm oil from key markets such as India and China this year.
Read more at: https://www.deccanherald.com/business/malaysia-sees-strong-palm-oil-demand-from-india-china-this-year-2922182
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Malaysia Sees Asia, Africa Taking Palm Oil Europe Doesn’t Want
The European Union has put in place rules that stop products causing forest destruction from being sold in shops and supermarkets. Most companies have until the end of the year to comply with the EU Deforestation Regulation, which covers commodities from palm oil to cocoa and coffee. Critics say the rules especially punish smaller farmers.
EU imports of palm, used in everything from ice cream to shampoo and fuel, already dropped about 5% last year, with shipments from Indonesia, Malaysia and Thailand, the largest growers, particularly hit. But that loss will be offset by increasing demand in Asia and Africa, where the population is rising, said Carl Bek-Nielsen, chairman of the Malaysian Palm Oil Council.
Prices of palm oil will hold in a range of 3,800 ringgit ($803) to 4,250 ringgit a ton this year, underpinned by supply shortages and strong demand for the tropical oil, Bek-Nielsen said in an interview in Kuala Lumpur on Monday. Benchmark futures closed at 3,938 ringgit. He is also chief executive director of United Plantations Bhd.
The EU regulations may “amputate” millions of smallholders from the supply chain, Bek-Nielsen said, as they don’t have the necessary tracking systems and are struggling with issues from aging trees to declining yields. The regulations should be delayed until they are made more inclusive for smallholders, which make up about 35% to 45% of production in Indonesia and Malaysia, and up to 90% in Thailand.
“This vehicle may have had good intentions, but it has severe blind spots and it is heading straight toward a huge brick wall,” Bek-Nielsen said. “We have not fully appreciated the complexity of the supply chain involving smallholders.” BNN Bloomberg
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MPOC SECURES RM705 MLN POTENTIAL SALES FROM MENA BUYERS
KUALA LUMPUR, March 5 (Bernama) -- The Malaysian Palm Oil Council (MPOC) has secured a total potential sales of RM705 million from a business matching session during Trade and Networking Visit for the Middle East and Northern African (MENA) Buyers recently.
MPOC chief executive officer Belvinder Sron said the MENA buyers from oils and fats companies across three MENA countries which are Turkiye, Egypt and Algeria sought for various palm products, including refined bleached deodorised (RBD) palm olein in both consumer pack and bulk container, cooking oil, shortening and specialty fats.
Describing the initiative as a success, she said MPOC has been approached by industry members to organise similar programmes for markets in the Asia Pacific and Sub-Saharan African regions.
"The success of this programme is attributed to the cooperation and strong support of Malaysian palm oil stakeholders.
"I encourage more industry members to participate in the upcoming ‘Trade and Networking’ editions as it is crucial that we intensify efforts to promote sustainable Malaysian palm oil to the world and explore untapped markets," she said in a statement today. Read more Bernama
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Ministry envisions business model to help palm oil smallholders boost yields
KUALA LUMPUR, March 5 — The Plantation and Commodities Ministry envisions a feasible business model that can consolidate independent smallholders to increase palm oil yield, said its Minister Datuk Seri Johari Abdul Ghani.
The model aims to consolidate 214,680 independent smallholders with a total land area of 822,073 hectares into clusters spanning 8,000 to 10,000 hectares of oil palm estates and to be managed by medium or large estates, said Johari in his speech at the 35th Annual Palm & Lauric Oils Price Outlook Conference & Exhibition (POC2024) here today.
“If we can consolidate even 30 per cent of independent smallholders, we would have an additional 250,000 hectares of land to be managed efficiently.
“I know it is not going to be easy to do this, but we have to start somewhere. We are looking at how big companies can help consolidate this,” he said.
Johari said out of the 5.7 million hectares of palm oil planted area, 27 per cent (1.5 million hectares) are managed on a small scale via smallholders and, on average, these smallholders manage plots of land of around four hectares.
“Indeed, many smallholders face difficulties increasing their yield,” he said, adding that a more pragmatic way to ensure replanting by smallholders for maximum yields would be to leverage the technical expertise of major industry players and the Malaysian Palm Oil Board. Read more Selangor Journal
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PNG Minister Maneke adamant to drive oil palm industry
Minister for Oil Palm, Francis Maneke is adamant that all programs in regards to the replanting of oil palms for the smallholder growers in Hoskins, Bialla and Popondetta projects will be accomplished.
Maneke in a press conference on Monday expressed satisfaction with the replanting exercise and raised concerns that overgrown oil palm plants are not producing sufficient yields which resulted in less income for the growers.
Oil palm is the third major crop with 14 percent of the annual export values in PNG. It covers a land area of 58,000 hectares (estate 33,000 ha and smallholder 25,000 ha, involving about 7,000 families).
The estates produce 65 percent of the output and 35 percent from the smallholders.
The oil palm industry supports about 4.5 percent of all rural households and their annual production is at the rate of 12 percent since 1997.
The overall growth rate of the industry since 1997 has been 15.5 percent per annum.
Three major schemes (Hoskins, Bialla and Popodentta) produce the bulk of the palm oil in the country.
All the schemes operate their mills producing crude palm oil entirely for export.
Minister for Oil Palm in a press conference on Monday raised concerns that the number of yields produced by the smallholder growers is declining. Therefore, the Oil Palm Ministry has stepped in to assist the smallholder growers in replanting old oil palm plants. Loop PNG
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Sime Darby Plantation Clinches Top Award for Integrity
Petaling Jaya, 5 March 2024 - Sime Darby Plantation Berhad (SD Plantation or Company) achieved another significant milestone as the world’s largest sustainable palm oil producer when it was accorded the Platinum Award at the Integrity, Governance, and Anti-Corruption Awards (AIGA) 2023. The Company won the event’s highest accolade out of the top five recipients of the Highest Gold Award from the night. The AIGA is organised by the Malaysian Institute of Integrity (IIM) and serves as a prestigious platform to honour both the public and private sectors in Malaysia for their outstanding efforts in promoting integrity.
SD Plantation’s Chief Integrity & Assurance Officer, Suhailah Mohamed Abdulla said the award underscores the Company’s commitment to upholding the highest standards of integrity and governance and its dedication to fostering a culture of integrity and transparency throughout its global operations.
“This is truly an outstanding culmination of Sime Darby Plantation’s collective efforts in raising awareness on integrity and governance, especially throughout 2023. We are indeed humbled to have received this important acknowledgment as we continue to implement the highest ethical standards and drive positive change, not just within our organisation but our value chain,” said Suhailah. Read more Sime Darby Plantation
Malaysia-EU RED II-WTO rules on renewable energy dispute
In a ruling published on 5 March 2024, the World Trade Organization (WTO) upheld the EU’s ability to take environmental and climate-based action under the Renewable Energy Directive (‘RED II’).
A WTO panel has ruled in a dispute brought by Malaysia (DS600) against measures taken by the EU under RED II concerning palm oil and oil palm crop-based biofuels, as well as certain related French measures. The measures establish renewable energy consumption targets for the EU transport fuel market. They limit the use of food and feed crop-based biofuels in achieving these targets, because such biofuels are considered to have negative overall impacts on climate change.
The panel confirmed the overall WTO compatibility of the RED II legal framework, but noted that certain aspects of the implementation and design of an EU Delegated Act under the Directive were inconsistent with WTO rules. This Delegated Act establishes the criteria to determine which food and feed-crop based biofuels have a high risk of increasing greenhouse gas emissions due to the changes in the use of land – such as deforestation – and allows for such crops to be certified as low risk in certain circumstances.
The matters identified by the panel are, to a very large extent, required anyway to be adjusted under EU law.
The EU intends to take the necessary steps to adjust the Delegated Act.
A parallel WTO dispute (DS593) brought by Indonesia, heard by the same panel, was suspended for a duration of two months at the request of Indonesia with effect from 5 March 2024. Read more EUROPA
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Nike in biofuel deal with CMA CGM, despite feedstock concerns
Nike is to offset more than one-third of its maritime transport carbon emissions with biofuel, through a deal with CMA CGM.
The ability to blend biofuel with conventional bunker fuel makes it possible for carriers to offer carbon ‘insetting’: customers can pay for a proportion of biofuel to be blended in, equivalent to the transport work done carrying their cargo.
With 36% of its cargo with CMA CGM to be covered, Nike claims offsetting in this way will reduce its CO2 emissions by 25,000 tons.
“Collaborating with a key player like Nike and taking this major step towards decarbonisation is an important achievement,” said Olivier Nivoix, CMA CGM EVP. “We are confident our success will act as a catalyst, encouraging other carriers and customers to join us on this path to accelerate the transition towards a net zero industry.”
Not everyone is happy with biofuels as a solution to CO2 emissions, however. Nike’s move contravenes the intentions of the EU ReFuelEU legislative package, which demands that “…a shift of crop-based biofuels from road transport to maritime transport” be “minimis[ed]”, because “road transport currently remains by far the most polluting transport sector”.
FuelEU Maritime noted: “It is therefore appropriate to avoid the creation of a potentially large demand for food- and feed crop-based biofuels, bioliquids and biomass fuels by promoting their use under this regulation.” Loadstar
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Malaysia Palm Oil Exports to grow 3.3% but Global Risks Remain
SINGAPORE (ICIS)–Malaysia’s palm oil exports are expected to improve this year amid better demand from key export destinations, but face risks from trade policy shifts and geopolitical tensions, industry officials said on Tuesday.
Palm oil exports are projected to grow by 3.3% year on year to 15.6m tonnes in 2024, while the export value of palm oil and palm-based product is expected to increase by 4.3% to Malaysian ringgit (M$) 110bn, Abdul Wahid Omar told delegates at the 35th Palm & Lauric Oils Price Outlook Conference & Exhibition (POC2024) in Kuala Lumpur.
Malaysia is the world’s second-biggest producer of palm oil, after Indonesia.
Despite the positive outlook for the palm oil industry, market participants need to stay alert to potential challenges, he said.
“These may come in the form of the increasingly unpredictable weather conditions, potential shifts to global trade and ESG [environmental, social, and governance] policies, and ongoing geopolitical risks, all of which could significantly impact palm oil trade,” Abdul Wahid said.
Malaysia’s minister of plantation and commodities Johari Abdul Ghani in a speech at the conference said that demand from export destinations such as India, China and the EU is set for robust growth this year. Read more on ICIS
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Malaysia sees strong palm oil demand from India, China this year Malaysia Plantation and Commodities Minister told the country expected strong demand for palm oil from key markets.
The government is working tirelessly for its palm oil certification to be accepted, Johari Abdul Ghani said, adding it must manage negative perceptions toward the edible oil.
Kuala Lampur: Malaysia Plantation and Commodities Minister on Tuesday told an industry conference the country expected strong demand for palm oil from key markets such as India and China this year.
Read more at: https://www.deccanherald.com/business/malaysia-sees-strong-palm-oil-demand-from-india-china-this-year-2922182
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Malaysia Sees Asia, Africa Taking Palm Oil Europe Doesn’t Want
- EU deforestation rules set to hit imports from top growers
- Malaysia says smallholders will find it difficult to adapt
The European Union has put in place rules that stop products causing forest destruction from being sold in shops and supermarkets. Most companies have until the end of the year to comply with the EU Deforestation Regulation, which covers commodities from palm oil to cocoa and coffee. Critics say the rules especially punish smaller farmers.
EU imports of palm, used in everything from ice cream to shampoo and fuel, already dropped about 5% last year, with shipments from Indonesia, Malaysia and Thailand, the largest growers, particularly hit. But that loss will be offset by increasing demand in Asia and Africa, where the population is rising, said Carl Bek-Nielsen, chairman of the Malaysian Palm Oil Council.
Prices of palm oil will hold in a range of 3,800 ringgit ($803) to 4,250 ringgit a ton this year, underpinned by supply shortages and strong demand for the tropical oil, Bek-Nielsen said in an interview in Kuala Lumpur on Monday. Benchmark futures closed at 3,938 ringgit. He is also chief executive director of United Plantations Bhd.
The EU regulations may “amputate” millions of smallholders from the supply chain, Bek-Nielsen said, as they don’t have the necessary tracking systems and are struggling with issues from aging trees to declining yields. The regulations should be delayed until they are made more inclusive for smallholders, which make up about 35% to 45% of production in Indonesia and Malaysia, and up to 90% in Thailand.
“This vehicle may have had good intentions, but it has severe blind spots and it is heading straight toward a huge brick wall,” Bek-Nielsen said. “We have not fully appreciated the complexity of the supply chain involving smallholders.” BNN Bloomberg
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MPOC SECURES RM705 MLN POTENTIAL SALES FROM MENA BUYERS
KUALA LUMPUR, March 5 (Bernama) -- The Malaysian Palm Oil Council (MPOC) has secured a total potential sales of RM705 million from a business matching session during Trade and Networking Visit for the Middle East and Northern African (MENA) Buyers recently.
MPOC chief executive officer Belvinder Sron said the MENA buyers from oils and fats companies across three MENA countries which are Turkiye, Egypt and Algeria sought for various palm products, including refined bleached deodorised (RBD) palm olein in both consumer pack and bulk container, cooking oil, shortening and specialty fats.
Describing the initiative as a success, she said MPOC has been approached by industry members to organise similar programmes for markets in the Asia Pacific and Sub-Saharan African regions.
"The success of this programme is attributed to the cooperation and strong support of Malaysian palm oil stakeholders.
"I encourage more industry members to participate in the upcoming ‘Trade and Networking’ editions as it is crucial that we intensify efforts to promote sustainable Malaysian palm oil to the world and explore untapped markets," she said in a statement today. Read more Bernama
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Ministry envisions business model to help palm oil smallholders boost yields
KUALA LUMPUR, March 5 — The Plantation and Commodities Ministry envisions a feasible business model that can consolidate independent smallholders to increase palm oil yield, said its Minister Datuk Seri Johari Abdul Ghani.
The model aims to consolidate 214,680 independent smallholders with a total land area of 822,073 hectares into clusters spanning 8,000 to 10,000 hectares of oil palm estates and to be managed by medium or large estates, said Johari in his speech at the 35th Annual Palm & Lauric Oils Price Outlook Conference & Exhibition (POC2024) here today.
“If we can consolidate even 30 per cent of independent smallholders, we would have an additional 250,000 hectares of land to be managed efficiently.
“I know it is not going to be easy to do this, but we have to start somewhere. We are looking at how big companies can help consolidate this,” he said.
Johari said out of the 5.7 million hectares of palm oil planted area, 27 per cent (1.5 million hectares) are managed on a small scale via smallholders and, on average, these smallholders manage plots of land of around four hectares.
“Indeed, many smallholders face difficulties increasing their yield,” he said, adding that a more pragmatic way to ensure replanting by smallholders for maximum yields would be to leverage the technical expertise of major industry players and the Malaysian Palm Oil Board. Read more Selangor Journal
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PNG Minister Maneke adamant to drive oil palm industry
Minister for Oil Palm, Francis Maneke is adamant that all programs in regards to the replanting of oil palms for the smallholder growers in Hoskins, Bialla and Popondetta projects will be accomplished.
Maneke in a press conference on Monday expressed satisfaction with the replanting exercise and raised concerns that overgrown oil palm plants are not producing sufficient yields which resulted in less income for the growers.
Oil palm is the third major crop with 14 percent of the annual export values in PNG. It covers a land area of 58,000 hectares (estate 33,000 ha and smallholder 25,000 ha, involving about 7,000 families).
The estates produce 65 percent of the output and 35 percent from the smallholders.
The oil palm industry supports about 4.5 percent of all rural households and their annual production is at the rate of 12 percent since 1997.
The overall growth rate of the industry since 1997 has been 15.5 percent per annum.
Three major schemes (Hoskins, Bialla and Popodentta) produce the bulk of the palm oil in the country.
All the schemes operate their mills producing crude palm oil entirely for export.
Minister for Oil Palm in a press conference on Monday raised concerns that the number of yields produced by the smallholder growers is declining. Therefore, the Oil Palm Ministry has stepped in to assist the smallholder growers in replanting old oil palm plants. Loop PNG
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Sime Darby Plantation Clinches Top Award for Integrity
Petaling Jaya, 5 March 2024 - Sime Darby Plantation Berhad (SD Plantation or Company) achieved another significant milestone as the world’s largest sustainable palm oil producer when it was accorded the Platinum Award at the Integrity, Governance, and Anti-Corruption Awards (AIGA) 2023. The Company won the event’s highest accolade out of the top five recipients of the Highest Gold Award from the night. The AIGA is organised by the Malaysian Institute of Integrity (IIM) and serves as a prestigious platform to honour both the public and private sectors in Malaysia for their outstanding efforts in promoting integrity.
SD Plantation’s Chief Integrity & Assurance Officer, Suhailah Mohamed Abdulla said the award underscores the Company’s commitment to upholding the highest standards of integrity and governance and its dedication to fostering a culture of integrity and transparency throughout its global operations.
“This is truly an outstanding culmination of Sime Darby Plantation’s collective efforts in raising awareness on integrity and governance, especially throughout 2023. We are indeed humbled to have received this important acknowledgment as we continue to implement the highest ethical standards and drive positive change, not just within our organisation but our value chain,” said Suhailah. Read more Sime Darby Plantation
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Mar 04, 2024
The skipped chapter of the sustainable palm oil story: Women smallholders
Women make up a large but undervalued part of the palm oil industry. How can the “backbone” of Indonesia’s palm oil trade be included in the sustainability conversation?
Women are often the forgotten link in the sustainable palm oil value chain.
Female oil palm farmers typically work in low-pay jobs, weeding, spraying fertiliser, tending to seedings or collecting loose fruit on plantations in Indonesia, the world’s biggest producer of the edible oil.
According to the International Labour Organisation, less than a third of palm oil workers are female. But data on exactly how many women work in the trade is unreliable, because many women work informally, helping their husbands in the fields, dividing their time between the sweaty labour of plantation life and domestic work at home.
Farm life is hard for women, who work long hours in remote parts of the archipelago, often doing other unpaid work, such as childcare or managing the family warung or store, after spending all day on the plantation.
“Culturally, women are expected to be mothers, not working. But women in smallholder communities must do everything to take care of the family,” said Dr Putri C. Eyanoer, a lecturer at the Universitas Sumatera Utara’s medicine faculty, who consults on a programme to help women smallholders in Indonesia. Read more Eco Business
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Empowering Indonesia's Female Palm Oil Farmers: Health, Nutrition, and Sustainability
Indonesia's female oil palm farmers face tough conditions. Initiatives are now improving their health, nutrition, and financial literacy, aiming for a sustainable, gender-equal future.
Indonesia's female oil palm farmers, integral to the world's largest producer of edible oil, face arduous conditions. Working long hours in remote areas, they juggle plantation labor with domestic responsibilities, all while grappling with poor access to nutritious food and healthcare. Recognizing their plight, initiatives like Musim Mas' Women Smallholders Programme are making strides in improving health, nutrition, and financial literacy among these women, aiming for a sustainable future that includes gender equality in the palm oil industry.
Challenges on the Plantation
Life on an oil palm plantation is notably challenging for female workers. Engaged in physically demanding tasks such as weeding, fertilizing, and harvesting, these women also carry the burden of domestic duties, from childcare to managing household finances. Cultural expectations further compound their workload, with societal norms dictating their primary role as caregivers, leaving little time for self-care or professional development. Poor nutrition and the prevalence of non-communicable diseases highlight the need for targeted health and nutrition programs.
Steps Toward Empowerment Read more BNN Breaking
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Norwegian Sovereign wealth fund drops Indonesian conglomerate PT Astra over threatened species risk
The Norwegian sovereign wealth fund will sell off ownership stakes in a major Indonesian conglomerate after concerns that its gold mining ambitions in Sumatra represents an unacceptable threat to a critically endangered species of orangutan.
Norges Bank Investment Management (NBIM), the world’s biggest sovereign wealth fund, will exclude Indonesian conglomerate PT Astra international and its subsidiaries Jardine Matheson Holdings and Jardne Cycle & Carriage, it announced on Feb. 29.
The fund’s ethics council had recommended the company take the action “due to an unacceptable risk that they are contributing to or are themselves responsible for serious environmental damage”.
At the heart of the issue is the Martabe gold mine in Sumatra, which is owned by Astra subsidiary United Tractors.
It is located within the habitat of the Tapanuli orangutan, of which there are fewer than 800 individuals left.
“The council attaches importance to the fact that the company is planning to significantly increase the mining area during the mine’s lifetime, that new deposits will be exploited if commercially viable, and that the Indonesian authorities have granted permission for mining operations in an area that is as yet undeveloped,” NBIM’s ethical council said in its assessment. Read more Carbon Pulse
The skipped chapter of the sustainable palm oil story: Women smallholders
Women make up a large but undervalued part of the palm oil industry. How can the “backbone” of Indonesia’s palm oil trade be included in the sustainability conversation?
Women are often the forgotten link in the sustainable palm oil value chain.
Female oil palm farmers typically work in low-pay jobs, weeding, spraying fertiliser, tending to seedings or collecting loose fruit on plantations in Indonesia, the world’s biggest producer of the edible oil.
According to the International Labour Organisation, less than a third of palm oil workers are female. But data on exactly how many women work in the trade is unreliable, because many women work informally, helping their husbands in the fields, dividing their time between the sweaty labour of plantation life and domestic work at home.
Farm life is hard for women, who work long hours in remote parts of the archipelago, often doing other unpaid work, such as childcare or managing the family warung or store, after spending all day on the plantation.
“Culturally, women are expected to be mothers, not working. But women in smallholder communities must do everything to take care of the family,” said Dr Putri C. Eyanoer, a lecturer at the Universitas Sumatera Utara’s medicine faculty, who consults on a programme to help women smallholders in Indonesia. Read more Eco Business
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Empowering Indonesia's Female Palm Oil Farmers: Health, Nutrition, and Sustainability
Indonesia's female oil palm farmers face tough conditions. Initiatives are now improving their health, nutrition, and financial literacy, aiming for a sustainable, gender-equal future.
Indonesia's female oil palm farmers, integral to the world's largest producer of edible oil, face arduous conditions. Working long hours in remote areas, they juggle plantation labor with domestic responsibilities, all while grappling with poor access to nutritious food and healthcare. Recognizing their plight, initiatives like Musim Mas' Women Smallholders Programme are making strides in improving health, nutrition, and financial literacy among these women, aiming for a sustainable future that includes gender equality in the palm oil industry.
Challenges on the Plantation
Life on an oil palm plantation is notably challenging for female workers. Engaged in physically demanding tasks such as weeding, fertilizing, and harvesting, these women also carry the burden of domestic duties, from childcare to managing household finances. Cultural expectations further compound their workload, with societal norms dictating their primary role as caregivers, leaving little time for self-care or professional development. Poor nutrition and the prevalence of non-communicable diseases highlight the need for targeted health and nutrition programs.
Steps Toward Empowerment Read more BNN Breaking
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Norwegian Sovereign wealth fund drops Indonesian conglomerate PT Astra over threatened species risk
The Norwegian sovereign wealth fund will sell off ownership stakes in a major Indonesian conglomerate after concerns that its gold mining ambitions in Sumatra represents an unacceptable threat to a critically endangered species of orangutan.
Norges Bank Investment Management (NBIM), the world’s biggest sovereign wealth fund, will exclude Indonesian conglomerate PT Astra international and its subsidiaries Jardine Matheson Holdings and Jardne Cycle & Carriage, it announced on Feb. 29.
The fund’s ethics council had recommended the company take the action “due to an unacceptable risk that they are contributing to or are themselves responsible for serious environmental damage”.
At the heart of the issue is the Martabe gold mine in Sumatra, which is owned by Astra subsidiary United Tractors.
It is located within the habitat of the Tapanuli orangutan, of which there are fewer than 800 individuals left.
“The council attaches importance to the fact that the company is planning to significantly increase the mining area during the mine’s lifetime, that new deposits will be exploited if commercially viable, and that the Indonesian authorities have granted permission for mining operations in an area that is as yet undeveloped,” NBIM’s ethical council said in its assessment. Read more Carbon Pulse
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Mar 03, 2024
Revolutionizing Palm Oil: Empowering Smallholders and Expanding Beyond Crude Production
Efforts to reshape the palm oil industry focus on enhancing smallholder farm productivity and diversifying crude palm oil products for sustainability.
In a bold move to reshape the palm oil industry, efforts are underway to significantly increase the productivity of smallholder farms and diversify the products derived from crude palm oil (CPO). This initiative aims not only to enhance the income of millions of smallholders but also to ensure the sustainability of the palm oil sector.
Elevating Smallholder Productivity
Currently, smallholder palm oil plantations, which cover as much as 1.5 million hectares, are underperforming in terms of fresh fruit bunch (FFB) yield. These farms produce only eight to 12 tonnes of FFB per hectare, in stark contrast to the 20 to 28 tonnes produced by larger farms. Recognizing the untapped potential, industry leaders propose a strategy to consolidate small plots into larger, more manageable units. This consolidation aims to facilitate the mobilization of resources, knowledge, and technology transfer to boost productivity. The goal is ambitious yet achievable: to elevate smallholder yields to 18 tonnes per hectare, thereby closing the gap with their larger counterparts. Read more BNN Breaking
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Synergy between palm oil industry players, smallholders can generate more income — Johari
KUALA LUMPUR, March 3 — The synergy between industry players and smallholders can help the latter generate higher income and produce more fresh fruit bunches (FFB), said Plantation and Commodity Minister Datuk Seri Johari Abdul Ghani.
“If a smallholder has four, three or two hectares. We combine all these to make one size say 10 to 15 hectares, and then we can mobilise,” he said.
He said, as many as 1.5 million hectares of palm oil plantations are managed by smallholders, and only eight to 12 tonnes of FFB can be produced from one hectare. Meanwhile, large farms are able to produce almost 20 to 28 tonnes of FFB in the same area.
“So we want to educate these smallholders, especially the new generation so that they can also produce 18 tonnes for one hectare and not 10 tonnes anymore,” he told Bernama.
Johari said the industry also needs to explore beyond the production of crude palm oil (CPO) and focus on the downstream phase of CPO processing that can generate much higher income. Read more Selangor Journal
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Research-A holistic mitigation model for net zero emissions in the palm oil industry
Abstract
Achieving net zero emissions to ensure a sustainable future has become increasingly urgent in light of climate change. The palm oil industry in Malaysia plays a significant role in the country's economy but has faced criticism for its environmental impact, particularly in terms of sustainability and greenhouse gas emissions. While the government has implemented policies and initiatives to promote sustainable palm oil production and reduce emissions, there remains a need for a comprehensive and integrated mitigation strategy to help make an informed decision to improve the performance. To address the limitations of the current framework, this study proposes an Integrated Mitigation Strategy Model which incorporates established frameworks of Palm Oil Mill Carbon Accounting (POMCFA) and Sustainability Index (POMSI). This model has been developed based on the superstructure approach, considering a set of mitigation options to improve weak indicators identified through assessments. The selection of these options is informed by a theoretical review of existing literature on factor changes and their impact on emissions reduction. The model is further validated through case studies, ensuring its robustness and reliability. Based on the case study, it reveals that palm oil mill effluent, diesel consumption, and water consumption contribute the most to carbon dioxide equivalent emissions. Read more Science Direct
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UK hopes to strengthen cooperation with Sabah, Sarawak
KOTA KINABALU (March 3): The British High Commissioner to Malaysia, Ailsa Terry, hopes to strengthen cooperation with Sabah and Sarawak.
Terry describes the bilateral relations between UK and Malaysia as excellent.
However, she said that there should be attempts to make it even stronger.
“One of the things I want to do is to build them into a more modern area of partnership around new technology and also to strengthen our cooperation with Sabah and Sarawak,” she said to the Borneo Post on Tuesday.
She added that the UK has a long history in Sarawak and Sabah, although in recent decades, the UK High Commission has focused more at Peninsular (Malaysia).
“I think I want to do more (work) in Sarawak and Sabah,” she said, adding that this would be in the field of climate, and of helping to protect diversity as well as help Sabah and Sarawak make their energy transition, as well as in terms of increasing trade and investment on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Read more Borneo Post
Revolutionizing Palm Oil: Empowering Smallholders and Expanding Beyond Crude Production
Efforts to reshape the palm oil industry focus on enhancing smallholder farm productivity and diversifying crude palm oil products for sustainability.
In a bold move to reshape the palm oil industry, efforts are underway to significantly increase the productivity of smallholder farms and diversify the products derived from crude palm oil (CPO). This initiative aims not only to enhance the income of millions of smallholders but also to ensure the sustainability of the palm oil sector.
Elevating Smallholder Productivity
Currently, smallholder palm oil plantations, which cover as much as 1.5 million hectares, are underperforming in terms of fresh fruit bunch (FFB) yield. These farms produce only eight to 12 tonnes of FFB per hectare, in stark contrast to the 20 to 28 tonnes produced by larger farms. Recognizing the untapped potential, industry leaders propose a strategy to consolidate small plots into larger, more manageable units. This consolidation aims to facilitate the mobilization of resources, knowledge, and technology transfer to boost productivity. The goal is ambitious yet achievable: to elevate smallholder yields to 18 tonnes per hectare, thereby closing the gap with their larger counterparts. Read more BNN Breaking
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Synergy between palm oil industry players, smallholders can generate more income — Johari
KUALA LUMPUR, March 3 — The synergy between industry players and smallholders can help the latter generate higher income and produce more fresh fruit bunches (FFB), said Plantation and Commodity Minister Datuk Seri Johari Abdul Ghani.
“If a smallholder has four, three or two hectares. We combine all these to make one size say 10 to 15 hectares, and then we can mobilise,” he said.
He said, as many as 1.5 million hectares of palm oil plantations are managed by smallholders, and only eight to 12 tonnes of FFB can be produced from one hectare. Meanwhile, large farms are able to produce almost 20 to 28 tonnes of FFB in the same area.
“So we want to educate these smallholders, especially the new generation so that they can also produce 18 tonnes for one hectare and not 10 tonnes anymore,” he told Bernama.
Johari said the industry also needs to explore beyond the production of crude palm oil (CPO) and focus on the downstream phase of CPO processing that can generate much higher income. Read more Selangor Journal
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Research-A holistic mitigation model for net zero emissions in the palm oil industry
Abstract
Achieving net zero emissions to ensure a sustainable future has become increasingly urgent in light of climate change. The palm oil industry in Malaysia plays a significant role in the country's economy but has faced criticism for its environmental impact, particularly in terms of sustainability and greenhouse gas emissions. While the government has implemented policies and initiatives to promote sustainable palm oil production and reduce emissions, there remains a need for a comprehensive and integrated mitigation strategy to help make an informed decision to improve the performance. To address the limitations of the current framework, this study proposes an Integrated Mitigation Strategy Model which incorporates established frameworks of Palm Oil Mill Carbon Accounting (POMCFA) and Sustainability Index (POMSI). This model has been developed based on the superstructure approach, considering a set of mitigation options to improve weak indicators identified through assessments. The selection of these options is informed by a theoretical review of existing literature on factor changes and their impact on emissions reduction. The model is further validated through case studies, ensuring its robustness and reliability. Based on the case study, it reveals that palm oil mill effluent, diesel consumption, and water consumption contribute the most to carbon dioxide equivalent emissions. Read more Science Direct
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UK hopes to strengthen cooperation with Sabah, Sarawak
KOTA KINABALU (March 3): The British High Commissioner to Malaysia, Ailsa Terry, hopes to strengthen cooperation with Sabah and Sarawak.
Terry describes the bilateral relations between UK and Malaysia as excellent.
However, she said that there should be attempts to make it even stronger.
“One of the things I want to do is to build them into a more modern area of partnership around new technology and also to strengthen our cooperation with Sabah and Sarawak,” she said to the Borneo Post on Tuesday.
She added that the UK has a long history in Sarawak and Sabah, although in recent decades, the UK High Commission has focused more at Peninsular (Malaysia).
“I think I want to do more (work) in Sarawak and Sabah,” she said, adding that this would be in the field of climate, and of helping to protect diversity as well as help Sabah and Sarawak make their energy transition, as well as in terms of increasing trade and investment on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Read more Borneo Post
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Mar 02, 2024
Indonesian Palm Oil Production in 2023 Increases 7.15 Percent, Exports to the European Union Slump
InfoSAWIT, JAKARTA – Production of crude palm oil (CPO) and palm kernel oil (PKO) in Indonesia in 2023 is estimated to reach 50.07 million tons and 4.77 million tons respectively, which will increase by 7.15% and 5.66%. % from the previous year. This increase in production was influenced by several factors, including the high price of palm oil which encouraged plantation seeding and expansion of planting areas.
Domestic consumption has also increased, from 21.24 million tons in 2022 to 23.13 million tons in 2023, with the implementation of the biodiesel (B35) policy being one of the main drivers. Biodiesel consumption itself has increased significantly, surpassing consumption for domestic food needs.
However, Indonesia's palm oil exports decreased by 2.38% to 32.21 million tons. The largest decline in exports occurred to European Union (EU) destinations of 11.6%, while exports to Africa, China, India and the United States (US) experienced significant increases.
However, Indonesia's palm oil exports decreased by 2.38% to 32.21 million tons. The largest decline in exports occurred to European Union (EU) destinations of 11.6%, while exports to Africa, China, India and the United States (US) experienced significant increases. Read more Infosawit
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Indonesia, EU discuss intellectual property in trade deal negotiations
Jakarta (ANTARA) - Indonesia's Ministry of Law and Human Rights discussed the intellectual property (IP) chapter during the 17th Round of Negotiations of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) Working Group on Intellectual Property (WGIP).
Head of Foreign Cooperation at the ministry's Directorate General of Intellectual Property, Marchienda Werdany, said that the discussion aimed to ensure the intellectual property protection system in both Indonesia and the EU so as to give legal certainty to economic players.
"There are still two rounds of negotiations. The Ministry of Trade is targeting that by July 2024, they would have been completed and continued by signing by leaders of each country," she said in a statement from her office on Friday.
Werdany said that several proposals from the EU were the focus of the forum, including those regarding the protection of medicinal product data, the duration of the protection period for industrial designs, as well as genetic resources and traditional knowledge.
IEU-CEPA is a form of trade cooperation between Indonesia and the EU that is focused on several intellectual property issues. The 17th round of IEU-CEPA negotiations was held in Bandung, West Java, from February 26 to March 1.
Meanwhile, a representative from the Ministry of Foreign Affairs, Aldamayo Panadjam Panjaitan, said that Indonesia used the negotiation round to strengthen its position.
"In this new counter proposal, we observed that the European Union has started to accommodate Indonesia's interests, and in this negotiation, we want to sharpen Indonesia's position to be more suitable," he added.
He expressed optimism that the negotiation would result in an agreement between Indonesia and the EU and realize mutually beneficial economic cooperation for the two parties.
Earlier, Deputy Minister of Trade Jerry Sambuaga stated that the IEU-CEPA negotiations are expected to be completed in 2024 before the change in government.
The EU is one of Indonesia's main trade partners. In 2022, the total value of the bilateral trade between Indonesia and the EU reached US$33.2 billion. The same year, Indonesia's exports to the EU reached US$21.5 billion, while its imports from the EU stood at US$11.7 billion. Antara
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ANAMBRA GOVT INITIATES PLAN TO ESTABLISH ECONOMIC TIES WITH INDONESIA
The Industry Commissioner, Anambra State, Mr. Christian Udechukwu has said that the state government have initiated plans to establish economic ties and investment relationship with Indonesia as well as open the doors to bilateral travels.
Mr. Udechukwu said, “such is a unique opportunity for Nigeria, especially Anambra to build a stronger relationship in respect to industrial development.
The Commissioner made this known during a live conference call of the “2nd International Forum of Higher Education,Industry, Government Partnership Meeting and Education Expo” hosted by Anambra-Indonesia Industrial Partnership Development.
“Our interest in participating in this program is primarily to update ourselves on the opportunity that exist on both sides.”
According to the commissioner, Indonesia and Nigeria have a lot of things in common, saying that in terms of population, Indonesia is estimated to be about 275 billion while Nigeria is about 260 million.
“There is opportunities for companies in Indonesia to participate in infrastructure development for Nigeria particularly Anambra.
“I speak particularly in respect of oil and gas, food crops development such as palm oil, coconut, rice soy beans, sugar, corn and more.
“I am aware that between the periods of 1978 to 1988, Indonesia facing some good challenges made significant investments in food development with the result that there is a higher degree of food sufficiency in food production for Indonesia.
“Today, your research development and investment policies will be very useful to Nigeria at this moment. The global cost of living crises that started in Europe, UK and America last year has come to Nigeria and so we are facing food security challenges.We can benefit from Indonesia experience to repeat what they did in 1978 to 1988. Read more Anambra State
Indonesian Palm Oil Production in 2023 Increases 7.15 Percent, Exports to the European Union Slump
InfoSAWIT, JAKARTA – Production of crude palm oil (CPO) and palm kernel oil (PKO) in Indonesia in 2023 is estimated to reach 50.07 million tons and 4.77 million tons respectively, which will increase by 7.15% and 5.66%. % from the previous year. This increase in production was influenced by several factors, including the high price of palm oil which encouraged plantation seeding and expansion of planting areas.
Domestic consumption has also increased, from 21.24 million tons in 2022 to 23.13 million tons in 2023, with the implementation of the biodiesel (B35) policy being one of the main drivers. Biodiesel consumption itself has increased significantly, surpassing consumption for domestic food needs.
However, Indonesia's palm oil exports decreased by 2.38% to 32.21 million tons. The largest decline in exports occurred to European Union (EU) destinations of 11.6%, while exports to Africa, China, India and the United States (US) experienced significant increases.
However, Indonesia's palm oil exports decreased by 2.38% to 32.21 million tons. The largest decline in exports occurred to European Union (EU) destinations of 11.6%, while exports to Africa, China, India and the United States (US) experienced significant increases. Read more Infosawit
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Indonesia, EU discuss intellectual property in trade deal negotiations
Jakarta (ANTARA) - Indonesia's Ministry of Law and Human Rights discussed the intellectual property (IP) chapter during the 17th Round of Negotiations of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) Working Group on Intellectual Property (WGIP).
Head of Foreign Cooperation at the ministry's Directorate General of Intellectual Property, Marchienda Werdany, said that the discussion aimed to ensure the intellectual property protection system in both Indonesia and the EU so as to give legal certainty to economic players.
"There are still two rounds of negotiations. The Ministry of Trade is targeting that by July 2024, they would have been completed and continued by signing by leaders of each country," she said in a statement from her office on Friday.
Werdany said that several proposals from the EU were the focus of the forum, including those regarding the protection of medicinal product data, the duration of the protection period for industrial designs, as well as genetic resources and traditional knowledge.
IEU-CEPA is a form of trade cooperation between Indonesia and the EU that is focused on several intellectual property issues. The 17th round of IEU-CEPA negotiations was held in Bandung, West Java, from February 26 to March 1.
Meanwhile, a representative from the Ministry of Foreign Affairs, Aldamayo Panadjam Panjaitan, said that Indonesia used the negotiation round to strengthen its position.
"In this new counter proposal, we observed that the European Union has started to accommodate Indonesia's interests, and in this negotiation, we want to sharpen Indonesia's position to be more suitable," he added.
He expressed optimism that the negotiation would result in an agreement between Indonesia and the EU and realize mutually beneficial economic cooperation for the two parties.
Earlier, Deputy Minister of Trade Jerry Sambuaga stated that the IEU-CEPA negotiations are expected to be completed in 2024 before the change in government.
The EU is one of Indonesia's main trade partners. In 2022, the total value of the bilateral trade between Indonesia and the EU reached US$33.2 billion. The same year, Indonesia's exports to the EU reached US$21.5 billion, while its imports from the EU stood at US$11.7 billion. Antara
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ANAMBRA GOVT INITIATES PLAN TO ESTABLISH ECONOMIC TIES WITH INDONESIA
The Industry Commissioner, Anambra State, Mr. Christian Udechukwu has said that the state government have initiated plans to establish economic ties and investment relationship with Indonesia as well as open the doors to bilateral travels.
Mr. Udechukwu said, “such is a unique opportunity for Nigeria, especially Anambra to build a stronger relationship in respect to industrial development.
The Commissioner made this known during a live conference call of the “2nd International Forum of Higher Education,Industry, Government Partnership Meeting and Education Expo” hosted by Anambra-Indonesia Industrial Partnership Development.
“Our interest in participating in this program is primarily to update ourselves on the opportunity that exist on both sides.”
According to the commissioner, Indonesia and Nigeria have a lot of things in common, saying that in terms of population, Indonesia is estimated to be about 275 billion while Nigeria is about 260 million.
“There is opportunities for companies in Indonesia to participate in infrastructure development for Nigeria particularly Anambra.
“I speak particularly in respect of oil and gas, food crops development such as palm oil, coconut, rice soy beans, sugar, corn and more.
“I am aware that between the periods of 1978 to 1988, Indonesia facing some good challenges made significant investments in food development with the result that there is a higher degree of food sufficiency in food production for Indonesia.
“Today, your research development and investment policies will be very useful to Nigeria at this moment. The global cost of living crises that started in Europe, UK and America last year has come to Nigeria and so we are facing food security challenges.We can benefit from Indonesia experience to repeat what they did in 1978 to 1988. Read more Anambra State
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Mar 01, 2024
VEGOILS-Palm ends higher on rival oils while traders await major industry conference
JAKARTA, Feb 29 (Reuters) - Malaysian palm oil futures closed up on Thursday, tracking strength in rival oils, while the market is waiting for leads from a major industry conference due to be held in Kuala Lumpur next week.
The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange was up 62 ringgit, or 1.59%, at 3,969 ringgit ($836.99) per metric ton on its closing.
"The futures (are) tracking external strength while awaiting leads from next week's Price Outlook Conference and Exhibition (POC)," said a Kuala Lumpur-based trader.
The soyoil contract on the Dalian Commodity Exchange DBYcv1 was up 0.66%, while its palm oil contract DCPcv1 rose 1.08%. Soyoil prices on the Chicago Board of Trade BOc2increased 0.15%.
Palm oil is affected by price movements in related oils as they compete for a share of the global vegetable oils market.
Exports of Malaysian palm oil products for February fell 14.0% to 1,106,054 metric tons from 1,286,509 metric tons shipped during January, cargo surveyor Intertek Testing Services said on Thursday. Read more Nasdaq/ Reuters
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Making the Palm Oil Industry Greener
Environmental concerns regarding the palm oil industry are well documented. However, IOIEO’s Sustainability Team says there is a way to make palm oil production more aligned with the quest for net zero
IN RECENT years, the sustainability of palm oil has gained traction, with issues such as deforestation, labour and land use rights, and carbon emission now openly scrutinised. There are two contradictory perspectives on the palm oil industry. On one hand, critics argue that it poses a threat to sustainability, while on the other hand, it is viewed as a driver for sustainable development.
This is evidenced upon mapping the palm oil industry against the United Nations Sustainable Development Goals (SDGs). The industry makes a direct contribution to economic growth (SDG 9, 12), poverty alleviation (SDG 1, 8, 10), enhanced food security (SDG 2), alternative energy (SDG 9), and long-term employment opportunities (SDG 1). It is also linked to addressing human rights issues and inequalities (SDG 8). However, the industry also raises environmental concerns due to the large-scale expansion of monoculture plantations, leading to human-wildlife conflicts, threatening biodiversity (SDG 14, 15), and increasing greenhouse gas (GHG) emissions (SDG 13). Read more The Chemical Engineer
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Sharing the Secrets of Greener Palm Oil
Adam Duckett interviews researchers working to optimise the palm oil sector
I’VE ASKED a lot of chemical engineers what inspired them to study the subject. Do they recall the moment they realised they wanted to join the profession? For Bing Shen How, part of a large community of researchers looking to improve the environmental performance of Malaysia’s massive palm oil industry, it was a sliding doors moment. He enrolled at university to study mechanical engineering yet found himself attending the induction for chemical engineers.
“I started to realise I wanted to be the person that builds the process,” he says. “I think other engineers can change the world as well but from my perspective the process is at the heart of all the changes. It’s very important.”
All about the networks
How is now a senior lecturer at Swinburne University of Technology in Sarawak where he teaches process plant design and supervises postgraduates focused on the circular economy, the use of biomass, and optimising supply chains. For his own research he’s been collaborating with what he describes as hardcore mathematicians in Hungary. He is helping them develop software that industrial process designers can use to optimise heat exchanger networks (doi.org/mgzk). He has also modelled what the optimal industrial networks in Pensinsula Malaysia might look like if there was a concerted effort to get the methane produced at palm oil mills and landfill to industrial users (doi.org/mgzm). Read more The Chemical Engineer
VEGOILS-Palm ends higher on rival oils while traders await major industry conference
JAKARTA, Feb 29 (Reuters) - Malaysian palm oil futures closed up on Thursday, tracking strength in rival oils, while the market is waiting for leads from a major industry conference due to be held in Kuala Lumpur next week.
The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange was up 62 ringgit, or 1.59%, at 3,969 ringgit ($836.99) per metric ton on its closing.
"The futures (are) tracking external strength while awaiting leads from next week's Price Outlook Conference and Exhibition (POC)," said a Kuala Lumpur-based trader.
The soyoil contract on the Dalian Commodity Exchange DBYcv1 was up 0.66%, while its palm oil contract DCPcv1 rose 1.08%. Soyoil prices on the Chicago Board of Trade BOc2increased 0.15%.
Palm oil is affected by price movements in related oils as they compete for a share of the global vegetable oils market.
Exports of Malaysian palm oil products for February fell 14.0% to 1,106,054 metric tons from 1,286,509 metric tons shipped during January, cargo surveyor Intertek Testing Services said on Thursday. Read more Nasdaq/ Reuters
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Making the Palm Oil Industry Greener
Environmental concerns regarding the palm oil industry are well documented. However, IOIEO’s Sustainability Team says there is a way to make palm oil production more aligned with the quest for net zero
IN RECENT years, the sustainability of palm oil has gained traction, with issues such as deforestation, labour and land use rights, and carbon emission now openly scrutinised. There are two contradictory perspectives on the palm oil industry. On one hand, critics argue that it poses a threat to sustainability, while on the other hand, it is viewed as a driver for sustainable development.
This is evidenced upon mapping the palm oil industry against the United Nations Sustainable Development Goals (SDGs). The industry makes a direct contribution to economic growth (SDG 9, 12), poverty alleviation (SDG 1, 8, 10), enhanced food security (SDG 2), alternative energy (SDG 9), and long-term employment opportunities (SDG 1). It is also linked to addressing human rights issues and inequalities (SDG 8). However, the industry also raises environmental concerns due to the large-scale expansion of monoculture plantations, leading to human-wildlife conflicts, threatening biodiversity (SDG 14, 15), and increasing greenhouse gas (GHG) emissions (SDG 13). Read more The Chemical Engineer
---------
Sharing the Secrets of Greener Palm Oil
Adam Duckett interviews researchers working to optimise the palm oil sector
I’VE ASKED a lot of chemical engineers what inspired them to study the subject. Do they recall the moment they realised they wanted to join the profession? For Bing Shen How, part of a large community of researchers looking to improve the environmental performance of Malaysia’s massive palm oil industry, it was a sliding doors moment. He enrolled at university to study mechanical engineering yet found himself attending the induction for chemical engineers.
“I started to realise I wanted to be the person that builds the process,” he says. “I think other engineers can change the world as well but from my perspective the process is at the heart of all the changes. It’s very important.”
All about the networks
How is now a senior lecturer at Swinburne University of Technology in Sarawak where he teaches process plant design and supervises postgraduates focused on the circular economy, the use of biomass, and optimising supply chains. For his own research he’s been collaborating with what he describes as hardcore mathematicians in Hungary. He is helping them develop software that industrial process designers can use to optimise heat exchanger networks (doi.org/mgzk). He has also modelled what the optimal industrial networks in Pensinsula Malaysia might look like if there was a concerted effort to get the methane produced at palm oil mills and landfill to industrial users (doi.org/mgzm). Read more The Chemical Engineer
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