Palm oil news. June 2023
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June 30, 2023
Big Chocolate Backs EU Deforestation Law That Risks Pricier Bars
New EU sourcing rules aim to curb role in deforestation
Major cocoa producer Ghana has warned of higher prices
(Bloomberg) -- Big chocolate companies are welcoming new European Union rules that protect forests, but which risk further hitting consumer wallets.
The EU is introducing laws that ensure that commodities including cocoa, coffee and palm oil aren’t grown on deforested land — and is also putting in measures to tackle issues like child labor in supply chains. Firms like Lindt & Spruengli AG, Ferrero SpA and Unilever Plc say they back the move because it looks after the environment and those who grow the crops.
But for shoppers — who increasingly want to know where their food comes from and whether it was ethically produced — it could come at a cost. No. 2 cocoa grower Ghana has warned that buyers should be ready to pay more because of the investment needed to set up systems tracking beans back to farms. That may potentially raise prices of everyday items like chocolate bars and shower gel for European consumers struggling with a cost-of-living crisis.
“There is clearly an investment that needs to be made,” said Francesco Tramontin, vice president of EU institutional relations at Kinder maker Ferrero. He said the company already has full traceability of farms it buys cocoa from.
The prospect of having to pay more for commodities like cocoa comes as inflation remains a particular problem for indulgent treats because of supply constraints. For example, cocoa futures have soared to a multiyear high and coffee prices have also jumped in London.
Premium chocolate producer Lindt, which also welcomed the new regulation and had been working toward it, declined to comment on the potential impact on consumers.
The new rules on deforestation come into force now, though companies have until the end of next year to comply. Ivory Coast and Ghana, the source of two-thirds of the world’s cocoa, are having to set up special systems that adhere to the EU’s requirements — such as geotagging land on which those products were harvested.
Unilever, which uses chocolate for its ice creams and buys Ghanaian cocoa through processor Barry Callebaut AG, said the “planet desperately needs” the measures and that they’ll mean a level playing field in Europe. BNN Bloomberg
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Indonesian Experts slam amnesty for illegal palm plantations
The government is expected to grant an amnesty to the owners, mostly large corporations, of some 3.3 million hectares of illegal oil palm plantations located in forest areas, as analysts condemn the move as a bad precedent that will incentivize future violations. Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan described the move as unavoidable and said there was not much the state could do about the illegal plantations. Instead, he gave an assurance that giving the amnesty to the firms would help enforce compliance and transparency from production to taxation. The Jakarta Post
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Malaysia-Palm tocotrienol-rich fraction allowed to make claims as anti-oxidant which may improve cognitive function
PALM tocotrienol-rich fraction (TRF), known for its nutrient function, can now be used on the labels of food products, a huge progress that benefits manufacturers and consumers as well as the palm oil industry.
Food processing manufacturers that use palm-based tocotrienol can state on the labels of their products two claims — TRF is an anti-oxidant and may help reduce oxidative stress. The other functional claim is that TRF may help improve cognitive function.
The Health Ministry has approved two nutrient function claims for TRF.
In 2019, the ministry gazetted that TRF be included as Vitamin E under the classification as permitted added nutrient allowed for food products.
Food processing manufacturers can use these nutrient function claims for food products that contain at least 10mg per 100ml of TRF for liquid food or at least 10mg per 100g of TRF for solid food.
These nutrient function claims were approved by the ministry following in-depth technical reviews and supported by the latest evidence from clinical studies and population studies, including Malaysia Palm Oil Board (MPOB) research.
MPOB applied for the ministry's approval about 10 years ago after we received the United States Food and Drug Administration's (FDA) "generally recognised as safe" approval for TRF to be used in food products.
Under Section 201(s) and 409 of the Federal Food, Drug and Cosmetic Act, any substance that is intentionally added to food is a food additive, that is subject to pre-market review and approval by the FDA, unless the substance is generally recognised among qualified experts as having been adequately shown to be safe under the conditions of its intended use, or unless the use of the substance is otherwise excepted from the definition of a food additive. New Straits Times
Big Chocolate Backs EU Deforestation Law That Risks Pricier Bars
New EU sourcing rules aim to curb role in deforestation
Major cocoa producer Ghana has warned of higher prices
(Bloomberg) -- Big chocolate companies are welcoming new European Union rules that protect forests, but which risk further hitting consumer wallets.
The EU is introducing laws that ensure that commodities including cocoa, coffee and palm oil aren’t grown on deforested land — and is also putting in measures to tackle issues like child labor in supply chains. Firms like Lindt & Spruengli AG, Ferrero SpA and Unilever Plc say they back the move because it looks after the environment and those who grow the crops.
But for shoppers — who increasingly want to know where their food comes from and whether it was ethically produced — it could come at a cost. No. 2 cocoa grower Ghana has warned that buyers should be ready to pay more because of the investment needed to set up systems tracking beans back to farms. That may potentially raise prices of everyday items like chocolate bars and shower gel for European consumers struggling with a cost-of-living crisis.
“There is clearly an investment that needs to be made,” said Francesco Tramontin, vice president of EU institutional relations at Kinder maker Ferrero. He said the company already has full traceability of farms it buys cocoa from.
The prospect of having to pay more for commodities like cocoa comes as inflation remains a particular problem for indulgent treats because of supply constraints. For example, cocoa futures have soared to a multiyear high and coffee prices have also jumped in London.
Premium chocolate producer Lindt, which also welcomed the new regulation and had been working toward it, declined to comment on the potential impact on consumers.
The new rules on deforestation come into force now, though companies have until the end of next year to comply. Ivory Coast and Ghana, the source of two-thirds of the world’s cocoa, are having to set up special systems that adhere to the EU’s requirements — such as geotagging land on which those products were harvested.
Unilever, which uses chocolate for its ice creams and buys Ghanaian cocoa through processor Barry Callebaut AG, said the “planet desperately needs” the measures and that they’ll mean a level playing field in Europe. BNN Bloomberg
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Indonesian Experts slam amnesty for illegal palm plantations
The government is expected to grant an amnesty to the owners, mostly large corporations, of some 3.3 million hectares of illegal oil palm plantations located in forest areas, as analysts condemn the move as a bad precedent that will incentivize future violations. Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan described the move as unavoidable and said there was not much the state could do about the illegal plantations. Instead, he gave an assurance that giving the amnesty to the firms would help enforce compliance and transparency from production to taxation. The Jakarta Post
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Malaysia-Palm tocotrienol-rich fraction allowed to make claims as anti-oxidant which may improve cognitive function
PALM tocotrienol-rich fraction (TRF), known for its nutrient function, can now be used on the labels of food products, a huge progress that benefits manufacturers and consumers as well as the palm oil industry.
Food processing manufacturers that use palm-based tocotrienol can state on the labels of their products two claims — TRF is an anti-oxidant and may help reduce oxidative stress. The other functional claim is that TRF may help improve cognitive function.
The Health Ministry has approved two nutrient function claims for TRF.
In 2019, the ministry gazetted that TRF be included as Vitamin E under the classification as permitted added nutrient allowed for food products.
Food processing manufacturers can use these nutrient function claims for food products that contain at least 10mg per 100ml of TRF for liquid food or at least 10mg per 100g of TRF for solid food.
These nutrient function claims were approved by the ministry following in-depth technical reviews and supported by the latest evidence from clinical studies and population studies, including Malaysia Palm Oil Board (MPOB) research.
MPOB applied for the ministry's approval about 10 years ago after we received the United States Food and Drug Administration's (FDA) "generally recognised as safe" approval for TRF to be used in food products.
Under Section 201(s) and 409 of the Federal Food, Drug and Cosmetic Act, any substance that is intentionally added to food is a food additive, that is subject to pre-market review and approval by the FDA, unless the substance is generally recognised among qualified experts as having been adequately shown to be safe under the conditions of its intended use, or unless the use of the substance is otherwise excepted from the definition of a food additive. New Straits Times
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June 29, 2023
Indonesia, Malaysia Have Cut Deforestation in Half in Last Half-Decade
Indonesia and Malaysia have cut deforestation by more than half over the last five years, a new report shows.
“Indonesia and Malaysia have managed to keep rates of primary forest loss near record-low levels,” according to an analysis from the World Resources Institute. Across both countries, average yearly forest loss fell dramatically in the last half-decade, with Indonesia seeing a 64 percent decline and Malaysia a 57 percent decline.
Indonesia is aiming for its forests to absorb more carbon than they release by 2030 and has taken steps toward that goal, including ramping up efforts to suppress forest fires. Both nations have also moved to curb logging and limit the clearing of land for palm oil plantations. E360 Yale
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Oil palm and deforestation: Malaysia cannot be considered a 'high-risk' country
THE debate on the impact of EU Deforestation Regulation (EUDR) on the palm oil sector in Malaysia has been in the headlines for several months.
Political decisions in Brussels were made in a manner that is discriminatory against Malaysian exports, and there has been scant effort to listen to the concerns of small farmers.
The EUDR has now moved from the legislative stage to implementation. The focus of the Malaysian palm oil industry is now on the ground-level efforts of implementation and compliance with a costly and wide-ranging set of criteria.
The Malaysian Palm Oil Council (MPOC) will remain engaged with the EU authorities in the next 18 months before the EUDR is fully implemented. New Straits Times
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Football pitch of tropical forest lost every 5 seconds
Earth lost an area of carbon-absorbing rainforest larger than Switzerland or the Netherlands in 2022, most of it destroyed to make way for cattle and commodity crops, an analysis of satellite data released Tuesday revealed. That is nearly a football pitch of mature tropical trees felled or burned every five seconds, night and day, and 10 percent more than the year before, according to the World Resources Institute (WRI). Tropical forests destroyed last year released 2.7 billion tonnes of CO2 into the atmosphere, equivalent to the fossil fuel emissions of India, the world's most populous nation, the WRI's Global Forest Watch unit reported.
Brazil accounted for 43 percent of the loss, with the Democratic Republic of Congo and Bolivia responsible for about 13 and nine percent, respectively. The more than 41,000 square kilometres (nearly 16,000 square miles) decimated globally last year makes 2022 the fourth most devastating year for primary forests in two decades. The accelerating loss comes a year after world leaders vowed at the Glasgow COP26 summit in 2021 to halt and reverse forest loss by 2030. AFP/ Jakarta Post
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U.S. Companies Face EU Deforestation Rules on Coffee, Wood and Other Everyday Goods
Businesses are bracing for tough new regulations after voluntary corporate efforts failed
Companies selling everyday products such as leather shoes, coffee and chocolate in the European Union will soon need to prove their wares aren’t causing forest loss under a new law, after voluntary efforts largely failed.
The world’s toughest rules on deforestation come into force Thursday, meaning that companies have 18 months to prepare for proving the origin of seven commodities imported into the EU that are known to drive forest loss: cattle, cocoa, coffee, palm oil, soy, rubber and wood.
Almost 40% of the world’s 500 largest companies using the seven commodities covered by the new EU rules haven’t set a policy on forest loss, environmental nonprofit Global Canopy said in a report in February. The nonprofit estimates at least 37 big U.S.-based companies, including Starbucks and Kellogg, will be covered by the new rules.
“Our team is reviewing the regulations and working with our materials and ingredients suppliers to prepare,” a Kellogg spokeswoman said. Starbucks declined to comment. Wall Street Journal
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First Joint Task Force Meeting on EUDR to take place in August
KUALA LUMPUR: The European Commission (EC), Indonesia, and Malaysia have agreed to set up a joint task force to strengthen the cooperation on the implementation of the EU Deforestation Regulation (EUDR), which will hold its first meeting in the first week of August 2023.
Indonesia and Malaysia agreed that the joint task force with the EC will focus on the relevant commodities in both countries in particular palm oil, wood, rubber, coffee, and cocoa, said the Council of Palm Producing Countries (CPOPC) in a joint statement today.
The joint task force comprises government representatives and stakeholders from both countries, including commodities associations, smallholders, workers associations, and civil society organisations, to enhance dialogue on supply chain traceability and transparency.
The statement said that matters may be addressed based on the country-specific approach in an inclusive and transparent manner under the framework of the joint task force. The Sun Daily/ CPOPC
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Businesses to Drive Green Transition of China’s Beef, Paper, Palm Oil and Soy Supply Chains
The World Economic Forum’s Tropical Forest Alliance has today launched a new taskforce to drive a sustainable transition across soft commodity supply chains in China – the world’s largest importer of soy, beef and second-largest importer of palm oil.
The Taskforce on Green Value Chains for China, launched at the Forum’s Annual Meeting of the New Champions in Tianjin, will encourage global supply chain actors who enter China’s market to alleviate deforestation caused by soybeans, palm oil, beef, pulp and paper and other commodities. This includes governments, producers, traders and retailers.
Market leaders operating in China – Bunge, Cargill, China Mengniu Dairy, L’Oréal, Nestlé – have signed up to the taskforce. The consumer goods companies have a combined annual revenue of nearly 240 billion CNY generated within the China market, while the commodity traders account for almost 40% of grain trade to the China market. The taskforce has the potential to be a catalyst for change across global supply chains, given the level of China’s soft commodity trade.
It aims to strengthen cross-market collaboration, focusing on the following four aspects: Modern Diplomacy
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Nestlé launches project to combat deforestation in Ivory Coast
Nestlé is launching the second phase of a project to combat deforestation in Ivory Coast, collaborating with the Swiss State Secretariat for Economic Affairs (SECO).
The initiative aims to address the environmental damage caused by cocoa farming. In the first phase, Nestlé, the Ivorian government, and the Earthworm Foundation worked together to protect and reforest the Cavally forest, a biodiversity reserve threatened by cocoa-related deforestation and illegal gold panning.
CHF4 million budget. Swiss Info
Indonesia, Malaysia Have Cut Deforestation in Half in Last Half-Decade
Indonesia and Malaysia have cut deforestation by more than half over the last five years, a new report shows.
“Indonesia and Malaysia have managed to keep rates of primary forest loss near record-low levels,” according to an analysis from the World Resources Institute. Across both countries, average yearly forest loss fell dramatically in the last half-decade, with Indonesia seeing a 64 percent decline and Malaysia a 57 percent decline.
Indonesia is aiming for its forests to absorb more carbon than they release by 2030 and has taken steps toward that goal, including ramping up efforts to suppress forest fires. Both nations have also moved to curb logging and limit the clearing of land for palm oil plantations. E360 Yale
---------
Oil palm and deforestation: Malaysia cannot be considered a 'high-risk' country
THE debate on the impact of EU Deforestation Regulation (EUDR) on the palm oil sector in Malaysia has been in the headlines for several months.
Political decisions in Brussels were made in a manner that is discriminatory against Malaysian exports, and there has been scant effort to listen to the concerns of small farmers.
The EUDR has now moved from the legislative stage to implementation. The focus of the Malaysian palm oil industry is now on the ground-level efforts of implementation and compliance with a costly and wide-ranging set of criteria.
The Malaysian Palm Oil Council (MPOC) will remain engaged with the EU authorities in the next 18 months before the EUDR is fully implemented. New Straits Times
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Football pitch of tropical forest lost every 5 seconds
Earth lost an area of carbon-absorbing rainforest larger than Switzerland or the Netherlands in 2022, most of it destroyed to make way for cattle and commodity crops, an analysis of satellite data released Tuesday revealed. That is nearly a football pitch of mature tropical trees felled or burned every five seconds, night and day, and 10 percent more than the year before, according to the World Resources Institute (WRI). Tropical forests destroyed last year released 2.7 billion tonnes of CO2 into the atmosphere, equivalent to the fossil fuel emissions of India, the world's most populous nation, the WRI's Global Forest Watch unit reported.
Brazil accounted for 43 percent of the loss, with the Democratic Republic of Congo and Bolivia responsible for about 13 and nine percent, respectively. The more than 41,000 square kilometres (nearly 16,000 square miles) decimated globally last year makes 2022 the fourth most devastating year for primary forests in two decades. The accelerating loss comes a year after world leaders vowed at the Glasgow COP26 summit in 2021 to halt and reverse forest loss by 2030. AFP/ Jakarta Post
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U.S. Companies Face EU Deforestation Rules on Coffee, Wood and Other Everyday Goods
Businesses are bracing for tough new regulations after voluntary corporate efforts failed
Companies selling everyday products such as leather shoes, coffee and chocolate in the European Union will soon need to prove their wares aren’t causing forest loss under a new law, after voluntary efforts largely failed.
The world’s toughest rules on deforestation come into force Thursday, meaning that companies have 18 months to prepare for proving the origin of seven commodities imported into the EU that are known to drive forest loss: cattle, cocoa, coffee, palm oil, soy, rubber and wood.
Almost 40% of the world’s 500 largest companies using the seven commodities covered by the new EU rules haven’t set a policy on forest loss, environmental nonprofit Global Canopy said in a report in February. The nonprofit estimates at least 37 big U.S.-based companies, including Starbucks and Kellogg, will be covered by the new rules.
“Our team is reviewing the regulations and working with our materials and ingredients suppliers to prepare,” a Kellogg spokeswoman said. Starbucks declined to comment. Wall Street Journal
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First Joint Task Force Meeting on EUDR to take place in August
KUALA LUMPUR: The European Commission (EC), Indonesia, and Malaysia have agreed to set up a joint task force to strengthen the cooperation on the implementation of the EU Deforestation Regulation (EUDR), which will hold its first meeting in the first week of August 2023.
Indonesia and Malaysia agreed that the joint task force with the EC will focus on the relevant commodities in both countries in particular palm oil, wood, rubber, coffee, and cocoa, said the Council of Palm Producing Countries (CPOPC) in a joint statement today.
The joint task force comprises government representatives and stakeholders from both countries, including commodities associations, smallholders, workers associations, and civil society organisations, to enhance dialogue on supply chain traceability and transparency.
The statement said that matters may be addressed based on the country-specific approach in an inclusive and transparent manner under the framework of the joint task force. The Sun Daily/ CPOPC
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Businesses to Drive Green Transition of China’s Beef, Paper, Palm Oil and Soy Supply Chains
The World Economic Forum’s Tropical Forest Alliance has today launched a new taskforce to drive a sustainable transition across soft commodity supply chains in China – the world’s largest importer of soy, beef and second-largest importer of palm oil.
The Taskforce on Green Value Chains for China, launched at the Forum’s Annual Meeting of the New Champions in Tianjin, will encourage global supply chain actors who enter China’s market to alleviate deforestation caused by soybeans, palm oil, beef, pulp and paper and other commodities. This includes governments, producers, traders and retailers.
Market leaders operating in China – Bunge, Cargill, China Mengniu Dairy, L’Oréal, Nestlé – have signed up to the taskforce. The consumer goods companies have a combined annual revenue of nearly 240 billion CNY generated within the China market, while the commodity traders account for almost 40% of grain trade to the China market. The taskforce has the potential to be a catalyst for change across global supply chains, given the level of China’s soft commodity trade.
It aims to strengthen cross-market collaboration, focusing on the following four aspects: Modern Diplomacy
---------
Nestlé launches project to combat deforestation in Ivory Coast
Nestlé is launching the second phase of a project to combat deforestation in Ivory Coast, collaborating with the Swiss State Secretariat for Economic Affairs (SECO).
The initiative aims to address the environmental damage caused by cocoa farming. In the first phase, Nestlé, the Ivorian government, and the Earthworm Foundation worked together to protect and reforest the Cavally forest, a biodiversity reserve threatened by cocoa-related deforestation and illegal gold panning.
CHF4 million budget. Swiss Info
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June 28, 2023
Can plantations value more than profit? Some in Malaysia think so
Plantation owners in the Borneo state of Sabah are setting aside land for conservation but some remain sceptical.
Sabah, Malaysia – At the Labuk Bay Proboscis Monkey Sanctuary on the eastern coast of Sabah in Malaysian Borneo, you have to drive along kilometres of bumpy dirt roads flanked by columns of palm oil trees before arriving at a spot where you can watch the endangered monkeys feeding up close.
The sanctuary, which has grown to some 202 hectares (500 acres) of mangroves and is home to about 200 proboscis monkeys, is owned by a palm oil company and located on about 283 hectares (700 acres) of plantation.
Since 2000, the Yet Hing Plantation has been feeding the monkeys – endemic to Borneo and famous for their tawny-coloured fur and the males’ bulbous noses – and charging tourists to see them.
But it is now taking the endeavour more seriously.
In 2021, it acquired some 18 hectares (43 acres) – roughly the size of 33 football fields – of a neighbouring palm oil plantation that was unproductive and sought the expertise of the Sabah Forestry Department to plant 35,000 saplings of more than 20 mangrove species to extend the monkeys’ habitat.
The idea is to create a wildlife corridor – tracts of forest to connect natural landscapes split apart by agriculture and other human activity – for the animals and keep them away from the crops, while also protecting the plantation by providing a buffer against the risk of floods. Al Jazeera
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Indonesia's Komnas Perempuan cooperates with EU to strengthen role
Jakarta (ANTARA) - Indonesia's National Commission on Violence against Women (Komnas Perempuan) is cooperating with the European Union (EU) to strengthen the commission's role in eradicating violence against women and advancing women's rights.
This cooperation will extend for almost 2.5 years in the future, Komnas Perempuan Chief Andy Yentriyani informed during a seminar on "Fighting Torture and Challenges in Implementing Laws related to Sexual Violence" here on Tuesday.
The EU support would also allow for the continuity of efforts made in cooperation with six institutions within the Cooperation for Torture Prevention (KuPP).
It may also help continue capacity support to service institutions for assisting women sexual violence victims, which will be distributed through the Pundi Perempuan mechanism managed by the commission along with Indonesia for Humanity, she informed.
Earlier, KuPP urged the government to immediately ratify the Optional Protocol Convention Against Torture (OPCAT). Antara News
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Pertamina plans to start making bioethanol from sugarcane, cassava
KUALA LUMPUR :Indonesian state energy company PT Pertamina plans to begin producing bioethanol from sugarcane and cassava this year and has also begun production of green hydrogen using geothermal energy, its CEO told a conference on Wednesday.
Indonesia, the world's biggest palm oil biodiesel user, has been working to introduce bioethanol mandates for gasoline to further cut fuel imports and carbon emissions, but securing adequate feedstock is a hurdle.
“This year, we will launch our new product, bioethanol - sugarcane based, cassava based. (There is) a lot of feedstock that can be used. Palm oil is for biodiesel, sugarcane and cassava for ethanol," Pertamina CEO Nicke Widyawati told a conference.
The Southeast Asian country's biodiesel mandates have cut billions of dollars from its diesel import bills.
Pertamina said last year that it aims to start a trial of hydrogen production in 2023 at a geothermal plant in Ulubelu on Sumatra island to produce 100 kg (220 lb) of hydrogen per day. Today Online
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European Chocolate Buyers Warned to Pay Up for Sustainable Cocoa
(Bloomberg) -- European cocoa buyers must be ready to pay more for beans that meet the region’s looming sustainability rules, key grower Ghana warned.
Ivory Coast and Ghana, which together supply about two-thirds of the chocolate ingredient, are having to set up systems to comply with new European Union regulations that ensure products aren’t grown on deforested land. They will enter into force at the end of this month, though companies have until the end of 2024 to comply.
The EU is also putting in measures to tackle issues like child labor within company supply chains. But meeting requirements of the rules will come at an extra cost that the consumer will have to pay, according to Ghana Cocoa Board Chief Executive Officer Joseph Boahen Aidoo. Such costs include traceability systems.
“We want to sustainably and responsibly produce cocoa, and that comes at a certain quality and cost which the consumer should be prepared to pay,” Aidoo said in an interview in the capital, Accra. Bloomberg
Can plantations value more than profit? Some in Malaysia think so
Plantation owners in the Borneo state of Sabah are setting aside land for conservation but some remain sceptical.
Sabah, Malaysia – At the Labuk Bay Proboscis Monkey Sanctuary on the eastern coast of Sabah in Malaysian Borneo, you have to drive along kilometres of bumpy dirt roads flanked by columns of palm oil trees before arriving at a spot where you can watch the endangered monkeys feeding up close.
The sanctuary, which has grown to some 202 hectares (500 acres) of mangroves and is home to about 200 proboscis monkeys, is owned by a palm oil company and located on about 283 hectares (700 acres) of plantation.
Since 2000, the Yet Hing Plantation has been feeding the monkeys – endemic to Borneo and famous for their tawny-coloured fur and the males’ bulbous noses – and charging tourists to see them.
But it is now taking the endeavour more seriously.
In 2021, it acquired some 18 hectares (43 acres) – roughly the size of 33 football fields – of a neighbouring palm oil plantation that was unproductive and sought the expertise of the Sabah Forestry Department to plant 35,000 saplings of more than 20 mangrove species to extend the monkeys’ habitat.
The idea is to create a wildlife corridor – tracts of forest to connect natural landscapes split apart by agriculture and other human activity – for the animals and keep them away from the crops, while also protecting the plantation by providing a buffer against the risk of floods. Al Jazeera
---------
Indonesia's Komnas Perempuan cooperates with EU to strengthen role
Jakarta (ANTARA) - Indonesia's National Commission on Violence against Women (Komnas Perempuan) is cooperating with the European Union (EU) to strengthen the commission's role in eradicating violence against women and advancing women's rights.
This cooperation will extend for almost 2.5 years in the future, Komnas Perempuan Chief Andy Yentriyani informed during a seminar on "Fighting Torture and Challenges in Implementing Laws related to Sexual Violence" here on Tuesday.
The EU support would also allow for the continuity of efforts made in cooperation with six institutions within the Cooperation for Torture Prevention (KuPP).
It may also help continue capacity support to service institutions for assisting women sexual violence victims, which will be distributed through the Pundi Perempuan mechanism managed by the commission along with Indonesia for Humanity, she informed.
Earlier, KuPP urged the government to immediately ratify the Optional Protocol Convention Against Torture (OPCAT). Antara News
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Pertamina plans to start making bioethanol from sugarcane, cassava
KUALA LUMPUR :Indonesian state energy company PT Pertamina plans to begin producing bioethanol from sugarcane and cassava this year and has also begun production of green hydrogen using geothermal energy, its CEO told a conference on Wednesday.
Indonesia, the world's biggest palm oil biodiesel user, has been working to introduce bioethanol mandates for gasoline to further cut fuel imports and carbon emissions, but securing adequate feedstock is a hurdle.
“This year, we will launch our new product, bioethanol - sugarcane based, cassava based. (There is) a lot of feedstock that can be used. Palm oil is for biodiesel, sugarcane and cassava for ethanol," Pertamina CEO Nicke Widyawati told a conference.
The Southeast Asian country's biodiesel mandates have cut billions of dollars from its diesel import bills.
Pertamina said last year that it aims to start a trial of hydrogen production in 2023 at a geothermal plant in Ulubelu on Sumatra island to produce 100 kg (220 lb) of hydrogen per day. Today Online
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European Chocolate Buyers Warned to Pay Up for Sustainable Cocoa
(Bloomberg) -- European cocoa buyers must be ready to pay more for beans that meet the region’s looming sustainability rules, key grower Ghana warned.
Ivory Coast and Ghana, which together supply about two-thirds of the chocolate ingredient, are having to set up systems to comply with new European Union regulations that ensure products aren’t grown on deforested land. They will enter into force at the end of this month, though companies have until the end of 2024 to comply.
The EU is also putting in measures to tackle issues like child labor within company supply chains. But meeting requirements of the rules will come at an extra cost that the consumer will have to pay, according to Ghana Cocoa Board Chief Executive Officer Joseph Boahen Aidoo. Such costs include traceability systems.
“We want to sustainably and responsibly produce cocoa, and that comes at a certain quality and cost which the consumer should be prepared to pay,” Aidoo said in an interview in the capital, Accra. Bloomberg
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June 27, 2023
Climate change: Deforestation surges despite pledges
An area of tropical forest the size of Switzerland was lost last year as tree losses surged, according to new research.
It means that a political pledge to end deforestation made at COP26 by world leaders is well off track.
Some 11 football pitches of forest were lost every minute in 2022, with Brazil dominating the destruction.
But a sharp reduction in forest loss in Indonesia shows that reversing this trend is achievable. BBC
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Deforestation Down in Indonesia Amid Increases Elsewhere
Deforestation rates are near record lows in Indonesia, home to the world's third-largest rainforests.
It's one of the few bright spots in an otherwise grim annual report, on the loss of forests worldwide, from the environmental research and policy group World Resources Institute.
Overall, the world lost 4.1 million hectares of undisturbed tropical forest last year, an area the size of Switzerland, according to WRI. That's a 10% increase from 2021. The loss of forest released as much planet-warming carbon dioxide as all the fossil fuels burned in India in 2021. VOA News
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Indonesia cites deforestation decline from stricter controls
JAKARTA, June 26 (Reuters) - Indonesia, home to a third of the world's rainforests, has seen its annual deforestation drop by 8.4%, its environment ministry said on Monday, attributing the fall to better control of fires and stricter permitting for tree clearance.
According to its latest available data, Indonesia recorded 104,000 hectares (256,990 acres) of deforested area from July 2021 to June 2022, down from 113,500 hectares in the year prior to that, according to government figures, which did not include numbers for the current year.
"One of the most significant measures is limiting new (clearance) permits on primary forest and peatland," environment ministry official Belinda A. Margono told reporters.
With the world's third biggest rainforest area after Brazil and Congo, Indonesia comes under close scrutiny from environmentalists and famously backtracked from a global pledge by more than 130 countries to end deforestation by 2030, calling it inappropriate and unfair. It advocates replanting programmes instead. Reuters
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Brazil-Government fears that new EU environmental rules may reduce Brazilian exports
Norm prohibits the importing of goods linked to deforestation and comes into force on Thursday (29), with a transition period
The new European Union (EU) rule to bar the purchase of goods produced in deforested areas comes into force next Thursday (29). Although there is an 18-month transition period, the measure is seen with concern by the Lula government and by productive sectors, who fear a decline in exports.
The lack of clarity regarding how some conditions will be implemented has caused Brazilian representatives to project a possible increase in costs as a potential obstacle to the sale of Brazilian products to the bloc.
"It's not enough that you comply with European legislation, there is a cost to prove that you comply with legislation, and this is an aspect that needs to be taken into account", emphasizes Tatiana Prazeres, foreign trade secretary at the Ministry of Development, Industry, Commerce and Services.
The norm makes it mandatory for importing companies headquartered in the bloc to implement due diligence systems to monitor supply chains and mitigate any negative impacts of the foreign goods they buy. The products affected by the new legislation are cattle, cocoa, coffee, palm oil, soy, rubber, wood, and derivatives. Folha De S.Paulo
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Green Afro-Palms addresses yield gap to help smallholder farmers unlock potential of palm oil in Ghana
As the most widely used vegetable oil in the world, palm oil or a component of it is used in 70-80% of food items. Its usage is also high in the cosmetic industry.
Despite the high demand, most smallholder palm oil farmers in West Africa are a dejected lot. West Africa, the epicenter of palm oil production in the 1960, has long lost its allure in favor of Malaysia and Indonesia. The two Asian countries now account for 85% of the world’s palm oil supply, with clients including some of the world’s biggest brands.
In Ghana, hundreds of smallholder farmers have given up on palm oil farming and instead opted to give up their lands to artisanal and small-scale illegal gold mining activities.
It is estimated that in Africa, the palm oil market is worth about $30 billion, while in Ghana, the third biggest producer in West Africa after Nigeria and Côte d’Ivoire, it is worth about $600 million.
Why palm oil farmers switched to illegal mining AG Funder News
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Philippines-PCA confirms copra price slump; 500,000 farmers affected
MANILA, Philippines — The Philippine Coconut Authority (PCA) yesterday confirmed the drop in farm gate prices of copra, with at least 500,000 farmers affected by the slump in prices.
The farm gate prices of copra ranged between P21 and P24 per kilo, according to PCA deputy administrator Roel Rosales.
“The phenomenon in the drop in the farm gate price of copra was due to the soft demand until now in the international market because of the effect of the pandemic, the Ukraine-Russian war,” Rosales said at a press conference yesterday.
He added that a large volume of imported vegetable oil is also available in the market.
“The retail price of palm oil in the market is cheaper compared to coconut oil, that is why many patronize it. The coconut oil is really geared as an export product. That is why coconut prices are affected by the movement of major players. That would explain why the farm gate price of copra is decreasing,” Rosales said.?The farm gate price of copra is expected to improve with the onset of the “-ber” months, according to the PCA official.?“We anticipate that as soon as the ‘-ber’ months start, the demand for the oil will increase,” he said. Philstar
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RGE Strengthens Commitment in Guangdong with New RMB 13.7 billion Investment to Expand Paper, Clean Energy and Palm Oil Operations
SINGAPORE – Media OutReach – 27 June 2023 – Royal Golden Eagle (RGE), a Singapore-headquartered group of resource-based manufacturing companies, signed a Memorandum of Understanding (MoU) with the Department of Commerce of Guangdong province yesterday to invest RMB13.7 billion over the next five years to expand its paper, clean energy and palm oil businesses in Guangdong.
The new investments, which are all existing major businesses of RGE, include a state-of-the-art paper machine, a natural gas-fuelled power plant, new LNG capacity expansion, and a new palm oil processing facility. The signing took place at the China (Guangdong) Singapore Economic and Trade Cooperation Conference in Singapore. Witnessing the MoU signing were Mr Wang Weizhong, Governor of China’s Guangdong Province, and Mr Alvin Tan, Minister of State for Culture, Community and Youth, and Trade and Industry.
The investments deepen RGE’s long-term commitment in China and in particular in Guangdong which is the core of the Guangdong-Hong Kong-Macau Greater Bay Area, a vibrant economic region in southern China. RGE, which turned 55 last year, also celebrated its 20th anniversary of investing in Guangdong where it has, so far, invested RMB 20 billion in the paper, non-woven fabrics and LNG clean energy sectors in Jiangmen and Yangjiang cities. Even during the Covid pandemic, RGE expanded its investments in Guangdong, underlining its confidence in the provincial government’s efforts to promote economic development.
RGE’s growing investments in Guangdong are driven by the many business opportunities China’s largest provincial economy has to offer, due to its immense economic potential, strategic location within the Greater Bay Area and close proximity to the markets. A total of 12 MoUs were signed yesterday, with RGE’s investment commitment being the highest in terms of value. Macau Business
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Climate change: Deforestation surges despite pledges
An area of tropical forest the size of Switzerland was lost last year as tree losses surged, according to new research.
It means that a political pledge to end deforestation made at COP26 by world leaders is well off track.
Some 11 football pitches of forest were lost every minute in 2022, with Brazil dominating the destruction.
But a sharp reduction in forest loss in Indonesia shows that reversing this trend is achievable. BBC
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Deforestation Down in Indonesia Amid Increases Elsewhere
Deforestation rates are near record lows in Indonesia, home to the world's third-largest rainforests.
It's one of the few bright spots in an otherwise grim annual report, on the loss of forests worldwide, from the environmental research and policy group World Resources Institute.
Overall, the world lost 4.1 million hectares of undisturbed tropical forest last year, an area the size of Switzerland, according to WRI. That's a 10% increase from 2021. The loss of forest released as much planet-warming carbon dioxide as all the fossil fuels burned in India in 2021. VOA News
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Indonesia cites deforestation decline from stricter controls
JAKARTA, June 26 (Reuters) - Indonesia, home to a third of the world's rainforests, has seen its annual deforestation drop by 8.4%, its environment ministry said on Monday, attributing the fall to better control of fires and stricter permitting for tree clearance.
According to its latest available data, Indonesia recorded 104,000 hectares (256,990 acres) of deforested area from July 2021 to June 2022, down from 113,500 hectares in the year prior to that, according to government figures, which did not include numbers for the current year.
"One of the most significant measures is limiting new (clearance) permits on primary forest and peatland," environment ministry official Belinda A. Margono told reporters.
With the world's third biggest rainforest area after Brazil and Congo, Indonesia comes under close scrutiny from environmentalists and famously backtracked from a global pledge by more than 130 countries to end deforestation by 2030, calling it inappropriate and unfair. It advocates replanting programmes instead. Reuters
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Brazil-Government fears that new EU environmental rules may reduce Brazilian exports
Norm prohibits the importing of goods linked to deforestation and comes into force on Thursday (29), with a transition period
The new European Union (EU) rule to bar the purchase of goods produced in deforested areas comes into force next Thursday (29). Although there is an 18-month transition period, the measure is seen with concern by the Lula government and by productive sectors, who fear a decline in exports.
The lack of clarity regarding how some conditions will be implemented has caused Brazilian representatives to project a possible increase in costs as a potential obstacle to the sale of Brazilian products to the bloc.
"It's not enough that you comply with European legislation, there is a cost to prove that you comply with legislation, and this is an aspect that needs to be taken into account", emphasizes Tatiana Prazeres, foreign trade secretary at the Ministry of Development, Industry, Commerce and Services.
The norm makes it mandatory for importing companies headquartered in the bloc to implement due diligence systems to monitor supply chains and mitigate any negative impacts of the foreign goods they buy. The products affected by the new legislation are cattle, cocoa, coffee, palm oil, soy, rubber, wood, and derivatives. Folha De S.Paulo
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Green Afro-Palms addresses yield gap to help smallholder farmers unlock potential of palm oil in Ghana
As the most widely used vegetable oil in the world, palm oil or a component of it is used in 70-80% of food items. Its usage is also high in the cosmetic industry.
Despite the high demand, most smallholder palm oil farmers in West Africa are a dejected lot. West Africa, the epicenter of palm oil production in the 1960, has long lost its allure in favor of Malaysia and Indonesia. The two Asian countries now account for 85% of the world’s palm oil supply, with clients including some of the world’s biggest brands.
In Ghana, hundreds of smallholder farmers have given up on palm oil farming and instead opted to give up their lands to artisanal and small-scale illegal gold mining activities.
It is estimated that in Africa, the palm oil market is worth about $30 billion, while in Ghana, the third biggest producer in West Africa after Nigeria and Côte d’Ivoire, it is worth about $600 million.
Why palm oil farmers switched to illegal mining AG Funder News
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Philippines-PCA confirms copra price slump; 500,000 farmers affected
MANILA, Philippines — The Philippine Coconut Authority (PCA) yesterday confirmed the drop in farm gate prices of copra, with at least 500,000 farmers affected by the slump in prices.
The farm gate prices of copra ranged between P21 and P24 per kilo, according to PCA deputy administrator Roel Rosales.
“The phenomenon in the drop in the farm gate price of copra was due to the soft demand until now in the international market because of the effect of the pandemic, the Ukraine-Russian war,” Rosales said at a press conference yesterday.
He added that a large volume of imported vegetable oil is also available in the market.
“The retail price of palm oil in the market is cheaper compared to coconut oil, that is why many patronize it. The coconut oil is really geared as an export product. That is why coconut prices are affected by the movement of major players. That would explain why the farm gate price of copra is decreasing,” Rosales said.?The farm gate price of copra is expected to improve with the onset of the “-ber” months, according to the PCA official.?“We anticipate that as soon as the ‘-ber’ months start, the demand for the oil will increase,” he said. Philstar
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RGE Strengthens Commitment in Guangdong with New RMB 13.7 billion Investment to Expand Paper, Clean Energy and Palm Oil Operations
SINGAPORE – Media OutReach – 27 June 2023 – Royal Golden Eagle (RGE), a Singapore-headquartered group of resource-based manufacturing companies, signed a Memorandum of Understanding (MoU) with the Department of Commerce of Guangdong province yesterday to invest RMB13.7 billion over the next five years to expand its paper, clean energy and palm oil businesses in Guangdong.
The new investments, which are all existing major businesses of RGE, include a state-of-the-art paper machine, a natural gas-fuelled power plant, new LNG capacity expansion, and a new palm oil processing facility. The signing took place at the China (Guangdong) Singapore Economic and Trade Cooperation Conference in Singapore. Witnessing the MoU signing were Mr Wang Weizhong, Governor of China’s Guangdong Province, and Mr Alvin Tan, Minister of State for Culture, Community and Youth, and Trade and Industry.
The investments deepen RGE’s long-term commitment in China and in particular in Guangdong which is the core of the Guangdong-Hong Kong-Macau Greater Bay Area, a vibrant economic region in southern China. RGE, which turned 55 last year, also celebrated its 20th anniversary of investing in Guangdong where it has, so far, invested RMB 20 billion in the paper, non-woven fabrics and LNG clean energy sectors in Jiangmen and Yangjiang cities. Even during the Covid pandemic, RGE expanded its investments in Guangdong, underlining its confidence in the provincial government’s efforts to promote economic development.
RGE’s growing investments in Guangdong are driven by the many business opportunities China’s largest provincial economy has to offer, due to its immense economic potential, strategic location within the Greater Bay Area and close proximity to the markets. A total of 12 MoUs were signed yesterday, with RGE’s investment commitment being the highest in terms of value. Macau Business
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June 26, 2023
UK-Malaysia collaboration to bolster sustainability in Malaysian palm oil
KUALA LUMPUR: The Malaysian Palm Oil Council (MPOC) is confident that collaboration between United Kingdom (UK) research institutions and Malaysian producers will bolster sustainability and drive industry advancements in the palm oil industry.
The move comes as the UK prepares to join the Comprehensive and Progressive Agreement for Transpacific Partnership (CPTPP) that will be finalised at the upcoming CPTPP Ministerial Meeting in Auckland, New Zealand, next month, presenting new trade opportunities and fostering closer ties between the two nations.
The MPOC said in its recent Market Highlights report that in recognising Malaysia’s position as a major global player in sustainable palm oil, UK research institutions should explore enhancing the industry’s sustainability practices and industry advancements.“Examples of such cooperation are yield improvement, by-product generation, and other critical aspects.
“By pooling expertise and resources, such collaborations aim to further strengthen Malaysia’s position as a leader in sustainable palm oil production and drive economic development in the country,” it said.
MPOC said palm oil is renowned for being the most cost-effective and environmentally beneficial vegetable oil, boasting high productivity per hectare compared to other alternatives.
“By fostering closer relations within the CPTPP, the collaboration between UK research institutions and Malaysian producers can unlock new opportunities for enhancing the industry’s sustainability practices. The Sun Daily
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Indonesia-Govt’ Plan to Spare 3.3 Mln ha of Palm Oil Estate Deemed Too Lenient
JAKARTA, KOMPAS — The government plans to whitewash or legalize 3.3 million hectares of oil palm plantations located in forest areas. Bleaching is an effort to improve governance of the palm oil industry which is considered chaotic. In this way, the area of oil palm plantations owned by companies, cooperatives, and people becomes clear, law and tax abiding.
Bleaching is a step to resolve the problem of oil palm plantations in accordance with the mechanism of Article 110 A and 110 B Job Creation Law. These problems, such as location permits, cultivation rights (HGU) for oil palm plantations, which are often intersected with forest areas.
The Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said, there are 16.8 million hectares of oil palm plantations in Indonesia. Of that amount, an area of 10.4 million hectares is used by companies, while the rest is for smallholder plantations. However, 3.3 million hectares of Indonesia's total oil palm land is in forest areas.
"The palm oil plantations in the area will be whitened. What else can be done? It cannot be removed, so it is forced to be whitened," he said in a press conference on the improvement of the governance of the palm oil industry at the Coordinating Ministry for Maritime Affairs and Investment Office in Jakarta on Friday (23/6/2023)." Kompas
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India (OPINION)-Towards self-sufficiency in edible oil
For two to three years, the government needs to let the market forces rule and stop cushioning the consumer from higher edible oil prices. Once our farmers see remunerative prices, we can have atmanirbharta on edible oil.
Changing dietary patterns and a shift towards a more oil-rich diet have led to increased demand for edible oils in India. The consumption of palm oil, in particular, has witnessed substantial growth; it is widely used due to its low cost, versatility, and high yield.
The share of raw oil, refined oil, and vanaspati in the total edible oil market is estimated roughly at 35%, 60%, and 5%, respectively, and over 50% of the demand is met through imports. From about 8.4 million tonnes (mt) in 2001, Indian consumption increased to 17.4 mt in 2011 and to estimated 27.2 mt in 2021—more than a three-fold increase in 20 years. This translates to a per capita consumption of approximately 19.9 kg that compares favourably with large global economies. If the Indian population continues to grow at the current rate, the edible oil requirement then would reach 30 mt for 1.5 billion in 2030 and 33 mt for 1.67 billion. Financial Express
UK-Malaysia collaboration to bolster sustainability in Malaysian palm oil
KUALA LUMPUR: The Malaysian Palm Oil Council (MPOC) is confident that collaboration between United Kingdom (UK) research institutions and Malaysian producers will bolster sustainability and drive industry advancements in the palm oil industry.
The move comes as the UK prepares to join the Comprehensive and Progressive Agreement for Transpacific Partnership (CPTPP) that will be finalised at the upcoming CPTPP Ministerial Meeting in Auckland, New Zealand, next month, presenting new trade opportunities and fostering closer ties between the two nations.
The MPOC said in its recent Market Highlights report that in recognising Malaysia’s position as a major global player in sustainable palm oil, UK research institutions should explore enhancing the industry’s sustainability practices and industry advancements.“Examples of such cooperation are yield improvement, by-product generation, and other critical aspects.
“By pooling expertise and resources, such collaborations aim to further strengthen Malaysia’s position as a leader in sustainable palm oil production and drive economic development in the country,” it said.
MPOC said palm oil is renowned for being the most cost-effective and environmentally beneficial vegetable oil, boasting high productivity per hectare compared to other alternatives.
“By fostering closer relations within the CPTPP, the collaboration between UK research institutions and Malaysian producers can unlock new opportunities for enhancing the industry’s sustainability practices. The Sun Daily
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Indonesia-Govt’ Plan to Spare 3.3 Mln ha of Palm Oil Estate Deemed Too Lenient
JAKARTA, KOMPAS — The government plans to whitewash or legalize 3.3 million hectares of oil palm plantations located in forest areas. Bleaching is an effort to improve governance of the palm oil industry which is considered chaotic. In this way, the area of oil palm plantations owned by companies, cooperatives, and people becomes clear, law and tax abiding.
Bleaching is a step to resolve the problem of oil palm plantations in accordance with the mechanism of Article 110 A and 110 B Job Creation Law. These problems, such as location permits, cultivation rights (HGU) for oil palm plantations, which are often intersected with forest areas.
The Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said, there are 16.8 million hectares of oil palm plantations in Indonesia. Of that amount, an area of 10.4 million hectares is used by companies, while the rest is for smallholder plantations. However, 3.3 million hectares of Indonesia's total oil palm land is in forest areas.
"The palm oil plantations in the area will be whitened. What else can be done? It cannot be removed, so it is forced to be whitened," he said in a press conference on the improvement of the governance of the palm oil industry at the Coordinating Ministry for Maritime Affairs and Investment Office in Jakarta on Friday (23/6/2023)." Kompas
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India (OPINION)-Towards self-sufficiency in edible oil
For two to three years, the government needs to let the market forces rule and stop cushioning the consumer from higher edible oil prices. Once our farmers see remunerative prices, we can have atmanirbharta on edible oil.
Changing dietary patterns and a shift towards a more oil-rich diet have led to increased demand for edible oils in India. The consumption of palm oil, in particular, has witnessed substantial growth; it is widely used due to its low cost, versatility, and high yield.
The share of raw oil, refined oil, and vanaspati in the total edible oil market is estimated roughly at 35%, 60%, and 5%, respectively, and over 50% of the demand is met through imports. From about 8.4 million tonnes (mt) in 2001, Indian consumption increased to 17.4 mt in 2011 and to estimated 27.2 mt in 2021—more than a three-fold increase in 20 years. This translates to a per capita consumption of approximately 19.9 kg that compares favourably with large global economies. If the Indian population continues to grow at the current rate, the edible oil requirement then would reach 30 mt for 1.5 billion in 2030 and 33 mt for 1.67 billion. Financial Express
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June 25, 2023
Indonesia's Pertamina reaches $3.1bn financing deal to upgrade oil refinery
JAKARTA (Reuters) – Indonesia's state energy company Pertamina reached a $3.1 billion financing deal with a number of export credit agencies and commercial banks to fund the upgrade of its Balikpapan refinery, the company said on Saturday.
The lenders include export credit agencies from South Korea, Italy and the United States, and 22 commercial banks, Pertamina said in a statement.
Pertamina will use the funds for the expansion of its Balikpapan oil refinery to a capacity of 360,000 barrels per day (bpd), from 260,000 bpd. The refinery would also be able to produce fuel with Euro V emission standards after the upgrade, the company said.
"With the improvements, Pertamina will be able to produce more environmentally friendly fuels and this certainly will support reaching Indonesia's net-zero emissions target," said Pertamina spokesperson Fadjar Djoko Santoso. Dunya News
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Indonesia Wants to Know Where the JETP Money Is
Jakarta. Indonesia says it has made the necessary preparations for the $20 billion climate financing Just Energy Transition Partnership (JETP), but the country is now wondering when the money will start to pour in.
The International Partners Group (IPG) at Bali’s G20 Summit last year launched the JETP to help Indonesia end its reliance on coal.
Co-led by the US and Japan, the IPG includes Canada, Denmark, the European Union (EU), France, Germany, Italy, Norway, and the UK. The IPG pledged to mobilize $10 billion of public money, while the other half comes from financial institutions that are part of the Glasgow Financial Alliance for Net Zero (Gfanz). The JETP funding, which is set to come in over a three-to-five-year period, encompasses grants, concessional loans, market-rate loans, guarantees, and private investment.
“Today we are chasing after the US’ group [IPG] and Gfanz, asking them ‘where the money is’,” Chief Investment Minister Luhut Binsar Pandjaitan said when commenting on the JETP program at the 2023 Indonesia Net Zero Summit in Jakarta on Saturday. Jakarta Globe
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Indonesia Mulls Diverting Palm Oil Exports to Africa Over EUDR
TEMPO.CO, Jakarta - With European nations implementing the European Union Deforestation-Free Regulations (EUDR), the government is thinking of gradually diverting Indonesia’s palm oil exports to Africa, stated Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan.
At a press conference on improving the governance of the national palm oil industry on Friday, June 23, 2023, he informed that the volume of palm oil exported from Indonesia to Europe could reach 3.3 million tons per year.
"I have conveyed to the European Parliament that we (the Indonesian government) are considering to gradually divert our palm oil exports to Africa in place of Europe… so that there will be no problem in the future," the minister said.
The European Union’s new policy requires all exporters to verify that their products have not been obtained through deforestation or from plantations built by clearing forest areas. Exporters would be fined if they violate the rule.
The products include palm oil and its derivatives, charcoal, cocoa, coffee, soybeans, beef, timber, rubber, paper, and leather. Tempo
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What opening of embassy in Indonesia means to Tanzania
IN promoting and strengthening its diplomatic relations with Indonesia, Tanzania has officially opened its Embassy in Jakarta.
Speaking at the opening ceremony of the Embassy on Wednesday, Minister for Foreign Affairs and East African Cooperation, Dr Stergomena Tax, said that the establishment of the embassy would serve as a platform for deepening cooperation, particularly in the economic sector, between the two nations.
“Close collaboration between Tanzania and Indonesia has been the norm, and we believe that the official opening of our embassy here will foster more cooperation between our two nations, especially in the economic sector,” said Dr Tax.
Moreover, Minister Tax highlighted the potential opportunities that a strong alliance with Indonesia, a country with significant economic strides, could provide Tanzania.
She focused on Tanzania’s ability to add value to its agricultural and mineral products, thus enhancing its competitiveness in international markets and promoting economic growth.
Moreover, Dr Tax thanked the government of Indonesia for the great cooperation it has been providing to the Embassy of Tanzania, Jakarta since the embassy was established in the country in 2022 until it was officially launched yesterday.
On the Indonesian side, Foreign Minister, Retno Marsudi underlined the strong and enduring bond between the two countries, dating back to the founding of both nations at the Bandung Conference in 1955. Daily NewsTZ
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Malaysia-UK research collaboration to advance palm oil industry – MPOC
The Malaysian Palm Oil Council (MPOC) is confident that collaboration between United Kingdom (UK) research institutions and Malaysian producers would bolster sustainability and drive industry advancements in the palm oil industry.
The move comes as the UK prepares to join the Comprehensive and Progressive Agreement for Transpacific Partnership (CPTPP) that will be finalised at the upcoming CPTPP Ministerial Meeting in Auckland, New Zealand, next month, presenting new trade opportunities and fostering closer ties between the two nations.
The MPOC said in its recent Market Highlights report that in recognising Malaysia’s position as a major global player in sustainable palm oil, UK research institutions should explore enhancing the industry’s sustainability practices and industry advancements.
“By pursuing partnerships with palm oil-producing countries like Malaysia, the UK aims to enhance traceability and transparency throughout the supply chain, thereby strengthening the overall sustainability standards of global palm oil production,” it said.
The UK has already made significant progress in sourcing sustainable palm and palm kernel oil, with the proportion of imports classified as “certified sustainable” increasing from 16 per cent in 2010 to an impressive 72 per cent in 2021.
“However, there is room for improvement, particularly in the areas of complex derivative supply chains. By collaborating with Malaysian producers, the UK seeks to overcome these challenges and ensure sustainability standards are met throughout the palm oil supply chain. The Malaysian Reserve
Indonesia's Pertamina reaches $3.1bn financing deal to upgrade oil refinery
JAKARTA (Reuters) – Indonesia's state energy company Pertamina reached a $3.1 billion financing deal with a number of export credit agencies and commercial banks to fund the upgrade of its Balikpapan refinery, the company said on Saturday.
The lenders include export credit agencies from South Korea, Italy and the United States, and 22 commercial banks, Pertamina said in a statement.
Pertamina will use the funds for the expansion of its Balikpapan oil refinery to a capacity of 360,000 barrels per day (bpd), from 260,000 bpd. The refinery would also be able to produce fuel with Euro V emission standards after the upgrade, the company said.
"With the improvements, Pertamina will be able to produce more environmentally friendly fuels and this certainly will support reaching Indonesia's net-zero emissions target," said Pertamina spokesperson Fadjar Djoko Santoso. Dunya News
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Indonesia Wants to Know Where the JETP Money Is
Jakarta. Indonesia says it has made the necessary preparations for the $20 billion climate financing Just Energy Transition Partnership (JETP), but the country is now wondering when the money will start to pour in.
The International Partners Group (IPG) at Bali’s G20 Summit last year launched the JETP to help Indonesia end its reliance on coal.
Co-led by the US and Japan, the IPG includes Canada, Denmark, the European Union (EU), France, Germany, Italy, Norway, and the UK. The IPG pledged to mobilize $10 billion of public money, while the other half comes from financial institutions that are part of the Glasgow Financial Alliance for Net Zero (Gfanz). The JETP funding, which is set to come in over a three-to-five-year period, encompasses grants, concessional loans, market-rate loans, guarantees, and private investment.
“Today we are chasing after the US’ group [IPG] and Gfanz, asking them ‘where the money is’,” Chief Investment Minister Luhut Binsar Pandjaitan said when commenting on the JETP program at the 2023 Indonesia Net Zero Summit in Jakarta on Saturday. Jakarta Globe
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Indonesia Mulls Diverting Palm Oil Exports to Africa Over EUDR
TEMPO.CO, Jakarta - With European nations implementing the European Union Deforestation-Free Regulations (EUDR), the government is thinking of gradually diverting Indonesia’s palm oil exports to Africa, stated Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan.
At a press conference on improving the governance of the national palm oil industry on Friday, June 23, 2023, he informed that the volume of palm oil exported from Indonesia to Europe could reach 3.3 million tons per year.
"I have conveyed to the European Parliament that we (the Indonesian government) are considering to gradually divert our palm oil exports to Africa in place of Europe… so that there will be no problem in the future," the minister said.
The European Union’s new policy requires all exporters to verify that their products have not been obtained through deforestation or from plantations built by clearing forest areas. Exporters would be fined if they violate the rule.
The products include palm oil and its derivatives, charcoal, cocoa, coffee, soybeans, beef, timber, rubber, paper, and leather. Tempo
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What opening of embassy in Indonesia means to Tanzania
IN promoting and strengthening its diplomatic relations with Indonesia, Tanzania has officially opened its Embassy in Jakarta.
Speaking at the opening ceremony of the Embassy on Wednesday, Minister for Foreign Affairs and East African Cooperation, Dr Stergomena Tax, said that the establishment of the embassy would serve as a platform for deepening cooperation, particularly in the economic sector, between the two nations.
“Close collaboration between Tanzania and Indonesia has been the norm, and we believe that the official opening of our embassy here will foster more cooperation between our two nations, especially in the economic sector,” said Dr Tax.
Moreover, Minister Tax highlighted the potential opportunities that a strong alliance with Indonesia, a country with significant economic strides, could provide Tanzania.
She focused on Tanzania’s ability to add value to its agricultural and mineral products, thus enhancing its competitiveness in international markets and promoting economic growth.
Moreover, Dr Tax thanked the government of Indonesia for the great cooperation it has been providing to the Embassy of Tanzania, Jakarta since the embassy was established in the country in 2022 until it was officially launched yesterday.
On the Indonesian side, Foreign Minister, Retno Marsudi underlined the strong and enduring bond between the two countries, dating back to the founding of both nations at the Bandung Conference in 1955. Daily NewsTZ
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Malaysia-UK research collaboration to advance palm oil industry – MPOC
The Malaysian Palm Oil Council (MPOC) is confident that collaboration between United Kingdom (UK) research institutions and Malaysian producers would bolster sustainability and drive industry advancements in the palm oil industry.
The move comes as the UK prepares to join the Comprehensive and Progressive Agreement for Transpacific Partnership (CPTPP) that will be finalised at the upcoming CPTPP Ministerial Meeting in Auckland, New Zealand, next month, presenting new trade opportunities and fostering closer ties between the two nations.
The MPOC said in its recent Market Highlights report that in recognising Malaysia’s position as a major global player in sustainable palm oil, UK research institutions should explore enhancing the industry’s sustainability practices and industry advancements.
“By pursuing partnerships with palm oil-producing countries like Malaysia, the UK aims to enhance traceability and transparency throughout the supply chain, thereby strengthening the overall sustainability standards of global palm oil production,” it said.
The UK has already made significant progress in sourcing sustainable palm and palm kernel oil, with the proportion of imports classified as “certified sustainable” increasing from 16 per cent in 2010 to an impressive 72 per cent in 2021.
“However, there is room for improvement, particularly in the areas of complex derivative supply chains. By collaborating with Malaysian producers, the UK seeks to overcome these challenges and ensure sustainability standards are met throughout the palm oil supply chain. The Malaysian Reserve
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June 24, 2023
Indonesia-Palm Oil Producers Told to Report How Much Land They Own
Jakarta. The government has urged palm oil producers to report how much land they own following cases of mismatched data and plantations illegally operating in forest areas.
The government’s task force on the palm oil industry governance on Friday reported that oil palm plantations nationwide spanned about 16.8 million hectares. About 10.4 million hectares are “private and national plantations”, while the rest belong to smallholders. Some 3.3 million hectares of these plantations, however, are within forest areas.
The task force discovered that many firms do not have the required permits for their plantations, including the cultivation rights documents. A company might even have differing permit documents.
“So we urge all companies to report to us their [palm oil] plantations and business permits,” Chief Investment Affairs Minister Luhut Binsar Pandjaitan told a press conference in Jakarta on Friday. Jakarta Globe
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Indonesia mulls diverting palm oil exports to Africa over EUDR
Jakarta (ANTARA) - With European nations implementing the European Union Deforestation-Free Regulations (EUDR), the government is thinking of gradually diverting Indonesia’s palm oil exports to Africa, Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, has said.
At a press conference on improving the governance of the national palm oil industry here on Friday, he informed that the volume of palm oil exported from Indonesia to Europe could reach 3.3 million tons per year.
"I have conveyed to the European Parliament that we (the Indonesian government) are considering to gradually divert our palm oil exports to Africa in place of Europe… so that there will be no problem in the future," the minister said.
The European Union’s new policy requires all exporters to verify that their products have not been obtained through deforestation or from plantations built by clearing forest areas. Exporters would be fined if they violate the rule. Antara News
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Indonesia to Reroute Palm Oil Export to Africa Following EUDR
Jakarta. Indonesia is mulling diverting its Europe-bound palm oil exports to Africa after the European Union (EU) launched the anti-deforestation law that is detrimental to the Southeast Asian country’s top commodity.
The EU Deforestation-Free Regulation (EUDR) has stressed out palm oil exporter Indonesia. This new regulation requires operators and traders to prove their products do not come from deforested lands. Commodities such as palm oil and its derivatives are subject to this policy. The EUDR also classifies countries whether they are at low, standard, or high risk of producing deforestation-linked products.
With the EU closing its doors, Indonesia intends to gradually reroute palm oil exports from Europe to Africa.
"I told the European Parliament about three days ago that we are thinking that if we export about 3.3 million [tons of palm oil] to the EU, perhaps we can gradually divert these exports to Africa," Chief Investment Affairs Minister Luhut Binsar Pandjaitan told a press briefing in Jakarta on Friday. Jakarta Globe
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Malaysian businesses, investors urged to gear up for opportunities in China
NANNING, China –– Malaysian businesses and investors must be prepared to compete for investment opportunities from or in China.
Malaysia’s Consul-General in Nanning, Ahmad Phadil Ismail, said that in view of China’s vast and open domestic market, Malaysia can explore many new markets based on its advantage in agricultural commodity production.
China reopened its international borders in January after almost three years of closure due to the Covid-19 pandemic, and the Malaysian business community must seize the resulting opportunities to explore new markets in the republic, he said.
“China has been Malaysia’s largest trading partner all this while. (But) with the emerging competition from Vietnam, Malaysia must work harder.
“This is just the competition within Asean and not yet taking into consideration competition from Europe, other developed and developing countries,” he told Bernama TV in Nanning recently.
Ahmad Phadil said Asean’s position, especially Malaysia’s, in the shifting world geopolitical landscape, should be viewed as an opportunity to attract investments. The Malaysian Reserve
Indonesia-Palm Oil Producers Told to Report How Much Land They Own
Jakarta. The government has urged palm oil producers to report how much land they own following cases of mismatched data and plantations illegally operating in forest areas.
The government’s task force on the palm oil industry governance on Friday reported that oil palm plantations nationwide spanned about 16.8 million hectares. About 10.4 million hectares are “private and national plantations”, while the rest belong to smallholders. Some 3.3 million hectares of these plantations, however, are within forest areas.
The task force discovered that many firms do not have the required permits for their plantations, including the cultivation rights documents. A company might even have differing permit documents.
“So we urge all companies to report to us their [palm oil] plantations and business permits,” Chief Investment Affairs Minister Luhut Binsar Pandjaitan told a press conference in Jakarta on Friday. Jakarta Globe
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Indonesia mulls diverting palm oil exports to Africa over EUDR
Jakarta (ANTARA) - With European nations implementing the European Union Deforestation-Free Regulations (EUDR), the government is thinking of gradually diverting Indonesia’s palm oil exports to Africa, Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, has said.
At a press conference on improving the governance of the national palm oil industry here on Friday, he informed that the volume of palm oil exported from Indonesia to Europe could reach 3.3 million tons per year.
"I have conveyed to the European Parliament that we (the Indonesian government) are considering to gradually divert our palm oil exports to Africa in place of Europe… so that there will be no problem in the future," the minister said.
The European Union’s new policy requires all exporters to verify that their products have not been obtained through deforestation or from plantations built by clearing forest areas. Exporters would be fined if they violate the rule. Antara News
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Indonesia to Reroute Palm Oil Export to Africa Following EUDR
Jakarta. Indonesia is mulling diverting its Europe-bound palm oil exports to Africa after the European Union (EU) launched the anti-deforestation law that is detrimental to the Southeast Asian country’s top commodity.
The EU Deforestation-Free Regulation (EUDR) has stressed out palm oil exporter Indonesia. This new regulation requires operators and traders to prove their products do not come from deforested lands. Commodities such as palm oil and its derivatives are subject to this policy. The EUDR also classifies countries whether they are at low, standard, or high risk of producing deforestation-linked products.
With the EU closing its doors, Indonesia intends to gradually reroute palm oil exports from Europe to Africa.
"I told the European Parliament about three days ago that we are thinking that if we export about 3.3 million [tons of palm oil] to the EU, perhaps we can gradually divert these exports to Africa," Chief Investment Affairs Minister Luhut Binsar Pandjaitan told a press briefing in Jakarta on Friday. Jakarta Globe
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Malaysian businesses, investors urged to gear up for opportunities in China
NANNING, China –– Malaysian businesses and investors must be prepared to compete for investment opportunities from or in China.
Malaysia’s Consul-General in Nanning, Ahmad Phadil Ismail, said that in view of China’s vast and open domestic market, Malaysia can explore many new markets based on its advantage in agricultural commodity production.
China reopened its international borders in January after almost three years of closure due to the Covid-19 pandemic, and the Malaysian business community must seize the resulting opportunities to explore new markets in the republic, he said.
“China has been Malaysia’s largest trading partner all this while. (But) with the emerging competition from Vietnam, Malaysia must work harder.
“This is just the competition within Asean and not yet taking into consideration competition from Europe, other developed and developing countries,” he told Bernama TV in Nanning recently.
Ahmad Phadil said Asean’s position, especially Malaysia’s, in the shifting world geopolitical landscape, should be viewed as an opportunity to attract investments. The Malaysian Reserve
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June 23, 2023
Malaysian palm oil industry set to tap into ASEAN market
KUALA LUMPUR: The Malaysian palm oil industry is poised to capitalise on the vast opportunities offered by the Philippines, Vietnam and Myanmar following a two-day trade and networking session hosted by the Malaysian Palm Oil Council (MPOC) this week.
The event on June 20-21, which brought together delegates from the three countries and Malaysian palm oil industry members, was aimed at fostering meaningful connections, exploring potential partnerships, and taking advantage of the market opportunities there.
MPOC chief executive officer Belvinder Sron said exports to the Asean region accounted for nine per cent of Malaysia’s total palm oil exports in 2022.
“The Philippines, Vietnam and Myanmar hold a significant market share of 80 per cent in the region, making their participation in this event crucial to its success,” she said in a statement today.
She noted that these countries witnessed a remarkable combined consumption of oils and fats, reaching about 4.5 million tonnes last year.
“Palm oil emerged as the most widely consumed oil, capturing over 60 per cent of the total oils and fats market share.
“It is noteworthy that almost all palm oil consumed in these countries is imported, presenting a tremendous opportunity for Malaysian palm oil companies,” she said. The Sun Daily
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India-Surge in edible oil imports cripple local units, tariff hike sought
Between November, 2022 and May 2023, import of edible oils rose by 18% in volume terms.
A sharp fall in the global prices of soyabean, palm and sunflower oils and lower Customs duties of edible oil have led to 18% increase in imports, prompting the domestic manufacturers to seek a policy correction.
Between November, 2022 and May 2023, import of edible oils rose by 18% in volume terms.
This has pulled down the mandi prices of mustard and soybean below the minimum support price (MSP) for the first time in the last two years, which could discourage farmers to take up oilseeds in the coming seasons, according to industry sources. A government official conversant with the trend noted the government’s plan to reduce the country’s import dependence on edible oils from the current level of 56% to 36% in the next three years is in serious jeopardy. Financial Express
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Andhra Pradesh Chief Minister virtually inaugurates ₹100-crore palm oil refinery in Eluru district
Set up by Godrej Agrovet Limited, the refinery will be accessible to nearly 17,000 palm oil farmers in Andhra Pradesh and Telangana, says Eluru district Collector
Chief Minister Y.S. Jagan Mohan Reddy on June 22 (Thursday) virtually inaugurated the ₹100-crore palm oil refinery set up by the Godrej Agrovet Limited at Chintapalli village of Chintalapudi mandal in Eluru district.
The project includes a 400-tonne capacity palm oil refinery and a 200-tonne capacity solvent extraction unit.
Addressing the media after inauguration of the refinery, district Collector V. Prasanna Venkatesh said the refinery would be accessible to nearly 17,000 palm oil farmers in Andhra Pradesh and Telangana.
“The refinery will offer at least 120 direct and nearly 8,000 indirect employment opportunities,” said Mr. Prasanna Venkatesh. The Hindu
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EU-backed green auditor cracks down on China island biofuel trade
LONDON, June 23 (Reuters) - An auditing company empowered by the European Union to verify sustainable fuel has suspended the certification of three Chinese biofuel exporters after an audit found the precise source of their waste products from Malaysia and Indonesia could not be verified.
Germany this month triggered a European Union investigation into a large volume of biofuels imports into Europe from China to assess whether the fuel meets EU sustainability criteria.
The Germany-based International Sustainability and Carbon Certification (ISCC), a company that verifies the sustainability of fuel, suspended the certification of two companies headquartered in the port of Yangpu on China's Hainan Island and another at Zhanjiang nearby on the mainland.
The month-long suspensions mean the companies cannot export to the EU and were detailed in audit reports posted to the ISCC's online database of tens of thousands of biofuel producers and traders worldwide. The suspensions have not previously been reported.
The companies the ISCC suspended were Hainan Hanpu Import and Export Trade, Hainan Bomi Import and Export Trading and Wuchuan Maosheng Bio-energy. The suspensions took effect in early May and June and last for a month. Wuchuan Maosheng Bio-energy's suspension finished at the end of May. Reuters
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Landmark greenwashing lawsuit against KLM to proceed to full court hearing
A landmark greenwashing lawsuit against leading airline KLM has been granted permission to proceed to a full hearing by a Dutch court, environmental law charity ClientEarth reported.
The lawsuit – the first of its kind to challenge airline industry greenwashing – claims that KLM’s climate advertisements and carbon offset marketing breached European Union (EU) consumer law standards by creating a false impression that its flights did not contribute to the worsening climate emergency, the 7 June report said.
The District Court of Amsterdam has granted permission for Dutch campaign groups Fossielvrij and Reclame Fossielvrij to bring the claim, following a hearing in April, ClientEarth wrote. The decision established – for the first time – that an environmental non-profit group could bring a greenwashing claim under the recently passed Dutch class action law.
The court’s decision came after KLM informed the judge that it had dropped its ‘Fly Responsibly’ advertisements, which were challenged by the lawsuit, the report said “Today’s ruling … confirms that climate organisations have a place in combating greenwashing. With the threat of this lawsuit, KLM stopped its problematic ‘Fly Responsibly’ campaign. OFI Magazine
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From Indonesia to Vietnam, El Nino fans fears of fires and drought
Returning climate pattern set to hit key crops as well as industrial sector
JAKARTA/BANGKOK/HO CHI MINH CITY -- Sweltering heat spreading through Southeast Asia in recent weeks heralds the return of El Nino, with governments across the region bracing to fight everything from water shortages to forest fires and clouds of choking haze as the weather pattern strengthens.
Soaring temperatures could threaten agricultural output in a region that is a key producer of palm oil, rice, coffee beans and other commodities, while pressure on supplies of water and power could hit the area's rapidly growing manufacturing industry.
"El Nino has arrived," Dwikorita Karnawati, head of Indonesian climate and meteorological agency BMKG, told reporters in Jakarta in early June. "The peak of El Nino ... is predicted to occur in September across nearly ... [all] regions of Indonesia." Nikkei Asia
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The New York Tropical Deforestation-Free Procurement Act Passes Assembly and Heads to Governor
ALBANY, N.Y. – The groundbreaking climate bill, The New York Tropical Deforestation-Free Procurement Act (S.4859/A.5682), passed by a bipartisan majority in the New York State Assembly today and will now head to the Governor.
Sponsored by Sen. Liz Krueger (D-28) and Asm. Kenneth Zebrowski (D-96), the legislation builds on New York’s climate and justice leadership and is based on the state’s decades-long success of implementing commonsense procurement reforms. The bill ensures that state and local government procurement does not fund climate destruction by ending state funding that drives tropical deforestation, tropical primary forest degradation and associated abuses of the rights of Indigenous Peoples and local tropical communities. The bill passed the State Senate in late April. Once signed, New York will be the first state in the country to end tropical forest-destroying procurement.
“Passing this legislation sends a message that New York will not contribute to the deforestation of tropical forests, a practice that greatly contributes to climate change and impacts a vast number of species. I am proud to have worked with my colleagues and advocates from around the world to pass this bill, and hope to see it signed into law,” said Assemblyman Ken Zebrowski. Friends of the Earth
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EU’s new law puts industry in spotlight on deforestation
Andy Coyne looks at the impact the EU’s new deforestation law will have on food supply chains.
The passing of a new EU law banning products linked to deforestation has been welcomed by those campaigning on sustainability and climate change issues but what impact will the move have on food manufacturers and their supply chains?
The EU’s legislative body – the European Parliament – adopted the new law in April. It means companies will only be allowed to sell products in the EU if the supplier of the underlying ingredients has issued a so-called due diligence statement confirming their commodities do not come from deforested land or have led to forest degradation since 31 December 2020.
In food, the new law covers beef, cocoa beans, soya beans and palm oil.
Large companies have 18 months to comply with the rules with smaller businesses getting an extra six months.
The introduction of such legislation raises a number of questions.
Firstly, is it necessary given sustainability certification already exists and many companies build deforestation compliance into their own ESG strategies? Just Food
Malaysian palm oil industry set to tap into ASEAN market
KUALA LUMPUR: The Malaysian palm oil industry is poised to capitalise on the vast opportunities offered by the Philippines, Vietnam and Myanmar following a two-day trade and networking session hosted by the Malaysian Palm Oil Council (MPOC) this week.
The event on June 20-21, which brought together delegates from the three countries and Malaysian palm oil industry members, was aimed at fostering meaningful connections, exploring potential partnerships, and taking advantage of the market opportunities there.
MPOC chief executive officer Belvinder Sron said exports to the Asean region accounted for nine per cent of Malaysia’s total palm oil exports in 2022.
“The Philippines, Vietnam and Myanmar hold a significant market share of 80 per cent in the region, making their participation in this event crucial to its success,” she said in a statement today.
She noted that these countries witnessed a remarkable combined consumption of oils and fats, reaching about 4.5 million tonnes last year.
“Palm oil emerged as the most widely consumed oil, capturing over 60 per cent of the total oils and fats market share.
“It is noteworthy that almost all palm oil consumed in these countries is imported, presenting a tremendous opportunity for Malaysian palm oil companies,” she said. The Sun Daily
---------
India-Surge in edible oil imports cripple local units, tariff hike sought
Between November, 2022 and May 2023, import of edible oils rose by 18% in volume terms.
A sharp fall in the global prices of soyabean, palm and sunflower oils and lower Customs duties of edible oil have led to 18% increase in imports, prompting the domestic manufacturers to seek a policy correction.
Between November, 2022 and May 2023, import of edible oils rose by 18% in volume terms.
This has pulled down the mandi prices of mustard and soybean below the minimum support price (MSP) for the first time in the last two years, which could discourage farmers to take up oilseeds in the coming seasons, according to industry sources. A government official conversant with the trend noted the government’s plan to reduce the country’s import dependence on edible oils from the current level of 56% to 36% in the next three years is in serious jeopardy. Financial Express
---------
Andhra Pradesh Chief Minister virtually inaugurates ₹100-crore palm oil refinery in Eluru district
Set up by Godrej Agrovet Limited, the refinery will be accessible to nearly 17,000 palm oil farmers in Andhra Pradesh and Telangana, says Eluru district Collector
Chief Minister Y.S. Jagan Mohan Reddy on June 22 (Thursday) virtually inaugurated the ₹100-crore palm oil refinery set up by the Godrej Agrovet Limited at Chintapalli village of Chintalapudi mandal in Eluru district.
The project includes a 400-tonne capacity palm oil refinery and a 200-tonne capacity solvent extraction unit.
Addressing the media after inauguration of the refinery, district Collector V. Prasanna Venkatesh said the refinery would be accessible to nearly 17,000 palm oil farmers in Andhra Pradesh and Telangana.
“The refinery will offer at least 120 direct and nearly 8,000 indirect employment opportunities,” said Mr. Prasanna Venkatesh. The Hindu
---------
EU-backed green auditor cracks down on China island biofuel trade
LONDON, June 23 (Reuters) - An auditing company empowered by the European Union to verify sustainable fuel has suspended the certification of three Chinese biofuel exporters after an audit found the precise source of their waste products from Malaysia and Indonesia could not be verified.
Germany this month triggered a European Union investigation into a large volume of biofuels imports into Europe from China to assess whether the fuel meets EU sustainability criteria.
The Germany-based International Sustainability and Carbon Certification (ISCC), a company that verifies the sustainability of fuel, suspended the certification of two companies headquartered in the port of Yangpu on China's Hainan Island and another at Zhanjiang nearby on the mainland.
The month-long suspensions mean the companies cannot export to the EU and were detailed in audit reports posted to the ISCC's online database of tens of thousands of biofuel producers and traders worldwide. The suspensions have not previously been reported.
The companies the ISCC suspended were Hainan Hanpu Import and Export Trade, Hainan Bomi Import and Export Trading and Wuchuan Maosheng Bio-energy. The suspensions took effect in early May and June and last for a month. Wuchuan Maosheng Bio-energy's suspension finished at the end of May. Reuters
---------
Landmark greenwashing lawsuit against KLM to proceed to full court hearing
A landmark greenwashing lawsuit against leading airline KLM has been granted permission to proceed to a full hearing by a Dutch court, environmental law charity ClientEarth reported.
The lawsuit – the first of its kind to challenge airline industry greenwashing – claims that KLM’s climate advertisements and carbon offset marketing breached European Union (EU) consumer law standards by creating a false impression that its flights did not contribute to the worsening climate emergency, the 7 June report said.
The District Court of Amsterdam has granted permission for Dutch campaign groups Fossielvrij and Reclame Fossielvrij to bring the claim, following a hearing in April, ClientEarth wrote. The decision established – for the first time – that an environmental non-profit group could bring a greenwashing claim under the recently passed Dutch class action law.
The court’s decision came after KLM informed the judge that it had dropped its ‘Fly Responsibly’ advertisements, which were challenged by the lawsuit, the report said “Today’s ruling … confirms that climate organisations have a place in combating greenwashing. With the threat of this lawsuit, KLM stopped its problematic ‘Fly Responsibly’ campaign. OFI Magazine
---------
From Indonesia to Vietnam, El Nino fans fears of fires and drought
Returning climate pattern set to hit key crops as well as industrial sector
JAKARTA/BANGKOK/HO CHI MINH CITY -- Sweltering heat spreading through Southeast Asia in recent weeks heralds the return of El Nino, with governments across the region bracing to fight everything from water shortages to forest fires and clouds of choking haze as the weather pattern strengthens.
Soaring temperatures could threaten agricultural output in a region that is a key producer of palm oil, rice, coffee beans and other commodities, while pressure on supplies of water and power could hit the area's rapidly growing manufacturing industry.
"El Nino has arrived," Dwikorita Karnawati, head of Indonesian climate and meteorological agency BMKG, told reporters in Jakarta in early June. "The peak of El Nino ... is predicted to occur in September across nearly ... [all] regions of Indonesia." Nikkei Asia
---------
The New York Tropical Deforestation-Free Procurement Act Passes Assembly and Heads to Governor
ALBANY, N.Y. – The groundbreaking climate bill, The New York Tropical Deforestation-Free Procurement Act (S.4859/A.5682), passed by a bipartisan majority in the New York State Assembly today and will now head to the Governor.
Sponsored by Sen. Liz Krueger (D-28) and Asm. Kenneth Zebrowski (D-96), the legislation builds on New York’s climate and justice leadership and is based on the state’s decades-long success of implementing commonsense procurement reforms. The bill ensures that state and local government procurement does not fund climate destruction by ending state funding that drives tropical deforestation, tropical primary forest degradation and associated abuses of the rights of Indigenous Peoples and local tropical communities. The bill passed the State Senate in late April. Once signed, New York will be the first state in the country to end tropical forest-destroying procurement.
“Passing this legislation sends a message that New York will not contribute to the deforestation of tropical forests, a practice that greatly contributes to climate change and impacts a vast number of species. I am proud to have worked with my colleagues and advocates from around the world to pass this bill, and hope to see it signed into law,” said Assemblyman Ken Zebrowski. Friends of the Earth
---------
EU’s new law puts industry in spotlight on deforestation
Andy Coyne looks at the impact the EU’s new deforestation law will have on food supply chains.
The passing of a new EU law banning products linked to deforestation has been welcomed by those campaigning on sustainability and climate change issues but what impact will the move have on food manufacturers and their supply chains?
The EU’s legislative body – the European Parliament – adopted the new law in April. It means companies will only be allowed to sell products in the EU if the supplier of the underlying ingredients has issued a so-called due diligence statement confirming their commodities do not come from deforested land or have led to forest degradation since 31 December 2020.
In food, the new law covers beef, cocoa beans, soya beans and palm oil.
Large companies have 18 months to comply with the rules with smaller businesses getting an extra six months.
The introduction of such legislation raises a number of questions.
Firstly, is it necessary given sustainability certification already exists and many companies build deforestation compliance into their own ESG strategies? Just Food
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June 22, 2023
El Nino raising risk of Southeast Asia haze crisis, worst for 5 years
The Singapore Institute of International Affairs assigned a rating of ‘red’ in its Haze Outlook 2023 released on Wednesday – that’s the highest
El Ninos usually result in less rainfall in Southeast Asia, and can exacerbate the spread of natural or man-made blazes used to clear land for growing
Singapore, Indonesia and Malaysia may face the most severe haze in at least five years due to the likelihood of a strong El Nino that will bring hotter and drier weather, according to a new report.
The Singapore Institute of International Affairs assigned a rating of “red” in its Haze Outlook 2023 released on Wednesday. That’s the highest of three colour-coded risk categories and the first time the red rating has been given since the independent think tank started producing the annual report five years ago.
“For the past three years skies across Asean have remained relatively haze-free”, Simon Tay, the institute’s chairman, said in the report. “However, there is a real risk in the year ahead that the situation will change, and for the worse”. SCMP
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Ghana-Benso Oil Palm Plantations thrives, pays 95% dividends among economic uncertainty in the country
Ghana’s Macro-Economic Environment
Inflation remained elevated throughout 2022, driven by a combination of demand and supply pressures.
Real GDP growth moderated to 3.6% in 2022, driven by the services and agriculture sector.
The banking sector performance moderated due to rising cost of credit and revaluation-driven balance sheet performance.
Global commodity prices, such as crude oil and gold, experienced volatility during the year.
The world market price of Crude Palm Oil (CPO) grew 20% in dollar terms, while Palm Kernel Oil (PKO) decreased 20%.
Financial and Operating Performance
Revenue growth of 59% YoY and profit after tax of 73.6% YoY.
Total Palm Fruits processed during the year 124,769 metric tons, 15% below prior year (2021).
The Company purchased 48,807 metric tons of Fresh Fruit Bunches at a total cost of GH¢53million from Smallholders and Out-grower farmers in surrounding communities.
Dividend
Recommendation of a final dividend of GH¢0.9435 per share, in addition to an interim dividend of GH¢1.1308.
Cumulatively accounting for 45% of profit after tax and a 95% increase over 2021. African Financials
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Nigeria-Ondo State government calls ‘Palm oil import, pure economic sabotage’
The Ondo State government has expressed its concern over the unrestricted importation of foreign palm oil into the Nigerian market, emphasizing that this practice will cause further harm to the palm oil sector and the economy.
Akin Olotu, the Senior Special Assistant to Governor Rotimi Akeredolu on Agribusiness, strongly criticized the importation of palm oil into the country, describing it as a clear case of economic sabotage. Olotu appealed to President Bola Ahmed Tinubu to take immediate action to halt any further importation of palm oil into Nigeria. He also stressed the importance of investigating the cartel responsible for these exports in order to prevent economic sabotage from escalating.
Olotu stated, “I want to condemn the importation of palm oil and the staggering increase in the importation of oil palm into the country in the last four months. It is purely economic sabotage, and I’m appealing to Mr Governor and the President to shed light on this issue.” Tribune OnlineNG
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US soybean crop conditions decline while biofuel blending volumes raise market concerns
The latest US Crop Progress Report highlighted a further decline in crop conditions in the week ending 18th June. Dry weather across key growing states has negatively impacted the crop, with 54% of the crop now rated to be in good-to-excellent condition, a 5-percentage point (p.p) decline on the week. Also, 12% of the crop was rated to be in poor-to-very poor condition, a 3 p.p and 6 p.p increase on the week and year, respectively.
In addition to recent dryness in the US, the US Environmental Protection Agency’s (EPA) 2023-2025 biodiesel blending mandate (final ruling expected later today, 21st June) has recently contributed to the upward momentum in soybean and soybean oil prices. At the time of writing, Mintec has received market information suggesting that the EPA plans to finalise biofuel blending volumes at higher levels than initially proposed. These volumes are expected to be 20.94 billion gallons in 2023, 21.54 billion gallons in 2024, and 22.33 billion gallons in 2025, compared to the previously announced proposal of 20.82 billion in 2023, 21.87 billion in 2024, and 22.68 billion in 2025. If these numbers hold in the official release, market players consider this to be a very bearish outlook. The market has experienced a significant price increase based on the expectation that this release would greatly curtail the amount of soy oil available in the marketplace, leading to a greater reliance on soy and potentially other vegetable oils as substitutes. Mintec Global
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Palm oil falls for second day on US biofuel mandate
KUALA LUMPUR: Malaysian palm oil futures fell for a second day on Wednesday following news of a US plan to implement a smaller biofuel mandate than it had initially proposed.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange slid 111 ringgit, or 2.98%, to 3,616 ringgit ($778.81) per metric ton.
The Biden administration plans to increase the amount of biofuel that oil refiners must blend into the nation’s fuel mix over the next three years, but the plan includes lower mandates for corn-based ethanol than it had initially proposed, two sources familiar with the matter told Reuters.
Malaysia has maintained its July export tax for crude palm oil at 8% and lowered its reference price, a circular on the Malaysian Palm Oil Board website showed. BreRecorder
El Nino raising risk of Southeast Asia haze crisis, worst for 5 years
The Singapore Institute of International Affairs assigned a rating of ‘red’ in its Haze Outlook 2023 released on Wednesday – that’s the highest
El Ninos usually result in less rainfall in Southeast Asia, and can exacerbate the spread of natural or man-made blazes used to clear land for growing
Singapore, Indonesia and Malaysia may face the most severe haze in at least five years due to the likelihood of a strong El Nino that will bring hotter and drier weather, according to a new report.
The Singapore Institute of International Affairs assigned a rating of “red” in its Haze Outlook 2023 released on Wednesday. That’s the highest of three colour-coded risk categories and the first time the red rating has been given since the independent think tank started producing the annual report five years ago.
“For the past three years skies across Asean have remained relatively haze-free”, Simon Tay, the institute’s chairman, said in the report. “However, there is a real risk in the year ahead that the situation will change, and for the worse”. SCMP
---------
Ghana-Benso Oil Palm Plantations thrives, pays 95% dividends among economic uncertainty in the country
Ghana’s Macro-Economic Environment
Inflation remained elevated throughout 2022, driven by a combination of demand and supply pressures.
Real GDP growth moderated to 3.6% in 2022, driven by the services and agriculture sector.
The banking sector performance moderated due to rising cost of credit and revaluation-driven balance sheet performance.
Global commodity prices, such as crude oil and gold, experienced volatility during the year.
The world market price of Crude Palm Oil (CPO) grew 20% in dollar terms, while Palm Kernel Oil (PKO) decreased 20%.
Financial and Operating Performance
Revenue growth of 59% YoY and profit after tax of 73.6% YoY.
Total Palm Fruits processed during the year 124,769 metric tons, 15% below prior year (2021).
The Company purchased 48,807 metric tons of Fresh Fruit Bunches at a total cost of GH¢53million from Smallholders and Out-grower farmers in surrounding communities.
Dividend
Recommendation of a final dividend of GH¢0.9435 per share, in addition to an interim dividend of GH¢1.1308.
Cumulatively accounting for 45% of profit after tax and a 95% increase over 2021. African Financials
---------
Nigeria-Ondo State government calls ‘Palm oil import, pure economic sabotage’
The Ondo State government has expressed its concern over the unrestricted importation of foreign palm oil into the Nigerian market, emphasizing that this practice will cause further harm to the palm oil sector and the economy.
Akin Olotu, the Senior Special Assistant to Governor Rotimi Akeredolu on Agribusiness, strongly criticized the importation of palm oil into the country, describing it as a clear case of economic sabotage. Olotu appealed to President Bola Ahmed Tinubu to take immediate action to halt any further importation of palm oil into Nigeria. He also stressed the importance of investigating the cartel responsible for these exports in order to prevent economic sabotage from escalating.
Olotu stated, “I want to condemn the importation of palm oil and the staggering increase in the importation of oil palm into the country in the last four months. It is purely economic sabotage, and I’m appealing to Mr Governor and the President to shed light on this issue.” Tribune OnlineNG
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US soybean crop conditions decline while biofuel blending volumes raise market concerns
The latest US Crop Progress Report highlighted a further decline in crop conditions in the week ending 18th June. Dry weather across key growing states has negatively impacted the crop, with 54% of the crop now rated to be in good-to-excellent condition, a 5-percentage point (p.p) decline on the week. Also, 12% of the crop was rated to be in poor-to-very poor condition, a 3 p.p and 6 p.p increase on the week and year, respectively.
In addition to recent dryness in the US, the US Environmental Protection Agency’s (EPA) 2023-2025 biodiesel blending mandate (final ruling expected later today, 21st June) has recently contributed to the upward momentum in soybean and soybean oil prices. At the time of writing, Mintec has received market information suggesting that the EPA plans to finalise biofuel blending volumes at higher levels than initially proposed. These volumes are expected to be 20.94 billion gallons in 2023, 21.54 billion gallons in 2024, and 22.33 billion gallons in 2025, compared to the previously announced proposal of 20.82 billion in 2023, 21.87 billion in 2024, and 22.68 billion in 2025. If these numbers hold in the official release, market players consider this to be a very bearish outlook. The market has experienced a significant price increase based on the expectation that this release would greatly curtail the amount of soy oil available in the marketplace, leading to a greater reliance on soy and potentially other vegetable oils as substitutes. Mintec Global
---------
Palm oil falls for second day on US biofuel mandate
KUALA LUMPUR: Malaysian palm oil futures fell for a second day on Wednesday following news of a US plan to implement a smaller biofuel mandate than it had initially proposed.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange slid 111 ringgit, or 2.98%, to 3,616 ringgit ($778.81) per metric ton.
The Biden administration plans to increase the amount of biofuel that oil refiners must blend into the nation’s fuel mix over the next three years, but the plan includes lower mandates for corn-based ethanol than it had initially proposed, two sources familiar with the matter told Reuters.
Malaysia has maintained its July export tax for crude palm oil at 8% and lowered its reference price, a circular on the Malaysian Palm Oil Board website showed. BreRecorder
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June 21, 2023
Liberia: Innovative Approach to Sustainable Development Policy and Investment for Public, Private Sectors
Nairobi — Oil palm has brought significant benefits and prosperity to Liberia. The export of crude palm oil is a major source of foreign exchange earnings for the government. The palm oil crop covers more than 1 million hectares, hundreds of thousands are employed in the palm oil sector, and at least 21 percent of the farming households produce palm oil.
Opportunities for the country's palm oil and other palm products in the international markets are considerable--creating a temptation to prioritize development over environmental concerns.
In 2020, policymakers in the Inter-Ministerial Commission on Palm Oil Concessions in Liberia faced a significant challenge: developing a policy path that pursued quick short-term profits and faced long-term negative consequences to the environment, lives, and livelihoods--or a beneficial approach for people and planet.
Forests Belong to Humanity
"When decisions are too short-term, narrow, and short-sighted, we do not take into account the long-term impact of our action. We need to recognize that some goods are common goods or public goods, such as forests. They do not belong to one person or one company; they belong to humanity as a whole," says Francisco Alpizar, Wageningen University and Research.
This was the case for Liberia's palm oil sector, whose key stakeholders include government, the private sector, NGOs, business associations, smallholder associations, and households that directly or indirectly rely on it as their lifeline.
"From an economic perspective, the prices of goods and commodities should reflect the true cost to societies, not just the immediate cost of producing them but also the environmental impact the production of those goods and services carries for societies," Alpizar says.
Targeted Analysis Scenario Benefits All
As they developed the National Oil Palm Strategy and Action Plan (NOPSAP) facilitated by the Global Environment Facility-funded Good Growth Partnership, policymakers in Liberia decided to use the Targeted Scenario Analysis (TSA) to design a mutually beneficial policy path for communities, sectoral government agencies, and palm oil concessionaires. All Africa
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EU seeks to conclude trade negotiation with Indonesia before 2024 elections
Seeking to avoid the fiasco of finalizing negotiations during next year’s elections in Indonesia, the European Union wants to conclude trade negotiations by the end of this year, while its more controversial deforestation policy, which could hammer Indonesia’s palm oil industry, continues to cast a heavy pall in Jakarta. Significant progress on the long-awaited Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA) has been reached, but it is paramount that the EU be flexible on some disputed issues, including its climate stance, Indonesia’s top officials said. The Jakarta Post
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Malaysia-Sabah to come up with policy on oil palm biomass
KOTA KINABALU: Sabah government will introduce its own policy to regulate oil palm biomass, said Sabah Industrial Development and Entrepreneurship Minister Phoong Jin Zhe.
"The creation of the policy is important for the long-term development of Sabah's biomass industry while also contributing towards a sustainable socio-economic growth of Sabah.
"This is especially true in terms of income generation, increased investment value and the creation of decent job opportunities," said Phoong in a statement.
Phoong said in 2021, Sabah was in the position to generate approximately 45 million metric tonnes of oil palm biomass.
"These include empty palm bunches, mesocarp fibre, palm oil kernels, palm oil effluent, palm oil stems and palm fronds. This shows the immense potential of down-streaming the biomass industry in Sabah.
"Therefore, the Sabah government has principally agreed to establish our very own Biomass Policy to regulate the supply and downstream of the palm oil biomass industry.
"The Sabah Cabinet has also agreed to utilise POIC Lahad Datu as the platform to spearhead the implementation of this policy," he said.
Based on data, Sabah is the largest palm oil-producing state in Malaysia, with a total planted area exceeding 1.5 million hectares which accounts for 27 per cent of Malaysia's total palm oil plantation area of 5.7 million hectares. New Straits Times
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Liberia: Innovative Approach to Sustainable Development Policy and Investment for Public, Private Sectors
Nairobi — Oil palm has brought significant benefits and prosperity to Liberia. The export of crude palm oil is a major source of foreign exchange earnings for the government. The palm oil crop covers more than 1 million hectares, hundreds of thousands are employed in the palm oil sector, and at least 21 percent of the farming households produce palm oil.
Opportunities for the country's palm oil and other palm products in the international markets are considerable--creating a temptation to prioritize development over environmental concerns.
In 2020, policymakers in the Inter-Ministerial Commission on Palm Oil Concessions in Liberia faced a significant challenge: developing a policy path that pursued quick short-term profits and faced long-term negative consequences to the environment, lives, and livelihoods--or a beneficial approach for people and planet.
Forests Belong to Humanity
"When decisions are too short-term, narrow, and short-sighted, we do not take into account the long-term impact of our action. We need to recognize that some goods are common goods or public goods, such as forests. They do not belong to one person or one company; they belong to humanity as a whole," says Francisco Alpizar, Wageningen University and Research.
This was the case for Liberia's palm oil sector, whose key stakeholders include government, the private sector, NGOs, business associations, smallholder associations, and households that directly or indirectly rely on it as their lifeline.
"From an economic perspective, the prices of goods and commodities should reflect the true cost to societies, not just the immediate cost of producing them but also the environmental impact the production of those goods and services carries for societies," Alpizar says.
Targeted Analysis Scenario Benefits All
As they developed the National Oil Palm Strategy and Action Plan (NOPSAP) facilitated by the Global Environment Facility-funded Good Growth Partnership, policymakers in Liberia decided to use the Targeted Scenario Analysis (TSA) to design a mutually beneficial policy path for communities, sectoral government agencies, and palm oil concessionaires. All Africa
----------
EU seeks to conclude trade negotiation with Indonesia before 2024 elections
Seeking to avoid the fiasco of finalizing negotiations during next year’s elections in Indonesia, the European Union wants to conclude trade negotiations by the end of this year, while its more controversial deforestation policy, which could hammer Indonesia’s palm oil industry, continues to cast a heavy pall in Jakarta. Significant progress on the long-awaited Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA) has been reached, but it is paramount that the EU be flexible on some disputed issues, including its climate stance, Indonesia’s top officials said. The Jakarta Post
---------
Malaysia-Sabah to come up with policy on oil palm biomass
KOTA KINABALU: Sabah government will introduce its own policy to regulate oil palm biomass, said Sabah Industrial Development and Entrepreneurship Minister Phoong Jin Zhe.
"The creation of the policy is important for the long-term development of Sabah's biomass industry while also contributing towards a sustainable socio-economic growth of Sabah.
"This is especially true in terms of income generation, increased investment value and the creation of decent job opportunities," said Phoong in a statement.
Phoong said in 2021, Sabah was in the position to generate approximately 45 million metric tonnes of oil palm biomass.
"These include empty palm bunches, mesocarp fibre, palm oil kernels, palm oil effluent, palm oil stems and palm fronds. This shows the immense potential of down-streaming the biomass industry in Sabah.
"Therefore, the Sabah government has principally agreed to establish our very own Biomass Policy to regulate the supply and downstream of the palm oil biomass industry.
"The Sabah Cabinet has also agreed to utilise POIC Lahad Datu as the platform to spearhead the implementation of this policy," he said.
Based on data, Sabah is the largest palm oil-producing state in Malaysia, with a total planted area exceeding 1.5 million hectares which accounts for 27 per cent of Malaysia's total palm oil plantation area of 5.7 million hectares. New Straits Times
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June 20, 2023
‘No palm oil’ labels are illegal, says Malaysian Palm Oil Council
The Malaysian Palm Oil Council reminds retailers that enforcement of the law banning such slogans on products has come into full force.
KUALA LUMPUR: The Malaysian Palm Oil Council (MPOC) has “strongly” urged retailers to remove all products and advertising materials displayed and sold that bear discriminatory logos against palm oil from their premises.
Failure to do so could land them with a RM250,000 fine or jail time not exceeding five years, MPOC said in a statement today. FMT
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Malaysia-Products, ads with ‘no palm oil’ labels violate law, says council
THE Malaysian Palm Oil Council (MPOC) has strongly urged retailers to remove all products and advertising materials that bear discriminatory logos against palm oil.
Those who do not comply could face a hefty RM250,000 fine or jail time not exceeding five years, it said in a statement today.
It said section 69 of the Trade Description Act 2011 prohibits anyone in the course of any business or trade, or in any advertisement, to use any statement, expression, or indication that discriminates against or boycotts palm oil products. The regulations came into effect in March last year and will now be fully enforced. The Malaysian Insight
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Remove ‘No palm oil’ labels, or face hefty penalty, MPOC tells retailers
KUALA LUMPUR (June 19): The Malaysian Palm Oil Council (MPOC) strongly urges retailers to remove all products and advertising materials displayed and sold that bear any discriminatory logos against palm oil, as it is against Malaysian law.
Retailers who fail to comply will have to face a hefty fine of RM250,000 or jail time not exceeding five years, the council said in a statement on Monday (June 19).
MPOC added the regulations under Section 69 of the Trade Description Act 2011 [Act 730] conspicuously prohibit any person in the course of any business or trade, or in any advertisement, to use any statement, expression, or indication that discriminates against or boycotts any oil palm products or palm oil goods. The Edge Markets
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Malaysia-Palm oil industry players urged to act together to improve workers’ welfare
KUCHING (June 19): Concerted efforts in improving employee welfare are needed from all palm oil industry players to ensure the sustainability of the industry, said Deputy Prime Minister Dato Sri Fadillah Yusof.
Fadillah, who is also Plantation and Commodities Minister, said although the industry now shifts towards automation and mechanisation, developing its human capital still plays a fundamental role in strengthening its position in the whole supply-chain process.
He said without qualified talents, the industry would not be able to anticipate, especially when addressing the emerging challenges.
“We need industry players, all parties involved in this process must work together, to promote and implement positive and responsible business practices. The Borneo Post
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Nestle Malaysia : Nestlé Malaysia Completes 1 Million Trees Planted under Project RELeaf
Nestlé's reforestation initiative set to accelerate via TDM partnership
TERENGGANU, June 20, 2023 - Nestlé Malaysia marked a significant milestone in its Project RELeaf reforestation programme by completing the planting of the first of its 3 million tree ambition. In conjunction with World Environment Day, the achievement was commemorated with a nationwide tree planting event, which also formalised the collaboration with TDM Plantation (TDMP) as its newest planting partner.
As part of the partnership, TDMP has committed to contribute 514 hectares of land within its estates to enable Nestlé Malaysia to plant further 350,000 trees. This will further advance Nestlé's Project RELeaf goal of planting three million trees across Malaysia to restore riparian and forest ecosystems and protect wildlife as well as critical water supplies. Nestlé Malaysia has achieved positive progress in its reforestation programmes over the years, driving strong collaboration with multiple stakeholders to expand its efforts, including with ongoing partners such as Sime Darby Plantation Berhad (SDP). Market Screener
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EU rep urges Asian trading partners to avoid ‘megaphone diplomacy’ over deforestation law, pledges continuous support
The European Union wants to ‘sit at the table’ with Malaysia and Indonesia and understand the realities of the commodities supply chain in Asia, says Astrid Schomaker, who sits in the directorate-general for environment at the European Commission.
The European Union has been “as transparent as it possibly can be” in the lead-up to adopting a law to fight global deforestation, and has been actively engaging producer countries via a stakeholder platform since 2019.
The bloc will continue to keep its listening channels open, and support its Asian trading partners in enabling conditions for deforestation-free production, said Astrid Schomaker, who leads global sustainable development at the European Commission’s directorate-general for environment.
Schomaker’s comments come on the back of fierce criticism, led by Indonesia and Malaysia, of the EU deforestation law that entered into force this month. The legislation, which will allow companies about 18 months to get up to speed with new standards, has triggered the ire of the two major Asian palm oil producers, as it is seen as a deliberate act by Europe to block market access for their commodity exports. Eco Business
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Increasing Demand for Biodiesel to Replace Traditional Fossil Fuels in Power Generation is Projected to Bring an Extensive Growth in the Market
SkyQuest projects that the biodiesel market will attain a value of USD 64.27 billion by 2030, with a CAGR of 5.25% over the forecast period (2023-2030). The market presents opportunities for new players due to the demand-supply gap caused by insufficient production capacity and a wide scope for research and development in feedstock selection for product manufacturing. In addition, the market is driven by the increasing demand for environmentally friendly fuels that ensure complete combustion and can reduce Greenhouse Gas (GHG) emissions.
Westford, USA, June 19, 2023 (GLOBE NEWSWIRE) -- According to SkyQuest, the high compatibility of biodiesel with existing diesel engines is driving the demand. In addition, the increasing population and growth in the number of vehicles and industries using biodiesel are expected to further boost the market demand. Globe Newswire
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‘No palm oil’ labels are illegal, says Malaysian Palm Oil Council
The Malaysian Palm Oil Council reminds retailers that enforcement of the law banning such slogans on products has come into full force.
KUALA LUMPUR: The Malaysian Palm Oil Council (MPOC) has “strongly” urged retailers to remove all products and advertising materials displayed and sold that bear discriminatory logos against palm oil from their premises.
Failure to do so could land them with a RM250,000 fine or jail time not exceeding five years, MPOC said in a statement today. FMT
----------
Malaysia-Products, ads with ‘no palm oil’ labels violate law, says council
THE Malaysian Palm Oil Council (MPOC) has strongly urged retailers to remove all products and advertising materials that bear discriminatory logos against palm oil.
Those who do not comply could face a hefty RM250,000 fine or jail time not exceeding five years, it said in a statement today.
It said section 69 of the Trade Description Act 2011 prohibits anyone in the course of any business or trade, or in any advertisement, to use any statement, expression, or indication that discriminates against or boycotts palm oil products. The regulations came into effect in March last year and will now be fully enforced. The Malaysian Insight
----------
Remove ‘No palm oil’ labels, or face hefty penalty, MPOC tells retailers
KUALA LUMPUR (June 19): The Malaysian Palm Oil Council (MPOC) strongly urges retailers to remove all products and advertising materials displayed and sold that bear any discriminatory logos against palm oil, as it is against Malaysian law.
Retailers who fail to comply will have to face a hefty fine of RM250,000 or jail time not exceeding five years, the council said in a statement on Monday (June 19).
MPOC added the regulations under Section 69 of the Trade Description Act 2011 [Act 730] conspicuously prohibit any person in the course of any business or trade, or in any advertisement, to use any statement, expression, or indication that discriminates against or boycotts any oil palm products or palm oil goods. The Edge Markets
---------
Malaysia-Palm oil industry players urged to act together to improve workers’ welfare
KUCHING (June 19): Concerted efforts in improving employee welfare are needed from all palm oil industry players to ensure the sustainability of the industry, said Deputy Prime Minister Dato Sri Fadillah Yusof.
Fadillah, who is also Plantation and Commodities Minister, said although the industry now shifts towards automation and mechanisation, developing its human capital still plays a fundamental role in strengthening its position in the whole supply-chain process.
He said without qualified talents, the industry would not be able to anticipate, especially when addressing the emerging challenges.
“We need industry players, all parties involved in this process must work together, to promote and implement positive and responsible business practices. The Borneo Post
----------
Nestle Malaysia : Nestlé Malaysia Completes 1 Million Trees Planted under Project RELeaf
Nestlé's reforestation initiative set to accelerate via TDM partnership
TERENGGANU, June 20, 2023 - Nestlé Malaysia marked a significant milestone in its Project RELeaf reforestation programme by completing the planting of the first of its 3 million tree ambition. In conjunction with World Environment Day, the achievement was commemorated with a nationwide tree planting event, which also formalised the collaboration with TDM Plantation (TDMP) as its newest planting partner.
As part of the partnership, TDMP has committed to contribute 514 hectares of land within its estates to enable Nestlé Malaysia to plant further 350,000 trees. This will further advance Nestlé's Project RELeaf goal of planting three million trees across Malaysia to restore riparian and forest ecosystems and protect wildlife as well as critical water supplies. Nestlé Malaysia has achieved positive progress in its reforestation programmes over the years, driving strong collaboration with multiple stakeholders to expand its efforts, including with ongoing partners such as Sime Darby Plantation Berhad (SDP). Market Screener
---------
EU rep urges Asian trading partners to avoid ‘megaphone diplomacy’ over deforestation law, pledges continuous support
The European Union wants to ‘sit at the table’ with Malaysia and Indonesia and understand the realities of the commodities supply chain in Asia, says Astrid Schomaker, who sits in the directorate-general for environment at the European Commission.
The European Union has been “as transparent as it possibly can be” in the lead-up to adopting a law to fight global deforestation, and has been actively engaging producer countries via a stakeholder platform since 2019.
The bloc will continue to keep its listening channels open, and support its Asian trading partners in enabling conditions for deforestation-free production, said Astrid Schomaker, who leads global sustainable development at the European Commission’s directorate-general for environment.
Schomaker’s comments come on the back of fierce criticism, led by Indonesia and Malaysia, of the EU deforestation law that entered into force this month. The legislation, which will allow companies about 18 months to get up to speed with new standards, has triggered the ire of the two major Asian palm oil producers, as it is seen as a deliberate act by Europe to block market access for their commodity exports. Eco Business
----------
Increasing Demand for Biodiesel to Replace Traditional Fossil Fuels in Power Generation is Projected to Bring an Extensive Growth in the Market
SkyQuest projects that the biodiesel market will attain a value of USD 64.27 billion by 2030, with a CAGR of 5.25% over the forecast period (2023-2030). The market presents opportunities for new players due to the demand-supply gap caused by insufficient production capacity and a wide scope for research and development in feedstock selection for product manufacturing. In addition, the market is driven by the increasing demand for environmentally friendly fuels that ensure complete combustion and can reduce Greenhouse Gas (GHG) emissions.
Westford, USA, June 19, 2023 (GLOBE NEWSWIRE) -- According to SkyQuest, the high compatibility of biodiesel with existing diesel engines is driving the demand. In addition, the increasing population and growth in the number of vehicles and industries using biodiesel are expected to further boost the market demand. Globe Newswire
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June 19, 2023
Unlocking the potential of Indonesia-EU CEPA
As a member of the European Parliament, I have fought tirelessly over the past years to embed sustainable development principles in EU Trade Partnerships. It is my firm belief that such agreements will bring about numerous benefits for both partners. This is also of vital importance to me for the Indonesia-EU Comprehensive Economic Partnership Agreement (I-EU CEPA). The partnership between Indonesia and the European Union should enable us to deepen our relations. Since 2016, negotiations for the I-EU CEPA have been underway, signaling a significant step forward in enhancing economic relations between our nations. Throughout this process, I have been impressed by the dedication and perseverance displayed by the negotiation teams from both the EU and Indonesia. Together, they have worked diligently to overcome challenges and forge a stronger bond between our nations. This collaboration is vital for several reasons, which I will outline below. Bernd Lange/ Jakarta Post
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India brews its own carbon tax on imports to retaliate EU levy: Reports
Several people cited above, both of whom spoke on condition of anonymity, said the finance and commerce ministries are discussing a mechanism to measure carbon content in imported products from Europe.
NEW DELHI : India is preparing the groundwork for its own carbon border tax to strike back against a similar move by the European Union (EU), two people aware of the discussions in the government said. New Delhi is peeved by the EU’s move to link the environment with trade, though there were no such considerations while Europe industrialized.
The ministries of finance and commerce are discussing a mechanism to measure carbon content in imported products from Europe, the report said.
"We are working out the contours of how a carbon tax will work. Retaliation can be in two ways. One is to do something similar, for which we need to measure the carbon content in imports. The second option is to retaliate on something else, but that option is not being looked into. The first option requires a lot of work, and we are doing the homework," one of the sources told the daily, refusing to be identified. LiveMint
---------
Malaysia-MPOC warns retailers to remove all products and advertising materials that contain "No Palm Oil" as regulations become enforceable
KUALA LUMPUR, June 19 — The Malaysian Palm Oil Council (MPOC) has “strongly” urged retailers “to remove all products and advertising materials displayed and sold that bear any discriminatory logos against palm oil from their premises.”
Failing to do so, they could face a hefty fine of RM250,000 or jail time not exceeding five years, MPOC said in a statement today.
It said the regulations under Section 69 of the Trade Description Act 2011 prohibit any person in the course of any business or trade, or in any advertisement, to use any statement, expression, or indication that discriminates against or boycotts palm oil products. The regulations came into effect in March 2022 and after a year of grace period, its enforcement has now come into full force.
“Retail outlets that display and sell products labelled as ‘No Palm Oil’ (NPO) will face penalties if found guilty by enforcement officers of the Ministry of Domestic Trade and Cost of Living (KPDN).
“In a survey conducted by MPOC, it was found that 80 outlets in the Klang Valley region sell these products, with a concentration in high-end areas of the region.
“Letters have been sent to the eight holding companies of the 80 outlets to draw their attention and urge them to take immediate action to comply with the regulations,” it said.
“The NPO label may appear in many other claims such as ‘Palm Oil Free’, ‘Without Palm Oil’, ‘No Palm Fat’, ‘Never Palm Oil’, and others, in English or in foreign languages,” it noted. As found in the same survey, it may also appear as distinct logos, depicting orang-utans or putting a slash or a cross mark across a picture of oil palm. Malay Mail
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Leaked information on RED3 shows palm oil producing countries need to fight ILUC theory
Online media Contexte leaked a copy of the RED3 text reflecting on the political agreement found at the end of March 2023. This is not the final version: as highlighted by Brussels sources, the wording must be clarified in many sentences during the final reviews by the EU legal staff before the final vote at the Parliament in September 2023.
Here are the main takeaways of our analysis focused on the transport sector. Note that the comments are made on the current version, which can differ from the final one to be voted in Q3 2023.
• The most crucial point to clarify was the wording of the new article 25 defining 2030 transport targets: 29% e.c OR 14.5% GHG reduction. In the current version of the wording, Member States (MS) will have to meet either one or the other.
• Advanced sub-target for advanced (9A) biofuels AND Renewable Fuels of Non Biological Origin (RFNBOs): 1% e.c in 2025 and 5.5% e.c (incl. min. 1% RFNBO) in 2030.
• The targets are expressed after Double Counting ( DC). Consequently, the 2030 target for 9A biofuels was increased effectively from 3.5% e.c (RED2) to 4.5% e.c (RED3).
• The text says that Member States (MS) is “encouraged” to set differentiated targets for 9A biofuels and RFNBOs to reach the 2030 target.
• MS with Ports must ensure a 1.2% e.c after DC share of RFNBOs in the total amount of energy supplied to the maritime sector.
• RFNBOS (incl. the most important green hydrogen) used in the production of fossil fuels (i.e at refineries) can account for the main advanced 2030 targets. In the case of renewable fuels, it can either be considered through the final product or separately if not included in the renewable fuel GHG calculation.
• About the eligibility of renewable electricity (RE) used in transport, RED3 adds that MS “may include private recharging points in this mechanism “ when proof exists that renewable electricity was “provided solely to electric vehicles”.
• The RED2 rule according to which an MS can decrease its overall target (either energy or GHG) in the case that its crop share stands below 7% remains valid in RED3 (i.e: if an MS relies only on 2% e.c crop, it can respect RED3 target with 27% e.c renewable).
• RED3 commands that the Commission, by September 1, 2023, review high ILUC criteria through its delegated act (DA) (which currently defines only palm as high ILUC, but could later this year include soy depending on the Commission – highly political - choices).
• The 9B cap at 1.7% e.c physical remains as in RED2. So does the MS option to ask for an exception to the Commission and potentially significantly increase this level.
• The RED3 novelty in this regard is that the Commission is entitled to raise this cap through the publication of a DA. However, a clarification in the wording is needed here.
• All multiples (9A-9B *2, RE to road *4, RE to rail *1.5, maritime/aviation *1.2) of RED2 remain the same in RED3. The only noticeable change is that RFNBOs used in aviation/maritime will enjoy a new 1.5 multiple (on top of their *2 linked to waste feedstock).
• Importantly, RED3 includes the renewable fuels supplied to the international marine bunkers at the denominator of the calculation of the final consumption of energy from renewable energy in the transport sector.
• The RED3 Directive also contains small adjustments of the FQD, which Annex II is amended so that in the standard EN 14078, the maximum Fame content is increased from 7% to 10%.
• The wording about the transposition deadline of RED3 is especially unclear, mentioning the usual 18 months AND the deadline of July 1, 2024: this incoherency must be sorted out by legal staff by the time of the final vote.
Source: Square Commodities
Unlocking the potential of Indonesia-EU CEPA
As a member of the European Parliament, I have fought tirelessly over the past years to embed sustainable development principles in EU Trade Partnerships. It is my firm belief that such agreements will bring about numerous benefits for both partners. This is also of vital importance to me for the Indonesia-EU Comprehensive Economic Partnership Agreement (I-EU CEPA). The partnership between Indonesia and the European Union should enable us to deepen our relations. Since 2016, negotiations for the I-EU CEPA have been underway, signaling a significant step forward in enhancing economic relations between our nations. Throughout this process, I have been impressed by the dedication and perseverance displayed by the negotiation teams from both the EU and Indonesia. Together, they have worked diligently to overcome challenges and forge a stronger bond between our nations. This collaboration is vital for several reasons, which I will outline below. Bernd Lange/ Jakarta Post
---------
India brews its own carbon tax on imports to retaliate EU levy: Reports
Several people cited above, both of whom spoke on condition of anonymity, said the finance and commerce ministries are discussing a mechanism to measure carbon content in imported products from Europe.
NEW DELHI : India is preparing the groundwork for its own carbon border tax to strike back against a similar move by the European Union (EU), two people aware of the discussions in the government said. New Delhi is peeved by the EU’s move to link the environment with trade, though there were no such considerations while Europe industrialized.
The ministries of finance and commerce are discussing a mechanism to measure carbon content in imported products from Europe, the report said.
"We are working out the contours of how a carbon tax will work. Retaliation can be in two ways. One is to do something similar, for which we need to measure the carbon content in imports. The second option is to retaliate on something else, but that option is not being looked into. The first option requires a lot of work, and we are doing the homework," one of the sources told the daily, refusing to be identified. LiveMint
---------
Malaysia-MPOC warns retailers to remove all products and advertising materials that contain "No Palm Oil" as regulations become enforceable
KUALA LUMPUR, June 19 — The Malaysian Palm Oil Council (MPOC) has “strongly” urged retailers “to remove all products and advertising materials displayed and sold that bear any discriminatory logos against palm oil from their premises.”
Failing to do so, they could face a hefty fine of RM250,000 or jail time not exceeding five years, MPOC said in a statement today.
It said the regulations under Section 69 of the Trade Description Act 2011 prohibit any person in the course of any business or trade, or in any advertisement, to use any statement, expression, or indication that discriminates against or boycotts palm oil products. The regulations came into effect in March 2022 and after a year of grace period, its enforcement has now come into full force.
“Retail outlets that display and sell products labelled as ‘No Palm Oil’ (NPO) will face penalties if found guilty by enforcement officers of the Ministry of Domestic Trade and Cost of Living (KPDN).
“In a survey conducted by MPOC, it was found that 80 outlets in the Klang Valley region sell these products, with a concentration in high-end areas of the region.
“Letters have been sent to the eight holding companies of the 80 outlets to draw their attention and urge them to take immediate action to comply with the regulations,” it said.
“The NPO label may appear in many other claims such as ‘Palm Oil Free’, ‘Without Palm Oil’, ‘No Palm Fat’, ‘Never Palm Oil’, and others, in English or in foreign languages,” it noted. As found in the same survey, it may also appear as distinct logos, depicting orang-utans or putting a slash or a cross mark across a picture of oil palm. Malay Mail
---------
Leaked information on RED3 shows palm oil producing countries need to fight ILUC theory
Online media Contexte leaked a copy of the RED3 text reflecting on the political agreement found at the end of March 2023. This is not the final version: as highlighted by Brussels sources, the wording must be clarified in many sentences during the final reviews by the EU legal staff before the final vote at the Parliament in September 2023.
Here are the main takeaways of our analysis focused on the transport sector. Note that the comments are made on the current version, which can differ from the final one to be voted in Q3 2023.
• The most crucial point to clarify was the wording of the new article 25 defining 2030 transport targets: 29% e.c OR 14.5% GHG reduction. In the current version of the wording, Member States (MS) will have to meet either one or the other.
• Advanced sub-target for advanced (9A) biofuels AND Renewable Fuels of Non Biological Origin (RFNBOs): 1% e.c in 2025 and 5.5% e.c (incl. min. 1% RFNBO) in 2030.
• The targets are expressed after Double Counting ( DC). Consequently, the 2030 target for 9A biofuels was increased effectively from 3.5% e.c (RED2) to 4.5% e.c (RED3).
• The text says that Member States (MS) is “encouraged” to set differentiated targets for 9A biofuels and RFNBOs to reach the 2030 target.
• MS with Ports must ensure a 1.2% e.c after DC share of RFNBOs in the total amount of energy supplied to the maritime sector.
• RFNBOS (incl. the most important green hydrogen) used in the production of fossil fuels (i.e at refineries) can account for the main advanced 2030 targets. In the case of renewable fuels, it can either be considered through the final product or separately if not included in the renewable fuel GHG calculation.
• About the eligibility of renewable electricity (RE) used in transport, RED3 adds that MS “may include private recharging points in this mechanism “ when proof exists that renewable electricity was “provided solely to electric vehicles”.
• The RED2 rule according to which an MS can decrease its overall target (either energy or GHG) in the case that its crop share stands below 7% remains valid in RED3 (i.e: if an MS relies only on 2% e.c crop, it can respect RED3 target with 27% e.c renewable).
• RED3 commands that the Commission, by September 1, 2023, review high ILUC criteria through its delegated act (DA) (which currently defines only palm as high ILUC, but could later this year include soy depending on the Commission – highly political - choices).
• The 9B cap at 1.7% e.c physical remains as in RED2. So does the MS option to ask for an exception to the Commission and potentially significantly increase this level.
• The RED3 novelty in this regard is that the Commission is entitled to raise this cap through the publication of a DA. However, a clarification in the wording is needed here.
• All multiples (9A-9B *2, RE to road *4, RE to rail *1.5, maritime/aviation *1.2) of RED2 remain the same in RED3. The only noticeable change is that RFNBOs used in aviation/maritime will enjoy a new 1.5 multiple (on top of their *2 linked to waste feedstock).
• Importantly, RED3 includes the renewable fuels supplied to the international marine bunkers at the denominator of the calculation of the final consumption of energy from renewable energy in the transport sector.
• The RED3 Directive also contains small adjustments of the FQD, which Annex II is amended so that in the standard EN 14078, the maximum Fame content is increased from 7% to 10%.
• The wording about the transposition deadline of RED3 is especially unclear, mentioning the usual 18 months AND the deadline of July 1, 2024: this incoherency must be sorted out by legal staff by the time of the final vote.
Source: Square Commodities
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June 18, 2023
Malaysia-Deputy Prime Minister Fadillah Yusof urges all stakeholders to play their role in sustainable palm oil
KUALA LUMPUR: All parties need to play a role in ensuring that Malaysia’s palm oil industry, which is the source of income for over a million people in this country, continues to be accepted by the market, Deputy Prime Minister Datuk Seri Fadillah Yusof (pix) said.
He, who is also the Minister of Plantation and Commodities, said those involved in the palm oil industry needed to deepen and implement the principles set out in the Malaysian Sustainable Palm Oil (MSPO) certification scheme as an effort to ensure palm oil and commodity-based products continued to be accepted by the market.
The deputy prime minister said MSPO is comprised of three main principles -- the balance between human needs, environmental sustainability and profit generation.
“When the industry has 100 per cent studied and practised the principles set in the MSPO, we can deal with all the restrictions and negative campaigns of several irresponsible quarters with certain interests.
“Efforts to fend off the claims of irresponsible quarters need to be proven and I believe one of the ways is through certification,” he said in a Facebook post.
He said the rapid development of the country’s palm oil industry was not achieved easily but instead, had to deal with various challenges and obstacles in ensuring that palm oil was accepted around the world, including negative campaigns by certain quarters who said palm oil was bad for health. The Sun Daily
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EU ‘listening’ to M’sia, coming to detail discussion on Deforestation Regulation issue
MIRI (June 17): The European Union (EU) is “listening” to Malaysia’s request and will be coming to Malaysia for further details following Malaysia’s recent trade mission to Brussels, Belgium, and London, said Deputy Prime Minister Dato’ Sri Fadillah Yusof.
“So far, they are listening to what we have discussed, and they will be coming to Malaysia to detail all the discussions.
“Hopefully, our MSPO (Malaysian Sustainable Palm Oil) can be accepted and used in due diligence process. If they use this, small-time farmers can remain in the world oil palm supply chain.
“This is our fight at the federal level,” he said when officiating at the closing of a three-day FGV with Smallholder and Suppliers Consultation Programme organised by FGV Holdings Berhad at Pullman Hotel today.
Malaysia had requested to be involved in all discussion and policy implementation, as to ensure that oil palm smallholders are not neglected and their roles are not dropped out from the world supply chain. The Borneo Post
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Malaysia-Mapex set for tech expo in Sandakan
KOTA KINABALU: The Malaysia Palm Oil Expo (Mapex) 2023 is set to elevate Sabah’s palm oil industry with its inaugural two day technology expo at the Sandakan Hakka Hall on June 20th.Sabah currently ranked as Malaysia’s largest palm oil producing state, provides the perfect backdrop for Mapex 2023 as the event prepares to welcome more than 80 exhibiting brands showcasing the latest technology in the palm oil industry.
Slated to be officiated by the Minister of Industrial Development and Entrepreneurship, Phoong Jin Zhe, the event seeks to connect both local and international stakeholders in the ever-growing palm oil industry.
Mapex 2023 which is a more intimate event and a spin off from the flagship Palmex Malaysia, was conceived to allow end users in East Malaysia such as mill and refinery managers, plantation managers and engineers in East Malaysia to meet new suppliers at their doorstep. Daily Express
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Indonesia, Switzerland strengthen manpower cooperation
Jakarta (ANTARA) - The Indonesian Manpower Ministry and the Swiss State Secretariat for Economic Affairs have signed an amendment to a labor and employment memorandum of understanding (MoU) to bolster the cooperation of the two countries in the sector.
The document was signed by Secretary General of the Indonesian Manpower Ministry Anwar Sanusi and Head of the Labor Directorate of State Secretariat for Economic Affairs (SECO) of Switzerland Boris Zurcher.
"We agreed to amend the MoU, thus the two countries can carry out the proposed activities to respond to the global changes and dynamics in the workforce sector," Sanusi said in a statement received here Friday.
The amendment to the MoU includes tripartite cooperation as well as potential bilateral collaboration in various programs contained in the 2023–2024 cooperation road map of the two countries, he added.
"In the road map, we want to encourage tripartite cooperation between the Indonesian and Swiss governments, business actors, as well as trade unions," the Indonesian official added after attending the 3rd Indonesia-Switzerland Joint Working Group meeting.
The governments of Indonesia and Switzerland have set three priorities in the amendments to the MoU, namely social dialogue, productivity and decent work, as well as economic development cooperation, he said. Antara News
---------
Nigeria-The official list of 43 banned items from Nigerian Foreign Exchange Market
In a circular dated June 23rd, 2015 the central bank of Nigeria published a list of imported goods and services that will not be valid for foreign exchange in the Nigerian foreign exchange market.
According to the statement issued by the central bank at the time, the list was published “in the continuing effort to sustain the stability of the foreign exchange market and ensure the efficient utllization of foreign exchange and the derivation of optimum benefits from goods and services imported Into the country.”
It further stated that in order to encourage local production of these items, it had to exclude importers of some goods and services from accessing foreign exchange at the Nigerian foreign exchange markets.
In exchange, the central bank believed that the policy will help conserve foreign reserves as well as facilitate the resuscitation of domestic industries and improve employment generation. Naira Metrics
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UK-Test Valley Council's vehicles all now running on vegetable oil
Test Valley Borough Council’s (TVBC) fleet of vehicles have now all switched from using diesel fuel to hydrotreated vegetable oil (HVO), cutting carbon dioxide fuel emissions by up to 95 per cent.
HVO is a drop-in diesel alternative that benefits from an instant reduction in carbon dioxide emissions without the need for changes to engine infrastructure or machinery.
It’s also made from 100 per cent renewable raw materials, biodegradable and is odourless.
The entire fleet, from waste collection vehicles to plant machinery, is now using HVO, after council leaders approved plans earlier this year.
In 2019, TVBC declared a climate emergency, and this is another step towards the ambition of becoming carbon neutral as soon as possible.
Leader of Test Valley Borough Council, Cllr Phil North, said: “Switching all of our vehicles from diesel to HVO is a huge step in the right direction as we cut our carbon emissions generated from our fleet vehicles by 95 per cent.
“Using this biofuel does not require expensive vehicle changes and is completely fossil-free, fulfilling one of the pledges we made in our cross-party Climate Emergency action plan.” Andover Advertiser
Malaysia-Deputy Prime Minister Fadillah Yusof urges all stakeholders to play their role in sustainable palm oil
KUALA LUMPUR: All parties need to play a role in ensuring that Malaysia’s palm oil industry, which is the source of income for over a million people in this country, continues to be accepted by the market, Deputy Prime Minister Datuk Seri Fadillah Yusof (pix) said.
He, who is also the Minister of Plantation and Commodities, said those involved in the palm oil industry needed to deepen and implement the principles set out in the Malaysian Sustainable Palm Oil (MSPO) certification scheme as an effort to ensure palm oil and commodity-based products continued to be accepted by the market.
The deputy prime minister said MSPO is comprised of three main principles -- the balance between human needs, environmental sustainability and profit generation.
“When the industry has 100 per cent studied and practised the principles set in the MSPO, we can deal with all the restrictions and negative campaigns of several irresponsible quarters with certain interests.
“Efforts to fend off the claims of irresponsible quarters need to be proven and I believe one of the ways is through certification,” he said in a Facebook post.
He said the rapid development of the country’s palm oil industry was not achieved easily but instead, had to deal with various challenges and obstacles in ensuring that palm oil was accepted around the world, including negative campaigns by certain quarters who said palm oil was bad for health. The Sun Daily
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EU ‘listening’ to M’sia, coming to detail discussion on Deforestation Regulation issue
MIRI (June 17): The European Union (EU) is “listening” to Malaysia’s request and will be coming to Malaysia for further details following Malaysia’s recent trade mission to Brussels, Belgium, and London, said Deputy Prime Minister Dato’ Sri Fadillah Yusof.
“So far, they are listening to what we have discussed, and they will be coming to Malaysia to detail all the discussions.
“Hopefully, our MSPO (Malaysian Sustainable Palm Oil) can be accepted and used in due diligence process. If they use this, small-time farmers can remain in the world oil palm supply chain.
“This is our fight at the federal level,” he said when officiating at the closing of a three-day FGV with Smallholder and Suppliers Consultation Programme organised by FGV Holdings Berhad at Pullman Hotel today.
Malaysia had requested to be involved in all discussion and policy implementation, as to ensure that oil palm smallholders are not neglected and their roles are not dropped out from the world supply chain. The Borneo Post
---------
Malaysia-Mapex set for tech expo in Sandakan
KOTA KINABALU: The Malaysia Palm Oil Expo (Mapex) 2023 is set to elevate Sabah’s palm oil industry with its inaugural two day technology expo at the Sandakan Hakka Hall on June 20th.Sabah currently ranked as Malaysia’s largest palm oil producing state, provides the perfect backdrop for Mapex 2023 as the event prepares to welcome more than 80 exhibiting brands showcasing the latest technology in the palm oil industry.
Slated to be officiated by the Minister of Industrial Development and Entrepreneurship, Phoong Jin Zhe, the event seeks to connect both local and international stakeholders in the ever-growing palm oil industry.
Mapex 2023 which is a more intimate event and a spin off from the flagship Palmex Malaysia, was conceived to allow end users in East Malaysia such as mill and refinery managers, plantation managers and engineers in East Malaysia to meet new suppliers at their doorstep. Daily Express
---------
Indonesia, Switzerland strengthen manpower cooperation
Jakarta (ANTARA) - The Indonesian Manpower Ministry and the Swiss State Secretariat for Economic Affairs have signed an amendment to a labor and employment memorandum of understanding (MoU) to bolster the cooperation of the two countries in the sector.
The document was signed by Secretary General of the Indonesian Manpower Ministry Anwar Sanusi and Head of the Labor Directorate of State Secretariat for Economic Affairs (SECO) of Switzerland Boris Zurcher.
"We agreed to amend the MoU, thus the two countries can carry out the proposed activities to respond to the global changes and dynamics in the workforce sector," Sanusi said in a statement received here Friday.
The amendment to the MoU includes tripartite cooperation as well as potential bilateral collaboration in various programs contained in the 2023–2024 cooperation road map of the two countries, he added.
"In the road map, we want to encourage tripartite cooperation between the Indonesian and Swiss governments, business actors, as well as trade unions," the Indonesian official added after attending the 3rd Indonesia-Switzerland Joint Working Group meeting.
The governments of Indonesia and Switzerland have set three priorities in the amendments to the MoU, namely social dialogue, productivity and decent work, as well as economic development cooperation, he said. Antara News
---------
Nigeria-The official list of 43 banned items from Nigerian Foreign Exchange Market
In a circular dated June 23rd, 2015 the central bank of Nigeria published a list of imported goods and services that will not be valid for foreign exchange in the Nigerian foreign exchange market.
According to the statement issued by the central bank at the time, the list was published “in the continuing effort to sustain the stability of the foreign exchange market and ensure the efficient utllization of foreign exchange and the derivation of optimum benefits from goods and services imported Into the country.”
It further stated that in order to encourage local production of these items, it had to exclude importers of some goods and services from accessing foreign exchange at the Nigerian foreign exchange markets.
In exchange, the central bank believed that the policy will help conserve foreign reserves as well as facilitate the resuscitation of domestic industries and improve employment generation. Naira Metrics
---------
UK-Test Valley Council's vehicles all now running on vegetable oil
Test Valley Borough Council’s (TVBC) fleet of vehicles have now all switched from using diesel fuel to hydrotreated vegetable oil (HVO), cutting carbon dioxide fuel emissions by up to 95 per cent.
HVO is a drop-in diesel alternative that benefits from an instant reduction in carbon dioxide emissions without the need for changes to engine infrastructure or machinery.
It’s also made from 100 per cent renewable raw materials, biodegradable and is odourless.
The entire fleet, from waste collection vehicles to plant machinery, is now using HVO, after council leaders approved plans earlier this year.
In 2019, TVBC declared a climate emergency, and this is another step towards the ambition of becoming carbon neutral as soon as possible.
Leader of Test Valley Borough Council, Cllr Phil North, said: “Switching all of our vehicles from diesel to HVO is a huge step in the right direction as we cut our carbon emissions generated from our fleet vehicles by 95 per cent.
“Using this biofuel does not require expensive vehicle changes and is completely fossil-free, fulfilling one of the pledges we made in our cross-party Climate Emergency action plan.” Andover Advertiser
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June 17, 2023
India-Patanjali's 'Mission Palm Plantation' Aims to Connect with 500000 Farmers Across India
Patanjali's 'Mission Palm Plantation' demonstrates its commitment to sustainable agricultural practices while bolstering India's self-sufficiency in edible oils.
Yoga Guru Baba Ramdev announced that Patanjali, as part of its ambitious 'Mission Palm Plantation,' aims to establish connections with 500,000 farmers nationwide during a press conference at the Palm Plantation Farm and Nursery.
The company has already planted a staggering 10 million palm saplings and plans to extend its efforts to cover 1.5 to 2 million acres over the next five years. This initiative is set to contribute significantly to India's self-sufficiency in edible oils. Presently, Patanjali is associated with around 40,000 farmers as part of the 'Mission Palm Plantation.' Krishi Jagan
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Nigeria- Governor Soludo of Anambra state targets N160bn revenue annually from palm oil, coconut
Anambra State government has planned to generate over N160 billion yearly from palm oil and coconut investment.
Onyekachi Ibezim, deputy governor of the state, made the disclosure during his inauguration of the 2023 Farming Season in Awka.
Ibezim, who represented Gov. Chukwuma Soludo at the event, said the anticipated revenue was from one million palm seedlings and one million coconuts imported from Malaysia.
“We started importation of one million palm oil seedlings and one million coconut from Malaysia last year, these species have three years maturity period.
“When this investment fully matures, the off-takers will be processing the fruits of these plants and over N160 billion will be yearly income from this window,” he said. Business TodayNG
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Malaysian government will ensure small holders are not left out of palm oil supply chain: DPM Fadillah
MIRI: The government is committed to ensuring that smallholders are not left out of the palm oil supply chain following the introduction of new palm oil regulations by foreign countries.
Deputy Prime Minister Datuk Seri Fadillah Yusof said Malaysia is of the opinion that whatever regulations the European Union (EU) wants to implement should involve negotiations with the government.
The message was delivered by the government during the joint mission of Malaysia and Indonesia to the EU through the Council of Palm Oil Producing Countries (CPOPC) in Brussels, Belgium late last month.
"This is our struggle. Our purpose in going to the EU that day was to state that whatever they implement must involve us in all negotiations so that smallholders in particular will not be neglected or left out of the palm oil supply chain," he said while officiating at the closing of the FGV Consultation Programme with Smallholders and Suppliers in the Miri Area here today.
Fadillah, who is also the Plantation and Commodities Minister, said Malaysia and Indonesia had conveyed their position and concerns regarding the implementation of the European Union Deforestation Regulation (EUDR) to the EU.
He described the introduction of various regulations on palm oil as a way of competing in the form of discrimination and trade barriers because palm oil is more productive when compared to oil produced from other sources such as soybeans, sunflowers or corn. New Straits Times
India-Patanjali's 'Mission Palm Plantation' Aims to Connect with 500000 Farmers Across India
Patanjali's 'Mission Palm Plantation' demonstrates its commitment to sustainable agricultural practices while bolstering India's self-sufficiency in edible oils.
Yoga Guru Baba Ramdev announced that Patanjali, as part of its ambitious 'Mission Palm Plantation,' aims to establish connections with 500,000 farmers nationwide during a press conference at the Palm Plantation Farm and Nursery.
The company has already planted a staggering 10 million palm saplings and plans to extend its efforts to cover 1.5 to 2 million acres over the next five years. This initiative is set to contribute significantly to India's self-sufficiency in edible oils. Presently, Patanjali is associated with around 40,000 farmers as part of the 'Mission Palm Plantation.' Krishi Jagan
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Nigeria- Governor Soludo of Anambra state targets N160bn revenue annually from palm oil, coconut
Anambra State government has planned to generate over N160 billion yearly from palm oil and coconut investment.
Onyekachi Ibezim, deputy governor of the state, made the disclosure during his inauguration of the 2023 Farming Season in Awka.
Ibezim, who represented Gov. Chukwuma Soludo at the event, said the anticipated revenue was from one million palm seedlings and one million coconuts imported from Malaysia.
“We started importation of one million palm oil seedlings and one million coconut from Malaysia last year, these species have three years maturity period.
“When this investment fully matures, the off-takers will be processing the fruits of these plants and over N160 billion will be yearly income from this window,” he said. Business TodayNG
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Malaysian government will ensure small holders are not left out of palm oil supply chain: DPM Fadillah
MIRI: The government is committed to ensuring that smallholders are not left out of the palm oil supply chain following the introduction of new palm oil regulations by foreign countries.
Deputy Prime Minister Datuk Seri Fadillah Yusof said Malaysia is of the opinion that whatever regulations the European Union (EU) wants to implement should involve negotiations with the government.
The message was delivered by the government during the joint mission of Malaysia and Indonesia to the EU through the Council of Palm Oil Producing Countries (CPOPC) in Brussels, Belgium late last month.
"This is our struggle. Our purpose in going to the EU that day was to state that whatever they implement must involve us in all negotiations so that smallholders in particular will not be neglected or left out of the palm oil supply chain," he said while officiating at the closing of the FGV Consultation Programme with Smallholders and Suppliers in the Miri Area here today.
Fadillah, who is also the Plantation and Commodities Minister, said Malaysia and Indonesia had conveyed their position and concerns regarding the implementation of the European Union Deforestation Regulation (EUDR) to the EU.
He described the introduction of various regulations on palm oil as a way of competing in the form of discrimination and trade barriers because palm oil is more productive when compared to oil produced from other sources such as soybeans, sunflowers or corn. New Straits Times
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June 16, 2023
India-Government cuts import duty on refined soybean and sunflower oils to 12.5%
Usually, India imports 'crude' soybean and sunflower oils, and not their 'refined' form. Yet, the government has reduced the duty on refined soybean and sunflower oils.
The government has reduced the import duty on refined soybean and sunflower oils to 12.5 per cent from 17.5 per cent with effect from Thursday to boost domestic availability and check prices, a finance ministry notification said.
Usually, India imports 'crude' soybean and sunflower oils, and not their 'refined' form. Yet, the government has reduced the duty on refined soybean and sunflower oils
With this reduction, the effective duty on refined edible oils stands at 13.7 per cent, including cess on social welfare. The effective duty on all major crude edible oils is 5.5 per cent.
"The basic import duty on refined soyabean oil and refined sunflower oil has been reduced from 17.5 per cent to 12.5 per cent with effect from today. This will remain in force till March 31, 2024," the Food Ministry said in a statement.
The basic import duty is an important factor, which impacts the landed cost of edible oils, which in turn affects the domestic prices. The cut in import duty on refined sunflower and soybean oils will benefit the consumers, as it will help in easing the domestic retail prices, it said. Outlook India
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India-Patanjali aiming for Atmanirbharta in palm oil production: Baba Ramdev
Speaking to the media at palm plantation farm and nurseryat Dontamuru in Rangampeta Mandal of East Godavari districtin Andhra Pradesh, Baba Ramdevsaid: “Patanjali as part of its ‘Mission Palm Plantation’ is aiming to connect with 5 lakh farmers across the country. The company has already planted one crore palm saplings. They will plant 15-20 lakh acre areas in the next five years. Currently, around 40,000 farmers have been associated with Patanjali in the ‘Mission Palm Plantation’. This will help the country to be self sufficient (Atmanirbharta) when it comes to edible oils.”
Stating that India is importing cooking oils from Malaysia, Indonesia, Thailand, and other countries,he called upon the farmers to cultivate oil palm on a large scale to change this situation and make India self-sufficient in the production of cooking oils. He assured the farmers that Patanjali Foods Limited will cooperate with them in all stages from raw materials to technology and marketing. The farmers explained to him that the lack of minimum support price for oil palm in the market has become a problem for them. They asked for cooperation in getting support prices. The Hans India
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Nigeria-Anambra eyes N160bn revenue from palm oil, coconut investment
Anambra State Government hopes to rake in more than N160 billion yearly from ongoing palm oil and coconut investment.
According to NAN, Dr Onyekachi Ibezim, Deputy Governor of the state, made this known while inaugurating the 2023 Farming Season at Alex Ekwueme Square Awka.
Ibezim, who represented the governor at the event, said the anticipated revenue was from one million palm seedlings and one million coconuts being imported from Malaysia.
“We started importing one million palm oil seedlings and one million coconuts from Malaysia last year; these species have a three years maturity period.
“When this investment fully matures, the off-takers will be processing the fruits of these plants, and over N160 billion will be yearly income from this window”, he said. Daily Post NG
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Indonesian prosecutors name three palm oil groups suspects in corruption case
JAKARTA, June 16 (Reuters) - Indonesia's attorney general's office has named three palm oil companies as suspects in a corruption investigation, alleging misconduct in obtaining export permits at a time when shipments were being restricted.
The investigation comes after Indonesia's Supreme Court last month upheld a lower court's jailing of executives at those companies for manipulating documents or submitting false data to obtain export permits.
Indonesia, which accounts for about 60% of the global palm oil supply, imposed tight export measures last year, including a three-week ban on shipments, to try to secure domestic supply to rein in soaring local cooking oil prices.
Prosecutors said the executives' actions were on behalf of their companies, Singapore-based Wilmar Group (WLIL.SI) and Musim Mas Group and Medan-based Permata Hijau Group and an investigation into the firms sought to recover state losses.
"Those three companies must be held responsible," Ketut Sumedana, spokesperson for the attorney general's office, said in a statement issued on Thursday. Reuters
India-Government cuts import duty on refined soybean and sunflower oils to 12.5%
Usually, India imports 'crude' soybean and sunflower oils, and not their 'refined' form. Yet, the government has reduced the duty on refined soybean and sunflower oils.
The government has reduced the import duty on refined soybean and sunflower oils to 12.5 per cent from 17.5 per cent with effect from Thursday to boost domestic availability and check prices, a finance ministry notification said.
Usually, India imports 'crude' soybean and sunflower oils, and not their 'refined' form. Yet, the government has reduced the duty on refined soybean and sunflower oils
With this reduction, the effective duty on refined edible oils stands at 13.7 per cent, including cess on social welfare. The effective duty on all major crude edible oils is 5.5 per cent.
"The basic import duty on refined soyabean oil and refined sunflower oil has been reduced from 17.5 per cent to 12.5 per cent with effect from today. This will remain in force till March 31, 2024," the Food Ministry said in a statement.
The basic import duty is an important factor, which impacts the landed cost of edible oils, which in turn affects the domestic prices. The cut in import duty on refined sunflower and soybean oils will benefit the consumers, as it will help in easing the domestic retail prices, it said. Outlook India
---------
India-Patanjali aiming for Atmanirbharta in palm oil production: Baba Ramdev
Speaking to the media at palm plantation farm and nurseryat Dontamuru in Rangampeta Mandal of East Godavari districtin Andhra Pradesh, Baba Ramdevsaid: “Patanjali as part of its ‘Mission Palm Plantation’ is aiming to connect with 5 lakh farmers across the country. The company has already planted one crore palm saplings. They will plant 15-20 lakh acre areas in the next five years. Currently, around 40,000 farmers have been associated with Patanjali in the ‘Mission Palm Plantation’. This will help the country to be self sufficient (Atmanirbharta) when it comes to edible oils.”
Stating that India is importing cooking oils from Malaysia, Indonesia, Thailand, and other countries,he called upon the farmers to cultivate oil palm on a large scale to change this situation and make India self-sufficient in the production of cooking oils. He assured the farmers that Patanjali Foods Limited will cooperate with them in all stages from raw materials to technology and marketing. The farmers explained to him that the lack of minimum support price for oil palm in the market has become a problem for them. They asked for cooperation in getting support prices. The Hans India
---------
Nigeria-Anambra eyes N160bn revenue from palm oil, coconut investment
Anambra State Government hopes to rake in more than N160 billion yearly from ongoing palm oil and coconut investment.
According to NAN, Dr Onyekachi Ibezim, Deputy Governor of the state, made this known while inaugurating the 2023 Farming Season at Alex Ekwueme Square Awka.
Ibezim, who represented the governor at the event, said the anticipated revenue was from one million palm seedlings and one million coconuts being imported from Malaysia.
“We started importing one million palm oil seedlings and one million coconuts from Malaysia last year; these species have a three years maturity period.
“When this investment fully matures, the off-takers will be processing the fruits of these plants, and over N160 billion will be yearly income from this window”, he said. Daily Post NG
---------
Indonesian prosecutors name three palm oil groups suspects in corruption case
JAKARTA, June 16 (Reuters) - Indonesia's attorney general's office has named three palm oil companies as suspects in a corruption investigation, alleging misconduct in obtaining export permits at a time when shipments were being restricted.
The investigation comes after Indonesia's Supreme Court last month upheld a lower court's jailing of executives at those companies for manipulating documents or submitting false data to obtain export permits.
Indonesia, which accounts for about 60% of the global palm oil supply, imposed tight export measures last year, including a three-week ban on shipments, to try to secure domestic supply to rein in soaring local cooking oil prices.
Prosecutors said the executives' actions were on behalf of their companies, Singapore-based Wilmar Group (WLIL.SI) and Musim Mas Group and Medan-based Permata Hijau Group and an investigation into the firms sought to recover state losses.
"Those three companies must be held responsible," Ketut Sumedana, spokesperson for the attorney general's office, said in a statement issued on Thursday. Reuters
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June 14, 2023
EU deforestation law may hit Indian exports worth $1.3 billion
Under the European Union Deforestation Regulation (EUDR), items such as coffee, wood articles, chocolates and soy will be allowed into the 27 member-states only if an exporter is able to prove that the shipments are not causing deforestation or forest degradation—a major cause of global warming.
New Delhi: India is discussing with the EU a law that aims to tighten the rules governing the imports of a wide range of consumer goods that are most commonly associated with deforestation, two government officials aware of the development said. Livemint
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MPOB: EUDR will not affect palm oil growth, revenue
KUALA LUMPUR (June 14): The implementation of the European Union Deforestation-free Regulation (EUDR) will not affect Malaysia’s palm oil growth and revenue as European Union imports are insignificant compared to other countries.
Malaysian Palm Oil Board (MPOB) chairman Mohamad Helmy Othman Basha said Malaysia exported about 1.5 million tonnes to the EU from a total production of about 20 million tonnes last year. Therefore, the amount is small.
“We know the consumption growth of palm oil is not coming from EU but it will be from India, China, Africa, Middle East and other places. Hence, if we look from the revenue perspective, even if we sell less to EU, we could still sell to other countries,” he told Bernama during the 10th International Planters Conference. The Borneo Post
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MPOB says Malaysian palm oil not genetically modified but is doing research on it
KUALA LUMPUR, June 13 — Malaysia’s palm oil is not derived from any kind of genetically modified (GM) mechanism, said the Malaysian Palm Oil Board (MPOB).
Director of Biology and Sustainability Research Division Meilina Ong-Abdullah said however, MPOB is conducting research on GM as preparation to meet future demands.
“GM is part of the research target that we have. So, we do have a system that is ongoing ... whether it is successful or not still needs to be tested.
“Research is ongoing in terms of using technology to improve and get (better) oil quality. We adopt technologies as it is key to pushing the potential of the oil palm via genetic modification,” she said at the 10th International Planters Conference 2023 (IPC 2023) today. Malay Mail
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Malaysia-Palm oil industry can lead in sustainable agriculture practices
KUALA LUMPUR: The palm oil industry has the potential to lead in sustainable agricultural practices, said Malaysian Palm Oil Council (MPOC) chairman Datuk Carl Bek-Nielsen.
He said that oil palm is the preferred choice for producing more output with less land used compared to other edible oils, and if palm oil were to be substituted with an alternative, a larger amount of land would be needed to meet the same level of production or supply.
“It would require seven to 10 times more land; as much as 240 million hectares,” he said.
Speaking at the 10th International Planters Conference 2023, Bek-Nielsen highlighted that Malaysia’s deforestation rate due to oil palm planting activities has also declined.
“In fact, the mature oil palm area in Malaysia has fallen by 0.2 million hectares over the last three years.
“Comparatively, the deforestation rate in Brazil due to soybean plantings has increased by six million hectares in the last three years,” he said. Malay Mail
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Indonesia-Govt endeavors to realize child labor-free palm oil plantation program
Jakarta (ANTARA) - The Manpower Ministry has encouraged to put an end to child labor in palm oil plantations to realize a child labor-free Indonesia.
Manpower Minister Ida Fauziyah noted in her virtual remarks on Tuesday that the industry involved several business actors from various economic groups.
"Palm oil is a prominent export commodity, so it has high risk of child labor involvement," she noted at the inauguration of the 2023 child labor-free palm oil plantation program.
Quoting the data of Statistics Indonesia (BPS) in 2021, she noted that 1.05 million child workers were employed in several economic sectors, including 27.63 percent in agriculture, 57.51 percent in service, and 14.86 percent in industry.
"Thus, it requires a joint commitment from the government and all stakeholders to overcome the issue," the minister remarked. Antara News
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EcoCeres to build new biofuel facility in Malaysia
EcoCeres has announced a significant investment in a new biofuel production facility in Pasir Gudang, Johor, Malaysia.
The facility will serve as a major production hub for hydrotreated vegetable oils (HVO), sustainable aviation fuel (SAF) and bio-naphtha with an annual capacity target at 350,000 tonnes.
Used cooking oil and wastewater from palm oil mills will be used as feedstocks, which will then be turned into high-value sustainable fuels and chemicals.
By integrating waste management practices into the production process, this facility contributes to Johor's efforts in waste reduction, resource conservation, and sustainable material management.
“Today, thanks to EcoCeres, will mark the beginning of a process that will eventually result in the construction of a sustainable biofuel facility, which will have important repercussions not only for the state but also for the nation,” the chief minister of Johor Datuk Onn Hafiz Ghazi remarked.
“The presence of this biofuel production facility creates opportunities for new jobs and calls for a knowledgeable labour force in its continued operation, which is significant from an economic point of view.” Biofuels News
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Thailand comes to India’s rescue with crude palm oil exports
In April 2022, Indonesia (one of the major palm oil producers in the world) announced a ban on the export of palm oil, which resulted in a shortage of edible oils in the global market. It also proved to be a turning point for Thailand, which till then was a minor supplier of crude palm oil (CPO) to India.
Thanks to the Indonesian ban, Thailand today has emerged as an important supplier of CPO to India. Another reason for India to increase imports is that Bangkok does not levy export duty on palm oil exports unlike Indonesia and Malaysia.
Though Indonesia and Malaysia remain major palm oil suppliers to India, Thailand’s share has risen to 11.65 per cent during the oil year 2021-22 (November to October), from 1.37 per cent in 2019-20 . Thailand’s share has increased to 15.24 per cent in the first six months of the oil year 2022-23. The Hindu Businessline
EU deforestation law may hit Indian exports worth $1.3 billion
Under the European Union Deforestation Regulation (EUDR), items such as coffee, wood articles, chocolates and soy will be allowed into the 27 member-states only if an exporter is able to prove that the shipments are not causing deforestation or forest degradation—a major cause of global warming.
New Delhi: India is discussing with the EU a law that aims to tighten the rules governing the imports of a wide range of consumer goods that are most commonly associated with deforestation, two government officials aware of the development said. Livemint
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MPOB: EUDR will not affect palm oil growth, revenue
KUALA LUMPUR (June 14): The implementation of the European Union Deforestation-free Regulation (EUDR) will not affect Malaysia’s palm oil growth and revenue as European Union imports are insignificant compared to other countries.
Malaysian Palm Oil Board (MPOB) chairman Mohamad Helmy Othman Basha said Malaysia exported about 1.5 million tonnes to the EU from a total production of about 20 million tonnes last year. Therefore, the amount is small.
“We know the consumption growth of palm oil is not coming from EU but it will be from India, China, Africa, Middle East and other places. Hence, if we look from the revenue perspective, even if we sell less to EU, we could still sell to other countries,” he told Bernama during the 10th International Planters Conference. The Borneo Post
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MPOB says Malaysian palm oil not genetically modified but is doing research on it
KUALA LUMPUR, June 13 — Malaysia’s palm oil is not derived from any kind of genetically modified (GM) mechanism, said the Malaysian Palm Oil Board (MPOB).
Director of Biology and Sustainability Research Division Meilina Ong-Abdullah said however, MPOB is conducting research on GM as preparation to meet future demands.
“GM is part of the research target that we have. So, we do have a system that is ongoing ... whether it is successful or not still needs to be tested.
“Research is ongoing in terms of using technology to improve and get (better) oil quality. We adopt technologies as it is key to pushing the potential of the oil palm via genetic modification,” she said at the 10th International Planters Conference 2023 (IPC 2023) today. Malay Mail
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Malaysia-Palm oil industry can lead in sustainable agriculture practices
KUALA LUMPUR: The palm oil industry has the potential to lead in sustainable agricultural practices, said Malaysian Palm Oil Council (MPOC) chairman Datuk Carl Bek-Nielsen.
He said that oil palm is the preferred choice for producing more output with less land used compared to other edible oils, and if palm oil were to be substituted with an alternative, a larger amount of land would be needed to meet the same level of production or supply.
“It would require seven to 10 times more land; as much as 240 million hectares,” he said.
Speaking at the 10th International Planters Conference 2023, Bek-Nielsen highlighted that Malaysia’s deforestation rate due to oil palm planting activities has also declined.
“In fact, the mature oil palm area in Malaysia has fallen by 0.2 million hectares over the last three years.
“Comparatively, the deforestation rate in Brazil due to soybean plantings has increased by six million hectares in the last three years,” he said. Malay Mail
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Indonesia-Govt endeavors to realize child labor-free palm oil plantation program
Jakarta (ANTARA) - The Manpower Ministry has encouraged to put an end to child labor in palm oil plantations to realize a child labor-free Indonesia.
Manpower Minister Ida Fauziyah noted in her virtual remarks on Tuesday that the industry involved several business actors from various economic groups.
"Palm oil is a prominent export commodity, so it has high risk of child labor involvement," she noted at the inauguration of the 2023 child labor-free palm oil plantation program.
Quoting the data of Statistics Indonesia (BPS) in 2021, she noted that 1.05 million child workers were employed in several economic sectors, including 27.63 percent in agriculture, 57.51 percent in service, and 14.86 percent in industry.
"Thus, it requires a joint commitment from the government and all stakeholders to overcome the issue," the minister remarked. Antara News
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EcoCeres to build new biofuel facility in Malaysia
EcoCeres has announced a significant investment in a new biofuel production facility in Pasir Gudang, Johor, Malaysia.
The facility will serve as a major production hub for hydrotreated vegetable oils (HVO), sustainable aviation fuel (SAF) and bio-naphtha with an annual capacity target at 350,000 tonnes.
Used cooking oil and wastewater from palm oil mills will be used as feedstocks, which will then be turned into high-value sustainable fuels and chemicals.
By integrating waste management practices into the production process, this facility contributes to Johor's efforts in waste reduction, resource conservation, and sustainable material management.
“Today, thanks to EcoCeres, will mark the beginning of a process that will eventually result in the construction of a sustainable biofuel facility, which will have important repercussions not only for the state but also for the nation,” the chief minister of Johor Datuk Onn Hafiz Ghazi remarked.
“The presence of this biofuel production facility creates opportunities for new jobs and calls for a knowledgeable labour force in its continued operation, which is significant from an economic point of view.” Biofuels News
---------
Thailand comes to India’s rescue with crude palm oil exports
In April 2022, Indonesia (one of the major palm oil producers in the world) announced a ban on the export of palm oil, which resulted in a shortage of edible oils in the global market. It also proved to be a turning point for Thailand, which till then was a minor supplier of crude palm oil (CPO) to India.
Thanks to the Indonesian ban, Thailand today has emerged as an important supplier of CPO to India. Another reason for India to increase imports is that Bangkok does not levy export duty on palm oil exports unlike Indonesia and Malaysia.
Though Indonesia and Malaysia remain major palm oil suppliers to India, Thailand’s share has risen to 11.65 per cent during the oil year 2021-22 (November to October), from 1.37 per cent in 2019-20 . Thailand’s share has increased to 15.24 per cent in the first six months of the oil year 2022-23. The Hindu Businessline
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June 13, 2023
Brussels refutes Indonesia’s claims on EU anti-deforestation law
Indonesia and Malaysia have accused the EU’s anti-deforestation law of unfairly penalising small farmers, arguing that the regulation’s complex requirements will financially strain those least able to afford it – allegations the European Commission has rejected.
Ministers from Indonesia and Malaysia travelled to Brussels late last month to raise concerns over the legislation with EU leaders, outlining the impact the EU Deforestation-Free Regulation (EUDR) could have on their respective economies.
The EU’s deforestation law aims to ban commodities such as cocoa, coffee, palm oil, and wood from entering the bloc if they are linked to the illicit clearing of forests, placing strict certification requirements on companies.
Under the new rules, companies must provide complete traceability, including the precise location goods were produced. They must also prove that farms are not located on lands that have been deforested after 2020.
To manage the risk of non-compliance, companies will have to appoint a compliance person, while a specifically designated authority, to be appointed in each EU member state, will be tasked with checking the statements and due diligence processes of companies and traders.
The regulation provoked a backlash in Malaysia and Indonesia, who criticised the lack of consultation. The Council of Palm Oil Producing Countries (CPOPC), led by the two nations, called the law “inherently discriminatory and punitive in nature”.
Both countries had used the cultivation of palm oil, a lucrative commodity traded globally, as a means to improve the livelihoods of small farmers. Jointly, the two are responsible for around 85% of global palm oil exports.
This progress is now under threat as a result of the deforestation law, according to Indonesian and Malaysian officials.
EU law to impact smallholders
In an interview with EURACTIV, Malaysian Deputy Prime Minister Fadillah Yusof and Indonesian Coordinating Minister of Economic Affairs Airlangga Hartarto said the law could diminish their nations’ efforts to eradicate poverty in line with the United Nations Sustainable Development Goals (SDGs).
“[The EU] deforestation law, for a big company, it’s very easy to comply. The issue will be for the smallholders,” said Hartarto. “Consumers in Europe won’t bear the cost for the extra expense, it will be the farmers.”
One of their chief concerns is that Europe will force businesses to adopt new certification procedures. Euractiv
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Exclusive: Investors may exit consumer goods firms over EU deforestation law
LONDON, June 13 (Reuters) - As a new European Union zero-tolerance deforestation law looms, several major investors told Reuters they are concerned about their exposure to the issue, with some saying they could quit consumer goods makers with "risky" supply chains.
The EU agreed in December a new rule to prevent companies from selling into its market coffee, beef, soy, rubber, palm oil and other commodities linked to deforestation. Companies must prove their supply chains aren't contributing to the destruction of forests or be fined up to 4% of their turnover in an EU member state.
Germany's Union Investment, a top-20 investor in Unilever (ULVR.L) and Reckitt (RKT.L), last year wrote to 56 consumer goods companies to find out more about deforestation in their supply chains.
"The fines can be a risk for the performance of these companies in the stock market," said Henrik Pontzen, head of ESG at Union Investment, which has about 424 billion euros ($467 billion) in assets under management and stakes in Nestle (NESN.S), Pepsico (PEP.O), Danone (DANO.PA), Beyond Meat (BYND.O) and L'Oreal (OREP.PA).
An internal Union Investment document seen by Reuters shows that the firm received just 30 responses to its outreach. Of those, only 14 companies said they had zero-deforestation goals.
"As a major investor, this is very atypical," said Pontzen. "Typically, we receive an answer from any company we write to. Maybe the reason for not answering is they don't have anything to say."
Union "will exclude companies when all our escalation options have been exhausted," Pontzen said.
He is not alone in his frustration over the companies' lack of engagement.
Eight major institutional shareholders - Schroders, Janus Henderson, NBIM, Union Investment, KLP, Aviva, Fidelity International and Ninety One - told Reuters they were talking to consumer goods makers about this issue, three of whom said they will identify stocks they may exit. Reuters
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Malaysia-Adoption of mechanisation in palm oil plantations still low
KUALA LUMPUR: The adoption of mechanisation in Malaysia’s oil palm plantations is still relatively low at less than 50 per cent for overall field activities, and less than 15 per cent for harvesting, according to the Malaysian Palm Oil Board (MPOB).
Director-general Datuk Dr Ahmad Parveez Ghulam Kadir attributed the low adoption rate to challenges such as system capability in rough environments, high implementation costs and lack of technical expertise.
“As such, efforts are being directed towards leveraging advancements in the fourth industrial revolution (IR 4.0) technologies like drones, robotics, sensors, big data analytics and the Internet of Things (IoT).
“One of the main drivers for increased mechanisation is the need to reduce dependency on foreign labour and increase local participation in the industry,” he said at the two-day 10th International Planters Conference 2023 which began yesterday.
Currently, the nation’s oil palm industry relies heavily on foreign labour, particularly for maintenance activities and harvesting of fresh fruit bunches (FFB).
Ahmad Parveez emphasised that increasing mechanisation adoption and developing skilled local workforce would help the oil palm industry address labour shortages and improve overall productivity. The Sun Daily
Brussels refutes Indonesia’s claims on EU anti-deforestation law
Indonesia and Malaysia have accused the EU’s anti-deforestation law of unfairly penalising small farmers, arguing that the regulation’s complex requirements will financially strain those least able to afford it – allegations the European Commission has rejected.
Ministers from Indonesia and Malaysia travelled to Brussels late last month to raise concerns over the legislation with EU leaders, outlining the impact the EU Deforestation-Free Regulation (EUDR) could have on their respective economies.
The EU’s deforestation law aims to ban commodities such as cocoa, coffee, palm oil, and wood from entering the bloc if they are linked to the illicit clearing of forests, placing strict certification requirements on companies.
Under the new rules, companies must provide complete traceability, including the precise location goods were produced. They must also prove that farms are not located on lands that have been deforested after 2020.
To manage the risk of non-compliance, companies will have to appoint a compliance person, while a specifically designated authority, to be appointed in each EU member state, will be tasked with checking the statements and due diligence processes of companies and traders.
The regulation provoked a backlash in Malaysia and Indonesia, who criticised the lack of consultation. The Council of Palm Oil Producing Countries (CPOPC), led by the two nations, called the law “inherently discriminatory and punitive in nature”.
Both countries had used the cultivation of palm oil, a lucrative commodity traded globally, as a means to improve the livelihoods of small farmers. Jointly, the two are responsible for around 85% of global palm oil exports.
This progress is now under threat as a result of the deforestation law, according to Indonesian and Malaysian officials.
EU law to impact smallholders
In an interview with EURACTIV, Malaysian Deputy Prime Minister Fadillah Yusof and Indonesian Coordinating Minister of Economic Affairs Airlangga Hartarto said the law could diminish their nations’ efforts to eradicate poverty in line with the United Nations Sustainable Development Goals (SDGs).
“[The EU] deforestation law, for a big company, it’s very easy to comply. The issue will be for the smallholders,” said Hartarto. “Consumers in Europe won’t bear the cost for the extra expense, it will be the farmers.”
One of their chief concerns is that Europe will force businesses to adopt new certification procedures. Euractiv
---------
Exclusive: Investors may exit consumer goods firms over EU deforestation law
LONDON, June 13 (Reuters) - As a new European Union zero-tolerance deforestation law looms, several major investors told Reuters they are concerned about their exposure to the issue, with some saying they could quit consumer goods makers with "risky" supply chains.
The EU agreed in December a new rule to prevent companies from selling into its market coffee, beef, soy, rubber, palm oil and other commodities linked to deforestation. Companies must prove their supply chains aren't contributing to the destruction of forests or be fined up to 4% of their turnover in an EU member state.
Germany's Union Investment, a top-20 investor in Unilever (ULVR.L) and Reckitt (RKT.L), last year wrote to 56 consumer goods companies to find out more about deforestation in their supply chains.
"The fines can be a risk for the performance of these companies in the stock market," said Henrik Pontzen, head of ESG at Union Investment, which has about 424 billion euros ($467 billion) in assets under management and stakes in Nestle (NESN.S), Pepsico (PEP.O), Danone (DANO.PA), Beyond Meat (BYND.O) and L'Oreal (OREP.PA).
An internal Union Investment document seen by Reuters shows that the firm received just 30 responses to its outreach. Of those, only 14 companies said they had zero-deforestation goals.
"As a major investor, this is very atypical," said Pontzen. "Typically, we receive an answer from any company we write to. Maybe the reason for not answering is they don't have anything to say."
Union "will exclude companies when all our escalation options have been exhausted," Pontzen said.
He is not alone in his frustration over the companies' lack of engagement.
Eight major institutional shareholders - Schroders, Janus Henderson, NBIM, Union Investment, KLP, Aviva, Fidelity International and Ninety One - told Reuters they were talking to consumer goods makers about this issue, three of whom said they will identify stocks they may exit. Reuters
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Malaysia-Adoption of mechanisation in palm oil plantations still low
KUALA LUMPUR: The adoption of mechanisation in Malaysia’s oil palm plantations is still relatively low at less than 50 per cent for overall field activities, and less than 15 per cent for harvesting, according to the Malaysian Palm Oil Board (MPOB).
Director-general Datuk Dr Ahmad Parveez Ghulam Kadir attributed the low adoption rate to challenges such as system capability in rough environments, high implementation costs and lack of technical expertise.
“As such, efforts are being directed towards leveraging advancements in the fourth industrial revolution (IR 4.0) technologies like drones, robotics, sensors, big data analytics and the Internet of Things (IoT).
“One of the main drivers for increased mechanisation is the need to reduce dependency on foreign labour and increase local participation in the industry,” he said at the two-day 10th International Planters Conference 2023 which began yesterday.
Currently, the nation’s oil palm industry relies heavily on foreign labour, particularly for maintenance activities and harvesting of fresh fruit bunches (FFB).
Ahmad Parveez emphasised that increasing mechanisation adoption and developing skilled local workforce would help the oil palm industry address labour shortages and improve overall productivity. The Sun Daily
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June 12, 2023
Big palm oil players say EU deforestation law will not hurt exports
KUALA LUMPUR, June 12 (Reuters) - Bigger palm oil companies will not be affected by a new European Union law banning goods linked to deforestation, two of Malaysia's largest producers of the commodity said on Monday.
The EU passed a law this year banning imports of commodities linked to deforestation, a move that is expected to hurt palm oil, which is used in everything from lipstick to pizza.
Indonesia and Malaysia, which are the world's top two producers and exporters of palm oil, have said the law is discriminatory and meant to protect the EU's oilseeds market.
At an industry conference on Monday, Malaysian producers Sime Darby Plantation Bhd (SIPL.KL) and United Plantations Bhd (UTPS.KL) said they will not have difficulty complying with the new law as they have not been planting on deforested land for years.
"Most of the big companies in Malaysia signed up for no deforestation, no development on peat 10 to 15 years ago. I do not see a problem for us," Carl Bek Nielsen, chief executive of United Plantations, told reporters.
However, the company is concerned about the compliance of small farmers, he said.
Sime Darby Plantation's group managing director Mohamad Helmy Othman Basha said smallholders, many of whom feed into the supply chains of bigger producers, would find it difficult to trace all of their palm oil production as required by the new law.
Big companies "will not have major issues to comply with," he said. Reuters
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CPOPC to make another approach to entice Thailand
KUALA LUMPUR: The Council of Palm Oil Producing Countries (CPOPC) will make another approach to Thailand to join it once the country has sorted its post-election governmental structure.
CPOPC deputy secretary general Datuk Mohamad Nageeb Ahmad Abdul Wahab said the council has approached Thailand through its embassies in Malaysia and Indonesia to invite the country to become a member.
"In view of the election until today, the prime minister has not been officially elected, we have to hold back for a while.
"They have mentioned that they will consider the request to come on board of the council and indicated their willingness to talk to us," he told the media during the 10th International Planters Conference 2023 (IPC 2023) today. New Straits Times
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CPOPC aims 93% of world's palm oil producing countries to become members by next year
KUALA LUMPUR: The Council of Palm Oil Producing Countries (CPOPC) aims to have 93 per cent of the world’s palm oil producing countries as members by next year, especially once countries such as Thailand, Papua New Guinea, Colombia, Ghana and Nigeria are on board.
Deputy Secretary General of CPOPC Datuk Nageeb Wahab said the council has been trying to bring in countries from all continents to join the council and these countries are in the process of becoming members at the moment.
"We have rectified our charter and in our charter within the next two years, which is one year ago that all have to become our board of members. So, we got a timeline for another year and we are optimistic that they will come on board.
"They are interested but because of the countries’ legislative process, it’s getting delayed,” he said at a press conference after the opening ceremony of the 10th International Planters Conference here today. The StarMY
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Malaysia end-May palm oil stocks surge as output swells
KUALA LUMPUR (June 12): Malaysia's end-May palm oil inventories rose for the first time in four months, after output surged to its highest level so far this year, data from the nation's palm oil board showed on Monday (June 12).
Stockpiles in the world's second-largest producer rose 12.63% from the month before to 1.69 million tonnes, the Malaysian Palm Oil Board (MPOB) said.
Production in May swelled 26.8% from April to 1.52 million tonnes, the highest since December, helped by more harvesting days and as a shortage of labour continue to ease.
Harvesting is in full force possibly due to the return of migrant workers after a pandemic-induced labour shortage, signalling the possibility of good production continuing through the second half of the year, a Kuala Lumpur-based trader said. The Edge Malaysia
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Indonesia's PalmCo plans $500mln IPO this year -sources
PalmCo is a unit of state agricultural group Perkebunan Nusantara (PTPN) III and Bloomberg first reported the IPO
JAKARTA/SINGAPORE - Indonesian palm oil producer PalmCo plans an initial public offering in Jakarta in the fourth quarter which could raise about $500 million, two sources familiar with the matter said.
PalmCo is a unit of state agricultural group Perkebunan Nusantara (PTPN) III and Bloomberg first reported the IPO, citing PTPN President Director Mohammad Abdul Ghani in an interview.
When contacted by Reuters on Monday, Bambang Agustian, PTPN's corporate secretary, confirmed the company is targeting a fourth-quarter listing, but declined to comment on the proceeds.
"The IPO funds will be allocated for investment that is related to increasing company value, such as technical culture improvement, investing in downstream business and the use of renewable energy in relation to decarbonisation efforts," he told Reuters.
The company has appointed Mandiri Sekuritas, DBS, BNP Paribas and CIMB as underwriters for PalmCo's IPO, he added. Zawya
Big palm oil players say EU deforestation law will not hurt exports
KUALA LUMPUR, June 12 (Reuters) - Bigger palm oil companies will not be affected by a new European Union law banning goods linked to deforestation, two of Malaysia's largest producers of the commodity said on Monday.
The EU passed a law this year banning imports of commodities linked to deforestation, a move that is expected to hurt palm oil, which is used in everything from lipstick to pizza.
Indonesia and Malaysia, which are the world's top two producers and exporters of palm oil, have said the law is discriminatory and meant to protect the EU's oilseeds market.
At an industry conference on Monday, Malaysian producers Sime Darby Plantation Bhd (SIPL.KL) and United Plantations Bhd (UTPS.KL) said they will not have difficulty complying with the new law as they have not been planting on deforested land for years.
"Most of the big companies in Malaysia signed up for no deforestation, no development on peat 10 to 15 years ago. I do not see a problem for us," Carl Bek Nielsen, chief executive of United Plantations, told reporters.
However, the company is concerned about the compliance of small farmers, he said.
Sime Darby Plantation's group managing director Mohamad Helmy Othman Basha said smallholders, many of whom feed into the supply chains of bigger producers, would find it difficult to trace all of their palm oil production as required by the new law.
Big companies "will not have major issues to comply with," he said. Reuters
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CPOPC to make another approach to entice Thailand
KUALA LUMPUR: The Council of Palm Oil Producing Countries (CPOPC) will make another approach to Thailand to join it once the country has sorted its post-election governmental structure.
CPOPC deputy secretary general Datuk Mohamad Nageeb Ahmad Abdul Wahab said the council has approached Thailand through its embassies in Malaysia and Indonesia to invite the country to become a member.
"In view of the election until today, the prime minister has not been officially elected, we have to hold back for a while.
"They have mentioned that they will consider the request to come on board of the council and indicated their willingness to talk to us," he told the media during the 10th International Planters Conference 2023 (IPC 2023) today. New Straits Times
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CPOPC aims 93% of world's palm oil producing countries to become members by next year
KUALA LUMPUR: The Council of Palm Oil Producing Countries (CPOPC) aims to have 93 per cent of the world’s palm oil producing countries as members by next year, especially once countries such as Thailand, Papua New Guinea, Colombia, Ghana and Nigeria are on board.
Deputy Secretary General of CPOPC Datuk Nageeb Wahab said the council has been trying to bring in countries from all continents to join the council and these countries are in the process of becoming members at the moment.
"We have rectified our charter and in our charter within the next two years, which is one year ago that all have to become our board of members. So, we got a timeline for another year and we are optimistic that they will come on board.
"They are interested but because of the countries’ legislative process, it’s getting delayed,” he said at a press conference after the opening ceremony of the 10th International Planters Conference here today. The StarMY
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Malaysia end-May palm oil stocks surge as output swells
KUALA LUMPUR (June 12): Malaysia's end-May palm oil inventories rose for the first time in four months, after output surged to its highest level so far this year, data from the nation's palm oil board showed on Monday (June 12).
Stockpiles in the world's second-largest producer rose 12.63% from the month before to 1.69 million tonnes, the Malaysian Palm Oil Board (MPOB) said.
Production in May swelled 26.8% from April to 1.52 million tonnes, the highest since December, helped by more harvesting days and as a shortage of labour continue to ease.
Harvesting is in full force possibly due to the return of migrant workers after a pandemic-induced labour shortage, signalling the possibility of good production continuing through the second half of the year, a Kuala Lumpur-based trader said. The Edge Malaysia
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Indonesia's PalmCo plans $500mln IPO this year -sources
PalmCo is a unit of state agricultural group Perkebunan Nusantara (PTPN) III and Bloomberg first reported the IPO
JAKARTA/SINGAPORE - Indonesian palm oil producer PalmCo plans an initial public offering in Jakarta in the fourth quarter which could raise about $500 million, two sources familiar with the matter said.
PalmCo is a unit of state agricultural group Perkebunan Nusantara (PTPN) III and Bloomberg first reported the IPO, citing PTPN President Director Mohammad Abdul Ghani in an interview.
When contacted by Reuters on Monday, Bambang Agustian, PTPN's corporate secretary, confirmed the company is targeting a fourth-quarter listing, but declined to comment on the proceeds.
"The IPO funds will be allocated for investment that is related to increasing company value, such as technical culture improvement, investing in downstream business and the use of renewable energy in relation to decarbonisation efforts," he told Reuters.
The company has appointed Mandiri Sekuritas, DBS, BNP Paribas and CIMB as underwriters for PalmCo's IPO, he added. Zawya
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June 11, 2023
Discriminatory EU rules squeeze Malaysia’s palm oil sector, says Fadillah
THE European Union Deforestation-free Regulation (EUDR) and several other rules introduced by Europe are discriminatory towards restricting businesses and Malaysia’s palm oil industry, said Deputy Prime Minister Fadillah Yusof.
He said the regulation, in addition to the “European Green Deal”, is a proposal to restrict the entry of products from Malaysia, which are more productive and progressive compared with products produced in Europe.
“For example, compared with our palm oil, Europe’s soy oil cultivation needs a larger land for production and they have to throw (the produce) away and replant to get results, unlike oil palm … which (bear fruit) or produce oil for up to 25 years.
“So our costs will be lower. For (Europe) to compete with us, it has introduced many things that can increase our business costs,” he told reporters after attending a discussion on rubber in Kampung Charok Gorok, Baling, today. The Malaysian Insight
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Fadillah: EU's trade practices against Malaysia, Indonesia palm oil to be discussed at Asean level
BALING: Malaysia and Indonesia have reached an understanding to discuss the European Union (EU) discriminatory trade practices against palm oil at the Association of Southeast Asian Nations (Asean).
Deputy Prime Minister Datuk Seri Fadillah Yusof said Indonesia, as the current chair of Asean, had agreed on the matter.
"This is part of the ongoing joint effort between Malaysia and Indonesia to fight any discriminatory trade practices against the agricommodity sector in both nations," he said after meeting rubber smallholders in Kampung Charok Garok here under the ministry's Trek Community Programme for the northern states.
He said a senior EU official would be visiting Malaysia and Indonesia next week for further engagement on the issue.
"We will discuss with the EU official, in line with our stand that there should be engagements so that any guideline to be issued by EU must only be done after taking into account our views," he said.
The visit is a follow up to Malaysia-Indonesia joint trade mission to the EU last month to defend the palm oil industry following the implementation of the European Union Deforestation Regulation (EUDR). New Straits Times
Discriminatory EU rules squeeze Malaysia’s palm oil sector, says Fadillah
THE European Union Deforestation-free Regulation (EUDR) and several other rules introduced by Europe are discriminatory towards restricting businesses and Malaysia’s palm oil industry, said Deputy Prime Minister Fadillah Yusof.
He said the regulation, in addition to the “European Green Deal”, is a proposal to restrict the entry of products from Malaysia, which are more productive and progressive compared with products produced in Europe.
“For example, compared with our palm oil, Europe’s soy oil cultivation needs a larger land for production and they have to throw (the produce) away and replant to get results, unlike oil palm … which (bear fruit) or produce oil for up to 25 years.
“So our costs will be lower. For (Europe) to compete with us, it has introduced many things that can increase our business costs,” he told reporters after attending a discussion on rubber in Kampung Charok Gorok, Baling, today. The Malaysian Insight
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Fadillah: EU's trade practices against Malaysia, Indonesia palm oil to be discussed at Asean level
BALING: Malaysia and Indonesia have reached an understanding to discuss the European Union (EU) discriminatory trade practices against palm oil at the Association of Southeast Asian Nations (Asean).
Deputy Prime Minister Datuk Seri Fadillah Yusof said Indonesia, as the current chair of Asean, had agreed on the matter.
"This is part of the ongoing joint effort between Malaysia and Indonesia to fight any discriminatory trade practices against the agricommodity sector in both nations," he said after meeting rubber smallholders in Kampung Charok Garok here under the ministry's Trek Community Programme for the northern states.
He said a senior EU official would be visiting Malaysia and Indonesia next week for further engagement on the issue.
"We will discuss with the EU official, in line with our stand that there should be engagements so that any guideline to be issued by EU must only be done after taking into account our views," he said.
The visit is a follow up to Malaysia-Indonesia joint trade mission to the EU last month to defend the palm oil industry following the implementation of the European Union Deforestation Regulation (EUDR). New Straits Times
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June 10, 2023
Indonesia, Malaysia to Fight EU Rules on Palm Oil
President Joko “Jokowi” Widodo and Malaysian Prime Minister Anwar Ibrahim reiterated on Thursday their respective countries’ commitment to protecting their palm oil products, saying that the world’s two largest palm oil producers would continue to cooperate closely to fight the impending European Union deforestation policy. It was unprecedented, Anwar said after his meeting with Jokowi held behind closed doors at Putrajaya, that the two neighbors were “on the same page” about defending their palm oil commodity on the world stage. The call for collaboration is the latest effort by Kuala Lumpur and Jakarta to contest the EU Deforestation Regulation (EUDR), which stipulates a ban on imports considered to be driving deforestation. It would be a direct blow to the two Southeast Asian countries, if it were to gain the final approval of EU member states. The Jakarta Post
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EU Didn’t Consult with Indonesia Before Passing EUDR: Minister
Jakarta. Indonesia once again ranted about the European Union’s anti-deforestation regulation, saying that the EU did not even consult with the palm oil-producing country before passing the law.
The European bloc has adopted the EU Deforestation-Free Regulation (EUDR) which requires operators and traders to prove their products are not produced on land subject to deforestation after Dec. 31, 2020.
They must present the geolocation coordinates of the land where the commodities and products are produced — a requirement that Indonesia finds to be troublesome for the smallholders. Palm oil, cattle, soy, coffee, cocoa, timber and rubber as well as the derivatives of the said commodities are subject to the EUDR.
"They [EU] have passed the [EUDR] without consulting with us. This is a regulation that regulates other countries. We usually issue regulations to regulate ourselves. But this one regulates operators of other countries," Chief Economic Affairs Minister Airlangga Hartarto said at a conference on the national single window system on Friday. Jakarta Globe
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Indonesia, Malaysia to fight EU law on palm oil
The world's top two palm oil producers, Indonesia and Malaysia, have teamed up to fight a new EU law aimed at preventing deforestation.
Indonesian President Joko Widodo visited Malaysia from Wednesday to Thursday for talks on the issue with Malaysian Prime Minister Anwar Ibrahim.
They discussed how to counter the regulation banning imports to the European Union of commodities from deforested land.
In joint press conference, Joko said, "We don't want commodities produced by Malaysia and Indonesia to be discriminated against in other countries."
Anwar said, "Indonesia and Malaysia stand together to defend the interests of palm oil."
They said the EU should "promptly address" what they call "discriminatory measures" and "work towards a fair and equitable resolution" of the issue. NHK Japan
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Deforestation law is ‘non-discriminative’ for palm producing countries: EU envoy
The European Union Deforestation Regulation (EUDR) does not discriminate against any countries, including Indonesia, and has offered “technical and financial support” to help upgrade the country’s smallholder farmers, the EU Ambassador to Indonesia Vincent Piket said in response to the recent speech made by President Joko “Jokowi” Widodo in Malaysia. Further discussions with Indonesia and Malaysia will be welcomed, Piket added, noting that late June will see a senior EU official paying visits to the two countries to advance talks. On Thursday, Jokowi, who met with Malaysian Prime Minister Anwar Ibrahim in Putrajaya, renewed Jakarta and Kuala Lumpur’s joint commitment to fight against palm oil “discrimination,” as part of his latest efforts to contest the EUDR. The EUDR, currently awaiting its final approval from EU member states, stipulates a ban on imports considered to be driving deforestation. The Jakarta Post
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Indonesia has 18 months before EU Deforestation Regulation enacted
Jakarta (ANTARA) - Coordinating Minister of Economic Affairs Airlangga Hartarto has said that Indonesia has 18 months remaining to act before the implementation of the European Union Deforestation-free Regulation (EUDR).
Hartarto made his remarks to Finance Minister Sri Mulyani Indrawati at a discussion organised by the Finance Ministry's Indonesian National Single Window Agency (LNSW) here on Friday.
"Mrs Finance Minister, Indonesia has 18 months remaining from now, because they intend to implement the regulation in 18 months," Hartarto said.
He said that the implementation of the European Union regulation, which would label products as originating from high-risk, standard, or low-risk countries, will burden the national logistics sector.
Indonesian commodities potentially restricted by EUDR include palm oil and its derivatives, coffee, soya, cocoa, beef, and wood, Hartarto added.
He noted that rubber, paper and leather and its derivatives are other commodities that could be potentially restricted by EUDR.
"Logistics will be our urgent issue, because before our commodities are declared as clear we cannot send them (to EU countries), or (they may request) extra verification," he said.
Hartarto opined that business competition might be another factor, besides deforestation, behind the decision to impose EUDR.
"This is a regulation created to control other countries. We usually issue a regulation for our own, but this regulation instead controls other countries," he said. Antara News
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EcoCeres invests in new biofuel production facility in Malaysia
EcoCeres, Inc. has announced a significant investment in a new biofuel production facility in Pasir Gudang, Johor, Malaysia. The facility will serve as a major production hub for hydrotreated vegetable oils (HVOs), sustainable aviation fuel (SAF) and bio-naphtha, with an annual capacity target of 350 000 t.
Used cooking oil and wastewater from palm oil mills will be used as feedstocks, which will then be turned into high-value sustainable fuels and chemicals. By integrating waste management practices into the production process, this facility contributes to Johor's efforts in waste reduction, resource conservation, and sustainable material management. More than 260 jobs will be created and will result in more employment opportunities in the surrounding towns.
“Today, thanks to EcoCeres, will mark the beginning of a process that will eventually result in the construction of a sustainable biofuel facility, which will have important repercussions not only for the state but also for the nation,” the Chief Minister of Johor Datuk Onn Hafiz Ghazi remarked.
“The presence of this biofuel production facility creates opportunities for new jobs and calls for a knowledgeable labour force in its continued operation, which is significant from an economic point of view.”
"This project will be a win-win-win partnership between EcoCeres, Johor Government, local communities as a whole for delivering a decarbonisation solution to the world. It is also a pivotal milestone in our global expansion journey" said Philip Siu, Co-Founder and CEO of EcoCeres. Hydro carbon engineering
Indonesia, Malaysia to Fight EU Rules on Palm Oil
President Joko “Jokowi” Widodo and Malaysian Prime Minister Anwar Ibrahim reiterated on Thursday their respective countries’ commitment to protecting their palm oil products, saying that the world’s two largest palm oil producers would continue to cooperate closely to fight the impending European Union deforestation policy. It was unprecedented, Anwar said after his meeting with Jokowi held behind closed doors at Putrajaya, that the two neighbors were “on the same page” about defending their palm oil commodity on the world stage. The call for collaboration is the latest effort by Kuala Lumpur and Jakarta to contest the EU Deforestation Regulation (EUDR), which stipulates a ban on imports considered to be driving deforestation. It would be a direct blow to the two Southeast Asian countries, if it were to gain the final approval of EU member states. The Jakarta Post
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EU Didn’t Consult with Indonesia Before Passing EUDR: Minister
Jakarta. Indonesia once again ranted about the European Union’s anti-deforestation regulation, saying that the EU did not even consult with the palm oil-producing country before passing the law.
The European bloc has adopted the EU Deforestation-Free Regulation (EUDR) which requires operators and traders to prove their products are not produced on land subject to deforestation after Dec. 31, 2020.
They must present the geolocation coordinates of the land where the commodities and products are produced — a requirement that Indonesia finds to be troublesome for the smallholders. Palm oil, cattle, soy, coffee, cocoa, timber and rubber as well as the derivatives of the said commodities are subject to the EUDR.
"They [EU] have passed the [EUDR] without consulting with us. This is a regulation that regulates other countries. We usually issue regulations to regulate ourselves. But this one regulates operators of other countries," Chief Economic Affairs Minister Airlangga Hartarto said at a conference on the national single window system on Friday. Jakarta Globe
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Indonesia, Malaysia to fight EU law on palm oil
The world's top two palm oil producers, Indonesia and Malaysia, have teamed up to fight a new EU law aimed at preventing deforestation.
Indonesian President Joko Widodo visited Malaysia from Wednesday to Thursday for talks on the issue with Malaysian Prime Minister Anwar Ibrahim.
They discussed how to counter the regulation banning imports to the European Union of commodities from deforested land.
In joint press conference, Joko said, "We don't want commodities produced by Malaysia and Indonesia to be discriminated against in other countries."
Anwar said, "Indonesia and Malaysia stand together to defend the interests of palm oil."
They said the EU should "promptly address" what they call "discriminatory measures" and "work towards a fair and equitable resolution" of the issue. NHK Japan
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Deforestation law is ‘non-discriminative’ for palm producing countries: EU envoy
The European Union Deforestation Regulation (EUDR) does not discriminate against any countries, including Indonesia, and has offered “technical and financial support” to help upgrade the country’s smallholder farmers, the EU Ambassador to Indonesia Vincent Piket said in response to the recent speech made by President Joko “Jokowi” Widodo in Malaysia. Further discussions with Indonesia and Malaysia will be welcomed, Piket added, noting that late June will see a senior EU official paying visits to the two countries to advance talks. On Thursday, Jokowi, who met with Malaysian Prime Minister Anwar Ibrahim in Putrajaya, renewed Jakarta and Kuala Lumpur’s joint commitment to fight against palm oil “discrimination,” as part of his latest efforts to contest the EUDR. The EUDR, currently awaiting its final approval from EU member states, stipulates a ban on imports considered to be driving deforestation. The Jakarta Post
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Indonesia has 18 months before EU Deforestation Regulation enacted
Jakarta (ANTARA) - Coordinating Minister of Economic Affairs Airlangga Hartarto has said that Indonesia has 18 months remaining to act before the implementation of the European Union Deforestation-free Regulation (EUDR).
Hartarto made his remarks to Finance Minister Sri Mulyani Indrawati at a discussion organised by the Finance Ministry's Indonesian National Single Window Agency (LNSW) here on Friday.
"Mrs Finance Minister, Indonesia has 18 months remaining from now, because they intend to implement the regulation in 18 months," Hartarto said.
He said that the implementation of the European Union regulation, which would label products as originating from high-risk, standard, or low-risk countries, will burden the national logistics sector.
Indonesian commodities potentially restricted by EUDR include palm oil and its derivatives, coffee, soya, cocoa, beef, and wood, Hartarto added.
He noted that rubber, paper and leather and its derivatives are other commodities that could be potentially restricted by EUDR.
"Logistics will be our urgent issue, because before our commodities are declared as clear we cannot send them (to EU countries), or (they may request) extra verification," he said.
Hartarto opined that business competition might be another factor, besides deforestation, behind the decision to impose EUDR.
"This is a regulation created to control other countries. We usually issue a regulation for our own, but this regulation instead controls other countries," he said. Antara News
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EcoCeres invests in new biofuel production facility in Malaysia
EcoCeres, Inc. has announced a significant investment in a new biofuel production facility in Pasir Gudang, Johor, Malaysia. The facility will serve as a major production hub for hydrotreated vegetable oils (HVOs), sustainable aviation fuel (SAF) and bio-naphtha, with an annual capacity target of 350 000 t.
Used cooking oil and wastewater from palm oil mills will be used as feedstocks, which will then be turned into high-value sustainable fuels and chemicals. By integrating waste management practices into the production process, this facility contributes to Johor's efforts in waste reduction, resource conservation, and sustainable material management. More than 260 jobs will be created and will result in more employment opportunities in the surrounding towns.
“Today, thanks to EcoCeres, will mark the beginning of a process that will eventually result in the construction of a sustainable biofuel facility, which will have important repercussions not only for the state but also for the nation,” the Chief Minister of Johor Datuk Onn Hafiz Ghazi remarked.
“The presence of this biofuel production facility creates opportunities for new jobs and calls for a knowledgeable labour force in its continued operation, which is significant from an economic point of view.”
"This project will be a win-win-win partnership between EcoCeres, Johor Government, local communities as a whole for delivering a decarbonisation solution to the world. It is also a pivotal milestone in our global expansion journey" said Philip Siu, Co-Founder and CEO of EcoCeres. Hydro carbon engineering
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June 09, 2023
Indonesia accuses EU of 'regulatory imperialism' with deforestation law
JAKARTA, June 8 (Reuters) - Indonesia sees the European Union as conducting "regulatory imperialism" with its new deforestation law, but both sides would still engage in talks on a free trade deal, an Indonesian minister said on Thursday.
Southeast Asia's biggest economy will continue negotiations for a comprehensive economic partnership agreement (CEPA) with the bloc, alongside separate consultations to resolve disputes on the EU's deforestation rules, Airlangga Hartarto, Indonesia's chief economic minister told Reuters.
Jakarta wants to close a deal on the FTA soon after seven years of deliberations, Airlangga said, but stressed Indonesia "can wait another seven years" if the EU was unwilling to recognise existing export standards, like those on sustainable palm oil and wood products, under the deforestation rules.
"We're discussing trade facilitation ... But in parallel, they're building walls. This is not fair," said Airlangga, who raised the issue in Brussels last week together with Malaysia's deputy prime minister.
Airlangga cited ongoing disputes with the EU, including its complaint at the World Trade Organization (WTO) over Indonesia's nickel ore export ban and a separate WTO case that Indonesia filed over the EU's phasing out of palm oil as biofuels' feedstock. Reuters
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President Jokowi and Prime Minister Anwar Settle Border Issues and Collaborate Against Palm Oil DiscriminationPutrajaya, Malaysia - Indonesian President Joko Widodo (Jokowi) and Malaysian Prime Minister Anwar Ibrahim discussed cooperation between Indonesia and Malaysia in various fields during a meeting at the Malaysian Prime Minister's official residence, Seri Perdana, Putrajaya, Malaysia, Thursday (08/06/2023). One of them is related to the process of negotiating territorial sea boundaries which was successfully completed after almost 18 years.
"I welcome the completion of the territorial sea border negotiations in the Sulawesi Sea and the southern Malacca Strait after 18 years of negotiation process, 18 years can be completed, thank God thanks to Dato' Seri Anwar Ibrahim," the President said in a joint press statement after the meeting.
The President also expressed hope that other border negotiation processes can be finalised in the near future, including borders in Sebatik and Sinapad-Sesai.
In addition, President Jokowi also welcomed the completion of a number of memorandums of understanding (MoUs) between the two countries, including those related to border crossing agreements, border trade agreements, halal certification, and investment promotion cooperation.
During the meeting, President Jokowi and Prime Minister Anwar also discussed the protection of Indonesian migrant workers (PMI). President Jokowi appreciated PM Anwar's commitment to strengthen the protection of migrant workers and also fair law enforcement for Indonesian workers.
"Mr Anwar and I agreed to establish a bilateral special mechanism to resolve the problems of Indonesian migrant workers," the President said.
"I also encourage the Community Learning Centre on the Peninsula to be immediately realised, and also Indonesian citizens who are in the Immigration Depot can also be immediately repatriated, and the one channel system must be optimised," he continued.
Lastly, the President encouraged collaboration to fight discrimination on palm oil and other commodities to be strengthened. According to the President, he highly appreciates the joint mission by Indonesia-Malaysia to Brussels.
"Do not let commodities produced by Malaysia, by Indonesia, be discriminated against in other countries," the President said. KEMLU
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Indonesia, Malaysia Sign Border Agreements, Pledge Joint Action on Palm Oil
President Joko Widodo and Prime Minister Anwar Ibrahim signed a number of important agreements during a meeting in Putrajaya yesterday.
Malaysia and Indonesia announced yesterday that they have settled a longstanding maritime border dispute and vowed to bolster cooperation against European regulations that are likely to impact their economically pivotal palm oil industries.
The announcement came on the first day of Indonesian President Joko “Jokowi” Widodo’s two-day visit to Malaysia, reciprocating the trip that Prime Minister Anwar Ibrahim made to Indonesia in January – his first as prime minister.
In a ceremony yesterday, the two leaders signed a number of agreements covering plans to improve border crossings, strengthen border trade, and promote investment. Far eclipsing these in significance, however, was the signing of two treaties, many years in negotiation, on the delimitation of the nations’ territorial seas in parts of the Straits of Malacca and the Sulawesi Sea.
In addition to border issues, Anwar and Jokowi also made a public pledge to fight what their joint statement described as “highly detrimental discriminatory” measures against palm oil imposed by the European Union.
In December, the EU approved the European Union Deforestation Regulation (EUDR), which is intended to “ensure that a set of key goods placed on the EU market will no longer contribute to deforestation and forest degradation in the EU and elsewhere in the world.” Given palm oil’s connection to widespread rainforest destruction and wildlife loss, imports from Indonesia and Malaysia – the world’s two largest producers of palm oil – are likely to be hit hard. The Diplomat
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Colombia’s palm oil industry braces for El Niño
Barranquilla, Colombia, Jun 8 (EFE).- With drought on the horizon as a result of the climate phenomenon known as El Niño, a meeting here of leaders of Colombia’s burgeoning palm oil industry included discussion of steps to ensure an adequate supply of water.
Growers are improving the tarps used to keep the soil moist and finding ways to make irrigation systems more efficient, the executive director of the Fedepalma industry group, Nicolas Perez, said at the conference in Barranquilla.
“In palm cultivation there is a very important thing and it is that the effects of climate are not immediately reflected in production, instead there is a delay of between 18 and 24 months,” he said.
Jose Julian Monroy, superintendent of the experimental plantation operated by the Palm Oil Research Center (Cenipalma) in the northern town of Palmar de la Sierra, told EFE that he and his colleagues are working to help growers cope with the impact of El Niño.
“From Cenipalma we have been providing the palm growers information to prepare for that condition. One of those activities is to use water efficiently,” he said. “But there is another series of activities focused on soil management, to maximize the management of water via soil management that mitigates the processes of evaporation.”
Looking beyond this year, the industry may have to make more fundamental adaptations, according to Elkin Adrian Fierro, head of operations for Luker Agricola, an agri-business conglomerate. La Prensa Latina
Indonesia accuses EU of 'regulatory imperialism' with deforestation law
JAKARTA, June 8 (Reuters) - Indonesia sees the European Union as conducting "regulatory imperialism" with its new deforestation law, but both sides would still engage in talks on a free trade deal, an Indonesian minister said on Thursday.
Southeast Asia's biggest economy will continue negotiations for a comprehensive economic partnership agreement (CEPA) with the bloc, alongside separate consultations to resolve disputes on the EU's deforestation rules, Airlangga Hartarto, Indonesia's chief economic minister told Reuters.
Jakarta wants to close a deal on the FTA soon after seven years of deliberations, Airlangga said, but stressed Indonesia "can wait another seven years" if the EU was unwilling to recognise existing export standards, like those on sustainable palm oil and wood products, under the deforestation rules.
"We're discussing trade facilitation ... But in parallel, they're building walls. This is not fair," said Airlangga, who raised the issue in Brussels last week together with Malaysia's deputy prime minister.
Airlangga cited ongoing disputes with the EU, including its complaint at the World Trade Organization (WTO) over Indonesia's nickel ore export ban and a separate WTO case that Indonesia filed over the EU's phasing out of palm oil as biofuels' feedstock. Reuters
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President Jokowi and Prime Minister Anwar Settle Border Issues and Collaborate Against Palm Oil DiscriminationPutrajaya, Malaysia - Indonesian President Joko Widodo (Jokowi) and Malaysian Prime Minister Anwar Ibrahim discussed cooperation between Indonesia and Malaysia in various fields during a meeting at the Malaysian Prime Minister's official residence, Seri Perdana, Putrajaya, Malaysia, Thursday (08/06/2023). One of them is related to the process of negotiating territorial sea boundaries which was successfully completed after almost 18 years.
"I welcome the completion of the territorial sea border negotiations in the Sulawesi Sea and the southern Malacca Strait after 18 years of negotiation process, 18 years can be completed, thank God thanks to Dato' Seri Anwar Ibrahim," the President said in a joint press statement after the meeting.
The President also expressed hope that other border negotiation processes can be finalised in the near future, including borders in Sebatik and Sinapad-Sesai.
In addition, President Jokowi also welcomed the completion of a number of memorandums of understanding (MoUs) between the two countries, including those related to border crossing agreements, border trade agreements, halal certification, and investment promotion cooperation.
During the meeting, President Jokowi and Prime Minister Anwar also discussed the protection of Indonesian migrant workers (PMI). President Jokowi appreciated PM Anwar's commitment to strengthen the protection of migrant workers and also fair law enforcement for Indonesian workers.
"Mr Anwar and I agreed to establish a bilateral special mechanism to resolve the problems of Indonesian migrant workers," the President said.
"I also encourage the Community Learning Centre on the Peninsula to be immediately realised, and also Indonesian citizens who are in the Immigration Depot can also be immediately repatriated, and the one channel system must be optimised," he continued.
Lastly, the President encouraged collaboration to fight discrimination on palm oil and other commodities to be strengthened. According to the President, he highly appreciates the joint mission by Indonesia-Malaysia to Brussels.
"Do not let commodities produced by Malaysia, by Indonesia, be discriminated against in other countries," the President said. KEMLU
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Indonesia, Malaysia Sign Border Agreements, Pledge Joint Action on Palm Oil
President Joko Widodo and Prime Minister Anwar Ibrahim signed a number of important agreements during a meeting in Putrajaya yesterday.
Malaysia and Indonesia announced yesterday that they have settled a longstanding maritime border dispute and vowed to bolster cooperation against European regulations that are likely to impact their economically pivotal palm oil industries.
The announcement came on the first day of Indonesian President Joko “Jokowi” Widodo’s two-day visit to Malaysia, reciprocating the trip that Prime Minister Anwar Ibrahim made to Indonesia in January – his first as prime minister.
In a ceremony yesterday, the two leaders signed a number of agreements covering plans to improve border crossings, strengthen border trade, and promote investment. Far eclipsing these in significance, however, was the signing of two treaties, many years in negotiation, on the delimitation of the nations’ territorial seas in parts of the Straits of Malacca and the Sulawesi Sea.
In addition to border issues, Anwar and Jokowi also made a public pledge to fight what their joint statement described as “highly detrimental discriminatory” measures against palm oil imposed by the European Union.
In December, the EU approved the European Union Deforestation Regulation (EUDR), which is intended to “ensure that a set of key goods placed on the EU market will no longer contribute to deforestation and forest degradation in the EU and elsewhere in the world.” Given palm oil’s connection to widespread rainforest destruction and wildlife loss, imports from Indonesia and Malaysia – the world’s two largest producers of palm oil – are likely to be hit hard. The Diplomat
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Colombia’s palm oil industry braces for El Niño
Barranquilla, Colombia, Jun 8 (EFE).- With drought on the horizon as a result of the climate phenomenon known as El Niño, a meeting here of leaders of Colombia’s burgeoning palm oil industry included discussion of steps to ensure an adequate supply of water.
Growers are improving the tarps used to keep the soil moist and finding ways to make irrigation systems more efficient, the executive director of the Fedepalma industry group, Nicolas Perez, said at the conference in Barranquilla.
“In palm cultivation there is a very important thing and it is that the effects of climate are not immediately reflected in production, instead there is a delay of between 18 and 24 months,” he said.
Jose Julian Monroy, superintendent of the experimental plantation operated by the Palm Oil Research Center (Cenipalma) in the northern town of Palmar de la Sierra, told EFE that he and his colleagues are working to help growers cope with the impact of El Niño.
“From Cenipalma we have been providing the palm growers information to prepare for that condition. One of those activities is to use water efficiently,” he said. “But there is another series of activities focused on soil management, to maximize the management of water via soil management that mitigates the processes of evaporation.”
Looking beyond this year, the industry may have to make more fundamental adaptations, according to Elkin Adrian Fierro, head of operations for Luker Agricola, an agri-business conglomerate. La Prensa Latina
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June 08, 2023
More collaboration between Malaysia, Indonesia to fight palm oil ‘discrimination’ The Star
More collaboration between Malaysia, Indonesia to fight palm oil ‘discrimination’ The Star
Indonesia, Malaysia aim to fight 'discrimination' against palm oil
KUALA LUMPUR, June 8 (Reuters) - Indonesian President Joko Widodo on Thursday called for better collaboration with neighbouring Malaysia to fight what he called "discrimination" against their countries' palm oil products, as a new European Union law threatens to dent exports of the commodity.
The EU passed a law this year banning imports of commodities linked to deforestation, a move that is expected to hurt palm oil.
Indonesia and Malaysia are the world's top two producers and exporters of palm oil, a commodity used in everything from lipstick to pizza.
"We need to strengthen this collaboration. We don't want commodities produced by Malaysia and Indonesia to be discriminated against in other countries," Jokowi, as the Indonesian president is known, said in a press conference in Kuala Lumpur after meeting Malaysian Prime Minister Anwar Ibrahim.
In a joint statement, the two leaders vowed to cooperate closely to address the EU's "highly detrimental discriminatory measures against palm oil".
The EU needs to promptly work towards a fair and equitable resolution, they said in the statement. Reuters
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Malaysia, Indonesia to fight EU palm oil 'discrimination'
Jokowi says collaboration should be 'strengthened' to protect commodities
KUALA LUMPUR -- Malaysia's Prime Minister Anwar Ibrahim and Indonesia's President Joko "Jokowi" Widodo met in Kuala Lumpur on Thursday, affirming their pledge to work together to fight the European Union's "discrimination" against palm oil.
Malaysia and Indonesia, the world's largest palm oil producers, have criticized the EU's new deforestation regulation, calling it harmful to small farmers in their countries.
In a joint statement released after their meeting, the two leaders called on the EU to "promptly address such discriminatory measures and work towards a fair and equitable resolution."
Jokowi also said: "I am very grateful for the collaboration in this historic joint mission to Brussels. Such collaboration should be strengthened, and we should not allow any of our commodities produced in Malaysia and Indonesia to be discriminated against by other countries."
The leaders' remarks follow a joint mission sent last week to Brussels. Malaysia was represented by Deputy Prime Minister Fadillah Yusof and Indonesia by Coordinating Minister for Economic Affairs Airlangga Hartato. Nikkei Asia
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Palm Oil News: Indonesia, Malaysia Negotiate, Defying EU’s Palm Oil Sanction
Collaboration to Resume Palm Oil Export to the EU
Palm oil is an excellent alternative to vegetable oil, not to mention its low-cost production. The increased massive demand for it also caused deforestation, clearing more land for planting palm trees. This expansion came with a huge price, such as displacing animals from their natural habitat, particularly orangutans and different bird species.
Members of the European Union are very keen on conservation and put a ban on palm oil export from Indonesia and Malaysia due to deforestation. Both countries are the leading palm oil producers and exporters. The EU’s ban on the commodity can hurt the two ASEAN country’s export industries.
“We need to strengthen this collaboration. We don’t want commodities produced by Malaysia and Indonesia to be discriminated against in other countries,” said Indonesian President Joko Widodo. ASEAN Economist
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Malaysia, Indonesia end 18-year sea border disputes, vow to cooperate in defending palm oil industry
PUTRAJAYA, Malaysia (AP) — Malaysia and Indonesia signed agreements Thursday that ended longstanding maritime border disputes and vowed to bolster cooperation to fight “highly detrimental discriminatory” measures against palm oil.
Visiting Indonesian President Joko Widodo and Malaysian Prime Minister Anwar Ibrahim witnessed the signing of two landmark treaties on the delimitation of the nations’ territorial seas in parts of the Straits of Malacca and the Sulawesi Sea. Other signed pacts included plans to improve border crossings, strengthen border trade and promote investment.
“After 18 years of negotiations ... praise be to God, it has finally been resolved,” Widodo told a joint news conference, in reference to the sea treaties.
Widodo arrived in Malaysia on Wednesday accompanied by his wife and Cabinet ministers after a short visit to Singapore. His two-day visit reciprocates Anwar’s trip to Indonesia in January, shortly after Anwar took office. AP News
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Solidaridad urges Kogi to embrace massive palm oil production
Kogi state government has been urged to embrace massive Palm oil production to increase the state’s internally generated revenue.
James Odiba, multi stakeholder platform coordinator, Solidaridad who made the call during a recent briefing in Lokoja, said that the state can leverage the opportunities in palm oil production to revamp the sector.
“Solidaridad is deliberately in Kogi to see how it could help smallholder farmers improve their standard of living through massive production of palm oil,” he said.
“We are today in three Local Government Areas of Kogi: Dekina, Ofu and Olamaboro working with over 30,000 small holder farmers in the production of palm oil, who will today give us feedback on their activities.”
“With Palm oil selling at about $3,546 per ton in the international market, Solidaridad as an experienced regional-based, solution-oriented organisation that promotes inclusive sustainable markets and development that work for the poor, to eradicate poverty.”
According to him, millions of smallholder farmers and workers earn their livelihood across the palm oil value chain, adding that an increase in productivity will impact the livelihoods positively. Business DayNG
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UK-Lords back a new law to prevent the financing of illegal deforestation, ahead of key vote
7 June 2023, London. Peers across the political spectrum this week spoke in support of Amendment 91 to the Financial Services and Markets Bill, which introduces new regulations for UK financial institutions to prevent the financing of illegal deforestation. Their voices added to the pressure from the private sector itself – with financiers representing over £1 trillion in assets under management and advice calling for the new law.
Peers will face a tight vote on the amendment soon, with Labour and Liberal Democrats backing the motion from the frontbenches. Global Witness urges the House of Lords to pass this crucial measure to protect the world’s climate-critical forests.
Labour’s Lord Livermore expressed his party’s support for the amendment, adding that it has significant backing from the UK public too:
Neither the UK government, nor individual financial institutions, can meet their net zero targets while financing deforestation and unsustainable land use, which is responsible for nearly a quarter of global greenhouse gas emissions. Over £300 billion of UK pension money is invested in high deforestation risk companies and financial institutions, according to Make My Money Matter.
Similar legislation, Schedule 17 of the Environment Act of 2021, established new due diligence obligations for large companies to prevent the import of ‘forest risk commodities’ such soy, palm oil and beef grown on land illegally deforested under local law. The government’s own expert Global Resource Initiative (GRI) Taskforce recommends extending this system to financial institutions. Global Witness
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June 07, 2023
Nigeria’s palm oil imports from Malaysia surges 353% in 4months as demand rises
Nigeria’s Palm Oil imports from Malaysia – a top global producer have surged by 353 percent in the first four months of 2023 despite local players ramping up production, data from the Malaysian Palm Oil Council shows.
Despite moves by the government, in listing crude palm oil alongside other 40 items restricted from forex access, and closing the Nigerian borders, oil palm imports into the country are still on the rise owing to the huge demand-supply gap, according to experts.
“Nigeria’s oil palm imports from Malaysia will continue to increase for the time being because our investment in the industry is still very insignificant,” Henry Olatujoye, managing director, Palmtrade and Commodities Development Nigeria Ltd, said.
“We estimated that our local/domestic consumption is averaging 2.4 million tons in a year, and our first-class developers – Okomu, Presco, and others, do not annually produce up to 800,000 tons.
“If we estimate the pocket smallholder farmers to be contributing up to a million tons, we’d still have a shortfall compared to demand,” Olatujoye added. Business Day
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Malaysia-TECHNOLOGY KEY TO COMPLYING WITH EU DEFORESTATION REGULATION, AIDS SMALLHOLDERSKUALA LUMPUR, June 6 (Bernama) -- The palm oil industry must be in tune with technological advancements as it is a crucial enabler in complying with the European Union's Deforestation Regulation (EUDR).
Software developer DIBIZ Malaysia Sdn Bhd co-founder and chief executive officer U.R. Unnithan said that technology-driven solutions offer promising ways to address the challenges when complying with EUDR.
“Real-time visibility through blockchain or Internet of Things (IoT) systems can provide transparency within supply chains, while also enabling traceability. Digital systems can aid in collecting real-time granular supply chain transaction data, monitoring deforestation activities through real-time satellite imaging, and facilitating immutable record-keeping in a digital repository at every node of the supply chain including smallholders.
“By implementing satellite imagery, remote sensing, and geospatial data, it becomes easier to track and mitigate deforestation, ensuring compliance with sustainable practices,” he told Bernama.
Moreover, he said that smallholders in the palm oil industry, who contribute 50 per cent of global output play a significant role in palm oil production, and often face structural, social, and economic barriers. Bernama
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EU Approves Law on Deforestation-free Supply Chains: What now?
The European Union Deforestation Regulation (EUDR), which aims to minimise the EU’s contribution to global deforestation, is now agreed, yet the trickiest part is still to come.
Companies will have 18 months within entry into force to apply the new obligations. This is a tight schedule considering the substantial changes that will be required in the way bulk commodities are organised. With the clock ticking, companies are concentrating their efforts on finding solutions to comply with various challenging provisions, not least the requirement to provide traceability to plot data in segregated flows. However, lack of clarity around the design of the framework and requirements is delaying the necessary organisational changes to ensure implementation will be ready in due time. There is a fundamental underestimation of the time needed for all the changes to trickle up the supply chains. Guidance from the Commission and Member States on clarifying expectations is therefore urgently needed.
Furthermore, as the law risks excluding smallholders from EU supply chains, all parties should immediately start brainstorming on how to minimise their exclusion, an effort which should be supported by the Commission, Member States, and the governments of producing countries to be effective. FEDIOL
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Palm oil and the EU’s anti-deforestation law: Why the backlash?
The EU’s new deforestation law was hailed as watershed in the fight to protect the world’s forests. So why is it provoking such a fierce backlash in Indonesia and Malaysia? In the wake of a high-level meeting in Brussels last week, Giorgio Budi Indrarto charts what went wrong, and how to rectify it.
Yet Indonesia already has a law requiring even the smallholders at the very bottom of the oil palm supply chain to provide this information: the difficulty, so far, has been in implementing it. If the EU was to offer support doing so, it could go some way in narrowing the divide, and easing the tensions, between the parties over the regulation.
The law will also require companies to provide evidence that their goods weren’t produced on land that was deforested after the end of 2020.
This also shouldn’t represent a significant barrier for Indonesia, given that deforestation for palm oil production has fallen dramatically in recent years: in 2020 it was almost 90% lower than the peak in 2012, despite palm oil production increasing.
So rather than presenting a threat to our sovereignty, the new EU regulation could offer a chance to help us implement our own laws – and redouble our efforts to stop palm oil production from destroying our tropical forests – at vast human, social and environmental costs.
But for this to work, the EU needs to abandon the unilateral approach it’s taken so far. Madani Berkelanjutan
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International Airlines Slam EU For Sustainable Fuel Mandates
The European Union’s behavior is “anti-aviation” because of mandates obliging airlines to use so-called sustainable aviation fuels as a lower-carbon alternative to ht fuel.
This is the message that the aviation industry had for the EU at its annual meeting that began today.
“I think it’s fair to portray the EU as being anti-aviation, whereas other parts of the world are very positive, pro-aviation,” the head of the International Air Transport Association, Willie Walsh, said as quoted by Euractiv and Reuters.
Earlier this year, the European Union approved new rules for the aviation industry, mandating airlines to add a minimum of 2% of sustainable aviation fuel to overall fuel by 2025 and raise this to as much as 70% by 2050.
Sustainable aviation fuel, which could reduce the emissions generated from air travel by up to 80%, is produced from waste animal fats. A recent study from energy transition advocacy Transport and Environment warned that growing demand for SAFs would create unsustainable demand for animal fats.
Another recent report warned that the surge in demand for animal fats that the SAF mandates will cause, will have negative consequences on the environment by prompting a similar-scale surge in palm oil production, again because of the limited supply of waste animal fats.
There is also a problem with cost. Currently, SAFs are several times costlier than regular jet fuel. According to the chief executive of Boeing, they would never reach price parity with the hydrocarbon fuel. Oil Price
Nigeria’s palm oil imports from Malaysia surges 353% in 4months as demand rises
Nigeria’s Palm Oil imports from Malaysia – a top global producer have surged by 353 percent in the first four months of 2023 despite local players ramping up production, data from the Malaysian Palm Oil Council shows.
Despite moves by the government, in listing crude palm oil alongside other 40 items restricted from forex access, and closing the Nigerian borders, oil palm imports into the country are still on the rise owing to the huge demand-supply gap, according to experts.
“Nigeria’s oil palm imports from Malaysia will continue to increase for the time being because our investment in the industry is still very insignificant,” Henry Olatujoye, managing director, Palmtrade and Commodities Development Nigeria Ltd, said.
“We estimated that our local/domestic consumption is averaging 2.4 million tons in a year, and our first-class developers – Okomu, Presco, and others, do not annually produce up to 800,000 tons.
“If we estimate the pocket smallholder farmers to be contributing up to a million tons, we’d still have a shortfall compared to demand,” Olatujoye added. Business Day
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Malaysia-TECHNOLOGY KEY TO COMPLYING WITH EU DEFORESTATION REGULATION, AIDS SMALLHOLDERSKUALA LUMPUR, June 6 (Bernama) -- The palm oil industry must be in tune with technological advancements as it is a crucial enabler in complying with the European Union's Deforestation Regulation (EUDR).
Software developer DIBIZ Malaysia Sdn Bhd co-founder and chief executive officer U.R. Unnithan said that technology-driven solutions offer promising ways to address the challenges when complying with EUDR.
“Real-time visibility through blockchain or Internet of Things (IoT) systems can provide transparency within supply chains, while also enabling traceability. Digital systems can aid in collecting real-time granular supply chain transaction data, monitoring deforestation activities through real-time satellite imaging, and facilitating immutable record-keeping in a digital repository at every node of the supply chain including smallholders.
“By implementing satellite imagery, remote sensing, and geospatial data, it becomes easier to track and mitigate deforestation, ensuring compliance with sustainable practices,” he told Bernama.
Moreover, he said that smallholders in the palm oil industry, who contribute 50 per cent of global output play a significant role in palm oil production, and often face structural, social, and economic barriers. Bernama
---------
EU Approves Law on Deforestation-free Supply Chains: What now?
The European Union Deforestation Regulation (EUDR), which aims to minimise the EU’s contribution to global deforestation, is now agreed, yet the trickiest part is still to come.
Companies will have 18 months within entry into force to apply the new obligations. This is a tight schedule considering the substantial changes that will be required in the way bulk commodities are organised. With the clock ticking, companies are concentrating their efforts on finding solutions to comply with various challenging provisions, not least the requirement to provide traceability to plot data in segregated flows. However, lack of clarity around the design of the framework and requirements is delaying the necessary organisational changes to ensure implementation will be ready in due time. There is a fundamental underestimation of the time needed for all the changes to trickle up the supply chains. Guidance from the Commission and Member States on clarifying expectations is therefore urgently needed.
Furthermore, as the law risks excluding smallholders from EU supply chains, all parties should immediately start brainstorming on how to minimise their exclusion, an effort which should be supported by the Commission, Member States, and the governments of producing countries to be effective. FEDIOL
---------
Palm oil and the EU’s anti-deforestation law: Why the backlash?
The EU’s new deforestation law was hailed as watershed in the fight to protect the world’s forests. So why is it provoking such a fierce backlash in Indonesia and Malaysia? In the wake of a high-level meeting in Brussels last week, Giorgio Budi Indrarto charts what went wrong, and how to rectify it.
Yet Indonesia already has a law requiring even the smallholders at the very bottom of the oil palm supply chain to provide this information: the difficulty, so far, has been in implementing it. If the EU was to offer support doing so, it could go some way in narrowing the divide, and easing the tensions, between the parties over the regulation.
The law will also require companies to provide evidence that their goods weren’t produced on land that was deforested after the end of 2020.
This also shouldn’t represent a significant barrier for Indonesia, given that deforestation for palm oil production has fallen dramatically in recent years: in 2020 it was almost 90% lower than the peak in 2012, despite palm oil production increasing.
So rather than presenting a threat to our sovereignty, the new EU regulation could offer a chance to help us implement our own laws – and redouble our efforts to stop palm oil production from destroying our tropical forests – at vast human, social and environmental costs.
But for this to work, the EU needs to abandon the unilateral approach it’s taken so far. Madani Berkelanjutan
---------
International Airlines Slam EU For Sustainable Fuel Mandates
The European Union’s behavior is “anti-aviation” because of mandates obliging airlines to use so-called sustainable aviation fuels as a lower-carbon alternative to ht fuel.
This is the message that the aviation industry had for the EU at its annual meeting that began today.
“I think it’s fair to portray the EU as being anti-aviation, whereas other parts of the world are very positive, pro-aviation,” the head of the International Air Transport Association, Willie Walsh, said as quoted by Euractiv and Reuters.
Earlier this year, the European Union approved new rules for the aviation industry, mandating airlines to add a minimum of 2% of sustainable aviation fuel to overall fuel by 2025 and raise this to as much as 70% by 2050.
Sustainable aviation fuel, which could reduce the emissions generated from air travel by up to 80%, is produced from waste animal fats. A recent study from energy transition advocacy Transport and Environment warned that growing demand for SAFs would create unsustainable demand for animal fats.
Another recent report warned that the surge in demand for animal fats that the SAF mandates will cause, will have negative consequences on the environment by prompting a similar-scale surge in palm oil production, again because of the limited supply of waste animal fats.
There is also a problem with cost. Currently, SAFs are several times costlier than regular jet fuel. According to the chief executive of Boeing, they would never reach price parity with the hydrocarbon fuel. Oil Price
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June 06, 2023
Indonesia, Malaysia seek to soften EU stance on palm oil
Indonesia and Malaysia, the world’s two largest palm oil producers, are in negotiations with their European Union (EU) counterparts, hoping the bloc will refrain from implementing stringent measures that may hammer the palm oil industry in its upcoming deforestation law. Officials from the two countries met with leaders of the EU Commission and Parliament on May 30 and 31 to negotiate the terms of upcoming legislation called the EU Deforestation Regulation (EUDR), which will tighten rules on trading commodities associated with deforestation. The talks were led by Indonesian Coordinating Economic Minister Airlangga Hartarto and Malaysian Deputy Prime Minister and Plantation and Commodities Minister Dato’ Sri Haji Fadillah Bin Haji Yusof. The Jakarta Post
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China Biodiesel Exporters Pledge Fraud Crackdown After Criticism
(Bloomberg) -- Chinese biodiesel producers pledged to improve compliance and export standards, days after European rivals called for action to stem “potentially fraudulent” shipments.
A group representing the country’s biggest producers and affiliated with the technology ministry promised closer monitoring of the quality and sourcing of biofuels. However, Chinese supplies shouldn’t be treated differently by the European Union, it said in an open letter.
“We are deeply concerned about the potential fraud in Chinese biodiesel exports,” the industry group said in the letter. “We have zero tolerance for such violations.”
That came after the European Waste-Based & Advanced Biofuels Association said surging Chinese biofuel shipments were threatening local suppliers by depressing prices. European producers say Chinese exporters may be mixing fuels with cheaper feedstocks and mislabeling them to qualify for EU incentives. The European Commission and the Dutch and German governments must take action, the association known as EWABA said. Yahoo/ Bloomberg
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BP looks to invest in biofuel feedstocks and farming ventures in bid to triple biofuel production by 2030
British multinational oil and gas company BP was considering buying stakes in biofuel feedstock producers and investing directly in farming ventures in a bid to secure supplies to meet rising global demand, a senior executive of the company told Reuters.
BP said it would triple its biofuel output by 2030 to 100,000 bpd (barrels/day) or approximately 4.5M tonnes/year, according to Reuters’ calculations.
The tripling was in line with forecasts from analysts at Barclays bank that forecast global biofuel demand to reach 30M tonnes by the end of the decade, compared with the current level of around 10M tonnes and today’s crude oil demand of around 102M bpd.
To reach its target, BP planned to build five biofuel plants processing waste feedstock by 2030, BP head of biofuels Nigel Dunn was quoted as saying in the 17 May report.
“They make perfect feedstocks for HEFA [hydroprocessed esters and fatty acids or HVO]. The problem is there's only so much of them in the world. And the more HEFA plants that get built, the more challenging the dash for those feedstocks is going to get,” Dunn said. OFI
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Malaysia-Sarawak shares comprehensive energy transition, climate crisis plans at London palm oil forum
KUCHING (June 6): Sarawak shared its comprehensive plans to tackle energy transition and the climate crisis during the International Sustainable Palm Oil Forum (ISPOF) at the Caledonian Club in London recently.
In the context of Sustainable Palm Oil production, Dr Hazland said the United Kingdom’s (UK) accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is an opportunity to strengthen economic and trade ties with the Asia-Pacific, particularly Malaysia.
“UK and Malaysia are ready to see significant trade growth opportunities through the CPTPP and the elimination of tariffs is a win-win for both countries, especially for British consumers and palm oil producers in Malaysia.
“The complexity of palm oil poses a challenge to policymakers to optimise its socio-economic benefits while reducing the negative impacts on the environment.
“Hence a balance between environmental, social, and economic impacts are the basis of policy formulation towards a sustainable development of the palm oil industry,” Dr Hazland said in a statement from the ministry today.
Themed ‘Promoting Sustainable Trade and Partnerships in the Asia Pacific’, the ISPOF was hosted by KSI Strategic Institute for Asia Pacific. The Borneo Post
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India-Assam Government and 3F Oil Palm commence oil palm plantation aiding agricultural development in Northeast India
The collaboration between 3F Oil Palm and the Assam Government aims to uplift farming communities and contribute to India's self-reliance in edible oils.
In a significant step towards promoting agricultural development in the North East region, 3F Oil Palm, the country's leading end-to-end Oil Palm Plantation and Processing company, joined hands with the State Government of Assam to organize a momentous ceremonial plantation of Oil Palm under the National Mission on Edible Oil - Oil Palm (NMEO-OP). The event took place at Bokanala, Baginadi Block, Lakhimpur, and was graced by the presence of Shri Atul Bora, Hon'ble Minister of Agriculture and Horticulture, Assam.
The collaboration between 3F Oil Palm and the Assam Government aims to uplift farming communities and contribute to India's self-reliance in edible oils. This first Oil Palm Plantation under the NMEO-OP in Assam signifies the government's commitment to the development and progress of the Oil Palm Plantation sector.
3F Oil Palm, known for its expertise in the industry, has already established a state-of-the-art oil palm nursery in Bokulbari village, Lakhimpur district, with another nursery in the pipeline at Chirang. The company's dedication to Oil Palm development and processing led to the signing of an MOU with the Government of Assam in December 2022. As part of the NMEO-OP, 3F Oil Palm aims to develop Oil Palm plantations and processing facilities in sub-zone 1-b and V-a, covering Lakhimpur and Chirang districts. India TodayNE
Indonesia, Malaysia seek to soften EU stance on palm oil
Indonesia and Malaysia, the world’s two largest palm oil producers, are in negotiations with their European Union (EU) counterparts, hoping the bloc will refrain from implementing stringent measures that may hammer the palm oil industry in its upcoming deforestation law. Officials from the two countries met with leaders of the EU Commission and Parliament on May 30 and 31 to negotiate the terms of upcoming legislation called the EU Deforestation Regulation (EUDR), which will tighten rules on trading commodities associated with deforestation. The talks were led by Indonesian Coordinating Economic Minister Airlangga Hartarto and Malaysian Deputy Prime Minister and Plantation and Commodities Minister Dato’ Sri Haji Fadillah Bin Haji Yusof. The Jakarta Post
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China Biodiesel Exporters Pledge Fraud Crackdown After Criticism
(Bloomberg) -- Chinese biodiesel producers pledged to improve compliance and export standards, days after European rivals called for action to stem “potentially fraudulent” shipments.
A group representing the country’s biggest producers and affiliated with the technology ministry promised closer monitoring of the quality and sourcing of biofuels. However, Chinese supplies shouldn’t be treated differently by the European Union, it said in an open letter.
“We are deeply concerned about the potential fraud in Chinese biodiesel exports,” the industry group said in the letter. “We have zero tolerance for such violations.”
That came after the European Waste-Based & Advanced Biofuels Association said surging Chinese biofuel shipments were threatening local suppliers by depressing prices. European producers say Chinese exporters may be mixing fuels with cheaper feedstocks and mislabeling them to qualify for EU incentives. The European Commission and the Dutch and German governments must take action, the association known as EWABA said. Yahoo/ Bloomberg
---------
BP looks to invest in biofuel feedstocks and farming ventures in bid to triple biofuel production by 2030
British multinational oil and gas company BP was considering buying stakes in biofuel feedstock producers and investing directly in farming ventures in a bid to secure supplies to meet rising global demand, a senior executive of the company told Reuters.
BP said it would triple its biofuel output by 2030 to 100,000 bpd (barrels/day) or approximately 4.5M tonnes/year, according to Reuters’ calculations.
The tripling was in line with forecasts from analysts at Barclays bank that forecast global biofuel demand to reach 30M tonnes by the end of the decade, compared with the current level of around 10M tonnes and today’s crude oil demand of around 102M bpd.
To reach its target, BP planned to build five biofuel plants processing waste feedstock by 2030, BP head of biofuels Nigel Dunn was quoted as saying in the 17 May report.
“They make perfect feedstocks for HEFA [hydroprocessed esters and fatty acids or HVO]. The problem is there's only so much of them in the world. And the more HEFA plants that get built, the more challenging the dash for those feedstocks is going to get,” Dunn said. OFI
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Malaysia-Sarawak shares comprehensive energy transition, climate crisis plans at London palm oil forum
KUCHING (June 6): Sarawak shared its comprehensive plans to tackle energy transition and the climate crisis during the International Sustainable Palm Oil Forum (ISPOF) at the Caledonian Club in London recently.
In the context of Sustainable Palm Oil production, Dr Hazland said the United Kingdom’s (UK) accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is an opportunity to strengthen economic and trade ties with the Asia-Pacific, particularly Malaysia.
“UK and Malaysia are ready to see significant trade growth opportunities through the CPTPP and the elimination of tariffs is a win-win for both countries, especially for British consumers and palm oil producers in Malaysia.
“The complexity of palm oil poses a challenge to policymakers to optimise its socio-economic benefits while reducing the negative impacts on the environment.
“Hence a balance between environmental, social, and economic impacts are the basis of policy formulation towards a sustainable development of the palm oil industry,” Dr Hazland said in a statement from the ministry today.
Themed ‘Promoting Sustainable Trade and Partnerships in the Asia Pacific’, the ISPOF was hosted by KSI Strategic Institute for Asia Pacific. The Borneo Post
---------
India-Assam Government and 3F Oil Palm commence oil palm plantation aiding agricultural development in Northeast India
The collaboration between 3F Oil Palm and the Assam Government aims to uplift farming communities and contribute to India's self-reliance in edible oils.
In a significant step towards promoting agricultural development in the North East region, 3F Oil Palm, the country's leading end-to-end Oil Palm Plantation and Processing company, joined hands with the State Government of Assam to organize a momentous ceremonial plantation of Oil Palm under the National Mission on Edible Oil - Oil Palm (NMEO-OP). The event took place at Bokanala, Baginadi Block, Lakhimpur, and was graced by the presence of Shri Atul Bora, Hon'ble Minister of Agriculture and Horticulture, Assam.
The collaboration between 3F Oil Palm and the Assam Government aims to uplift farming communities and contribute to India's self-reliance in edible oils. This first Oil Palm Plantation under the NMEO-OP in Assam signifies the government's commitment to the development and progress of the Oil Palm Plantation sector.
3F Oil Palm, known for its expertise in the industry, has already established a state-of-the-art oil palm nursery in Bokulbari village, Lakhimpur district, with another nursery in the pipeline at Chirang. The company's dedication to Oil Palm development and processing led to the signing of an MOU with the Government of Assam in December 2022. As part of the NMEO-OP, 3F Oil Palm aims to develop Oil Palm plantations and processing facilities in sub-zone 1-b and V-a, covering Lakhimpur and Chirang districts. India TodayNE
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June 05, 2023
EU rapeseed sector under pressure from surge in waste biodiesel imports
The European Union (EU)’s rapeseed sector is under pressure due to a huge increase in imported biodiesel, according to FEDIOL, the trade association representing the EU vegetable oil and protein meal industry.
Imports of biofuels classified as waste-based – hydro-treated vegetable oil (HVO) or fatty acid methyl esters (FAME) – were taking place at such scale that it had led to serious disturbances in the EU markets for rapeseed methyl ester, and consequently in the rapeseed and rapeseed oil markets, FEDIOL said in a statement on 25 May.
Over the last five months, prices for rapeseed oil had dropped by over 30% to €800/tonne (US$857/tonne), driving down physical rapeseed prices for spot delivery from €625/tonne (US$669/tonne) to €410/tonne (US$439/tonne) over the same period, the report said.
In addition, futures prices for new rapeseed crops, which provide rapeseed farmers with a price indicator, had dropped this year from about €600/tonne (US$643/tonne) in early January to around €400/tonne (US$428/tonne) by mid-May, according to FEDIOL.
“This will not only impact rapeseed farmers’ revenue, but also future planting decisions,” FEDIOL said. OFI
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Palm Oil – Transforming Sri Lanka’s Lost Opportunity into a Lucrative, Sustainable Industry
The Asian Palm Oil Alliance, a multilateral body representing the industry in Asia, Solidaridad, a global network that supports smallholder farmers and workers, and the Palm Oil Industry Association of Sri Lanka, came together at a joint press conference, held at the OPA Auditorium in Colombo 07, on the 30th of May 2023. The event shed light on the untapped potential presented by oil palm cultivation in Sri Lanka. With a focus on sustainable practices and the strengthening of rural communities, key representatives of the two organizations highlighted the immediate short, medium and long-term, economic and social gains that could be achieved through this promising, lucrative and sustainable industry.
The present legal and regulatory impediments to cultivating oil palms stand as a lost opportunity for Sri Lanka. Just like alternative crops grown to obtain vegetable oil, oil palms provide a year-round source of income for plantation workers and small plantation owners. It also holds immense potential to bolster the country’s economy on various fronts, by reducing reliance on imported edible oils, and potentially creating a lucrative export industry in the future. In fact, Solidaridad has released the “Myths and Truths of Oil Palm,” a research-based scientific study that provides information and assessments on palm oil through an in-depth literature review on research findings by over 15 leading scientists from top universities and research institutions across Indonesia, Malaysia, India and Sri Lanka. Adaderana
EU rapeseed sector under pressure from surge in waste biodiesel imports
The European Union (EU)’s rapeseed sector is under pressure due to a huge increase in imported biodiesel, according to FEDIOL, the trade association representing the EU vegetable oil and protein meal industry.
Imports of biofuels classified as waste-based – hydro-treated vegetable oil (HVO) or fatty acid methyl esters (FAME) – were taking place at such scale that it had led to serious disturbances in the EU markets for rapeseed methyl ester, and consequently in the rapeseed and rapeseed oil markets, FEDIOL said in a statement on 25 May.
Over the last five months, prices for rapeseed oil had dropped by over 30% to €800/tonne (US$857/tonne), driving down physical rapeseed prices for spot delivery from €625/tonne (US$669/tonne) to €410/tonne (US$439/tonne) over the same period, the report said.
In addition, futures prices for new rapeseed crops, which provide rapeseed farmers with a price indicator, had dropped this year from about €600/tonne (US$643/tonne) in early January to around €400/tonne (US$428/tonne) by mid-May, according to FEDIOL.
“This will not only impact rapeseed farmers’ revenue, but also future planting decisions,” FEDIOL said. OFI
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Palm Oil – Transforming Sri Lanka’s Lost Opportunity into a Lucrative, Sustainable Industry
The Asian Palm Oil Alliance, a multilateral body representing the industry in Asia, Solidaridad, a global network that supports smallholder farmers and workers, and the Palm Oil Industry Association of Sri Lanka, came together at a joint press conference, held at the OPA Auditorium in Colombo 07, on the 30th of May 2023. The event shed light on the untapped potential presented by oil palm cultivation in Sri Lanka. With a focus on sustainable practices and the strengthening of rural communities, key representatives of the two organizations highlighted the immediate short, medium and long-term, economic and social gains that could be achieved through this promising, lucrative and sustainable industry.
The present legal and regulatory impediments to cultivating oil palms stand as a lost opportunity for Sri Lanka. Just like alternative crops grown to obtain vegetable oil, oil palms provide a year-round source of income for plantation workers and small plantation owners. It also holds immense potential to bolster the country’s economy on various fronts, by reducing reliance on imported edible oils, and potentially creating a lucrative export industry in the future. In fact, Solidaridad has released the “Myths and Truths of Oil Palm,” a research-based scientific study that provides information and assessments on palm oil through an in-depth literature review on research findings by over 15 leading scientists from top universities and research institutions across Indonesia, Malaysia, India and Sri Lanka. Adaderana
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June 04, 2023
The Japanese firms and megabanks funding rainforest destruction
Roads built through untouched forest in a bid to find oil deposits or start logging. Vast areas cleared to make way for plantations and farmland. Trees cut down to become furniture, buildings and charcoal.
Brazil and Southeast Asian countries are in the midst of intense struggles against the destruction of their rainforests. And while these forests lay thousands of miles from Japan, environmentalists and economists alike say investor, company and consumer behavior are all indirectly responsible for clearing forests, polluting indigenous communities and hastening climate change.
And one organization is showing where many of these destructive investments and loans are coming from. Comprehensive datasets made available by Forests & Finance, an initiative by a coalition of environmental groups, reveal thousands of investments and loans made by Japan’s top lenders and investment funds that are impacting rainforests around the world. Japan Times
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National Palm Produce Association of Nigeria (NPPAN), Mr Alphonsus Inyang, while reacting to the president’s statement on agriculture, said attention should be given to tree crops like oil palm, cocoa, rubber, coffee, cashew, shea, dates, coconut, avocado, tea, grapes among other trees crops.
He argued that “these are the crops that can lay the foundation for an industrial nation. None of these tree or perennial crops yield for less than 40 years and rural economies can be built around crops for generational prosperity.
“President Ahmed Tinubu should not go the way of his predecessors; he should not make Nigeria a country of all agricultural commodities and import same commodities because of lack of focus on some specific commodities for primary production and processing.
“He should target some perennial commodities and get a dedicated fun to fund them in states where they have comparative advantage,” Mr Inyang said. Daily Trust
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Sri Lankan Stakeholders Call For Lifting of Ban on Palm Oil Industry
India, which is one of the largest consumers of palm oil, spends around USD 6 billion annually to import palm oil, said Managing Director, Solidaridad Asia, Dr. Shatadru Chattopadhayay.
He said that to reduce this huge import bill and to make India self-sufficient in palm oil, Indian Prime Minister Narendra Modi has launched a mega plantation drive of palm oil cultivation spanning millions of acres.
“Sri Lanka also spends around USD 200 million to import palm oil and the island too should consider the lifting of the current oil palm cultivation ban (imposed by a previous government) and start replanting.
“By doing this Sri Lanka will be transforming a lost opportunity into a lucrative and sustainable industry, he said at a press conference hosted by the Asian palm oil Alliance, a multilateral body representing the industry in Asia,” Chattopadhayay said.
He said that one common myth against the cultivation of palm oil is that it dries up water resources. “If this is correct why India would launch a mega program to grow palm oil along with countries such as Indonesia, Malaysia and Philippines and African countries,” he asked.
With over Rs. 11 billion in direct and indirect contribution to Sri Lanka’s GDP, the oil palm plantation and milling sectors play a pivotal role in the nation’s economic landscape. Sunday ObserverLK
The Japanese firms and megabanks funding rainforest destruction
Roads built through untouched forest in a bid to find oil deposits or start logging. Vast areas cleared to make way for plantations and farmland. Trees cut down to become furniture, buildings and charcoal.
Brazil and Southeast Asian countries are in the midst of intense struggles against the destruction of their rainforests. And while these forests lay thousands of miles from Japan, environmentalists and economists alike say investor, company and consumer behavior are all indirectly responsible for clearing forests, polluting indigenous communities and hastening climate change.
And one organization is showing where many of these destructive investments and loans are coming from. Comprehensive datasets made available by Forests & Finance, an initiative by a coalition of environmental groups, reveal thousands of investments and loans made by Japan’s top lenders and investment funds that are impacting rainforests around the world. Japan Times
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National Palm Produce Association of Nigeria (NPPAN), Mr Alphonsus Inyang, while reacting to the president’s statement on agriculture, said attention should be given to tree crops like oil palm, cocoa, rubber, coffee, cashew, shea, dates, coconut, avocado, tea, grapes among other trees crops.
He argued that “these are the crops that can lay the foundation for an industrial nation. None of these tree or perennial crops yield for less than 40 years and rural economies can be built around crops for generational prosperity.
“President Ahmed Tinubu should not go the way of his predecessors; he should not make Nigeria a country of all agricultural commodities and import same commodities because of lack of focus on some specific commodities for primary production and processing.
“He should target some perennial commodities and get a dedicated fun to fund them in states where they have comparative advantage,” Mr Inyang said. Daily Trust
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Sri Lankan Stakeholders Call For Lifting of Ban on Palm Oil Industry
India, which is one of the largest consumers of palm oil, spends around USD 6 billion annually to import palm oil, said Managing Director, Solidaridad Asia, Dr. Shatadru Chattopadhayay.
He said that to reduce this huge import bill and to make India self-sufficient in palm oil, Indian Prime Minister Narendra Modi has launched a mega plantation drive of palm oil cultivation spanning millions of acres.
“Sri Lanka also spends around USD 200 million to import palm oil and the island too should consider the lifting of the current oil palm cultivation ban (imposed by a previous government) and start replanting.
“By doing this Sri Lanka will be transforming a lost opportunity into a lucrative and sustainable industry, he said at a press conference hosted by the Asian palm oil Alliance, a multilateral body representing the industry in Asia,” Chattopadhayay said.
He said that one common myth against the cultivation of palm oil is that it dries up water resources. “If this is correct why India would launch a mega program to grow palm oil along with countries such as Indonesia, Malaysia and Philippines and African countries,” he asked.
With over Rs. 11 billion in direct and indirect contribution to Sri Lanka’s GDP, the oil palm plantation and milling sectors play a pivotal role in the nation’s economic landscape. Sunday ObserverLK
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June 03, 2023
Malaysia-Palm oil mission concludes on high note with UK set to recognise MSPO
LONDON – Deputy Prime Minister Datuk Seri Fadillah Yusof’s official visit to the United Kingdom (UK) ended on a high note as policymakers here have given their commitment to recognise the Malaysian Sustainable Palm Oil (MSPO) certification in the due diligence guidelines for ensuring that commodities entering the country are sustainable.
He said this transpired in the meetings with Minister of State for International Trade Nigel Huddleston and Minister of State for International Development Andrew Mitchell on Thursday.
“They were very positive, as they gave their commitment that MSPO would be among the documents recognised in the due diligence process,” he told the Malaysian media at the end of his official visit to the UK on Friday.
“In fact, they also said what they plan in terms of guidelines is that products originating from a different country that are not covered by UK laws will be bound by the producing countries’ laws,” he said.
Their statement is good news for Malaysia, said Fadillah, who is also the Plantation and Commodities Minister.
“Obviously, we would like to see this put down in black and white, but that is their initial statement and we look forward to working closely with the UK,” he said, adding that it would open up more business opportunities between Malaysia and the UK. The Malaysian Reserve
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EU Parliament backs proposed directive establishing ‘duty of corporate due diligence’
02-Jun-2023 By Jane Byrne
The EU Parliament adopted its position yesterday [Thursday June 1] for negotiations with member states on a due diligence proposal to hold companies accountable for their environmental impacts. FeedNavigator
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EU-Future of Environmental Labelling for Food Products
There is growing debate about the future of environmental labelling in the food industry. The first debate concerns number of eco-labelling schemes; the EU plans to introduce legislation to curb the number of labels in the market place. The second debate concerns the disparity between environmental impact ratings of existing schemes. Ecovia Intelligence believes the way forward is consolidation of existing labels and harmonisation of impact measurement methods.
Over the last two decades, there has been a proliferation in the number of eco-labels in the food industry. Driven by ethical consumerism and sustainability initiatives of food operators, there are now over 300 eco-labels that represent some environmental/ sustainability attributes. Organic is the dominant and most widely adopted eco-label, with European sales of certified products approaching EUR 55 billion last year.
The European Commission plans to place limits on what new eco-labels will be allowed to be introduced. The EU Green Claims Directive aims to only allow eco-labels that are more ambitious than existing ones to come into the market. It also plans to curb eco- labels introduced by national and regional governments. In a recent investigation, the EU found that almost half of the verifications were either weak or not undertaken. BioEcoActual
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India-Oil palm plantations prove to be a disaster in Mizoram
Farmers have made no money, and efforts to replace oil palm with other crops have failed because of the depleted soil.
In 2021, the Union Cabinet allocated Rs.11,040 crore for the National Mission on Edible Oils—Oil Palm, with a focus on India’s north-eastern States and the Andaman and Nicobar Islands. These regions together encompass three Global Biodiversity Hotspots, which have some of the most extensive tracts of forests in India and are home to a multitude of threatened wildlife species, medicinal plants, and wild food crops. The mission targets a land area larger than the State of Tripura for palm oil plantations.
The Mizoram experience with the crop since 2004 has been disastrous. The plantations have denuded the soil of fertility and water. Infrastructure for transportation and milling is non-existent, and the crop is left to rot after harvest. Farmers have made no money, and efforts to replace oil palm with other crops have failed because of the depleted soil. The three companies involved with oil palm plantations in Mizoram—Godrej, 3F, and Patanjali’s Ruchi Soya—face no accountability for the failure.
The Mizoram experience holds these lessons: The Hindu Frontline
Malaysia-Palm oil mission concludes on high note with UK set to recognise MSPO
LONDON – Deputy Prime Minister Datuk Seri Fadillah Yusof’s official visit to the United Kingdom (UK) ended on a high note as policymakers here have given their commitment to recognise the Malaysian Sustainable Palm Oil (MSPO) certification in the due diligence guidelines for ensuring that commodities entering the country are sustainable.
He said this transpired in the meetings with Minister of State for International Trade Nigel Huddleston and Minister of State for International Development Andrew Mitchell on Thursday.
“They were very positive, as they gave their commitment that MSPO would be among the documents recognised in the due diligence process,” he told the Malaysian media at the end of his official visit to the UK on Friday.
“In fact, they also said what they plan in terms of guidelines is that products originating from a different country that are not covered by UK laws will be bound by the producing countries’ laws,” he said.
Their statement is good news for Malaysia, said Fadillah, who is also the Plantation and Commodities Minister.
“Obviously, we would like to see this put down in black and white, but that is their initial statement and we look forward to working closely with the UK,” he said, adding that it would open up more business opportunities between Malaysia and the UK. The Malaysian Reserve
---------
EU Parliament backs proposed directive establishing ‘duty of corporate due diligence’
02-Jun-2023 By Jane Byrne
The EU Parliament adopted its position yesterday [Thursday June 1] for negotiations with member states on a due diligence proposal to hold companies accountable for their environmental impacts. FeedNavigator
---------
EU-Future of Environmental Labelling for Food Products
There is growing debate about the future of environmental labelling in the food industry. The first debate concerns number of eco-labelling schemes; the EU plans to introduce legislation to curb the number of labels in the market place. The second debate concerns the disparity between environmental impact ratings of existing schemes. Ecovia Intelligence believes the way forward is consolidation of existing labels and harmonisation of impact measurement methods.
Over the last two decades, there has been a proliferation in the number of eco-labels in the food industry. Driven by ethical consumerism and sustainability initiatives of food operators, there are now over 300 eco-labels that represent some environmental/ sustainability attributes. Organic is the dominant and most widely adopted eco-label, with European sales of certified products approaching EUR 55 billion last year.
The European Commission plans to place limits on what new eco-labels will be allowed to be introduced. The EU Green Claims Directive aims to only allow eco-labels that are more ambitious than existing ones to come into the market. It also plans to curb eco- labels introduced by national and regional governments. In a recent investigation, the EU found that almost half of the verifications were either weak or not undertaken. BioEcoActual
---------
India-Oil palm plantations prove to be a disaster in Mizoram
Farmers have made no money, and efforts to replace oil palm with other crops have failed because of the depleted soil.
In 2021, the Union Cabinet allocated Rs.11,040 crore for the National Mission on Edible Oils—Oil Palm, with a focus on India’s north-eastern States and the Andaman and Nicobar Islands. These regions together encompass three Global Biodiversity Hotspots, which have some of the most extensive tracts of forests in India and are home to a multitude of threatened wildlife species, medicinal plants, and wild food crops. The mission targets a land area larger than the State of Tripura for palm oil plantations.
The Mizoram experience with the crop since 2004 has been disastrous. The plantations have denuded the soil of fertility and water. Infrastructure for transportation and milling is non-existent, and the crop is left to rot after harvest. Farmers have made no money, and efforts to replace oil palm with other crops have failed because of the depleted soil. The three companies involved with oil palm plantations in Mizoram—Godrej, 3F, and Patanjali’s Ruchi Soya—face no accountability for the failure.
The Mizoram experience holds these lessons: The Hindu Frontline
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June 02, 2023
How Sustainable Are Sustainability Transitions in the Indonesian Palm Oil Sector?
Current shifts towards more socially equitable and environmentally friendly modes of palm oil production in Indonesia seem to be motivated by external pressure rather than genuine internal sustainability concerns. Making the sustainability transition permanent and tangible rather than temporary and superficial is an ongoing challenge.
Palm oil is the cheapest, most produced, and most consumed vegetable oil in the world. However, palm oil production has been linked to various unsustainable environmental and social practices. As palm oil plantations grow well in tropical climates, major production centres are located largely in heavily forested countries in the global South. The recent palm oil boom has therefore coincided with periods of intense deforestation. In addition, there have been highly publicised cases of child labour and worker abuse on plantations.
Indonesia is the world’s largest palm oil producer, producing around 59 percent of all palm oil in the world. It is also the world’s largest consumer of palm oil. Out of the 51.3 million tonnes of palm oil produced in Indonesia in 2022, around 35 percent was consumed domestically, and 65 percent was exported. The major destination countries of Indonesian palm oil are India, China, and Pakistan. However, as a group, the European Union is the second largest importer of Indonesian palm oil.
Within Indonesia, various civil society groups have tried to bring attention to local negative externalities of the sector like transboundary haze pollution from peat fires and native customary land conflicts. However, these issues are often overshadowed by nationalistic creeds supported by domestic campaigns like “Sawit Baik” (Palm Oil is Good), which promote palm oil as Indonesia’s “golden crop” – a mechanism for poverty alleviation among rural populations and an important source of GDP.
Black Campaigns: Is All Palm Oil Bad? International Affairs
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Palm oil dispute won't have bearing on Indonesia, Malaysia EU trade talks: minister
A dispute between the European Union and major palm oil producers Indonesia and Malaysia over a new deforestation law will have no bearing on the two countries' stalled negotiations with the bloc on free trade agreements, a Malaysian minister said on Thursday. Responding to a Financial Times report which said the talks could be delayed over the palm oil issue, commodities minister Fadillah Yusof said Malaysia's negotiations with the EU on a trade deal, which have been on hold since 2012, could be resumed if the EU would treat Malaysia with fairness and as a partner. Fadillah also said Indonesia had been negotiating on an EU FTA for seven years and was "very patient" about waiting longer. The Jakarta Post
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Brexit has brought fantastic trade opportunities with fast growing economies like Malaysia
In a week where the UK's first post-Brexit trade deals came into force with New Zealand and Australia, the Deputy Prime Minister of Malaysia has visited London to help expand trade with his country.
Malaysia and the U.K. stand on the verge of a major new step forward in our trade and investment relationship.
This is long overdue: the value of total trade between our two countries has barely increased since 2013, compared to Malaysia’s trade with other major partners.
The UK’s accession to the CPTPP expected in July will set the stage for a new phase in the bilateral relationship: it is Malaysia’s first-ever free trade agreement with the UK.
It is an extraordinary achievement that will benefit both Britain and the existing members of the trade agreement.
The UK's accession into the CPTPP, as the sixth largest economy in the world, will open up new opportunities for businesses in both our countries, as well as help to create jobs and stimulate economic growth.
The CPTPP’s ambition is not limited to trade alone.It is the current gold standard trade. Express UK
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Malaysia-Palm Oil Production Seen Surging in Malaysia as Workers Return
Supply will soar in second half of year, IOI executive says
Rapid increase in oil palm yields already evident in May
(June 2): Palm oil supply in Malaysia is set to soar as a labour crunch eases in the world’s second-biggest producer, paving the way for a bumper crop in the second half of the year, said a senior plantation executive.
The return of foreign workers to plantations has accelerated harvesting, while better oil extraction rates are improving crude palm oil production, said IOI Corp plantations director Sudhakaran Nottath Bhaskaran. Good rainfall over the past two years is also boosting the formation of fresh fruit bunches, he said during a field visit to an IOI estate in Johor. Bloomberg/ The Edge Malaysia
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Biofuels A Promising Solution for Transportation Needs
As of June 1, 2023, biofuels remain a promising solution to the challenge of replacing liquid fuels that are critical to transportation needs. These renewable fuels are derived from biological sources such as plants, algae, and animal fats. Unlike solar and wind energy, biofuels can replace liquid fuels like jet fuel, gasoline, and diesel fuel.
Various organic materials can be used to create biofuels. Animal fat, sugarcane, rice, beet, wood chippings, canola oil, corn oil, and palm oil are some of the most common sources. Additionally, vegetable oils, including soybean oil, can be used to create biodiesel. New and used animal fats are also viable sources for biodiesel production.
There are two major types of biofuels: ethanol and biodiesel. Ethanol is an alcohol fuel that can be made from various plant materials collectively known as “biomass.” Biodiesel, on the other hand, is a liquid fuel produced from renewable sources such as vegetable oils and animal fats. It is a cleaner-burning alternative to petroleum-based diesel fuel. Beststocks
How Sustainable Are Sustainability Transitions in the Indonesian Palm Oil Sector?
Current shifts towards more socially equitable and environmentally friendly modes of palm oil production in Indonesia seem to be motivated by external pressure rather than genuine internal sustainability concerns. Making the sustainability transition permanent and tangible rather than temporary and superficial is an ongoing challenge.
Palm oil is the cheapest, most produced, and most consumed vegetable oil in the world. However, palm oil production has been linked to various unsustainable environmental and social practices. As palm oil plantations grow well in tropical climates, major production centres are located largely in heavily forested countries in the global South. The recent palm oil boom has therefore coincided with periods of intense deforestation. In addition, there have been highly publicised cases of child labour and worker abuse on plantations.
Indonesia is the world’s largest palm oil producer, producing around 59 percent of all palm oil in the world. It is also the world’s largest consumer of palm oil. Out of the 51.3 million tonnes of palm oil produced in Indonesia in 2022, around 35 percent was consumed domestically, and 65 percent was exported. The major destination countries of Indonesian palm oil are India, China, and Pakistan. However, as a group, the European Union is the second largest importer of Indonesian palm oil.
Within Indonesia, various civil society groups have tried to bring attention to local negative externalities of the sector like transboundary haze pollution from peat fires and native customary land conflicts. However, these issues are often overshadowed by nationalistic creeds supported by domestic campaigns like “Sawit Baik” (Palm Oil is Good), which promote palm oil as Indonesia’s “golden crop” – a mechanism for poverty alleviation among rural populations and an important source of GDP.
Black Campaigns: Is All Palm Oil Bad? International Affairs
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Palm oil dispute won't have bearing on Indonesia, Malaysia EU trade talks: minister
A dispute between the European Union and major palm oil producers Indonesia and Malaysia over a new deforestation law will have no bearing on the two countries' stalled negotiations with the bloc on free trade agreements, a Malaysian minister said on Thursday. Responding to a Financial Times report which said the talks could be delayed over the palm oil issue, commodities minister Fadillah Yusof said Malaysia's negotiations with the EU on a trade deal, which have been on hold since 2012, could be resumed if the EU would treat Malaysia with fairness and as a partner. Fadillah also said Indonesia had been negotiating on an EU FTA for seven years and was "very patient" about waiting longer. The Jakarta Post
---------
Brexit has brought fantastic trade opportunities with fast growing economies like Malaysia
In a week where the UK's first post-Brexit trade deals came into force with New Zealand and Australia, the Deputy Prime Minister of Malaysia has visited London to help expand trade with his country.
Malaysia and the U.K. stand on the verge of a major new step forward in our trade and investment relationship.
This is long overdue: the value of total trade between our two countries has barely increased since 2013, compared to Malaysia’s trade with other major partners.
The UK’s accession to the CPTPP expected in July will set the stage for a new phase in the bilateral relationship: it is Malaysia’s first-ever free trade agreement with the UK.
It is an extraordinary achievement that will benefit both Britain and the existing members of the trade agreement.
The UK's accession into the CPTPP, as the sixth largest economy in the world, will open up new opportunities for businesses in both our countries, as well as help to create jobs and stimulate economic growth.
The CPTPP’s ambition is not limited to trade alone.It is the current gold standard trade. Express UK
---------
Malaysia-Palm Oil Production Seen Surging in Malaysia as Workers Return
Supply will soar in second half of year, IOI executive says
Rapid increase in oil palm yields already evident in May
(June 2): Palm oil supply in Malaysia is set to soar as a labour crunch eases in the world’s second-biggest producer, paving the way for a bumper crop in the second half of the year, said a senior plantation executive.
The return of foreign workers to plantations has accelerated harvesting, while better oil extraction rates are improving crude palm oil production, said IOI Corp plantations director Sudhakaran Nottath Bhaskaran. Good rainfall over the past two years is also boosting the formation of fresh fruit bunches, he said during a field visit to an IOI estate in Johor. Bloomberg/ The Edge Malaysia
---------
Biofuels A Promising Solution for Transportation Needs
As of June 1, 2023, biofuels remain a promising solution to the challenge of replacing liquid fuels that are critical to transportation needs. These renewable fuels are derived from biological sources such as plants, algae, and animal fats. Unlike solar and wind energy, biofuels can replace liquid fuels like jet fuel, gasoline, and diesel fuel.
Various organic materials can be used to create biofuels. Animal fat, sugarcane, rice, beet, wood chippings, canola oil, corn oil, and palm oil are some of the most common sources. Additionally, vegetable oils, including soybean oil, can be used to create biodiesel. New and used animal fats are also viable sources for biodiesel production.
There are two major types of biofuels: ethanol and biodiesel. Ethanol is an alcohol fuel that can be made from various plant materials collectively known as “biomass.” Biodiesel, on the other hand, is a liquid fuel produced from renewable sources such as vegetable oils and animal fats. It is a cleaner-burning alternative to petroleum-based diesel fuel. Beststocks
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June 01, 2023
Top Palm Oil Producers Lobby EU to Ease New Deforestation Rules
(Bloomberg) -- Indonesia and Malaysia, the world’s top palm-oil producers, stepped up their lobbying over the European Union’s new deforestation rules, saying they are harming their economies.
The rules will ban commodities ranging from palm oil to cocoa, as well as some manufactured products, like furniture, if they come from deforested land. Indonesia and Malaysia, which together account for about 80% of global palm oil output, argue that they will unfairly penalize smallholder farmers.
The countries called for the EU to take into account domestic certification schemes, such as Indonesian Sustainable Palm Oil, before companies have to comply with the rules in 18 months time. They also argue that the EU’s plan to designate countries as high or low risk could damage their image.
Malaysia is weighing potential trade curbs that would slow the flow of commodities to Europe and is reviewing imports from the bloc. The country’s Deputy Prime Minister Fadillah Yusof said the EU deforestation rules contributed to a 15% drop in exports to the bloc in January from a year earlier.
“There must be a proper consultation with producing countries,” he said in an interview in Brussels after meeting the EU’s climate chief Frans Timmermans. “The negative campaign on palm oil is not based on scientific facts. It’s unjust treatment as far as trade is concerned.” Bloomberg
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Indonesia and Malaysia freeze trade talks with EU over palm oil
Bloc’s new rules on products that come from land cleared of forests deemed ‘punitive and unfair’
Indonesia and Malaysia have said they will delay trade talks with the EU while they seek fairer treatment for small palm oil producers hit by the bloc’s “punitive” new rules to prevent deforestation.
Dato’ Sri Haji Fadillah bin Haji Yusof, deputy prime minister of Malaysia, told the Financial Times during a visit to Brussels on Wednesday that the EU’s recently adopted law banning the import of products that come from land cleared of forests, was “punitive and unfair treatment towards us and to smallholders in particular”.
His counterpart H.E. Airlangga Hartarto, the Indonesian minister for economic affairs, said that the policy favoured “large corporations or multinationals” that could afford the level of bureaucracy that the regulation will demand.
Indonesia, which has been negotiating with the EU over a free trade agreement for seven years, said it would not progress those talks until more leniency was given to palm oil producers under the new EU rules. “We can wait an additional seven years,” Hartarto added.
Yusof similarly said that overtures from EU officials to progress talks on a trade deal with Malaysia would depend on what action the EU took to improve the treatment of its smallholders. Financial Times
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Malaysian palm oil surges as EU trade talks get delayed
June 01, 2023 (MLN): Malaysian palm oil rose on Thursday, as trade talks with EU delayed by Indonesia and Malaysia over palm oil dispute.
The benchmark palm oil contract rose by 2.31 % to 3275 ringgit a tonne.
The rise comes after the benchmark declined yesterday by 5.94%, attributed to the latest U.S. inflation data that came in higher than expected.
Notably, the contract rose 2.24% last week due to concerns over unfavorable EL Nino weather patterns, but all gains were lost on just the first day of this week.
Indonesia lowers crude palm oil reference price to $811.68 per tonne, making export tax cheaper, as reported by Reuters.
European Union (EU) has recently adopted a law to Ban the imports of products from land cleared of trees.
Trade talks with EU are delayed by Indonesia and Malaysia as they seek better treatment for small-scale farmers.
Fadillah Yusof, Malaysia’s Deputy Prime Minister stated “punitive and unfair treatment towards us and to smallholders in particular”,
Indonesia and Malaysia are the world’s biggest palm oil producers and account for 85% of global palm oil exports.
The EU is the third largest market. Mettis Global
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No halt on Malaysia, Indonesia EU trade talks over palm oil -Malaysian minister
Neither Indonesia nor Malaysia have halted talks on their respective free trade agreements (FTA) with the European Union over a dispute about a deforestation law and its impact on small palm oil producers, Malaysia's commodities minister said on Thursday.
either Indonesia nor Malaysia have halted talks on their respective free trade agreements (FTA) with the European Union over a dispute about a deforestation law and its impact on small palm oil producers, Malaysia's commodities minister said on Thursday. Malaysia's negotiations on a possible EU FTA, which have been on hold since 2012, could be resumed if the EU would treat Malaysia with fairness and as a partner, Fadillah Yusof told reporters in Brussels, adding Indonesia had been negotiating for seven years with the EU and was "very patient" about waiting longer.
Fadillah was responding to a news report which said the talks were being frozen over the palm oil issue. Indonesia's economic ministry and trade ministry did not immediately respond to Reuters' requests for comment. Reuters
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MALAYSIA-EU FTA STALLED IN 2012, EUDR WILL BE PIVOTAL IN FRESH TALKS -- DPM FADILLAH
Fadillah, who is also Minister of Plantations and Commodities clarified a news report stating that the trade deal was discontinued due to European Union’s Deforestation Regulation (EUDR), which was only passed in December 2022.
The free trade agreement (FTA) between Malaysia and the EU was in fact launched 13 years ago in 2010 but was pushed to the back burner within two years after seven rounds of negotiations.
“If they want us to be partners, what we expect is fair treatment. A partnership is about fairness. You can’t expect us to be partners but put in restrictions and conditions.”
“So, if they want us to reconsider the FTA, then treat us as partners,” he told the Malaysian media here as he starts the second leg of his official mission and visit to Europe.
As for Indonesia, what its Coordinating Minister for Economic Affairs Dr Airlangga Hartarto said is that Jakarta has been negotiating for the last seven years and they don’t mind waiting another seven years to conclude its trade deal, said Fadillah. Bernama
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Nigeria-Knock out poverty, land degradation with palm oil production – Solidaridad urges Kogi govt
Solidaridad, a Solution-Oriented Civil Society Organisation, has called on the Kogi Government to indulge in massive Palm oil production to do away with poverty and Land degradation in the State.
Kogi Multi-Stakeholder Platform Coordinator, Mr James Odiba made the call during a 1-DayBriefing/Meeting in Lokoja.
Odiba said that Palm oil today is the most revenue-generating Commodity than petroleum, and could turn around the fortune of a nation.
“Solidaridad is deliberately in Kogi to see how it could help smallholder farmers improve their standard of living through massive production of palm oil.
“We are today in three Local Government Areas of Kogi: Dekina, Ofu and Olamaboro working with over 30,000 small holder farmers in the production of palm oil, who will today give us feedback on their activities.
“With Palm oil selling at about S3546 per ton in the international market, Solidaridad
as an experienced regional-based, solution-oriented organisation, promotes inclusive sustainable markets and development that work for the poor, to eradicate poverty,” he said. Tribune OnlineNG
Top Palm Oil Producers Lobby EU to Ease New Deforestation Rules
(Bloomberg) -- Indonesia and Malaysia, the world’s top palm-oil producers, stepped up their lobbying over the European Union’s new deforestation rules, saying they are harming their economies.
The rules will ban commodities ranging from palm oil to cocoa, as well as some manufactured products, like furniture, if they come from deforested land. Indonesia and Malaysia, which together account for about 80% of global palm oil output, argue that they will unfairly penalize smallholder farmers.
The countries called for the EU to take into account domestic certification schemes, such as Indonesian Sustainable Palm Oil, before companies have to comply with the rules in 18 months time. They also argue that the EU’s plan to designate countries as high or low risk could damage their image.
Malaysia is weighing potential trade curbs that would slow the flow of commodities to Europe and is reviewing imports from the bloc. The country’s Deputy Prime Minister Fadillah Yusof said the EU deforestation rules contributed to a 15% drop in exports to the bloc in January from a year earlier.
“There must be a proper consultation with producing countries,” he said in an interview in Brussels after meeting the EU’s climate chief Frans Timmermans. “The negative campaign on palm oil is not based on scientific facts. It’s unjust treatment as far as trade is concerned.” Bloomberg
---------
Indonesia and Malaysia freeze trade talks with EU over palm oil
Bloc’s new rules on products that come from land cleared of forests deemed ‘punitive and unfair’
Indonesia and Malaysia have said they will delay trade talks with the EU while they seek fairer treatment for small palm oil producers hit by the bloc’s “punitive” new rules to prevent deforestation.
Dato’ Sri Haji Fadillah bin Haji Yusof, deputy prime minister of Malaysia, told the Financial Times during a visit to Brussels on Wednesday that the EU’s recently adopted law banning the import of products that come from land cleared of forests, was “punitive and unfair treatment towards us and to smallholders in particular”.
His counterpart H.E. Airlangga Hartarto, the Indonesian minister for economic affairs, said that the policy favoured “large corporations or multinationals” that could afford the level of bureaucracy that the regulation will demand.
Indonesia, which has been negotiating with the EU over a free trade agreement for seven years, said it would not progress those talks until more leniency was given to palm oil producers under the new EU rules. “We can wait an additional seven years,” Hartarto added.
Yusof similarly said that overtures from EU officials to progress talks on a trade deal with Malaysia would depend on what action the EU took to improve the treatment of its smallholders. Financial Times
---------
Malaysian palm oil surges as EU trade talks get delayed
June 01, 2023 (MLN): Malaysian palm oil rose on Thursday, as trade talks with EU delayed by Indonesia and Malaysia over palm oil dispute.
The benchmark palm oil contract rose by 2.31 % to 3275 ringgit a tonne.
The rise comes after the benchmark declined yesterday by 5.94%, attributed to the latest U.S. inflation data that came in higher than expected.
Notably, the contract rose 2.24% last week due to concerns over unfavorable EL Nino weather patterns, but all gains were lost on just the first day of this week.
Indonesia lowers crude palm oil reference price to $811.68 per tonne, making export tax cheaper, as reported by Reuters.
European Union (EU) has recently adopted a law to Ban the imports of products from land cleared of trees.
Trade talks with EU are delayed by Indonesia and Malaysia as they seek better treatment for small-scale farmers.
Fadillah Yusof, Malaysia’s Deputy Prime Minister stated “punitive and unfair treatment towards us and to smallholders in particular”,
Indonesia and Malaysia are the world’s biggest palm oil producers and account for 85% of global palm oil exports.
The EU is the third largest market. Mettis Global
---------
No halt on Malaysia, Indonesia EU trade talks over palm oil -Malaysian minister
Neither Indonesia nor Malaysia have halted talks on their respective free trade agreements (FTA) with the European Union over a dispute about a deforestation law and its impact on small palm oil producers, Malaysia's commodities minister said on Thursday.
either Indonesia nor Malaysia have halted talks on their respective free trade agreements (FTA) with the European Union over a dispute about a deforestation law and its impact on small palm oil producers, Malaysia's commodities minister said on Thursday. Malaysia's negotiations on a possible EU FTA, which have been on hold since 2012, could be resumed if the EU would treat Malaysia with fairness and as a partner, Fadillah Yusof told reporters in Brussels, adding Indonesia had been negotiating for seven years with the EU and was "very patient" about waiting longer.
Fadillah was responding to a news report which said the talks were being frozen over the palm oil issue. Indonesia's economic ministry and trade ministry did not immediately respond to Reuters' requests for comment. Reuters
---------
MALAYSIA-EU FTA STALLED IN 2012, EUDR WILL BE PIVOTAL IN FRESH TALKS -- DPM FADILLAH
Fadillah, who is also Minister of Plantations and Commodities clarified a news report stating that the trade deal was discontinued due to European Union’s Deforestation Regulation (EUDR), which was only passed in December 2022.
The free trade agreement (FTA) between Malaysia and the EU was in fact launched 13 years ago in 2010 but was pushed to the back burner within two years after seven rounds of negotiations.
“If they want us to be partners, what we expect is fair treatment. A partnership is about fairness. You can’t expect us to be partners but put in restrictions and conditions.”
“So, if they want us to reconsider the FTA, then treat us as partners,” he told the Malaysian media here as he starts the second leg of his official mission and visit to Europe.
As for Indonesia, what its Coordinating Minister for Economic Affairs Dr Airlangga Hartarto said is that Jakarta has been negotiating for the last seven years and they don’t mind waiting another seven years to conclude its trade deal, said Fadillah. Bernama
---------
Nigeria-Knock out poverty, land degradation with palm oil production – Solidaridad urges Kogi govt
Solidaridad, a Solution-Oriented Civil Society Organisation, has called on the Kogi Government to indulge in massive Palm oil production to do away with poverty and Land degradation in the State.
Kogi Multi-Stakeholder Platform Coordinator, Mr James Odiba made the call during a 1-DayBriefing/Meeting in Lokoja.
Odiba said that Palm oil today is the most revenue-generating Commodity than petroleum, and could turn around the fortune of a nation.
“Solidaridad is deliberately in Kogi to see how it could help smallholder farmers improve their standard of living through massive production of palm oil.
“We are today in three Local Government Areas of Kogi: Dekina, Ofu and Olamaboro working with over 30,000 small holder farmers in the production of palm oil, who will today give us feedback on their activities.
“With Palm oil selling at about S3546 per ton in the international market, Solidaridad
as an experienced regional-based, solution-oriented organisation, promotes inclusive sustainable markets and development that work for the poor, to eradicate poverty,” he said. Tribune OnlineNG
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CSPO Watch June 2023