Palm Oil News-September 2024
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For all the news on the global palm oil industry. September 2024 Makin' it easy for you to monitor developments in the palm oil industry |
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September 30, 2024
Cocoa-producing countries call on EU to delay anti-deforestation law
Cocoa-producing countries have asked the European Union for at least two more years to comply with EU regulation intended to ensure that beans imported to Europe do not come from deforested plots. But despite the mounting pressure, the Commission says it remains focused on implementing the regulation.
In a joint declaration signed last week at the headquarters of the International Cocoa Organisation (ICCO) in Côte d'Ivoire, cocoa-producing countries said that implementation deadlines set by the EU were "unrealistic in view of the requirements of the regulation, which range from the geolocation of plots to the establishment of an exhaustive traceability system".
The EU's Deforestation Regulation (EUDR) is due to come into force from 30 December 2024, and requires companies seeking to sell designated products to prove they have not been sourced from land deforested or degraded since 2021.
With less than three months to go, the ICCO said a traceability system wasn't yet operational, while the European Commission still had not shared all the necessary documents or activated a data-processing platform involved in implementing the rules.
Protection for small producers
Cocoa producers warn that hasty implementation of the deforestation regulation could prove detrimental, particularly for small producers who risk finding themselves barred from the European market.
So as not to "add uncertainty in an already highly disrupted market", they are asking Brussels for a delay – something it has already granted to downstream players responsible for bringing finished chocolate products to market.
The ICCO is also calling for technical and financial support from the EU and industry to help implement the regulation without cutting into growers' incomes.
European opposition
As well as cocoa, the new rules also apply to palm oil, cattle, soy, coffee, timber and rubber – and any products derived from them.
They have also faced resistance from within the EU, with some member states also calling for implementation to be postponed.
Earlier this month, German Chancellor Olaf Scholz said he would push for a delay until concerns raised by Germany's newspaper publishing industry had been addressed.
Publishers – who are affected as consumers of paper, derived from wood – claim the regulation would create unmanageable bureaucratic burdens.
Meanwhile Brazil, a major supplier to the EU of several of the commodities affected, wrote to the European Commission this month calling for the regulation to be suspended and for the EU to reconsider altogether its approach to combatting deforestation.
Despite the mounting opposition, the Commission said earlier this week that the goal of implementing the EUDR as early as 30 December 2024 is still in place.
“The Commission is still working very hard on preparing the ground for the implementation of this regulation,” spokesperson Adalbert Jahnz told reporters in Brussels. RFI
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Greenpeace sues Fonterra for misleading consumers with palm kernel greenwash
Greenpeace Aotearoa is suing Fonterra for misleading customers by claiming that Anchor butter is ‘100% New Zealand grass-fed’ when up to 20% of a Fonterra dairy cow’s diet could be imported palm kernel linked to deforestation of rainforests in Southeast Asia.
A Greenpeace spokesperson served Fonterra with the lawsuit this morning at the dairy co-operative’s Auckland headquarters.
Greenpeace spokesperson Sinéad Deighton-O’Flynn says, “In yet another example of blatant greenwash from Fonterra, they have been trying to convince customers that the Anchor butter they’re buying is 100% New Zealand grass-fed when this is far from the reality.”
“Fonterra is misleading their customers through this branding, presumably to make themselves appear more environmentally friendly and sustainable,” says Deighton-O’Flynn.
“No doubt, Fonterra is claiming to be 100% grass-fed to downplay their reliance on palm kernel, as well as other fodder crops that are used for ‘intensive winter grazing’ which can see cows wallowing chest deep in mud and excrement.”
“Palm kernel is a product of the palm oil industry, an industry known for rainforest deforestation, human rights abuses, illegal operating and driving rare wildlife towards extinction. We think shoppers would be shocked to know that the block of ‘grass-fed’ butter they pick up at the supermarket could actually be linked to the destruction of orangutan habitats in Southeast Asia.”
New Zealand is the largest importer of palm kernel in the world, with the dairy industry importing nearly 2 million tonnes every year. Much of this is imported by the business AgriFeeds, which exclusively sells palm kernel to Fonterra-owned Farm Source stores.
“The misleading information on Fonterra’s packaging is a real punch in the guts to the many farmers and brands that have done the work to end their use of palm kernel. Fonterra is stuck in the past and trying to hide behind greenwash. They’ve been misleading customers for years now – and it’s time for them to face the consequences.” GreenpeaceNZ
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Greenpeace takes Fonterra to task over grass-fed claims
Palm kernel extract (PKE) is a byproduct of Southeast Asia’s palm oil industry.
The feed, while initially unappetising to cows, becomes acceptable when pasture is scarce due to its energy and protein content. The feed’s cost-effectiveness depends on its price compared to milk, DairyNZ says.
In a statement released on its website early this year, Fonterra said PKE is used as an effective supplementary feed for animals, including dairy cows in New Zealand, when there is less grass growth, such as during a drought.
“Our farmers are aware of the need to source this responsibly, and we test milk to detect if the expected low use of PKE is being exceeded,” the statement said.
“We believe our focus on influencing primary palm production is the best way to deliver sustainably produced PKE,” it said. NZ Herald
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Carbon News
A spokesperson for Fonterra confirmed they had received proceedings from Greenpeace but told Carbon News they were not able to comment further at this stage.
New Zealand is the largest importer of palm kernel in the world, with the dairy industry importing nearly 2 million tonnes every year.
For the fourth year running, Fonterra was New Zealand’s largest producer of greenhouse gas emissions, according to data gathered by the Environmental Protection Authority.
Fonterra is also a respondent in a groundbreaking case against major climate polluters, which is currently making its way through the courts.
The dairy giant was also recently accused of greenwashing by Europe’s Changing Markets Foundation’s New Merchants of Doubt report.
Late last year, Fonterra announced intentions for a 30% cut to on-farm methane emissions on average, across its farms by 2030, and its emissions reduction targets were recently approved by the London-based Science Based Targets initiative, which is the world’s top corporate climate-target verifier. Carbon NewsNZ
Cocoa-producing countries call on EU to delay anti-deforestation law
Cocoa-producing countries have asked the European Union for at least two more years to comply with EU regulation intended to ensure that beans imported to Europe do not come from deforested plots. But despite the mounting pressure, the Commission says it remains focused on implementing the regulation.
In a joint declaration signed last week at the headquarters of the International Cocoa Organisation (ICCO) in Côte d'Ivoire, cocoa-producing countries said that implementation deadlines set by the EU were "unrealistic in view of the requirements of the regulation, which range from the geolocation of plots to the establishment of an exhaustive traceability system".
The EU's Deforestation Regulation (EUDR) is due to come into force from 30 December 2024, and requires companies seeking to sell designated products to prove they have not been sourced from land deforested or degraded since 2021.
With less than three months to go, the ICCO said a traceability system wasn't yet operational, while the European Commission still had not shared all the necessary documents or activated a data-processing platform involved in implementing the rules.
Protection for small producers
Cocoa producers warn that hasty implementation of the deforestation regulation could prove detrimental, particularly for small producers who risk finding themselves barred from the European market.
So as not to "add uncertainty in an already highly disrupted market", they are asking Brussels for a delay – something it has already granted to downstream players responsible for bringing finished chocolate products to market.
The ICCO is also calling for technical and financial support from the EU and industry to help implement the regulation without cutting into growers' incomes.
European opposition
As well as cocoa, the new rules also apply to palm oil, cattle, soy, coffee, timber and rubber – and any products derived from them.
They have also faced resistance from within the EU, with some member states also calling for implementation to be postponed.
Earlier this month, German Chancellor Olaf Scholz said he would push for a delay until concerns raised by Germany's newspaper publishing industry had been addressed.
Publishers – who are affected as consumers of paper, derived from wood – claim the regulation would create unmanageable bureaucratic burdens.
Meanwhile Brazil, a major supplier to the EU of several of the commodities affected, wrote to the European Commission this month calling for the regulation to be suspended and for the EU to reconsider altogether its approach to combatting deforestation.
Despite the mounting opposition, the Commission said earlier this week that the goal of implementing the EUDR as early as 30 December 2024 is still in place.
“The Commission is still working very hard on preparing the ground for the implementation of this regulation,” spokesperson Adalbert Jahnz told reporters in Brussels. RFI
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Greenpeace sues Fonterra for misleading consumers with palm kernel greenwash
Greenpeace Aotearoa is suing Fonterra for misleading customers by claiming that Anchor butter is ‘100% New Zealand grass-fed’ when up to 20% of a Fonterra dairy cow’s diet could be imported palm kernel linked to deforestation of rainforests in Southeast Asia.
A Greenpeace spokesperson served Fonterra with the lawsuit this morning at the dairy co-operative’s Auckland headquarters.
Greenpeace spokesperson Sinéad Deighton-O’Flynn says, “In yet another example of blatant greenwash from Fonterra, they have been trying to convince customers that the Anchor butter they’re buying is 100% New Zealand grass-fed when this is far from the reality.”
“Fonterra is misleading their customers through this branding, presumably to make themselves appear more environmentally friendly and sustainable,” says Deighton-O’Flynn.
“No doubt, Fonterra is claiming to be 100% grass-fed to downplay their reliance on palm kernel, as well as other fodder crops that are used for ‘intensive winter grazing’ which can see cows wallowing chest deep in mud and excrement.”
“Palm kernel is a product of the palm oil industry, an industry known for rainforest deforestation, human rights abuses, illegal operating and driving rare wildlife towards extinction. We think shoppers would be shocked to know that the block of ‘grass-fed’ butter they pick up at the supermarket could actually be linked to the destruction of orangutan habitats in Southeast Asia.”
New Zealand is the largest importer of palm kernel in the world, with the dairy industry importing nearly 2 million tonnes every year. Much of this is imported by the business AgriFeeds, which exclusively sells palm kernel to Fonterra-owned Farm Source stores.
“The misleading information on Fonterra’s packaging is a real punch in the guts to the many farmers and brands that have done the work to end their use of palm kernel. Fonterra is stuck in the past and trying to hide behind greenwash. They’ve been misleading customers for years now – and it’s time for them to face the consequences.” GreenpeaceNZ
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Greenpeace takes Fonterra to task over grass-fed claims
Palm kernel extract (PKE) is a byproduct of Southeast Asia’s palm oil industry.
The feed, while initially unappetising to cows, becomes acceptable when pasture is scarce due to its energy and protein content. The feed’s cost-effectiveness depends on its price compared to milk, DairyNZ says.
In a statement released on its website early this year, Fonterra said PKE is used as an effective supplementary feed for animals, including dairy cows in New Zealand, when there is less grass growth, such as during a drought.
“Our farmers are aware of the need to source this responsibly, and we test milk to detect if the expected low use of PKE is being exceeded,” the statement said.
“We believe our focus on influencing primary palm production is the best way to deliver sustainably produced PKE,” it said. NZ Herald
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Carbon News
A spokesperson for Fonterra confirmed they had received proceedings from Greenpeace but told Carbon News they were not able to comment further at this stage.
New Zealand is the largest importer of palm kernel in the world, with the dairy industry importing nearly 2 million tonnes every year.
For the fourth year running, Fonterra was New Zealand’s largest producer of greenhouse gas emissions, according to data gathered by the Environmental Protection Authority.
Fonterra is also a respondent in a groundbreaking case against major climate polluters, which is currently making its way through the courts.
The dairy giant was also recently accused of greenwashing by Europe’s Changing Markets Foundation’s New Merchants of Doubt report.
Late last year, Fonterra announced intentions for a 30% cut to on-farm methane emissions on average, across its farms by 2030, and its emissions reduction targets were recently approved by the London-based Science Based Targets initiative, which is the world’s top corporate climate-target verifier. Carbon NewsNZ
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September 29, 2024
Irish cars are running on more biofuel than ever - but is it what we think it is?
The government has formed a working group on potential fraud in the sector.
THE AMOUNT OF biofuel blended into petrol and diesel sold at Irish garages surged last year by 26% – driven by government policies aimed at cutting Ireland’s intractably high greenhouse gas emissions from transport.
The increased demand was largely fed with fuels made from “palm oil mill effluent” (POME), a waste product of palm oil production in Malaysia and Indonesia that hasn’t previously been used here in large quantitites.
It’s being blended into diesel for sale at the pumps or sold as “renewable diesel”, also known as hydrotreated vegetable oil (HVO) – an increasingly popular product for commercial fleets, as companies attempt to reduce their carbon footprint.
Risk of fraud
Concerns have been raised by European governments and within the biofuel industry at home and abroad that cheaper and less environmentally friendly virgin oils (such as virgin palm oil) could be passed off as “advanced” biofuels made from waste oils (in particular POME and as used cooking oil) and sold into the European market as biodiesel.
(The biofuel blended into petrol – ethanol – is mostly made from crops such as wheat, corn, sugar and some waste products; it makes up a much smaller proportion of biofuel used in Ireland than biodiesel).
Earlier this year, France, Germany and the Netherlands intervened at a meeting of European energy ministers to call on the European Commission to strengthen inspection of biofuel production in Asia for the European market due to fraud concerns, and to refuse access to the European market to companies that refuse inspectors access.
At the same time that palm oil mill effluent (POME) imports to Ireland were surging last year – from just 2 million litres in 2022 to over 50 million litres in 2023 – one biofuel certification scheme was forced to expand its auditing in Asia and investigate firms suspected of fraud, including in the POME market.
International Sustainability and Carbon Certification (ISSC) said in April 2023 that a recent “surge” in waste-based biodiesel sales from China, claiming to be produced from POME and used cooking oil originating in Indonesia and Malaysia, had “indications pointing to a potentially dubious or fraudulent origin”.
Argus Media, a specialised energy news outlet, reported at the time that the amount of POME being exported in early 2023 by Indonesia and Malaysia seemed “more than what can reasonably be available”.
Similar concerns have dogged the used cooking oil (UCO) sector for several years. Almost half of biofuels sold in Ireland last year were made from UCO, most of it imported, particularly from China – 67 million litres in total, similar year on year.
In 2022, data was published suggesting the amount of UCO exported to the UK and Ireland from Malaysia in 2020 exceeded the maximum the country could have collected. Over 10 million litres of UCO from Malaysia were imported to Ireland last year.
There are other concerns about the sustainability of POME. Transport & Environment, an environmental NGO, told The Journal that POME supports the environmentally destructive palm industry.
It added that POME can be used to produce biogas and fertiliser in the countries where it is produced, and as such should not be used in European biofuels.
Irish industry
Tony Hennebry, chief operations officer at Green Biofuels Ireland, which produces biodiesel from used cooking oil and tallow (animal fat) collected here, said POME does not provide the same greenhouse gas savings as the biodiesel manufactured in Ireland.
Ireland has a small indigenous biofuel industry producing fuel om tallow from meat processing plants and from used cooking oil collected here.
The amount of Irish biofuels sold here increased last year to 59 million litres, 15% of the total used.
Sean Finan of the Irish Bioenergy Association said more policy support to incentivise use of Irish biofuels is needed.
“Our members would advocate that there should be a mechanism to ensure minimum blending of Irish biofuels to protect the sector from being displaced by imported biofuels – that’s an important measure to protect the Irish production system and encourage further indigenous production,” Finan said.
Government defends biofuels
The Department of Transport said POME meets European sustainability criteria and can be considered a “sustainable feedstock” for biofuels. It added that all biofuel used in Ireland must be certified by an approved sustainability verification scheme (such as ISSC).
It said that the risk of fraud is “being addressed at a European level through the introduction of more rigorous verification requirements”.
It said it has received assurances from the National Oil Reserves Agency regarding the sustainability of the current supply of biofuel to Ireland.
A Department working group is “considering at a high level the potential vulnerability to fraud risk” in the context of a planned increase in biofuel in Ireleand over the rest of the decade, as the country attempts to meet its climate goals.
However, it added that this group was “not an investigative body” and would not be able to investigate any allegations of fraud.
‘Cleaning up’ the industry
Kevin McPartlan of Fuels for Ireland, which represents fuel importers and retailers, said his members “comply and go beyond” and are “pushing government for more enforcement” against potential fraud in the sector.
“It’s imposible to imagine a situation where there has been no fraud on a global basis where there have been such incentives to do it – but that’s a long way from saying there is widespread fraud and fuel is prone to it in Ireland,” McPartlan said.
He said the implementation of a new EU biofuel database later this year should help to “clean up” the global industry.
He said that POME should not be “lumped together” with virgin palm oil (which has been used to make biofuels for the Irish market in the poast) as the two were completely different. He said it wasn’t only the fuel industry claiming POME was an “advanced” – i.e. more sustainable – biofuel but in fact that was the European Commission’s view.
McPartlan added that he himself drives an electric vehicle, but he believes biofuels have to be part of Ireland’s transport decarbonsiation.
“We are absolutely failing to hit emission targets. We can’t just keep saying we’re going to do more of the same,” he said.
There is frustration in the Irish fuel and biofuel industry at a perceived emphasis up until now on electric vehicles and home heat pumps to cut emissions, rather than biofuels for both transport and home heating (HVO can be used in place of heating oil).
However, government backing for biofuels is clear, with mandatory targets for the amount of biofuel that has to be used here becoming more ambitious every year – hence the expansion in their use in 2023.
Some companies are switching their entire fleets to HVO to cut their reported emissions and burnish their green credentials. The Journal IE
--------
No Bull | The Five Spot on US renewable fuels and incentives
Susan Stroud
1 | Farmers First!
Tuesday marked an important day for U.S. farmers as politicians on both sides of the aisle introduced the Farmer First Fuel Incentives Act which would require the Treasury Dept to restrict eligibility of the 45Z tax credit to renewable fuels MADE ONLY FROM DOMESTICALLY SOURCED FEEDSTOCKS in addition to extending the credit until December 31, 2034 versus the current law which expires December 31, 2027.
In recent weeks and months U.S. agriculture groups like the Renewable Fuels Association, Growth Energy, National Oilseed Processors Association and countless other U.S. soy and corn groups have fighting hard in DC for legislation to ensure U.S. farmers' tax dollars are not subsidizing foreign feedstock imports. It is a long way from law but we have to start somewhere!
2 | Greasy
Looking back at biomass-based diesel feedstock demand for the first half of the year the past four years - it is easy to see where the growth in demand lies: tallow and used cooking oil - both of which are heavily dependent on imports.
Tallow use in biomass-based diesels has increased an astounding 357% since FH 2021, alongside used cooking oil - up 151%.
While domestic feedstocks like soybean and corn oil have seen demand increase on a tonnage basis, their percentage-share of overall feedstock demand and growth relative to years past has been relatively mild compared with that of tallow and UCO.
3 | Out with the old… in with the new…
The U.S. produced a record 295 million gallons of renewable diesel in June.
We have now produced more renewable diesel than traditional biodiesel every single month since November 2022 and June 2024 marked an big milestone as this was the first time renewable diesel production has been more than double that of biodiesel in the same month.
4 | Four Hundred!
Thanks to the jump in renewable diesel production - combined renewable & biodiesel production hit a record high of 436 million gallons - surpassing the 400 mark for the first time on record.
Biodiesel production continues to decline (slowly), down 3% the past 12 months while renewable diesel production is off like a rocket - up nearly 50% during that same time.
5 | WHAT A CHART
A short 14 months ago soybean oil was trading at a $700 premium to palm oil on a per tonne basis. Going home Friday, nearby bean oil was at a $30/tonne discount to palm -incredible!
Veg oils & their price relationships have never been so important to US ags! Globe and Mail/ Barchart
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Dayak’s Oil Palm Planters Association rebukes Human Rights Watch call on EUDR listing
KUCHING (Sept 29): The Dayak’s Oil Palm Planters Association (Doppa), a non-profit organisation which protects the interests of the indigenous palm oil smallholders, has issued a rebuke against the Human Rights Watch (HRW) who called on the European Union to list Sarawak as ‘high-risk’ for deforestation.
In expressing his displeasure, Doppa president Napolean R Ningkos described the call by the non-governmental organisation (NGO) as ‘offensive’.
He added the call was a threat to the livelihoods of indigenous palm oil farmers in Sarawak since most of them depend on fair market access for stable incomes.
“HRW should have consulted with us before including Sarawak’s palm oil in their negative campaign,” he said in a statement yesterday.
It is understood that Doppa represents more than 40,000 Dayak palm oil smallholders, and every member represents a family whose livelihoods and future are derived from the family’s small-scale palm oil farm.
“If you consider our indigenous friends and relatives who work with us in our farms to make a living, this call by HRW will send us back to living in the forests.
“We have fought too hard to get our rights to join a developed society, thus we should not stay silent while HRW misrepresents the facts about Sarawak,” Napolean stressed, adding that Doppa has been steadfast in voicing its opposition to EU’s deforestation regulation (EUDR).
When making the call, HRW included naturally regenerating forests as part of deforestation in Sarawak, which Doppa sees as a clever exploitation of the EUDR by the NGO.
In rubbishing the call, Doppa claimed that the definition of ‘forest’ in the EUDR is an attack on Sarawak natives’ rights to decide what to do with their ancestral land.
Doppa also claimed that HRW was out to sustain the exploitation by reporting that there are millions of hectares of ancient rainforests in Sarawak at risk of being razed for palm oil.
To this, Napolean said: “Naturally regenerating forests are not ancient forests. If we are to believe HRW and the EU definition of forests, then the land clearing done by my cousin three years ago is now a ‘forest’ as the natural regeneration has shrubs over five metres tall. Would the satellite mapping of EUDR exclude Sarawak palm oil because of this?
“Also, the EU’s definition of natural forest must not be applied to Native Customary Rights (NCR) land in Sarawak, considering the area developed much earlier before the introduction of the EUDR,” he argued, adding that cultivating NCR land for palm oil plantation is important for improving the socio-economic status of Dayak residing in rural areas.
Furthermore, Napolean said the EUDR’s restrictions on the opening of new planting areas for palm oil deny the indigenous communities’ rights to cultivate their land and break free from the shackles of poverty.
Doppa argued that the EU’s failure in engaging with indigenous communities prior to the introduction of its regulation is now being used by NGOs to push their agenda against palm oil.
Doppa also explained that the Sarawak government’s land-use policies are very clear and transparent, stating that no new planting of palm oil is allowed on state land except on NCR land, aside from introducing a mechanism to verify the NCR land status through one-stop centres and encouraging the Dayak to plant palm oil on their NCR lands to improve their income.
“As of September 2024, 1.13 million hectares of an estimated two million hectares of native customary lands have been mapped out in Sarawak.
“This completely refutes HRW claims that native land claims in Sarawak require additional scrutiny by the EU,” Napolean said. The Borneo Post
Irish cars are running on more biofuel than ever - but is it what we think it is?
The government has formed a working group on potential fraud in the sector.
THE AMOUNT OF biofuel blended into petrol and diesel sold at Irish garages surged last year by 26% – driven by government policies aimed at cutting Ireland’s intractably high greenhouse gas emissions from transport.
The increased demand was largely fed with fuels made from “palm oil mill effluent” (POME), a waste product of palm oil production in Malaysia and Indonesia that hasn’t previously been used here in large quantitites.
It’s being blended into diesel for sale at the pumps or sold as “renewable diesel”, also known as hydrotreated vegetable oil (HVO) – an increasingly popular product for commercial fleets, as companies attempt to reduce their carbon footprint.
Risk of fraud
Concerns have been raised by European governments and within the biofuel industry at home and abroad that cheaper and less environmentally friendly virgin oils (such as virgin palm oil) could be passed off as “advanced” biofuels made from waste oils (in particular POME and as used cooking oil) and sold into the European market as biodiesel.
(The biofuel blended into petrol – ethanol – is mostly made from crops such as wheat, corn, sugar and some waste products; it makes up a much smaller proportion of biofuel used in Ireland than biodiesel).
Earlier this year, France, Germany and the Netherlands intervened at a meeting of European energy ministers to call on the European Commission to strengthen inspection of biofuel production in Asia for the European market due to fraud concerns, and to refuse access to the European market to companies that refuse inspectors access.
At the same time that palm oil mill effluent (POME) imports to Ireland were surging last year – from just 2 million litres in 2022 to over 50 million litres in 2023 – one biofuel certification scheme was forced to expand its auditing in Asia and investigate firms suspected of fraud, including in the POME market.
International Sustainability and Carbon Certification (ISSC) said in April 2023 that a recent “surge” in waste-based biodiesel sales from China, claiming to be produced from POME and used cooking oil originating in Indonesia and Malaysia, had “indications pointing to a potentially dubious or fraudulent origin”.
Argus Media, a specialised energy news outlet, reported at the time that the amount of POME being exported in early 2023 by Indonesia and Malaysia seemed “more than what can reasonably be available”.
Similar concerns have dogged the used cooking oil (UCO) sector for several years. Almost half of biofuels sold in Ireland last year were made from UCO, most of it imported, particularly from China – 67 million litres in total, similar year on year.
In 2022, data was published suggesting the amount of UCO exported to the UK and Ireland from Malaysia in 2020 exceeded the maximum the country could have collected. Over 10 million litres of UCO from Malaysia were imported to Ireland last year.
There are other concerns about the sustainability of POME. Transport & Environment, an environmental NGO, told The Journal that POME supports the environmentally destructive palm industry.
It added that POME can be used to produce biogas and fertiliser in the countries where it is produced, and as such should not be used in European biofuels.
Irish industry
Tony Hennebry, chief operations officer at Green Biofuels Ireland, which produces biodiesel from used cooking oil and tallow (animal fat) collected here, said POME does not provide the same greenhouse gas savings as the biodiesel manufactured in Ireland.
Ireland has a small indigenous biofuel industry producing fuel om tallow from meat processing plants and from used cooking oil collected here.
The amount of Irish biofuels sold here increased last year to 59 million litres, 15% of the total used.
Sean Finan of the Irish Bioenergy Association said more policy support to incentivise use of Irish biofuels is needed.
“Our members would advocate that there should be a mechanism to ensure minimum blending of Irish biofuels to protect the sector from being displaced by imported biofuels – that’s an important measure to protect the Irish production system and encourage further indigenous production,” Finan said.
Government defends biofuels
The Department of Transport said POME meets European sustainability criteria and can be considered a “sustainable feedstock” for biofuels. It added that all biofuel used in Ireland must be certified by an approved sustainability verification scheme (such as ISSC).
It said that the risk of fraud is “being addressed at a European level through the introduction of more rigorous verification requirements”.
It said it has received assurances from the National Oil Reserves Agency regarding the sustainability of the current supply of biofuel to Ireland.
A Department working group is “considering at a high level the potential vulnerability to fraud risk” in the context of a planned increase in biofuel in Ireleand over the rest of the decade, as the country attempts to meet its climate goals.
However, it added that this group was “not an investigative body” and would not be able to investigate any allegations of fraud.
‘Cleaning up’ the industry
Kevin McPartlan of Fuels for Ireland, which represents fuel importers and retailers, said his members “comply and go beyond” and are “pushing government for more enforcement” against potential fraud in the sector.
“It’s imposible to imagine a situation where there has been no fraud on a global basis where there have been such incentives to do it – but that’s a long way from saying there is widespread fraud and fuel is prone to it in Ireland,” McPartlan said.
He said the implementation of a new EU biofuel database later this year should help to “clean up” the global industry.
He said that POME should not be “lumped together” with virgin palm oil (which has been used to make biofuels for the Irish market in the poast) as the two were completely different. He said it wasn’t only the fuel industry claiming POME was an “advanced” – i.e. more sustainable – biofuel but in fact that was the European Commission’s view.
McPartlan added that he himself drives an electric vehicle, but he believes biofuels have to be part of Ireland’s transport decarbonsiation.
“We are absolutely failing to hit emission targets. We can’t just keep saying we’re going to do more of the same,” he said.
There is frustration in the Irish fuel and biofuel industry at a perceived emphasis up until now on electric vehicles and home heat pumps to cut emissions, rather than biofuels for both transport and home heating (HVO can be used in place of heating oil).
However, government backing for biofuels is clear, with mandatory targets for the amount of biofuel that has to be used here becoming more ambitious every year – hence the expansion in their use in 2023.
Some companies are switching their entire fleets to HVO to cut their reported emissions and burnish their green credentials. The Journal IE
--------
No Bull | The Five Spot on US renewable fuels and incentives
Susan Stroud
1 | Farmers First!
Tuesday marked an important day for U.S. farmers as politicians on both sides of the aisle introduced the Farmer First Fuel Incentives Act which would require the Treasury Dept to restrict eligibility of the 45Z tax credit to renewable fuels MADE ONLY FROM DOMESTICALLY SOURCED FEEDSTOCKS in addition to extending the credit until December 31, 2034 versus the current law which expires December 31, 2027.
In recent weeks and months U.S. agriculture groups like the Renewable Fuels Association, Growth Energy, National Oilseed Processors Association and countless other U.S. soy and corn groups have fighting hard in DC for legislation to ensure U.S. farmers' tax dollars are not subsidizing foreign feedstock imports. It is a long way from law but we have to start somewhere!
2 | Greasy
Looking back at biomass-based diesel feedstock demand for the first half of the year the past four years - it is easy to see where the growth in demand lies: tallow and used cooking oil - both of which are heavily dependent on imports.
Tallow use in biomass-based diesels has increased an astounding 357% since FH 2021, alongside used cooking oil - up 151%.
While domestic feedstocks like soybean and corn oil have seen demand increase on a tonnage basis, their percentage-share of overall feedstock demand and growth relative to years past has been relatively mild compared with that of tallow and UCO.
3 | Out with the old… in with the new…
The U.S. produced a record 295 million gallons of renewable diesel in June.
We have now produced more renewable diesel than traditional biodiesel every single month since November 2022 and June 2024 marked an big milestone as this was the first time renewable diesel production has been more than double that of biodiesel in the same month.
4 | Four Hundred!
Thanks to the jump in renewable diesel production - combined renewable & biodiesel production hit a record high of 436 million gallons - surpassing the 400 mark for the first time on record.
Biodiesel production continues to decline (slowly), down 3% the past 12 months while renewable diesel production is off like a rocket - up nearly 50% during that same time.
5 | WHAT A CHART
A short 14 months ago soybean oil was trading at a $700 premium to palm oil on a per tonne basis. Going home Friday, nearby bean oil was at a $30/tonne discount to palm -incredible!
Veg oils & their price relationships have never been so important to US ags! Globe and Mail/ Barchart
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Dayak’s Oil Palm Planters Association rebukes Human Rights Watch call on EUDR listing
KUCHING (Sept 29): The Dayak’s Oil Palm Planters Association (Doppa), a non-profit organisation which protects the interests of the indigenous palm oil smallholders, has issued a rebuke against the Human Rights Watch (HRW) who called on the European Union to list Sarawak as ‘high-risk’ for deforestation.
In expressing his displeasure, Doppa president Napolean R Ningkos described the call by the non-governmental organisation (NGO) as ‘offensive’.
He added the call was a threat to the livelihoods of indigenous palm oil farmers in Sarawak since most of them depend on fair market access for stable incomes.
“HRW should have consulted with us before including Sarawak’s palm oil in their negative campaign,” he said in a statement yesterday.
It is understood that Doppa represents more than 40,000 Dayak palm oil smallholders, and every member represents a family whose livelihoods and future are derived from the family’s small-scale palm oil farm.
“If you consider our indigenous friends and relatives who work with us in our farms to make a living, this call by HRW will send us back to living in the forests.
“We have fought too hard to get our rights to join a developed society, thus we should not stay silent while HRW misrepresents the facts about Sarawak,” Napolean stressed, adding that Doppa has been steadfast in voicing its opposition to EU’s deforestation regulation (EUDR).
When making the call, HRW included naturally regenerating forests as part of deforestation in Sarawak, which Doppa sees as a clever exploitation of the EUDR by the NGO.
In rubbishing the call, Doppa claimed that the definition of ‘forest’ in the EUDR is an attack on Sarawak natives’ rights to decide what to do with their ancestral land.
Doppa also claimed that HRW was out to sustain the exploitation by reporting that there are millions of hectares of ancient rainforests in Sarawak at risk of being razed for palm oil.
To this, Napolean said: “Naturally regenerating forests are not ancient forests. If we are to believe HRW and the EU definition of forests, then the land clearing done by my cousin three years ago is now a ‘forest’ as the natural regeneration has shrubs over five metres tall. Would the satellite mapping of EUDR exclude Sarawak palm oil because of this?
“Also, the EU’s definition of natural forest must not be applied to Native Customary Rights (NCR) land in Sarawak, considering the area developed much earlier before the introduction of the EUDR,” he argued, adding that cultivating NCR land for palm oil plantation is important for improving the socio-economic status of Dayak residing in rural areas.
Furthermore, Napolean said the EUDR’s restrictions on the opening of new planting areas for palm oil deny the indigenous communities’ rights to cultivate their land and break free from the shackles of poverty.
Doppa argued that the EU’s failure in engaging with indigenous communities prior to the introduction of its regulation is now being used by NGOs to push their agenda against palm oil.
Doppa also explained that the Sarawak government’s land-use policies are very clear and transparent, stating that no new planting of palm oil is allowed on state land except on NCR land, aside from introducing a mechanism to verify the NCR land status through one-stop centres and encouraging the Dayak to plant palm oil on their NCR lands to improve their income.
“As of September 2024, 1.13 million hectares of an estimated two million hectares of native customary lands have been mapped out in Sarawak.
“This completely refutes HRW claims that native land claims in Sarawak require additional scrutiny by the EU,” Napolean said. The Borneo Post
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September 28, 2024
Germany's Chancellor Scholz increases pressure on EU Commission to delay deforestation law
Germany’s Olaf Scholz is the latest high-profile official and the first head of government to call on the European Union to postpone the European Union Deforestation Regulation (EUDR).
The German chancellor told a conference in Berlin that he had discussed the matter with Commission President Ursula von der Leyen, advocating that “the regulation be suspended until open questions raised by the BDZV (German digital and newspapers publishers association) have been clarified”.
“To put it clearly: the regulation must be practicable,” Scholz said, referencing a letter the association wrote to the German government and the Commission, in which they criticised the law’s “impractical requirements” and “drastic bureaucratic burden on companies”.
In March, the publishers’ lobby asked the Commission “to alleviate the risks, sanctions and burdens” the new law creates as its application date (30 December) draws nearer. A similar letter penned by Brazil also reached Brussels recently.
The South American giant asked the Commission to revise the regulation to avoid hurting Brazilian exports to the EU. It decried the new rules as “a unilateral and punitive instrument that ignores national laws on combating deforestation”.
Regulation under fire
The EUDR requires companies to provide evidence that commodities such as cocoa, soy, palm oil, rubber, wood and coffee do not originate from deforested lands in hopes of contributing to the reversing of forest degradation worldwide.
However, the legislation has come under fire by EU trade partners and European officials alike. A group of EU countries led by Austria called for urgent revisions to the law, and German MEP Peter Liese from the European People’s Party – von der Leyen’s political family – recently made a similar call.
Even the World Trade Organisation (WTO) chief, Ngozi Okonjo-Iweala, has reportedly asked the EU to “rethink” the ban on deforested goods and what impacts it might have on global trade.
While the EU considers it “an important turning point” in the global fight against deforestation, NGOs and industries have raised concerns over the complexity of the new rules.
Getting traceability and due diligence systems ready requires more time than the 30 December deadline, while businesses are waiting for a series of technical documents from the Commission to guide them during the implementation of the law.
Countries such as Indonesia and Malaysia, the world’s biggest palm oil producers, have pointed out that the law penalises small farmers and will financially strain those least able to afford it – something that the Commission has refuted.
EU “very far” from planting three billion trees
Around 40 per cent of Europe’s land area is covered by forests, making this one of the most forested regions in the world. These forests currently absorb around 10 per cent of the total EU emissions.
In its biodiversity strategy for 2030, an ambitious plan to protect nature and reverse the degradation of ecosystems, the EU pledged to plant three billion additional trees throughout its territories and become the first climate-neutral continent. Net greenhouse gas emissions would be halved by 2030, compared to 1990 levels.
But four years later, the bloc is “very far” from making good on its pledge, as former European Commissioner for Environment, Oceans and Fisheries Virginijus Sinkevičius admitted in an event organised in March by the EU executive.
According to the MapMyTree website, an online tool of the European Environment Agency, only 22.6 million trees have been planted so far, with Belgium, Ireland, the Czech Republic, Spain and France leading the effort.
Despite being amongst the top scorers on the list, France is also a far cry from reaching its target of planting one billion trees by 2030, as President Emmanuel Macron pledged back in 2022.
The commitment left environmentalists and researchers perplexed, with many worrying it is more focused on numbers and the commercial benefits of forestry than on actual biodiversity and climate objectives.
While various efforts to reforest the EU and stop the degradation of its ecosystems are underway, Commission President von der Leyen has called for a new incentive to boost nature protection.
“It is time to reward those who serve our planet,” von der Leyen said, explaining that this financial tool, inspired by the EU’s carbon trading scheme, will pair giving money to farmers with “nature credits” to “create a market for restoring our planet”. Euractiv
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Indonesia Can Lose $1.6 Billion Without EU Trade Pact
akarta. Indonesia will likely lose billions of American dollars in exports if it cannot close the overdue deal with the European Union, according to the country’s business association.
Jakarta has been trying to secure the Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA) that is expected to loosen trade restrictions. Negotiations have already taken place since 2016. Indonesia hopes to finish the negotiations as soon as possible, but the government admitted to have struggled to keep up with the EU’s increasing demands. There is also a possibility that the talks might go on until President-Elect Prabowo Subianto’s government which will start this October.
Shinta Kamdani, the chairwoman of the Indonesian Employers Association (Apindo), said that the lack of the trade pact could affect the attractiveness of Indonesian goods in the European market.
“Without Indonesia-EU CEPA, Indonesia can lose $1.6 billion in exports to the EU. The trade loss is equivalent to around 12 percent of Indonesia’s total exports to the EU. In the long run, we might even lose our trade surplus with the EU,” Shinta told reporters in Jakarta on Friday.
Shinta fears that the pact’s absence can take a toll on Indonesia’s labor-intensive sectors, including the layoff-struck textile industry. Indonesian garment and footwear businesses might also struggle to compete with Vietnamese goods as Hanoi already has a free trade agreement with the European bloc.
“These industries are already struggling because of the decline in export demand. They have to compete with products from other countries, particularly Vietnam,” Shinta said.
Government data showed Indonesia-EU trade amounted to $30.77 billion throughout 2023. Indonesia at the time enjoyed a $2.5 billion surplus. This further extended the positive trade balance trend in the Indonesia-EU trade over the past five years with the surplus totaling around $23.95 billion.
Postponed Talks Not A Restart Button
Umar Hadi, a senior official at the Foreign Affairs Ministry, told the same presser that the lack of a CEPA does not mean zero trade.
“We are still trading with one another even with unfinished CEPA negotiations. The trade pact is only to make our products become more competitive in Europe and vice versa,” Umar said.
The diplomat also refused to make speculations on whether the negotiations could get pushed back to Prabowo’s administration, saying that Indonesia would remain committed to closing the deal. But even if the negotiations do continue after Prabowo takes office, it does not mean that the negotiators would be back to square one again.
“There should be no problem about continuing the negotiations [if the talks do get pushed back]. It is still the same [trade agreement] document,” Umar said.
Trade Minister Zulkifli Hasan admitted Thursday that negotiations could get more challenging under Prabowo’s government, according to media reports. Prabowo reportedly plans to impose the B50 palm oil-infused biodiesel mandate after he assumes office. The B50 refers to the policy of increasing the palm oil blend in Indonesia’s biodiesel to 50 percent. The higher the palm oil blend, the more likely that Indonesia would allocate its Europe-bound crude palm oil (CPO) to the B50 program -- thus potentially setting another obstacle to the CEPA talks. Jakarta Globe
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Malaysia to support smallholders compliance with EU deforestation law
KUALA LUMPUR, Sept 27 (Reuters) - Malaysia is working on initiatives to ensure its small-scale palm oil producers are able to comply with the European Union's law banning imports of commodities linked to deforestation, its commodities minister said on Friday.
The EU Deforestation Regulation (EUDR) is due to be implemented on Dec. 30 this year, requiring companies selling soy, beef, coffee, palm oil and other products in the 27-nation bloc to prove their supply chains do not contribute to the destruction of forests
Equally, EU companies will be banned from exporting products cultivated on deforested land.
Malaysia and Indonesia, who together account for about 85% of global palm oil exports, have previously accused the EU of discriminatory policies targeting palm oil.
Malaysia's Plantation and Commodities Minister Johari Abdul Ghani said on Friday that the country's palm oil sector adopts stringent sustainability standards through its sustainability certification scheme.
He an estimated 450,000 small-scale producers contributed 27% of Malaysia's total palm oil production and the government was actively working on capacity-building initiatives to support their transition to EUDR compliance.
"This is important to ensure that the livelihoods of these smallholders are not affected by the implementation of the regulation," Johari Abdul said in a statement, without providing details on the initiatives.
Malaysia also focuses on the aspects of traceability, deforestation-free, legitimate land title, and good labour practices in line with International Labour Organization standards to ensure sustainability of its palm oil products, Johari Abdul added.
Earlier this month, state agency the Malaysian Palm Oil Council urged the EU to delay the implementation of the law to protect small farmers and ensure fair trade.
The EU has resisted calls to delay its policy and said the rules are to ensure the bloc does not contribute to forest degradation worldwide. Reuters
Germany's Chancellor Scholz increases pressure on EU Commission to delay deforestation law
Germany’s Olaf Scholz is the latest high-profile official and the first head of government to call on the European Union to postpone the European Union Deforestation Regulation (EUDR).
The German chancellor told a conference in Berlin that he had discussed the matter with Commission President Ursula von der Leyen, advocating that “the regulation be suspended until open questions raised by the BDZV (German digital and newspapers publishers association) have been clarified”.
“To put it clearly: the regulation must be practicable,” Scholz said, referencing a letter the association wrote to the German government and the Commission, in which they criticised the law’s “impractical requirements” and “drastic bureaucratic burden on companies”.
In March, the publishers’ lobby asked the Commission “to alleviate the risks, sanctions and burdens” the new law creates as its application date (30 December) draws nearer. A similar letter penned by Brazil also reached Brussels recently.
The South American giant asked the Commission to revise the regulation to avoid hurting Brazilian exports to the EU. It decried the new rules as “a unilateral and punitive instrument that ignores national laws on combating deforestation”.
Regulation under fire
The EUDR requires companies to provide evidence that commodities such as cocoa, soy, palm oil, rubber, wood and coffee do not originate from deforested lands in hopes of contributing to the reversing of forest degradation worldwide.
However, the legislation has come under fire by EU trade partners and European officials alike. A group of EU countries led by Austria called for urgent revisions to the law, and German MEP Peter Liese from the European People’s Party – von der Leyen’s political family – recently made a similar call.
Even the World Trade Organisation (WTO) chief, Ngozi Okonjo-Iweala, has reportedly asked the EU to “rethink” the ban on deforested goods and what impacts it might have on global trade.
While the EU considers it “an important turning point” in the global fight against deforestation, NGOs and industries have raised concerns over the complexity of the new rules.
Getting traceability and due diligence systems ready requires more time than the 30 December deadline, while businesses are waiting for a series of technical documents from the Commission to guide them during the implementation of the law.
Countries such as Indonesia and Malaysia, the world’s biggest palm oil producers, have pointed out that the law penalises small farmers and will financially strain those least able to afford it – something that the Commission has refuted.
EU “very far” from planting three billion trees
Around 40 per cent of Europe’s land area is covered by forests, making this one of the most forested regions in the world. These forests currently absorb around 10 per cent of the total EU emissions.
In its biodiversity strategy for 2030, an ambitious plan to protect nature and reverse the degradation of ecosystems, the EU pledged to plant three billion additional trees throughout its territories and become the first climate-neutral continent. Net greenhouse gas emissions would be halved by 2030, compared to 1990 levels.
But four years later, the bloc is “very far” from making good on its pledge, as former European Commissioner for Environment, Oceans and Fisheries Virginijus Sinkevičius admitted in an event organised in March by the EU executive.
According to the MapMyTree website, an online tool of the European Environment Agency, only 22.6 million trees have been planted so far, with Belgium, Ireland, the Czech Republic, Spain and France leading the effort.
Despite being amongst the top scorers on the list, France is also a far cry from reaching its target of planting one billion trees by 2030, as President Emmanuel Macron pledged back in 2022.
The commitment left environmentalists and researchers perplexed, with many worrying it is more focused on numbers and the commercial benefits of forestry than on actual biodiversity and climate objectives.
While various efforts to reforest the EU and stop the degradation of its ecosystems are underway, Commission President von der Leyen has called for a new incentive to boost nature protection.
“It is time to reward those who serve our planet,” von der Leyen said, explaining that this financial tool, inspired by the EU’s carbon trading scheme, will pair giving money to farmers with “nature credits” to “create a market for restoring our planet”. Euractiv
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Indonesia Can Lose $1.6 Billion Without EU Trade Pact
akarta. Indonesia will likely lose billions of American dollars in exports if it cannot close the overdue deal with the European Union, according to the country’s business association.
Jakarta has been trying to secure the Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA) that is expected to loosen trade restrictions. Negotiations have already taken place since 2016. Indonesia hopes to finish the negotiations as soon as possible, but the government admitted to have struggled to keep up with the EU’s increasing demands. There is also a possibility that the talks might go on until President-Elect Prabowo Subianto’s government which will start this October.
Shinta Kamdani, the chairwoman of the Indonesian Employers Association (Apindo), said that the lack of the trade pact could affect the attractiveness of Indonesian goods in the European market.
“Without Indonesia-EU CEPA, Indonesia can lose $1.6 billion in exports to the EU. The trade loss is equivalent to around 12 percent of Indonesia’s total exports to the EU. In the long run, we might even lose our trade surplus with the EU,” Shinta told reporters in Jakarta on Friday.
Shinta fears that the pact’s absence can take a toll on Indonesia’s labor-intensive sectors, including the layoff-struck textile industry. Indonesian garment and footwear businesses might also struggle to compete with Vietnamese goods as Hanoi already has a free trade agreement with the European bloc.
“These industries are already struggling because of the decline in export demand. They have to compete with products from other countries, particularly Vietnam,” Shinta said.
Government data showed Indonesia-EU trade amounted to $30.77 billion throughout 2023. Indonesia at the time enjoyed a $2.5 billion surplus. This further extended the positive trade balance trend in the Indonesia-EU trade over the past five years with the surplus totaling around $23.95 billion.
Postponed Talks Not A Restart Button
Umar Hadi, a senior official at the Foreign Affairs Ministry, told the same presser that the lack of a CEPA does not mean zero trade.
“We are still trading with one another even with unfinished CEPA negotiations. The trade pact is only to make our products become more competitive in Europe and vice versa,” Umar said.
The diplomat also refused to make speculations on whether the negotiations could get pushed back to Prabowo’s administration, saying that Indonesia would remain committed to closing the deal. But even if the negotiations do continue after Prabowo takes office, it does not mean that the negotiators would be back to square one again.
“There should be no problem about continuing the negotiations [if the talks do get pushed back]. It is still the same [trade agreement] document,” Umar said.
Trade Minister Zulkifli Hasan admitted Thursday that negotiations could get more challenging under Prabowo’s government, according to media reports. Prabowo reportedly plans to impose the B50 palm oil-infused biodiesel mandate after he assumes office. The B50 refers to the policy of increasing the palm oil blend in Indonesia’s biodiesel to 50 percent. The higher the palm oil blend, the more likely that Indonesia would allocate its Europe-bound crude palm oil (CPO) to the B50 program -- thus potentially setting another obstacle to the CEPA talks. Jakarta Globe
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Malaysia to support smallholders compliance with EU deforestation law
KUALA LUMPUR, Sept 27 (Reuters) - Malaysia is working on initiatives to ensure its small-scale palm oil producers are able to comply with the European Union's law banning imports of commodities linked to deforestation, its commodities minister said on Friday.
The EU Deforestation Regulation (EUDR) is due to be implemented on Dec. 30 this year, requiring companies selling soy, beef, coffee, palm oil and other products in the 27-nation bloc to prove their supply chains do not contribute to the destruction of forests
Equally, EU companies will be banned from exporting products cultivated on deforested land.
Malaysia and Indonesia, who together account for about 85% of global palm oil exports, have previously accused the EU of discriminatory policies targeting palm oil.
Malaysia's Plantation and Commodities Minister Johari Abdul Ghani said on Friday that the country's palm oil sector adopts stringent sustainability standards through its sustainability certification scheme.
He an estimated 450,000 small-scale producers contributed 27% of Malaysia's total palm oil production and the government was actively working on capacity-building initiatives to support their transition to EUDR compliance.
"This is important to ensure that the livelihoods of these smallholders are not affected by the implementation of the regulation," Johari Abdul said in a statement, without providing details on the initiatives.
Malaysia also focuses on the aspects of traceability, deforestation-free, legitimate land title, and good labour practices in line with International Labour Organization standards to ensure sustainability of its palm oil products, Johari Abdul added.
Earlier this month, state agency the Malaysian Palm Oil Council urged the EU to delay the implementation of the law to protect small farmers and ensure fair trade.
The EU has resisted calls to delay its policy and said the rules are to ensure the bloc does not contribute to forest degradation worldwide. Reuters
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September 27, 2024
Malaysia reiterates commitment to sustainable palm oil production
Plantation and commodities minister Johari Ghani says Malaysia is committed to key global sustainability goals after EU confirms it will not delay its deforestation policy.
PETALING JAYA: Malaysia has reiterated its commitment to sustainable palm oil production after the European Union said it would push ahead with a controversial law that bans imports linked to deforestation.
In a statement, plantation and commodities minister Johari Ghani said Malaysia is committed to key global sustainability goals which include the retention of at least 50% of forest cover and achieving net-zero greenhouse gas emissions by 2050.
Putrajaya is also committed to reducing carbon intensity against gross domestic product by 45% and global methane emission by 30%, both by 2030, he said.
“Malaysia’s palm oil sector adopts stringent sustainability standards through our sustainability certification scheme, the Malaysian Sustainable Palm Oil (MSPO).
This initiative not only demonstrates our commitment to transparency and traceability across the supply chain, but also seeks to ensure the industry is fully prepared for the regulation.
Johari’s comments came after the EU announced it will proceed to implement its Deforestation Regulations (EUDR) despite strong opposition from several countries.
He said Malaysia will focus on four key areas to ensure the sustainability of the country’s palm oil products. These are ensuring the traceability of products, avoiding the use of forest land for cultivation, using land which has legitimate title, and applying good labour practices.
He also said 73% of the 5.7 million hectares planted with oil palm in the country were in the hands of large corporations, which have the requisite knowledge to comply with the regulations governing export to the European market.
However, he anticipated that the 450,000 smallholders who produce the remaining 27% will face unique challenges in adapting to the evolving regulatory landscape.
Johari said his ministry is actively working on capacity-building initiatives to assist in their transition towards EUDR compliance.
Such measures are important to ensure the livelihood of these smallholders will not affected by the implementation of the regulation, he said.
Malaysia remains committed to working closely with our international partners to ensure a mutually beneficial outcome and combat climate change and deforestation.
Set to take effect from Dec 30, the EUDR is expected to have a significant impact on the country’s palm oil and rubber industry. The policy seeks to prevent deforestation-linked commodities from entering the EU market.
China and the US have opposed the EUDR, specifically its traceability requirements. Countries like Brazil, Australia, New Zealand and Indonesia have also expressed concern over the regulations. Free Malaysia Today
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Sarawak’s DOPPA Rebukes NGO Calls on EUDR Listing
The Sarawak Dayak’s Oil Palm Planters Association issued a rebuke against NGOs who called on the European Union to list Sarawak as “High Risk” for deforestation
September 27, 2024 /EINPresswire.com/ -- The Sarawak Dayak’s Oil Palm Planters Association (DOPPA), a non-profit organization which protects the interests of indigenous palm oil smallholders, has issued a rebuke against NGOs who called on the European Union to list Sarawak as “High Risk” for deforestation.
The offending call to list Sarawak as “High Risk” for deforestation was made by Human Rights Watch (HRW).
This was seen by DOPPA as a threat to the livelihoods of indigenous palm oil farmers in Sarawak, many of whom depend on a fair market access for stable incomes.
“Human Rights Watch should have consulted us before including Sarawak palm oil in their negative campaign. DOPPA represents more than forty thousand smallholders who met our core requirement as indigenous oil palm farmers. Every member represents a family that depends on the small-scale family owned oil palm farm for their livelihoods and the future of their children. If you add in our indigenous friends and relatives who work with us in our farms to make a living, this call by HRW will send us back to live in forests. We have fought too hard for our rights to join a developed society to stay silent while HRW misrepresents the facts in Sarawak.”
Since the EUDR was recognized as a threat to indigenous peoples livelihoods, DOPPA has been steadfast in voicing its opposition to EUDR.
In its letter to the EU urging the listing of Sarawak as High Risk of deforestation, HRW included naturally regenerating forests as part of deforestation in Sarawak.
This is a clever exploitation of the EUDR by Human Rights Watch which DOPPA rubbished.
According to DOPPA, the definition of “forest” in the EUDR is an attack on Sarawak’s indigenous peoples rights to decide what to do with their ancestral lands. This has been made worse when HRW exploited the EU definition of “forest” to make a false claim that there are millions of hectares of ancient rainforests in Sarawak at risk of being razed for palm oil.
“Naturally regenerating forests are not ancient forests as HRW claims. If we are to believe HRW and the EU definition of forests, then the land clearing done by my cousin three years ago is now a ‘forest’ as the natural regeneration has shrubs over 5 meters tall. Would the satellite mapping of EUDR exclude Sarawak palm oil because of this?
Furthermore, the EU's definition of natural forest must not be applied to Native Customary Rights (NCR) land in Sarawak, considering that the area was developed much earlier before the introduction of the EUDR.
For Indigenous communities that cultivate NCR land for palm oil cultivation, it is important for improving the socio-economic status of rural indigenous communities. The EUDR's restrictions on opening new planting areas for palm oil for indigenous communities is seen as denying the rights of indigenous people to cultivate their land to break free from the shackles of poverty.”
DOPPA further criticized the EU as having failed to engage indigenous communities prior to the introduction of the EUDR, which is now being used by groups like HRW to push their agenda against palm oil.
DOPPA further rubbished HRW’s claim that the Sarawak state government land use policy is opaque.
“State policies are very clear and transparent that no new planting of oil palm is allowed on State Land except on NCR lands.
In addition, the state government has introduced a mechanism to verify NCR land status through 1 Stop Centers and encouraged indigenous peoples to plant oil palm on their NCR lands if it improves their socio-economic status. As of September 2024, 1.13 million hectares of an estimated 2 million hectares of native customary lands have been mapped out in Sarawak.
This completely refutes Human Rights Watch claims that indigenous land claims in Sarawak are opaque and therefore require additional scrutiny by the EU.”
In light of the harm posed by the EUDR to the livelihoods of indigenous palm oil smallholders in Sarawak, DOPPA stands with small farmers of cocoa, coffee and palm oil worldwide to repeat DOPPA’s message to the EU is to exclude smallholders from the punishments of EUDR in the name of indigenous peoples rights. EIN News/ DOPPA
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Indonesia Questions EU on Deforestation Rules at WTO
Indonesia has joined a number of other countries at the WTO in criticism of the EUDR
Along with the US, Canada and other countries, Indonesia is critical of the lack of information from Brussels
Indonesia has called on the European Union to clarify the numerous questions that remain around EUDR implementation at the World Trade Organization (WTO) this week.
At this week’s Agriculture Committee meeting, the Indonesian government laid out key questions on the EUDR with support from numerous other countries, including the US and India. The key concerns underlined by Indonesia are the lack of information on implementation, potential discrepancies in deforestation data, and the methodology used for the “country benchmarking” process.
Critically, Indonesia has also asked the European Union to step up its support for smallholders and international cooperation efforts as the EUDR deadline approaches.
The full statement reads:
“[…] We continue to address concerns surrounding the European Union Deforestation-Free Regulation (EUDR), especially regarding the implementation of EUDR that will soon be mandatory.
Indeed, Indonesia remains concerned that that EU has not provided enough information for the implementation of this policy, and thus leaving producing countries with very short adaption and preparation period.
Referring to the EU’s response at the previous meeting, it was stated that the commission will develop the country benchmarking system based on the availability of transparent data in the country. How will the EU resolve if there are discrepancies or lack of data availability among importers, manufacturers, and exporters around the sourcing of goods? To ensure compliance, what deforestation standards will be used?
Could the EU provide further information about the progress of the methodology developed by the Multi-Stakeholder Deforestation Platform regarding the main criteria for assessment in country benchmarking?
How can the EU guarantee that the assessment regarding criteria such as information supplied by governments and third parties (NGOs, industry) is valid?
The regulation requires EU businesses placing wood, coffee, cocoa, palm oil, and several other commodities in the EU market to demonstrate that these goods aren’t linked to deforestation. In practice, the burden of supplying data to show compliance will fall largely on suppliers, many from countries where small and medium-sized firms predominate. Although we are currently in the process of registering certain aspects of our small producers related to the EUDR, we would like to proceed at a faster pace since time is short. As such, could the EU provide support and facilitate international cooperation through knowledge, resources, and technological solutions?
Has the EU prepared any solutions and assistance aimed at developing the capacities of our regional and local governments, which will be critical in assisting our small producers and exporters in meeting the required standards?“
In addition, the US, Canada, Australia, New Zealand, Paraguay and Argentina asked another series of questions on a possible delay to implementation. They stated:
We are deeply concerned about the significant impact that the implementation of this regulation will have on global trade, and the high compliance burden it places on countries and producers whose systems are not linked to deforestation.
It is our firm view that this is not the most trade facilitative approach to achieve the objective of protecting global forests.
We are further concerned about the wide range of outstanding questions and issues that need to be addressed before implementation that limit the ability for suppliers and operators to prepare, including legal clarity around definitions, the operation of information systems and competent authorities’ processes. We also note the delay to the release of the next set of FAQs, guidelines and to the country benchmarking assessment process.
Furthermore, we hold a systemic concern about the prescriptive nature of the measure and the disregard for local conditions of production.
In response, the EU Commission representatives have they will not delay and implementation. However, any decision on a delay will likely happen in the next few weeks, following the confirmation hearings of the new Commissioners in November. Indonesia Palm Oil Facts
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Pertamina’s SAF supplied to Virgin Australia Making Green Flight Affordable
PT Pertamina Patra Niaga is expanding its distribution of sustainable aviation fuel (SAF) with a new carrier Virgin Australia Airlines utilising its SAF.
Approximately 160 kilolitres of SAF was supplied to Virgin Australia's Boeing 737 for two days of services out of Bali International Airport I Gusti Ngurah Rai, from September 18 to 19.
“The first SAF delivery at Ngurah Rai Airport signifies that Indonesia can adapt to the energy mix demands in the international aviation industry, where SAF is currently a medium-term solution for flights to reduce carbon footprint without requiring changes to aircraft, airport infrastructure, or jet fuel supply chains,” said Riva Siahaan, president director of Pertamina Patra Niaga.
Riva added that the SAF supplied complies with the International Sustainability and Carbon Certification (ISCC) framework for the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and the Renewable Energy Directive-European Union (RED-EU).
Fiona Walmsley, general manager of sustainability at Virgin Australia, said this collaboration was symbolic of Virgin Australia’s commitment to reduce its carbon emissions intensity by 22 per cent by 2030, and a commitment to target net zero emissions by 2050.
“SAF is a critical enabler to helping reduce the carbon emissions of the aviation sector. We are pleased to be able to showcase the safety, effectiveness and efficiency of using SAF as part of our short-haul international operations,” Ms Walmsley said.
“For Australia, one of the most difficult hurdles to overcome is the availability of affordable SAF within our country.
“By working together on this initiative, Pertamina has helped to bridge the gap for us but ultimately we need the support from many areas within the Australian and international aviation industry to ensure an ongoing, reliable and affordable SAF operation at Virgin Australia.” Biofuels News
Malaysia reiterates commitment to sustainable palm oil production
Plantation and commodities minister Johari Ghani says Malaysia is committed to key global sustainability goals after EU confirms it will not delay its deforestation policy.
PETALING JAYA: Malaysia has reiterated its commitment to sustainable palm oil production after the European Union said it would push ahead with a controversial law that bans imports linked to deforestation.
In a statement, plantation and commodities minister Johari Ghani said Malaysia is committed to key global sustainability goals which include the retention of at least 50% of forest cover and achieving net-zero greenhouse gas emissions by 2050.
Putrajaya is also committed to reducing carbon intensity against gross domestic product by 45% and global methane emission by 30%, both by 2030, he said.
“Malaysia’s palm oil sector adopts stringent sustainability standards through our sustainability certification scheme, the Malaysian Sustainable Palm Oil (MSPO).
This initiative not only demonstrates our commitment to transparency and traceability across the supply chain, but also seeks to ensure the industry is fully prepared for the regulation.
Johari’s comments came after the EU announced it will proceed to implement its Deforestation Regulations (EUDR) despite strong opposition from several countries.
He said Malaysia will focus on four key areas to ensure the sustainability of the country’s palm oil products. These are ensuring the traceability of products, avoiding the use of forest land for cultivation, using land which has legitimate title, and applying good labour practices.
He also said 73% of the 5.7 million hectares planted with oil palm in the country were in the hands of large corporations, which have the requisite knowledge to comply with the regulations governing export to the European market.
However, he anticipated that the 450,000 smallholders who produce the remaining 27% will face unique challenges in adapting to the evolving regulatory landscape.
Johari said his ministry is actively working on capacity-building initiatives to assist in their transition towards EUDR compliance.
Such measures are important to ensure the livelihood of these smallholders will not affected by the implementation of the regulation, he said.
Malaysia remains committed to working closely with our international partners to ensure a mutually beneficial outcome and combat climate change and deforestation.
Set to take effect from Dec 30, the EUDR is expected to have a significant impact on the country’s palm oil and rubber industry. The policy seeks to prevent deforestation-linked commodities from entering the EU market.
China and the US have opposed the EUDR, specifically its traceability requirements. Countries like Brazil, Australia, New Zealand and Indonesia have also expressed concern over the regulations. Free Malaysia Today
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Sarawak’s DOPPA Rebukes NGO Calls on EUDR Listing
The Sarawak Dayak’s Oil Palm Planters Association issued a rebuke against NGOs who called on the European Union to list Sarawak as “High Risk” for deforestation
September 27, 2024 /EINPresswire.com/ -- The Sarawak Dayak’s Oil Palm Planters Association (DOPPA), a non-profit organization which protects the interests of indigenous palm oil smallholders, has issued a rebuke against NGOs who called on the European Union to list Sarawak as “High Risk” for deforestation.
The offending call to list Sarawak as “High Risk” for deforestation was made by Human Rights Watch (HRW).
This was seen by DOPPA as a threat to the livelihoods of indigenous palm oil farmers in Sarawak, many of whom depend on a fair market access for stable incomes.
“Human Rights Watch should have consulted us before including Sarawak palm oil in their negative campaign. DOPPA represents more than forty thousand smallholders who met our core requirement as indigenous oil palm farmers. Every member represents a family that depends on the small-scale family owned oil palm farm for their livelihoods and the future of their children. If you add in our indigenous friends and relatives who work with us in our farms to make a living, this call by HRW will send us back to live in forests. We have fought too hard for our rights to join a developed society to stay silent while HRW misrepresents the facts in Sarawak.”
Since the EUDR was recognized as a threat to indigenous peoples livelihoods, DOPPA has been steadfast in voicing its opposition to EUDR.
In its letter to the EU urging the listing of Sarawak as High Risk of deforestation, HRW included naturally regenerating forests as part of deforestation in Sarawak.
This is a clever exploitation of the EUDR by Human Rights Watch which DOPPA rubbished.
According to DOPPA, the definition of “forest” in the EUDR is an attack on Sarawak’s indigenous peoples rights to decide what to do with their ancestral lands. This has been made worse when HRW exploited the EU definition of “forest” to make a false claim that there are millions of hectares of ancient rainforests in Sarawak at risk of being razed for palm oil.
“Naturally regenerating forests are not ancient forests as HRW claims. If we are to believe HRW and the EU definition of forests, then the land clearing done by my cousin three years ago is now a ‘forest’ as the natural regeneration has shrubs over 5 meters tall. Would the satellite mapping of EUDR exclude Sarawak palm oil because of this?
Furthermore, the EU's definition of natural forest must not be applied to Native Customary Rights (NCR) land in Sarawak, considering that the area was developed much earlier before the introduction of the EUDR.
For Indigenous communities that cultivate NCR land for palm oil cultivation, it is important for improving the socio-economic status of rural indigenous communities. The EUDR's restrictions on opening new planting areas for palm oil for indigenous communities is seen as denying the rights of indigenous people to cultivate their land to break free from the shackles of poverty.”
DOPPA further criticized the EU as having failed to engage indigenous communities prior to the introduction of the EUDR, which is now being used by groups like HRW to push their agenda against palm oil.
DOPPA further rubbished HRW’s claim that the Sarawak state government land use policy is opaque.
“State policies are very clear and transparent that no new planting of oil palm is allowed on State Land except on NCR lands.
In addition, the state government has introduced a mechanism to verify NCR land status through 1 Stop Centers and encouraged indigenous peoples to plant oil palm on their NCR lands if it improves their socio-economic status. As of September 2024, 1.13 million hectares of an estimated 2 million hectares of native customary lands have been mapped out in Sarawak.
This completely refutes Human Rights Watch claims that indigenous land claims in Sarawak are opaque and therefore require additional scrutiny by the EU.”
In light of the harm posed by the EUDR to the livelihoods of indigenous palm oil smallholders in Sarawak, DOPPA stands with small farmers of cocoa, coffee and palm oil worldwide to repeat DOPPA’s message to the EU is to exclude smallholders from the punishments of EUDR in the name of indigenous peoples rights. EIN News/ DOPPA
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Indonesia Questions EU on Deforestation Rules at WTO
Indonesia has joined a number of other countries at the WTO in criticism of the EUDR
Along with the US, Canada and other countries, Indonesia is critical of the lack of information from Brussels
Indonesia has called on the European Union to clarify the numerous questions that remain around EUDR implementation at the World Trade Organization (WTO) this week.
At this week’s Agriculture Committee meeting, the Indonesian government laid out key questions on the EUDR with support from numerous other countries, including the US and India. The key concerns underlined by Indonesia are the lack of information on implementation, potential discrepancies in deforestation data, and the methodology used for the “country benchmarking” process.
Critically, Indonesia has also asked the European Union to step up its support for smallholders and international cooperation efforts as the EUDR deadline approaches.
The full statement reads:
“[…] We continue to address concerns surrounding the European Union Deforestation-Free Regulation (EUDR), especially regarding the implementation of EUDR that will soon be mandatory.
Indeed, Indonesia remains concerned that that EU has not provided enough information for the implementation of this policy, and thus leaving producing countries with very short adaption and preparation period.
Referring to the EU’s response at the previous meeting, it was stated that the commission will develop the country benchmarking system based on the availability of transparent data in the country. How will the EU resolve if there are discrepancies or lack of data availability among importers, manufacturers, and exporters around the sourcing of goods? To ensure compliance, what deforestation standards will be used?
Could the EU provide further information about the progress of the methodology developed by the Multi-Stakeholder Deforestation Platform regarding the main criteria for assessment in country benchmarking?
How can the EU guarantee that the assessment regarding criteria such as information supplied by governments and third parties (NGOs, industry) is valid?
The regulation requires EU businesses placing wood, coffee, cocoa, palm oil, and several other commodities in the EU market to demonstrate that these goods aren’t linked to deforestation. In practice, the burden of supplying data to show compliance will fall largely on suppliers, many from countries where small and medium-sized firms predominate. Although we are currently in the process of registering certain aspects of our small producers related to the EUDR, we would like to proceed at a faster pace since time is short. As such, could the EU provide support and facilitate international cooperation through knowledge, resources, and technological solutions?
Has the EU prepared any solutions and assistance aimed at developing the capacities of our regional and local governments, which will be critical in assisting our small producers and exporters in meeting the required standards?“
In addition, the US, Canada, Australia, New Zealand, Paraguay and Argentina asked another series of questions on a possible delay to implementation. They stated:
We are deeply concerned about the significant impact that the implementation of this regulation will have on global trade, and the high compliance burden it places on countries and producers whose systems are not linked to deforestation.
It is our firm view that this is not the most trade facilitative approach to achieve the objective of protecting global forests.
We are further concerned about the wide range of outstanding questions and issues that need to be addressed before implementation that limit the ability for suppliers and operators to prepare, including legal clarity around definitions, the operation of information systems and competent authorities’ processes. We also note the delay to the release of the next set of FAQs, guidelines and to the country benchmarking assessment process.
Furthermore, we hold a systemic concern about the prescriptive nature of the measure and the disregard for local conditions of production.
In response, the EU Commission representatives have they will not delay and implementation. However, any decision on a delay will likely happen in the next few weeks, following the confirmation hearings of the new Commissioners in November. Indonesia Palm Oil Facts
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Pertamina’s SAF supplied to Virgin Australia Making Green Flight Affordable
PT Pertamina Patra Niaga is expanding its distribution of sustainable aviation fuel (SAF) with a new carrier Virgin Australia Airlines utilising its SAF.
Approximately 160 kilolitres of SAF was supplied to Virgin Australia's Boeing 737 for two days of services out of Bali International Airport I Gusti Ngurah Rai, from September 18 to 19.
“The first SAF delivery at Ngurah Rai Airport signifies that Indonesia can adapt to the energy mix demands in the international aviation industry, where SAF is currently a medium-term solution for flights to reduce carbon footprint without requiring changes to aircraft, airport infrastructure, or jet fuel supply chains,” said Riva Siahaan, president director of Pertamina Patra Niaga.
Riva added that the SAF supplied complies with the International Sustainability and Carbon Certification (ISCC) framework for the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and the Renewable Energy Directive-European Union (RED-EU).
Fiona Walmsley, general manager of sustainability at Virgin Australia, said this collaboration was symbolic of Virgin Australia’s commitment to reduce its carbon emissions intensity by 22 per cent by 2030, and a commitment to target net zero emissions by 2050.
“SAF is a critical enabler to helping reduce the carbon emissions of the aviation sector. We are pleased to be able to showcase the safety, effectiveness and efficiency of using SAF as part of our short-haul international operations,” Ms Walmsley said.
“For Australia, one of the most difficult hurdles to overcome is the availability of affordable SAF within our country.
“By working together on this initiative, Pertamina has helped to bridge the gap for us but ultimately we need the support from many areas within the Australian and international aviation industry to ensure an ongoing, reliable and affordable SAF operation at Virgin Australia.” Biofuels News
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September 26, 2024
EU Commission insists no plans to delay anti-deforestation law
Amid a growing backlash from trading partners and conservative lawmakers, the European Commission maintains it is working to implement new legislation that will ban from January the import of products linked to deforestation overseas.
Despite growing pressure from governments, trading partners and conservative MEPs, the European Commission insisted today that it remains focused on preparing for a ban from next year on the import of goods that may be linked to the destruction of forests outside the EU.
Recent months have seen series of calls to delay implementation of the EU Deforestation Regulation, whose opponents say places to high a regulatory burden on suppliers of targeted products – among them coffee, cocoa, beef, soy and palm oil – and could put firms out business and cause shortages and price rises in EU countries.
“The Commission continues to work very intensively on preparations for the entry into force of the law,” spokesperson Adalbert Jantz told reporters in Brussels. “In particular, we are talking a lot with our partners in third countries.”
But several of those third countries – notably the US and, more recently, Brazil – have called on the EU executive to delay implementation. German Chancellor Olaf Scholz said on 13 September that he had been lobbying Commission president Ursula von der Leyen to postpone the application of the law. Euro News
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EU’s Deforestation Regulation initiates challenging process for companies
Is Türkiye ready with growing industrial wood production?
Türkiye has seen a significant rise in industrial wood production. In 2017, production stood at 15.5 million cubic meters, rising to 28 million cubic meters in 2021. However, this figure dropped to 25.4 million cubic meters in 2022, following criticisms. Associate Professor Cihan Erdonmez from Cerrahpasa Faculty of Forestry, Istanbul University points out that Türkiye’s wood production exceeds the forest capacity.
The products exported to the EU are not limited to timber; palm oil, soy, beef, coffee, cocoa, and rubber are also covered by this regulation. The EU has clarified that any materials derived from these products are also subject to the rules.
Following this regulation, companies exporting goods to the EU that cannot prove their products are not linked to deforestation could face fines of up to 4% of their annual revenue. These penalties mark a new era for environmental sustainability in global supply chains. More at Turkiye Today
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Ongoing EU Demands Lead to IEU-CEPA Delayed Again, Says Indonesian Trade Minister
Cikarang. Negotiations for the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) are facing delays as the EU keeps introducing new demands, particularly due to the challenges posed by the Deforestation Regulation (EUDR).
"We have already met many requests, but if more keep coming, it complicates matters. We aim to finalize the IEU-CEPA, but it depends on the EU's cooperation," Trade Minister Zulkifli Hasan said in Cikarang, West Java, on Thursday.
He reaffirmed Indonesia's commitment to completing the IEU-CEPA, originally expected to be finalized before the new administration takes office. However, this hinges on reaching an agreement.
Indonesia-EU Relations Much Bigger Than Just Trade: Envoy
After nine years of stalled discussions, the IEU-CEPA has entered its 19th round of negotiations, with the initial deadline of September 2024 likely to be missed.
Zulkifli pointed out that Indonesia has informed the EU that the negotiations cannot conclude during President Joko Widodo's tenure and rejected claims of issuing an ultimatum.
"We're not giving an ultimatum; we're just making it clear. The new government (led by President-elect Prabowo Subianto) may find it even more difficult," Zulhas explained.
Jokowi Calls for Fair Treatment of Indonesian Palm Oil in Talks with Norway More Jakarta Globe
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Palm oil loses cheap status as soy takes top spot for cheap oils
Palm oil, once the world’s cheapest edible oil, has seen a significant price shift, largely driven by reduced output from key producers and an ample supply of alternatives.
The price of palm oil has increased by 10% this year, while soybean oil prices have dropped by 9%, reflecting better crop prospects, especially in the US.
This change marks a rare occurrence where palm oil, usually cheaper, is now more expensive than its rivals. The dynamics of the edible oil market are evolving, and the palm oil sector is adjusting to new challenges.
Declining output in Indonesia and Malaysia
Indonesia and Malaysia, responsible for 85% of global palm oil production, are experiencing difficulties with their output.
Many smallholders are hesitant to cut down aging trees and replant due to the long wait times for new trees to bear fruit. Continue reading
EU Commission insists no plans to delay anti-deforestation law
Amid a growing backlash from trading partners and conservative lawmakers, the European Commission maintains it is working to implement new legislation that will ban from January the import of products linked to deforestation overseas.
Despite growing pressure from governments, trading partners and conservative MEPs, the European Commission insisted today that it remains focused on preparing for a ban from next year on the import of goods that may be linked to the destruction of forests outside the EU.
Recent months have seen series of calls to delay implementation of the EU Deforestation Regulation, whose opponents say places to high a regulatory burden on suppliers of targeted products – among them coffee, cocoa, beef, soy and palm oil – and could put firms out business and cause shortages and price rises in EU countries.
“The Commission continues to work very intensively on preparations for the entry into force of the law,” spokesperson Adalbert Jantz told reporters in Brussels. “In particular, we are talking a lot with our partners in third countries.”
But several of those third countries – notably the US and, more recently, Brazil – have called on the EU executive to delay implementation. German Chancellor Olaf Scholz said on 13 September that he had been lobbying Commission president Ursula von der Leyen to postpone the application of the law. Euro News
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EU’s Deforestation Regulation initiates challenging process for companies
Is Türkiye ready with growing industrial wood production?
Türkiye has seen a significant rise in industrial wood production. In 2017, production stood at 15.5 million cubic meters, rising to 28 million cubic meters in 2021. However, this figure dropped to 25.4 million cubic meters in 2022, following criticisms. Associate Professor Cihan Erdonmez from Cerrahpasa Faculty of Forestry, Istanbul University points out that Türkiye’s wood production exceeds the forest capacity.
The products exported to the EU are not limited to timber; palm oil, soy, beef, coffee, cocoa, and rubber are also covered by this regulation. The EU has clarified that any materials derived from these products are also subject to the rules.
Following this regulation, companies exporting goods to the EU that cannot prove their products are not linked to deforestation could face fines of up to 4% of their annual revenue. These penalties mark a new era for environmental sustainability in global supply chains. More at Turkiye Today
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Ongoing EU Demands Lead to IEU-CEPA Delayed Again, Says Indonesian Trade Minister
Cikarang. Negotiations for the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) are facing delays as the EU keeps introducing new demands, particularly due to the challenges posed by the Deforestation Regulation (EUDR).
"We have already met many requests, but if more keep coming, it complicates matters. We aim to finalize the IEU-CEPA, but it depends on the EU's cooperation," Trade Minister Zulkifli Hasan said in Cikarang, West Java, on Thursday.
He reaffirmed Indonesia's commitment to completing the IEU-CEPA, originally expected to be finalized before the new administration takes office. However, this hinges on reaching an agreement.
Indonesia-EU Relations Much Bigger Than Just Trade: Envoy
After nine years of stalled discussions, the IEU-CEPA has entered its 19th round of negotiations, with the initial deadline of September 2024 likely to be missed.
Zulkifli pointed out that Indonesia has informed the EU that the negotiations cannot conclude during President Joko Widodo's tenure and rejected claims of issuing an ultimatum.
"We're not giving an ultimatum; we're just making it clear. The new government (led by President-elect Prabowo Subianto) may find it even more difficult," Zulhas explained.
Jokowi Calls for Fair Treatment of Indonesian Palm Oil in Talks with Norway More Jakarta Globe
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Palm oil loses cheap status as soy takes top spot for cheap oils
Palm oil, once the world’s cheapest edible oil, has seen a significant price shift, largely driven by reduced output from key producers and an ample supply of alternatives.
The price of palm oil has increased by 10% this year, while soybean oil prices have dropped by 9%, reflecting better crop prospects, especially in the US.
This change marks a rare occurrence where palm oil, usually cheaper, is now more expensive than its rivals. The dynamics of the edible oil market are evolving, and the palm oil sector is adjusting to new challenges.
Declining output in Indonesia and Malaysia
Indonesia and Malaysia, responsible for 85% of global palm oil production, are experiencing difficulties with their output.
Many smallholders are hesitant to cut down aging trees and replant due to the long wait times for new trees to bear fruit. Continue reading
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September 24, 2024
EU deforestation ban creates a hazy trade future
By Afiq Fitri Alias
LONDON, Sept 23 (Reuters Breakingviews) - The European Union’s drive to make its supply chain greener risks leading to a scorched-earth policy. A planned ban, opens new tab on agricultural imports from deforested land will affect developing countries producing commodities like timber and palm oil. The move is already causing exports to go elsewhere. If she doesn’t want to lose vital commodities, European Commission President Ursula von der Leyen will either have to offer aid or back down on labour and environmental protections.
Deforestation is a climate scourge. Forest fires are the second-largest contributor to global warming, accounting for 19% of global carbon emissions between 1959 and 2019, according to an Oxford University study, opens new tab. During most monsoon seasons, thick smoke travels across Southeast Asia causing dangerous spikes in air pollution, forcing schools to close and harming the economy. A series of forest fires in 2015 reduced Indonesia’s GDP by nearly 2%, according to research, opens new tab by the RAND Corporation.
The EU Deforestation Regulation (EUDR, opens new tab), due to come into force on Dec. 30, will prevent goods that can be traced to deforested land from entering the bloc. Approximately 90%, opens new tab of global deforestation is due to agricultural practices in South America and Southeast Asia, where products like palm oil and coffee are grown on an industrial scale and shipped across the globe. Such exports to Europe totalled $400 billion last year, according to a report, opens new tab by the Thai bank Krungsri.
The EUDR will create a complex, and possibly hard-to-enforce, set of requirements. Farmers will have to provide location coordinates of their plot of land to be checked against satellite imagery by a European customs officer. Adding bureaucracy into a largely informal market will be expensive: an EU assessment, opens new tab of previous rules put the total costs for member states at more than 460 million euros.
The EUDR has been attacked by both the Biden, opens new tab administration and China, which has refused to comply citing, opens new tab “security concerns”. Brazil, which exported $46.3 billion worth of affected products to Europe last year, described it as a “punitive instrument”. Bureaucrats from Australia and Brazil are also tussling with the EU over whose forest maps, opens new tab are more accurate. Even some EU countries like Germany, Italy and Sweden have sought, opens new tab to delay its implementation. Reuters
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International Coffee Organization (ICO) joins calls for EUDR postponement
The membership body’s Executive Director Vanusia Nogueira said “it is not possible” for coffee farmers to comply with EU Deforestation Regulations, which are due to come into force on 30 December 2024
The International Coffee Organization (ICO) had added has added pressure on the EU to delay Deforestation Regulation (EUDR), which is due to come into force on 30 December 2024.
EUDR will require businesses importing products to the EU considered ‘main drivers for deforestation’ – including coffee, cocoa, palm oil, paper and wood – to produce a due diligence statement that imports have not contributed to forest degradation anywhere in the world after 31 December 2020.
“We can’t meet that date, it is not possible,” ICO Executive Director Vanusia Nogueira told a coffee summit hosted by the Community of Latin American and Caribbean States (CELAC) in Honduras.
Nogueira said she hopes that by working with EU leaders, they might be ‘more open’ to delaying implementation of the regulations – but she did not say the length of delay likely to be needed for greater compliance.
The ICO, whose members represent 98% of all coffee producing nations and 67% of coffee consuming markets, is the latest high-profile coffee body to seek a delay to EUDR.
In February 2024, The European Coffee Federation (ECF), which counts prominent European coffee companies illycaffè, JDE Peet’s, Lavazza, Paulig and Nestlé among its members, said the timing of EUDR’s application would cause significant disruption to the global coffee supply chain and limit access to the EU market for coffee producing nations in Africa and Asia.
In June 2024, the non-profit International Coffee Partners (ICP) warned that coffee farmers face being excluded from the EU market because they lack access to data proving deforestation is not occurring on their land.
The seven-strong coalition of Portugal’s Delta Cafès, Sweden’s Löfbergs, Croatia’s Franck, Norway’s Joh. Johannson, Italy’s Lavazza and Germany’s Neumann Gruppe and Tchibo, also said that the verification process must be simple enough and accessible for smallholder coffee farmers to comply with or they will likely shift their sales to non-EU countries.
The EU maintains that EUDR is an important step in promoting the consumption of ‘deforestation-free’ products and reducing the EU’s impact on forest degradation globally. It expects the regulations to reduce greenhouse gas emissions and lower biodiversity loss.
The EU has granted ‘micro or small businesses’ an extension until 30 June 2025 to comply with EUDR. The union defines a micro business as an enterprise with fewer than 10 employees and an annual turnover below €2m ($2.2m). A small enterprise is defined as having fewer than 50 employees and an annual turnover below €10m ($11.1m). World Coffee Portal
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EU deforestation law in doubt as Germany pushes for postponement
Calls for EUDR postponement have created confusion for companies over when and if they will have to comply.
As lawmakers clash this month over whether to stick with rigid enforcement of the EU’s new Regulation on Deforestation-Free Products (EUDR), with obligations set to take effect in December, companies have been left questioning whether they should move forward with urgent reporting and certification preparation.
Earlier this month, German Food and Agriculture Minister Cem Özdemir asked the European Commission to postpone the regulation’s application by six months to 1 July 2025, saying: “The Commission must finally come out of the summer break and provide clarity,” he wrote. “I take the concerns of companies, agriculture and forestry, and the countries very seriously. Companies need sufficient time to prepare.”
He added: “This also applies to countries with small-scale production structures. Otherwise, supply chains threaten to break at the end of the year – to the detriment of the German and European economy, small farmers in third countries, and consumers.”
‘Bureaucratic monster’
The message has also been carried forward by conservative German members of the European Parliament. “We call on the Commission to immediately delay the implementation of the Deforestation Law,” said Herbert Dorfmann, EPP coordinator in the European Parliament’s Agriculture Committee, this week. Peter Liese, a powerful member of the Parliament’s Environment Committee, agreed and called the legislation a “bureaucratic monster” which could threaten the EU’s animal feed supply and disrupt trade in many consumer goods.
To calm growing alarm, the Commission said it would come out with additional guidelines in the Spring. But these guidelines have yet to emerge.
Centre-left MEPs are urging the Commission to stick to the original timeline for implementing the law. A group of centre-left MEPs, including Italy’s Brando Benifei and Germany’s Delara Burkhardt, have sent the Commission a letter saying, “It is crucial that the EUDR is applied without delay.” They urged the Commission to quickly finalise the guidelines and FAQs as a matter of urgency and said a “user-friendly IT system” should be created for companies to submit compliance documents.
The EUDR became law in June last year, mandating that any operators or traders engaged in importing or exporting certain commodities within the EU market demonstrate that the products are not linked to deforestation or forest degradation. They will have to start proving this in December.
Products also need to be produced by the relevant legislation of the country of production as well as follow strict traceability requirements set by the regulation. The law applies to soy, oil palm, rubber, wood, coffee, cacao and cattle. To achieve this, businesses will be required to gather geolocation data and carry out due diligence before bringing their products to market.
Due diligence
The due diligence process required of companies will consist of three main components: information gathering, risk assessment and risk mitigation. There are concerns about the impact on European supply chains, in particular, the scale of the requirements has sparked concerns about how smallholder farmers in third countries, who don’t have the resources to invest in their certification systems, will be affected.
The European Parliament elections in June 2024 have led to a more conservative Parliament and Commission, with over half of the new commissioners in Ursula von der Leyen’s college coming from her own conservative European Peoples Party. That has created questions over whether the new term will see a dilution of some of the environment and climate laws that were passed during the previous term.
Progressive parties such as the Greens and Social Democrats have been staunch defenders of strict environmental laws. The EUDR is being seen as one of the key tests for the new term. Will it be watered down or postponed?
Soft launch?
Industry insiders say they don’t expect the core requirements of the EUDR to be weakened, even if the Commission does decide to delay its application start date. What might happen, they say, is a soft launch with a transition period. This would mean that while all requirements officially take effect at the end of December, national governments would start with actual enforcement later, in 2025 or 2026.
In this case, sample verifications and checks would begin at a later stage once countries are ready and have prepared their verification systems.
In any event, people in the certification sector are advising companies to continue for now with the expectation of full enforcement in December.
ISCC, the International Sustainability Certification body, has been preparing tools for companies to ensure compliance. The advice for companies is don’t assume anything about the law that hasn’t yet been decided and proceed as if requirements will come in December. ISCC certification is currently available for oil palm, soy, rubber and wood.
In the meantime, forestry campaigners are urging the Commission to quickly come out with guidelines rather than delaying the law. “Action by the EU is needed, but not the action that EUDR’s detractors want,” Sam Lawson, Director of the campaign group Earthsight, wrote this week.
She said: “Research shows that the destruction being wrought by these commodities in forest countries is almost entirely the responsibility of large companies, not smallholder producers. The EU is already investing in helping to ensure that those smallholders can benefit from their relative lack of complicity by supporting their efforts to prove their compliance. But that EU support must be ramped up.”
“The EU should also press the large companies through whom smallholder-produced commodities reach Europe to invest their vast profits in that effort,” she added.
Expand not weaken
Lawson believes the law should be expanded, not weakened, to include commodities produced through the destruction of precious non-forest biomes and expand its scope to cover other commodities like cotton.
The balance between environmental ambitions and economic realities will be a key focus in the post-election landscape. For better or worse, the EUDR is now being seen as the first test of whether the building blocks of von der Leyen’s Green Deal will hold firm with the new political realities in the EU’s institutions. Euractiv
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IEU-CEPA agreement hampered by reshuffle in EU: Minister
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the negotiation process for the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) was hampered by a change in the cabinet within the European Union.
"The IEU-CEPA negotiations are being finalized. However, the cabinet in the IEU-CEPA has changed. Their negotiator for Indonesia is no longer in office," he remarked at the 2024 National Coordination Meeting for the Acceleration and Expansion of Regional Digitalization on Monday.
Hartarto remarked that during the nine-year process, the negotiation process has become heavier due to a reshuffle in the ranks of officials within the European Union Commission, which resulted in changes to the requirements for Indonesia.
He then drew attention to three main issues requested to be resolved at the earliest, with the first being that Indonesia should relax its import policy for products originating from Europe.
The second issue concerns the export restriction policy in the form of imposing export duties, while the third is related to digital taxation.
During the negotiation process, Hartarto spoke of receiving instructions to accelerate the accession process of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
He also received permission from President-elect Prabowo Subianto to accelerate the accession process immediately.
"This has reached New Zealand as the CPTPP host and other ASEAN countries, such as Singapore, Vietnam, and Malaysia. We will open the British market, the Canadian market, the Mexican market, Chile, and Peru," he remarked.
The minister highlighted that the government is concurrently also focusing on completing the accession process with the Organization for Economic Cooperation and Development (OECD).
Trade Minister Zulkifli Hasan earlier stated that the progress in the completion of the IEU-CEPA negotiations had reached almost 90 percent.
He noted that negotiations on the trade agreement are expected to be completed this month. Antara News
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MPOC SHOWCASES PALM OIL’S HEALTH AND SUSTAINABILITY ASPECTS AT 22ND IUFOST WORLD CONGRESS, ITALY
Rimini, Italy – The Malaysian Palm Oil Council (MPOC) proudly supported a pivotal session at the 22nd IUFoST World Congress held at the Palacongressi di Rimini, Italy, from 8-12 September 2024. This session, titled “Navigating the Crossroad of Human Health and Sustainability”, brought together global experts to delve into the complex relationship between dietary fats, human health, and sustainability, with a focus on palm oil.
The discourse underscored the need to re-examine the generalisations surrounding saturated fats, particularly those found in palm oil, and highlighted the sustainable practices in palm oil production that address both environmental concerns and food security.
Reassessing Saturated Fats and Their Impact on Health
Prof. Francesco Visioli from the University of Padova presented a sophisticated perspective on saturated fats, often misunderstood in public health discourse. While foods like palm oil, coconut oil, butter, and animal fats have been criticised for their potential role in raising cholesterol and increasing cardiovascular disease risk, Prof. Visioli emphasised that the effects vary based on their sources – whether from meat, dairy, or plants. His presentation, which includes data from the Global Burden of Disease Study, reveals a more complex picture where factors such as lifestyle, dietary habits, and fat-processing methods play significant roles in determining health outcomes.
Prof. Visioli further argued that trans fats, rather than saturated fats, are the primary contributors to poor heart health. He called for a move towards precision nutrition, which tailors dietary advice to individual responses to fats, rather than generalized dietary warnings.
Challenging Misconceptions about Palmitic Acid in Palm Oil
The session featured a discussion by Dr. Roger Clemens (University of Southern California), Dr. Peter Pressman (University of Maine), and Dr. Walles Hayes (University of South Florida), who addressed misconceptions about palmitic acid – a fatty acid in palm oil and the human body. The experts dismissed claims that link palm oil’s high palmitic acid content to cancer, noting that such assertions lack credible scientific evidence. Palmitic acid is not only prevalent in palm oil but also constitutes a significant portion of human milk and infant fat stores. The panellists emphasised the need for more rigorous research focused on human health to better understand the role of palmitic acid, rather than relying on oversimplified or unrealistic experimental models.
Promoting Sustainability and Food Security through Palm Oil
Highlighting Malaysia’s commitment to sustainability, Dr. David Ross Appleton of SD Guthrie Berhad, one of Malaysia’s leading palm oil producers, elaborated on the critical role of palm oil in global food security. He cautioned that shifting to less efficient vegetable oil sources could exacerbate environmental challenges, such as deforestation and biodiversity loss, due to increased land requirements. Dr. Appleton underscored the effectiveness of the Malaysian Sustainable Palm Oil (MSPO) certification in ensuring responsible palm oil production that does not contribute to deforestation or peat exploitation.
Moreover, he shared SD Guthrie’s goal to achieve net-zero greenhouse gas emissions by 2050 and to adopt circular economy practices. This includes initiatives to improve worker conditions, food safety, and quality through optimized harvesting, minimized handling, and advanced processing techniques.
MPOC’s Role in Promoting Sustainable and Healthy Palm Oil Practices
Belvinder Sron, CEO of MPOC said, “MPOC’s support of this session at the IUFoST World Congress demonstrates our ongoing commitment to addressing misconceptions about palm oil while promoting sustainable practices that align with global health and environmental goals.” “The discussions at the Congress reaffirmed the importance of taking a sophisticated approach to dietary fats and emphasised the need for sustainable and ethical palm oil production practices,” she added. MPOC
EU deforestation ban creates a hazy trade future
By Afiq Fitri Alias
LONDON, Sept 23 (Reuters Breakingviews) - The European Union’s drive to make its supply chain greener risks leading to a scorched-earth policy. A planned ban, opens new tab on agricultural imports from deforested land will affect developing countries producing commodities like timber and palm oil. The move is already causing exports to go elsewhere. If she doesn’t want to lose vital commodities, European Commission President Ursula von der Leyen will either have to offer aid or back down on labour and environmental protections.
Deforestation is a climate scourge. Forest fires are the second-largest contributor to global warming, accounting for 19% of global carbon emissions between 1959 and 2019, according to an Oxford University study, opens new tab. During most monsoon seasons, thick smoke travels across Southeast Asia causing dangerous spikes in air pollution, forcing schools to close and harming the economy. A series of forest fires in 2015 reduced Indonesia’s GDP by nearly 2%, according to research, opens new tab by the RAND Corporation.
The EU Deforestation Regulation (EUDR, opens new tab), due to come into force on Dec. 30, will prevent goods that can be traced to deforested land from entering the bloc. Approximately 90%, opens new tab of global deforestation is due to agricultural practices in South America and Southeast Asia, where products like palm oil and coffee are grown on an industrial scale and shipped across the globe. Such exports to Europe totalled $400 billion last year, according to a report, opens new tab by the Thai bank Krungsri.
The EUDR will create a complex, and possibly hard-to-enforce, set of requirements. Farmers will have to provide location coordinates of their plot of land to be checked against satellite imagery by a European customs officer. Adding bureaucracy into a largely informal market will be expensive: an EU assessment, opens new tab of previous rules put the total costs for member states at more than 460 million euros.
The EUDR has been attacked by both the Biden, opens new tab administration and China, which has refused to comply citing, opens new tab “security concerns”. Brazil, which exported $46.3 billion worth of affected products to Europe last year, described it as a “punitive instrument”. Bureaucrats from Australia and Brazil are also tussling with the EU over whose forest maps, opens new tab are more accurate. Even some EU countries like Germany, Italy and Sweden have sought, opens new tab to delay its implementation. Reuters
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International Coffee Organization (ICO) joins calls for EUDR postponement
The membership body’s Executive Director Vanusia Nogueira said “it is not possible” for coffee farmers to comply with EU Deforestation Regulations, which are due to come into force on 30 December 2024
The International Coffee Organization (ICO) had added has added pressure on the EU to delay Deforestation Regulation (EUDR), which is due to come into force on 30 December 2024.
EUDR will require businesses importing products to the EU considered ‘main drivers for deforestation’ – including coffee, cocoa, palm oil, paper and wood – to produce a due diligence statement that imports have not contributed to forest degradation anywhere in the world after 31 December 2020.
“We can’t meet that date, it is not possible,” ICO Executive Director Vanusia Nogueira told a coffee summit hosted by the Community of Latin American and Caribbean States (CELAC) in Honduras.
Nogueira said she hopes that by working with EU leaders, they might be ‘more open’ to delaying implementation of the regulations – but she did not say the length of delay likely to be needed for greater compliance.
The ICO, whose members represent 98% of all coffee producing nations and 67% of coffee consuming markets, is the latest high-profile coffee body to seek a delay to EUDR.
In February 2024, The European Coffee Federation (ECF), which counts prominent European coffee companies illycaffè, JDE Peet’s, Lavazza, Paulig and Nestlé among its members, said the timing of EUDR’s application would cause significant disruption to the global coffee supply chain and limit access to the EU market for coffee producing nations in Africa and Asia.
In June 2024, the non-profit International Coffee Partners (ICP) warned that coffee farmers face being excluded from the EU market because they lack access to data proving deforestation is not occurring on their land.
The seven-strong coalition of Portugal’s Delta Cafès, Sweden’s Löfbergs, Croatia’s Franck, Norway’s Joh. Johannson, Italy’s Lavazza and Germany’s Neumann Gruppe and Tchibo, also said that the verification process must be simple enough and accessible for smallholder coffee farmers to comply with or they will likely shift their sales to non-EU countries.
The EU maintains that EUDR is an important step in promoting the consumption of ‘deforestation-free’ products and reducing the EU’s impact on forest degradation globally. It expects the regulations to reduce greenhouse gas emissions and lower biodiversity loss.
The EU has granted ‘micro or small businesses’ an extension until 30 June 2025 to comply with EUDR. The union defines a micro business as an enterprise with fewer than 10 employees and an annual turnover below €2m ($2.2m). A small enterprise is defined as having fewer than 50 employees and an annual turnover below €10m ($11.1m). World Coffee Portal
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EU deforestation law in doubt as Germany pushes for postponement
Calls for EUDR postponement have created confusion for companies over when and if they will have to comply.
As lawmakers clash this month over whether to stick with rigid enforcement of the EU’s new Regulation on Deforestation-Free Products (EUDR), with obligations set to take effect in December, companies have been left questioning whether they should move forward with urgent reporting and certification preparation.
Earlier this month, German Food and Agriculture Minister Cem Özdemir asked the European Commission to postpone the regulation’s application by six months to 1 July 2025, saying: “The Commission must finally come out of the summer break and provide clarity,” he wrote. “I take the concerns of companies, agriculture and forestry, and the countries very seriously. Companies need sufficient time to prepare.”
He added: “This also applies to countries with small-scale production structures. Otherwise, supply chains threaten to break at the end of the year – to the detriment of the German and European economy, small farmers in third countries, and consumers.”
‘Bureaucratic monster’
The message has also been carried forward by conservative German members of the European Parliament. “We call on the Commission to immediately delay the implementation of the Deforestation Law,” said Herbert Dorfmann, EPP coordinator in the European Parliament’s Agriculture Committee, this week. Peter Liese, a powerful member of the Parliament’s Environment Committee, agreed and called the legislation a “bureaucratic monster” which could threaten the EU’s animal feed supply and disrupt trade in many consumer goods.
To calm growing alarm, the Commission said it would come out with additional guidelines in the Spring. But these guidelines have yet to emerge.
Centre-left MEPs are urging the Commission to stick to the original timeline for implementing the law. A group of centre-left MEPs, including Italy’s Brando Benifei and Germany’s Delara Burkhardt, have sent the Commission a letter saying, “It is crucial that the EUDR is applied without delay.” They urged the Commission to quickly finalise the guidelines and FAQs as a matter of urgency and said a “user-friendly IT system” should be created for companies to submit compliance documents.
The EUDR became law in June last year, mandating that any operators or traders engaged in importing or exporting certain commodities within the EU market demonstrate that the products are not linked to deforestation or forest degradation. They will have to start proving this in December.
Products also need to be produced by the relevant legislation of the country of production as well as follow strict traceability requirements set by the regulation. The law applies to soy, oil palm, rubber, wood, coffee, cacao and cattle. To achieve this, businesses will be required to gather geolocation data and carry out due diligence before bringing their products to market.
Due diligence
The due diligence process required of companies will consist of three main components: information gathering, risk assessment and risk mitigation. There are concerns about the impact on European supply chains, in particular, the scale of the requirements has sparked concerns about how smallholder farmers in third countries, who don’t have the resources to invest in their certification systems, will be affected.
The European Parliament elections in June 2024 have led to a more conservative Parliament and Commission, with over half of the new commissioners in Ursula von der Leyen’s college coming from her own conservative European Peoples Party. That has created questions over whether the new term will see a dilution of some of the environment and climate laws that were passed during the previous term.
Progressive parties such as the Greens and Social Democrats have been staunch defenders of strict environmental laws. The EUDR is being seen as one of the key tests for the new term. Will it be watered down or postponed?
Soft launch?
Industry insiders say they don’t expect the core requirements of the EUDR to be weakened, even if the Commission does decide to delay its application start date. What might happen, they say, is a soft launch with a transition period. This would mean that while all requirements officially take effect at the end of December, national governments would start with actual enforcement later, in 2025 or 2026.
In this case, sample verifications and checks would begin at a later stage once countries are ready and have prepared their verification systems.
In any event, people in the certification sector are advising companies to continue for now with the expectation of full enforcement in December.
ISCC, the International Sustainability Certification body, has been preparing tools for companies to ensure compliance. The advice for companies is don’t assume anything about the law that hasn’t yet been decided and proceed as if requirements will come in December. ISCC certification is currently available for oil palm, soy, rubber and wood.
In the meantime, forestry campaigners are urging the Commission to quickly come out with guidelines rather than delaying the law. “Action by the EU is needed, but not the action that EUDR’s detractors want,” Sam Lawson, Director of the campaign group Earthsight, wrote this week.
She said: “Research shows that the destruction being wrought by these commodities in forest countries is almost entirely the responsibility of large companies, not smallholder producers. The EU is already investing in helping to ensure that those smallholders can benefit from their relative lack of complicity by supporting their efforts to prove their compliance. But that EU support must be ramped up.”
“The EU should also press the large companies through whom smallholder-produced commodities reach Europe to invest their vast profits in that effort,” she added.
Expand not weaken
Lawson believes the law should be expanded, not weakened, to include commodities produced through the destruction of precious non-forest biomes and expand its scope to cover other commodities like cotton.
The balance between environmental ambitions and economic realities will be a key focus in the post-election landscape. For better or worse, the EUDR is now being seen as the first test of whether the building blocks of von der Leyen’s Green Deal will hold firm with the new political realities in the EU’s institutions. Euractiv
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IEU-CEPA agreement hampered by reshuffle in EU: Minister
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the negotiation process for the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) was hampered by a change in the cabinet within the European Union.
"The IEU-CEPA negotiations are being finalized. However, the cabinet in the IEU-CEPA has changed. Their negotiator for Indonesia is no longer in office," he remarked at the 2024 National Coordination Meeting for the Acceleration and Expansion of Regional Digitalization on Monday.
Hartarto remarked that during the nine-year process, the negotiation process has become heavier due to a reshuffle in the ranks of officials within the European Union Commission, which resulted in changes to the requirements for Indonesia.
He then drew attention to three main issues requested to be resolved at the earliest, with the first being that Indonesia should relax its import policy for products originating from Europe.
The second issue concerns the export restriction policy in the form of imposing export duties, while the third is related to digital taxation.
During the negotiation process, Hartarto spoke of receiving instructions to accelerate the accession process of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
He also received permission from President-elect Prabowo Subianto to accelerate the accession process immediately.
"This has reached New Zealand as the CPTPP host and other ASEAN countries, such as Singapore, Vietnam, and Malaysia. We will open the British market, the Canadian market, the Mexican market, Chile, and Peru," he remarked.
The minister highlighted that the government is concurrently also focusing on completing the accession process with the Organization for Economic Cooperation and Development (OECD).
Trade Minister Zulkifli Hasan earlier stated that the progress in the completion of the IEU-CEPA negotiations had reached almost 90 percent.
He noted that negotiations on the trade agreement are expected to be completed this month. Antara News
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MPOC SHOWCASES PALM OIL’S HEALTH AND SUSTAINABILITY ASPECTS AT 22ND IUFOST WORLD CONGRESS, ITALY
Rimini, Italy – The Malaysian Palm Oil Council (MPOC) proudly supported a pivotal session at the 22nd IUFoST World Congress held at the Palacongressi di Rimini, Italy, from 8-12 September 2024. This session, titled “Navigating the Crossroad of Human Health and Sustainability”, brought together global experts to delve into the complex relationship between dietary fats, human health, and sustainability, with a focus on palm oil.
The discourse underscored the need to re-examine the generalisations surrounding saturated fats, particularly those found in palm oil, and highlighted the sustainable practices in palm oil production that address both environmental concerns and food security.
Reassessing Saturated Fats and Their Impact on Health
Prof. Francesco Visioli from the University of Padova presented a sophisticated perspective on saturated fats, often misunderstood in public health discourse. While foods like palm oil, coconut oil, butter, and animal fats have been criticised for their potential role in raising cholesterol and increasing cardiovascular disease risk, Prof. Visioli emphasised that the effects vary based on their sources – whether from meat, dairy, or plants. His presentation, which includes data from the Global Burden of Disease Study, reveals a more complex picture where factors such as lifestyle, dietary habits, and fat-processing methods play significant roles in determining health outcomes.
Prof. Visioli further argued that trans fats, rather than saturated fats, are the primary contributors to poor heart health. He called for a move towards precision nutrition, which tailors dietary advice to individual responses to fats, rather than generalized dietary warnings.
Challenging Misconceptions about Palmitic Acid in Palm Oil
The session featured a discussion by Dr. Roger Clemens (University of Southern California), Dr. Peter Pressman (University of Maine), and Dr. Walles Hayes (University of South Florida), who addressed misconceptions about palmitic acid – a fatty acid in palm oil and the human body. The experts dismissed claims that link palm oil’s high palmitic acid content to cancer, noting that such assertions lack credible scientific evidence. Palmitic acid is not only prevalent in palm oil but also constitutes a significant portion of human milk and infant fat stores. The panellists emphasised the need for more rigorous research focused on human health to better understand the role of palmitic acid, rather than relying on oversimplified or unrealistic experimental models.
Promoting Sustainability and Food Security through Palm Oil
Highlighting Malaysia’s commitment to sustainability, Dr. David Ross Appleton of SD Guthrie Berhad, one of Malaysia’s leading palm oil producers, elaborated on the critical role of palm oil in global food security. He cautioned that shifting to less efficient vegetable oil sources could exacerbate environmental challenges, such as deforestation and biodiversity loss, due to increased land requirements. Dr. Appleton underscored the effectiveness of the Malaysian Sustainable Palm Oil (MSPO) certification in ensuring responsible palm oil production that does not contribute to deforestation or peat exploitation.
Moreover, he shared SD Guthrie’s goal to achieve net-zero greenhouse gas emissions by 2050 and to adopt circular economy practices. This includes initiatives to improve worker conditions, food safety, and quality through optimized harvesting, minimized handling, and advanced processing techniques.
MPOC’s Role in Promoting Sustainable and Healthy Palm Oil Practices
Belvinder Sron, CEO of MPOC said, “MPOC’s support of this session at the IUFoST World Congress demonstrates our ongoing commitment to addressing misconceptions about palm oil while promoting sustainable practices that align with global health and environmental goals.” “The discussions at the Congress reaffirmed the importance of taking a sophisticated approach to dietary fats and emphasised the need for sustainable and ethical palm oil production practices,” she added. MPOC
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September 23, 2024
Backlash erupts over Europe's anti-deforestation law
The European Union has been a world leader on climate change, passing groundbreaking legislation to reduce noxious greenhouse gases. Now the world is pushing back.
Government officials and business groups around the globe have jacked up their lobbying in recent months to persuade EU officials to suspend a landmark environmental law aimed at protecting the planet's endangered forests by tracing supply chains.
The rules, scheduled to take effect at the end of the year, would affect billions of dollars in traded goods. They have been denounced as "discriminatory and punitive" by countries in Southeast Asia, Latin America and Africa.
In the United States, the Biden administration petitioned for a delay, as U.S. paper companies warned that the law could result in shortages of diapers and sanitary pads in Europe. In July, China said it would not comply because "security concerns" prevent the country from sharing the necessary data.
Last week, the chorus got larger. Cabinet members in Brazil, the director-general of the World Trade Organization and even Chancellor Olaf Scholz of Germany -- leader of the largest economy in the 27-member European Union -- asked the European Commission's president to postpone the impending deforestation regulations.
The uproar underscores the bruising difficulties of making progress on a problem that most everyone agrees is urgent: protecting the world's population from devastating climate change.
After years of debate, lawmakers approved a ban in 2023 on all products derived from seven key commodities -- cattle, cocoa, coffee, palm oil, rubber, soybeans and wood -- cultivated on newly cleared forest land. The result are rules that affect pretty much every item used in your home, slathered on your body or put in your mouth, from living room sofas and lipstick to soap and instant noodles. Penalties for traders are steep.
The hope was that the law would have a cascading effect, spurr ..
Read more at:
https://economictimes.indiatimes.com/small-biz/trade/exports/insights/backlash-erupts-over-europes-anti-deforestation-law/articleshow/113585106.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
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India, China to push palm oil to a new bull phase early next year
Palm oil will begin a new bull phase early next year on the back of strong demand from biofuel makers and healthy purchases by India and China, according to veteran trader Dorab Mistry.
The tropical oil is expected to trade between $3,700 ringgit ($884) and 4,500 ringgit a ton between now and June 2025, Mistry said. Purchases for the Chinese New Year and Ramadan in the January-March quarter will also be bullish for the market, he said.
Mistry’s comments could support benchmark palm oil futures, which have slipped about 10% from a peak in early April, and have been volatile due to a seasonal weakness in demand and high production.
Benchmark palm oil futures in Kuala Lumpur were at 3,931 ringgit in the afternoon session on Friday. Prices have been trading below 4,500 ringgit since the middle of 2022.
The outlook for soybean oil is bright as the commodity “will continue to benefit from brisk US biodiesel demand,” Mistry said. Economic Times
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India's Edible oil tariffs must balance farmer, consumer needs
Curbs on edible oil exports must be relaxed so that farmers have the freedom to capitalise on global market opportunities, just as consumers benefit from cheap imports
Indian consumers looking to replenish their stocks of cooking oil for the festival season are likely to experience some sticker shock, with the Central government deciding to sharply hike import duties on vegetable oils. Effective September 14, the basic customs duty on crude soyabean, palm and sunflower oil has gone up from zero to 20 per cent, while that on the same refined oils will rise from 12.5 to 32.5 per cent, with additional cess applying in both cases. The Hindu Business Line
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Indonesia’s Move Reshapes Palm Oil Landscape
On 21 September 2024, the Indonesian Government implemented a significant amendment to its export tax policy, moving from a graduated scale to a flat export tax of 7.5% for crude palm oil (CPO) and 4.5% for refined palm oil. This change is expected to enhance the competitiveness of Indonesian palm oil, potentially benefiting all planters in the country while placing Malaysian producers at a disadvantage. Analysts maintain a NEUTRAL stance on the plantation sector, reflecting the ongoing shifts in market dynamics.
The introduction of a fixed export tax simplifies the taxation structure, which previously ranged from USD55 to USD240 per tonne based on a tiered pricing system. This strategic shift aims to bolster CPO prices in Indonesia and improve the economic situation for farmers. With the new policy, CPO exporters in Indonesia could receive approximately RM3,371 per tonne, an increase from RM3,248 per tonne under the prior system, thus providing a more favourable operating environment.
For Malaysia, the implications are concerning as the gap in competitiveness is expected to widen. The advantages for downstream refiners in Indonesia will expand, particularly with a notable increase in effective CPO prices. At the current CPO price of RM4,000 per tonne, the downstream tax advantage for Indonesian refiners is projected to grow to USD84 per tonne, compared to Malaysia’s USD72 per tonne. This disparity could lead to a decrease in Malaysia’s competitive edge in downstream products.
Overall, the policy adjustment is projected to yield positive results for Indonesian planters, who are anticipated to benefit from enhanced effective CPO prices resulting from lower export duties. The revised Domestic Market Obligation (DMO) ceiling prices, which were increased by 12% to IDR15,700 per litre in mid-August, will further support Indonesian planters, potentially driving higher average selling prices (ASP). The expected increase in effective CPO prices ranges from RM20 to RM137 per tonne, depending on market conditions. Business Times
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Hidden hunger horrors: Indonesia needs more mandatory food fortification to address triple malnutrition threat – expert insights
23-Sep-2024 By Pearly Neo
Indonesia will need to implement more mandatory food fortification in staple foods if the country hopes to address the serious triple malnutrition threat that it currently faces, according to local food industry experts.
https://www.foodnavigator-asia.com/Article/2024/09/23/indonesia-needs-more-mandatory-food-fortification-to-address-triple-malnutrition-threat-expert-insights
Backlash erupts over Europe's anti-deforestation law
The European Union has been a world leader on climate change, passing groundbreaking legislation to reduce noxious greenhouse gases. Now the world is pushing back.
Government officials and business groups around the globe have jacked up their lobbying in recent months to persuade EU officials to suspend a landmark environmental law aimed at protecting the planet's endangered forests by tracing supply chains.
The rules, scheduled to take effect at the end of the year, would affect billions of dollars in traded goods. They have been denounced as "discriminatory and punitive" by countries in Southeast Asia, Latin America and Africa.
In the United States, the Biden administration petitioned for a delay, as U.S. paper companies warned that the law could result in shortages of diapers and sanitary pads in Europe. In July, China said it would not comply because "security concerns" prevent the country from sharing the necessary data.
Last week, the chorus got larger. Cabinet members in Brazil, the director-general of the World Trade Organization and even Chancellor Olaf Scholz of Germany -- leader of the largest economy in the 27-member European Union -- asked the European Commission's president to postpone the impending deforestation regulations.
The uproar underscores the bruising difficulties of making progress on a problem that most everyone agrees is urgent: protecting the world's population from devastating climate change.
After years of debate, lawmakers approved a ban in 2023 on all products derived from seven key commodities -- cattle, cocoa, coffee, palm oil, rubber, soybeans and wood -- cultivated on newly cleared forest land. The result are rules that affect pretty much every item used in your home, slathered on your body or put in your mouth, from living room sofas and lipstick to soap and instant noodles. Penalties for traders are steep.
The hope was that the law would have a cascading effect, spurr ..
Read more at:
https://economictimes.indiatimes.com/small-biz/trade/exports/insights/backlash-erupts-over-europes-anti-deforestation-law/articleshow/113585106.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
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India, China to push palm oil to a new bull phase early next year
Palm oil will begin a new bull phase early next year on the back of strong demand from biofuel makers and healthy purchases by India and China, according to veteran trader Dorab Mistry.
The tropical oil is expected to trade between $3,700 ringgit ($884) and 4,500 ringgit a ton between now and June 2025, Mistry said. Purchases for the Chinese New Year and Ramadan in the January-March quarter will also be bullish for the market, he said.
Mistry’s comments could support benchmark palm oil futures, which have slipped about 10% from a peak in early April, and have been volatile due to a seasonal weakness in demand and high production.
Benchmark palm oil futures in Kuala Lumpur were at 3,931 ringgit in the afternoon session on Friday. Prices have been trading below 4,500 ringgit since the middle of 2022.
The outlook for soybean oil is bright as the commodity “will continue to benefit from brisk US biodiesel demand,” Mistry said. Economic Times
--------
India's Edible oil tariffs must balance farmer, consumer needs
Curbs on edible oil exports must be relaxed so that farmers have the freedom to capitalise on global market opportunities, just as consumers benefit from cheap imports
Indian consumers looking to replenish their stocks of cooking oil for the festival season are likely to experience some sticker shock, with the Central government deciding to sharply hike import duties on vegetable oils. Effective September 14, the basic customs duty on crude soyabean, palm and sunflower oil has gone up from zero to 20 per cent, while that on the same refined oils will rise from 12.5 to 32.5 per cent, with additional cess applying in both cases. The Hindu Business Line
--------
Indonesia’s Move Reshapes Palm Oil Landscape
On 21 September 2024, the Indonesian Government implemented a significant amendment to its export tax policy, moving from a graduated scale to a flat export tax of 7.5% for crude palm oil (CPO) and 4.5% for refined palm oil. This change is expected to enhance the competitiveness of Indonesian palm oil, potentially benefiting all planters in the country while placing Malaysian producers at a disadvantage. Analysts maintain a NEUTRAL stance on the plantation sector, reflecting the ongoing shifts in market dynamics.
The introduction of a fixed export tax simplifies the taxation structure, which previously ranged from USD55 to USD240 per tonne based on a tiered pricing system. This strategic shift aims to bolster CPO prices in Indonesia and improve the economic situation for farmers. With the new policy, CPO exporters in Indonesia could receive approximately RM3,371 per tonne, an increase from RM3,248 per tonne under the prior system, thus providing a more favourable operating environment.
For Malaysia, the implications are concerning as the gap in competitiveness is expected to widen. The advantages for downstream refiners in Indonesia will expand, particularly with a notable increase in effective CPO prices. At the current CPO price of RM4,000 per tonne, the downstream tax advantage for Indonesian refiners is projected to grow to USD84 per tonne, compared to Malaysia’s USD72 per tonne. This disparity could lead to a decrease in Malaysia’s competitive edge in downstream products.
Overall, the policy adjustment is projected to yield positive results for Indonesian planters, who are anticipated to benefit from enhanced effective CPO prices resulting from lower export duties. The revised Domestic Market Obligation (DMO) ceiling prices, which were increased by 12% to IDR15,700 per litre in mid-August, will further support Indonesian planters, potentially driving higher average selling prices (ASP). The expected increase in effective CPO prices ranges from RM20 to RM137 per tonne, depending on market conditions. Business Times
--------
Hidden hunger horrors: Indonesia needs more mandatory food fortification to address triple malnutrition threat – expert insights
23-Sep-2024 By Pearly Neo
Indonesia will need to implement more mandatory food fortification in staple foods if the country hopes to address the serious triple malnutrition threat that it currently faces, according to local food industry experts.
https://www.foodnavigator-asia.com/Article/2024/09/23/indonesia-needs-more-mandatory-food-fortification-to-address-triple-malnutrition-threat-expert-insights
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September 22, 2024
New Sources of Renewable Energy in Indonesia: Current Development and Future Prospects
As one of the largest and most populous nations in Southeast Asia, Indonesia faces growing energy demands that need the expansion of its energy production capacity.
As one of the largest and most populous nations in Southeast Asia, Indonesia faces growing energy demands that need the expansion of its energy production capacity. Traditionally, the country has relied on fossil fuels, particularly coal, oil, and natural gas, to power its economy. However, the need to reduce greenhouse gas emissions, improve energy security, and meet the goals outlined in the Paris Agreement has led Indonesia to explore alternative, renewable energy sources. In this context, Indonesia has committed to diversifying its energy mix, aiming to achieve 23% renewable energy use by 2025 and 31% by 2050 (Indonesian Ministry of Energy and Mineral Resources, 2020). This article explores new renewable energy sources in Indonesia, discusses the country’s progress in their development, and highlights the challenges that need to be addressed.
Overview of Renewable Energy in Indonesia
Indonesia is endowed with vast natural resources, many of which have the potential to be harnessed for renewable energy. Currently, the country’s renewable energy mix includes hydropower, geothermal, bioenergy, wind, and solar energy. These resources are in varying stages of development, with some more advanced than others. While hydro and geothermal energy are relatively mature sectors, other renewable sources such as solar, wind, and marine energy are still in the early stages of development.
The Indonesian government has outlined its renewable energy strategy in its National Energy Policy (KEN) and the General Plan of National Energy (RUEN). These plans set ambitious goals for increasing the share of renewable energy in the national energy mix and reducing the country’s reliance on fossil fuels (MEMR, 2020). Achieving these goals requires the development of new energy sources and a concerted effort to overcome existing regulatory, financial, and technical challenges. More Modern Diplomacy
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Oil Palm Biomass A Better Option Malaysia’s Energy Source
The New Energy Transition Roadmap, NETR, has identified biomass as a source of energy for the country. Biomass includes wastes from agriculture and the dedicated biomass crop. Agricultural wastes include those from the rice industry, natural rubber, and the oil palm business. Wastes from the palm oil industry dominate in volume. Other biomass crops include algae, kenaf, seaweed, and other energy crops. Algae attracts the most interest. The oil from algae is a potential raw material to produce biofuel including the sustainable aviation fuel, SAF. Japan has been reported to invest heavily on algae cultivation. They partner Sarawak Energy to grow algae. PETRONAS is also collaborating with a Japanese partner to produce SAF from algae.
But the oil palm biomass, mainly the empty fruit bunches, EFBs, has attracted much investor interest. Every year, about 20 million tons are available. The National Biomass Action Plan provides the roadmap to develop this new biomass business. There are those in the world not comfortable with the meteoric rise of the palm oil industry. We now hear of another attempt to undermine the oil palm biomass. A recent report from the UK says the burning of the EFBs can lead to higher carbon emission. This is another nonsensical claim lacking in the science. This again goes to show that enemies of palm oil will resort to anything to discredit the wonder crop. The fact is for a palm oil producing like Malaysia, biomass is much better option than even solar since the import element is almost zero. It is more inclusive economically because the ultimate value would trickle down to the oil palm farmers.
There are many reasons why biofuels are considered a better option than solar energy. Biofuels have a higher energy density. This makes them suitable for applications requiring a compact, high-energy source, such as in aviation, shipping, or heavy machinery. They can be stored and transported easily, providing a continuous and reliable energy source. Solar energy cannot match this. Although solar energy can be stored in batteries, current battery technology is less energy-dense than biofuels, making long-term or large-scale storage more challenging.
Biofuels can often be used in existing internal combustion engines with minimal modifications, allowing for a smoother transition from fossil fuels. This is particularly advantageous in sectors like transportation. Solar energy typically requires significant infrastructure changes, including the installation of solar panels and battery storage systems. Biofuels can provide power on demand, making them a more reliable option for applications that require continuous energy. Biofuels are produced from organic materials, including agricultural waste, dedicated energy crops, and even algae. This production can take place in areas unsuitable for solar panels or can utilize waste materials that would otherwise be discarded. Solar panels require large areas of land. In areas where land is scarce or expensive, biofuel production is more feasible. Biofuel production can be scaled up or down more easily, and the fuel can be transported to where it’s needed. This flexibility makes biofuels a good option where energy needs fluctuate. Solar energy production is location-dependent and requires specific conditions to be most effective. It may not be as scalable in regions with limited sunlight.
When produced sustainably, biofuels can be carbon-neutral, as the carbon dioxide they emit when burned is roughly equivalent to the carbon dioxide absorbed by the plants used to produce them. They can also utilize waste products, reducing overall environmental impact. Solar energy is also carbon-neutral in operation, though the production and disposal of solar panels have environmental impacts. However, once installed, solar panels provide clean energy for decades with minimal additional environmental impact. Biofuels might be considered a better option than solar energy where high energy density, ease of storage, infrastructure compatibility, and continuous power generation are critical. Solar energy, while okay for stationary and renewable power generation, has limitations in terms of energy storage and land use that make biofuels more suitable, especially in transportation and heavy industry. Clearly, new energy from oil palm biomass is a better option for Malaysia. Building a robust oil palm biomass industry is a priority. Business Today
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New US Tariff Hike Could Expedite Demand Shift In Malaysia
Malaysia’s exports rose 12.1% yoy in Aug, higher than what CGS forecasts and Bloomberg consensus expectations. Exports of manufactured goods rose 14.1% yoy, higher than the 10.6% in Jul, boosted by higher shipments of machinery, equipment and parts, electrical and electronics products (E&E), as well as optical and scientific products. Exports of agriculture products rose by 19.4% yoy in Aug, driven by higher shipments of palm oil and palm oilbased products (18.2% yoy). Meanwhile, imports grew at a faster pace of 26.2% yoy in Aug (vs. 25.4% in Jul), driven by higher imports of intermediate goods (40.4%), capital goods (39.6%) and consumption goods (21.2%).
Robust shipments in Malaysia’s key exports markets
By destination, Aug’s exports to the US (which accounted for 15.2% of Malaysia’s total exports for the month) rose a record-high 45.5% yoy. This was driven by strong shipments of E&E products, metal and machinery, equipment and parts as well as palm oil and palm oil-based products, signalling improvement in trade prospects ahead, in our view. Furthermore, exports to China (12% of Malaysia’s total exports) increased by 4.8% yoy, after 2 months of contraction, also driven by strong shipments of E&E products. Exports to Taiwan have also risen significantly (Aug: 75.1% yoy) since Jan 24 following higher exports
of E&E products.Gloves are main beneficiaries of new US tariffs
The recent US-China tariff scuttle may be beneficial for Malaysia’s exports. Last Friday, the US Trade Representative (USTR) revised tariffs on China, including quadrupling tariffs on China-made gloves, while maintaining the tariff rate on semiconductors and solar panels, among others. The USTR also brought forward the proposed timeline for the implementation of the new tariffs from Jan 2026 to Jan 2025 (for select products). These actions may have a positive effect on Malaysia’s trade, it said. In particular, the demand for gloves is likely to soar over the next few months. The broking house gloves analyst expects an increase in orders for gloves with higher shipments expected within the next 3 months. However, rubber gloves accounted for 1.1% share of exports in Jul. Overall, the faster implementation of new tariffs could also encourage more foreign companies to diversify into Malaysia and could be beneficial for the country’s trade in the long run, it said.
Both goods and services to support current account
CGS said it maintains 2024F export growth forecast at 9.0% yoy (2023: -8.0%), supported by an improvement in trade conditions following the 7M24 seasonally adjusted export volume growth of 0.4% yoy vs. -4.2% in 7M23. Meanwhile, seasonally adjusted import volume growth was 15.8% yoy in 7M24 vs -6.1% yoy in 7M23 (Aug data yet to be released). As for the current account, a recovery in the services account following an increase in foreign tourist arrivals could further support current account surplus in tandem with an improvement in the global demand for goods. The house maintains its 2024F current account forecast at 2.7% of GDP (2.5% of GDP in 2025). Business Today
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New Sources of Renewable Energy in Indonesia: Current Development and Future Prospects
As one of the largest and most populous nations in Southeast Asia, Indonesia faces growing energy demands that need the expansion of its energy production capacity.
As one of the largest and most populous nations in Southeast Asia, Indonesia faces growing energy demands that need the expansion of its energy production capacity. Traditionally, the country has relied on fossil fuels, particularly coal, oil, and natural gas, to power its economy. However, the need to reduce greenhouse gas emissions, improve energy security, and meet the goals outlined in the Paris Agreement has led Indonesia to explore alternative, renewable energy sources. In this context, Indonesia has committed to diversifying its energy mix, aiming to achieve 23% renewable energy use by 2025 and 31% by 2050 (Indonesian Ministry of Energy and Mineral Resources, 2020). This article explores new renewable energy sources in Indonesia, discusses the country’s progress in their development, and highlights the challenges that need to be addressed.
Overview of Renewable Energy in Indonesia
Indonesia is endowed with vast natural resources, many of which have the potential to be harnessed for renewable energy. Currently, the country’s renewable energy mix includes hydropower, geothermal, bioenergy, wind, and solar energy. These resources are in varying stages of development, with some more advanced than others. While hydro and geothermal energy are relatively mature sectors, other renewable sources such as solar, wind, and marine energy are still in the early stages of development.
The Indonesian government has outlined its renewable energy strategy in its National Energy Policy (KEN) and the General Plan of National Energy (RUEN). These plans set ambitious goals for increasing the share of renewable energy in the national energy mix and reducing the country’s reliance on fossil fuels (MEMR, 2020). Achieving these goals requires the development of new energy sources and a concerted effort to overcome existing regulatory, financial, and technical challenges. More Modern Diplomacy
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Oil Palm Biomass A Better Option Malaysia’s Energy Source
The New Energy Transition Roadmap, NETR, has identified biomass as a source of energy for the country. Biomass includes wastes from agriculture and the dedicated biomass crop. Agricultural wastes include those from the rice industry, natural rubber, and the oil palm business. Wastes from the palm oil industry dominate in volume. Other biomass crops include algae, kenaf, seaweed, and other energy crops. Algae attracts the most interest. The oil from algae is a potential raw material to produce biofuel including the sustainable aviation fuel, SAF. Japan has been reported to invest heavily on algae cultivation. They partner Sarawak Energy to grow algae. PETRONAS is also collaborating with a Japanese partner to produce SAF from algae.
But the oil palm biomass, mainly the empty fruit bunches, EFBs, has attracted much investor interest. Every year, about 20 million tons are available. The National Biomass Action Plan provides the roadmap to develop this new biomass business. There are those in the world not comfortable with the meteoric rise of the palm oil industry. We now hear of another attempt to undermine the oil palm biomass. A recent report from the UK says the burning of the EFBs can lead to higher carbon emission. This is another nonsensical claim lacking in the science. This again goes to show that enemies of palm oil will resort to anything to discredit the wonder crop. The fact is for a palm oil producing like Malaysia, biomass is much better option than even solar since the import element is almost zero. It is more inclusive economically because the ultimate value would trickle down to the oil palm farmers.
There are many reasons why biofuels are considered a better option than solar energy. Biofuels have a higher energy density. This makes them suitable for applications requiring a compact, high-energy source, such as in aviation, shipping, or heavy machinery. They can be stored and transported easily, providing a continuous and reliable energy source. Solar energy cannot match this. Although solar energy can be stored in batteries, current battery technology is less energy-dense than biofuels, making long-term or large-scale storage more challenging.
Biofuels can often be used in existing internal combustion engines with minimal modifications, allowing for a smoother transition from fossil fuels. This is particularly advantageous in sectors like transportation. Solar energy typically requires significant infrastructure changes, including the installation of solar panels and battery storage systems. Biofuels can provide power on demand, making them a more reliable option for applications that require continuous energy. Biofuels are produced from organic materials, including agricultural waste, dedicated energy crops, and even algae. This production can take place in areas unsuitable for solar panels or can utilize waste materials that would otherwise be discarded. Solar panels require large areas of land. In areas where land is scarce or expensive, biofuel production is more feasible. Biofuel production can be scaled up or down more easily, and the fuel can be transported to where it’s needed. This flexibility makes biofuels a good option where energy needs fluctuate. Solar energy production is location-dependent and requires specific conditions to be most effective. It may not be as scalable in regions with limited sunlight.
When produced sustainably, biofuels can be carbon-neutral, as the carbon dioxide they emit when burned is roughly equivalent to the carbon dioxide absorbed by the plants used to produce them. They can also utilize waste products, reducing overall environmental impact. Solar energy is also carbon-neutral in operation, though the production and disposal of solar panels have environmental impacts. However, once installed, solar panels provide clean energy for decades with minimal additional environmental impact. Biofuels might be considered a better option than solar energy where high energy density, ease of storage, infrastructure compatibility, and continuous power generation are critical. Solar energy, while okay for stationary and renewable power generation, has limitations in terms of energy storage and land use that make biofuels more suitable, especially in transportation and heavy industry. Clearly, new energy from oil palm biomass is a better option for Malaysia. Building a robust oil palm biomass industry is a priority. Business Today
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New US Tariff Hike Could Expedite Demand Shift In Malaysia
Malaysia’s exports rose 12.1% yoy in Aug, higher than what CGS forecasts and Bloomberg consensus expectations. Exports of manufactured goods rose 14.1% yoy, higher than the 10.6% in Jul, boosted by higher shipments of machinery, equipment and parts, electrical and electronics products (E&E), as well as optical and scientific products. Exports of agriculture products rose by 19.4% yoy in Aug, driven by higher shipments of palm oil and palm oilbased products (18.2% yoy). Meanwhile, imports grew at a faster pace of 26.2% yoy in Aug (vs. 25.4% in Jul), driven by higher imports of intermediate goods (40.4%), capital goods (39.6%) and consumption goods (21.2%).
Robust shipments in Malaysia’s key exports markets
By destination, Aug’s exports to the US (which accounted for 15.2% of Malaysia’s total exports for the month) rose a record-high 45.5% yoy. This was driven by strong shipments of E&E products, metal and machinery, equipment and parts as well as palm oil and palm oil-based products, signalling improvement in trade prospects ahead, in our view. Furthermore, exports to China (12% of Malaysia’s total exports) increased by 4.8% yoy, after 2 months of contraction, also driven by strong shipments of E&E products. Exports to Taiwan have also risen significantly (Aug: 75.1% yoy) since Jan 24 following higher exports
of E&E products.Gloves are main beneficiaries of new US tariffs
The recent US-China tariff scuttle may be beneficial for Malaysia’s exports. Last Friday, the US Trade Representative (USTR) revised tariffs on China, including quadrupling tariffs on China-made gloves, while maintaining the tariff rate on semiconductors and solar panels, among others. The USTR also brought forward the proposed timeline for the implementation of the new tariffs from Jan 2026 to Jan 2025 (for select products). These actions may have a positive effect on Malaysia’s trade, it said. In particular, the demand for gloves is likely to soar over the next few months. The broking house gloves analyst expects an increase in orders for gloves with higher shipments expected within the next 3 months. However, rubber gloves accounted for 1.1% share of exports in Jul. Overall, the faster implementation of new tariffs could also encourage more foreign companies to diversify into Malaysia and could be beneficial for the country’s trade in the long run, it said.
Both goods and services to support current account
CGS said it maintains 2024F export growth forecast at 9.0% yoy (2023: -8.0%), supported by an improvement in trade conditions following the 7M24 seasonally adjusted export volume growth of 0.4% yoy vs. -4.2% in 7M23. Meanwhile, seasonally adjusted import volume growth was 15.8% yoy in 7M24 vs -6.1% yoy in 7M23 (Aug data yet to be released). As for the current account, a recovery in the services account following an increase in foreign tourist arrivals could further support current account surplus in tandem with an improvement in the global demand for goods. The house maintains its 2024F current account forecast at 2.7% of GDP (2.5% of GDP in 2025). Business Today
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September 21, 2024
Palm Oil May Climb to 4,500 Ringgit on Biofuel Boom
(Bloomberg) -- Palm oil will begin a new bull phase early next year on the back of strong demand from biofuel makers and healthy purchases by India and China, according to veteran trader Dorab Mistry.
Crop-based fuels have become the fastest growing segment of global vegetable oil demand, Mistry, director at Godrej International Ltd., said at the Globoil conference in Mumbai on Friday. Subsidies given to the sector have also increased, he said.
The tropical oil is expected to trade between $3,700 ringgit ($884) and 4,500 ringgit a ton between now and June 2025, Mistry said. Purchases for the Chinese New Year and Ramadan in the January-March quarter will also be bullish for the market, he said.
Mistry’s comments could support benchmark palm oil futures, which have slipped about 10% from a peak in early April, and have been volatile due to a seasonal weakness in demand and high production.
Benchmark palm oil futures in Kuala Lumpur were at 3,931 ringgit in the afternoon session on Friday. Prices have been trading below 4,500 ringgit since the middle of 2022.
The outlook for soybean oil is bright as the commodity “will continue to benefit from brisk US biodiesel demand,” Mistry said.
Other key points from Mistry’s presentation:
Rapeseed oil prices are rising due to lower production
Palm oil production in 2024 has been under pressure as trees get older and there has been almost no expansion in the plantation area, while yields of fresh fruit bunches are falling
Malaysian palm oil production is estimated at 19.7 million tons in 2024, Indonesian output could be flat this year
World food demand for vegetable oils is expected to grow by 2.5 million tons in 2024-25, compared with a gain of 3 million a year earlier Yahoo Finance
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EU pressured to ease deforestation regulation
European Union was expected to need more canola once it began restricting imports of products linked to deforestation
SASKATOON — The European Union is coming under increasing pressure to delay and to soften its proposed deforestation regulation.
And that could “limit the upside” canola exporters were anticipating because of the new law, says an analyst.
The regulation will ban the import of products linked to the destruction of the world’s forests, including soybeans and palm oil.
The expectation is that will result in increased canola imports to help fill the oilseed void.
However, the regulation is facing significant resistance as it nears the Dec. 30 implementation date.
Reuters reports that Brazil has formally asked the EU not to implement the law as scheduled at the end of the year.
https://www.producer.com/news/eu-pressured-to-ease-deforestation-regulation/#:~:text=Brazil%E2%80%99s%20ministers%20of,years%20of%20negotiation.
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India's import tax hike will not affect Malaysian palm oil exports
KUALA LUMPUR: Malaysia's palm oil sector remains well-positioned to maintain its foothold in India, despite a recent 20 per cent increase in import tax.
According to Malaysian Palm Oil Board (MPOB) Director-General Ahmad Parveez Ghulam Kadir, the tax hike is not a significant threat to the competitiveness of Malaysian palm oil in the Indian market.
While the increase may impact short-term demand, Malaysia's status as the world's second-largest palm oil producer and its stable supply give the sector a strong potential to retain its market position, Ahmad Parveez told Business Times.
"Palm oil is expected to continue a top choice due to its widespread use in cooking, especially in the HORECA (hotel, restaurant, and catering) sector in India.
"Therefore, at this point, the tax increase is not considered a major threat to the competitiveness of Malaysian palm oil in the Indian market," he said.
On average crude palm oil (CPO) prices, Ahmad Parveez said MPOB is optimistic it will remain stable this year given that the increase in India's import taxes also includes other edible oils.
"Therefore, CPO prices are expected to still be traded in the range of RM3,900 to RM4,200 per tonne. This current projection is also maintained based on several other factors, such as stable demand from other markets such as China and the European Union, as well as the potential increase in the use of Indonesian biodiesel, which should continue to curb the overflow of palm oil stocks in the global market," he added.
Meanwhile, SD Guthrie Bhd said the import tax hike has minimal impact on the company, adding that there is continued demand for its products.
The company said India remains a key market for its CPO and refined, bleached, and deodorised (RBD) palm olein.
"As consumption in India grows, the company's robust supply chains will meet that demand. Palm oil remains an essential part of India's edible oil sector and will continue to see healthy growth in the market," it added.
As one of the world's largest certified sustainable palm oil producers with a presence in over 100 countries, about 30 per cent of the company's output is exported to India, and the bulk of it is CPO. New Straits Times
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Malaysia- Department of Environment rejects license for controversial palm oil plantation
The Environment Department (DOE) has rejected the environmental impact assessment (EIA) report for an oil palm plantation project in Kuala Nerus, Terengganu, which previously raised environmental concerns.
According to the DOE’s website, the status of the project’s EIA was revised from “in process” to “not approved”.
A DOE spokesperson confirmed that the proposed Pure Green Development Sdn Bhd project had been rejected. Malaysiakini
Palm Oil May Climb to 4,500 Ringgit on Biofuel Boom
(Bloomberg) -- Palm oil will begin a new bull phase early next year on the back of strong demand from biofuel makers and healthy purchases by India and China, according to veteran trader Dorab Mistry.
Crop-based fuels have become the fastest growing segment of global vegetable oil demand, Mistry, director at Godrej International Ltd., said at the Globoil conference in Mumbai on Friday. Subsidies given to the sector have also increased, he said.
The tropical oil is expected to trade between $3,700 ringgit ($884) and 4,500 ringgit a ton between now and June 2025, Mistry said. Purchases for the Chinese New Year and Ramadan in the January-March quarter will also be bullish for the market, he said.
Mistry’s comments could support benchmark palm oil futures, which have slipped about 10% from a peak in early April, and have been volatile due to a seasonal weakness in demand and high production.
Benchmark palm oil futures in Kuala Lumpur were at 3,931 ringgit in the afternoon session on Friday. Prices have been trading below 4,500 ringgit since the middle of 2022.
The outlook for soybean oil is bright as the commodity “will continue to benefit from brisk US biodiesel demand,” Mistry said.
Other key points from Mistry’s presentation:
Rapeseed oil prices are rising due to lower production
Palm oil production in 2024 has been under pressure as trees get older and there has been almost no expansion in the plantation area, while yields of fresh fruit bunches are falling
Malaysian palm oil production is estimated at 19.7 million tons in 2024, Indonesian output could be flat this year
World food demand for vegetable oils is expected to grow by 2.5 million tons in 2024-25, compared with a gain of 3 million a year earlier Yahoo Finance
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EU pressured to ease deforestation regulation
European Union was expected to need more canola once it began restricting imports of products linked to deforestation
SASKATOON — The European Union is coming under increasing pressure to delay and to soften its proposed deforestation regulation.
And that could “limit the upside” canola exporters were anticipating because of the new law, says an analyst.
The regulation will ban the import of products linked to the destruction of the world’s forests, including soybeans and palm oil.
The expectation is that will result in increased canola imports to help fill the oilseed void.
However, the regulation is facing significant resistance as it nears the Dec. 30 implementation date.
Reuters reports that Brazil has formally asked the EU not to implement the law as scheduled at the end of the year.
https://www.producer.com/news/eu-pressured-to-ease-deforestation-regulation/#:~:text=Brazil%E2%80%99s%20ministers%20of,years%20of%20negotiation.
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India's import tax hike will not affect Malaysian palm oil exports
KUALA LUMPUR: Malaysia's palm oil sector remains well-positioned to maintain its foothold in India, despite a recent 20 per cent increase in import tax.
According to Malaysian Palm Oil Board (MPOB) Director-General Ahmad Parveez Ghulam Kadir, the tax hike is not a significant threat to the competitiveness of Malaysian palm oil in the Indian market.
While the increase may impact short-term demand, Malaysia's status as the world's second-largest palm oil producer and its stable supply give the sector a strong potential to retain its market position, Ahmad Parveez told Business Times.
"Palm oil is expected to continue a top choice due to its widespread use in cooking, especially in the HORECA (hotel, restaurant, and catering) sector in India.
"Therefore, at this point, the tax increase is not considered a major threat to the competitiveness of Malaysian palm oil in the Indian market," he said.
On average crude palm oil (CPO) prices, Ahmad Parveez said MPOB is optimistic it will remain stable this year given that the increase in India's import taxes also includes other edible oils.
"Therefore, CPO prices are expected to still be traded in the range of RM3,900 to RM4,200 per tonne. This current projection is also maintained based on several other factors, such as stable demand from other markets such as China and the European Union, as well as the potential increase in the use of Indonesian biodiesel, which should continue to curb the overflow of palm oil stocks in the global market," he added.
Meanwhile, SD Guthrie Bhd said the import tax hike has minimal impact on the company, adding that there is continued demand for its products.
The company said India remains a key market for its CPO and refined, bleached, and deodorised (RBD) palm olein.
"As consumption in India grows, the company's robust supply chains will meet that demand. Palm oil remains an essential part of India's edible oil sector and will continue to see healthy growth in the market," it added.
As one of the world's largest certified sustainable palm oil producers with a presence in over 100 countries, about 30 per cent of the company's output is exported to India, and the bulk of it is CPO. New Straits Times
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Malaysia- Department of Environment rejects license for controversial palm oil plantation
The Environment Department (DOE) has rejected the environmental impact assessment (EIA) report for an oil palm plantation project in Kuala Nerus, Terengganu, which previously raised environmental concerns.
According to the DOE’s website, the status of the project’s EIA was revised from “in process” to “not approved”.
A DOE spokesperson confirmed that the proposed Pure Green Development Sdn Bhd project had been rejected. Malaysiakini
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September 20, 2024
Global Backlash Erupts Over Europe’s Anti-Deforestation Law
Leaders around the world are asking the European Union to delay rules that would require companies to police their global supply chains.
The European Union has been a world leader on climate change, passing groundbreaking legislation to reduce noxious greenhouse gasses. Now the world is pushing back.
Government officials and business groups around the globe have jacked up their lobbying in recent months to persuade E.U. officials to suspend a landmark environmental law aimed at protecting the planet’s endangered forests by tracing supply chains.
The rules, scheduled to take effect at the end of the year, would affect billions of dollars in traded goods. They have been denounced as “discriminatory and punitive” by countries in Southeast Asia, Latin America and Africa. New York Times
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European Union-Centre-right and socialists clash over EU deforestation law enforcement
The centre-right and the socialists in the European Parliament are at loggerheads over how to enforce the EU’s anti-deforestation law (EUDR), which will soon require companies to prove that EU-sold products – including foods – were not produced on deforested land.
Two leading Members of the European Parliament (MEPs) are once again calling for a delay in its enforcement.
“We call on the Commission to immediately delay the implementation of the Deforestation Law,” said Herbert Dorfmann, EPP coordinator in the European Parliament’s Agriculture Committee (AGRI), and Peter Liese, his counterpart in the Environment Committee (ENVI).
The two described the legislation, which from 30 December will require importers to provide geolocation coordinates of farms producing cocoa, coffee, soy, and livestock, as a “bureaucratic monster.”
According to them, it could threaten the EU’s animal feed supply and disrupt trade in many consumer goods.
“The Commission must take enough time to fix the many problems with the legislation,” they added.
Despite promises from the European Commission to publish additional guidelines to help companies implement the rules, as well as updated FAQs by spring, the Commission assured stakeholders in a meeting last week that they would be issued in October, according to organisations present at the meeting. Euractiv
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Mercosur should work together to reach FTA with China, says Yamandú Orsi
Uruguayan presidential hopeful Yamandú Orsi told Argentine businessmen in Buenos Aires on Wednesday that he remains “skeptical” about the possibility of the Southern Common Market (Mercosur) concluding a Free Trade Agreement (FTA) with the European Union (EU), but insisted that it must remain united to reach such an understanding with China. He also admitted before the Inter-American Council for Trade and Production (CICyP) that “Mercosur is malfunctioning”.
The world “is in a complex moment where there is a lot of uncertainty,” particularly due to “the loss of Europe's leading role,” the former mayor (governor) of Canelones underlined. “Europe is of little importance in the world today,” he added. “And if anything was missing for that, there is a war in the heart of Europe,” the Broad Front (Frente Amplio - FA) candidate also pointed out.
Regarding his slim hopes of an FTA, Orsi made it clear that they stemmed “not because of Mercosur's attitude and will, but fundamentally because Europe, and some specific countries such as France, have opposed this moving forward.”
“Fortunately, in opportunities like this one, one can talk to people who are involved in the issue and I really feel much more optimistic” about the regional bloc's chances of success elsewhere.
“It is very difficult” for Uruguay to achieve an FTA with China, as President Luis Lacalle Pou has insisted, “if it is not with Mercosur,” Orsi also argued. “The option is another: it is the possibility of a Mercosur agreement or an FTA with China.” But “it is complex and it is slow,” he reckoned. Merco Press
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Cocoa Traders Say EU Deforestation Law Set to Fail
(Bloomberg) -- Major cocoa traders have asked the European Union to delay new environmental rules aimed at tackling deforestation amid mounting criticism.
The absence of clarity of key elements in the deforestation regulation, known as EUDR, has made compliance efforts highly uncertain, the European Cocoa Association said in a letter to European Commission President Ursula von der Leyen.
The trade group, which represents top chocolate companies including Barry Callebaut AG and Cargill Inc., called for an extension of the transition period for at least six months after several milestones including the publication of formal guidance have been reached.
The letter comes barely a week after German Chancellor Olaf Scholz pushed back against the regulation, adding to objections voiced by some nations, including Brazil, Indonesia and Malaysia, which argue it will have a negative impact across global commodities markets. The biggest political group in the European Parliament also renewed criticism of the regulation.
“Given these shortcomings, the implementation of the EUDR is respectfully, heading towards critical failure with serious consequences for the cocoa supply chain,” said ECA President Paul Davis. Bloomberg
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MPOC Calls On EU To Delay The Implementation Of EUDR
The Malaysian Palm Oil Council has urged the European Commission to delay the implementation of the EU Deforestation Regulation (EUDR) with the deadline of implementation set for30th December 2024.
The council said the deadlines is not only unrealistic but also poses significant challenges for small farmers, businesses, and governments worldwide. Without action, it said EUDR risks causing severe disruptions, particularly for smallholders who play a crucial role in sustainable palm oil production.
“The EU Commission must heed the growing calls for a delay to the EUDR. A postponement is the only responsible path forward to protect small farmers, provide stability to businesses, and give governments the time they need to prepare. A chaotic implementation in January 2025 will cause more harm than good,” said Belvinder Sron, CEO of MPOC.
Malaysia has consistently highlighted the discriminatory nature of the EUDR, which disproportionately affects developing nations. The rigid December 2024 deadline fails to account for the operational and technical challenges facing palm oil producers, especially smallholders. A range of governments, industries, and experts, both within Europe and globally, have echoed Malaysia’s stance, supporting a delay to allow for a more practical and inclusive implementation.
As it currently stands, the EUDR introduces non-tariff barriers that bring excessive administrative burdens. Without clear compliance guidelines from the EU, the regulation risks excluding small farmers from the EU supply chain entirely.
To address these pressing issues, MPOC said the EU must take immediate action by providing meaningful exemptions for smallholders to prevent their exclusion from global supply chains. Additionally, the EU should establish clear and credible criteria to classify sustainable commodities, such as Malaysian palm oil, as “low risk”. Recognising the Malaysian Sustainable Palm Oil (MSPO) standard as a compliance tool under the EUDR would further facilitate market access for sustainable, zero-deforestation palm oil, ensuring that smallholders are not unfairly burdened.
The EU Deforestation Regulation (EUDR) mandates that all imports into the EU, starting from 30th December 2024, meet stringent requirements including geolocation data, polygon mapping, and comprehensive due diligence. These demands MPOC said places a disproportionate burden on smallholders, many of whom lack the technical capacity to comply. Economic analyses estimate that the annual cost of EUDR compliance for the palm oil sector could reach $650 million, with $260 million falling directly on small farmers.
The government’s MSPO standard currently already guarantees legality and zero-deforestation commitments, while also supporting small farmers. Business Today
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Von der Leyen to propose solution on EU anti-deforestation rules, according to EPP agriculture chief
European Commission President Ursula von der Leyen will propose a way out on the enforcement deadlock on the new anti-deforestation regulation, she told colleagues at a European People’s Party (EPP) meeting this week.
Speaking to Euractiv, MEP and the EPP’s Spokesperson for Agriculture, Herbert Dorfmann, explained that such a proposal could be made in the next few days.
“The president met with the EPP group and said she would propose either a postponement or another temporary solution within days,” he stated, stressing that reopening and revising the regulation should also be considered.
“In the situation we are in, the entry into force is impossible,” Dorfmann added.
The law in question aims to ensure that products imported into the EU – such as cocoa, livestock, coffee, and soy – are not sourced from deforested land, requiring companies to provide geolocation data for farms as proof of compliance.
Von der Leyen’s comments at the EPP meeting may explain the influx of letters the Commission received on Thursday (19 September) concerning the EU Deforestation Regulation (EUDR).
The Socialists have reiterated their support for maintaining the current implementation timeline, while the Greens/EFA group sent von der Leyen a letter seen by Euractiv with similar demands on Thursday evening.
Likewise, Renew MEPs Pascal Canfin, the liberal coordinator for the Environment Committee (ENVI), and Marie-Pierre Vedrenne, his counterpart on the International Trade Committee (INTA), wrote to Green Deal Chief Maroš Šefčovič yesterday, echoing the requests above.
All three groups are calling for the immediate release of the long-delayed guidelines and FAQs to help companies finalise their preparations to implement the rules. The Commission promised to publish these documents in March 2024, along with a benchmarking system ranking countries by their deforestation risk, but neither has been released.
Speaking to Euractiv, Pascal Canfin warned that postponing the EUDR would set a dangerous precedent, opening “a Pandora’s box” that could stall other Green Deal legislation. He called such a move “devastating” for the EU’s global credibility.
Canfin also emphasised the urgency of publishing the long-awaited guidelines, which are crucial for companies to begin compliance preparations. “These guidelines have been ready for months but have been blocked by Ursula von der Leyen,” the French politician added. Euractiv
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EU Ombudsman opens inquiry into legitimacy of CAP rewrite process
The EU Ombudsman has launched an inquiry after ClientEarth and BirdLife raised serious concerns about the ‘emergency’ amendment of the bloc’s agriculture policy – which is allocating around €386 billion in subsidies over five years.
The NGOs presented the complaint to the Ombudsman just earlier this summer, highlighting major democratic issues with the procedure, and pointing out that weakening environmental protections is a threat to the future of farming.
The Ombudsman, Emily O’Reilly, has written to Commission President Ursula von der Leyen, asking a series of questions about the procedure, and requesting a meeting.
ClientEarth lawyer Sarah Martin said: “This is an extremely encouraging move by the EU Ombudsman and indicates that there are indeed democratic questions to probe.
“We took this action because of the vital need for policy that protects the future of farming – and because of the paramount importance of democratic lawmaking. It is the core of just societies and will only become more important as the climate and nature crisis escalates. We cannot see the European Commission repeat what happened with the CAP proposal – and we will be closely following this inquiry.”
In her letter and accompanying questions, the Ombudsman interrogates the Commission on whether it conducted an examination of the available evidence; why it did not consult a diversity of stakeholders beyond four farming organisations; and how it complied with its obligation under the EU Climate Law to assess the amendments against the bloc’s climate goals. She reiterated that ClientEarth and BirdLife were:
“…particularly concerned that the Commission might have relaxed certain environmental requirements without having examined, in a comprehensive manner, the available evidence to make sure that the new rules would not undermine the environmental and climate goals of the EU, as well as the sustainability of EU agriculture in the long run.” Client Earth
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Malaysia and CPTPP: Duty free access for 94pct UK tariff lines by-year end
KUALA LUMPUR: Malaysia has officially signed its first bilateral trade agreement with the United Kingdom (UK) through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which will grant it duty-free access for 94 per cent of UK tariff lines by year-end.
According to the Minister of Investment, Trade and Industry, (Miti) through the notification, Malaysia joins six countries who have completed the required in-country ratification process namely, Japan, Singapore, Chile, New Zealand, Vietnam and Peru.
"The Agreement is expected to enter into force by end-2024 for the UK and all parties that have ratified it."This is a significant milestone as it is effectively Malaysia's first bilateral Free Trade Agreement with the UK."
Once the CPTPP takes effect for the UK, 94 per cent of tariff lines will grant Malaysian exports immediate duty-free access, benefiting key sectors such as palm oil, cocoa, rubber, E&E products, chemicals, as well as machinery and equipment.
"With the UK's entry, the CPTPP will also have a combined gross domestic product (GDP) value of US$15.4 trillion, or 15 pe rcent of global GDP," it said.
Its minister Tengku Datuk Seri Utama Zafrul Aziz said as Malaysia's inaugural bilateral Free Trade Agreement with the UK, the country is optimistic about improved access for Malaysian exports to the UK, which had an economy exceeding US$4 trillion in 2023. Business Times
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India palm oil output to triple in 6 years as farmers plant more, says Agrovet exec
MUMBAI (Reuters) - India's palm oil production is likely to triple in six years as the area under oil palm plantations increases and as plantations become mature for harvesting, a senior industry official said on Friday.
The world's biggest edible oil importer relies on Indonesia, Malaysia and Thailand for palm oil supplies. An increase in production will help India slash edible oil imports that account for nearly two-thirds of its total consumption.
India's palm oil production is likely to jump to 1.2 to 1.5 million metric tons by 2030-31 from the current 400,000 tons, as farmers have been expanding the area, said Sougata Niyogi, chief executive officer of the oil palm plantation division at India's biggest palm oil producer, Godrej Agrovet Ltd. Reuters/ Yahoo
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Swiss Government supports Sabah’s Transformative Change in Sustainable Palm Oil Production
Kota Kinabalu, 19 September – The Embassy of Switzerland in Malaysia made an official visit to Kota Kinabalu from September 12 - 13, 2024, led by the Embassy’s Deputy Head of Mission, Mr. Ralph A. Stamm. This mission was aimed at engaging with key stakeholders involved in driving Sabah’s initiative on Jurisdictional Approach for Sustainable Palm Oil (JASPO), with the Swiss State Secretariat for Economic Affairs (SECO) being one of the key funders of this initiative, through the United Nations Development Programme (UNDP) Green Commodities Programme Phase III (GCP III).
The UNDP-SECO GCP III supports Sabah’s JASPO Initiative through facilitating more effective multi-stakeholder dialogues to catalyse collaboration, building upon achievements made to date, reinforcing a shared vision and goals about the voluntary initiative, strengthening the capacities of the JASPO Secretariat, and facilitating improved ownership among the stakeholders in the implementation of priority actions identified collectively.
The visit provided a significant platform for meaningful discussions on the JASPO Initiative's achievements and ongoing challenges, and the support of UNDP and SECO to accelerate the efforts. Over the course of two days, Mr. Ralph A. Stamm had courtesy meetings with the Secretary of Natural Resources, Chief Conservator of Forests, Chief Executive Facilitator of Forever Sabah, Head of Conservation Sabah of WWF-Malaysia, Deputy Chief Executive Officer of Sawit Kinabalu, and Director of JASPO Secretariat.
“Switzerland is committed to promoting sustainable development globally. We see the Sabah Jurisdictional Approach as a pioneering initiative driven by local actors to make the production of palm oil sustainable at the scale of a whole state. We support this collaboration among very different stakeholders with the goal of improving the lives of workers, farming families and their communities while protecting forests and vulnerable ecosystems,” says Mr. Ralph A. Stamm. UNDP
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US Biofuel Group Asks EPA for Update on UCO Imports Audit
Renewable Fuels Association Cites Economic Harm and Regulatory Gaps
Citing harm to American biofuel producers, the Renewable Fuels Association has questioned the U.S. Environmental Protection Agency about its audit of imported used cooking oil (UCO) contents.
In a Sept. 17 letter to EPA Administrator Michael Regan, association president and CEO Geoff Cooper expressed concerns “about the legitimacy of these imported feedstocks,” suggesting some may contain palm oil or other mislabeled substances.
Alarm has grown in the U.S. in recent months over soaring UCO imports from China, potentially displacing more regulated American-made biomass-based diesel.
Earlier this year, the American Soybean Association’s chief economist Scott Gerlt reported that China began diverting UCO to the U.S. in mid-2023, after Germany sought European Union intervention on Chinese waste oil imports. European UCO imports from China fell by nearly 600,000 metric tons in 2023, while U.S. imports rose by over 700,000 metric tons.
“What was going to the EU was largely rerouted to the United States, where concerns over the integrity of UCO imports had not been raised,” Gerlt stated. More Transport Topics
Global Backlash Erupts Over Europe’s Anti-Deforestation Law
Leaders around the world are asking the European Union to delay rules that would require companies to police their global supply chains.
The European Union has been a world leader on climate change, passing groundbreaking legislation to reduce noxious greenhouse gasses. Now the world is pushing back.
Government officials and business groups around the globe have jacked up their lobbying in recent months to persuade E.U. officials to suspend a landmark environmental law aimed at protecting the planet’s endangered forests by tracing supply chains.
The rules, scheduled to take effect at the end of the year, would affect billions of dollars in traded goods. They have been denounced as “discriminatory and punitive” by countries in Southeast Asia, Latin America and Africa. New York Times
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European Union-Centre-right and socialists clash over EU deforestation law enforcement
The centre-right and the socialists in the European Parliament are at loggerheads over how to enforce the EU’s anti-deforestation law (EUDR), which will soon require companies to prove that EU-sold products – including foods – were not produced on deforested land.
Two leading Members of the European Parliament (MEPs) are once again calling for a delay in its enforcement.
“We call on the Commission to immediately delay the implementation of the Deforestation Law,” said Herbert Dorfmann, EPP coordinator in the European Parliament’s Agriculture Committee (AGRI), and Peter Liese, his counterpart in the Environment Committee (ENVI).
The two described the legislation, which from 30 December will require importers to provide geolocation coordinates of farms producing cocoa, coffee, soy, and livestock, as a “bureaucratic monster.”
According to them, it could threaten the EU’s animal feed supply and disrupt trade in many consumer goods.
“The Commission must take enough time to fix the many problems with the legislation,” they added.
Despite promises from the European Commission to publish additional guidelines to help companies implement the rules, as well as updated FAQs by spring, the Commission assured stakeholders in a meeting last week that they would be issued in October, according to organisations present at the meeting. Euractiv
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Mercosur should work together to reach FTA with China, says Yamandú Orsi
Uruguayan presidential hopeful Yamandú Orsi told Argentine businessmen in Buenos Aires on Wednesday that he remains “skeptical” about the possibility of the Southern Common Market (Mercosur) concluding a Free Trade Agreement (FTA) with the European Union (EU), but insisted that it must remain united to reach such an understanding with China. He also admitted before the Inter-American Council for Trade and Production (CICyP) that “Mercosur is malfunctioning”.
The world “is in a complex moment where there is a lot of uncertainty,” particularly due to “the loss of Europe's leading role,” the former mayor (governor) of Canelones underlined. “Europe is of little importance in the world today,” he added. “And if anything was missing for that, there is a war in the heart of Europe,” the Broad Front (Frente Amplio - FA) candidate also pointed out.
Regarding his slim hopes of an FTA, Orsi made it clear that they stemmed “not because of Mercosur's attitude and will, but fundamentally because Europe, and some specific countries such as France, have opposed this moving forward.”
“Fortunately, in opportunities like this one, one can talk to people who are involved in the issue and I really feel much more optimistic” about the regional bloc's chances of success elsewhere.
“It is very difficult” for Uruguay to achieve an FTA with China, as President Luis Lacalle Pou has insisted, “if it is not with Mercosur,” Orsi also argued. “The option is another: it is the possibility of a Mercosur agreement or an FTA with China.” But “it is complex and it is slow,” he reckoned. Merco Press
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Cocoa Traders Say EU Deforestation Law Set to Fail
(Bloomberg) -- Major cocoa traders have asked the European Union to delay new environmental rules aimed at tackling deforestation amid mounting criticism.
The absence of clarity of key elements in the deforestation regulation, known as EUDR, has made compliance efforts highly uncertain, the European Cocoa Association said in a letter to European Commission President Ursula von der Leyen.
The trade group, which represents top chocolate companies including Barry Callebaut AG and Cargill Inc., called for an extension of the transition period for at least six months after several milestones including the publication of formal guidance have been reached.
The letter comes barely a week after German Chancellor Olaf Scholz pushed back against the regulation, adding to objections voiced by some nations, including Brazil, Indonesia and Malaysia, which argue it will have a negative impact across global commodities markets. The biggest political group in the European Parliament also renewed criticism of the regulation.
“Given these shortcomings, the implementation of the EUDR is respectfully, heading towards critical failure with serious consequences for the cocoa supply chain,” said ECA President Paul Davis. Bloomberg
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MPOC Calls On EU To Delay The Implementation Of EUDR
The Malaysian Palm Oil Council has urged the European Commission to delay the implementation of the EU Deforestation Regulation (EUDR) with the deadline of implementation set for30th December 2024.
The council said the deadlines is not only unrealistic but also poses significant challenges for small farmers, businesses, and governments worldwide. Without action, it said EUDR risks causing severe disruptions, particularly for smallholders who play a crucial role in sustainable palm oil production.
“The EU Commission must heed the growing calls for a delay to the EUDR. A postponement is the only responsible path forward to protect small farmers, provide stability to businesses, and give governments the time they need to prepare. A chaotic implementation in January 2025 will cause more harm than good,” said Belvinder Sron, CEO of MPOC.
Malaysia has consistently highlighted the discriminatory nature of the EUDR, which disproportionately affects developing nations. The rigid December 2024 deadline fails to account for the operational and technical challenges facing palm oil producers, especially smallholders. A range of governments, industries, and experts, both within Europe and globally, have echoed Malaysia’s stance, supporting a delay to allow for a more practical and inclusive implementation.
As it currently stands, the EUDR introduces non-tariff barriers that bring excessive administrative burdens. Without clear compliance guidelines from the EU, the regulation risks excluding small farmers from the EU supply chain entirely.
To address these pressing issues, MPOC said the EU must take immediate action by providing meaningful exemptions for smallholders to prevent their exclusion from global supply chains. Additionally, the EU should establish clear and credible criteria to classify sustainable commodities, such as Malaysian palm oil, as “low risk”. Recognising the Malaysian Sustainable Palm Oil (MSPO) standard as a compliance tool under the EUDR would further facilitate market access for sustainable, zero-deforestation palm oil, ensuring that smallholders are not unfairly burdened.
The EU Deforestation Regulation (EUDR) mandates that all imports into the EU, starting from 30th December 2024, meet stringent requirements including geolocation data, polygon mapping, and comprehensive due diligence. These demands MPOC said places a disproportionate burden on smallholders, many of whom lack the technical capacity to comply. Economic analyses estimate that the annual cost of EUDR compliance for the palm oil sector could reach $650 million, with $260 million falling directly on small farmers.
The government’s MSPO standard currently already guarantees legality and zero-deforestation commitments, while also supporting small farmers. Business Today
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Von der Leyen to propose solution on EU anti-deforestation rules, according to EPP agriculture chief
European Commission President Ursula von der Leyen will propose a way out on the enforcement deadlock on the new anti-deforestation regulation, she told colleagues at a European People’s Party (EPP) meeting this week.
Speaking to Euractiv, MEP and the EPP’s Spokesperson for Agriculture, Herbert Dorfmann, explained that such a proposal could be made in the next few days.
“The president met with the EPP group and said she would propose either a postponement or another temporary solution within days,” he stated, stressing that reopening and revising the regulation should also be considered.
“In the situation we are in, the entry into force is impossible,” Dorfmann added.
The law in question aims to ensure that products imported into the EU – such as cocoa, livestock, coffee, and soy – are not sourced from deforested land, requiring companies to provide geolocation data for farms as proof of compliance.
Von der Leyen’s comments at the EPP meeting may explain the influx of letters the Commission received on Thursday (19 September) concerning the EU Deforestation Regulation (EUDR).
The Socialists have reiterated their support for maintaining the current implementation timeline, while the Greens/EFA group sent von der Leyen a letter seen by Euractiv with similar demands on Thursday evening.
Likewise, Renew MEPs Pascal Canfin, the liberal coordinator for the Environment Committee (ENVI), and Marie-Pierre Vedrenne, his counterpart on the International Trade Committee (INTA), wrote to Green Deal Chief Maroš Šefčovič yesterday, echoing the requests above.
All three groups are calling for the immediate release of the long-delayed guidelines and FAQs to help companies finalise their preparations to implement the rules. The Commission promised to publish these documents in March 2024, along with a benchmarking system ranking countries by their deforestation risk, but neither has been released.
Speaking to Euractiv, Pascal Canfin warned that postponing the EUDR would set a dangerous precedent, opening “a Pandora’s box” that could stall other Green Deal legislation. He called such a move “devastating” for the EU’s global credibility.
Canfin also emphasised the urgency of publishing the long-awaited guidelines, which are crucial for companies to begin compliance preparations. “These guidelines have been ready for months but have been blocked by Ursula von der Leyen,” the French politician added. Euractiv
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EU Ombudsman opens inquiry into legitimacy of CAP rewrite process
The EU Ombudsman has launched an inquiry after ClientEarth and BirdLife raised serious concerns about the ‘emergency’ amendment of the bloc’s agriculture policy – which is allocating around €386 billion in subsidies over five years.
The NGOs presented the complaint to the Ombudsman just earlier this summer, highlighting major democratic issues with the procedure, and pointing out that weakening environmental protections is a threat to the future of farming.
The Ombudsman, Emily O’Reilly, has written to Commission President Ursula von der Leyen, asking a series of questions about the procedure, and requesting a meeting.
ClientEarth lawyer Sarah Martin said: “This is an extremely encouraging move by the EU Ombudsman and indicates that there are indeed democratic questions to probe.
“We took this action because of the vital need for policy that protects the future of farming – and because of the paramount importance of democratic lawmaking. It is the core of just societies and will only become more important as the climate and nature crisis escalates. We cannot see the European Commission repeat what happened with the CAP proposal – and we will be closely following this inquiry.”
In her letter and accompanying questions, the Ombudsman interrogates the Commission on whether it conducted an examination of the available evidence; why it did not consult a diversity of stakeholders beyond four farming organisations; and how it complied with its obligation under the EU Climate Law to assess the amendments against the bloc’s climate goals. She reiterated that ClientEarth and BirdLife were:
“…particularly concerned that the Commission might have relaxed certain environmental requirements without having examined, in a comprehensive manner, the available evidence to make sure that the new rules would not undermine the environmental and climate goals of the EU, as well as the sustainability of EU agriculture in the long run.” Client Earth
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Malaysia and CPTPP: Duty free access for 94pct UK tariff lines by-year end
KUALA LUMPUR: Malaysia has officially signed its first bilateral trade agreement with the United Kingdom (UK) through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which will grant it duty-free access for 94 per cent of UK tariff lines by year-end.
According to the Minister of Investment, Trade and Industry, (Miti) through the notification, Malaysia joins six countries who have completed the required in-country ratification process namely, Japan, Singapore, Chile, New Zealand, Vietnam and Peru.
"The Agreement is expected to enter into force by end-2024 for the UK and all parties that have ratified it."This is a significant milestone as it is effectively Malaysia's first bilateral Free Trade Agreement with the UK."
Once the CPTPP takes effect for the UK, 94 per cent of tariff lines will grant Malaysian exports immediate duty-free access, benefiting key sectors such as palm oil, cocoa, rubber, E&E products, chemicals, as well as machinery and equipment.
"With the UK's entry, the CPTPP will also have a combined gross domestic product (GDP) value of US$15.4 trillion, or 15 pe rcent of global GDP," it said.
Its minister Tengku Datuk Seri Utama Zafrul Aziz said as Malaysia's inaugural bilateral Free Trade Agreement with the UK, the country is optimistic about improved access for Malaysian exports to the UK, which had an economy exceeding US$4 trillion in 2023. Business Times
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India palm oil output to triple in 6 years as farmers plant more, says Agrovet exec
MUMBAI (Reuters) - India's palm oil production is likely to triple in six years as the area under oil palm plantations increases and as plantations become mature for harvesting, a senior industry official said on Friday.
The world's biggest edible oil importer relies on Indonesia, Malaysia and Thailand for palm oil supplies. An increase in production will help India slash edible oil imports that account for nearly two-thirds of its total consumption.
India's palm oil production is likely to jump to 1.2 to 1.5 million metric tons by 2030-31 from the current 400,000 tons, as farmers have been expanding the area, said Sougata Niyogi, chief executive officer of the oil palm plantation division at India's biggest palm oil producer, Godrej Agrovet Ltd. Reuters/ Yahoo
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Swiss Government supports Sabah’s Transformative Change in Sustainable Palm Oil Production
Kota Kinabalu, 19 September – The Embassy of Switzerland in Malaysia made an official visit to Kota Kinabalu from September 12 - 13, 2024, led by the Embassy’s Deputy Head of Mission, Mr. Ralph A. Stamm. This mission was aimed at engaging with key stakeholders involved in driving Sabah’s initiative on Jurisdictional Approach for Sustainable Palm Oil (JASPO), with the Swiss State Secretariat for Economic Affairs (SECO) being one of the key funders of this initiative, through the United Nations Development Programme (UNDP) Green Commodities Programme Phase III (GCP III).
The UNDP-SECO GCP III supports Sabah’s JASPO Initiative through facilitating more effective multi-stakeholder dialogues to catalyse collaboration, building upon achievements made to date, reinforcing a shared vision and goals about the voluntary initiative, strengthening the capacities of the JASPO Secretariat, and facilitating improved ownership among the stakeholders in the implementation of priority actions identified collectively.
The visit provided a significant platform for meaningful discussions on the JASPO Initiative's achievements and ongoing challenges, and the support of UNDP and SECO to accelerate the efforts. Over the course of two days, Mr. Ralph A. Stamm had courtesy meetings with the Secretary of Natural Resources, Chief Conservator of Forests, Chief Executive Facilitator of Forever Sabah, Head of Conservation Sabah of WWF-Malaysia, Deputy Chief Executive Officer of Sawit Kinabalu, and Director of JASPO Secretariat.
“Switzerland is committed to promoting sustainable development globally. We see the Sabah Jurisdictional Approach as a pioneering initiative driven by local actors to make the production of palm oil sustainable at the scale of a whole state. We support this collaboration among very different stakeholders with the goal of improving the lives of workers, farming families and their communities while protecting forests and vulnerable ecosystems,” says Mr. Ralph A. Stamm. UNDP
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US Biofuel Group Asks EPA for Update on UCO Imports Audit
Renewable Fuels Association Cites Economic Harm and Regulatory Gaps
Citing harm to American biofuel producers, the Renewable Fuels Association has questioned the U.S. Environmental Protection Agency about its audit of imported used cooking oil (UCO) contents.
In a Sept. 17 letter to EPA Administrator Michael Regan, association president and CEO Geoff Cooper expressed concerns “about the legitimacy of these imported feedstocks,” suggesting some may contain palm oil or other mislabeled substances.
Alarm has grown in the U.S. in recent months over soaring UCO imports from China, potentially displacing more regulated American-made biomass-based diesel.
Earlier this year, the American Soybean Association’s chief economist Scott Gerlt reported that China began diverting UCO to the U.S. in mid-2023, after Germany sought European Union intervention on Chinese waste oil imports. European UCO imports from China fell by nearly 600,000 metric tons in 2023, while U.S. imports rose by over 700,000 metric tons.
“What was going to the EU was largely rerouted to the United States, where concerns over the integrity of UCO imports had not been raised,” Gerlt stated. More Transport Topics
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September 19, 2024
Deforestation law a "bureaucratic monster" that must be delayed says EPP Group
“We call on the Commission to immediately delay the implementation of the Deforestation Law," say Herbert Dorfmann MEP and Peter Liese MEP, EPP Group Spokesmen in the Parliament's Agriculture and Environment Committees, respectively.
“Farmers, retailers, small and large businesses and Member State governments are deeply concerned about the jungle of implementing rules that will apply to several production sectors. The bureaucratic monster threatens the supply of animal feed and the trade of many consumer goods. The Commission must take enough time to fix the many problems with the legislation,” Dorfmann and Liese demand.
If nothing is done, the new rules, which aim to stop the clearing of forests for the production of soy, coffee, cattle, and other products, but which create enormous bureaucracy for European businesses, will come into force on 30 December 2024.
Note to editors
The EPP Group is the largest political group in the European Parliament with 188 Members from all EU Member States EPP Group
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From queen to empress: Inside Ursula von der Leyen’s power grab
After unveiling her new team, the European Commission president holds more influence than ever.
September 19, 2024 4:01 am CET
By Barbara Moens, Max Griera and Jacopo Barigazzi
BRUSSELS — When Ursula von der Leyen unveiled her team for the next European Commission, she simultaneously silenced the doubters about who was really in charge in Brussels.
As she revealed the 26 commissioners and their roles to the public, one point was immediately clear: she would have unfettered control over European Union politics. In a matter of minutes, she introduced a big title with little responsibility for one of the most powerful countries in the European Union, she propped up her buddies, and she diluted powerful portfolios by dividing them among multiple people.
The power grab was complete. More Politico
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Indonesia, Malaysia Joint Task Force Seeks to Minimize Impacts from EU’s Deforestation Law
Jakarta. Indonesia and Malaysia, which together control the world’s palm oil supplies, have set up a joint task force in response to the European Union deforestation-free regulation (EUDR), an official said on Wednesday.
In May last year, the EU issued a regulation requiring suppliers of agricultural products and cattle to prove they don’t lead to forest degradation. The regulation will come into force next year.
The regulation will seriously affect Indonesia’s crude palm oil exports to the EU, one of the world’s biggest commodity buyers, said Musdhalifah Machmud, deputy for the Coordinating Ministry of Economic Affairs in charge of food and agriculture commodities.
“The task force will seek solutions to the imminent EUDR implementation as it will pose challenges to both Indonesia and Malaysia," Musdhalifah said during a discussion at Trisakti University in Jakarta.
Indonesia in particular will be very hard to meet the EU’s traceability and transparency requirements because the local CPO supply chain depends largely on individual farmers who lack of necessary certification, she said.
In addition, many Indonesian CPO producers aren’t aware of the EUDR so they need training and information.
"We must fight against global misinformation alleging that palm oil plantations have negative impacts on the environment," Musdhalifah said.
The task force have held several discussions with EU officials, most recently last week, to minimize the impacts from the regulation, which could push traditional farmers from the CPO supply chain.
Europe remains Indonesia's third-largest export market after China and India, with an annual volume of 4.2 to 4.3 million tons. Besides palm oil, other Indonesian forestry commodities like cocoa, coffee, rubber, and wood products are also at risk of being impacted by the EUDR. Jakarta Globe
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Coffee growers look to postpone EU deforestation requirement
TEGUCIGALPA, Sept 18 (Reuters) - The world's top coffee body is set to request that the European Union postpone a requirement that imported beans come from areas not linked with deforestation, the group's head said on Wednesday.
The rule, set to take effect at the end of the year, would ban sales of coffee - as well as cocoa, soy, palm oil, wood, rubber and cattle - if companies are unable to prove the product comes from an area where forests haven't been cut down in recent years.
"We can't meet that date, it is not possible," said Vanusia Nogueira, director of the International Coffee Organization (ICO), in an interview.
The ICO, a United Nations-linked intergovernmental group, represents more than 90% of coffee production and more than 60% of consumption worldwide. Top coffee producers such as Brazil, Vietnam and Colombia are member countries.
"It's a very ambitious deadline," Nogueira said. "We believe that by working with (EU leaders), they might be more open to postponing that date."
She did not specify for how long the ICO was looking to postpone the deadline.
Asked about the potential repercussions if coffee producers did not meet the deadline, Nogueira said the EU "will find some solution."
"The European people like coffee very much... they will not be left without coffee," she added.
Nogueira spoke at a coffee summit hosted by the Community of Latin American and Caribbean States (CELAC) in Tegucigalpa.
The nearly three-dozen member nations of the CELAC are expected to close the summit with a declaration requesting the EU to postpone the deforestation requirement date, Honduran Deputy Minister of Coffee Growing Carlos Murillo said. Reuters
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Indonesia Cuts Palm Oil Levy to Be Competitive and Boost Exports
(Bloomberg) -- Indonesia reduced its export levy on palm oil in a bid to boost shipments of the tropical commodity.
The world’s biggest grower set the crude palm oil levy at 7.5% of the reference price, according to a decree posted on the finance ministry’s website. The new rule, effective from Sept. 21, will cut the duty to $63 per ton from $90 for September. The levy for processed palm products will be between 3% and 6%.
The changes will help the Southeast Asian nation become more competitive than neighboring Malaysia, the second-largest producer. That could add further pressure on benchmark palm oil futures, which have fallen more than 10% in Kuala Lumpur since a high in April.
Indonesia collects an export tax and an additional levy on palm exports. The levy, which is utilized to fund replanting programs and provide biodiesel subsidies, was previously being set every month in US dollars. The reference rate — a weighted average based on palm oil prices - is set every month by the trade ministry to calculate export duties.
New Levy Rates: Bloomberg
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Malaysia's SD Guthrie delivers first shipment of EUDR-compliant palm oil to Europe ahead of new rules
Petaling Jaya, 19 September 2024 - SD Guthrie Berhad (SD Guthrie), formerly Sime Darby Plantation Berhad, has delivered its first shipments of 40,250 metric tons (MT) of palm oil to Europe and the United Kingdom, that is fully compliant with the European Union’s Deforestation Regulation (EUDR).
The successful pilot shipments saw 24,250 metric tons (MT) of fully traceable and verified palm oil arrive at SD Guthrie International Zwijndrecht Refinery in the Netherlands last week followed by another shipment of 16,000 metric tons (MT) at the SD Guthrie International Liverpool Refinery in the United Kingdom, today. An important aspect of SD Guthrie’s EUDR-compliance is the 102,337 hectares (ha) of oil palm plantations and smallholder farms within its supply chain. This reflects the company’s efforts to build sustainable and resilient sources while enabling small palm oil producers to participate in the EU deforestation-free supply chain.
SD Guthrie International is a wholly owned subsidary of SD Guthrie, representing its entire downstream operations.
Being EUDR-compliant means that detailed polygon maps of all plantations in SD Guthrie’s supply chain are available, along with deforestation-free assessment reports that meet stringent EUDR definitions. These efforts were supported by comprehensive audit reports documenting compliance with national legislation, International Labour Orgnisation (ILO) standards, and respect for native customary rights.
Using satellite imagery, SD Guthrie partnered with a third-party verifier to assess a forest baseline covering six (6) billion ha, and analysed around 600,000 ha of its plantations for deforestation risks. Having established a No Deforestation, No Peat and No Exploitation policy in 2016, SD Guthrie also employs Crosscheck, an online tool that maps its palm oil from source to supply and allows traders and buyers to establish a chain of traceability.
Under imminent EUDR rules, starting December 30, products being exported into the EU including palm oil, soya, wood, coffee, cattle, cocoa and rubber require conclusive and verifiable proof they are not linked to deforestation at any point in the supply chain.
Datuk Mohamad Helmy Othman Basha, SD Guthrie’s Group Managing Director said: “As an integral part of the food system, we recognise the profound responsibility we bear in driving responsible agriculture practices and to fortify resilient supply chains. We are fortunate to have a small but inclusive supply chain from Papua New Guinea and the Solomon Islands, which has enabled us to map the 17,357 smallholders in our supply chain and consolidate all the information required for EUDR compliance on their behalf. This has allowed us to help them navigate the logistical challenges posed by the EUDR and ensure a smooth, successful implementation.
He added: “Managing our own plantations gives us the ability to enforce stringent controls and the confidence that we can provide evidence if we are asked specific questions, allowing us to build fully compliant EUDR supply chains.”
Founded 200 years ago, SD Guthrie integrates robust business practices with Environmental, Social, and Governance (ESG) aspirations, focused on climate resilience, fair labour practices, and responsible agricultural methods. SD Guthrie
Deforestation law a "bureaucratic monster" that must be delayed says EPP Group
“We call on the Commission to immediately delay the implementation of the Deforestation Law," say Herbert Dorfmann MEP and Peter Liese MEP, EPP Group Spokesmen in the Parliament's Agriculture and Environment Committees, respectively.
“Farmers, retailers, small and large businesses and Member State governments are deeply concerned about the jungle of implementing rules that will apply to several production sectors. The bureaucratic monster threatens the supply of animal feed and the trade of many consumer goods. The Commission must take enough time to fix the many problems with the legislation,” Dorfmann and Liese demand.
If nothing is done, the new rules, which aim to stop the clearing of forests for the production of soy, coffee, cattle, and other products, but which create enormous bureaucracy for European businesses, will come into force on 30 December 2024.
Note to editors
The EPP Group is the largest political group in the European Parliament with 188 Members from all EU Member States EPP Group
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From queen to empress: Inside Ursula von der Leyen’s power grab
After unveiling her new team, the European Commission president holds more influence than ever.
September 19, 2024 4:01 am CET
By Barbara Moens, Max Griera and Jacopo Barigazzi
BRUSSELS — When Ursula von der Leyen unveiled her team for the next European Commission, she simultaneously silenced the doubters about who was really in charge in Brussels.
As she revealed the 26 commissioners and their roles to the public, one point was immediately clear: she would have unfettered control over European Union politics. In a matter of minutes, she introduced a big title with little responsibility for one of the most powerful countries in the European Union, she propped up her buddies, and she diluted powerful portfolios by dividing them among multiple people.
The power grab was complete. More Politico
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Indonesia, Malaysia Joint Task Force Seeks to Minimize Impacts from EU’s Deforestation Law
Jakarta. Indonesia and Malaysia, which together control the world’s palm oil supplies, have set up a joint task force in response to the European Union deforestation-free regulation (EUDR), an official said on Wednesday.
In May last year, the EU issued a regulation requiring suppliers of agricultural products and cattle to prove they don’t lead to forest degradation. The regulation will come into force next year.
The regulation will seriously affect Indonesia’s crude palm oil exports to the EU, one of the world’s biggest commodity buyers, said Musdhalifah Machmud, deputy for the Coordinating Ministry of Economic Affairs in charge of food and agriculture commodities.
“The task force will seek solutions to the imminent EUDR implementation as it will pose challenges to both Indonesia and Malaysia," Musdhalifah said during a discussion at Trisakti University in Jakarta.
Indonesia in particular will be very hard to meet the EU’s traceability and transparency requirements because the local CPO supply chain depends largely on individual farmers who lack of necessary certification, she said.
In addition, many Indonesian CPO producers aren’t aware of the EUDR so they need training and information.
"We must fight against global misinformation alleging that palm oil plantations have negative impacts on the environment," Musdhalifah said.
The task force have held several discussions with EU officials, most recently last week, to minimize the impacts from the regulation, which could push traditional farmers from the CPO supply chain.
Europe remains Indonesia's third-largest export market after China and India, with an annual volume of 4.2 to 4.3 million tons. Besides palm oil, other Indonesian forestry commodities like cocoa, coffee, rubber, and wood products are also at risk of being impacted by the EUDR. Jakarta Globe
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Coffee growers look to postpone EU deforestation requirement
TEGUCIGALPA, Sept 18 (Reuters) - The world's top coffee body is set to request that the European Union postpone a requirement that imported beans come from areas not linked with deforestation, the group's head said on Wednesday.
The rule, set to take effect at the end of the year, would ban sales of coffee - as well as cocoa, soy, palm oil, wood, rubber and cattle - if companies are unable to prove the product comes from an area where forests haven't been cut down in recent years.
"We can't meet that date, it is not possible," said Vanusia Nogueira, director of the International Coffee Organization (ICO), in an interview.
The ICO, a United Nations-linked intergovernmental group, represents more than 90% of coffee production and more than 60% of consumption worldwide. Top coffee producers such as Brazil, Vietnam and Colombia are member countries.
"It's a very ambitious deadline," Nogueira said. "We believe that by working with (EU leaders), they might be more open to postponing that date."
She did not specify for how long the ICO was looking to postpone the deadline.
Asked about the potential repercussions if coffee producers did not meet the deadline, Nogueira said the EU "will find some solution."
"The European people like coffee very much... they will not be left without coffee," she added.
Nogueira spoke at a coffee summit hosted by the Community of Latin American and Caribbean States (CELAC) in Tegucigalpa.
The nearly three-dozen member nations of the CELAC are expected to close the summit with a declaration requesting the EU to postpone the deforestation requirement date, Honduran Deputy Minister of Coffee Growing Carlos Murillo said. Reuters
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Indonesia Cuts Palm Oil Levy to Be Competitive and Boost Exports
(Bloomberg) -- Indonesia reduced its export levy on palm oil in a bid to boost shipments of the tropical commodity.
The world’s biggest grower set the crude palm oil levy at 7.5% of the reference price, according to a decree posted on the finance ministry’s website. The new rule, effective from Sept. 21, will cut the duty to $63 per ton from $90 for September. The levy for processed palm products will be between 3% and 6%.
The changes will help the Southeast Asian nation become more competitive than neighboring Malaysia, the second-largest producer. That could add further pressure on benchmark palm oil futures, which have fallen more than 10% in Kuala Lumpur since a high in April.
Indonesia collects an export tax and an additional levy on palm exports. The levy, which is utilized to fund replanting programs and provide biodiesel subsidies, was previously being set every month in US dollars. The reference rate — a weighted average based on palm oil prices - is set every month by the trade ministry to calculate export duties.
New Levy Rates: Bloomberg
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Malaysia's SD Guthrie delivers first shipment of EUDR-compliant palm oil to Europe ahead of new rules
- A total of 40,250 metric tons delivered to its refineries in the Netherlands and UK
- Shipment sourced from 102,337 ha of oil palm plantations and smallholder farms
Petaling Jaya, 19 September 2024 - SD Guthrie Berhad (SD Guthrie), formerly Sime Darby Plantation Berhad, has delivered its first shipments of 40,250 metric tons (MT) of palm oil to Europe and the United Kingdom, that is fully compliant with the European Union’s Deforestation Regulation (EUDR).
The successful pilot shipments saw 24,250 metric tons (MT) of fully traceable and verified palm oil arrive at SD Guthrie International Zwijndrecht Refinery in the Netherlands last week followed by another shipment of 16,000 metric tons (MT) at the SD Guthrie International Liverpool Refinery in the United Kingdom, today. An important aspect of SD Guthrie’s EUDR-compliance is the 102,337 hectares (ha) of oil palm plantations and smallholder farms within its supply chain. This reflects the company’s efforts to build sustainable and resilient sources while enabling small palm oil producers to participate in the EU deforestation-free supply chain.
SD Guthrie International is a wholly owned subsidary of SD Guthrie, representing its entire downstream operations.
Being EUDR-compliant means that detailed polygon maps of all plantations in SD Guthrie’s supply chain are available, along with deforestation-free assessment reports that meet stringent EUDR definitions. These efforts were supported by comprehensive audit reports documenting compliance with national legislation, International Labour Orgnisation (ILO) standards, and respect for native customary rights.
Using satellite imagery, SD Guthrie partnered with a third-party verifier to assess a forest baseline covering six (6) billion ha, and analysed around 600,000 ha of its plantations for deforestation risks. Having established a No Deforestation, No Peat and No Exploitation policy in 2016, SD Guthrie also employs Crosscheck, an online tool that maps its palm oil from source to supply and allows traders and buyers to establish a chain of traceability.
Under imminent EUDR rules, starting December 30, products being exported into the EU including palm oil, soya, wood, coffee, cattle, cocoa and rubber require conclusive and verifiable proof they are not linked to deforestation at any point in the supply chain.
Datuk Mohamad Helmy Othman Basha, SD Guthrie’s Group Managing Director said: “As an integral part of the food system, we recognise the profound responsibility we bear in driving responsible agriculture practices and to fortify resilient supply chains. We are fortunate to have a small but inclusive supply chain from Papua New Guinea and the Solomon Islands, which has enabled us to map the 17,357 smallholders in our supply chain and consolidate all the information required for EUDR compliance on their behalf. This has allowed us to help them navigate the logistical challenges posed by the EUDR and ensure a smooth, successful implementation.
He added: “Managing our own plantations gives us the ability to enforce stringent controls and the confidence that we can provide evidence if we are asked specific questions, allowing us to build fully compliant EUDR supply chains.”
Founded 200 years ago, SD Guthrie integrates robust business practices with Environmental, Social, and Governance (ESG) aspirations, focused on climate resilience, fair labour practices, and responsible agricultural methods. SD Guthrie
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September 18, 2024
India-Soaps, cosmetics, edible oils to get costlier after hike in import duty on palm oil
Hindustan Unilever, Britannia, Nestle may raise prices by 1.6-2.5 per cent
The recent hikes in import duties on crude and refined edible oils by the Indian government will push up the prices of some fast moving consumer products such as soaps, personal care products, and snacks, as well as edible oils.
Companies such as Hindustan Unilever, Britannia, and Nestle will have to raise prices by 1.6-2.5 per cent and edible oils companies by 20 per cent to protect their margins, analysts said.
Last Friday the central government notified the increase in rates to curb imports and boost farmer incomes. The import duty on crude soyabean, palm and sunflower oils has been raised to 27.5 per cent from 5.5 per cent. The import duty on refined soyabean, palm and sunflower oils was also raised to 37.5 per cent from 13.75 per cent. This was done to protect farmers from lower oilseed prices, which are lower than the minimum support price.
This will directly impact makers of soaps and personal care products who use a derivative of crude palm oil, as also makers of snacks and biscuits using refined palm oil and speciality fats. The Hindu Businessline
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India's edible oil demand to rise despite hefty import duty hike
By Rajendra Jadhav
MUMBAI, Sept 18 (Reuters) - India's edible oil consumption is set to grow at a pace of 2%-3% as cooking oils remain affordable despite an import duty hike, a leading importer told Reuters on Wednesday.
New Delhi on Friday raised the basic import tax on crude and refined edible oils by 20 percentage points to help protect farmers reeling from lower oilseed prices.
"As we enter the peak festival season, demand will remain strong. Despite the duty hike, edible oil prices are affordable," said Sanjeev Asthana, chief executive officer at Patanjali Foods Ltd (PAFO.NS)
"Edible oils' demand could grow by 2%-3% in the 2024-2025 marketing year starting from Nov. 1 because of rising population and prosperity," he said.
India is the world's largest importer and meets 70% of its vegetable oil demand through foreign sourcing. It buys palm oil from Indonesia, Malaysia and Thailand, while soyoil and sunoil come from Argentina, Brazil, Russia and Ukraine.
The country's palm oil imports in 2024-25 could be between 9-10 million metric tons compared to around 9 million tons this year as tropical oil is likely to regain the market share it lost to rival sunflower oil due to a higher premium, he said.
"We witnessed an unusual surge in sunflower oil imports this year due to attractive prices. Next year, sunflower oil imports may return to the normal range of 3 million tons," he said.
India's sunoil imports in the current year are expected to surge to record 3.6 million tons from year-ago 3 million tons.
Russia and Ukraine's abundant sunoil supplies brought prices down and made it competitive against rival oils.
Soyoil imports would remain largely steady next year, around this year's level of 3 million tons, Asthana said.
India's soybean crop in 2024 could rise to 11 million tons from approximately 10 million tons last year, if the weather remains favourable over the next few weeks, he said. Reuters
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CPO prices to remain stable between RM3,850-RM4,050 throughout September, says MPOC
KUALA LUMPUR (Sept 18): Crude palm oil (CPO) prices are expected to remain steady at between RM3,850 and RM4,050 per tonne in September, according to the Malaysian Palm Oil Council (MPOC), despite the commodity approaching peak production season.
MPOC said this is mostly due to lower palm oil stocks in Malaysia compared to last year. In August 2024, Malaysian palm oil stocks rose to 1.88 million tonnes, the highest level in six months. In contrast, from September to November 2023, Malaysian palm oil inventories ranged from 2.3 to 2.4 million tonnes, "a level that is unlikely to be reached in 2024", according to the council.
"As the market anticipates a tighter palm oil supply in coming months, largely due to Indonesia’s upcoming implementation of the B40 biodiesel programme starting in January 2025, palm oil prices are expected to remain stable in September," MPOC said in a statement on Wednesday.
"However, as palm oil is trading at a premium over soft oils in key markets such as Europe and China, imports are expected to remain flat, which will likely cap palm oil prices at RM4,050," it added.
The monthly average prices of CPO was RM3,730 per tonne in September 2023, and RM3,741 in September 2022.
MPOC said Malaysian palm oil production increased modestly by 2.8% from July 2024 to 1.89 million tonnes in August, while exports declined by 9.8% to 1.52 million tonnes. Although exports in August showed a month-to-month decline, there was a significant increase of 24.5% year-over-year.
The appreciation of the Malaysian ringgit has also contributed to the strengthening of palm oil prices in the European market, said MPOC. In August, palm oil was priced US$5 (RM21.21), US$27, and US$43 higher than sunflower oil, soybean oil and rapeseed oil respectively, it said. The Edge Malaysia
India-Soaps, cosmetics, edible oils to get costlier after hike in import duty on palm oil
Hindustan Unilever, Britannia, Nestle may raise prices by 1.6-2.5 per cent
The recent hikes in import duties on crude and refined edible oils by the Indian government will push up the prices of some fast moving consumer products such as soaps, personal care products, and snacks, as well as edible oils.
Companies such as Hindustan Unilever, Britannia, and Nestle will have to raise prices by 1.6-2.5 per cent and edible oils companies by 20 per cent to protect their margins, analysts said.
Last Friday the central government notified the increase in rates to curb imports and boost farmer incomes. The import duty on crude soyabean, palm and sunflower oils has been raised to 27.5 per cent from 5.5 per cent. The import duty on refined soyabean, palm and sunflower oils was also raised to 37.5 per cent from 13.75 per cent. This was done to protect farmers from lower oilseed prices, which are lower than the minimum support price.
This will directly impact makers of soaps and personal care products who use a derivative of crude palm oil, as also makers of snacks and biscuits using refined palm oil and speciality fats. The Hindu Businessline
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India's edible oil demand to rise despite hefty import duty hike
By Rajendra Jadhav
MUMBAI, Sept 18 (Reuters) - India's edible oil consumption is set to grow at a pace of 2%-3% as cooking oils remain affordable despite an import duty hike, a leading importer told Reuters on Wednesday.
New Delhi on Friday raised the basic import tax on crude and refined edible oils by 20 percentage points to help protect farmers reeling from lower oilseed prices.
"As we enter the peak festival season, demand will remain strong. Despite the duty hike, edible oil prices are affordable," said Sanjeev Asthana, chief executive officer at Patanjali Foods Ltd (PAFO.NS)
"Edible oils' demand could grow by 2%-3% in the 2024-2025 marketing year starting from Nov. 1 because of rising population and prosperity," he said.
India is the world's largest importer and meets 70% of its vegetable oil demand through foreign sourcing. It buys palm oil from Indonesia, Malaysia and Thailand, while soyoil and sunoil come from Argentina, Brazil, Russia and Ukraine.
The country's palm oil imports in 2024-25 could be between 9-10 million metric tons compared to around 9 million tons this year as tropical oil is likely to regain the market share it lost to rival sunflower oil due to a higher premium, he said.
"We witnessed an unusual surge in sunflower oil imports this year due to attractive prices. Next year, sunflower oil imports may return to the normal range of 3 million tons," he said.
India's sunoil imports in the current year are expected to surge to record 3.6 million tons from year-ago 3 million tons.
Russia and Ukraine's abundant sunoil supplies brought prices down and made it competitive against rival oils.
Soyoil imports would remain largely steady next year, around this year's level of 3 million tons, Asthana said.
India's soybean crop in 2024 could rise to 11 million tons from approximately 10 million tons last year, if the weather remains favourable over the next few weeks, he said. Reuters
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CPO prices to remain stable between RM3,850-RM4,050 throughout September, says MPOC
KUALA LUMPUR (Sept 18): Crude palm oil (CPO) prices are expected to remain steady at between RM3,850 and RM4,050 per tonne in September, according to the Malaysian Palm Oil Council (MPOC), despite the commodity approaching peak production season.
MPOC said this is mostly due to lower palm oil stocks in Malaysia compared to last year. In August 2024, Malaysian palm oil stocks rose to 1.88 million tonnes, the highest level in six months. In contrast, from September to November 2023, Malaysian palm oil inventories ranged from 2.3 to 2.4 million tonnes, "a level that is unlikely to be reached in 2024", according to the council.
"As the market anticipates a tighter palm oil supply in coming months, largely due to Indonesia’s upcoming implementation of the B40 biodiesel programme starting in January 2025, palm oil prices are expected to remain stable in September," MPOC said in a statement on Wednesday.
"However, as palm oil is trading at a premium over soft oils in key markets such as Europe and China, imports are expected to remain flat, which will likely cap palm oil prices at RM4,050," it added.
The monthly average prices of CPO was RM3,730 per tonne in September 2023, and RM3,741 in September 2022.
MPOC said Malaysian palm oil production increased modestly by 2.8% from July 2024 to 1.89 million tonnes in August, while exports declined by 9.8% to 1.52 million tonnes. Although exports in August showed a month-to-month decline, there was a significant increase of 24.5% year-over-year.
The appreciation of the Malaysian ringgit has also contributed to the strengthening of palm oil prices in the European market, said MPOC. In August, palm oil was priced US$5 (RM21.21), US$27, and US$43 higher than sunflower oil, soybean oil and rapeseed oil respectively, it said. The Edge Malaysia
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September 17, 2024
Does the EU Deforestation Regulation Comply with WTO requirements?
In recent years, global concern over deforestation has intensified, alongside heightened recognition of the role consumer countries play in this loss through the demand for “forest-risk commodities” like beef, soy, palm oil, and timber. In response, many nations, particularly in Europe, North America, and Asia, are adopting regulatory frameworks to sever the link between their consumption and deforestation, making it illegal to place products associated with illegal or any deforestation on the market.
This issue has gained traction within the World Trade Organization (WTO), with increased calls for debate in the latter half of 2024 as the EU Deforestation Regulation (EUDR) approaches implementation at the end of the year. Critics, especially from producer nations, have raised concerns that the EUDR’s unilateral trade standards could impose higher costs or barriers, particularly for small businesses.
This raises the question of whether the EUDR and similar regulations, such as the proposed US FOREST Act, could potentially conflict with WTO obligations. This report explores the potential conflicts between regulations like the EUDR and WTO obligations, assessing stakeholder concerns and determining whether these regulations align with international trade law. Report at Forest Trends
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Malaysian palm oil industry activists aggressively protect orangutans
MALAYSIA is the world's second largest oil palm producer with export value and commodity-based products exceeding RM160 billion annually.
The consistent export value is due to the effect of a large part of the awareness of industry players increasingly emphasizing environmental, social and governance (ESG) elements in their operations.
Their focus now is not just the pursuit of profit, but responsibility towards the conservation aspect is becoming the main agenda in the policy of Malaysian oil palm plantation companies.
The establishment of the Malaysian Palm Oil Green Conservation Foundation (MPOGCF) is to support and support this ESG effort from the point of view of forest and wildlife conservation in the country's oil palm industry landscape. One of MPOGCF's main focuses at the moment is the orangutan conservation segment.
In its 10-year plan, MPOGCF has started an orangutan conservation initiative that includes three main projects, namely Orangutan Habitat Restoration in the Ulu Segama-Malua Forest Reserve in Lahad Datu, Sabah; funding of RM1.2 million for the orangutan population survey in Sabah and sponsorship of RM1.1 million to upgrade the Borneo orangutan exhibition center at Zoo Negara.
This foundation has drawn up a long-term plan to ensure that the oil palm industry is always on track to support the national agenda from the aspect of biodiversity conservation.
Recently, MPOGCF took another step forward when it was responsible for moving the Orang Utan Diplomacy program 'in situ'. This idea was sparked by the Minister of Plantation and Commodities, Datuk Seri Johari Abdul Ghani when officiating World Orangutan Day 2024 recently.
For this purpose, industrialists and palm oil importers are invited to sponsor orangutans 'in situ' in selected High Conservation Value (HCV) areas.
Why are orangutans so close to MPOGCF? Because this wildlife is the 'icon' of the attacks of environmental fighters, especially from the West, against the Malaysian oil palm industry.
Being the 'tool' of this attack of economic interest, the orangutan is used as a symbol of the extinction of the entire biodiversity of the forest, supposedly destroyed simply to make way for oil palm plantations.
The attack or the term 'blackwashing' among environmental activists is actually a two-pronged tactical move to kill the country's palm industry, thereby ensuring that other vegetable oils become the primary choice of consumers around the world instead of palm oil. Berita Harian
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Study reveals tropical oils' dual impact: Vital vitamins and dangerous side effects
Tropical oils: balancing health benefits with risks—a comprehensive review sheds light on coconut and palm oil's impact on nutrition, disease prevention, and long-term health concerns.
A recent study published in BMC Public Health reviewed the benefits and challenges of tropical oils.
Tropical oils, such as coconut and palm oil, have a cultural and historical significance and are integral to local cuisines in Africa. While tropical oils are notable for their unique qualities, their consumption has been contentious, necessitating scrutiny of their health benefits and concerns.
Palm oil has diverse applications in cosmetics, food, and other industries. It has a prominent position in tropical regions due to its economic significance, albeit the high levels of saturated fats have raised concerns.
Coconut oil is also popular in the tropics and has various applications in medicine, foods, and cosmetics. However, concerns regarding coconut oil intake are primarily related to its high levels of saturated fats.
While some studies have suggested positive and negative health outcomes associated with tropical oils, others have linked their consumption to a higher cardiovascular risk. As such, it is imperative to evaluate the health implications of tropical oils.
About the study
In the present study, researchers performed a scoping review to evaluate the health benefits and challenges of tropical oil consumption. Relevant studies were searched for in the JSTOR, PubMed, Central, Google Scholar, ProQuest, and Dimensions AI databases.
Eligible studies examined benefits and challenges related to tropical oils or used primary data and reviews. Exclusions were preprints, commentaries, conference papers, editorials, letters, and pre-2015 publications.
After records were duplicated, titles/abstracts were screened, and full texts were reviewed. Data on study characteristics, population, health benefits, and challenges of consuming tropical oils were extracted.
Subsequently, a thematic analysis was performed to explore the common benefits and challenges from selected studies. Further, a narrative synthesis was undertaken to investigate the trends in the literature.
Findings More News Medical
Does the EU Deforestation Regulation Comply with WTO requirements?
In recent years, global concern over deforestation has intensified, alongside heightened recognition of the role consumer countries play in this loss through the demand for “forest-risk commodities” like beef, soy, palm oil, and timber. In response, many nations, particularly in Europe, North America, and Asia, are adopting regulatory frameworks to sever the link between their consumption and deforestation, making it illegal to place products associated with illegal or any deforestation on the market.
This issue has gained traction within the World Trade Organization (WTO), with increased calls for debate in the latter half of 2024 as the EU Deforestation Regulation (EUDR) approaches implementation at the end of the year. Critics, especially from producer nations, have raised concerns that the EUDR’s unilateral trade standards could impose higher costs or barriers, particularly for small businesses.
This raises the question of whether the EUDR and similar regulations, such as the proposed US FOREST Act, could potentially conflict with WTO obligations. This report explores the potential conflicts between regulations like the EUDR and WTO obligations, assessing stakeholder concerns and determining whether these regulations align with international trade law. Report at Forest Trends
--------
Malaysian palm oil industry activists aggressively protect orangutans
MALAYSIA is the world's second largest oil palm producer with export value and commodity-based products exceeding RM160 billion annually.
The consistent export value is due to the effect of a large part of the awareness of industry players increasingly emphasizing environmental, social and governance (ESG) elements in their operations.
Their focus now is not just the pursuit of profit, but responsibility towards the conservation aspect is becoming the main agenda in the policy of Malaysian oil palm plantation companies.
The establishment of the Malaysian Palm Oil Green Conservation Foundation (MPOGCF) is to support and support this ESG effort from the point of view of forest and wildlife conservation in the country's oil palm industry landscape. One of MPOGCF's main focuses at the moment is the orangutan conservation segment.
In its 10-year plan, MPOGCF has started an orangutan conservation initiative that includes three main projects, namely Orangutan Habitat Restoration in the Ulu Segama-Malua Forest Reserve in Lahad Datu, Sabah; funding of RM1.2 million for the orangutan population survey in Sabah and sponsorship of RM1.1 million to upgrade the Borneo orangutan exhibition center at Zoo Negara.
This foundation has drawn up a long-term plan to ensure that the oil palm industry is always on track to support the national agenda from the aspect of biodiversity conservation.
Recently, MPOGCF took another step forward when it was responsible for moving the Orang Utan Diplomacy program 'in situ'. This idea was sparked by the Minister of Plantation and Commodities, Datuk Seri Johari Abdul Ghani when officiating World Orangutan Day 2024 recently.
For this purpose, industrialists and palm oil importers are invited to sponsor orangutans 'in situ' in selected High Conservation Value (HCV) areas.
Why are orangutans so close to MPOGCF? Because this wildlife is the 'icon' of the attacks of environmental fighters, especially from the West, against the Malaysian oil palm industry.
Being the 'tool' of this attack of economic interest, the orangutan is used as a symbol of the extinction of the entire biodiversity of the forest, supposedly destroyed simply to make way for oil palm plantations.
The attack or the term 'blackwashing' among environmental activists is actually a two-pronged tactical move to kill the country's palm industry, thereby ensuring that other vegetable oils become the primary choice of consumers around the world instead of palm oil. Berita Harian
--------
Study reveals tropical oils' dual impact: Vital vitamins and dangerous side effects
Tropical oils: balancing health benefits with risks—a comprehensive review sheds light on coconut and palm oil's impact on nutrition, disease prevention, and long-term health concerns.
A recent study published in BMC Public Health reviewed the benefits and challenges of tropical oils.
Tropical oils, such as coconut and palm oil, have a cultural and historical significance and are integral to local cuisines in Africa. While tropical oils are notable for their unique qualities, their consumption has been contentious, necessitating scrutiny of their health benefits and concerns.
Palm oil has diverse applications in cosmetics, food, and other industries. It has a prominent position in tropical regions due to its economic significance, albeit the high levels of saturated fats have raised concerns.
Coconut oil is also popular in the tropics and has various applications in medicine, foods, and cosmetics. However, concerns regarding coconut oil intake are primarily related to its high levels of saturated fats.
While some studies have suggested positive and negative health outcomes associated with tropical oils, others have linked their consumption to a higher cardiovascular risk. As such, it is imperative to evaluate the health implications of tropical oils.
About the study
In the present study, researchers performed a scoping review to evaluate the health benefits and challenges of tropical oil consumption. Relevant studies were searched for in the JSTOR, PubMed, Central, Google Scholar, ProQuest, and Dimensions AI databases.
Eligible studies examined benefits and challenges related to tropical oils or used primary data and reviews. Exclusions were preprints, commentaries, conference papers, editorials, letters, and pre-2015 publications.
After records were duplicated, titles/abstracts were screened, and full texts were reviewed. Data on study characteristics, population, health benefits, and challenges of consuming tropical oils were extracted.
Subsequently, a thematic analysis was performed to explore the common benefits and challenges from selected studies. Further, a narrative synthesis was undertaken to investigate the trends in the literature.
Findings More News Medical
September 16, 2024
Is Ursula von der Leyen Greenwashing the EU's Green Deal in her second term? The EU’s shift in priorities raises red flags for NGOs
Ursula von der Leyen’s political programme for her second term as President of the European Commission makes wide ranging promises from Europe’s green agenda to accelerating industrial competitiveness. Is the programme feasible?
When Ursula von der Leyen recently unveiled her political programme to the European Parliament, she executed a balancing act worthy of Olympic gold. On one hand, she pledged to uphold the European Green Deal targets. On the other, she shifted focus towards industrial competitiveness and deregulation—a move that could unravel decades of climate and environmental progress. The new guidelines only mention the critical loss of biodiversity in passing, and health-threatening pollution isn't even on the radar.
With the impacts of the planetary crisis rapidly becoming an existential threat to both our citizens’ security and our economic system, this change in priorities begs the question: Is the EU still serious about its long-term resilience, or are its citizens being deceived? The European Parliament must urgently demand clarity and assert its role in accelerating the fight against climate change, nature loss and pollution.
From vagueness to accountability: The Commissioner hearings
As the upcoming Commissioner hearings approach, it is crucial that they face rigorous questioning on their environmental credentials. They must demonstrate a deep understanding of the priorities they are expected to champion, ensuring that vested interests, particularly from the agro- and fossil fuel lobbies, do not infiltrate the top floors of the Berlaymont. Gaps and weaknesses in the allocation of responsibilities must be carefully examined, and corrections by the Commission President-elect should be demanded, for the EU to meet its domestic and international goals.
The Green Deal Executive Vice-President: A job left unfinished
In 2019, the appointment of an Executive Vice-President for the European Green Deal was a game-changer. Overseeing key areas like climate, energy, transport, environment, agriculture, and health, this role was instrumental in advancing the EU’s sustainability agenda.
History shows that without committed leadership, environmental initiatives quickly lose momentum. An Executive Vice-President - or similar - must continue to bear responsibility for climate, nature and zero pollution, directly overseeing relevant Directorates-General to keep their mission on track. This job requires a strong leader with a proven track record. Anything less risks downgrading the Green Deal's importance within the EU hierarchy — a surefire way to spark conflicts between economic interests and planetary limits, with human health and wellbeing caught in the crossfire.
Burden reduction: A Trojan horse for environmental rollbacks?
Von der Leyen’s focus on simplification and reducing administrative burdens may sound appealing — after all, who wouldn't want to cut through red tape? But when it comes to environmental regulations, there's a real danger that this push for "simplification" could serve as a cover to weaken existing protections. Earlier this year, the rush for simplification led to the environmental deregulation of much of the EU’s costly farm policy, bypassing any public debate or proper assessment.
All Commissioners should commit to a non-regression principle, ensuring the EU does not weaken its current levels of environmental protection. When stress testing the entire EU acquis, the Commission must prioritise bolstering the administrative capacity and procedures of EU Member States — many of whom have historically struggled with the effective implementation of environmental policies.
A Clean Industrial Deal — or a dirty compromise?
Industry is undeniably vital to Europe's economy, providing jobs and generating income. But it also comes with significant environmental and health impacts. To ensure a sustainable future, we must invest in tomorrow’s lead industries and technologies rather than prop up yesterday’s, or worse, send European industry down blind alleys. The success of the new Clean Industrial Deal hinges on it being firmly aligned with the European Green Deal.
New policies must prioritise green industrial transformation — emphasising electrification, efficiency, and circularity — without sacrificing social security, biodiversity or environmental health. This means clear, ambitious targets for reducing emissions and pollution. The EU must move towards a toxic-free future, cutting absolute energy and resource demand, phase out fossil fuels, and avoid harmful or costly solutions like new nuclear reactors and bioenergy.
Funding for industry must be fully aligned with the EU’s green goals, with stringent social and environmental conditionalities. The EU should also promote demand for green products by creating lead markets, like green steel in the automotive sector, stimulating green public procurement, and supporting net-zero manufacturing through EU-level funds.
Turbocharging green investments: you can’t spend the same coin twice
The green transition demands substantial financial investments, as confirmed by the Commission’s own research. A ‘European Social and Green Prosperity Plan’ could unlock over €1 trillion in public investments by 2030, ensuring that all public and private spending aligns with the EU’s sustainability goals. This plan should include a successor to the NextGenerationEU that runs out in 2026, a Just Transition Directive to protect workers' rights during the green transition, new and dedicated funding for large-scale nature restoration and a mandate for EU governments to increase national green investments supported by lower interest rates for green projects.
At a time of unprecedented strain on public finances, responsible government expenditure is crucial. Following decades of empty promises, the Commission must introduce a legally binding phase-out of all fossil fuels and biodiversity harmful subsidies, applicable to both national and EU funds. The EU’s agricultural policy, which accounts for one-third of the total EU budget, should finally undergo a full fitness check review, with results available before launching any new proposals.
The test ahead
Von der Leyen’s political guidelines set the stage, but the real test lies ahead. Europe needs strong, ambitious leadership on climate, nature and zero pollution, along with strict enforcement, a genuine green industrial transformation, and a firm commitment to green investments to keep the Green Deal on track. Anything less risks turning a bold vision into an empty promise — a risk the planet and its people cannot afford.
The Green Deal introduced much-needed reforms. The new EU institutions must prioritise the smart implementation and enforcement of these laws as well as closing remaining gaps to ensure a fast and fair transition. Endless regulatory reviews and revisions would only trigger years of economic uncertainty and deepen societal divisions. The Parliament Magazine
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Malaysia has mapped out 70 percent of independent smallholders in preparation for EUDR
KUALA LUMPUR: The Malaysian Palm Oil Board (MPOB) has successfully mapped around 70 per cent of independent smallholders as part of its project to chart oil palm plantation coverage across the country.
MPOB director general Datuk Ahmad Parveez Ghulam Kadir noted that the data, accessible via the MPOB GeoPALM Portal, includes 85 per cent of organised smallholders and 88 per cent of estates in Peninsular Malaysia.
By leveraging remote sensing technology and geographic information systems (GIS), he said MPOB is able to monitor plantations nationwide, providing valuable insights for the industry.
"The mapping project, done in collaboration with the Malaysian Space Agency (MYSA), has covered most areas, with Sabah's update expected by year-end,” he told Bernama.
In line with the EU Deforestation Regulation (EUDR), Ahmad Parveez said MPOB has developed geolocation and polygon data for licensed oil palm growers, a key requirement for accessing the EU market.
"This effort involved close collaboration with geospatial data agencies such as the Department of Survey and Mapping Malaysia (JUPEM), the Sabah Lands and Surveys Department (JTU), and the Land and Survey Department Sarawak (LANDAS) to ensure the accuracy and reliability of the geolocation data and polygon maps generated for plantations,” he explained.
The MPOB’s GeoPALM Portal has been showcased at several international forums, including the Roundtable for Smallholder Inclusion for EUDR Requirements and the 1st Focus Group Discussion on EUDR Compliance.
Ahmad Parveez also highlighted that efforts are being intensified in collaboration with the state governments of Sabah and Sarawak to ensure that all oil palm growers in these regions meet the stringent standards of the EUDR.
He noted that stakeholders and smallholders have responded positively to the geo-mapping initiative, stating, "MPOB greatly appreciates the continued interest and support from all stakeholders and looks forward to providing further updates as they become available".
MPOB is spearheading the project to map oil palm plantation coverage in line with the National Agri-Commodity Policy (DAKN 2030).
Key objectives include capping the national oil palm planted area at 6.5 million hectares, banning new planting, tightening regulations on existing oil palm on peatlands, restricting the conversion of Permanent Forest Reserve (PRF) for agricultural activities, and making official plantation maps publicly accessible.
Ahmad Parveez pointed out that Indonesia is preparing for EUDR compliance by developing a National Dashboard for Sustainable Commodity Data.
This initiative aims to improve the traceability of key commodities, such as palm oil, to align with EUDR standards.
He emphasised the collaborative efforts between Indonesia and Malaysia through the Joint Task Force, underscoring a unified regional approach to effectively address the challenges posed by the EUDR. - Bernama/ The StarMY
--------
Golden Veroleum Liberia dismisses reports of failure to adhere to environmental protection policies.
Sinoe County, Liberia, 16 September 2024: Oil Palm Company Golden Veroleum Liberia (GVL) says it is committed to protecting the environment and communities around its operational areas by implementing its environmental protection policies.
Golden Veroleum Liberia dismisses reports of failure to adhere to environmental protection policies.
Sinoe County, Liberia, 16 September 2024: Oil Palm Company Golden Veroleum Liberia (GVL) says it is committed to protecting the environment and communities around its operational areas by implementing its environmental protection policies.
GVL says its environmental performance is independently audited every year as a condition of an Environmental Permit granted by the Government of Liberia, noting “GVL’s environmental permits for our Liberian operations, including Tarjuowon mill, have been renewed following the submission of the most recent Environment Audit Report (EAR) in May 2024.”
In a press release, Management explains that these reports include recommendations to optimize the company’s environmental operations. “GVL takes this feedback seriously and has developed an action plan to remedy outstanding issues. These actions will be submitted to the Environmental Protection Agency in the third quarter of 2024.”
No Phosphate Found in Drinking Water
It counters a report by a local daily, The Daylight, that ‘water samples tested positive for excessive phosphate levels’, which could be harmful to human health. This report clearly misunderstands the workings of a palm oil mill and misrepresents auditors’ findings.
The release continues that Phosphate testing was conducted on GVL’s palm oil mill effluent (POME) storage pools, which store and treat POME before it is used as organic fertilizer on estates.
“This effluent is not meant for human consumption, and application is carefully controlled and monitored on our estates to minimize runoff into waterways. GVL will continue treatment to reduce POME phosphate levels in line with recommendations by the EAR.”
It points out that the EAR also identified improvements to how empty fruit bunches (EFBs) should be managed, adding, “EFBs were not found to be polluting water sources, but GVL has taken immediate steps to identify alternative areas for the safe disposal of EFBs to counter any risk of water pollution.”
Committed to Action on EAR Report Recommendations
Management says while it remains positive about GVL’s overall environmental record, the Tarjuowon EAR identified a number of recommendations for improvement, including enhancing health and safety protocols for staff and addressing dust and noise from trucks passing through local communities. It reveals that GVL has developed an action plan to address these issues in line with EAR recommendations and that these changes will be implemented by the end of 2024.
“GVL continues to welcome community feedback and encourages engagement through our grievance management process. Our sustainability department handles all grievances, and grievance procedures are included in all our MOUs.”
GVL maintains that recent articles published by The DayLight and published in other outlets continue to reprint inaccuracies and misrepresent Golden Veroleum Liberia’s (GVL) environmental record. Press Release/The New Dawn Liberia
Is Ursula von der Leyen Greenwashing the EU's Green Deal in her second term? The EU’s shift in priorities raises red flags for NGOs
Ursula von der Leyen’s political programme for her second term as President of the European Commission makes wide ranging promises from Europe’s green agenda to accelerating industrial competitiveness. Is the programme feasible?
When Ursula von der Leyen recently unveiled her political programme to the European Parliament, she executed a balancing act worthy of Olympic gold. On one hand, she pledged to uphold the European Green Deal targets. On the other, she shifted focus towards industrial competitiveness and deregulation—a move that could unravel decades of climate and environmental progress. The new guidelines only mention the critical loss of biodiversity in passing, and health-threatening pollution isn't even on the radar.
With the impacts of the planetary crisis rapidly becoming an existential threat to both our citizens’ security and our economic system, this change in priorities begs the question: Is the EU still serious about its long-term resilience, or are its citizens being deceived? The European Parliament must urgently demand clarity and assert its role in accelerating the fight against climate change, nature loss and pollution.
From vagueness to accountability: The Commissioner hearings
As the upcoming Commissioner hearings approach, it is crucial that they face rigorous questioning on their environmental credentials. They must demonstrate a deep understanding of the priorities they are expected to champion, ensuring that vested interests, particularly from the agro- and fossil fuel lobbies, do not infiltrate the top floors of the Berlaymont. Gaps and weaknesses in the allocation of responsibilities must be carefully examined, and corrections by the Commission President-elect should be demanded, for the EU to meet its domestic and international goals.
The Green Deal Executive Vice-President: A job left unfinished
In 2019, the appointment of an Executive Vice-President for the European Green Deal was a game-changer. Overseeing key areas like climate, energy, transport, environment, agriculture, and health, this role was instrumental in advancing the EU’s sustainability agenda.
History shows that without committed leadership, environmental initiatives quickly lose momentum. An Executive Vice-President - or similar - must continue to bear responsibility for climate, nature and zero pollution, directly overseeing relevant Directorates-General to keep their mission on track. This job requires a strong leader with a proven track record. Anything less risks downgrading the Green Deal's importance within the EU hierarchy — a surefire way to spark conflicts between economic interests and planetary limits, with human health and wellbeing caught in the crossfire.
Burden reduction: A Trojan horse for environmental rollbacks?
Von der Leyen’s focus on simplification and reducing administrative burdens may sound appealing — after all, who wouldn't want to cut through red tape? But when it comes to environmental regulations, there's a real danger that this push for "simplification" could serve as a cover to weaken existing protections. Earlier this year, the rush for simplification led to the environmental deregulation of much of the EU’s costly farm policy, bypassing any public debate or proper assessment.
All Commissioners should commit to a non-regression principle, ensuring the EU does not weaken its current levels of environmental protection. When stress testing the entire EU acquis, the Commission must prioritise bolstering the administrative capacity and procedures of EU Member States — many of whom have historically struggled with the effective implementation of environmental policies.
A Clean Industrial Deal — or a dirty compromise?
Industry is undeniably vital to Europe's economy, providing jobs and generating income. But it also comes with significant environmental and health impacts. To ensure a sustainable future, we must invest in tomorrow’s lead industries and technologies rather than prop up yesterday’s, or worse, send European industry down blind alleys. The success of the new Clean Industrial Deal hinges on it being firmly aligned with the European Green Deal.
New policies must prioritise green industrial transformation — emphasising electrification, efficiency, and circularity — without sacrificing social security, biodiversity or environmental health. This means clear, ambitious targets for reducing emissions and pollution. The EU must move towards a toxic-free future, cutting absolute energy and resource demand, phase out fossil fuels, and avoid harmful or costly solutions like new nuclear reactors and bioenergy.
Funding for industry must be fully aligned with the EU’s green goals, with stringent social and environmental conditionalities. The EU should also promote demand for green products by creating lead markets, like green steel in the automotive sector, stimulating green public procurement, and supporting net-zero manufacturing through EU-level funds.
Turbocharging green investments: you can’t spend the same coin twice
The green transition demands substantial financial investments, as confirmed by the Commission’s own research. A ‘European Social and Green Prosperity Plan’ could unlock over €1 trillion in public investments by 2030, ensuring that all public and private spending aligns with the EU’s sustainability goals. This plan should include a successor to the NextGenerationEU that runs out in 2026, a Just Transition Directive to protect workers' rights during the green transition, new and dedicated funding for large-scale nature restoration and a mandate for EU governments to increase national green investments supported by lower interest rates for green projects.
At a time of unprecedented strain on public finances, responsible government expenditure is crucial. Following decades of empty promises, the Commission must introduce a legally binding phase-out of all fossil fuels and biodiversity harmful subsidies, applicable to both national and EU funds. The EU’s agricultural policy, which accounts for one-third of the total EU budget, should finally undergo a full fitness check review, with results available before launching any new proposals.
The test ahead
Von der Leyen’s political guidelines set the stage, but the real test lies ahead. Europe needs strong, ambitious leadership on climate, nature and zero pollution, along with strict enforcement, a genuine green industrial transformation, and a firm commitment to green investments to keep the Green Deal on track. Anything less risks turning a bold vision into an empty promise — a risk the planet and its people cannot afford.
The Green Deal introduced much-needed reforms. The new EU institutions must prioritise the smart implementation and enforcement of these laws as well as closing remaining gaps to ensure a fast and fair transition. Endless regulatory reviews and revisions would only trigger years of economic uncertainty and deepen societal divisions. The Parliament Magazine
--------
Malaysia has mapped out 70 percent of independent smallholders in preparation for EUDR
KUALA LUMPUR: The Malaysian Palm Oil Board (MPOB) has successfully mapped around 70 per cent of independent smallholders as part of its project to chart oil palm plantation coverage across the country.
MPOB director general Datuk Ahmad Parveez Ghulam Kadir noted that the data, accessible via the MPOB GeoPALM Portal, includes 85 per cent of organised smallholders and 88 per cent of estates in Peninsular Malaysia.
By leveraging remote sensing technology and geographic information systems (GIS), he said MPOB is able to monitor plantations nationwide, providing valuable insights for the industry.
"The mapping project, done in collaboration with the Malaysian Space Agency (MYSA), has covered most areas, with Sabah's update expected by year-end,” he told Bernama.
In line with the EU Deforestation Regulation (EUDR), Ahmad Parveez said MPOB has developed geolocation and polygon data for licensed oil palm growers, a key requirement for accessing the EU market.
"This effort involved close collaboration with geospatial data agencies such as the Department of Survey and Mapping Malaysia (JUPEM), the Sabah Lands and Surveys Department (JTU), and the Land and Survey Department Sarawak (LANDAS) to ensure the accuracy and reliability of the geolocation data and polygon maps generated for plantations,” he explained.
The MPOB’s GeoPALM Portal has been showcased at several international forums, including the Roundtable for Smallholder Inclusion for EUDR Requirements and the 1st Focus Group Discussion on EUDR Compliance.
Ahmad Parveez also highlighted that efforts are being intensified in collaboration with the state governments of Sabah and Sarawak to ensure that all oil palm growers in these regions meet the stringent standards of the EUDR.
He noted that stakeholders and smallholders have responded positively to the geo-mapping initiative, stating, "MPOB greatly appreciates the continued interest and support from all stakeholders and looks forward to providing further updates as they become available".
MPOB is spearheading the project to map oil palm plantation coverage in line with the National Agri-Commodity Policy (DAKN 2030).
Key objectives include capping the national oil palm planted area at 6.5 million hectares, banning new planting, tightening regulations on existing oil palm on peatlands, restricting the conversion of Permanent Forest Reserve (PRF) for agricultural activities, and making official plantation maps publicly accessible.
Ahmad Parveez pointed out that Indonesia is preparing for EUDR compliance by developing a National Dashboard for Sustainable Commodity Data.
This initiative aims to improve the traceability of key commodities, such as palm oil, to align with EUDR standards.
He emphasised the collaborative efforts between Indonesia and Malaysia through the Joint Task Force, underscoring a unified regional approach to effectively address the challenges posed by the EUDR. - Bernama/ The StarMY
--------
Golden Veroleum Liberia dismisses reports of failure to adhere to environmental protection policies.
Sinoe County, Liberia, 16 September 2024: Oil Palm Company Golden Veroleum Liberia (GVL) says it is committed to protecting the environment and communities around its operational areas by implementing its environmental protection policies.
Golden Veroleum Liberia dismisses reports of failure to adhere to environmental protection policies.
Sinoe County, Liberia, 16 September 2024: Oil Palm Company Golden Veroleum Liberia (GVL) says it is committed to protecting the environment and communities around its operational areas by implementing its environmental protection policies.
GVL says its environmental performance is independently audited every year as a condition of an Environmental Permit granted by the Government of Liberia, noting “GVL’s environmental permits for our Liberian operations, including Tarjuowon mill, have been renewed following the submission of the most recent Environment Audit Report (EAR) in May 2024.”
In a press release, Management explains that these reports include recommendations to optimize the company’s environmental operations. “GVL takes this feedback seriously and has developed an action plan to remedy outstanding issues. These actions will be submitted to the Environmental Protection Agency in the third quarter of 2024.”
No Phosphate Found in Drinking Water
It counters a report by a local daily, The Daylight, that ‘water samples tested positive for excessive phosphate levels’, which could be harmful to human health. This report clearly misunderstands the workings of a palm oil mill and misrepresents auditors’ findings.
The release continues that Phosphate testing was conducted on GVL’s palm oil mill effluent (POME) storage pools, which store and treat POME before it is used as organic fertilizer on estates.
“This effluent is not meant for human consumption, and application is carefully controlled and monitored on our estates to minimize runoff into waterways. GVL will continue treatment to reduce POME phosphate levels in line with recommendations by the EAR.”
It points out that the EAR also identified improvements to how empty fruit bunches (EFBs) should be managed, adding, “EFBs were not found to be polluting water sources, but GVL has taken immediate steps to identify alternative areas for the safe disposal of EFBs to counter any risk of water pollution.”
Committed to Action on EAR Report Recommendations
Management says while it remains positive about GVL’s overall environmental record, the Tarjuowon EAR identified a number of recommendations for improvement, including enhancing health and safety protocols for staff and addressing dust and noise from trucks passing through local communities. It reveals that GVL has developed an action plan to address these issues in line with EAR recommendations and that these changes will be implemented by the end of 2024.
“GVL continues to welcome community feedback and encourages engagement through our grievance management process. Our sustainability department handles all grievances, and grievance procedures are included in all our MOUs.”
GVL maintains that recent articles published by The DayLight and published in other outlets continue to reprint inaccuracies and misrepresent Golden Veroleum Liberia’s (GVL) environmental record. Press Release/The New Dawn Liberia
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September 15, 2024
Indonesia-Peru speed up to complete comprehensive economic agreement
Jakarta (ANTARA) - Indonesia and Peru agreed to accelerate the completion of the Indonesia-Peru Comprehensive Economic Partnership Agreement (IP-CEPA) negotiations.
"The completion of the Indonesia-Peru CEPA negotiations will be a catalyst for the expansion of trade and investment cooperation between the two countries," the Director General of America and Europe of the Indonesian Ministry of Foreign Affairs, Umar Hadi, stated in a statement from his office on Sunday.
He said that the agreement was reached at the Indonesia-Peru Bilateral Consultation Forum (FKB) in Lima, Peru, on September 10 on the sidelines of the Indonesia-Latin America and Caribbean Business Forum (INALAC Business Forum).
Hadi explained that if the IP-Cepa is implemented, the trade volume between Indonesia and Peru could increase up to threefold.
Besides discussing the IP-Cepa negotiations, the two countries also discussed other strategic issues such as inter-parliamentary cooperation, defense, development economics to palm oil, anti-narcotics, and education, he added.
According to him, Indonesia and Peru also discussed regional and global issues such as ASEAN-Peru, the ASEAN Outlook on the Indo-Pacific, and Peru's Chairmanship of the Asia-Pacific Economic Cooperation (APEC) 2024.
Moreover, Indonesia and Peru specifically aim to complete a visa-free agreement immediately for diplomatic and official passport holders, Hadi disclosed.
Based from the statement, Peru is one of Indonesia's most important trading partners in the Latin American region. In 2023, the total trade between Indonesia and Peru reached US$444 million.
Hadi said negotiations on the Indonesia-Peru Comprehensive Economic Partnership Agreement began on May 27-30, 2024, in Lima, Peru. Antara News
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Germany joins pushback to EU anti-deforestation law
Pressure mounted on the European Union on Friday to delay a ban on imports of products driving deforestation, after Germany became the latest country to request the rules be postponed.
Berlin urged the European Commission to delay implementation for six months to July 1, 2025, saying a lack of clarity on key aspects of the law meant conditions were not yet there for it to be efficiently applied.
“Companies need enough time to prepare,” said German food and agriculture minister, Cem Oezdemir.
“Otherwise supply chains risk breaking at the end of the year — to the detriment of the German and European economies, small farmers in third countries and consumers.”
EU imports are responsible for 16 percent of global deforestation, according to WWF data.
Forests absorb carbon and are a vital ally in fighting climate change. They are also critical for the survival of endangered plants and animals, such as orangutans and lowland gorillas.
The EU law, set to take effect at the end of December, will bar a vast range of goods — from coffee to cocoa, soy, timber, palm oil, cattle, printing paper and rubber — if produced using land that was deforested after December 2020.
It has been hailed by environmental groups as a major breakthrough in the fight to protect nature and the climate.
But detractors say it imposes a heavy burden it imposes on farmers and firms.
The European Parliament’s largest group, the centre-right European People’s Party, has described it as a “bureaucratic monster”.
On Thursday, German Chancellor Olaf Scholz said the regulation needed to be “practicable”.
– Environmental battle –
Berlin’s request comes against the backdrop of negotiations between the EU and South American bloc Mercosur for a free trade agreement — a plan championed by Germany.
Critics see the anti-deforestation law as a major obstacle to reaching a deal.
Outside the EU, Brazil became the latest country to call for a reassessment this week.
It said the “punitive” legislation increased production and export costs, especially for smallholders.
The United States as well as Asian, African and other Latin American countries have raised similar concerns.
Over the last century, the Amazon rainforest, which covers nearly 40 percent of South America, has lost about 20 percent of its area to deforestation, due to the advance of agriculture and cattle ranching, logging and mining, and urban sprawl.
Brazilian President Luiz Inacio Lula da Silva has pledged to stop illegal deforestation of the Amazon by 2030 but faces a string of vested interests.
“We have known from the beginning that this is a battle that affects very large economic interests,” said Pascal Canfin, of the European Parliament’s centrist Renew group.
The EU imports 15 billion euros’ ($16.6 billion) worth of agricultural raw materials responsible for deforestation — particularly soy — from Brazil each year, he said.
“This is precisely the problem we want to solve,” he added.
Other parties within the EU complain the bloc has yet to clarify how the rules will work in practice.
A diplomatic source told AFP that compliance guidelines promised by the European Commission — the EU’s executive arm — were still outstanding, as was a clear benchmarking system to divide countries into different risk categories.
Speaking to The Financial Times on Thursday, the head of the World Trade Organization, Ngozi Okonjo-Iweala, urged the EU to “relook” at the ban.
– ‘Serious danger’ –
The EU is the second-biggest market for the targeted products after China.
Firms importing the merchandise in question to the 27-nation EU will be responsible for tracking their supply chains to prove goods did not originate from deforested zones, relying on geolocation and satellite data.
Exporting countries considered high-risk would have at least nine percent of products sent to the EU subjected to checks, with the proportion falling for lower-risk ones.
Talk of a delay has worried environmental groups.
“Last year the world lost an area of forest almost as big as Switzerland,” said Nicole Polsterer of the NGO Fern.
“The debate on delaying the law carries the serious danger of abandoning it altogether, as some are determined to do”.
Other advocacy groups point out that many companies and countries are already well-advanced in the task of complying with the new rules.
A postponement would require a fresh legislative initiative from the commission, whose new team is set to be unveiled next week following European elections in June. AFP/ Macau Business
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Malaysia ramps up R&D on oil palm seedlings to boost oil palm production
KUALA LUMPUR: The Malaysian Palm Oil Board (MPOB) is intensifying its research and development (R&D) efforts to produce superior oil palm variants which could boost the nation's oil palm productivity and output without expanding the plantation area.
This effort aligns with Malaysia's commitment to biodiversity and tropical rainforest conservation, following its pledge during the 1992 Rio Earth Summit to maintain 50 per cent of its land under forest and tree cover.
In a statement today, the MPOB said Plantation and Commodities Minister, Datuk Seri Johari Abdul Ghani had visited the MPOB Research Station in Kluang, where he had the opportunity to observe the Nigerian-based germplasm research plots, a commercial pollination resource centre, and the PS 1.1 virescens variant planting plots.
During his tour of the facility yesterday, Johari also planted a Clonal Palm Series 3 (CPS 3) seedling, a high-performance oil palm variant which was introduced by the MPOB in 2020.
This elite oil palm variant boasts an 89.7 per cent mesocarp-to-fruit ratio, resulting in significantly higher oil yields compared to conventional palm breeds. NST/ Bernama
Indonesia-Peru speed up to complete comprehensive economic agreement
Jakarta (ANTARA) - Indonesia and Peru agreed to accelerate the completion of the Indonesia-Peru Comprehensive Economic Partnership Agreement (IP-CEPA) negotiations.
"The completion of the Indonesia-Peru CEPA negotiations will be a catalyst for the expansion of trade and investment cooperation between the two countries," the Director General of America and Europe of the Indonesian Ministry of Foreign Affairs, Umar Hadi, stated in a statement from his office on Sunday.
He said that the agreement was reached at the Indonesia-Peru Bilateral Consultation Forum (FKB) in Lima, Peru, on September 10 on the sidelines of the Indonesia-Latin America and Caribbean Business Forum (INALAC Business Forum).
Hadi explained that if the IP-Cepa is implemented, the trade volume between Indonesia and Peru could increase up to threefold.
Besides discussing the IP-Cepa negotiations, the two countries also discussed other strategic issues such as inter-parliamentary cooperation, defense, development economics to palm oil, anti-narcotics, and education, he added.
According to him, Indonesia and Peru also discussed regional and global issues such as ASEAN-Peru, the ASEAN Outlook on the Indo-Pacific, and Peru's Chairmanship of the Asia-Pacific Economic Cooperation (APEC) 2024.
Moreover, Indonesia and Peru specifically aim to complete a visa-free agreement immediately for diplomatic and official passport holders, Hadi disclosed.
Based from the statement, Peru is one of Indonesia's most important trading partners in the Latin American region. In 2023, the total trade between Indonesia and Peru reached US$444 million.
Hadi said negotiations on the Indonesia-Peru Comprehensive Economic Partnership Agreement began on May 27-30, 2024, in Lima, Peru. Antara News
--------
Germany joins pushback to EU anti-deforestation law
Pressure mounted on the European Union on Friday to delay a ban on imports of products driving deforestation, after Germany became the latest country to request the rules be postponed.
Berlin urged the European Commission to delay implementation for six months to July 1, 2025, saying a lack of clarity on key aspects of the law meant conditions were not yet there for it to be efficiently applied.
“Companies need enough time to prepare,” said German food and agriculture minister, Cem Oezdemir.
“Otherwise supply chains risk breaking at the end of the year — to the detriment of the German and European economies, small farmers in third countries and consumers.”
EU imports are responsible for 16 percent of global deforestation, according to WWF data.
Forests absorb carbon and are a vital ally in fighting climate change. They are also critical for the survival of endangered plants and animals, such as orangutans and lowland gorillas.
The EU law, set to take effect at the end of December, will bar a vast range of goods — from coffee to cocoa, soy, timber, palm oil, cattle, printing paper and rubber — if produced using land that was deforested after December 2020.
It has been hailed by environmental groups as a major breakthrough in the fight to protect nature and the climate.
But detractors say it imposes a heavy burden it imposes on farmers and firms.
The European Parliament’s largest group, the centre-right European People’s Party, has described it as a “bureaucratic monster”.
On Thursday, German Chancellor Olaf Scholz said the regulation needed to be “practicable”.
– Environmental battle –
Berlin’s request comes against the backdrop of negotiations between the EU and South American bloc Mercosur for a free trade agreement — a plan championed by Germany.
Critics see the anti-deforestation law as a major obstacle to reaching a deal.
Outside the EU, Brazil became the latest country to call for a reassessment this week.
It said the “punitive” legislation increased production and export costs, especially for smallholders.
The United States as well as Asian, African and other Latin American countries have raised similar concerns.
Over the last century, the Amazon rainforest, which covers nearly 40 percent of South America, has lost about 20 percent of its area to deforestation, due to the advance of agriculture and cattle ranching, logging and mining, and urban sprawl.
Brazilian President Luiz Inacio Lula da Silva has pledged to stop illegal deforestation of the Amazon by 2030 but faces a string of vested interests.
“We have known from the beginning that this is a battle that affects very large economic interests,” said Pascal Canfin, of the European Parliament’s centrist Renew group.
The EU imports 15 billion euros’ ($16.6 billion) worth of agricultural raw materials responsible for deforestation — particularly soy — from Brazil each year, he said.
“This is precisely the problem we want to solve,” he added.
Other parties within the EU complain the bloc has yet to clarify how the rules will work in practice.
A diplomatic source told AFP that compliance guidelines promised by the European Commission — the EU’s executive arm — were still outstanding, as was a clear benchmarking system to divide countries into different risk categories.
Speaking to The Financial Times on Thursday, the head of the World Trade Organization, Ngozi Okonjo-Iweala, urged the EU to “relook” at the ban.
– ‘Serious danger’ –
The EU is the second-biggest market for the targeted products after China.
Firms importing the merchandise in question to the 27-nation EU will be responsible for tracking their supply chains to prove goods did not originate from deforested zones, relying on geolocation and satellite data.
Exporting countries considered high-risk would have at least nine percent of products sent to the EU subjected to checks, with the proportion falling for lower-risk ones.
Talk of a delay has worried environmental groups.
“Last year the world lost an area of forest almost as big as Switzerland,” said Nicole Polsterer of the NGO Fern.
“The debate on delaying the law carries the serious danger of abandoning it altogether, as some are determined to do”.
Other advocacy groups point out that many companies and countries are already well-advanced in the task of complying with the new rules.
A postponement would require a fresh legislative initiative from the commission, whose new team is set to be unveiled next week following European elections in June. AFP/ Macau Business
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Malaysia ramps up R&D on oil palm seedlings to boost oil palm production
KUALA LUMPUR: The Malaysian Palm Oil Board (MPOB) is intensifying its research and development (R&D) efforts to produce superior oil palm variants which could boost the nation's oil palm productivity and output without expanding the plantation area.
This effort aligns with Malaysia's commitment to biodiversity and tropical rainforest conservation, following its pledge during the 1992 Rio Earth Summit to maintain 50 per cent of its land under forest and tree cover.
In a statement today, the MPOB said Plantation and Commodities Minister, Datuk Seri Johari Abdul Ghani had visited the MPOB Research Station in Kluang, where he had the opportunity to observe the Nigerian-based germplasm research plots, a commercial pollination resource centre, and the PS 1.1 virescens variant planting plots.
During his tour of the facility yesterday, Johari also planted a Clonal Palm Series 3 (CPS 3) seedling, a high-performance oil palm variant which was introduced by the MPOB in 2020.
This elite oil palm variant boasts an 89.7 per cent mesocarp-to-fruit ratio, resulting in significantly higher oil yields compared to conventional palm breeds. NST/ Bernama
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September 14, 2024
Germany-Federal government calls for postponement of EUDR
Özdemir: Companies need sufficient time to prepare
The Federal Minister of Food and Agriculture, Cem Özdemir , hasEUCommission on behalf of the Federal Government to urgently postpone the start of application of the Regulation on Deforestation-Free Products (EUDR) by six months to July 1, 2025. In the letter to the Executive Vice President of the European Commission and Acting Environment Commissioner Šefčovič, Özdemir urges that the conditions for adequate preparation of the economy and efficient national application be created immediately. Four months before the scheduled start, important implementation elements such as the classification of Germany as a country with a low deforestation risk are missing.
Federal Minister Cem Özdemir says : “The EU-Commission must finally come out of the summer break and provide clarity. If the economy is not worried about successful business, but about its existence, this cannot be ignored in Brussels. I take the concerns of companies, agriculture and forestry, and also the countries very seriously. Companies need sufficient time to prepare. This also applies to countries with small-scale production structures. Otherwise, supply chains threaten to break at the end of the year - to the detriment of the German and European economy, small farmers in third countries, and consumers. The start of application must be postponed, period. The aim of the EUDR There is no doubt that the necessary global forest protection needs to be strengthened. But the implementation must be practical, minimally bureaucratic and work smoothly. EUCommission can create all the conditions here on its own, without the EUDR to renegotiate.”
The EUDR provides for significant relaxation of the proof requirements for countries with a low risk of deforestation. This would also apply to the value chain of agriculture and forestry in Germany. With the entry into force of theEUDRin July 2023, the EU Commission is committed to developing technical solutions and carrying out assessments to implement these and other efficiency measures. At the same time, the EU Commission to provide support to the companies concerned in preparing for the application of the EUDR promised. Currently, the EU However, the Commission has not yet presented these final recommendations, which poses problems for many companies.
The Federal Ministry of Food and Agriculture ( BMEL ) has EU In recent months, significant progress has been made at both national and international level towards a low-bureaucracy and practical application:
For example, not all information from the entire downstream supply chain needs to be passed on. The industry describes this protection of its supply chains as an important step forward for a pragmatic application of the EU-Specifications.
In order to keep domestic companies on the EU-level, theFederal Ministry of Food, Agriculture and Consumer Protection Based on the information available to date, a guide to the legally secure, practical and efficient application of the EUDR in forestry. This will be updated as needed.
The Commission is committed to the practical and efficient application of the EUDR in German cattle farming. Federal Ministry of Food, Agriculture and Consumer Protection to the federal states for an adaptation of the origin assurance and information system for animals.
The further application of the EUDR The Federal Office for Agriculture and Food (BLE) has explained the practical aspects of German agriculture in an article . BMEL
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MPOC calls on EU to delay implementation of its deforestation regulation
KUALA LUMPUR (Sept 14): The chief executive officer of the Malaysian Palm Oil Council (MPOC), Belvinder Kaur Sron, on Saturday called on the European Union to delay the implementation of its Deforestation Regulation (EUDR), in order to address flaws of the policy.
Belvinder in a media statement said that the implementation date of Dec 30, 2024 is unworkable, as it is discriminatory against small farmers in the developing world.
“The European Commission should now do the right thing, and listen to the ever-growing calls for a delay to the EUDR.
“A delay is now the only way to ensure small farmers are supported, to provide stability for businesses, EU member states, and governments around the world, and to avoid a chaotic implementation of the EUDR in January 2025,” said Belvinder.
She added that the EUDR is a non-tariff barrier that will add significant administrative costs and burdens, and risks excluding smallholders from the EU supply chain altogether.
“The EU also has not provided clear guidelines for compliance, even though the implementation deadline is in less than four months,” she said.
She also urged the EU to take several steps to address flaws of the EUDR — providing a genuine and wide-ranging exemption for smallholders to prevent their exclusion from supply chains; publishing specific and credible criteria, so that proven sustainable commodities such as Malaysian palm oil can be identified as ‘low risk'; and accepting the Malaysian Sustainable Palm Oil (MSPO) standard as a compliance tool for the EUDR to ease market access for proven zero-deforestation palm oil.
The EUDR is a non-tariff barrier targeting commodities, including palm oil, which requires all imports to the EU to provide huge quantities of data, including on geolocation, ‘polygon’ mapping of plantations, due diligence statements and other administrative requirements, from Dec 30, 2024.
According to the MPOC, these requirements could force small farmers of palm oil in Malaysia out of supply chains because they do not have the technical capacity to provide all of the data demanded by the EUDR.
“Glenauk Economics estimates the cost of the EUDR for the palm oil sector to be US$650 million (RM2.8 billion) annually, with US$260 million in costs burdening small farmers specifically,” the MPOC pointed out.
The council added that Malaysia’s MSPO standard already guarantees legality and zero-deforestation commitments, while also supporting small farmers.
Malaysia has consistently urged the EU and other stakeholders to recognise that the EUDR discriminates against the developing world, that the implementation date is unworkable, and that a delay is needed.
Other governments, industries and experts have supported this position, both inside the EU and in other countries around the world, said the MPOC. The Edge Malaysia
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India sharply raises import tax on edible oils to support farmers
MUMBAI, Sept 13 (Reuters) - India has raised the basic import tax on crude and refined edible oils by 20 percentage points, the government said on Friday, as the world's biggest edible oil importer tries to help protect farmers reeling from lower oilseed prices
The move could lift edible oil prices and dampen demand and subsequently reduce overseas purchases of palm oil , soyoil and sunflower oil.
After the duty hike announcement, Chicago Board of Trade soyoil extended losses and fell more than 2%.
New Delhi on Friday imposed a 20% basic customs duty on crude palm oil, crude soyoil and crude sunflower oil from Sept. 14, the notification said.
It will effectively increase the total import duty on the three oils to 27.5% from 5.5% as they are also subject to India's Agriculture Infrastructure and Development Cess and Social Welfare Surcharge.
Imports of refined palm oil, refined soyoil and refined sunflower oil will attract 35.75% import duty against the earlier duty of 13.75%.
Reuters reported in late August that India was considering an increase in import taxes on vegetable oils to help soybean growers ahead of regional elections due in Maharashtra later this year.
"After a long time, the government has been attempting to balance the interests of both consumers and farmers," said Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil brokerage.
The move has increased the likelihood of farmers receiving the minimum support price set by the government for their soybean and rapeseed harvests, he said. Reuters
Germany-Federal government calls for postponement of EUDR
Özdemir: Companies need sufficient time to prepare
The Federal Minister of Food and Agriculture, Cem Özdemir , hasEUCommission on behalf of the Federal Government to urgently postpone the start of application of the Regulation on Deforestation-Free Products (EUDR) by six months to July 1, 2025. In the letter to the Executive Vice President of the European Commission and Acting Environment Commissioner Šefčovič, Özdemir urges that the conditions for adequate preparation of the economy and efficient national application be created immediately. Four months before the scheduled start, important implementation elements such as the classification of Germany as a country with a low deforestation risk are missing.
Federal Minister Cem Özdemir says : “The EU-Commission must finally come out of the summer break and provide clarity. If the economy is not worried about successful business, but about its existence, this cannot be ignored in Brussels. I take the concerns of companies, agriculture and forestry, and also the countries very seriously. Companies need sufficient time to prepare. This also applies to countries with small-scale production structures. Otherwise, supply chains threaten to break at the end of the year - to the detriment of the German and European economy, small farmers in third countries, and consumers. The start of application must be postponed, period. The aim of the EUDR There is no doubt that the necessary global forest protection needs to be strengthened. But the implementation must be practical, minimally bureaucratic and work smoothly. EUCommission can create all the conditions here on its own, without the EUDR to renegotiate.”
The EUDR provides for significant relaxation of the proof requirements for countries with a low risk of deforestation. This would also apply to the value chain of agriculture and forestry in Germany. With the entry into force of theEUDRin July 2023, the EU Commission is committed to developing technical solutions and carrying out assessments to implement these and other efficiency measures. At the same time, the EU Commission to provide support to the companies concerned in preparing for the application of the EUDR promised. Currently, the EU However, the Commission has not yet presented these final recommendations, which poses problems for many companies.
The Federal Ministry of Food and Agriculture ( BMEL ) has EU In recent months, significant progress has been made at both national and international level towards a low-bureaucracy and practical application:
For example, not all information from the entire downstream supply chain needs to be passed on. The industry describes this protection of its supply chains as an important step forward for a pragmatic application of the EU-Specifications.
In order to keep domestic companies on the EU-level, theFederal Ministry of Food, Agriculture and Consumer Protection Based on the information available to date, a guide to the legally secure, practical and efficient application of the EUDR in forestry. This will be updated as needed.
The Commission is committed to the practical and efficient application of the EUDR in German cattle farming. Federal Ministry of Food, Agriculture and Consumer Protection to the federal states for an adaptation of the origin assurance and information system for animals.
The further application of the EUDR The Federal Office for Agriculture and Food (BLE) has explained the practical aspects of German agriculture in an article . BMEL
--------
MPOC calls on EU to delay implementation of its deforestation regulation
KUALA LUMPUR (Sept 14): The chief executive officer of the Malaysian Palm Oil Council (MPOC), Belvinder Kaur Sron, on Saturday called on the European Union to delay the implementation of its Deforestation Regulation (EUDR), in order to address flaws of the policy.
Belvinder in a media statement said that the implementation date of Dec 30, 2024 is unworkable, as it is discriminatory against small farmers in the developing world.
“The European Commission should now do the right thing, and listen to the ever-growing calls for a delay to the EUDR.
“A delay is now the only way to ensure small farmers are supported, to provide stability for businesses, EU member states, and governments around the world, and to avoid a chaotic implementation of the EUDR in January 2025,” said Belvinder.
She added that the EUDR is a non-tariff barrier that will add significant administrative costs and burdens, and risks excluding smallholders from the EU supply chain altogether.
“The EU also has not provided clear guidelines for compliance, even though the implementation deadline is in less than four months,” she said.
She also urged the EU to take several steps to address flaws of the EUDR — providing a genuine and wide-ranging exemption for smallholders to prevent their exclusion from supply chains; publishing specific and credible criteria, so that proven sustainable commodities such as Malaysian palm oil can be identified as ‘low risk'; and accepting the Malaysian Sustainable Palm Oil (MSPO) standard as a compliance tool for the EUDR to ease market access for proven zero-deforestation palm oil.
The EUDR is a non-tariff barrier targeting commodities, including palm oil, which requires all imports to the EU to provide huge quantities of data, including on geolocation, ‘polygon’ mapping of plantations, due diligence statements and other administrative requirements, from Dec 30, 2024.
According to the MPOC, these requirements could force small farmers of palm oil in Malaysia out of supply chains because they do not have the technical capacity to provide all of the data demanded by the EUDR.
“Glenauk Economics estimates the cost of the EUDR for the palm oil sector to be US$650 million (RM2.8 billion) annually, with US$260 million in costs burdening small farmers specifically,” the MPOC pointed out.
The council added that Malaysia’s MSPO standard already guarantees legality and zero-deforestation commitments, while also supporting small farmers.
Malaysia has consistently urged the EU and other stakeholders to recognise that the EUDR discriminates against the developing world, that the implementation date is unworkable, and that a delay is needed.
Other governments, industries and experts have supported this position, both inside the EU and in other countries around the world, said the MPOC. The Edge Malaysia
--------
India sharply raises import tax on edible oils to support farmers
MUMBAI, Sept 13 (Reuters) - India has raised the basic import tax on crude and refined edible oils by 20 percentage points, the government said on Friday, as the world's biggest edible oil importer tries to help protect farmers reeling from lower oilseed prices
The move could lift edible oil prices and dampen demand and subsequently reduce overseas purchases of palm oil , soyoil and sunflower oil.
After the duty hike announcement, Chicago Board of Trade soyoil extended losses and fell more than 2%.
New Delhi on Friday imposed a 20% basic customs duty on crude palm oil, crude soyoil and crude sunflower oil from Sept. 14, the notification said.
It will effectively increase the total import duty on the three oils to 27.5% from 5.5% as they are also subject to India's Agriculture Infrastructure and Development Cess and Social Welfare Surcharge.
Imports of refined palm oil, refined soyoil and refined sunflower oil will attract 35.75% import duty against the earlier duty of 13.75%.
Reuters reported in late August that India was considering an increase in import taxes on vegetable oils to help soybean growers ahead of regional elections due in Maharashtra later this year.
"After a long time, the government has been attempting to balance the interests of both consumers and farmers," said Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil brokerage.
The move has increased the likelihood of farmers receiving the minimum support price set by the government for their soybean and rapeseed harvests, he said. Reuters
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September 13, 2024
WTO chief urges EU to rethink deforested goods ban
Call from Ngozi Okonjo-Iweala adds to pressure from exporters including Brazil to ‘reassess’ rules
The head of the World Trade Organization has asked Brussels to “relook” at a ban on imports from deforested areas that has angered dozens of countries, increasing pressure on the European Commission over the landmark legislation.
Exports of wood, soya and coffee are among the products affected by the new rules, which are due to start on December 30.
Ngozi Okonjo-Iweala said the EU had not yet issued clear compliance guidelines, leading to uncertainty for exporters who did not know if their goods would be stopped at its borders.
“I want to give the EU credit for listening, coming in and engaging and listening to other members. And I hope that they use the feedback that they’ve got here to relook at the system,” she told the Financial Times in an interview, adding that many G20 leaders had raised the issue with her.
She gave the example of farmers in Nigeria, her home country. They leave land fallow to regenerate for up to 10 years. They then clear any trees to plant crops.
“Is that deforestation? How do we take this into account? Those are the tricky problems that the purchasers have to deal with because they have to certify that the farmers they’re buying from have not deforested.”
EU officials have indicated that the commission is considering a delay to the overall implementation or a simplification of the rules. But this would require reopening the legislation, which some officials fear could create a bigger political fight.
Okonjo-Iweala’s intervention came as Brazil asked Brussels for a delay to the “unilateral and punitive” rules, which would cover about a third of its exports to the EU.
In an effort to prevent European consumers from contributing to global deforestation, commodities and products from the sectors covered that originate from deforested land will be banned from the bloc. The rules also cover other commodities such as palm oil, cocoa and rubber.
In a letter sent on Thursday Mauro Vieira and Carlos Fávaro, Brazil’s foreign affairs and agriculture ministers respectively, requested that the EU delay implementation of the law, due to come into force on December 30, and “urgently reassess its approach”.
“We consider the EU Deforestation Regulation to be a unilateral and punitive instrument that disregards national laws on combating deforestation,” the ministers wrote.
The commission declined to comment on the Brazilian letter but said it would reply “in due course”.
Brazil and Colombia have asked for a debate on the measure at the WTO. They intend to put pressure on the EU, one official said. But neither country has yet initiated a formal complaint. Financial Times
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Germany’s Scholz wants new EU anti-deforestation law delayed
German media group has been lobbying against the rules.
German Chancellor Olaf Scholz wants to postpone new EU rules aimed at preventing products driving deforestation from being sold on the EU market — and is lobbying Ursula von der Leyen about it.
Scholz told a conference on Thursday in Berlin that he had discussed the EU Deforestation Regulation with European Commission President von der Leyen and “advocated … that the regulation be suspended until the open questions raised by the BDZV [German digital and newspapers publishers association] have been clarified.”
In March, the publishers’ lobby wrote to the German government and the Commission criticizing “impractical requirements” and a “drastic bureaucratic burden on companies.” It asked the Commission to “mitigate the risks, sanctions and burdens” created by the new law, which is set to apply from Dec. 30.
“To be clear: the regulation must be practicable,” Scholz said on Thursday.
Scholz is the first head of government to call for delaying the new rules. This comes after a group of agriculture ministers, as well as center-right politicians like German MEP Peter Liese of the European People’s Party — the political family of von der Leyen — made similar calls in recent weeks.
The new legislation has been under fire in recent months with both EU trade partners and European industries complaining about the complexity of the new rules, which will require companies to show proof that their wood, coffee, cocoa, soy, palm oil, rubber and cattle have not been produced on deforested land.
Countries like Brazil, Indonesia and Malaysia, argue that the regulation will establish trade barriers, hurt their small farmers and risk disrupting global trade and increasing prices.
The head of the World Trade Organization, Ngozi Okonjo-Iweala, has also asked the EU to “relook” at the regulation and at its impacts on global trade, the Financial Times reported.
European businesses from various sectors, including agriculture and forestry, have also asked for the rules to be delayed as they say they need more time to get their traceability and due diligence systems ready and are still waiting on the Commission to produce a number of technical documents to guide them in the implementation. Politico
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Brazil Urges EU to Postpone and Reassess ‘Unilateral’ Anti-Deforestation Law Over Fears It Will Affect Trade Relations
Brazil sends more than 30% of its exports to the European Union. Its government calculated that the new anti-deforestation rules, set to come into effect at the end of 2024, could affect some $15 billion in exports.
Brazil has urged the European Union to hold off on implementing the highly-contested anti-deforestation law at the end of the year, warning it would have severe repercussions on their trade relations.
In a letter to the European Commission seen by Reuters, the Brazilian government said the law was an “unilateral and punitive instrument” that discriminates against countries whose economies rely on forest resources such as Brazil.
“Brazil is one of the main suppliers to the EU of most of the products covered by the legislation, which correspond to more than 30% of our exports to the community bloc,” the letter, signed by the Minister of Agriculture Carlos Fávaro and Minister of Foreign Affairs Mauro Vieira, said. “In order to avoid impact on our trade relations, we request that the EU not implement the EUDR (EU Deforestation-free Regulation) at the end of 2024 and urgently reassess its approach to the issue.”
Government calculations suggest the legislation could affect some $15 billion-worth of exports. According to Ministry of Development, Industry and Foreign Trade figures, as reported by Reuters, Brazil’s exports of products covered by the EUDR in 2023 amounted to $46.2 billion.
In April, European Environment Commissioner Virginijus Sinkevicius said the law will come into force at the end of 2024 as initially planned in response to calls by an Austria-led coalition of 20 of the 27 EU member states to review the law. They argued that the new rules would hurt European farmers, who are also subject to the new rules.
In an exclusive interview with Earth.Org in April, European Greens leader Bas Eickhout called the U-turn on the policy of some European countries “ridiculous,” and a “failure of the Commission.”
“This is what you get when you don’t have a long-term vision. The credibility of Europe is at stake. What we have been trying to do with this deforestation law is to make clear that these European industries should not only do green policies within Europe but they also have a global responsibility… they need to be credible in the rest of the world,” said Eickhout.
Strict Requirements
First proposed by the European Commission in 2021, the anti-deforestation law – the first of its kind in the world – was formally adopted last year. It cracks down on commodities linked to deforestation and forest degradation for agricultural expansion, targeting cattle, cocoa, coffee, palm oil, soya, and wood sold within the bloc. The six commodities accounted for over 50% of total deforestation between 2001-2015, with cattle accounting for the largest share. More Earth
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New French PM dashes hopes of a EU-Mercosur deal by Brazil G20 summit
French Prime Minister Michel Barnier reiterated France’s opposition to the EU-Mercosur free trade deal and confirmed his desire to seek a ‘blocking minority’, according to information obtained by Euractiv, dashing hopes of finalising the deal at the upcoming G20 summit in Brazil.
While some media reports pinned hopes on a conclusion of the agreement by the G20 summit in Brazil on 18 November, France and its new Prime Minister, Michel Barnier, continue to oppose it, at least in its current form.
The Mercosur Free Trade Agreement talks began between the EU and Mercosur countries of Argentina, Brazil, Paraguay and Uruguay in 1999 and was agreed on in principle in 2019, although never ratified. Involving a population of over 780 million people, the deal would eliminate some 93% of EU tariffs, making it the EU’s largest trade deal to date regarding tariff reduction.
Barnier and Macron “are in favour of finding a blocking minority to prevent the treaty from being signed”, liberal MoDem MP Pascal Lecamp (Renew), who questioned Barnier directly on the issue on Wednesday (11 September), told Euractiv.
Finding a way to block the signature is “a priority” for Barnier, who is “very attached to the mirror clauses”, Lecamp said about France’s long-standing red line to ensure South American countries are bound to similar trade-burdening rules, such as those related to agriculture or the environment.
The agreement is “double-locked”, right-wing Les républicains MP Antoine Vermorel-Marques (EPP), a close associate of Barnier, told Euractiv.
With a blocking minority, the negotiating mandate given to the European Commission on behalf of member states could be revoked, economist and co-leader of the French Stop CETA-Mercosurs collective Maxime Combes told Euractiv.
Barnier’s suggestion of a blocking minority “is an evolution of France’s position, as [Emmanuel] Macron has never expressed it in this way”, Combes added.
20 years of blockades
France previously blocked the deal in protest of then-Brazilian president Jair Bolsonaro’s deforestation policy, and France did not budget in its request for mirror clauses following the election of socialist President Lula at the end of 2022.
Things have progressed, however, as the Brazilian government reported “significant progress” in meetings with its European counterparts last week and is considering concluding negotiations “before the end of the year”, Reuters reported.
On the EU side, 11 countries, including Germany and Spain, have sent a letter to the European Commission asking it to speed up discussions, the Financial Times revealed on 6 September.
Opponents to the deal, led by French farmers, have since been up in arms, calling on the French executive to take action. Euractiv
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WTO chief urges EU to rethink deforested goods ban
Call from Ngozi Okonjo-Iweala adds to pressure from exporters including Brazil to ‘reassess’ rules
The head of the World Trade Organization has asked Brussels to “relook” at a ban on imports from deforested areas that has angered dozens of countries, increasing pressure on the European Commission over the landmark legislation.
Exports of wood, soya and coffee are among the products affected by the new rules, which are due to start on December 30.
Ngozi Okonjo-Iweala said the EU had not yet issued clear compliance guidelines, leading to uncertainty for exporters who did not know if their goods would be stopped at its borders.
“I want to give the EU credit for listening, coming in and engaging and listening to other members. And I hope that they use the feedback that they’ve got here to relook at the system,” she told the Financial Times in an interview, adding that many G20 leaders had raised the issue with her.
She gave the example of farmers in Nigeria, her home country. They leave land fallow to regenerate for up to 10 years. They then clear any trees to plant crops.
“Is that deforestation? How do we take this into account? Those are the tricky problems that the purchasers have to deal with because they have to certify that the farmers they’re buying from have not deforested.”
EU officials have indicated that the commission is considering a delay to the overall implementation or a simplification of the rules. But this would require reopening the legislation, which some officials fear could create a bigger political fight.
Okonjo-Iweala’s intervention came as Brazil asked Brussels for a delay to the “unilateral and punitive” rules, which would cover about a third of its exports to the EU.
In an effort to prevent European consumers from contributing to global deforestation, commodities and products from the sectors covered that originate from deforested land will be banned from the bloc. The rules also cover other commodities such as palm oil, cocoa and rubber.
In a letter sent on Thursday Mauro Vieira and Carlos Fávaro, Brazil’s foreign affairs and agriculture ministers respectively, requested that the EU delay implementation of the law, due to come into force on December 30, and “urgently reassess its approach”.
“We consider the EU Deforestation Regulation to be a unilateral and punitive instrument that disregards national laws on combating deforestation,” the ministers wrote.
The commission declined to comment on the Brazilian letter but said it would reply “in due course”.
Brazil and Colombia have asked for a debate on the measure at the WTO. They intend to put pressure on the EU, one official said. But neither country has yet initiated a formal complaint. Financial Times
--------
Germany’s Scholz wants new EU anti-deforestation law delayed
German media group has been lobbying against the rules.
German Chancellor Olaf Scholz wants to postpone new EU rules aimed at preventing products driving deforestation from being sold on the EU market — and is lobbying Ursula von der Leyen about it.
Scholz told a conference on Thursday in Berlin that he had discussed the EU Deforestation Regulation with European Commission President von der Leyen and “advocated … that the regulation be suspended until the open questions raised by the BDZV [German digital and newspapers publishers association] have been clarified.”
In March, the publishers’ lobby wrote to the German government and the Commission criticizing “impractical requirements” and a “drastic bureaucratic burden on companies.” It asked the Commission to “mitigate the risks, sanctions and burdens” created by the new law, which is set to apply from Dec. 30.
“To be clear: the regulation must be practicable,” Scholz said on Thursday.
Scholz is the first head of government to call for delaying the new rules. This comes after a group of agriculture ministers, as well as center-right politicians like German MEP Peter Liese of the European People’s Party — the political family of von der Leyen — made similar calls in recent weeks.
The new legislation has been under fire in recent months with both EU trade partners and European industries complaining about the complexity of the new rules, which will require companies to show proof that their wood, coffee, cocoa, soy, palm oil, rubber and cattle have not been produced on deforested land.
Countries like Brazil, Indonesia and Malaysia, argue that the regulation will establish trade barriers, hurt their small farmers and risk disrupting global trade and increasing prices.
The head of the World Trade Organization, Ngozi Okonjo-Iweala, has also asked the EU to “relook” at the regulation and at its impacts on global trade, the Financial Times reported.
European businesses from various sectors, including agriculture and forestry, have also asked for the rules to be delayed as they say they need more time to get their traceability and due diligence systems ready and are still waiting on the Commission to produce a number of technical documents to guide them in the implementation. Politico
--------
Brazil Urges EU to Postpone and Reassess ‘Unilateral’ Anti-Deforestation Law Over Fears It Will Affect Trade Relations
Brazil sends more than 30% of its exports to the European Union. Its government calculated that the new anti-deforestation rules, set to come into effect at the end of 2024, could affect some $15 billion in exports.
Brazil has urged the European Union to hold off on implementing the highly-contested anti-deforestation law at the end of the year, warning it would have severe repercussions on their trade relations.
In a letter to the European Commission seen by Reuters, the Brazilian government said the law was an “unilateral and punitive instrument” that discriminates against countries whose economies rely on forest resources such as Brazil.
“Brazil is one of the main suppliers to the EU of most of the products covered by the legislation, which correspond to more than 30% of our exports to the community bloc,” the letter, signed by the Minister of Agriculture Carlos Fávaro and Minister of Foreign Affairs Mauro Vieira, said. “In order to avoid impact on our trade relations, we request that the EU not implement the EUDR (EU Deforestation-free Regulation) at the end of 2024 and urgently reassess its approach to the issue.”
Government calculations suggest the legislation could affect some $15 billion-worth of exports. According to Ministry of Development, Industry and Foreign Trade figures, as reported by Reuters, Brazil’s exports of products covered by the EUDR in 2023 amounted to $46.2 billion.
In April, European Environment Commissioner Virginijus Sinkevicius said the law will come into force at the end of 2024 as initially planned in response to calls by an Austria-led coalition of 20 of the 27 EU member states to review the law. They argued that the new rules would hurt European farmers, who are also subject to the new rules.
In an exclusive interview with Earth.Org in April, European Greens leader Bas Eickhout called the U-turn on the policy of some European countries “ridiculous,” and a “failure of the Commission.”
“This is what you get when you don’t have a long-term vision. The credibility of Europe is at stake. What we have been trying to do with this deforestation law is to make clear that these European industries should not only do green policies within Europe but they also have a global responsibility… they need to be credible in the rest of the world,” said Eickhout.
Strict Requirements
First proposed by the European Commission in 2021, the anti-deforestation law – the first of its kind in the world – was formally adopted last year. It cracks down on commodities linked to deforestation and forest degradation for agricultural expansion, targeting cattle, cocoa, coffee, palm oil, soya, and wood sold within the bloc. The six commodities accounted for over 50% of total deforestation between 2001-2015, with cattle accounting for the largest share. More Earth
--------
New French PM dashes hopes of a EU-Mercosur deal by Brazil G20 summit
French Prime Minister Michel Barnier reiterated France’s opposition to the EU-Mercosur free trade deal and confirmed his desire to seek a ‘blocking minority’, according to information obtained by Euractiv, dashing hopes of finalising the deal at the upcoming G20 summit in Brazil.
While some media reports pinned hopes on a conclusion of the agreement by the G20 summit in Brazil on 18 November, France and its new Prime Minister, Michel Barnier, continue to oppose it, at least in its current form.
The Mercosur Free Trade Agreement talks began between the EU and Mercosur countries of Argentina, Brazil, Paraguay and Uruguay in 1999 and was agreed on in principle in 2019, although never ratified. Involving a population of over 780 million people, the deal would eliminate some 93% of EU tariffs, making it the EU’s largest trade deal to date regarding tariff reduction.
Barnier and Macron “are in favour of finding a blocking minority to prevent the treaty from being signed”, liberal MoDem MP Pascal Lecamp (Renew), who questioned Barnier directly on the issue on Wednesday (11 September), told Euractiv.
Finding a way to block the signature is “a priority” for Barnier, who is “very attached to the mirror clauses”, Lecamp said about France’s long-standing red line to ensure South American countries are bound to similar trade-burdening rules, such as those related to agriculture or the environment.
The agreement is “double-locked”, right-wing Les républicains MP Antoine Vermorel-Marques (EPP), a close associate of Barnier, told Euractiv.
With a blocking minority, the negotiating mandate given to the European Commission on behalf of member states could be revoked, economist and co-leader of the French Stop CETA-Mercosurs collective Maxime Combes told Euractiv.
Barnier’s suggestion of a blocking minority “is an evolution of France’s position, as [Emmanuel] Macron has never expressed it in this way”, Combes added.
20 years of blockades
France previously blocked the deal in protest of then-Brazilian president Jair Bolsonaro’s deforestation policy, and France did not budget in its request for mirror clauses following the election of socialist President Lula at the end of 2022.
Things have progressed, however, as the Brazilian government reported “significant progress” in meetings with its European counterparts last week and is considering concluding negotiations “before the end of the year”, Reuters reported.
On the EU side, 11 countries, including Germany and Spain, have sent a letter to the European Commission asking it to speed up discussions, the Financial Times revealed on 6 September.
Opponents to the deal, led by French farmers, have since been up in arms, calling on the French executive to take action. Euractiv
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September 12, 2024
Brazil asks EU to hold off on implementing deforestation law
BRASILIA, Sept 11 (Reuters) - Brazil on Wednesday asked the European Union not to implement regulations in its deforestation law at the end of the year as scheduled and asked for it to be revised to avoid hurting Brazilian exports.
In a letter to the European Commission seen by Reuters, the Brazilian government said the law banning the import of products linked to the destruction of the world's forests could affect almost one third of Brazil's exports to the EU.
The law passed in 2022 by the European Parliament was adopted in June last year, allowing 18 months for companies to adapt. The law applies to soy, beef, palm oil, coffee, cocoa, rubber, wood and derivatives, including leather and furniture.
"Brazil is one of the main suppliers to the EU of most of the products covered by the legislation, which correspond to more than 30% of our exports to the community bloc," the letter signed by the ministers of agriculture and foreign Affairs said.
"In order to avoid impact on our trade relations, we request that the EU not implement the EUDR (EU Deforestation-free Regulation) at the end of 2024 and urgently reassess its approach to the issue," the ministers wrote.
Brazil's exports of these products in 2023 reached $46.3 billion dollars, according to Ministry of Development, Industry and Foreign Trade data. The EUDR could affect some $15 billion in exports, the government calculates. Reuters
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New FAQs on deforestation-linked goods regulation to be published next week, says EU counsellor
ROTTERDAM (Sept 11): The European Union (EU) Commission is still preparing the guidelines on its deforestation-free products regulation (EUDR), which is scheduled to come into effect on December 30 this year.
Henriette Faergemann, first counsellor for environment, climate action, and digital cooperation at the EU Delegation to Indonesia, said an updated Frequently Asked Questions (FAQs) document will be released next week to help operators and traders comply with the regulation.
The new version will feature 30 additional questions, incorporating feedback from discussions with palm oil-producing countries like Indonesia and Malaysia, as well as consumer nations.
“When the EU decided to implement the EUDR, numerous questions arose, so we want to compile these into the FAQs. The last update (of the FAQs) included over 80 questions and answers. It’s worth paying close attention to and is easily accessible online,” she said during her virtual presentation at the third Sustainable Vegetable Oils Conference (SVOC), hosted by the Council of Palm Oil Producing Countries and the Netherlands Oils and Fats Industry.
Further, a guidance document on the implementation, set to be released soon, will clarify key aspects of the regulation which include definitions of agricultural use, legality requirements, composite products, certification and due diligence, she said.
According to Faergemann, the EU is focused on establishing an information system to facilitate compliance, which will store due diligence statements submitted by operators and traders. User registration for the system will open in November, with submissions for due diligence statements starting in December, aligning with the regulation's requirements.
Addressing the benchmarking system — a tool designed to help EU member states' authorities target limited enforcement resources and focus EU support on mitigating risks — Faergemann said the development of the benchmarking methodology is still underway.
“There will be dialogues with countries at risk of being classified as high-risk,” she said. “This process is still underway, and until it's complete, all countries will be treated as standard risk.”
On the other hand, the EU Forest Observatory, a global mapping tool designed to aid operators in assessing deforestation risks under the new regulation, is currently undergoing revisions. “While this map is not mandatory, it serves as a valuable support system for operators to evaluate risks more effectively,” she added.
To recap, the EU had in December 2022 agreed to ban the imports of various products such as palm oil, beef, soy, coffee, cocoa and timber, which shall be identified as "drivers of deforestation" if they come from land deforested after Dec 31, 2020.
The EU is Malaysia’s third largest export market for palm oil after India and China.
Industry experts expect delay in implementation
Indonesia and Malaysia, two of the world's largest palm oil producers, will hold a third round of discussions with the EU on Thursday in Brussels, as part of the Ad Hoc Joint Task Force focused on the EUDR implementation.
Industry experts expect a delay in the regulation’s implementation due to recent changes in the European Parliament and concerns from companies and businesses that are not yet prepared.
Deputy secretary general of the Council of Palm Oil Producing Countries Datuk Seri Nageeb Wahab opined that the regulation could potentially be reviewed or amended, given the changes in the European Parliament following the recent elections.
“While nothing is certain, we’ve noted that 15 of the 27 EU member states have expressed concerns about the EUDR’s implementation timeline, stating they are not fully prepared. We are hopeful that there will be a review or possibly a delay in the enforcement,” he said.
While the second version of the Malaysian Sustainable Palm Oil (MSPO 2.0) certification is ready to meet the EUDR’s requirements, the challenge lies in traceability particularly in polygon mapping, said director general of the Malaysian Palm Oil Board Datuk Dr Ahmad Parveez Ghulam Kadir.
Polygon mapping, at its core, is a geospatial technology harnessed for the creation of precise and detailed maps of specific geographic areas. These areas are delineated using GPS coordinates, giving birth to a digital representation of land boundaries known as polygons.
“If you recall, in 2019, the government introduced a policy limiting the planted area to 6.5 million hectares, and requiring a map of oil palm plantations. We are currently working on that,” Ahmad Parveez added. The Edge MY
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MPOB developing tech solutions to help smallholders meet EUDR requirements
ROTTERDAM (Sept 11): The Malaysian Palm Oil Board (MPOB) is actively developing technology solutions to help smallholders meet the additional requirements of the European Union Deforestation Regulation (EUDR).
MPOB director general Datuk Ahmad Parveez Ghulam Kadir said the EUDR, which came into effect in June 2023, introduced new requirements for geolocation and traceability.
“Regarding deforestation, smallholders need to meet deforestation-related standards. However, one of the biggest challenges lies in geolocation, mapping, and polygonal data, as well as traceability,” he told Malaysian reporters at the third Sustainable Vegetable Oils Conference (SVOC), organised by the Council of Palm Oil Producing Countries (CPOPC).
Ahmad Parveez added that MPOB is conducting canopy mapping to document oil palm cultivation areas accurately.
“We are preparing for the changes by using satellite imagery to identify all oil palm plantations. We can differentiate oil palm from other crops, such as coconut, based on the planting techniques. By analysing spacing, we can also estimate the age of the trees,” he said.
EUDR: Challenges for smallholders
Despite being a crucial step in preventing deforestation, the stringent requirements of the EUDR pose a challenge for smallholders, potentially threatening their income and position in the supply chain due to their limited resources for compliance. The Edge MY
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From Dead Palms to Sustainable Energy Solutions: How Asia Is Maximizing Biomass Fuel
by Rose Morrison
In eastern Asia, dead palms lay forgotten in fields, waiting to become a beacon of sustainable energy. Fortunately, researchers are taking advantage of these found materials, discovering ways they could revolutionize biomass power generation. The promising findings are cursory steps in reducing the need for virgin materials and eliminating the negative side effects of biofuel production.
Malaysia and Japan’s Palm Experiments
Researchers in Malaysia and Japan are trying to renew biomass energy with felled palm trees. The concept has been in development since 2018, and operations are currently unfolding in southern Malaysia, in the town of Kluang. Although trees, particularly palms, appear to be a promising source of biomass feedstock, they are burdened with impurities that render them less suitable for processing.
The partnering universities put dead palm trunks into a machine, grinding them down into fiber piles within seconds. Their machine would remove impurities in the process, shaping the powder into pellets for boilers.
From a reduction perspective, Asian palms have a distinct advantage over other biomass feedstocks. Their water content is between 70-80%, making them soft and easier to mulch. Additionally, they contain tons of sap, which opens the door for more sustainable applications, such as green aviation fuels. Any unused materials can be repurposed as fertilizer, assisting local agriculture.
The studies clarify that biofuel is not the only application for dead palms. Furniture makers could lower deforestation rates by crafting pieces from these sturdy trunks. A wood board company sent its palm-originated boards to 15 furniture makers to test on a variety of pieces. Japan has successfully manufactured and sold palm-based items since 2022, demonstrating their commercial potential.
Better Biomass
Biofuels and biomass production may become more prevalent renewable energy generators on the planet. However, several problems keep them from reaching their full potential. The palm tree research provides a glimpse into what needs repairing within the biomass sector to make it more sustainable and circular.
Should trees remain in groves to support healthy soils and encourage new growth? While this is the logic for many plant varieties, decomposing palms may invite more harm than good. In their wake, termites and other unwelcome fungi flourish. Additionally, each tree releases 1.3 tons of greenhouse gasses as it dies, making it more impactful to repurpose them before they do.
One issue these experts solve is palm oil’s negative environmental impact. It is among the most hot-button topics in sustainability as the world’s most used vegetable-based oil. Malaysia and Indonesia are top users of the product, making the research’s impact more meaningful. Naturally, this outfit requires swaths of palm groves, which have overtaken countless acres of land and destroyed other forests to make room for this profitable venture.
The land needed to meet global palm oil demand increased tenfold between 1970 and 2020, totaling 30 million hectares. This is more than any other vegetable oil crop, including soybeans, sunflowers and coconuts. Extracting necessary resources from these dead palms is a sustainable option for the palm oil and biomass market. Earth
Brazil asks EU to hold off on implementing deforestation law
BRASILIA, Sept 11 (Reuters) - Brazil on Wednesday asked the European Union not to implement regulations in its deforestation law at the end of the year as scheduled and asked for it to be revised to avoid hurting Brazilian exports.
In a letter to the European Commission seen by Reuters, the Brazilian government said the law banning the import of products linked to the destruction of the world's forests could affect almost one third of Brazil's exports to the EU.
The law passed in 2022 by the European Parliament was adopted in June last year, allowing 18 months for companies to adapt. The law applies to soy, beef, palm oil, coffee, cocoa, rubber, wood and derivatives, including leather and furniture.
"Brazil is one of the main suppliers to the EU of most of the products covered by the legislation, which correspond to more than 30% of our exports to the community bloc," the letter signed by the ministers of agriculture and foreign Affairs said.
"In order to avoid impact on our trade relations, we request that the EU not implement the EUDR (EU Deforestation-free Regulation) at the end of 2024 and urgently reassess its approach to the issue," the ministers wrote.
Brazil's exports of these products in 2023 reached $46.3 billion dollars, according to Ministry of Development, Industry and Foreign Trade data. The EUDR could affect some $15 billion in exports, the government calculates. Reuters
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New FAQs on deforestation-linked goods regulation to be published next week, says EU counsellor
ROTTERDAM (Sept 11): The European Union (EU) Commission is still preparing the guidelines on its deforestation-free products regulation (EUDR), which is scheduled to come into effect on December 30 this year.
Henriette Faergemann, first counsellor for environment, climate action, and digital cooperation at the EU Delegation to Indonesia, said an updated Frequently Asked Questions (FAQs) document will be released next week to help operators and traders comply with the regulation.
The new version will feature 30 additional questions, incorporating feedback from discussions with palm oil-producing countries like Indonesia and Malaysia, as well as consumer nations.
“When the EU decided to implement the EUDR, numerous questions arose, so we want to compile these into the FAQs. The last update (of the FAQs) included over 80 questions and answers. It’s worth paying close attention to and is easily accessible online,” she said during her virtual presentation at the third Sustainable Vegetable Oils Conference (SVOC), hosted by the Council of Palm Oil Producing Countries and the Netherlands Oils and Fats Industry.
Further, a guidance document on the implementation, set to be released soon, will clarify key aspects of the regulation which include definitions of agricultural use, legality requirements, composite products, certification and due diligence, she said.
According to Faergemann, the EU is focused on establishing an information system to facilitate compliance, which will store due diligence statements submitted by operators and traders. User registration for the system will open in November, with submissions for due diligence statements starting in December, aligning with the regulation's requirements.
Addressing the benchmarking system — a tool designed to help EU member states' authorities target limited enforcement resources and focus EU support on mitigating risks — Faergemann said the development of the benchmarking methodology is still underway.
“There will be dialogues with countries at risk of being classified as high-risk,” she said. “This process is still underway, and until it's complete, all countries will be treated as standard risk.”
On the other hand, the EU Forest Observatory, a global mapping tool designed to aid operators in assessing deforestation risks under the new regulation, is currently undergoing revisions. “While this map is not mandatory, it serves as a valuable support system for operators to evaluate risks more effectively,” she added.
To recap, the EU had in December 2022 agreed to ban the imports of various products such as palm oil, beef, soy, coffee, cocoa and timber, which shall be identified as "drivers of deforestation" if they come from land deforested after Dec 31, 2020.
The EU is Malaysia’s third largest export market for palm oil after India and China.
Industry experts expect delay in implementation
Indonesia and Malaysia, two of the world's largest palm oil producers, will hold a third round of discussions with the EU on Thursday in Brussels, as part of the Ad Hoc Joint Task Force focused on the EUDR implementation.
Industry experts expect a delay in the regulation’s implementation due to recent changes in the European Parliament and concerns from companies and businesses that are not yet prepared.
Deputy secretary general of the Council of Palm Oil Producing Countries Datuk Seri Nageeb Wahab opined that the regulation could potentially be reviewed or amended, given the changes in the European Parliament following the recent elections.
“While nothing is certain, we’ve noted that 15 of the 27 EU member states have expressed concerns about the EUDR’s implementation timeline, stating they are not fully prepared. We are hopeful that there will be a review or possibly a delay in the enforcement,” he said.
While the second version of the Malaysian Sustainable Palm Oil (MSPO 2.0) certification is ready to meet the EUDR’s requirements, the challenge lies in traceability particularly in polygon mapping, said director general of the Malaysian Palm Oil Board Datuk Dr Ahmad Parveez Ghulam Kadir.
Polygon mapping, at its core, is a geospatial technology harnessed for the creation of precise and detailed maps of specific geographic areas. These areas are delineated using GPS coordinates, giving birth to a digital representation of land boundaries known as polygons.
“If you recall, in 2019, the government introduced a policy limiting the planted area to 6.5 million hectares, and requiring a map of oil palm plantations. We are currently working on that,” Ahmad Parveez added. The Edge MY
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MPOB developing tech solutions to help smallholders meet EUDR requirements
ROTTERDAM (Sept 11): The Malaysian Palm Oil Board (MPOB) is actively developing technology solutions to help smallholders meet the additional requirements of the European Union Deforestation Regulation (EUDR).
MPOB director general Datuk Ahmad Parveez Ghulam Kadir said the EUDR, which came into effect in June 2023, introduced new requirements for geolocation and traceability.
“Regarding deforestation, smallholders need to meet deforestation-related standards. However, one of the biggest challenges lies in geolocation, mapping, and polygonal data, as well as traceability,” he told Malaysian reporters at the third Sustainable Vegetable Oils Conference (SVOC), organised by the Council of Palm Oil Producing Countries (CPOPC).
Ahmad Parveez added that MPOB is conducting canopy mapping to document oil palm cultivation areas accurately.
“We are preparing for the changes by using satellite imagery to identify all oil palm plantations. We can differentiate oil palm from other crops, such as coconut, based on the planting techniques. By analysing spacing, we can also estimate the age of the trees,” he said.
EUDR: Challenges for smallholders
Despite being a crucial step in preventing deforestation, the stringent requirements of the EUDR pose a challenge for smallholders, potentially threatening their income and position in the supply chain due to their limited resources for compliance. The Edge MY
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From Dead Palms to Sustainable Energy Solutions: How Asia Is Maximizing Biomass Fuel
by Rose Morrison
In eastern Asia, dead palms lay forgotten in fields, waiting to become a beacon of sustainable energy. Fortunately, researchers are taking advantage of these found materials, discovering ways they could revolutionize biomass power generation. The promising findings are cursory steps in reducing the need for virgin materials and eliminating the negative side effects of biofuel production.
Malaysia and Japan’s Palm Experiments
Researchers in Malaysia and Japan are trying to renew biomass energy with felled palm trees. The concept has been in development since 2018, and operations are currently unfolding in southern Malaysia, in the town of Kluang. Although trees, particularly palms, appear to be a promising source of biomass feedstock, they are burdened with impurities that render them less suitable for processing.
The partnering universities put dead palm trunks into a machine, grinding them down into fiber piles within seconds. Their machine would remove impurities in the process, shaping the powder into pellets for boilers.
From a reduction perspective, Asian palms have a distinct advantage over other biomass feedstocks. Their water content is between 70-80%, making them soft and easier to mulch. Additionally, they contain tons of sap, which opens the door for more sustainable applications, such as green aviation fuels. Any unused materials can be repurposed as fertilizer, assisting local agriculture.
The studies clarify that biofuel is not the only application for dead palms. Furniture makers could lower deforestation rates by crafting pieces from these sturdy trunks. A wood board company sent its palm-originated boards to 15 furniture makers to test on a variety of pieces. Japan has successfully manufactured and sold palm-based items since 2022, demonstrating their commercial potential.
Better Biomass
Biofuels and biomass production may become more prevalent renewable energy generators on the planet. However, several problems keep them from reaching their full potential. The palm tree research provides a glimpse into what needs repairing within the biomass sector to make it more sustainable and circular.
Should trees remain in groves to support healthy soils and encourage new growth? While this is the logic for many plant varieties, decomposing palms may invite more harm than good. In their wake, termites and other unwelcome fungi flourish. Additionally, each tree releases 1.3 tons of greenhouse gasses as it dies, making it more impactful to repurpose them before they do.
One issue these experts solve is palm oil’s negative environmental impact. It is among the most hot-button topics in sustainability as the world’s most used vegetable-based oil. Malaysia and Indonesia are top users of the product, making the research’s impact more meaningful. Naturally, this outfit requires swaths of palm groves, which have overtaken countless acres of land and destroyed other forests to make room for this profitable venture.
The land needed to meet global palm oil demand increased tenfold between 1970 and 2020, totaling 30 million hectares. This is more than any other vegetable oil crop, including soybeans, sunflowers and coconuts. Extracting necessary resources from these dead palms is a sustainable option for the palm oil and biomass market. Earth
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September 11, 2024
Researchers find many ‘green labels’ fall short of sustainability promises as new EU law looms
For decades, businesses have promoted their sustainability credentials based on voluntary certifications, but a new study identified gaps in such schemes, including some that previously came under scrutiny from ICIJ.
Voluntary certifications used by companies to tout their green credentials are not fully in line with a new European Union law banning the trade of goods linked to forest destruction, according to a new academic study.
Producers and traders of timber, palm oil and other forestry or agricultural commodities often use so-called green labels to show customers and shareholders that their operations and products do not harm the environment or violate human rights.
However, a study recently published in the Forest Policy and Economics journal found that some sustainability certification schemes awarding such labels “fell short in providing a comprehensive prohibition of deforestation and forest degradation.” The study cautioned companies not to rely on the schemes to prove compliance with the upcoming EU Deforestation Regulation.
The EUDR will go into effect at the end of 2024, requiring most European companies importing certain commodities to be able to prove the products did not originate from deforested land or contribute to forest degradation.
As part of the study, researchers at the University of Padova, in Italy, compared the requirements imposed by the new law with the standards five organizations used to certify the sustainability of timber, soy, palm oil, coffee, rubber and cocoa. Their study did not cover beef because there is no related voluntary certification scheme, the researchers said.
The EUDR makes clear that voluntary sustainability certifications are not mandatory nor sufficient to prove compliance.
Some trade organizations have urged lawmakers to recognize the schemes but the study raises questions about the industry’s position, likening the green labels to “marketing tools” that should be used in tandem with stricter legal requirements. More ICIJ
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Malaysia is Ready to Meet the Challenge
In the face of these calls for delay, including those by the Malaysian government, Malaysia is ready to meet the EUDR challenge if the European Commission is ready to play its part with a key trading partner. Malaysia has:
No certification scheme is perfect.
And MSPO is continuously improving. The question is: will the EU accept that they have written an imperfect Regulation that no stakeholder can meet, and advance the cause of sustainability, or will they stubbornly demand implementation regardless of consequences?
These are Big Questions for Brussels. My Palm Oil Policy
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Malaysia consistent in ensuring environmental sustainability in palm oil production
ROTTERDAM (Sept 10): Malaysia has consistently taken proactive steps to ensure that the environmental sustainability of its palm oil industry meets European standards and deforestation regulations, said Ministry of Plantation and Commodities (KPK) secretary-general Datuk Yusran Shah Mohd Yusof.
Nevertheless, he expressed concern that Malaysia’s palm oil sector may still be impacted by the European Union Deforestation-free Regulation (EUDR), potentially affecting its reputation despite Kuala Lumpur’s stringent environmental standards.
He said this could lead to a decline in exports to the European Union (EU), a major market for palm oil.
Addressing the 3rd Sustainable Vegetable Oils Conference here on Tuesday, organised by the Council of Palm Oil Producing Countries (CPOPC), he said Malaysia has always advocated for fair trade practices and is committed to ensuring that palm oil production does not harm the environment.
Despite these efforts, he acknowledged the challenges posed by new environmental regulations while noting that both Malaysia and the EU have engaged in public advocacy to shape opinions and policies.
“While European environmental groups push for stricter regulations, Malaysia has focused on promoting its sustainability efforts to counter negative perceptions,” he said.
Yusran Shah emphasised that the main issue is not how Malaysia can replace palm oil, which is widely regarded as the most efficient vegetable oil, but rather meeting the growing demand in an efficient, economical, and sustainable way.
"Our priority should be to promote better agronomic practices and improve governance in less developed economies.
“Sustainable policies, whether enforced by law or voluntarily adopted, must be grounded in sound science, practical application across the supply chain, and verifiability,” he said.
He posited that this objective is universally recognised, making it essential for producing countries like Malaysia to demonstrate the significant progress made towards sustainability.
At the same time, he said Malaysia’s palm oil industry must continue to support sustainable practices, particularly through the Malaysian Sustainable Palm Oil certification, to meet global demand, and while competitive pricing is important, maintaining a strong reputation for sustainability is equally crucial.
Yusran Shah also reiterated that global demand for vegetable oils will rise, posing a critical challenge for producing countries to balance the need to meet this demand while ensuring sustainable production.
“While increasing production is vital for food security and economic growth, it must be achieved in a manner that protects the environment, preserves biodiversity, and respects the rights and livelihoods of local communities,” he said.
He added that Malaysia is taking action to lead sustainable vegetable oil production through its palm oil industry. The EdgeMY
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Climate action through circularity and waste management: Malaysian palm oil company IOI’s approach
Integrated palm oil player IOI Corporation Berhad identified circularity as a material matter or an issue that will significantly affect its stakeholders and businesses in 2023. This case study looks at how it aims to achieve net-zero carbon emissions by 2040.
Industrial waste is often treated in most sectors as a disposal challenge, but agribusinesses have long leveraged on the organic by-products of their crops as valuable resources. Malaysia’s palm oil companies are no exception, using regenerative agricultural techniques such as mulching and organic composting to enrich the soil and improve yields.
Beyond its economic and environmental benefits, improved waste management is also crucial towards achieving circularity, which in turn plays a part in supporting climate action. At IOI Corporation Berhad, circularity and waste management are part of a holistic response to climate change, which culminates in its broader goal of achieving net-zero carbon intensity by 2040, said the integrated palm oil player.
Embedding circularity within IOI’s operations follows from its overarching strategies to combat climate change. This involves reducing its climate impact to achieve its net-zero goals and promoting climate action via innovation, improved efficiencies and supporting action throughout its upstream and downstream operations.
Identifying circularity as a material matter
In 2023, IOI identified waste management and the circular economy as one of four new “sustainability material matters”, which are issues that may significantly impact the group’s stakeholders and its business. IOI’s top 10 sustainability material matters were selected following a stringent internal process – from selecting sustainability concerns faced in IOI’s operations, determining their impact on internal and external stakeholders, and ensuring the final selection was validated by internal governance parties, it said. [See graph]
To IOI, circularity and waste management matter because irresponsible production and consumption can overexploit natural resources, placing biodiversity and future generations at risk. The company adopts the 7Rs of circularity – Rethink, Repurpose, Reduce, Reuse, Recycle, Repair and Recover – to reduce its greenhouse gas emissions and other environmental impacts. It also disposes of all hazardous wastes following local laws and regulations, it shared.
The company said practising the 7Rs has helped it create closed-loop systems by improving waste management and resource efficiency and are enablers for IOI to align closely to the United Nations’ Sustainable Development Goal 12 of Responsible Consumption and Production. Eco Business
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CPOPC Calls For Collaboration Among Vegetable Oils Producers to Balance Supply for Global Food and Energy
Rotterdam, SAWIT INDONESIA – The 3rd Sustainable Vegetable Oils Conference concluded on 10 September 2024, in Rotterdam, The Netherlands, brought together a diverse group of stakeholders from across the globe. Co-organized by the Council of Palm Oil Producing Countries (CPOPC) and the Netherlands Oils and Fats Industry (MVO) in collaboration with key industry partners including the Indonesian Palm Oil Plantations Fund Management Agency (BPDPKS), the event addressed the complex challenges facing the vegetable oils sector amidst climate change, regulatory pressures, and rising global demand. The conference highlighted the urgent need for innovation and sustainable practices to meet the growing global demand while adhering to stringent environmental standards, such as the European Union Deforestation Regulation (EUDR).
The Senior Advisor for Connectivity, Service Sector, and Natural Resources of the Coordinating Ministry for Economic Affairs, the Republic of Indonesia, Dr Musdhalifah Machmud, pointed out that EUDR presents a complex landscape for Indonesia's agricultural sector. By adopting a proactive and strategic approach that emphasizes stakeholder engagement, capacity building, certification, and sustainable land use practices, Indonesia can successfully navigate the intricacies of the EUDR.
The Secretary General of the Ministry of Plantation and Commodities of Malaysia, Dato' Yusran Shah bin Mohd Yusof, highlighted that Malaysia fully understands that while increasing production is essential for food security and economic growth, it must be achieved in a manner that safeguards the environment, preserves biodiversity, and respects the rights and livelihoods of local communities. In view of this challenge, Malaysia is taking action to lead the way in sustainable vegetable oil production through our palm oil industry. More Sawit Indonesia
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Palm Oil Swings on Biofuel Demand Outlook and Output Concerns
(Bloomberg) -- Palm oil fluctuated on its poor production outlook and concerns about the tropical oil’s biofuel appeal following recent declines in petroleum prices.
Crude oil dropped 3.7% in the previous session, before partially recovering on Wednesday. The commodity, which has slipped in nine out of 12 sessions, traded below $70 a barrel for the first time in more than two years on concerns about global demand.
Palm oil is reacting to moves in crude oil, said David Ng, a senior trader at IcebergX Sdn. Still, concerns about the pace of production in Malaysia are likely to support the market, he said.
Output in the world’s second-biggest grower rose less than 3% in August from a month earlier, the Malaysian Palm Oil Board’s data showed Tuesday. That compared with a surge of 14% in July. Bloomberg
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Vilsack provides update on USDA’s 45Z work, comments on foreign feedstock issue
Agriculture Secretary Tom Vilsack provided an update of USDA’s work to support guidance for the 45Z Clean Fuel Production Credit and candidly discussed the possible repercussions of efforts to limit the credit to domestically produced feedstocks during a Sept. 10 speech at the Growth Energy Biofuels Summit.
Vilsack said the USDA has recognized stakeholder concerns that the 40B Sustainable Aviation Fuel (SAF) tax credit is too restrictive and did not include enough flexibility for feedstock growers. In response, the USDA earlier this year launched a public comment period to gather additional input on climate smart agriculture for biofuel feedstock production. The agency is currently in the process of assembling the 260 comments received as part of that effort is and working to issue a final rule that essentially identifies the feedstocks that, from the USDA’s perspective, should be authorized and allowed to produce fuel that qualifies for the 45Z credit. The agency hopes this effort will expand the list of eligible feedstocks beyond just corn and soy, he said. The agency is also working to see if it can make the case for individual practices on the farm and/or combinations of farm practices to address the issue of flexibility.
According to Vilsack, the USDA is expediting development of the rule as much as possible. The agency hopes the final rule will plug into the upcoming Treasury guidance. He encouraged stakeholders to continue to engage the USDA as well as Treasury, the U.S. Department of Energy and the U.S. Department of Transportation to advocate for scientifically accurate, workable solutions to climate smart feedstock production. More Ethanol Producer
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Tropical oils consumption and health: a scoping review to inform the development of guidelines in tropical regions
Background
Tropical oils such as palm and coconut oils are renowned for their high saturated fat content and culinary versatility. However, their consumption has sparked debate regarding their health benefits and production concerns. The purpose of this review was to map existing evidence on the health benefits and challenges associated with the consumption of tropical oils.
Method
The recommendations for conducting a scoping review by Arksey and O’Malley were followed. PubMed, Dimensions AI, Central, JSTOR Google, Google Scholar, and ProQuest databases were searched for relevant papers. The predetermined keywords used were Consumption” AND “Tropical oil,” as well as “Health benefits” OR “Health challenges” AND “Tropical Countries.” Peer-reviewed and grey literature published in English were eligible for this review.
Result
Tropical oils, such as palm and coconut oils, provide health benefits including essential vitamins (A and E) that enhance ocular health, boost immunity, and support growth. They are also recognised for their role in managing high blood sugar, obesity, and cholesterol levels, while offering antioxidant and anti-inflammatory properties. These oils have wound-healing abilities and are commonly used in infant nutrition and traditional cooking. Nevertheless, prolonged and repeated use of tropical oils to high temperature can degrade vitamin E, whereas excessive intake may result in overdose. Health concerns include oxidative risks, diabetes, cancer, coronary heart disease, high blood pressure, and acrylamide formation due to production challenges excessive consumption. Additional issues include obesity, suboptimal oil production, misconceptions, regulatory obstacles, and preferences for alternative fats.
Conclusion
This review suggest that tropical oils provide essential health benefits, including vitamins and antioxidant properties, but pose significant health risks and production challenges, particularly when exposed to high temperatures and through excessive intake. Guidelines on the consumption of tropical oils in the tropical regions are necessary to regulate their consumption. BMC Public Health
Researchers find many ‘green labels’ fall short of sustainability promises as new EU law looms
For decades, businesses have promoted their sustainability credentials based on voluntary certifications, but a new study identified gaps in such schemes, including some that previously came under scrutiny from ICIJ.
Voluntary certifications used by companies to tout their green credentials are not fully in line with a new European Union law banning the trade of goods linked to forest destruction, according to a new academic study.
Producers and traders of timber, palm oil and other forestry or agricultural commodities often use so-called green labels to show customers and shareholders that their operations and products do not harm the environment or violate human rights.
However, a study recently published in the Forest Policy and Economics journal found that some sustainability certification schemes awarding such labels “fell short in providing a comprehensive prohibition of deforestation and forest degradation.” The study cautioned companies not to rely on the schemes to prove compliance with the upcoming EU Deforestation Regulation.
The EUDR will go into effect at the end of 2024, requiring most European companies importing certain commodities to be able to prove the products did not originate from deforested land or contribute to forest degradation.
As part of the study, researchers at the University of Padova, in Italy, compared the requirements imposed by the new law with the standards five organizations used to certify the sustainability of timber, soy, palm oil, coffee, rubber and cocoa. Their study did not cover beef because there is no related voluntary certification scheme, the researchers said.
The EUDR makes clear that voluntary sustainability certifications are not mandatory nor sufficient to prove compliance.
Some trade organizations have urged lawmakers to recognize the schemes but the study raises questions about the industry’s position, likening the green labels to “marketing tools” that should be used in tandem with stricter legal requirements. More ICIJ
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Malaysia is Ready to Meet the Challenge
In the face of these calls for delay, including those by the Malaysian government, Malaysia is ready to meet the EUDR challenge if the European Commission is ready to play its part with a key trading partner. Malaysia has:
No certification scheme is perfect.
And MSPO is continuously improving. The question is: will the EU accept that they have written an imperfect Regulation that no stakeholder can meet, and advance the cause of sustainability, or will they stubbornly demand implementation regardless of consequences?
These are Big Questions for Brussels. My Palm Oil Policy
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Malaysia consistent in ensuring environmental sustainability in palm oil production
ROTTERDAM (Sept 10): Malaysia has consistently taken proactive steps to ensure that the environmental sustainability of its palm oil industry meets European standards and deforestation regulations, said Ministry of Plantation and Commodities (KPK) secretary-general Datuk Yusran Shah Mohd Yusof.
Nevertheless, he expressed concern that Malaysia’s palm oil sector may still be impacted by the European Union Deforestation-free Regulation (EUDR), potentially affecting its reputation despite Kuala Lumpur’s stringent environmental standards.
He said this could lead to a decline in exports to the European Union (EU), a major market for palm oil.
Addressing the 3rd Sustainable Vegetable Oils Conference here on Tuesday, organised by the Council of Palm Oil Producing Countries (CPOPC), he said Malaysia has always advocated for fair trade practices and is committed to ensuring that palm oil production does not harm the environment.
Despite these efforts, he acknowledged the challenges posed by new environmental regulations while noting that both Malaysia and the EU have engaged in public advocacy to shape opinions and policies.
“While European environmental groups push for stricter regulations, Malaysia has focused on promoting its sustainability efforts to counter negative perceptions,” he said.
Yusran Shah emphasised that the main issue is not how Malaysia can replace palm oil, which is widely regarded as the most efficient vegetable oil, but rather meeting the growing demand in an efficient, economical, and sustainable way.
"Our priority should be to promote better agronomic practices and improve governance in less developed economies.
“Sustainable policies, whether enforced by law or voluntarily adopted, must be grounded in sound science, practical application across the supply chain, and verifiability,” he said.
He posited that this objective is universally recognised, making it essential for producing countries like Malaysia to demonstrate the significant progress made towards sustainability.
At the same time, he said Malaysia’s palm oil industry must continue to support sustainable practices, particularly through the Malaysian Sustainable Palm Oil certification, to meet global demand, and while competitive pricing is important, maintaining a strong reputation for sustainability is equally crucial.
Yusran Shah also reiterated that global demand for vegetable oils will rise, posing a critical challenge for producing countries to balance the need to meet this demand while ensuring sustainable production.
“While increasing production is vital for food security and economic growth, it must be achieved in a manner that protects the environment, preserves biodiversity, and respects the rights and livelihoods of local communities,” he said.
He added that Malaysia is taking action to lead sustainable vegetable oil production through its palm oil industry. The EdgeMY
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Climate action through circularity and waste management: Malaysian palm oil company IOI’s approach
Integrated palm oil player IOI Corporation Berhad identified circularity as a material matter or an issue that will significantly affect its stakeholders and businesses in 2023. This case study looks at how it aims to achieve net-zero carbon emissions by 2040.
Industrial waste is often treated in most sectors as a disposal challenge, but agribusinesses have long leveraged on the organic by-products of their crops as valuable resources. Malaysia’s palm oil companies are no exception, using regenerative agricultural techniques such as mulching and organic composting to enrich the soil and improve yields.
Beyond its economic and environmental benefits, improved waste management is also crucial towards achieving circularity, which in turn plays a part in supporting climate action. At IOI Corporation Berhad, circularity and waste management are part of a holistic response to climate change, which culminates in its broader goal of achieving net-zero carbon intensity by 2040, said the integrated palm oil player.
Embedding circularity within IOI’s operations follows from its overarching strategies to combat climate change. This involves reducing its climate impact to achieve its net-zero goals and promoting climate action via innovation, improved efficiencies and supporting action throughout its upstream and downstream operations.
Identifying circularity as a material matter
In 2023, IOI identified waste management and the circular economy as one of four new “sustainability material matters”, which are issues that may significantly impact the group’s stakeholders and its business. IOI’s top 10 sustainability material matters were selected following a stringent internal process – from selecting sustainability concerns faced in IOI’s operations, determining their impact on internal and external stakeholders, and ensuring the final selection was validated by internal governance parties, it said. [See graph]
To IOI, circularity and waste management matter because irresponsible production and consumption can overexploit natural resources, placing biodiversity and future generations at risk. The company adopts the 7Rs of circularity – Rethink, Repurpose, Reduce, Reuse, Recycle, Repair and Recover – to reduce its greenhouse gas emissions and other environmental impacts. It also disposes of all hazardous wastes following local laws and regulations, it shared.
The company said practising the 7Rs has helped it create closed-loop systems by improving waste management and resource efficiency and are enablers for IOI to align closely to the United Nations’ Sustainable Development Goal 12 of Responsible Consumption and Production. Eco Business
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CPOPC Calls For Collaboration Among Vegetable Oils Producers to Balance Supply for Global Food and Energy
Rotterdam, SAWIT INDONESIA – The 3rd Sustainable Vegetable Oils Conference concluded on 10 September 2024, in Rotterdam, The Netherlands, brought together a diverse group of stakeholders from across the globe. Co-organized by the Council of Palm Oil Producing Countries (CPOPC) and the Netherlands Oils and Fats Industry (MVO) in collaboration with key industry partners including the Indonesian Palm Oil Plantations Fund Management Agency (BPDPKS), the event addressed the complex challenges facing the vegetable oils sector amidst climate change, regulatory pressures, and rising global demand. The conference highlighted the urgent need for innovation and sustainable practices to meet the growing global demand while adhering to stringent environmental standards, such as the European Union Deforestation Regulation (EUDR).
The Senior Advisor for Connectivity, Service Sector, and Natural Resources of the Coordinating Ministry for Economic Affairs, the Republic of Indonesia, Dr Musdhalifah Machmud, pointed out that EUDR presents a complex landscape for Indonesia's agricultural sector. By adopting a proactive and strategic approach that emphasizes stakeholder engagement, capacity building, certification, and sustainable land use practices, Indonesia can successfully navigate the intricacies of the EUDR.
The Secretary General of the Ministry of Plantation and Commodities of Malaysia, Dato' Yusran Shah bin Mohd Yusof, highlighted that Malaysia fully understands that while increasing production is essential for food security and economic growth, it must be achieved in a manner that safeguards the environment, preserves biodiversity, and respects the rights and livelihoods of local communities. In view of this challenge, Malaysia is taking action to lead the way in sustainable vegetable oil production through our palm oil industry. More Sawit Indonesia
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Palm Oil Swings on Biofuel Demand Outlook and Output Concerns
(Bloomberg) -- Palm oil fluctuated on its poor production outlook and concerns about the tropical oil’s biofuel appeal following recent declines in petroleum prices.
Crude oil dropped 3.7% in the previous session, before partially recovering on Wednesday. The commodity, which has slipped in nine out of 12 sessions, traded below $70 a barrel for the first time in more than two years on concerns about global demand.
Palm oil is reacting to moves in crude oil, said David Ng, a senior trader at IcebergX Sdn. Still, concerns about the pace of production in Malaysia are likely to support the market, he said.
Output in the world’s second-biggest grower rose less than 3% in August from a month earlier, the Malaysian Palm Oil Board’s data showed Tuesday. That compared with a surge of 14% in July. Bloomberg
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Vilsack provides update on USDA’s 45Z work, comments on foreign feedstock issue
Agriculture Secretary Tom Vilsack provided an update of USDA’s work to support guidance for the 45Z Clean Fuel Production Credit and candidly discussed the possible repercussions of efforts to limit the credit to domestically produced feedstocks during a Sept. 10 speech at the Growth Energy Biofuels Summit.
Vilsack said the USDA has recognized stakeholder concerns that the 40B Sustainable Aviation Fuel (SAF) tax credit is too restrictive and did not include enough flexibility for feedstock growers. In response, the USDA earlier this year launched a public comment period to gather additional input on climate smart agriculture for biofuel feedstock production. The agency is currently in the process of assembling the 260 comments received as part of that effort is and working to issue a final rule that essentially identifies the feedstocks that, from the USDA’s perspective, should be authorized and allowed to produce fuel that qualifies for the 45Z credit. The agency hopes this effort will expand the list of eligible feedstocks beyond just corn and soy, he said. The agency is also working to see if it can make the case for individual practices on the farm and/or combinations of farm practices to address the issue of flexibility.
According to Vilsack, the USDA is expediting development of the rule as much as possible. The agency hopes the final rule will plug into the upcoming Treasury guidance. He encouraged stakeholders to continue to engage the USDA as well as Treasury, the U.S. Department of Energy and the U.S. Department of Transportation to advocate for scientifically accurate, workable solutions to climate smart feedstock production. More Ethanol Producer
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Tropical oils consumption and health: a scoping review to inform the development of guidelines in tropical regions
Background
Tropical oils such as palm and coconut oils are renowned for their high saturated fat content and culinary versatility. However, their consumption has sparked debate regarding their health benefits and production concerns. The purpose of this review was to map existing evidence on the health benefits and challenges associated with the consumption of tropical oils.
Method
The recommendations for conducting a scoping review by Arksey and O’Malley were followed. PubMed, Dimensions AI, Central, JSTOR Google, Google Scholar, and ProQuest databases were searched for relevant papers. The predetermined keywords used were Consumption” AND “Tropical oil,” as well as “Health benefits” OR “Health challenges” AND “Tropical Countries.” Peer-reviewed and grey literature published in English were eligible for this review.
Result
Tropical oils, such as palm and coconut oils, provide health benefits including essential vitamins (A and E) that enhance ocular health, boost immunity, and support growth. They are also recognised for their role in managing high blood sugar, obesity, and cholesterol levels, while offering antioxidant and anti-inflammatory properties. These oils have wound-healing abilities and are commonly used in infant nutrition and traditional cooking. Nevertheless, prolonged and repeated use of tropical oils to high temperature can degrade vitamin E, whereas excessive intake may result in overdose. Health concerns include oxidative risks, diabetes, cancer, coronary heart disease, high blood pressure, and acrylamide formation due to production challenges excessive consumption. Additional issues include obesity, suboptimal oil production, misconceptions, regulatory obstacles, and preferences for alternative fats.
Conclusion
This review suggest that tropical oils provide essential health benefits, including vitamins and antioxidant properties, but pose significant health risks and production challenges, particularly when exposed to high temperatures and through excessive intake. Guidelines on the consumption of tropical oils in the tropical regions are necessary to regulate their consumption. BMC Public Health
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September 10, 2024
Indonesia and Malaysia call for EUDR postponement amid concerns over smallholder farmers
Renewed calls for the forthcoming EU Deforestation Regulation (EUDR) to be postponed are being voiced this week as palm oil stakeholders from Indonesia and Malaysia meet with counterparts in Brussels and Rotterdam for a series of discussions and events on sustainable vegetable oils.
Hailed as a vital turning point in the global fight against deforestation, the EUDR, which entered into force in June 2023, is due to apply from December 2024. Following this 18-month transition, palm oil, coffee, cocoa and soy businesses will have to prove their products are not linked in any way to deforestation.
This proof must be backed by documentation showing that production did not involve unsustainable forest clearance. Otherwise, goods will not be allowed on the EU market.
However, micro- and small enterprises can apply for the EUDR until June 2025 (a 24-month transition).
The main concerns driving calls for the EUDR to be pushed back are centered on small-scale farmers from places like Indonesia and Malaysia, both major palm oil producers.
Some believe the EUDR penalizes small-scale farmers and puts them at a disadvantage compared to big business counterparts.
Chairman of the Indonesian Palm Oil Association Eddy Martono recently said: “The government is fully supporting us to ensure that the implementation of the EUDR does not place an undue burden on us. If implemented, small farmers will be the first to suffer. They may be pushed out of the supply chain.”
MEP and environmental spokesperson Peter Liese is among the voices calling for the postponement of the EUDR, stressing its impact on smallholders in developing countries. Although he backs the EUDR in terms of fighting deforestation, he is pushing for a two-year delay to its implementation so that better rules for how it applies can be established.
This is not the first time concerns have been raised over how the EUDR will penalize small-scale farmers in developing countries. Fairtrade International has also called for more financial support for small-scale farmers, while the US government urged a delay to protect food businesses.
Key talks in Brussels
How global trade adapts to environmental regulations is crucial to the EUDR.
The Sustainable Vegetable Oil Conference, which will take place tomorrow in Rotterdam, is Organized by the Council of Palm Oil Producing Countries (CPOPC) and the Netherlands Oils and Fats Industry (MVO). It is also supported by the governments of Indonesia, Malaysia and the Indonesian Palm Oil Association (GAPKI). Food Ingredients First
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FEDIOL highlights persistent challenges with EUDR implementation
09-Sep-2024 By Jane Byrne
FEDIOL, the association representing the EU vegetable oils and oilseed crushing sectors, continues to express concerns over the implementation of the EU Deforestation Regulation (EUDR).
The landmark legislation aims to ensure that products such as soy, coffee, cocoa, palm oil, and beef sold in Europe do not contribute to deforestation. Under the new rules, companies are required to prove that their goods are not sourced from recently deforested land or linked to forest degradation.
Nathalie Lecocq, director general of FEDIOL, points to the absence of further guidance from the EU Commission on key aspects of the regulation.
“We are deeply concerned,” she tells us. “Since the last FAQ update in December 2023, we’ve submitted numerous questions that remain unanswered. These issues relate to definitions, the submission of due diligence statements (DDS), the handling of commodity flows, the collection and provision of required information, the management of sensitive data (both personal and commercial), and how to ensure that due diligence has been adequately performed. Additionally, there are significant concerns about the design and functionality of the Information System—specifically, whether it can handle the necessary data and meet business requirements. These are just a few of the challenges we are facing.”
Regarding whether issues with the due diligence platform have been resolved, Lecocq comments: “According to the Directorate-General for Environment (DG ENV) the problems raised during the pilot phase in January have been addressed, but businesses remain uncertain about whether the Information System will meet their needs."
The platform's limitations—such as the restrictions on data uploads and the standards to be applied—present further administrative burdens and increase the risk of errors, she warns.
Lecocq acknowledges that DG ENV has provided some additional insights into the system's functionality but emphasizes that many questions remain unresolved.
As for the availability of market offers from suppliers in export countries for soy and palm products due for delivery to the EU post-January 2025—a concern raised in June—Lecocq provides an update: “While some offers have emerged, they are nowhere near the volume seen in previous years. Both sellers and buyers face significant uncertainty, raising concerns about the future availability of these key commodities.”
FEDIOL has consistently stressed the negative market implications of this uncertainty for operators and traders, calling for immediate clarifications and solutions from both the Commission and member states.
Push for postponementConcerns have been raised by other industry groups and EU farming ministers about the regulation's practical application.
There have been calls from various stakeholders to postpone the enforcement of the regulation. However, EU officials told a press briefing on August 22 that the co-legislators have set the date for the legislation to take effect, and that the Commission is taking all necessary steps to ensure everything is ready in time.
Between a rock and a hard placeExperts in Brussels warn that any delay to the EUDR could stall investments and push businesses toward markets with lower environmental standards.
Additionally, weakening the regulation could call into question the EU’s credibility and leadership on climate issues, note analysts at the Europe Jacques Delors, a European think tank. "The Commission finds itself between a rock and a hard place, caught between the need to stick to its environmental commitments while grappling with the regulation’s shortcomings. Walking this tightrope requires strong leadership to uphold the EUDR’s framework in a difficult political climate, along with the courage to recognize and respond to legitimate concerns about its implementation,” they write.
They further emphasize the need for increased technical and financial resources to ensure a smooth and fair implementation of the rules.
Calls to stay the courseEnvironmental groups and NGOs are urging the EU not to waver, warning that any delay in the regulation could weaken global efforts to combat deforestation.
The EUDR is seen as a crucial tool in the fight against climate change, and a postponement might send mixed signals regarding the EU’s commitment to its environmental goals, say those campaigners. Feed Navigator
Indonesia and Malaysia call for EUDR postponement amid concerns over smallholder farmers
Renewed calls for the forthcoming EU Deforestation Regulation (EUDR) to be postponed are being voiced this week as palm oil stakeholders from Indonesia and Malaysia meet with counterparts in Brussels and Rotterdam for a series of discussions and events on sustainable vegetable oils.
Hailed as a vital turning point in the global fight against deforestation, the EUDR, which entered into force in June 2023, is due to apply from December 2024. Following this 18-month transition, palm oil, coffee, cocoa and soy businesses will have to prove their products are not linked in any way to deforestation.
This proof must be backed by documentation showing that production did not involve unsustainable forest clearance. Otherwise, goods will not be allowed on the EU market.
However, micro- and small enterprises can apply for the EUDR until June 2025 (a 24-month transition).
The main concerns driving calls for the EUDR to be pushed back are centered on small-scale farmers from places like Indonesia and Malaysia, both major palm oil producers.
Some believe the EUDR penalizes small-scale farmers and puts them at a disadvantage compared to big business counterparts.
Chairman of the Indonesian Palm Oil Association Eddy Martono recently said: “The government is fully supporting us to ensure that the implementation of the EUDR does not place an undue burden on us. If implemented, small farmers will be the first to suffer. They may be pushed out of the supply chain.”
MEP and environmental spokesperson Peter Liese is among the voices calling for the postponement of the EUDR, stressing its impact on smallholders in developing countries. Although he backs the EUDR in terms of fighting deforestation, he is pushing for a two-year delay to its implementation so that better rules for how it applies can be established.
This is not the first time concerns have been raised over how the EUDR will penalize small-scale farmers in developing countries. Fairtrade International has also called for more financial support for small-scale farmers, while the US government urged a delay to protect food businesses.
Key talks in Brussels
How global trade adapts to environmental regulations is crucial to the EUDR.
The Sustainable Vegetable Oil Conference, which will take place tomorrow in Rotterdam, is Organized by the Council of Palm Oil Producing Countries (CPOPC) and the Netherlands Oils and Fats Industry (MVO). It is also supported by the governments of Indonesia, Malaysia and the Indonesian Palm Oil Association (GAPKI). Food Ingredients First
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FEDIOL highlights persistent challenges with EUDR implementation
09-Sep-2024 By Jane Byrne
FEDIOL, the association representing the EU vegetable oils and oilseed crushing sectors, continues to express concerns over the implementation of the EU Deforestation Regulation (EUDR).
The landmark legislation aims to ensure that products such as soy, coffee, cocoa, palm oil, and beef sold in Europe do not contribute to deforestation. Under the new rules, companies are required to prove that their goods are not sourced from recently deforested land or linked to forest degradation.
Nathalie Lecocq, director general of FEDIOL, points to the absence of further guidance from the EU Commission on key aspects of the regulation.
“We are deeply concerned,” she tells us. “Since the last FAQ update in December 2023, we’ve submitted numerous questions that remain unanswered. These issues relate to definitions, the submission of due diligence statements (DDS), the handling of commodity flows, the collection and provision of required information, the management of sensitive data (both personal and commercial), and how to ensure that due diligence has been adequately performed. Additionally, there are significant concerns about the design and functionality of the Information System—specifically, whether it can handle the necessary data and meet business requirements. These are just a few of the challenges we are facing.”
Regarding whether issues with the due diligence platform have been resolved, Lecocq comments: “According to the Directorate-General for Environment (DG ENV) the problems raised during the pilot phase in January have been addressed, but businesses remain uncertain about whether the Information System will meet their needs."
The platform's limitations—such as the restrictions on data uploads and the standards to be applied—present further administrative burdens and increase the risk of errors, she warns.
Lecocq acknowledges that DG ENV has provided some additional insights into the system's functionality but emphasizes that many questions remain unresolved.
As for the availability of market offers from suppliers in export countries for soy and palm products due for delivery to the EU post-January 2025—a concern raised in June—Lecocq provides an update: “While some offers have emerged, they are nowhere near the volume seen in previous years. Both sellers and buyers face significant uncertainty, raising concerns about the future availability of these key commodities.”
FEDIOL has consistently stressed the negative market implications of this uncertainty for operators and traders, calling for immediate clarifications and solutions from both the Commission and member states.
Push for postponementConcerns have been raised by other industry groups and EU farming ministers about the regulation's practical application.
There have been calls from various stakeholders to postpone the enforcement of the regulation. However, EU officials told a press briefing on August 22 that the co-legislators have set the date for the legislation to take effect, and that the Commission is taking all necessary steps to ensure everything is ready in time.
Between a rock and a hard placeExperts in Brussels warn that any delay to the EUDR could stall investments and push businesses toward markets with lower environmental standards.
Additionally, weakening the regulation could call into question the EU’s credibility and leadership on climate issues, note analysts at the Europe Jacques Delors, a European think tank. "The Commission finds itself between a rock and a hard place, caught between the need to stick to its environmental commitments while grappling with the regulation’s shortcomings. Walking this tightrope requires strong leadership to uphold the EUDR’s framework in a difficult political climate, along with the courage to recognize and respond to legitimate concerns about its implementation,” they write.
They further emphasize the need for increased technical and financial resources to ensure a smooth and fair implementation of the rules.
Calls to stay the courseEnvironmental groups and NGOs are urging the EU not to waver, warning that any delay in the regulation could weaken global efforts to combat deforestation.
The EUDR is seen as a crucial tool in the fight against climate change, and a postponement might send mixed signals regarding the EU’s commitment to its environmental goals, say those campaigners. Feed Navigator
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September 09, 2024
EU must rebuild trading relations with developing nations
As we look ahead to the next Commission mandate one of the most pressing items in the in-tray will be the mounting problems in trade policy, writes Alexander Seale, a London-based freelance journalist.
The main problem is simple to identify: the pace of new Free Trade Agreements (FTAs) has slowed significantly – in some cases to a standstill – over the past five years. The dynamic, proactive trade agenda of the Lamy and Mandelson years feels a distant memory. This matters because access to new markets is critical for EU exporters in an era of low economic growth and growing geopolitical competition.
At first glance, the solution is also simple to identify. The regions where FTA progress is most-needed are well-known – ASEAN, India, Latin America. The regions where progress is most desirable, because of fast-growing economies and rising demand for EU imports, are also well known – ASEAN, India, Latin America. It’s a match. ASEAN, for example, will be the most important market for import growth anywhere in the world over the next 3 years, according to the IMF.
Unfortunately, the core problem with EU trade policy is also simple to identify (but not to fix). The von der Leyen Commission has spent much of the past five years alienating those same regions by enacting Green Deal legislation specifically targeting commodities produced in those countries. Predictably, the EU’s reputation as a trusted partner has taken a battering. Malaysia has filed, and won, a WTO complaint against EU restrictions on palm oil exports. Malaysia’s Prime Minister Anwar Ibrahim has said that he is determined to “fight discrimination against palm oil” in the EU’s Deforestation Regulation. More EU Reporter
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The EUDR needs corrective action to work
The EU Deforestation Regulation in its current form will result in perverse outcomes that harm the world’s poorest farmers – but they can be avoided, writes Eddy Martono.
Palm oil is Indonesia’s largest non-mineral export. It is Indonesia’s largest export to the European Union. It supports 2.6 million smallholders in Indonesia, employing 17 million people. It supports jobs and livelihoods across the country, particularly in rural areas. It’s lifted millions of people out of poverty across Indonesia’s 17,000 islands.
Europe is one of the largest global consumers of palm oil, but it has a love-hate relationship with the crop. It‘s an essential in European staples, from hazelnut spreads to detergents. It had – up until recently – even found a place within Europe’s renewable energy programs. Why? Because it is cheap, useful across a range of industries, and extremely competitive.
This competitiveness – particularly in renewable fuels – has led to a backlash. The EU has imposed a broad swathe of protectionist barriers through antidumping duties, countervailing duties and an effective renewables ban. Some of these have attempted a justification – Indonesia’s historic deforestation rates have been mentioned – but others are just plain protectionism.
These measures have brought EU-Indonesia relations to a nadir, with direct rebukes from Indonesia’s president.
It’s no surprise, then, that Indonesia – along with many other countries across the globe — has reacted with alarm to the recent European Union Deforestation Regulation (EUDR).
The alarm is not to the objectives of the regulation, i.e. reducing deforestation. Indonesia has been pursuing this objective unilaterally – and succeeding – for the past decade. Reforms to land use rules have resulted in Indonesia recording its lowest-ever deforestation rates in 2022.
No, the alarm is from the sheer unwillingness of the EU’s institutions to reasonably consider the impact of the regulation on its trading partners.
One exporter estimates each shipment will require 6 million data points under EUDR. It means that a silo of liquid pulp or palm oil from one source needs to be emptied entirely if it’s going to be filled with material from another source. It also means that traceable and non-traceable material can’t be mixed.
For smallholders, this means exclusion from EU supply chains. Not because the smallholders don’t meet the EUDR’s deforestation rules, but because the compliance requirements are too great. In rural areas, the technological equipment does not exist, nor does the level of education, nor do the institutions to supply detailed mapping of thousands of data points.
This isn’t exclusive to Indonesia, nor to palm oil. Coffee, cocoa and timber producers from Brazil, Nigeria, and Malaysia have all raised similar issues.
Western countries – including the US, Australia and Canada – have also pointed out that the EUDR’s rules are virtually impossible to meet given the nature of existing supply chains.
And notably, EU member states have objected. Last month’s meeting of agricultural ministers was effectively a unanimous call for the EUDR to be changed. The EPP’s environmental spokesperson, Peter Liese MEP, has called for a two-year delay in the implementation process and a review.
The Indonesian palm oil sector and government echo these European sentiments, calling for a delay. This is essential. If a delay is agreed upon, that time should be used for a constructive discussion on improving EUDR.
First is smallholders. The EUDR offers an ‘exemption’ for smallholders that is of no practical help. The EU’s arbitrary definition of smallholders differs significantly from that used elsewhere. This must be changed, and a genuine exemption included.
The second is certification. The palm oil industry has been acknowledged as the “most prepared” of all commodity industries. Indonesia’s national certification scheme – ISPO – is the world’s largest palm oil certification scheme. Some recognition must be given to this, whether in the form of increased capacity building for the scheme or explicit recognition in the EU’s guidelines.
Third is deforestation benchmarking. The EUDR requires that countries be benchmarked for deforestation risk, as high, standard or low. The benchmarking process needs to consider the reductions that Indonesia has made and its cooperation with the EU and Norway on deforestation. Not doing so sends a negative signal to Indonesia and other developing countries.
The controversy around the EUDR could have been avoided. Consultations with trading partners must now take place, and they must be meaningful. This is precisely what Indonesia’s delegates are seeking this week in Brussels. Euractiv
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Indonesia’s palm oil B50 biodiesel blend aims for renewable energy without compromising global palm oil supply demands
INDONESIA: Indonesia, the world’s leading palm oil producer, aims to harness its vast reserves as a renewable energy source. Since 2008, the country has been blending palm oil with fossil fuel-based diesel to create biodiesel, starting with a modest B2.5 mix.
Over time, this blend has steadily increased, and today, as per a report by the Diplomat, Indonesia uses a B35 mix, with plans to ramp up to B40 next year. President-elect Prabowo Subianto has set an even more ambitious target—a B50 blend by 2029.
An ambitious project
These initiatives are part of a broader strategy to reduce dependence on imported fossil fuels, bolster the agricultural sector, and cut carbon emissions.
However, the plan to increase the biodiesel blend has sparked concerns about the global palm oil supply chain, given Indonesia’s dominant role in the industry.
In 2023, Indonesia produced 46 million tons of palm oil, accounting for 59 per cent of the global market. Domestic consumption patterns have shifted, with biodiesel use surpassing food consumption for the first time.
This trend has raised concerns about food security, especially after the 2022 cooking oil scarcity.
The implementation of the B35 mix has significantly boosted palm oil consumption for biodiesel, and the upcoming B40 mandate is expected to drive demand even higher. More The IndependentSG
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Rich countries ‘energy transition’ won’t work for developing nations, says Indonesian government
Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan said that the economies of developing countries must still grow, while they pursued emissions reduction.
JAKARTA – The government has reiterated that it will pursue the energy transition at its own pace and in ways that match the country’s economic goals and fiscal ability, stressing that the strategies of advanced economies will not work for developing countries.
Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan said the economies of developing countries must still grow, while they pursued emissions reduction.
He also stressed that the world could not rely on certain technologies in pursuing global emissions reduction.
“We need to avoid being dogmatic about one technology in carbon emissions reduction,” Luhut said during the Indonesia International Sustainability Forum (IISF) in Jakarta on Thursday.
Luhut went on to say that Indonesia would involve the development of the green economy as part of its push toward energy transition.
He cited cooperation with Singapore in developing a solar panel manufacturing industry in exchange for exporting low-emission electricity to the city state. Singapore has approved the import of 3.4 gigawatts of electricity from Indonesia as of Thursday.
Luhut also boasted of the country’s push into electric vehicle (EV) manufacturing and EV adoption among Indonesians.
Moreover, Luhut is also eyeing boosting the country’s biofuel production, particularly from existing sources of crude palm oil and later exploring the use of seaweed, which it has in abundance. More Asia News Network/ The Jakarta Post
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Export compliance: TCB registering coffee farmers
THE Tanzania Coffee Board (TCB) is proceeding with a comprehensive re-registration of all coffee farmers across the 17 coffee-producing regions, following new market conditions set out by the European Union (EU)
Primus Kimaryo, the TCB director general, said in a statement here at the weekend that the EU market, which purchases 50 percent of Tanzania’s coffee, now requires that all exported coffee be certified as not contributing to environmental harm.
All crops exported to EU countries need to be free from links to environmental destruction, he said, noting that compliance is vital to ensure the country maintain access to EU markets.
The requirement covers coffee, soybeans, timber, rubber, palm oil and cacao, where re-registration involves farmers presenting identification, their photos taken and providing detailed information about their farms, the duration of their coffee cultivation and specific farming practices, he said.
This information will help to demonstrate that Tanzanian coffee is produced sustainably and does not result in environmental damage, he said, requesting full cooperation from district councils in coffee-growing regions to facilitate re-registration.
Underlining the urgency of the matter, he said that starting early next year, all crops exported to the EU must be certified as deforestation-free, while the Agriculture ministry checks with the EU on regulations on pesticide use, seed types or availability and other farming practices.
“I urge farmers to view this registration as a vital step to maintain access to the EU market,” he said, affirming that the exercise commences this month in Kagera Region, where over 40 percent of local coffee originates.
“We will then proceed to the Songwe and Ruvuma regions, followed by Kilimanjaro, Manyara and Arusha. Other regions will be covered subsequently, based on market conditions,” he elaborated. More IPP Media
EU must rebuild trading relations with developing nations
As we look ahead to the next Commission mandate one of the most pressing items in the in-tray will be the mounting problems in trade policy, writes Alexander Seale, a London-based freelance journalist.
The main problem is simple to identify: the pace of new Free Trade Agreements (FTAs) has slowed significantly – in some cases to a standstill – over the past five years. The dynamic, proactive trade agenda of the Lamy and Mandelson years feels a distant memory. This matters because access to new markets is critical for EU exporters in an era of low economic growth and growing geopolitical competition.
At first glance, the solution is also simple to identify. The regions where FTA progress is most-needed are well-known – ASEAN, India, Latin America. The regions where progress is most desirable, because of fast-growing economies and rising demand for EU imports, are also well known – ASEAN, India, Latin America. It’s a match. ASEAN, for example, will be the most important market for import growth anywhere in the world over the next 3 years, according to the IMF.
Unfortunately, the core problem with EU trade policy is also simple to identify (but not to fix). The von der Leyen Commission has spent much of the past five years alienating those same regions by enacting Green Deal legislation specifically targeting commodities produced in those countries. Predictably, the EU’s reputation as a trusted partner has taken a battering. Malaysia has filed, and won, a WTO complaint against EU restrictions on palm oil exports. Malaysia’s Prime Minister Anwar Ibrahim has said that he is determined to “fight discrimination against palm oil” in the EU’s Deforestation Regulation. More EU Reporter
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The EUDR needs corrective action to work
The EU Deforestation Regulation in its current form will result in perverse outcomes that harm the world’s poorest farmers – but they can be avoided, writes Eddy Martono.
Palm oil is Indonesia’s largest non-mineral export. It is Indonesia’s largest export to the European Union. It supports 2.6 million smallholders in Indonesia, employing 17 million people. It supports jobs and livelihoods across the country, particularly in rural areas. It’s lifted millions of people out of poverty across Indonesia’s 17,000 islands.
Europe is one of the largest global consumers of palm oil, but it has a love-hate relationship with the crop. It‘s an essential in European staples, from hazelnut spreads to detergents. It had – up until recently – even found a place within Europe’s renewable energy programs. Why? Because it is cheap, useful across a range of industries, and extremely competitive.
This competitiveness – particularly in renewable fuels – has led to a backlash. The EU has imposed a broad swathe of protectionist barriers through antidumping duties, countervailing duties and an effective renewables ban. Some of these have attempted a justification – Indonesia’s historic deforestation rates have been mentioned – but others are just plain protectionism.
These measures have brought EU-Indonesia relations to a nadir, with direct rebukes from Indonesia’s president.
It’s no surprise, then, that Indonesia – along with many other countries across the globe — has reacted with alarm to the recent European Union Deforestation Regulation (EUDR).
The alarm is not to the objectives of the regulation, i.e. reducing deforestation. Indonesia has been pursuing this objective unilaterally – and succeeding – for the past decade. Reforms to land use rules have resulted in Indonesia recording its lowest-ever deforestation rates in 2022.
No, the alarm is from the sheer unwillingness of the EU’s institutions to reasonably consider the impact of the regulation on its trading partners.
One exporter estimates each shipment will require 6 million data points under EUDR. It means that a silo of liquid pulp or palm oil from one source needs to be emptied entirely if it’s going to be filled with material from another source. It also means that traceable and non-traceable material can’t be mixed.
For smallholders, this means exclusion from EU supply chains. Not because the smallholders don’t meet the EUDR’s deforestation rules, but because the compliance requirements are too great. In rural areas, the technological equipment does not exist, nor does the level of education, nor do the institutions to supply detailed mapping of thousands of data points.
This isn’t exclusive to Indonesia, nor to palm oil. Coffee, cocoa and timber producers from Brazil, Nigeria, and Malaysia have all raised similar issues.
Western countries – including the US, Australia and Canada – have also pointed out that the EUDR’s rules are virtually impossible to meet given the nature of existing supply chains.
And notably, EU member states have objected. Last month’s meeting of agricultural ministers was effectively a unanimous call for the EUDR to be changed. The EPP’s environmental spokesperson, Peter Liese MEP, has called for a two-year delay in the implementation process and a review.
The Indonesian palm oil sector and government echo these European sentiments, calling for a delay. This is essential. If a delay is agreed upon, that time should be used for a constructive discussion on improving EUDR.
First is smallholders. The EUDR offers an ‘exemption’ for smallholders that is of no practical help. The EU’s arbitrary definition of smallholders differs significantly from that used elsewhere. This must be changed, and a genuine exemption included.
The second is certification. The palm oil industry has been acknowledged as the “most prepared” of all commodity industries. Indonesia’s national certification scheme – ISPO – is the world’s largest palm oil certification scheme. Some recognition must be given to this, whether in the form of increased capacity building for the scheme or explicit recognition in the EU’s guidelines.
Third is deforestation benchmarking. The EUDR requires that countries be benchmarked for deforestation risk, as high, standard or low. The benchmarking process needs to consider the reductions that Indonesia has made and its cooperation with the EU and Norway on deforestation. Not doing so sends a negative signal to Indonesia and other developing countries.
The controversy around the EUDR could have been avoided. Consultations with trading partners must now take place, and they must be meaningful. This is precisely what Indonesia’s delegates are seeking this week in Brussels. Euractiv
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Indonesia’s palm oil B50 biodiesel blend aims for renewable energy without compromising global palm oil supply demands
INDONESIA: Indonesia, the world’s leading palm oil producer, aims to harness its vast reserves as a renewable energy source. Since 2008, the country has been blending palm oil with fossil fuel-based diesel to create biodiesel, starting with a modest B2.5 mix.
Over time, this blend has steadily increased, and today, as per a report by the Diplomat, Indonesia uses a B35 mix, with plans to ramp up to B40 next year. President-elect Prabowo Subianto has set an even more ambitious target—a B50 blend by 2029.
An ambitious project
These initiatives are part of a broader strategy to reduce dependence on imported fossil fuels, bolster the agricultural sector, and cut carbon emissions.
However, the plan to increase the biodiesel blend has sparked concerns about the global palm oil supply chain, given Indonesia’s dominant role in the industry.
In 2023, Indonesia produced 46 million tons of palm oil, accounting for 59 per cent of the global market. Domestic consumption patterns have shifted, with biodiesel use surpassing food consumption for the first time.
This trend has raised concerns about food security, especially after the 2022 cooking oil scarcity.
The implementation of the B35 mix has significantly boosted palm oil consumption for biodiesel, and the upcoming B40 mandate is expected to drive demand even higher. More The IndependentSG
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Rich countries ‘energy transition’ won’t work for developing nations, says Indonesian government
Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan said that the economies of developing countries must still grow, while they pursued emissions reduction.
JAKARTA – The government has reiterated that it will pursue the energy transition at its own pace and in ways that match the country’s economic goals and fiscal ability, stressing that the strategies of advanced economies will not work for developing countries.
Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan said the economies of developing countries must still grow, while they pursued emissions reduction.
He also stressed that the world could not rely on certain technologies in pursuing global emissions reduction.
“We need to avoid being dogmatic about one technology in carbon emissions reduction,” Luhut said during the Indonesia International Sustainability Forum (IISF) in Jakarta on Thursday.
Luhut went on to say that Indonesia would involve the development of the green economy as part of its push toward energy transition.
He cited cooperation with Singapore in developing a solar panel manufacturing industry in exchange for exporting low-emission electricity to the city state. Singapore has approved the import of 3.4 gigawatts of electricity from Indonesia as of Thursday.
Luhut also boasted of the country’s push into electric vehicle (EV) manufacturing and EV adoption among Indonesians.
Moreover, Luhut is also eyeing boosting the country’s biofuel production, particularly from existing sources of crude palm oil and later exploring the use of seaweed, which it has in abundance. More Asia News Network/ The Jakarta Post
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Export compliance: TCB registering coffee farmers
THE Tanzania Coffee Board (TCB) is proceeding with a comprehensive re-registration of all coffee farmers across the 17 coffee-producing regions, following new market conditions set out by the European Union (EU)
Primus Kimaryo, the TCB director general, said in a statement here at the weekend that the EU market, which purchases 50 percent of Tanzania’s coffee, now requires that all exported coffee be certified as not contributing to environmental harm.
All crops exported to EU countries need to be free from links to environmental destruction, he said, noting that compliance is vital to ensure the country maintain access to EU markets.
The requirement covers coffee, soybeans, timber, rubber, palm oil and cacao, where re-registration involves farmers presenting identification, their photos taken and providing detailed information about their farms, the duration of their coffee cultivation and specific farming practices, he said.
This information will help to demonstrate that Tanzanian coffee is produced sustainably and does not result in environmental damage, he said, requesting full cooperation from district councils in coffee-growing regions to facilitate re-registration.
Underlining the urgency of the matter, he said that starting early next year, all crops exported to the EU must be certified as deforestation-free, while the Agriculture ministry checks with the EU on regulations on pesticide use, seed types or availability and other farming practices.
“I urge farmers to view this registration as a vital step to maintain access to the EU market,” he said, affirming that the exercise commences this month in Kagera Region, where over 40 percent of local coffee originates.
“We will then proceed to the Songwe and Ruvuma regions, followed by Kilimanjaro, Manyara and Arusha. Other regions will be covered subsequently, based on market conditions,” he elaborated. More IPP Media
September 08, 2024
Indonesia warns of ‘chaos’ from EU deforestation law
Pressure builds on Brussels to delay implementation of new rules that industry says will impose administrative burden
Indonesian palm oil producers have warned of global supply chain disruption if the EU proceeds with a ban on the import of commodities linked to deforestation this year.
Indonesia is the world’s biggest palm oil producer. The EU Deforestation Regulation, which is set to come into force on December 30, requires importers of cattle, cocoa, coffee, oil palm, rubber, soya and wood to ensure products entering the EU have not caused deforestation or forest degradation. Compliance requires extensive data collection.
“There will be chaos if implemented,” Eddy Martono, chair of the Indonesian Palm Oil Association, told the Financial Times. “The lack of meaningful consultation between EU policymakers and their trading partners has resulted in widespread uncertainty over how this regulation will be implemented.” The industry trade group chair urged the EU to postpone implementation of the law until 2026.
Martono’s complaints come as calls to delay implementation have escalated. Commodities producers in south-east Asia, Latin America and the US allege the new rules amount to a trade barrier, while some EU member states oppose the law because of the administrative burden it places on importers.
“Prices will increase and supply will decrease, not just from Indonesia, even from Malaysia,” he said. Between them, Indonesia and Malaysia account for nearly 90 per cent of the total supply of palm oil, the world’s most consumed edible oil. Global cocoa and coffee prices have already jumped in recent weeks amid supply fears, in part linked to the EUDR.
Industries that rely on palm oil, such as cosmetics, oleochemicals and pharmaceutical industries, will suffer, Martono said. Palm oil is used in everything from pizza and lipstick to chocolate.
If the law comes into force at the end of the year, Indonesia’s shipments to the EU could fall 30 per cent, he said. Indonesian producers shipped 4mn tonnes of palm oil to the EU in 2023.
Malaysia, the world’s second-largest palm oil producer, has also warned of potential disruption to the supply chain. Compliance is difficult because of the complex nature of palm oil traceability, Belvinder Kaur, chief executive of the Malaysian Palm Oil Council, told the FT.
“For instance, a single sales order of one product could involve multiple batches from refineries, mills and plantations, resulting in millions of data points for a single shipment,” she said. “This presents significant challenges for exporters, operators and competent authorities during the due diligence and auditing process.
“The EU has not sufficiently addressed these complexities,” she added.
Smaller producers face the biggest challenge with compliance, said Kaur. “Small farmers continue to face difficulties meeting EUDR requirements, which will add significant administrative burdens More FT
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ASEAN Plays Key Role in Global Decarbonization
ASIATODAY.ID, JAKARTA – ASEAN is blessed with abundant natural resources which are very important for global decarbonization efforts. This positions Southeast Asia as a key player in the global energy transition.
As a country in ASEAN, Indonesia has long been an energy exporter, supplying coal and natural gas throughout the world. However, as the world shifts towards a low-carbon future, Indonesia must also shift to becoming a major exporter of renewable energy.
Indonesia’s Coordinating Minister for Maritime Affairs and Investment, Luhut B. Pandjaitan, explained that one of the renewable energies that has great potential for Indonesia is solar power, which is estimated at around 3,300 GW.
“This is not only to decarbonize Indonesia but also to contribute to the global energy transition,” said Luhut when speaking at the Thematic Session “Decarbonisation opportunities in ASEAN” at the 2024 Indonesia International Sustainability Forum in Jakarta on Friday, September 6 2024.
Luhut explained that Indonesia had also collaborated with Singapore in green electricity trade.
“This will open up investment of around US$ 30-50 billion in solar power generation and solar photovoltaic (PV) manufacturing,” explained Luhut.
In the transportation sector, Indonesia has launched several incentive programs for electric vehicles. Between 2022 and 2024, Indonesia doubles sales of battery electric vehicles (BEVs), attracting around US$10 billion in investment.
In addition, as the world’s largest producer of Crude Palm Oil (CPO) and abundant seaweed production, Indonesia has significant opportunities to explore biofuel production.
“Our vast landscape offers significant potential for nature-based carbon sinks, with the ability to reduce up to 1,860 MtCO2e through large-scale forest rehabilitation programs and a storage capacity of 400 Gigatons for Carbon Capture Storage (CCS),” added Luhut.
Despite the various natural potentials that exist, Luhut said, Indonesia cannot carry out these decarbonization efforts alone.
“Collaboration is essential to ensure that the necessary technology is accessible, which drives sustainable development across the region and that substantial investment is available to fund this decarbonization initiative,” stressed Luhut. (AT Network)
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Over 17 Lakh Saplings Planted during Mega Oil Palm Plantation Drive 2024 Benefiting 10,000 Farmers under National Mission on Edible Oil-OilPalm
National Mission for Edible Oils – Oil Palm aims to expand oil palm cultivation and boost Crude Palm Oil production by setting up a value chain ecosystem for development of Oil Palm sector
Over 17 lakh oil palm saplings, covering more than 12,000 hectares across 15 states in India benefitting over 10,000 farmers were undertaken as part of Mega Oil Palm Plantation Drive conducted under National Mission on Edible Oil-OilPalm. The Drive, launched on July 15, 2024, has achieved a significant milestone by planting demonstrating the collective efforts of Government of India, state governments and oil palm processing companies towards expanding oil palm cultivation in the country.
The drive, which will continue until September 15, 2024, has witnessed enthusiastic participation from states including Andhra Pradesh, Chhattisgarh, Goa, Gujarat, Karnataka, Kerala, Odisha, Tamil Nadu, Telangana, Arunachal Pradesh, Assam, Manipur, Mizoram, Nagaland, and Tripura.
Organized by state governments in collaboration with leading oil palm processing companies such as Patanjali Food Pvt. Ltd., Godrej Agrovet and 3F Oil Palm Ltd., the initiative has featured numerous awareness workshops, plantation campaigns, and promotional events. These activities have successfully raised awareness and engaged the farming community, further supported by the presence of key dignitaries and political leaders who have underscored the importance of this mission. More PIB.GOV.IN
Indonesia warns of ‘chaos’ from EU deforestation law
Pressure builds on Brussels to delay implementation of new rules that industry says will impose administrative burden
Indonesian palm oil producers have warned of global supply chain disruption if the EU proceeds with a ban on the import of commodities linked to deforestation this year.
Indonesia is the world’s biggest palm oil producer. The EU Deforestation Regulation, which is set to come into force on December 30, requires importers of cattle, cocoa, coffee, oil palm, rubber, soya and wood to ensure products entering the EU have not caused deforestation or forest degradation. Compliance requires extensive data collection.
“There will be chaos if implemented,” Eddy Martono, chair of the Indonesian Palm Oil Association, told the Financial Times. “The lack of meaningful consultation between EU policymakers and their trading partners has resulted in widespread uncertainty over how this regulation will be implemented.” The industry trade group chair urged the EU to postpone implementation of the law until 2026.
Martono’s complaints come as calls to delay implementation have escalated. Commodities producers in south-east Asia, Latin America and the US allege the new rules amount to a trade barrier, while some EU member states oppose the law because of the administrative burden it places on importers.
“Prices will increase and supply will decrease, not just from Indonesia, even from Malaysia,” he said. Between them, Indonesia and Malaysia account for nearly 90 per cent of the total supply of palm oil, the world’s most consumed edible oil. Global cocoa and coffee prices have already jumped in recent weeks amid supply fears, in part linked to the EUDR.
Industries that rely on palm oil, such as cosmetics, oleochemicals and pharmaceutical industries, will suffer, Martono said. Palm oil is used in everything from pizza and lipstick to chocolate.
If the law comes into force at the end of the year, Indonesia’s shipments to the EU could fall 30 per cent, he said. Indonesian producers shipped 4mn tonnes of palm oil to the EU in 2023.
Malaysia, the world’s second-largest palm oil producer, has also warned of potential disruption to the supply chain. Compliance is difficult because of the complex nature of palm oil traceability, Belvinder Kaur, chief executive of the Malaysian Palm Oil Council, told the FT.
“For instance, a single sales order of one product could involve multiple batches from refineries, mills and plantations, resulting in millions of data points for a single shipment,” she said. “This presents significant challenges for exporters, operators and competent authorities during the due diligence and auditing process.
“The EU has not sufficiently addressed these complexities,” she added.
Smaller producers face the biggest challenge with compliance, said Kaur. “Small farmers continue to face difficulties meeting EUDR requirements, which will add significant administrative burdens More FT
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ASEAN Plays Key Role in Global Decarbonization
ASIATODAY.ID, JAKARTA – ASEAN is blessed with abundant natural resources which are very important for global decarbonization efforts. This positions Southeast Asia as a key player in the global energy transition.
As a country in ASEAN, Indonesia has long been an energy exporter, supplying coal and natural gas throughout the world. However, as the world shifts towards a low-carbon future, Indonesia must also shift to becoming a major exporter of renewable energy.
Indonesia’s Coordinating Minister for Maritime Affairs and Investment, Luhut B. Pandjaitan, explained that one of the renewable energies that has great potential for Indonesia is solar power, which is estimated at around 3,300 GW.
“This is not only to decarbonize Indonesia but also to contribute to the global energy transition,” said Luhut when speaking at the Thematic Session “Decarbonisation opportunities in ASEAN” at the 2024 Indonesia International Sustainability Forum in Jakarta on Friday, September 6 2024.
Luhut explained that Indonesia had also collaborated with Singapore in green electricity trade.
“This will open up investment of around US$ 30-50 billion in solar power generation and solar photovoltaic (PV) manufacturing,” explained Luhut.
In the transportation sector, Indonesia has launched several incentive programs for electric vehicles. Between 2022 and 2024, Indonesia doubles sales of battery electric vehicles (BEVs), attracting around US$10 billion in investment.
In addition, as the world’s largest producer of Crude Palm Oil (CPO) and abundant seaweed production, Indonesia has significant opportunities to explore biofuel production.
“Our vast landscape offers significant potential for nature-based carbon sinks, with the ability to reduce up to 1,860 MtCO2e through large-scale forest rehabilitation programs and a storage capacity of 400 Gigatons for Carbon Capture Storage (CCS),” added Luhut.
Despite the various natural potentials that exist, Luhut said, Indonesia cannot carry out these decarbonization efforts alone.
“Collaboration is essential to ensure that the necessary technology is accessible, which drives sustainable development across the region and that substantial investment is available to fund this decarbonization initiative,” stressed Luhut. (AT Network)
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Over 17 Lakh Saplings Planted during Mega Oil Palm Plantation Drive 2024 Benefiting 10,000 Farmers under National Mission on Edible Oil-OilPalm
National Mission for Edible Oils – Oil Palm aims to expand oil palm cultivation and boost Crude Palm Oil production by setting up a value chain ecosystem for development of Oil Palm sector
Over 17 lakh oil palm saplings, covering more than 12,000 hectares across 15 states in India benefitting over 10,000 farmers were undertaken as part of Mega Oil Palm Plantation Drive conducted under National Mission on Edible Oil-OilPalm. The Drive, launched on July 15, 2024, has achieved a significant milestone by planting demonstrating the collective efforts of Government of India, state governments and oil palm processing companies towards expanding oil palm cultivation in the country.
The drive, which will continue until September 15, 2024, has witnessed enthusiastic participation from states including Andhra Pradesh, Chhattisgarh, Goa, Gujarat, Karnataka, Kerala, Odisha, Tamil Nadu, Telangana, Arunachal Pradesh, Assam, Manipur, Mizoram, Nagaland, and Tripura.
Organized by state governments in collaboration with leading oil palm processing companies such as Patanjali Food Pvt. Ltd., Godrej Agrovet and 3F Oil Palm Ltd., the initiative has featured numerous awareness workshops, plantation campaigns, and promotional events. These activities have successfully raised awareness and engaged the farming community, further supported by the presence of key dignitaries and political leaders who have underscored the importance of this mission. More PIB.GOV.IN
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September 07, 2024
Indonesia’s Biodiesel Push Poses Risks to Palm Oil Supply Chain
With production stagnating, Jakarta’s increasing use of palm oil for biodiesel production could lead to shortages in the global market.
As the world’s largest producer of palm oil, Indonesia has sought to capitalize on the commodity’s use as an alternative source of renewable energy through the adoption of biodiesel, a blend of palm oil and fossil fuel-based diesel. The country’s biodiesel policy was first implemented in 2008, starting with a 2.5 percent biodiesel blend (B2.5). Over the years, the proportion of palm oil in the biodiesel blend has gradually increased, with the current mix sitting at 35 percent (B35).
Leveraging its vast palm oil reserves, the country plans to increase the biodiesel blend mandate to 40 percent starting next year. Additionally, President-elect Prabowo Subianto has also set an ambitious target to introduce a B50 biodiesel blend within the next five years, aiming for implementation by 2029.
Indonesia’s biodiesel initiatives aim to reduce its reliance on imported fossil fuels, boost domestic palm oil consumption, and support the agricultural sector. These efforts are also part of the country’s broader strategy to reduce carbon emissions and transition towards renewable energy while promoting both economic and environmental objectives. However, Indonesia’s plan to increase the biodiesel blending ratio in the coming years has raised concerns about the global palm oil supply chain, given the nation’s significant role in the industry.
In 2023, Indonesia produced 46 million tonnes of palm oil, representing 59 percent of the global market. The Indonesia Palm Oil Association (GAPKI) reported that out of 23.2 million tonnes of domestic consumption last year, 45.9 percent was used for biodiesel, followed by 44.4 percent for food, and 9.7 percent for oleochemicals, such as cosmetics, household, and industrial products. This marked the first time that biodiesel consumption of palm oil surpassed its use for food, raising alarms about food security, especially given the cooking oil scarcity experienced in 2022.
GAPKI noted that the implementation of the B35 mix has increased palm oil consumption for biodiesel by 17.68 percent, from 9.048 million tons in 2022 to 10.65 million tons in 2023. With the B40 mandate set to begin next year, the Indonesia Biofuel Producer Association expects it will drive up crude palm oil (CPO) consumption further to 14 million tonnes for biodiesel.
Despite assurances from the Ministry of Agriculture that it will maintain adequate supply while handling the increase of the biodiesel mandate,concerns persist that the rise in production figures has not kept pace with growing consumption.
While the government has been pushing to increase domestic CPO consumption through biodiesel blends over the past few years, Statistics Indonesia (BPS) showed that the country’s palm oil production remained relatively stagnant with only less than 1 percent annual growth since 2020. Last year’s production outputs were also still lower than the 47.1 million tonnes produced in 2019, the last full year before the COVID-19 pandemic. The Diplomat
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Op-ed. Indonesia’s New President Will Be Active On The World Stage
When Prabowo Subianto Djojohadikusumo is sworn in as Indonesia’s eighth president, the southeast Asian archipelago nation, with the world’s fourth largest population, stands ready to expand its role on the world stage.
This leadership strategy is part of a plan to accomplish his primary goals: food security, a modern economy, and a strong military.
Just since February, Prabowo has traveled to China, Japan, Russia, Jordan, Turkey, and France, among other nations, on over a dozen overseas trips. He has offered to be a peacemaker to help end international conflicts in both Ukraine and Gaza. As a candidate, he called out the West for its “double standards” in the conflict, in contrast to the Russia-Ukraine war.
During January’s presidential debate, Prabowo first emphasized national defense, adding that, while his country is very large and very rich, “…for hundreds of years countries from far away came to this archipelago to intervene, to interfere, to bring conflict, and to steal our wealth.”
As an example of Western double standards targeting Indonesia even today, Prabowo cited the World Trade Organization’s (WTO) 2020 ban on exports of Indonesian nickel and the European Union’s (EU) ban on imports of Indonesian palm oil commodities.
Prabowo said last November, “We open our market to you (for Mercedes Benz and Volkswagen, for example), but you won’t allow us to sell palm oil, and now we have problems trying to sell coffee, tea, and cocoa.” The irony, he said, is that Europeans long ago forced the ‘Dutch East Indies’ to cut down forests to plant tea, coffee, cocoa, and rubber while taking most of the wealth produced for themselves.” Duggan Flanakin for Eurasia Review
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Uruguay welcomes Argentina's support to Mercosur countries negotiating solo if necessary
The Uruguayan Government of President Luis Lacalle Pou has found in Javier Milei's Argentina the partner it longed for within the Southern Common Market to clear the way for individual members of the bloc to seek unilateral trade alliances with other countries or regional alliances. In this scenario, Foreign Minister Omar Paganini Wednesday welcomed Buenos Aires' endorsement to make Mercosur more flexible.
“We have been working with Argentina on these issues. In this sense, Uruguay has already expressed since the beginning of our administration the desire for Mercosur to become more open, to generate more trade agreements with the world”, said Paganini after a meeting of the bloc's top diplomats. In Paganini's view, Mercosur is moving towards greater openness, as he welcomed Argentina's stance in favor of making the bloc more flexible. “We are taking steps towards greater openness,” he insisted. “Mercosur should open up more, that it should generate more trade agreements with the world,” he also noted.
Under Lacalle Pou, Montevideo has insisted that if expanding businesses under the Mercosur umbrella was not feasible, then it should be pursued “individually or with the countries that can,” Paganini also explained. However, “it is always better to go all together,” he admitted. Regarding the possibility of an effective free gtrade agreement between the European Union and Mercour, Paganini underlined that “hopefully there will now be a green light or white smoke.” The EU-Mercosur FTA negotiated for more than two decades and signed in 2019 is still to be ratified after several parliaments in Europe objected to some of its provisions, particularly those linked to environmentally-friendly production regulations.
“Argentina has expressed its agreement with this position in the sense of flexibility,” he added. “Of course, we also have to get the other partners to be flexible,” he also pointed out with Brazil, Paraguay, and Bolivia in mind. Brazil and Paraguay still expect to discuss the issue at the next Mercosur summit in December. Before then, “progress must be made,” Paganini insisted.
In Buenos Aires, Foreign Minister Diana Mondino said in a statement that during Monday's gathering in Montevideo at the request of Uruguay, who currently holds the bloc's rotating presidency, “a proposal for the sequential application of different, more flexible negotiation modalities with third countries or groups of countries” had been put forward. “Argentina then proposes that those members of the bloc willing to open new markets be allowed to initiate negotiations individually or plurilaterally,” the San Martín Palace went on while addressing the possibility of “a proposal for the sequential application of different negotiation modalities, more flexible, with third countries or groups of countries.” Mondino also pointed out that “negotiations may begin under this third modality, and the Agreements that are signed will be open to accession by the other States Parties.” Merco Press
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For Indonesian oil palm farmers, EU’s deforestation law is another top-down imposition
Dyna Rochmyaningsih
LUBOK PUSAKA, Indonesia — Jaharuddin, 50, sits deep in thought in his living room in Lubok Pusaka village, in Indonesia’s Aceh province, smoking a cigarette and staring out the door. On his porch, piles of corn he harvested two before lie scattered, waiting to be sold.
For decades, corn has been Jaharuddin’s main source of income. But lately he’s struggled to find a buyer. After his previous harvest, just a month ago, he failed to sell any corn locally. He finally managed to sell some in Langsa, a city about three and a half hours by car from his village, for just 1,200 rupiah (8 U.S. cents) per ear. “Sometimes, I was so desperate to sell it and told the buyers to give whatever price they want.”
“That’s why I’m putting my hope on oil palm now,” he said. Like many farmers in the province’s North Aceh district, Jaharuddin sees oil palm as the most promising commodity. Compared to other crops, he said, it has the most stable price, is easy to grow, and is constantly in demand. “It’s the safest zone for us,” says Jaharuddin, who from 2013-2019 served as chief of his village.
For decades, he made a living growing corn and cacao on his 8 hectares (20 acres) of land. But since 2018, when his cacao trees failed to bear fruit and his corn could hardly sell, he started to cultivate oil palms. Nearly half of them have started fruiting, earning enough to reliably cover his daily needs even as his corn and cacao business plummets. “Even though it’s a small amount of money, at least it will always come to me.”
Like many oil palm farmers in Indonesia, Jaharuddin says he’s unaware that in less than five months, his farm could be affected by a law ratified on the other side of the world.
What he knows is that middlemen will always come to pick up his oil palm harvests. But how much he will earn will largely depend on something outside his control: the impact of a new European law on the demand for palm oil from smallholders.
Plantations vs. protected areas
In North Aceh, economic needs meet one of nature’s last frontiers. Trucks loaded with oil palm fruit down the dusty roads, while on the horizon oil palm trees extend like a canopy of stars toward the misty hills of the Leuser Ecosystem, the largest remaining tract of primary forest in Sumatra. Since the 1990s, oil palm expansion has eaten away at this forest, famed as the last place on Earth where critically endangered Sumatran tigers, elephants, rhinos and orangutans coexist in the wild. The commodity has, in tandem, become an increasingly crucial source of income for the people who live here, both rich and poor.
In 2022, the European Union lawmakers ratified a law intended to minimize this kind of agriculture-driven deforestation: the EU Regulation on Deforestation Free Products, or EUDR. As of the end of this year, exporters of products derived from rubber, coffee, cacao, cattle, wood, soy and oil palm need to provide geolocation tags proving crops did not come from areas that have been deforested since 2020. They also need to do their due diligence to ensure their supply chains are free from human rights violations and environmental problems. More Mongabay
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South Korea Launches New SAF Expansion Strategy
South Korea's government has finally revealed its plans for a 1% sustainable aviation fuel (SAF) blending mandate for all departing international flights from 2027. The mandate will coincide with tax breaks and other incentives that encourage producers to boost SAF production for domestic purchases and ramping up SAF exports. The new SAF Expansion Strategy was launched the same day that domestic refiner S-Oil began supplying the first Korean-made SAF to flag carrier Korean Air at Seoul's Incheon Airport. S-Oil’s SAF will be used on weekly flights to Tokyo's Narita airport in Japan for the next six months. Refinery giant SK Energy is also expected to start supplying Korean-made SAF to the airport next year.
Domestic Milestone
Korean Air celebrated with a special Aug. 30 ceremony at Incheon’s Terminal 2, attended by government ministers as well as aviation stakeholders. The flag carrier confirmed it would be using a 1% domestic SAF blend on weekly flight KE719 from Incheon to Narita from now until at least July next year. It said S-Oil would supply the low-carbon aviation fuel until January, before Korea's largest refinery, SK Energy, takes over SAF deliveries at Incheon. Korean Air has been using foreign-made SAF on some incoming flights to Incheon since 2017, including on routes from Chicago, Oslo, Stockholm and Paris. It has also been buying SAF imported by local trader GS Caltex at Incheon since earlier this year, but this marks the first time it has used domestically produced SAF for commercial flights.
"S-Oil is responding actively to transform itself into a clean energy supplier that aligns itself with global decarbonization trends and contributes to building a resource-circular economy," said the Chief Executive of South Korea’s third-largest refinery, Anwar al-Hejazi, at the Aug. 30 event to mark the start of domestic SAF deliveries. S-Oil has been making SAF by coprocessing used cooking oil (UCO), palm byproducts and plastic-based pyrolysis oil at its giant 669,000 barrel per day Ulsan refinery since January. In April, it gained the necessary Corsia and EU certifications for commercial trading. The company is 63.4% owned by Saudi Aramco and is now looking at building a dedicated SAF production facility in Ulsan. Rival SK Energy is also coprocessing UCO and other waste fats at its 840,000 b/d Ulsan megarefinery. More Energy Intelligence
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Telangana Minister Seeks ₹15,000 Per Tonne Price for Palm Oil from Centre
Hyderabad: Agriculture minister Tummala Nageswara Rao met Union agriculture minister Shivraj Singh Chouhan with a plea to set the price per tonne of palm oil at `15,000, and establishment of a regional coconut development board in Bhadradri Kothagudem district. In a release, the ministry informed that said that Nageswara Rao laso sought the setting up of a centre of excellence for tribal welfare and organic farming in Aswaraopeta. Chouhan was in the state to inspect crop damage due to the recent heavy rain. Nageswara Rao said the price of oil palm had fallen from `20,000 per tonne owing to removal of custom duty to `12,000. This price was not remunerative for farmers. Deccan Chronicle
Indonesia’s Biodiesel Push Poses Risks to Palm Oil Supply Chain
With production stagnating, Jakarta’s increasing use of palm oil for biodiesel production could lead to shortages in the global market.
As the world’s largest producer of palm oil, Indonesia has sought to capitalize on the commodity’s use as an alternative source of renewable energy through the adoption of biodiesel, a blend of palm oil and fossil fuel-based diesel. The country’s biodiesel policy was first implemented in 2008, starting with a 2.5 percent biodiesel blend (B2.5). Over the years, the proportion of palm oil in the biodiesel blend has gradually increased, with the current mix sitting at 35 percent (B35).
Leveraging its vast palm oil reserves, the country plans to increase the biodiesel blend mandate to 40 percent starting next year. Additionally, President-elect Prabowo Subianto has also set an ambitious target to introduce a B50 biodiesel blend within the next five years, aiming for implementation by 2029.
Indonesia’s biodiesel initiatives aim to reduce its reliance on imported fossil fuels, boost domestic palm oil consumption, and support the agricultural sector. These efforts are also part of the country’s broader strategy to reduce carbon emissions and transition towards renewable energy while promoting both economic and environmental objectives. However, Indonesia’s plan to increase the biodiesel blending ratio in the coming years has raised concerns about the global palm oil supply chain, given the nation’s significant role in the industry.
In 2023, Indonesia produced 46 million tonnes of palm oil, representing 59 percent of the global market. The Indonesia Palm Oil Association (GAPKI) reported that out of 23.2 million tonnes of domestic consumption last year, 45.9 percent was used for biodiesel, followed by 44.4 percent for food, and 9.7 percent for oleochemicals, such as cosmetics, household, and industrial products. This marked the first time that biodiesel consumption of palm oil surpassed its use for food, raising alarms about food security, especially given the cooking oil scarcity experienced in 2022.
GAPKI noted that the implementation of the B35 mix has increased palm oil consumption for biodiesel by 17.68 percent, from 9.048 million tons in 2022 to 10.65 million tons in 2023. With the B40 mandate set to begin next year, the Indonesia Biofuel Producer Association expects it will drive up crude palm oil (CPO) consumption further to 14 million tonnes for biodiesel.
Despite assurances from the Ministry of Agriculture that it will maintain adequate supply while handling the increase of the biodiesel mandate,concerns persist that the rise in production figures has not kept pace with growing consumption.
While the government has been pushing to increase domestic CPO consumption through biodiesel blends over the past few years, Statistics Indonesia (BPS) showed that the country’s palm oil production remained relatively stagnant with only less than 1 percent annual growth since 2020. Last year’s production outputs were also still lower than the 47.1 million tonnes produced in 2019, the last full year before the COVID-19 pandemic. The Diplomat
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Op-ed. Indonesia’s New President Will Be Active On The World Stage
When Prabowo Subianto Djojohadikusumo is sworn in as Indonesia’s eighth president, the southeast Asian archipelago nation, with the world’s fourth largest population, stands ready to expand its role on the world stage.
This leadership strategy is part of a plan to accomplish his primary goals: food security, a modern economy, and a strong military.
Just since February, Prabowo has traveled to China, Japan, Russia, Jordan, Turkey, and France, among other nations, on over a dozen overseas trips. He has offered to be a peacemaker to help end international conflicts in both Ukraine and Gaza. As a candidate, he called out the West for its “double standards” in the conflict, in contrast to the Russia-Ukraine war.
During January’s presidential debate, Prabowo first emphasized national defense, adding that, while his country is very large and very rich, “…for hundreds of years countries from far away came to this archipelago to intervene, to interfere, to bring conflict, and to steal our wealth.”
As an example of Western double standards targeting Indonesia even today, Prabowo cited the World Trade Organization’s (WTO) 2020 ban on exports of Indonesian nickel and the European Union’s (EU) ban on imports of Indonesian palm oil commodities.
Prabowo said last November, “We open our market to you (for Mercedes Benz and Volkswagen, for example), but you won’t allow us to sell palm oil, and now we have problems trying to sell coffee, tea, and cocoa.” The irony, he said, is that Europeans long ago forced the ‘Dutch East Indies’ to cut down forests to plant tea, coffee, cocoa, and rubber while taking most of the wealth produced for themselves.” Duggan Flanakin for Eurasia Review
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Uruguay welcomes Argentina's support to Mercosur countries negotiating solo if necessary
The Uruguayan Government of President Luis Lacalle Pou has found in Javier Milei's Argentina the partner it longed for within the Southern Common Market to clear the way for individual members of the bloc to seek unilateral trade alliances with other countries or regional alliances. In this scenario, Foreign Minister Omar Paganini Wednesday welcomed Buenos Aires' endorsement to make Mercosur more flexible.
“We have been working with Argentina on these issues. In this sense, Uruguay has already expressed since the beginning of our administration the desire for Mercosur to become more open, to generate more trade agreements with the world”, said Paganini after a meeting of the bloc's top diplomats. In Paganini's view, Mercosur is moving towards greater openness, as he welcomed Argentina's stance in favor of making the bloc more flexible. “We are taking steps towards greater openness,” he insisted. “Mercosur should open up more, that it should generate more trade agreements with the world,” he also noted.
Under Lacalle Pou, Montevideo has insisted that if expanding businesses under the Mercosur umbrella was not feasible, then it should be pursued “individually or with the countries that can,” Paganini also explained. However, “it is always better to go all together,” he admitted. Regarding the possibility of an effective free gtrade agreement between the European Union and Mercour, Paganini underlined that “hopefully there will now be a green light or white smoke.” The EU-Mercosur FTA negotiated for more than two decades and signed in 2019 is still to be ratified after several parliaments in Europe objected to some of its provisions, particularly those linked to environmentally-friendly production regulations.
“Argentina has expressed its agreement with this position in the sense of flexibility,” he added. “Of course, we also have to get the other partners to be flexible,” he also pointed out with Brazil, Paraguay, and Bolivia in mind. Brazil and Paraguay still expect to discuss the issue at the next Mercosur summit in December. Before then, “progress must be made,” Paganini insisted.
In Buenos Aires, Foreign Minister Diana Mondino said in a statement that during Monday's gathering in Montevideo at the request of Uruguay, who currently holds the bloc's rotating presidency, “a proposal for the sequential application of different, more flexible negotiation modalities with third countries or groups of countries” had been put forward. “Argentina then proposes that those members of the bloc willing to open new markets be allowed to initiate negotiations individually or plurilaterally,” the San Martín Palace went on while addressing the possibility of “a proposal for the sequential application of different negotiation modalities, more flexible, with third countries or groups of countries.” Mondino also pointed out that “negotiations may begin under this third modality, and the Agreements that are signed will be open to accession by the other States Parties.” Merco Press
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For Indonesian oil palm farmers, EU’s deforestation law is another top-down imposition
Dyna Rochmyaningsih
LUBOK PUSAKA, Indonesia — Jaharuddin, 50, sits deep in thought in his living room in Lubok Pusaka village, in Indonesia’s Aceh province, smoking a cigarette and staring out the door. On his porch, piles of corn he harvested two before lie scattered, waiting to be sold.
For decades, corn has been Jaharuddin’s main source of income. But lately he’s struggled to find a buyer. After his previous harvest, just a month ago, he failed to sell any corn locally. He finally managed to sell some in Langsa, a city about three and a half hours by car from his village, for just 1,200 rupiah (8 U.S. cents) per ear. “Sometimes, I was so desperate to sell it and told the buyers to give whatever price they want.”
“That’s why I’m putting my hope on oil palm now,” he said. Like many farmers in the province’s North Aceh district, Jaharuddin sees oil palm as the most promising commodity. Compared to other crops, he said, it has the most stable price, is easy to grow, and is constantly in demand. “It’s the safest zone for us,” says Jaharuddin, who from 2013-2019 served as chief of his village.
For decades, he made a living growing corn and cacao on his 8 hectares (20 acres) of land. But since 2018, when his cacao trees failed to bear fruit and his corn could hardly sell, he started to cultivate oil palms. Nearly half of them have started fruiting, earning enough to reliably cover his daily needs even as his corn and cacao business plummets. “Even though it’s a small amount of money, at least it will always come to me.”
Like many oil palm farmers in Indonesia, Jaharuddin says he’s unaware that in less than five months, his farm could be affected by a law ratified on the other side of the world.
What he knows is that middlemen will always come to pick up his oil palm harvests. But how much he will earn will largely depend on something outside his control: the impact of a new European law on the demand for palm oil from smallholders.
Plantations vs. protected areas
In North Aceh, economic needs meet one of nature’s last frontiers. Trucks loaded with oil palm fruit down the dusty roads, while on the horizon oil palm trees extend like a canopy of stars toward the misty hills of the Leuser Ecosystem, the largest remaining tract of primary forest in Sumatra. Since the 1990s, oil palm expansion has eaten away at this forest, famed as the last place on Earth where critically endangered Sumatran tigers, elephants, rhinos and orangutans coexist in the wild. The commodity has, in tandem, become an increasingly crucial source of income for the people who live here, both rich and poor.
In 2022, the European Union lawmakers ratified a law intended to minimize this kind of agriculture-driven deforestation: the EU Regulation on Deforestation Free Products, or EUDR. As of the end of this year, exporters of products derived from rubber, coffee, cacao, cattle, wood, soy and oil palm need to provide geolocation tags proving crops did not come from areas that have been deforested since 2020. They also need to do their due diligence to ensure their supply chains are free from human rights violations and environmental problems. More Mongabay
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South Korea Launches New SAF Expansion Strategy
South Korea's government has finally revealed its plans for a 1% sustainable aviation fuel (SAF) blending mandate for all departing international flights from 2027. The mandate will coincide with tax breaks and other incentives that encourage producers to boost SAF production for domestic purchases and ramping up SAF exports. The new SAF Expansion Strategy was launched the same day that domestic refiner S-Oil began supplying the first Korean-made SAF to flag carrier Korean Air at Seoul's Incheon Airport. S-Oil’s SAF will be used on weekly flights to Tokyo's Narita airport in Japan for the next six months. Refinery giant SK Energy is also expected to start supplying Korean-made SAF to the airport next year.
Domestic Milestone
Korean Air celebrated with a special Aug. 30 ceremony at Incheon’s Terminal 2, attended by government ministers as well as aviation stakeholders. The flag carrier confirmed it would be using a 1% domestic SAF blend on weekly flight KE719 from Incheon to Narita from now until at least July next year. It said S-Oil would supply the low-carbon aviation fuel until January, before Korea's largest refinery, SK Energy, takes over SAF deliveries at Incheon. Korean Air has been using foreign-made SAF on some incoming flights to Incheon since 2017, including on routes from Chicago, Oslo, Stockholm and Paris. It has also been buying SAF imported by local trader GS Caltex at Incheon since earlier this year, but this marks the first time it has used domestically produced SAF for commercial flights.
"S-Oil is responding actively to transform itself into a clean energy supplier that aligns itself with global decarbonization trends and contributes to building a resource-circular economy," said the Chief Executive of South Korea’s third-largest refinery, Anwar al-Hejazi, at the Aug. 30 event to mark the start of domestic SAF deliveries. S-Oil has been making SAF by coprocessing used cooking oil (UCO), palm byproducts and plastic-based pyrolysis oil at its giant 669,000 barrel per day Ulsan refinery since January. In April, it gained the necessary Corsia and EU certifications for commercial trading. The company is 63.4% owned by Saudi Aramco and is now looking at building a dedicated SAF production facility in Ulsan. Rival SK Energy is also coprocessing UCO and other waste fats at its 840,000 b/d Ulsan megarefinery. More Energy Intelligence
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Telangana Minister Seeks ₹15,000 Per Tonne Price for Palm Oil from Centre
Hyderabad: Agriculture minister Tummala Nageswara Rao met Union agriculture minister Shivraj Singh Chouhan with a plea to set the price per tonne of palm oil at `15,000, and establishment of a regional coconut development board in Bhadradri Kothagudem district. In a release, the ministry informed that said that Nageswara Rao laso sought the setting up of a centre of excellence for tribal welfare and organic farming in Aswaraopeta. Chouhan was in the state to inspect crop damage due to the recent heavy rain. Nageswara Rao said the price of oil palm had fallen from `20,000 per tonne owing to removal of custom duty to `12,000. This price was not remunerative for farmers. Deccan Chronicle
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September 06, 2024
Eleven EU countries push for conclusion of Mercosur trade deal
Eleven EU members have launched a fresh bid to conclude a blockbuster trade deal with Latin America held up by French objections, writes Andy Bounds.
Context: Negotiators for the EU-Mercosur deal are meeting face-to-face for the first time in five months in Brasília as the European Commission pushes to finalise it this year. The long-delayed pact with Brazil, Argentina, Uruguay and Paraguay (plus new member Bolivia) was agreed in principle in 2019.
Now a cross-party group of leaders including Olaf Scholz of Germany, Ulf Kristersson of Sweden and Luís Montenegro of Portugal have sent a letter to commission president Ursula von der Leyen urging her to seal the deal.
“Given the context of growing geopolitical tensions, it is all the more of the essence to develop robust international alliances,” they write in the letter seen by the Financial Times, adding that “our credibility is at stake”.
They warn of Europe’s growing loss of influence in Latin America — without naming China — and point towards their “shared values” and “historical links”.
“Without the conclusion of the agreement, other powers would gain an even stronger influence on Latin American markets, both economically and politically. Over the past 10 years, European companies lost 15 per cent market shares on average in the region.”
The conclusion of the deal was delayed by EU concerns over the Amazon, with governments demanding an additional instrument toughening sustainability criteria.
Even as those concerns were being resolved, French President Emmanuel Macron blocked progress following large-scale farmers’ protests, partly incensed by fear of cheaper food imports from Mercosur.
Paris remains opposed, and EU farming group Copa-Cogeca this week renewed its attack on the deal.
But while Ireland and the Netherlands have reservations, only Austria has joined France in outright opposition, and they could be outvoted by a majority of the bloc’s 27 governments.
Von der Leyen has said she wants to conclude the deal. It will be an early test of whether she is prepared to overcome the blocks to growth identified by former Italian premier Mario Draghi, who unveils his report on how the EU can close the growing economic gap with China and the US on Monday. FT
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‘Von der Leyen to announce Green Deal changes in coming weeks,’ German MEP says
European Commission President Ursula von der Leyen will announce planned changes to the EU’s Green Deal in the coming weeks, Christian Democratic Union (CDU) MEP Peter Liese has told Brussels Signal.
Speaking with Head of News Justin Stares, Liese said he and his colleagues had been negotiating with the EC President and fellow CDU member in the hope of securing various changes to Europe’s “green” legislation, especially when it comes to the planned 2035 combustion-engine ban.
He also emphasised the need to remove certain bureaucratic elements from European Union’s green regulations, which he said were preventing the bloc from achieving its climate goals.
“We are in intensive talks with Ursula von der Leyen, both personally and with her team, on how to do this,” he said regarding the proposed changes.
“She already announced something in her speech before her election – and there will be very concrete proposals during the next weeks.”
Asked whether any sort of “watering down” of the Green Deal would be possible considering von der Leyen’s reliance on the EU’s Greens/EFA group, Liese said there were at least some MEPs within the faction that understood changes to the legislation needed to be made.
“At least some key players in the Greens group are realistic,” he said. “They understand that we cannot continue like we did the last five years, and their main concern was that the Green Deal would not be completely reverted [reversed].”
“And that, of course, is also not in my interest,” he added.
“There were some voices in the [European] Parliament, including in my group, that wanted to revert the Green Deal. This is not a majority position and definitely not my position, so we can definitely come together with the Greens, but I admit there is some work to be done.”
Liese did express concern that some Green MEPs were “still dreaming about even more burdensome” climate regulations being passed by the European Union despite their decline in backing in the EP elections in June.
“That, of course, we cannot support,” he said.
The full interview with Peter Liese MEP is available on the Brussels Signal website and YouTube channel.
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Joint Statement between the EU and Kenya on the implementation of the EPA
A joint statement published by the European Union and Kenya on the implementation of the Economic Partnership Agreement (EPA).
Joint Press Statement by the European Commission Executive Vice-President and Commissioner for Trade, and the Cabinet Secretary for Investments, Trade and Industry of the Republic of Kenya, to reaffirm their commitment towards the implementation of the EU-Kenya Economic Partnership Agreement.
Brussels-Nairobi
Valdis Dombrovskis, European Commission Executive Vice-President and Commissioner for Trade, and H.E. Salim Mvurya, Cabinet Secretary for Investments, Trade and Industry of the Republic of Kenya, have reiterated their strong support for the implementation of the Economic Partnership Agreement (EPA) between the European Union and the Republic of Kenya, East African Community (EAC).
The EPA represents a significant milestone in the EU-Kenya Strategic Partnership, creating new opportunities to enhance bilateral trade in goods, diversifying exports through the creation of new value chains, boosting investment flows, and strengthening economic relations between the two partners in a sustainable manner. Both the EU and the Government of Kenya are fully committed to the effective implementation of this agreement to ensure that operators and citizens on both sides benefit from its provisions.
This week, senior officials from both the EU and Kenyan government met in Nairobi to discuss the governance rules and structures necessary for the practical implementation of the agreement. These discussions focused on ensuring a robust framework to facilitate communication and cooperation between the two parties. The meeting also centered on trade and sustainable development, reflecting the shared commitment of the EU and Kenya to uphold sustainability principles enshrined in the EPA.
To further harness the benefits of the EPA, a workshop will be held on 6 September 2024 in Nairobi. Representatives from the European Commission and Kenyan authorities will engage with business and civil society groups to explore the numerous opportunities created by the agreement’s implementation. European Commission
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Graphjet finds geopolitical sweet spot in Nevada
Export bans and China–US tension a winning formula for Malaysian graphite firm’s expansion
When China, the world’s biggest graphite producer, introduced tough restrictions on exporting the mineral in December 2023, Graphjet Technology spotted an opportunity. It was time to accelerate its plans to tap into the US.
The Malaysian firm’s patented technology converts biomass into an artificial form of graphite, a key component in electric vehicle (EV) batteries and semiconductors.
“The December announcement was a real surprise. We thought they might introduce the ban, but not until the end of this year or next year,” Graphjet’s CEO, Aiden Lee, told fDi at the Select USA Investment summit in June. “But looking at the opportunity, it’s actually to our company’s advantage.”
Graphite is a missing piece of the US’s EV battery supply chain, relying on China for more than 40% of its graphite demand, according to Statista. Despite government efforts to boost critical mineral industries, no graphite is mined in the country today. Seeing itself to be part of this solution, Graphjet announced plans in April to build a $200m first-of-its-kind artificial graphite plant in Nevada.
Palm oil to batteries
Founded in 2019, the Kuala Lampa-headquartered firm produces artificial graphite from palm kernel shells, a byproduct of the country’s palm oil industry which is the world’s second-biggest after Indonesia. Even in its home market, Graphjet is still in its early stages. Its first plant, in the state of Pahang, will reach industrial-scale production in the third quarter of 2024 and will produce 13,000 tons of graphite per annum by 2026.
Graphjet has a strong business case for investing in the US. At a time when the country is clamping down on investors with ties to China, Mr Lee boasts that Graphjet is “not affiliated with any [entities]” in Asia’s biggest economy. It claims its artificial graphite’s carbon footprint and costs are some 80% less than the traditional form dug out of the ground. And while graphite has thousands of applications, Graphjet’s early ambition is EV batteries in which graphite accounts for more than 90% of the anode. More FDI Intelligence
Eleven EU countries push for conclusion of Mercosur trade deal
Eleven EU members have launched a fresh bid to conclude a blockbuster trade deal with Latin America held up by French objections, writes Andy Bounds.
Context: Negotiators for the EU-Mercosur deal are meeting face-to-face for the first time in five months in Brasília as the European Commission pushes to finalise it this year. The long-delayed pact with Brazil, Argentina, Uruguay and Paraguay (plus new member Bolivia) was agreed in principle in 2019.
Now a cross-party group of leaders including Olaf Scholz of Germany, Ulf Kristersson of Sweden and Luís Montenegro of Portugal have sent a letter to commission president Ursula von der Leyen urging her to seal the deal.
“Given the context of growing geopolitical tensions, it is all the more of the essence to develop robust international alliances,” they write in the letter seen by the Financial Times, adding that “our credibility is at stake”.
They warn of Europe’s growing loss of influence in Latin America — without naming China — and point towards their “shared values” and “historical links”.
“Without the conclusion of the agreement, other powers would gain an even stronger influence on Latin American markets, both economically and politically. Over the past 10 years, European companies lost 15 per cent market shares on average in the region.”
The conclusion of the deal was delayed by EU concerns over the Amazon, with governments demanding an additional instrument toughening sustainability criteria.
Even as those concerns were being resolved, French President Emmanuel Macron blocked progress following large-scale farmers’ protests, partly incensed by fear of cheaper food imports from Mercosur.
Paris remains opposed, and EU farming group Copa-Cogeca this week renewed its attack on the deal.
But while Ireland and the Netherlands have reservations, only Austria has joined France in outright opposition, and they could be outvoted by a majority of the bloc’s 27 governments.
Von der Leyen has said she wants to conclude the deal. It will be an early test of whether she is prepared to overcome the blocks to growth identified by former Italian premier Mario Draghi, who unveils his report on how the EU can close the growing economic gap with China and the US on Monday. FT
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‘Von der Leyen to announce Green Deal changes in coming weeks,’ German MEP says
European Commission President Ursula von der Leyen will announce planned changes to the EU’s Green Deal in the coming weeks, Christian Democratic Union (CDU) MEP Peter Liese has told Brussels Signal.
Speaking with Head of News Justin Stares, Liese said he and his colleagues had been negotiating with the EC President and fellow CDU member in the hope of securing various changes to Europe’s “green” legislation, especially when it comes to the planned 2035 combustion-engine ban.
He also emphasised the need to remove certain bureaucratic elements from European Union’s green regulations, which he said were preventing the bloc from achieving its climate goals.
“We are in intensive talks with Ursula von der Leyen, both personally and with her team, on how to do this,” he said regarding the proposed changes.
“She already announced something in her speech before her election – and there will be very concrete proposals during the next weeks.”
Asked whether any sort of “watering down” of the Green Deal would be possible considering von der Leyen’s reliance on the EU’s Greens/EFA group, Liese said there were at least some MEPs within the faction that understood changes to the legislation needed to be made.
“At least some key players in the Greens group are realistic,” he said. “They understand that we cannot continue like we did the last five years, and their main concern was that the Green Deal would not be completely reverted [reversed].”
“And that, of course, is also not in my interest,” he added.
“There were some voices in the [European] Parliament, including in my group, that wanted to revert the Green Deal. This is not a majority position and definitely not my position, so we can definitely come together with the Greens, but I admit there is some work to be done.”
Liese did express concern that some Green MEPs were “still dreaming about even more burdensome” climate regulations being passed by the European Union despite their decline in backing in the EP elections in June.
“That, of course, we cannot support,” he said.
The full interview with Peter Liese MEP is available on the Brussels Signal website and YouTube channel.
--------
Joint Statement between the EU and Kenya on the implementation of the EPA
A joint statement published by the European Union and Kenya on the implementation of the Economic Partnership Agreement (EPA).
Joint Press Statement by the European Commission Executive Vice-President and Commissioner for Trade, and the Cabinet Secretary for Investments, Trade and Industry of the Republic of Kenya, to reaffirm their commitment towards the implementation of the EU-Kenya Economic Partnership Agreement.
Brussels-Nairobi
Valdis Dombrovskis, European Commission Executive Vice-President and Commissioner for Trade, and H.E. Salim Mvurya, Cabinet Secretary for Investments, Trade and Industry of the Republic of Kenya, have reiterated their strong support for the implementation of the Economic Partnership Agreement (EPA) between the European Union and the Republic of Kenya, East African Community (EAC).
The EPA represents a significant milestone in the EU-Kenya Strategic Partnership, creating new opportunities to enhance bilateral trade in goods, diversifying exports through the creation of new value chains, boosting investment flows, and strengthening economic relations between the two partners in a sustainable manner. Both the EU and the Government of Kenya are fully committed to the effective implementation of this agreement to ensure that operators and citizens on both sides benefit from its provisions.
This week, senior officials from both the EU and Kenyan government met in Nairobi to discuss the governance rules and structures necessary for the practical implementation of the agreement. These discussions focused on ensuring a robust framework to facilitate communication and cooperation between the two parties. The meeting also centered on trade and sustainable development, reflecting the shared commitment of the EU and Kenya to uphold sustainability principles enshrined in the EPA.
To further harness the benefits of the EPA, a workshop will be held on 6 September 2024 in Nairobi. Representatives from the European Commission and Kenyan authorities will engage with business and civil society groups to explore the numerous opportunities created by the agreement’s implementation. European Commission
--------
Graphjet finds geopolitical sweet spot in Nevada
Export bans and China–US tension a winning formula for Malaysian graphite firm’s expansion
When China, the world’s biggest graphite producer, introduced tough restrictions on exporting the mineral in December 2023, Graphjet Technology spotted an opportunity. It was time to accelerate its plans to tap into the US.
The Malaysian firm’s patented technology converts biomass into an artificial form of graphite, a key component in electric vehicle (EV) batteries and semiconductors.
“The December announcement was a real surprise. We thought they might introduce the ban, but not until the end of this year or next year,” Graphjet’s CEO, Aiden Lee, told fDi at the Select USA Investment summit in June. “But looking at the opportunity, it’s actually to our company’s advantage.”
Graphite is a missing piece of the US’s EV battery supply chain, relying on China for more than 40% of its graphite demand, according to Statista. Despite government efforts to boost critical mineral industries, no graphite is mined in the country today. Seeing itself to be part of this solution, Graphjet announced plans in April to build a $200m first-of-its-kind artificial graphite plant in Nevada.
Palm oil to batteries
Founded in 2019, the Kuala Lampa-headquartered firm produces artificial graphite from palm kernel shells, a byproduct of the country’s palm oil industry which is the world’s second-biggest after Indonesia. Even in its home market, Graphjet is still in its early stages. Its first plant, in the state of Pahang, will reach industrial-scale production in the third quarter of 2024 and will produce 13,000 tons of graphite per annum by 2026.
Graphjet has a strong business case for investing in the US. At a time when the country is clamping down on investors with ties to China, Mr Lee boasts that Graphjet is “not affiliated with any [entities]” in Asia’s biggest economy. It claims its artificial graphite’s carbon footprint and costs are some 80% less than the traditional form dug out of the ground. And while graphite has thousands of applications, Graphjet’s early ambition is EV batteries in which graphite accounts for more than 90% of the anode. More FDI Intelligence
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September 05, 2024
Tackling Climate Change Will Be a Pyrrhic Victory If We Lose Sight of the Poor
Opinion by Marco Knowles
Marco Knowles leads the FAO's Social Protection Team
ROME, Sep 03 (IPS) - Urgent climate action is key to eradicating hunger and poverty, but climate mitigation policies can inadvertently exacerbate these issues in rural areas. Countries must design climate strategies that account for the impacts on the rural poor and that include social protection measures.
Last July, we were confronted with alarming statistics: 733 million people experienced hunger in 2023, equivalent to one in eleven people globally. In Africa it was even higher, with one in five people going hungry. Climate change is a significant driver of this crisis.
Paradoxically, well intentioned policies to combat global warming may also be a cause of hunger, particularly for small-scale farmers in poorer countries, unless these policies are accompanied by measures to curtail their socio-economic downsides.
Gradual changes in temperatures and rainfall patterns reduce returns to farming, on which poor people largely depend, and sudden events like floods and droughts devastate their crops and livestock. According to the World Bank, climate change could push as many as 135 million more people into poverty by 2030. Urgent action to curb climate change is therefore essential to the fight against poverty and hunger.
However, if we are not careful, climate mitigation efforts can undermine progress on eradicating poverty and hunger. A recent example is the European Union´s Regulation on Deforestation-free products that was introduced in June 2023. This regulation is intended to ensure that products bought and consumed in Europe do not contribute to deforestation through the expansion of agricultural land for the production of cattle, wood, cocoa, soy, palm oil or coffee.
On the one hand, reducing deforestation is essential to combating climate change and can benefit many of the 1 to 2 billion people who depend on forests for their livelihoods.
But on the other hand, the costs of these policies fall disproportionately on rural poor people that do not have the resources and capacities to comply, including those that currently rely on clearing new lands for their livelihoods - estimated to account for about a third of deforestation.
As governments of 17 countries across Latin America, Africa and Asia had forewarned, the EU's Regulation is already having severe negative impacts among poorer people in poorer countries, in particular small-scale farmers.
Without support, they face huge challenges in complying with the complex, new procedures, and at the same time they often lack the capacities and resources to maintain or increase their agricultural production without expanding the land area under cultivation – this is even more true in a context of a changing climate change that reduces farming yields. More at Global Issues
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Women matter. Svenja Schulze on climate and chocolate
Food security is one of the most urgent issues in global development affairs. Germany’s federal minister for economic cooperation and development explains why more added value at the local level is crucial for eradicating global hunger.
Why does added value matter for development cooperation? It’s simple: when people in African, Asian and Latin American countries produce agricultural commodities such as soy, palm oil, cocoa or coffee, they often do not benefit much. Though they work hard on the fields, they only get a small share of the profits. Processing commodities tends to generate the most profits, and they end up in the accounts of internationally active corporations, not in the pockets of people in the global south.
Farmers add more value when they not only grow cocoa and coffee, but also process the produce. That value materialises in the form of additional income, additional jobs and better nutrition, because fewer food items need to be imported. I am therefore convinced that development policy must boost local value chains.
Why women matter
In the Sahel region, hunger and poverty make many people susceptible to terrorist recruitment. The terrorists promise incomes that are otherwise unavailable. Sustainable agriculture and more local value creation are necessary in the region to fight hunger and to offer local people perspectives. That, in turn, requires climate-resilient agricultural practices, greater productivity, more local processing and better marketing of products. What does that look like in practice?
In Burkina Faso, German development agencies have supported 138,000 farmers apply sustainable methods of soil and water management. Related efforts made the fields more resilient to climate change, so harvests now remain reliable in spite of droughts and storms. In cooperation with our local partners, we are also assessing how small-scale business can operate in ways that improve their financial returns.
Sabine Nana is an entrepreneur whose company processes two tons of manioc per day to produce couscous. To expand the business, Sabine took part in training courses that were supported by German development cooperation. She learned how to draft a business plan, improved her leadership skills and adopted better technologies to make her manioc dough last longer. In the meantime, Sabine has begun to train young women herself and helps them start businesses of their own.
Sabine is currently supplying couscous to the cafeterias of 300 primary schools. Her annual sales have increased from € 120,000 in 2019 to € 300,000 now. She used to employ 25 women, and that number has doubled. The wages make her staff economically independent, enabling them to feed their families and send their children to school.
More added value does not matter only in business terms. It is of great social relevance. It boosts women’s autonomy and improves the outlook for their children. Moreover, it improves security not only in the region, but even in Germany, by reducing the reach of terrorist agitation.
How climate-resilient approaches matter
As in the Sahel region, climate change is one of the main drivers of hunger and poverty in many places around the world. Flooding, droughts and storms destroy farmland, forcing people to leave their homes and find new livelihoods elsewhere.
That was the fate of Suma Begum in Bangladesh. She lost her home to a flood and fled with the family. The informal settlement, where they now live, only offers rather few income opportunities. Suma found a training programme run by German development cooperation most helpful.
It taught her how to grow vegetables at home, not only in her tiny front and back yards, but also in bags on the roof and the walls of her shelter. Suma can now fend for her family and sells surplus vegetables in the neighbourhood or on the market. The revenues have allowed her to join a saving scheme, ensuring that she stays able to pay school tuition and, if need be, doctors.
Her example shows how innovative and climate-resilient methods enable people to earn reliable incomes in spite of global warming. They make them less dependent on aid in times of crisis and less likely to flee to foreign countries.
Chocolate, for example
Besides vegetables, chocolate can contribute to improving people’s prospects. Statistically, every German eats an annual nine kilogrammes of chocolate on average. Only few Germans, however, are probably aware that only six cent per chocolate bar of 100 grammes end up in the households of cocoa farmers.
That is plainly not enough to make a living, and the situation gets even worse when climate impacts diminish the harvest, as recently happened in Ghana and Côte d’Ivoire. To improve matters, my ministry is cooperating with Germany’s Federal Ministry for Food and Agriculture, private-sector companies and civil-sector organisations in a multi-stakeholder initiative called German Initiative on Sustainable Cocoa. The shared goal is to ensure that at least 90 % of the cocoa farmers earn living wages by 2030.
In a joint project of the German Initiative on Sustainable Cocoa, local partners are teaching up-to-date cultivation methods, not only with regard to cocoa, but other cultivars as well. This approach allows them to diversify their incomes.
Moreover, the farmers are encouraged to process parts of the cocoa plant that they used to discard. It is possible to make a refreshing drink from the cocoa fruit, for example, or to turn cocoa shells into bio fertiliser. The project focuses on women because there is evidence of mothers investing a larger share of their incomes in feeding and educating their children than fathers do.
More must happen. Sourcing companies from Europe must ensure that those who work in the value chains earn living wages in decent labour conditions. It matters very much that the EU’s Corporate Sustainability Due Diligence Directive (CSDDD) will force companies to improve their sourcing policies in the future. Though its norms are not in force yet, I expect corporations to start implementation immediately. That not only makes sense in ethical terms, but in business terms too. Anyone who practices fair trade, has a competitive advantage.
Added value delivers results
The above examples from the Sahel region, Bangladesh and Côte d’Ivoire illustrate how local value creation helps to fight hunger and poverty. However, the international community also needs structural change. More governments, more international organisations, more private-sector companies and more civil-society activists must cooperate with the goal of everyone on Earth getting sufficient amounts of good food.
The Hamburg Sustainability Conference (HSC) will offer an opportunity to join forces in this sense. It will take place on 7 and 8 October, hosted by my ministry in cooperation with the City of Hamburg, the Michael Otto Foundation and the United Nations. We are convening leaders who represent politics, business, civil society and academia from all over the world. The idea is to discuss how best to get the agenda 2030 back on track, and we plan to do so in a debate marked by trustfulness and partnership.
Svenja Schulze is Germany’s federal minister for economic cooperation and development.
https://www.bmz.de/en
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India’s planned palm oil import tax hike could hurt Indonesia exports
India has consistently been the second-largest export destination for Indonesian vegetable oil products, buying 16 percent of the country’s total shipments last year, according to International Trade Center data, below only China’s share of 21 percent.
JAKARTA – A plan by India, the world’s top buyer of vegetable oils, to increase its import tax on the commodity could hamper the growth of Indonesia’s palm oil exports.
India has consistently been the second-largest export destination for Indonesian vegetable oil products, buying 16 percent of the country’s total shipments last year, according to International Trade Center (ITC) data, below only China’s share of 21 percent.
Muhammad Osribillal, an industry and regional analyst at Bank Mandiri, told The Jakarta Post on Monday that if the planned tax were implemented, Indian buyers would still purchase Indonesian CPO and refined, bleached, deodorized palm oil (RBDPO) products. However, the tariff hike would impede demand growth for those commodities.
From 2015 to 2019, a period in which India raised its CPO import tariff from 7.5 percent to 40 percent, Indonesian palm oil exports to New Delhi appeared stable, Osribillal said.
India’s CPO imports rose by an average of 75 percent in the five years before the previous tariff hike, but the country’s imports stagnated in the years following the tax increase.
“CPO import growth stagnated from 2015 to 2023, even decreasing by 1.9 percent,” he said. More Asia News Network
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Indonesia plans to cut palm oil export levy to improve competitiveness, government official says
JAKARTA (Sept 4): Indonesia, the world's biggest palm oil exporter, plans to lower export levy rates of the tropical oil to improve competitiveness against rival vegetable oils and raise farmers' income, a government official said on Wednesday.
Palm oil typically trades at a discount to soft oils. However, it has lost the edge over soyoil and sunflower oil in recent months amid ample supply, driving away major buyers India and China.
"Traditionally (palm oil was) always the cheapest, but now it is very competitive with soybean oil and sunflower oil. By lowering (export levy), we hope to improve smallholders' welfare and price competitiveness," Dida Gardera, a senior official at Coordinating Ministry of Economic Affairs told Reuters.
Small farmers often complain that exporters offer them cheaper prices for their palm fruits to compensate for higher export taxes.
Under current rules, Indonesia imposes a levy between US$55 to US$240 per metric ton for crude palm oil exports, depending on global palm oil prices, which is charged on top of a separate export tax.
There are 17 brackets for the levy, with the lowest tax rate kicking in when palm oil price is below US$680 per ton, and the highest rate when the price is above US$1,430 per ton.
The new levy rates will also have "simpler" price brackets, Dida said, without disclosing further details.
Indonesia collects levies on shipments of palm oil products to fund programmes such as smallholders replanting scheme and biodiesel blending mandate.
Exports of Indonesia's palm oil export in the first half of this year stood at 15.07 million metric tons, a 7.65% drop year-on-year, data from the country's biggest palm oil producers group GAPKI showed. The Edge Malaysia
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Malaysia ready to resume FTA negotiations with EU: Tengku Zafrul
KUALA LUMPUR: The recent Cabinet meeting gave approval for Malaysia to officially negotiate with the European Union (EU) to conclude a free trade agreement (FTA), said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
He added that the government will ensure that the negotiations will provide a 'win-win situation' for the EU and Malaysia.
"Recently we presented to the Cabinet so that we can restart negotiations and find a solution. Whether it can be done or not, we don't know yet.
"There are many requests for us to restart negotiations. Now it's up to the EU whether it wants to start (negotiations) or not," he said in an interview on the Niaga Awani programme titled 'BRICS: Countering Misconceptions' broadcast by Astro Awani today.
Negotiations on the FTA began in October 2010, involving eight rounds of negotiations until September 2012, but were postponed due to Malaysia's position in several areas such as palm oil, procurement policy, subsidies and the EU's sustainability clause.
Tengku Zafrul noted that only two Southeast Asian countries have concluded FTAs with the EU so far, namely Vietnam and Singapore. He said Malaysia will also finalise an FTA with the United Arab Emirates (UAE) at the end of this year and will also start renegotiations with South Korea which is expected to be completed next year. "We have more negotiations with two or three European countries that are not included in the EU and will finalise our FTA with those countries as well," he added. New Straits Times
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Sustainable Aviation Fuel: The Key to Decarbonizing Air Travel
Sustainable Aviation Fuel (SAF) is emerging as a crucial solution for reducing the aviation industry’s carbon footprint. SAF is made from waste-derived feedstocks and can significantly lower greenhouse gas emissions.
The thrill of international travel or shopping from global online retailers can sometimes make us overlook the environmental impact of the aircraft in our skies. The aviation industry accounted for 2% of global energy-related CO2 emissions in 2022. As the effects of the COVID-19 pandemic wear off and travel resumes, the International Air Transport Association (IATA) predicts that global passengers will increase by almost 4% each year over the next 20 years.
To mitigate the impacts of greenhouse gas emissions in the aviation industry, innovations such as more efficient aircraft designs and sustainable fuel alternatives are required. The International Energy Agency (IEA) believes sustainable aviation fuels will be critical in decarbonizing aviation. This article will introduce sustainable aviation fuels, how they are made, and provide an overview of how Samsung C&T’s Trading and Investment (T&I) Group is ensuring sustainability and compliance in its SAF raw material supply business.
Sustainable Aviation Fuel (SAF): What It Is and Why It Matters
The International Civil Aviation Organization (ICAO) defines Sustainable Aviation Fuel (SAF) as “renewable or waste-derived aviation fuels that meet sustainability criteria.” This criterion is based on the type of feedstock, the process by which the feedstock is converted into fuel, and the fuel’s sustainability certifications.
SAF is made from non-petroleum-based feedstocks and has been proven to reduce the amount of greenhouse gas emissions over an aircraft’s lifecycle. According to the IATA, SAF has shown to reduce an aircraft’s CO2 lifecycle emissions by up to 80% compared to fossil fuels, accounting for the CO2 emissions generated during production.
SAFs will play a key role in addressing the challenges highlighted in Sustainable Development Goal 13, which calls for urgent action to combat climate change and its effects. If the adoption of SAF becomes widespread with adequate policies set in place, the IATA estimates that it “could contribute around 65% of the reduction in emissions needed by the aviation industry to reach net-zero in 2050.” Samsung Newsroom
Tackling Climate Change Will Be a Pyrrhic Victory If We Lose Sight of the Poor
Opinion by Marco Knowles
Marco Knowles leads the FAO's Social Protection Team
ROME, Sep 03 (IPS) - Urgent climate action is key to eradicating hunger and poverty, but climate mitigation policies can inadvertently exacerbate these issues in rural areas. Countries must design climate strategies that account for the impacts on the rural poor and that include social protection measures.
Last July, we were confronted with alarming statistics: 733 million people experienced hunger in 2023, equivalent to one in eleven people globally. In Africa it was even higher, with one in five people going hungry. Climate change is a significant driver of this crisis.
Paradoxically, well intentioned policies to combat global warming may also be a cause of hunger, particularly for small-scale farmers in poorer countries, unless these policies are accompanied by measures to curtail their socio-economic downsides.
Gradual changes in temperatures and rainfall patterns reduce returns to farming, on which poor people largely depend, and sudden events like floods and droughts devastate their crops and livestock. According to the World Bank, climate change could push as many as 135 million more people into poverty by 2030. Urgent action to curb climate change is therefore essential to the fight against poverty and hunger.
However, if we are not careful, climate mitigation efforts can undermine progress on eradicating poverty and hunger. A recent example is the European Union´s Regulation on Deforestation-free products that was introduced in June 2023. This regulation is intended to ensure that products bought and consumed in Europe do not contribute to deforestation through the expansion of agricultural land for the production of cattle, wood, cocoa, soy, palm oil or coffee.
On the one hand, reducing deforestation is essential to combating climate change and can benefit many of the 1 to 2 billion people who depend on forests for their livelihoods.
But on the other hand, the costs of these policies fall disproportionately on rural poor people that do not have the resources and capacities to comply, including those that currently rely on clearing new lands for their livelihoods - estimated to account for about a third of deforestation.
As governments of 17 countries across Latin America, Africa and Asia had forewarned, the EU's Regulation is already having severe negative impacts among poorer people in poorer countries, in particular small-scale farmers.
Without support, they face huge challenges in complying with the complex, new procedures, and at the same time they often lack the capacities and resources to maintain or increase their agricultural production without expanding the land area under cultivation – this is even more true in a context of a changing climate change that reduces farming yields. More at Global Issues
--------
Women matter. Svenja Schulze on climate and chocolate
Food security is one of the most urgent issues in global development affairs. Germany’s federal minister for economic cooperation and development explains why more added value at the local level is crucial for eradicating global hunger.
Why does added value matter for development cooperation? It’s simple: when people in African, Asian and Latin American countries produce agricultural commodities such as soy, palm oil, cocoa or coffee, they often do not benefit much. Though they work hard on the fields, they only get a small share of the profits. Processing commodities tends to generate the most profits, and they end up in the accounts of internationally active corporations, not in the pockets of people in the global south.
Farmers add more value when they not only grow cocoa and coffee, but also process the produce. That value materialises in the form of additional income, additional jobs and better nutrition, because fewer food items need to be imported. I am therefore convinced that development policy must boost local value chains.
Why women matter
In the Sahel region, hunger and poverty make many people susceptible to terrorist recruitment. The terrorists promise incomes that are otherwise unavailable. Sustainable agriculture and more local value creation are necessary in the region to fight hunger and to offer local people perspectives. That, in turn, requires climate-resilient agricultural practices, greater productivity, more local processing and better marketing of products. What does that look like in practice?
In Burkina Faso, German development agencies have supported 138,000 farmers apply sustainable methods of soil and water management. Related efforts made the fields more resilient to climate change, so harvests now remain reliable in spite of droughts and storms. In cooperation with our local partners, we are also assessing how small-scale business can operate in ways that improve their financial returns.
Sabine Nana is an entrepreneur whose company processes two tons of manioc per day to produce couscous. To expand the business, Sabine took part in training courses that were supported by German development cooperation. She learned how to draft a business plan, improved her leadership skills and adopted better technologies to make her manioc dough last longer. In the meantime, Sabine has begun to train young women herself and helps them start businesses of their own.
Sabine is currently supplying couscous to the cafeterias of 300 primary schools. Her annual sales have increased from € 120,000 in 2019 to € 300,000 now. She used to employ 25 women, and that number has doubled. The wages make her staff economically independent, enabling them to feed their families and send their children to school.
More added value does not matter only in business terms. It is of great social relevance. It boosts women’s autonomy and improves the outlook for their children. Moreover, it improves security not only in the region, but even in Germany, by reducing the reach of terrorist agitation.
How climate-resilient approaches matter
As in the Sahel region, climate change is one of the main drivers of hunger and poverty in many places around the world. Flooding, droughts and storms destroy farmland, forcing people to leave their homes and find new livelihoods elsewhere.
That was the fate of Suma Begum in Bangladesh. She lost her home to a flood and fled with the family. The informal settlement, where they now live, only offers rather few income opportunities. Suma found a training programme run by German development cooperation most helpful.
It taught her how to grow vegetables at home, not only in her tiny front and back yards, but also in bags on the roof and the walls of her shelter. Suma can now fend for her family and sells surplus vegetables in the neighbourhood or on the market. The revenues have allowed her to join a saving scheme, ensuring that she stays able to pay school tuition and, if need be, doctors.
Her example shows how innovative and climate-resilient methods enable people to earn reliable incomes in spite of global warming. They make them less dependent on aid in times of crisis and less likely to flee to foreign countries.
Chocolate, for example
Besides vegetables, chocolate can contribute to improving people’s prospects. Statistically, every German eats an annual nine kilogrammes of chocolate on average. Only few Germans, however, are probably aware that only six cent per chocolate bar of 100 grammes end up in the households of cocoa farmers.
That is plainly not enough to make a living, and the situation gets even worse when climate impacts diminish the harvest, as recently happened in Ghana and Côte d’Ivoire. To improve matters, my ministry is cooperating with Germany’s Federal Ministry for Food and Agriculture, private-sector companies and civil-sector organisations in a multi-stakeholder initiative called German Initiative on Sustainable Cocoa. The shared goal is to ensure that at least 90 % of the cocoa farmers earn living wages by 2030.
In a joint project of the German Initiative on Sustainable Cocoa, local partners are teaching up-to-date cultivation methods, not only with regard to cocoa, but other cultivars as well. This approach allows them to diversify their incomes.
Moreover, the farmers are encouraged to process parts of the cocoa plant that they used to discard. It is possible to make a refreshing drink from the cocoa fruit, for example, or to turn cocoa shells into bio fertiliser. The project focuses on women because there is evidence of mothers investing a larger share of their incomes in feeding and educating their children than fathers do.
More must happen. Sourcing companies from Europe must ensure that those who work in the value chains earn living wages in decent labour conditions. It matters very much that the EU’s Corporate Sustainability Due Diligence Directive (CSDDD) will force companies to improve their sourcing policies in the future. Though its norms are not in force yet, I expect corporations to start implementation immediately. That not only makes sense in ethical terms, but in business terms too. Anyone who practices fair trade, has a competitive advantage.
Added value delivers results
The above examples from the Sahel region, Bangladesh and Côte d’Ivoire illustrate how local value creation helps to fight hunger and poverty. However, the international community also needs structural change. More governments, more international organisations, more private-sector companies and more civil-society activists must cooperate with the goal of everyone on Earth getting sufficient amounts of good food.
The Hamburg Sustainability Conference (HSC) will offer an opportunity to join forces in this sense. It will take place on 7 and 8 October, hosted by my ministry in cooperation with the City of Hamburg, the Michael Otto Foundation and the United Nations. We are convening leaders who represent politics, business, civil society and academia from all over the world. The idea is to discuss how best to get the agenda 2030 back on track, and we plan to do so in a debate marked by trustfulness and partnership.
Svenja Schulze is Germany’s federal minister for economic cooperation and development.
https://www.bmz.de/en
--------
India’s planned palm oil import tax hike could hurt Indonesia exports
India has consistently been the second-largest export destination for Indonesian vegetable oil products, buying 16 percent of the country’s total shipments last year, according to International Trade Center data, below only China’s share of 21 percent.
JAKARTA – A plan by India, the world’s top buyer of vegetable oils, to increase its import tax on the commodity could hamper the growth of Indonesia’s palm oil exports.
India has consistently been the second-largest export destination for Indonesian vegetable oil products, buying 16 percent of the country’s total shipments last year, according to International Trade Center (ITC) data, below only China’s share of 21 percent.
Muhammad Osribillal, an industry and regional analyst at Bank Mandiri, told The Jakarta Post on Monday that if the planned tax were implemented, Indian buyers would still purchase Indonesian CPO and refined, bleached, deodorized palm oil (RBDPO) products. However, the tariff hike would impede demand growth for those commodities.
From 2015 to 2019, a period in which India raised its CPO import tariff from 7.5 percent to 40 percent, Indonesian palm oil exports to New Delhi appeared stable, Osribillal said.
India’s CPO imports rose by an average of 75 percent in the five years before the previous tariff hike, but the country’s imports stagnated in the years following the tax increase.
“CPO import growth stagnated from 2015 to 2023, even decreasing by 1.9 percent,” he said. More Asia News Network
--------
Indonesia plans to cut palm oil export levy to improve competitiveness, government official says
JAKARTA (Sept 4): Indonesia, the world's biggest palm oil exporter, plans to lower export levy rates of the tropical oil to improve competitiveness against rival vegetable oils and raise farmers' income, a government official said on Wednesday.
Palm oil typically trades at a discount to soft oils. However, it has lost the edge over soyoil and sunflower oil in recent months amid ample supply, driving away major buyers India and China.
"Traditionally (palm oil was) always the cheapest, but now it is very competitive with soybean oil and sunflower oil. By lowering (export levy), we hope to improve smallholders' welfare and price competitiveness," Dida Gardera, a senior official at Coordinating Ministry of Economic Affairs told Reuters.
Small farmers often complain that exporters offer them cheaper prices for their palm fruits to compensate for higher export taxes.
Under current rules, Indonesia imposes a levy between US$55 to US$240 per metric ton for crude palm oil exports, depending on global palm oil prices, which is charged on top of a separate export tax.
There are 17 brackets for the levy, with the lowest tax rate kicking in when palm oil price is below US$680 per ton, and the highest rate when the price is above US$1,430 per ton.
The new levy rates will also have "simpler" price brackets, Dida said, without disclosing further details.
Indonesia collects levies on shipments of palm oil products to fund programmes such as smallholders replanting scheme and biodiesel blending mandate.
Exports of Indonesia's palm oil export in the first half of this year stood at 15.07 million metric tons, a 7.65% drop year-on-year, data from the country's biggest palm oil producers group GAPKI showed. The Edge Malaysia
--------
Malaysia ready to resume FTA negotiations with EU: Tengku Zafrul
KUALA LUMPUR: The recent Cabinet meeting gave approval for Malaysia to officially negotiate with the European Union (EU) to conclude a free trade agreement (FTA), said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
He added that the government will ensure that the negotiations will provide a 'win-win situation' for the EU and Malaysia.
"Recently we presented to the Cabinet so that we can restart negotiations and find a solution. Whether it can be done or not, we don't know yet.
"There are many requests for us to restart negotiations. Now it's up to the EU whether it wants to start (negotiations) or not," he said in an interview on the Niaga Awani programme titled 'BRICS: Countering Misconceptions' broadcast by Astro Awani today.
Negotiations on the FTA began in October 2010, involving eight rounds of negotiations until September 2012, but were postponed due to Malaysia's position in several areas such as palm oil, procurement policy, subsidies and the EU's sustainability clause.
Tengku Zafrul noted that only two Southeast Asian countries have concluded FTAs with the EU so far, namely Vietnam and Singapore. He said Malaysia will also finalise an FTA with the United Arab Emirates (UAE) at the end of this year and will also start renegotiations with South Korea which is expected to be completed next year. "We have more negotiations with two or three European countries that are not included in the EU and will finalise our FTA with those countries as well," he added. New Straits Times
--------
Sustainable Aviation Fuel: The Key to Decarbonizing Air Travel
Sustainable Aviation Fuel (SAF) is emerging as a crucial solution for reducing the aviation industry’s carbon footprint. SAF is made from waste-derived feedstocks and can significantly lower greenhouse gas emissions.
The thrill of international travel or shopping from global online retailers can sometimes make us overlook the environmental impact of the aircraft in our skies. The aviation industry accounted for 2% of global energy-related CO2 emissions in 2022. As the effects of the COVID-19 pandemic wear off and travel resumes, the International Air Transport Association (IATA) predicts that global passengers will increase by almost 4% each year over the next 20 years.
To mitigate the impacts of greenhouse gas emissions in the aviation industry, innovations such as more efficient aircraft designs and sustainable fuel alternatives are required. The International Energy Agency (IEA) believes sustainable aviation fuels will be critical in decarbonizing aviation. This article will introduce sustainable aviation fuels, how they are made, and provide an overview of how Samsung C&T’s Trading and Investment (T&I) Group is ensuring sustainability and compliance in its SAF raw material supply business.
Sustainable Aviation Fuel (SAF): What It Is and Why It Matters
The International Civil Aviation Organization (ICAO) defines Sustainable Aviation Fuel (SAF) as “renewable or waste-derived aviation fuels that meet sustainability criteria.” This criterion is based on the type of feedstock, the process by which the feedstock is converted into fuel, and the fuel’s sustainability certifications.
SAF is made from non-petroleum-based feedstocks and has been proven to reduce the amount of greenhouse gas emissions over an aircraft’s lifecycle. According to the IATA, SAF has shown to reduce an aircraft’s CO2 lifecycle emissions by up to 80% compared to fossil fuels, accounting for the CO2 emissions generated during production.
SAFs will play a key role in addressing the challenges highlighted in Sustainable Development Goal 13, which calls for urgent action to combat climate change and its effects. If the adoption of SAF becomes widespread with adequate policies set in place, the IATA estimates that it “could contribute around 65% of the reduction in emissions needed by the aviation industry to reach net-zero in 2050.” Samsung Newsroom
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September 04, 2024
Southeast Asia able to supply 12% of world’s sustainable aviation fuel needs by 2050
A supportive regulatory environment as well as enhanced collaboration will help raise the region’s potential
SOUTH-EAST Asia has the potential to supply 12 per cent of the world’s demand for sustainable aviation fuel by 2050, according to a report developed by the Roundtable on Sustainable Biomaterials and supported by aircraft maker Boeing.
Assuming that sustainable aviation fuel producers in South-east Asia do not export their fuel, it would be sufficient to meet the jet fuel demands of the region, said Robert Boyd, regional sustainability lead for Asia-Pacific at Boeing.
“If today, we could click our fingers and turn the potential into sustainable aviation fuel, it’ll meet every drop of jet fuel being used in South-east Asia today,” said Boyd, who was speaking at a media briefing on the findings of the report.
“Think about this through the lens of a government: Rather than exporting the majority of your jet fuel today, if the resources exist in-country to create an industry that could supply all of your jet fuel needs, that’s got to be, at minimum, a good discussion with policymakers,” he added.
The report released on Tuesday (Sep 3) noted that the region has enough bio-based feedstock resources to produce 45.7 million tonnes of sustainable aviation fuel by 2050 – 12 per cent of the projected 380 million tonnes needed for the aviation sector to achieve its net-zero-by-2050 target.
South-east Asia’s potential
The report – which looked at the feedstock potential of all 10 member states of Asean as well as Timor-Leste (which received in-principle approval to join the regional bloc) – stated that the region possesses significant potential to produce sustainable aviation fuel due to its abundant and diverse bio-based feedstock resources. Business Times
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China responds to Canada’s EV tariffs with rapeseed probe
China will start an anti-dumping probe into rapeseed imports from Canada, with trade tensions escalating after Justin Trudeau’s government imposed tariffs on Chinese-made electric vehicles, steel and aluminum.
The Asian nation is initiating measures following relevant restrictive actions taken by Canada, according to a statement from the Ministry of Commerce. China will take all necessary actions to safeguard the legitimate rights and interests of Chinese companies, the agency added.
Canada announced a 100% levy on electric cars and 25% on steel and aluminum last month, joining western allies to protect domestic manufacturers. Rapeseed is used to produce oil for cooking or industrial purposes, and China is the world’s second-biggest importer of the commodity.
The most actively traded rapeseed meal and rapeseed oil futures on China’s Zhengzhou Commodity Exchange surged at least 6% on Tuesday. Canola futures in North America fell by the exchange limit in the biggest intraday loss since August 2022, on fears that lower Chinese demand could result in a glut at home.
More than 90% of China’s total rapeseed imports last year were from Canada, totaling 5.05 million tons, according to Chinese customs data. The variety of the crop grown in Canada is also known as canola.
China has targeted Canada’s trade before, halting shipments of canola in 2019 following the arrest of a top Huawei Technologies Co. executive in Vancouver on an American extradition request. The Asian nation has recently launched other probes, including into dairy imports from the European Union.
Canada was suspected of dumping rapeseed shipments, and such unfair trade practices have caused losses locally, the ministry in Beijing said, citing an appeal from the domestic sector.
Palm oil futures rose 1.1% in Malaysia on speculation that the probe may spark increased demand for alternative oilseeds. AJOT
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Southeast Asia able to supply 12% of world’s sustainable aviation fuel needs by 2050
A supportive regulatory environment as well as enhanced collaboration will help raise the region’s potential
SOUTH-EAST Asia has the potential to supply 12 per cent of the world’s demand for sustainable aviation fuel by 2050, according to a report developed by the Roundtable on Sustainable Biomaterials and supported by aircraft maker Boeing.
Assuming that sustainable aviation fuel producers in South-east Asia do not export their fuel, it would be sufficient to meet the jet fuel demands of the region, said Robert Boyd, regional sustainability lead for Asia-Pacific at Boeing.
“If today, we could click our fingers and turn the potential into sustainable aviation fuel, it’ll meet every drop of jet fuel being used in South-east Asia today,” said Boyd, who was speaking at a media briefing on the findings of the report.
“Think about this through the lens of a government: Rather than exporting the majority of your jet fuel today, if the resources exist in-country to create an industry that could supply all of your jet fuel needs, that’s got to be, at minimum, a good discussion with policymakers,” he added.
The report released on Tuesday (Sep 3) noted that the region has enough bio-based feedstock resources to produce 45.7 million tonnes of sustainable aviation fuel by 2050 – 12 per cent of the projected 380 million tonnes needed for the aviation sector to achieve its net-zero-by-2050 target.
South-east Asia’s potential
The report – which looked at the feedstock potential of all 10 member states of Asean as well as Timor-Leste (which received in-principle approval to join the regional bloc) – stated that the region possesses significant potential to produce sustainable aviation fuel due to its abundant and diverse bio-based feedstock resources. Business Times
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China responds to Canada’s EV tariffs with rapeseed probe
China will start an anti-dumping probe into rapeseed imports from Canada, with trade tensions escalating after Justin Trudeau’s government imposed tariffs on Chinese-made electric vehicles, steel and aluminum.
The Asian nation is initiating measures following relevant restrictive actions taken by Canada, according to a statement from the Ministry of Commerce. China will take all necessary actions to safeguard the legitimate rights and interests of Chinese companies, the agency added.
Canada announced a 100% levy on electric cars and 25% on steel and aluminum last month, joining western allies to protect domestic manufacturers. Rapeseed is used to produce oil for cooking or industrial purposes, and China is the world’s second-biggest importer of the commodity.
The most actively traded rapeseed meal and rapeseed oil futures on China’s Zhengzhou Commodity Exchange surged at least 6% on Tuesday. Canola futures in North America fell by the exchange limit in the biggest intraday loss since August 2022, on fears that lower Chinese demand could result in a glut at home.
More than 90% of China’s total rapeseed imports last year were from Canada, totaling 5.05 million tons, according to Chinese customs data. The variety of the crop grown in Canada is also known as canola.
China has targeted Canada’s trade before, halting shipments of canola in 2019 following the arrest of a top Huawei Technologies Co. executive in Vancouver on an American extradition request. The Asian nation has recently launched other probes, including into dairy imports from the European Union.
Canada was suspected of dumping rapeseed shipments, and such unfair trade practices have caused losses locally, the ministry in Beijing said, citing an appeal from the domestic sector.
Palm oil futures rose 1.1% in Malaysia on speculation that the probe may spark increased demand for alternative oilseeds. AJOT
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September 03, 2024
Southeast Asia primed to play key role in SAF growth, says Boeing
Southeast Asia’s feedstocks can supply approximately 12% of global sustainable aviation fuel (SAF) demand to meet the commercial aviation industry’s net-zero goal by 2050, according to a report developed by Roundtable on Sustainable Biomaterials (RSB) and supported by Boeing.
The sustainable feedstock assessment, encompassing 11 countries across Southeast Asia, found that the region’s bio-based feedstock capacity can produce approximately 45.7 million metric tons of SAF per year by 2050.
Furthermore, approximately 75% of potential SAF feedstock can be sourced from postconsumer and agricultural waste including cassava, sugarcane and municipal solid waste.
“This research affirms Southeast Asia’s diverse SAF feedstock availability and immense potential for helping meet global demand for SAF,” said Sharmine Tan, Boeing’s regional sustainability lead for Southeast Asia.
“With regional governments and industry working together on sustainability polices and infrastructure investment, scaling local production and building a regional SAF capability provides Southeast Asia an exciting opportunity to help shape a more sustainable future of flight while protecting its environment and growing its economy.”
Unblended, or “neat” SAF, which is totally free of fossil fuels, offers the largest potential to reduce aviation’s carbon emissions over the next 30 years, as it can reduce emissions over the fuel’s lifecycle by up to 84%.
In 2023, SAF only accounted for 0.2% of global commercial fuel use.
“Our research considers not only the potential volumes of feedstock available in Southeast Asia, but also their environmental and social sustainability in terms of impacts on deforestation, water, and food security,” said Arianna Baldo, RSB’s programme director. “These results can help guide future SAF feedstock supply including the exploration of other agricultural and industrial waste materials.” Biofuels International
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China’s palm oil imports will exceed one million tons from August to October
Imports of palm oil in China from August to October will exceed 1 million 80 thousand tons, according to China’s national grain and oil information center. The volume of purchases is due to the increase in profits from palm oil imports recently, against this background enterprises are increasing their purchases in foreign markets. Monitoring of ship schedules shows that the expected palm oil arrivals at Chinese ports from August to October will be 300,000 tons, 360,000 tons and 420,000 tons, respectively.
In August, domestic palm oil stocks rose to 590,000 tons, only 70,000 tons less than the same period last year. Currently, the procurement of October to December delivery schedules is still ongoing. Considering the continuous growth of palm oil production in Southeast Asia and temporary export pressure, China’s palm oil import profit is expected to improve, this will further contribute to the increase of domestic ship purchases. It is predicted that domestic palm oil supply will weaken in the fourth quarter, and the price range will fluctuate.
Earlier, it was reported that Malaysia has signed palm oil trade deals with China worth more than 230 million ringgit. It is possible that the total value of the contracts will increase in the coming years. UK Agro Consult
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African nations keen to boost palm oil capacity: Indonesian Foreign Minister Marsudi
Badung, Bali (ANTARA) - Foreign Affairs Minister Retno Marsudi on Monday revealed that African countries expressed their interest in increasing the capacity of their palm oil industry during their meeting with President Joko Widodo (Jokowi).
"During the meetings with the President, what was requested a lot was capacity improvement in, for example, palm oil," she said at a press conference on the sidelines of the High-Level Forum on Multi-Stakeholder Partnerships (HLF MSP) and the 2nd Indonesia-Africa Forum (IAF) here.
Marsudi disclosed that several African nations also expressed a desire to join the Committee of Palm Oil Producing Countries (CPOPC).
There were also requests for cooperation to increase health capacity, she said.
Regarding health cooperation, she highlighted that President Widodo and Vice President of Zimbabwe Kembo Dugish Campbell Muleya Mohadi discussed economic cooperation in the pharmaceutical sector during their bilateral meeting. Antara News
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Southeast Asia primed to play key role in SAF growth, says Boeing
Southeast Asia’s feedstocks can supply approximately 12% of global sustainable aviation fuel (SAF) demand to meet the commercial aviation industry’s net-zero goal by 2050, according to a report developed by Roundtable on Sustainable Biomaterials (RSB) and supported by Boeing.
The sustainable feedstock assessment, encompassing 11 countries across Southeast Asia, found that the region’s bio-based feedstock capacity can produce approximately 45.7 million metric tons of SAF per year by 2050.
Furthermore, approximately 75% of potential SAF feedstock can be sourced from postconsumer and agricultural waste including cassava, sugarcane and municipal solid waste.
“This research affirms Southeast Asia’s diverse SAF feedstock availability and immense potential for helping meet global demand for SAF,” said Sharmine Tan, Boeing’s regional sustainability lead for Southeast Asia.
“With regional governments and industry working together on sustainability polices and infrastructure investment, scaling local production and building a regional SAF capability provides Southeast Asia an exciting opportunity to help shape a more sustainable future of flight while protecting its environment and growing its economy.”
Unblended, or “neat” SAF, which is totally free of fossil fuels, offers the largest potential to reduce aviation’s carbon emissions over the next 30 years, as it can reduce emissions over the fuel’s lifecycle by up to 84%.
In 2023, SAF only accounted for 0.2% of global commercial fuel use.
“Our research considers not only the potential volumes of feedstock available in Southeast Asia, but also their environmental and social sustainability in terms of impacts on deforestation, water, and food security,” said Arianna Baldo, RSB’s programme director. “These results can help guide future SAF feedstock supply including the exploration of other agricultural and industrial waste materials.” Biofuels International
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China’s palm oil imports will exceed one million tons from August to October
Imports of palm oil in China from August to October will exceed 1 million 80 thousand tons, according to China’s national grain and oil information center. The volume of purchases is due to the increase in profits from palm oil imports recently, against this background enterprises are increasing their purchases in foreign markets. Monitoring of ship schedules shows that the expected palm oil arrivals at Chinese ports from August to October will be 300,000 tons, 360,000 tons and 420,000 tons, respectively.
In August, domestic palm oil stocks rose to 590,000 tons, only 70,000 tons less than the same period last year. Currently, the procurement of October to December delivery schedules is still ongoing. Considering the continuous growth of palm oil production in Southeast Asia and temporary export pressure, China’s palm oil import profit is expected to improve, this will further contribute to the increase of domestic ship purchases. It is predicted that domestic palm oil supply will weaken in the fourth quarter, and the price range will fluctuate.
Earlier, it was reported that Malaysia has signed palm oil trade deals with China worth more than 230 million ringgit. It is possible that the total value of the contracts will increase in the coming years. UK Agro Consult
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African nations keen to boost palm oil capacity: Indonesian Foreign Minister Marsudi
Badung, Bali (ANTARA) - Foreign Affairs Minister Retno Marsudi on Monday revealed that African countries expressed their interest in increasing the capacity of their palm oil industry during their meeting with President Joko Widodo (Jokowi).
"During the meetings with the President, what was requested a lot was capacity improvement in, for example, palm oil," she said at a press conference on the sidelines of the High-Level Forum on Multi-Stakeholder Partnerships (HLF MSP) and the 2nd Indonesia-Africa Forum (IAF) here.
Marsudi disclosed that several African nations also expressed a desire to join the Committee of Palm Oil Producing Countries (CPOPC).
There were also requests for cooperation to increase health capacity, she said.
Regarding health cooperation, she highlighted that President Widodo and Vice President of Zimbabwe Kembo Dugish Campbell Muleya Mohadi discussed economic cooperation in the pharmaceutical sector during their bilateral meeting. Antara News
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September 02, 2024
Malaysia's FGV outlines its path towards net zero by 2050
As global sustainability standards continue to evolve, companies are increasingly recognising the need to integrate robust environmental, social, and governance practices into their core operations.
FGV Holdings Bhd is at the forefront of this shift with its Enhanced Sustainability Framework, which consists of five main pillars: Economic Growth, Governance, Social, Environment, and Innovation and Technology.
According to FGV group chief sustainability officer Nurul Hasanah Ahamed, the group has identified specific focus areas under its Enhanced Sustainability Framework, including business development and product quality, traceability, responsible sourcing and supply chain management, upholding human rights and labour standards and climate action.
The enhancement took into consideration the evolving environmental, social and governance (ESG) trends as well as sustainability regulations and standards around the world such as the European Union Regulation on Deforestation-Free Products (EUDR), among others.
“The proactive approach enables FGV to stay ahead of regulatory changes and market demands, ensuring long-term business resilience and sustainability,” she says. The Edge Malaysia
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Indonesia aims to sign US$3.5 billion in deals during Africa forum
INDONESIA will seek to sign US$3.5 billion of trade and investment agreements with Africa as global trade battles spur a hunt for new markets outside Asia, according to a senior diplomat.
The deals will be announced at the ongoing Indonesia-Africa Forum, which will be held until Tuesday (Sep 3) in Bali, Vice Foreign Affairs Minister Pahala Mansury said last week. The targeted haul is much bigger than the roughly US$600 million in deals signed in 2018, when the inaugural meeting was held, he said.
Among the biggest is a project in the gas sector, with an Indonesian company looking to produce fertiliser and ammonia in Africa, Mansury said. There will also be agreements in the health and agricultural sectors as Indonesia looks to export more vaccines, pharmaceutical and food products to the continent, he said.
Indonesia has long been looking to diversify trade beyond its major partners such as China, the US and Japan. That search is taking on greater urgency as a struggling Chinese economy, weak commodity prices and increasing protectionism pose headwinds for the country’s export sector.
Kenya, Nigeria, South Africa and Egypt, in particular, have fast-growing populations that could be promising export markets for South-east Asia’s largest economy, according to Mansury, adding that the foreign affairs ministry is pushing for better market access for Indonesian commodities. Africa accounted for just US$6.9 billion of Indonesia’s exports in 2023, less than 3 per cent of total shipments.
Resource-rich Africa will also be a key player in Indonesia’s ambitions to use its vast reserves of nickel to become a production hub for batteries. Business Times
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IEU-CEPA Awaited, Apindo Asks for No Discrimination Against Indonesian Products in Europe
Jakarta, CNBC Indonesia- Deputy Chairman of the APINDO Trade Division, Adhi S Lukman fully supports the government's efforts through the Ministry of Trade to accelerate negotiations on the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA).
Adhi said that the negotiations that have been going on since 2016 are expected to be completed according to the target in September 2024, although there are still elements of "Political Will" that must be resolved.
The IEU-CEPA is very important for business actors, especially in eliminating tariff discrimination against Indonesian food and beverage products, thus allowing for increased European investment in Indonesia, thereby opening up better job opportunities.
What are the entrepreneurs' expectations of the IEU-CEPA agreement? For more, see the dialogue between Syarifah Rahma and General Expert on International Business and Trade, Ariawan Gunadi and Deputy Chairperson for Trade of the Indonesian Employers' Association (APINDO), Adhi S Lukman in Squawk Box, CNBC Indonesia (Monday, 02/09/2024) CNBC Indonesia
Malaysia's FGV outlines its path towards net zero by 2050
As global sustainability standards continue to evolve, companies are increasingly recognising the need to integrate robust environmental, social, and governance practices into their core operations.
FGV Holdings Bhd is at the forefront of this shift with its Enhanced Sustainability Framework, which consists of five main pillars: Economic Growth, Governance, Social, Environment, and Innovation and Technology.
According to FGV group chief sustainability officer Nurul Hasanah Ahamed, the group has identified specific focus areas under its Enhanced Sustainability Framework, including business development and product quality, traceability, responsible sourcing and supply chain management, upholding human rights and labour standards and climate action.
The enhancement took into consideration the evolving environmental, social and governance (ESG) trends as well as sustainability regulations and standards around the world such as the European Union Regulation on Deforestation-Free Products (EUDR), among others.
“The proactive approach enables FGV to stay ahead of regulatory changes and market demands, ensuring long-term business resilience and sustainability,” she says. The Edge Malaysia
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Indonesia aims to sign US$3.5 billion in deals during Africa forum
INDONESIA will seek to sign US$3.5 billion of trade and investment agreements with Africa as global trade battles spur a hunt for new markets outside Asia, according to a senior diplomat.
The deals will be announced at the ongoing Indonesia-Africa Forum, which will be held until Tuesday (Sep 3) in Bali, Vice Foreign Affairs Minister Pahala Mansury said last week. The targeted haul is much bigger than the roughly US$600 million in deals signed in 2018, when the inaugural meeting was held, he said.
Among the biggest is a project in the gas sector, with an Indonesian company looking to produce fertiliser and ammonia in Africa, Mansury said. There will also be agreements in the health and agricultural sectors as Indonesia looks to export more vaccines, pharmaceutical and food products to the continent, he said.
Indonesia has long been looking to diversify trade beyond its major partners such as China, the US and Japan. That search is taking on greater urgency as a struggling Chinese economy, weak commodity prices and increasing protectionism pose headwinds for the country’s export sector.
Kenya, Nigeria, South Africa and Egypt, in particular, have fast-growing populations that could be promising export markets for South-east Asia’s largest economy, according to Mansury, adding that the foreign affairs ministry is pushing for better market access for Indonesian commodities. Africa accounted for just US$6.9 billion of Indonesia’s exports in 2023, less than 3 per cent of total shipments.
Resource-rich Africa will also be a key player in Indonesia’s ambitions to use its vast reserves of nickel to become a production hub for batteries. Business Times
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IEU-CEPA Awaited, Apindo Asks for No Discrimination Against Indonesian Products in Europe
Jakarta, CNBC Indonesia- Deputy Chairman of the APINDO Trade Division, Adhi S Lukman fully supports the government's efforts through the Ministry of Trade to accelerate negotiations on the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA).
Adhi said that the negotiations that have been going on since 2016 are expected to be completed according to the target in September 2024, although there are still elements of "Political Will" that must be resolved.
The IEU-CEPA is very important for business actors, especially in eliminating tariff discrimination against Indonesian food and beverage products, thus allowing for increased European investment in Indonesia, thereby opening up better job opportunities.
What are the entrepreneurs' expectations of the IEU-CEPA agreement? For more, see the dialogue between Syarifah Rahma and General Expert on International Business and Trade, Ariawan Gunadi and Deputy Chairperson for Trade of the Indonesian Employers' Association (APINDO), Adhi S Lukman in Squawk Box, CNBC Indonesia (Monday, 02/09/2024) CNBC Indonesia
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September 01, 2024
Nigeria signs palm oil cooperation agreement with Indonesia
ABUJA (SUNDIATA POST)- Nigeria and Indonesia have entered into a Memorandum of Understanding (MoU) to enhance palm oil production and market expansion, aiming to reduce reliance on traditional methods and boost smallholder farmers’ income.
The MoU was signed by the National Palm Produce Association of Nigeria (NPPAN) and the Indonesian Palm Oil Association (GAPKI) in Abuja.
Amb. Alphonsus Inyang, President of NPPAN, stated that the agreement would provide smallholder farmers with access to palm oil knowledge, technology, and economic benefits.
He said that the MoU aimed to foster growth in Nigeria’s palm oil industry and establish mutually beneficial cooperation.
Mr Eddy Martono, Chairman of GAPKI, emphasised Indonesia’s commitment to supporting Nigeria’s palm oil industry growth and strengthening cooperation between the two nations.
Martono said Indonesia sought to expand its palm oil market to non-traditional markets, and Nigeria offered a strategic location for this endeavor.
Sahabi Muazu, Director of the Indonesian Embassy in Nigeria, expressed hope that the MoU would drive growth in Nigeria’s palm oil industry.
Lolita Bangun, GAPKI Deputy Secretary-General, highlighted Nigeria’s potential as a profitable investment destination, citing the success of IndoMie in the country.
According to her, the agreement aims to increase palm oil exports to Nigeria, which has a growing demand for the product.
She explained that with Indonesia’s expertise and Nigeria’s strategic location, the partnership was expected to boost the palm oil industry in both nations.(NAN) Sundiata Post
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Indonesia's PT Fumin Kingdo to build B100 facilities with China's Henan Kingdo produce biodiesel from palm wastes
Director of PT Fumin Kingdo Brothers, Yudhi Fu, said that his party cooperates with Henan Hi-tech Kingdo Industrial to build a B100 factory in Bangka which can better utilize palm oil waste to produce more competitive products.
Henan Hi-tech Kingdo Industrial is one of the biodiesel companies in China, not only running biodiesel factories in China, but also mastering advanced and mature technology in converting palm oil waste into new energy biodiesels.
"Our B100 can not only be used domestically, but also exported to America and Europe, because it is in line with their renewable energy regulations," said Yudhi in his statement, Friday, August 30.
Yudhi explained, Indonesia has sufficient palm oil waste resources. The reason is, Indonesia produces 55.8 million tons of palm oil per year, there are 2.2 million tons of palm oil wasted.
Before CPO factories in Indonesia threw them away as garbage. This not only causes environmental pollution, but also waste of resources.
"In recent years, factories in China have imported a lot of palm oil waste from Indonesia as raw material for biodiesel production, because biodiesel from palm oil waste is recognized as a product that can reduce carbon emissions, so more than 90% of Chinese biodiesels are exported to America and Europe," he said.
Yudhi explained, the use of B100 has a significant carbon emission reduction effect.
Indonesia, one of the largest greenhouse gas emission producers in the world, has set a target of reducing emissions by 31.89 percent with its own efforts, or 43.2 percent with international support, by 2030.
Other biodiesel factories in Indonesia use processed palm oil as raw material to produce biodiesel.
However, Yudhi said, his biodiesel factory in Bangka will use palm oil (POME) waste from the CPO factory to produce biodiesel. According to him, the price of palm oil is much cheaper than processed palm oil.
"In addition, we use technology that is much more advanced than China to further reduce production costs. Therefore, it is estimated that our B100 has a price advantage compared to existing biodiesels," he said.
"Currently, factories in Indonesia are using refined palm oil to produce biodiesel. Our factory will use palm oil waste from the CPO factory and even used cooking oil from restaurants. Our B100 will be cheaper than biodiesel from other factories in Indonesia, at least not more expensive than petro-diesel," he added.
Yudhi emphasized that the use of B100 can help reduce crude oil imports. He emphasized that palm oil is a renewable resource. VOI
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CSPO Watch September 2024
Nigeria signs palm oil cooperation agreement with Indonesia
ABUJA (SUNDIATA POST)- Nigeria and Indonesia have entered into a Memorandum of Understanding (MoU) to enhance palm oil production and market expansion, aiming to reduce reliance on traditional methods and boost smallholder farmers’ income.
The MoU was signed by the National Palm Produce Association of Nigeria (NPPAN) and the Indonesian Palm Oil Association (GAPKI) in Abuja.
Amb. Alphonsus Inyang, President of NPPAN, stated that the agreement would provide smallholder farmers with access to palm oil knowledge, technology, and economic benefits.
He said that the MoU aimed to foster growth in Nigeria’s palm oil industry and establish mutually beneficial cooperation.
Mr Eddy Martono, Chairman of GAPKI, emphasised Indonesia’s commitment to supporting Nigeria’s palm oil industry growth and strengthening cooperation between the two nations.
Martono said Indonesia sought to expand its palm oil market to non-traditional markets, and Nigeria offered a strategic location for this endeavor.
Sahabi Muazu, Director of the Indonesian Embassy in Nigeria, expressed hope that the MoU would drive growth in Nigeria’s palm oil industry.
Lolita Bangun, GAPKI Deputy Secretary-General, highlighted Nigeria’s potential as a profitable investment destination, citing the success of IndoMie in the country.
According to her, the agreement aims to increase palm oil exports to Nigeria, which has a growing demand for the product.
She explained that with Indonesia’s expertise and Nigeria’s strategic location, the partnership was expected to boost the palm oil industry in both nations.(NAN) Sundiata Post
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Indonesia's PT Fumin Kingdo to build B100 facilities with China's Henan Kingdo produce biodiesel from palm wastes
Director of PT Fumin Kingdo Brothers, Yudhi Fu, said that his party cooperates with Henan Hi-tech Kingdo Industrial to build a B100 factory in Bangka which can better utilize palm oil waste to produce more competitive products.
Henan Hi-tech Kingdo Industrial is one of the biodiesel companies in China, not only running biodiesel factories in China, but also mastering advanced and mature technology in converting palm oil waste into new energy biodiesels.
"Our B100 can not only be used domestically, but also exported to America and Europe, because it is in line with their renewable energy regulations," said Yudhi in his statement, Friday, August 30.
Yudhi explained, Indonesia has sufficient palm oil waste resources. The reason is, Indonesia produces 55.8 million tons of palm oil per year, there are 2.2 million tons of palm oil wasted.
Before CPO factories in Indonesia threw them away as garbage. This not only causes environmental pollution, but also waste of resources.
"In recent years, factories in China have imported a lot of palm oil waste from Indonesia as raw material for biodiesel production, because biodiesel from palm oil waste is recognized as a product that can reduce carbon emissions, so more than 90% of Chinese biodiesels are exported to America and Europe," he said.
Yudhi explained, the use of B100 has a significant carbon emission reduction effect.
Indonesia, one of the largest greenhouse gas emission producers in the world, has set a target of reducing emissions by 31.89 percent with its own efforts, or 43.2 percent with international support, by 2030.
Other biodiesel factories in Indonesia use processed palm oil as raw material to produce biodiesel.
However, Yudhi said, his biodiesel factory in Bangka will use palm oil (POME) waste from the CPO factory to produce biodiesel. According to him, the price of palm oil is much cheaper than processed palm oil.
"In addition, we use technology that is much more advanced than China to further reduce production costs. Therefore, it is estimated that our B100 has a price advantage compared to existing biodiesels," he said.
"Currently, factories in Indonesia are using refined palm oil to produce biodiesel. Our factory will use palm oil waste from the CPO factory and even used cooking oil from restaurants. Our B100 will be cheaper than biodiesel from other factories in Indonesia, at least not more expensive than petro-diesel," he added.
Yudhi emphasized that the use of B100 can help reduce crude oil imports. He emphasized that palm oil is a renewable resource. VOI
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CSPO Watch September 2024
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