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 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
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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
--------
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
--------
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
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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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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.
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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
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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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