Palm Oil News-October 2024
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For all the news on the global palm oil industry. October 2024
Makin' it easy for you to monitor developments in the palm oil industry
For all the news on the global palm oil industry. October 2024
Makin' it easy for you to monitor developments in the palm oil industry
October 07, 2024
Malaysia committed to strengthening palm oil industry in 2025 Budget
KUALA LUMPUR: The government is committed to empowering the palm oil industry, said Prime Minister Datuk Seri Anwar Ibrahim.
In his latest social media post, Anwar shared his latest engagement session on the industry, ahead of the tabling of the 2025 Budget on Oct 18.
"Ahead of the tabling of the 2025 Budget, the Madani government is conducting a series of engagements to gather feedback from all segments of society, including industry players.
"This time, along with the Perak Menteri Besar (Datuk Seri Saarani Mohamad), Plantation and Commodities Minister (Datuk Seri Johari Abdul Ghani), Chief Secretary to the Government (Tan Sri Shamsul Azri Abu Bakar) and senior government officials, we held discussions with representatives from the palm oil industry.
"During the engagement session, we addressed several important issues, including concerns related to foreign labour, low palm oil production rates and efforts to enhance downstream activities in the palm oil sector, aimed at ensuring the sustainability of the country's palm oil industry.
"The Madani government is committed to empowering the palm oil industry, Insya-Allah," he said. New Straits Times
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How Malaysia’s palm oil industry is championing biodiversity conservation, a key pillar of ESG
There is a growing focus on environmental, social and governance (ESG) practices in the palm oil industry, with Malaysia — one of the largest palm oil producers in the world — at the forefront of this movement. The country has pledged to conserve biodiversity and prevent illegal deforestation, committing to maintain at least 50% forest cover. True to its word, 54.9% of Malaysia remained forested as at December 2023, it published in the Fourth National Communication Report to the United Nations Framework Convention on Climate Change.
Malaysia’s efforts align with international treaties like the Paris Agreement and national standards such as the Malaysian Sustainable Palm Oil (MSPO) certification scheme. This certification mandates no deforestation and safeguards High Conservation Value (HCV) areas, primary forests and regions with significant carbon stocks. It also set a “No Deforestation” cut-off date of Dec 31, 2019.
Central to this discourse is the role of biodiversity conservation in oil palm plantations. According to the Malaysian Palm Oil Council (MPOC), palm oil companies in the country are increasingly integrating biodiversity conservation into their operations, reflecting a broader awareness of the link between healthy ecosystems and sustainable agriculture.
By adhering to MSPO standards, these companies demonstrate their commitment to environmental stewardship and responsible industry practices. Indeed, there has been a growing recognition among Malaysian palm oil companies of the need to balance agricultural productivity with environmental responsibility.
Key initiatives for biodiversity conservation
Malaysian palm oil companies are undertaking a variety of initiatives to conserve biodiversity in their plantations and surrounding landscapes. These initiatives are designed to promote environmental stewardship and preserve wildlife and plant species in the palm oil landscapes.
One of the primary strategies employed is the preservation of existing natural habitats. Palm oil companies are setting aside areas of primary forest, wetlands and other ecologically sensitive zones in and around their plantations. The efforts of the Sawit Kinabalu Group (SKG) — the investment arm of the Sabah government in the oil palm industry — at the Sungai Pin Conservation Area (SPnCA) showcase a comprehensive approach to habitat enhancement, biodiversity protection and community engagement.
The SPnCA, a large-scale voluntary conservation area established by SKG, encompasses 2,632ha, representing 42% of the Sungai Pin Estate. This dedicated area allows the implementation of a robust Conservation Area Management Plan (CAMP), developed in collaboration with the Sabah Forestry Department in 2019. CAMP ensures a science-based and well-coordinated approach to conservation activities.
Malaysian palm oil companies are undertaking a variety of initiatives to conserve biodiversity in their plantations and surrounding landscapes. These initiatives are designed to promote environmental stewardship and preserve wildlife and plant species in the palm oil landscapes.
One of the primary strategies employed is the preservation of existing natural habitats. Palm oil companies are setting aside areas of primary forest, wetlands and other ecologically sensitive zones in and around their plantations. The efforts of the Sawit Kinabalu Group (SKG) — the investment arm of the Sabah government in the oil palm industry — at the Sungai Pin Conservation Area (SPnCA) showcase a comprehensive approach to habitat enhancement, biodiversity protection and community engagement.
The SPnCA, a large-scale voluntary conservation area established by SKG, encompasses 2,632ha, representing 42% of the Sungai Pin Estate. This dedicated area allows the implementation of a robust Conservation Area Management Plan (CAMP), developed in collaboration with the Sabah Forestry Department in 2019. CAMP ensures a science-based and well-coordinated approach to conservation activities. More The EdgeMY
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Tech key to reducing Scope 3 palm oil emissions in Malaysia amid increasing regulation: industry watchers
Beyond adapting to new regulations on sustainability and deforestation, the palm oil industry also needs to leverage technology to reduce Scope 3 emissions and enhance product traceability
Employing better technology to trace emissions within supply chains may prove most effective for Malaysian palm oil companies and smallholders involved to decarbonise in the short and long term amid increasingly stringent global regulations, according to industry watchers.
Palm oil, for one, is a major commodity and economic driver in Southeast Asia. In Indonesia, it contributes roughly 3.5 per cent to the national gross domestic product and around 3 per cent to Malaysia’s GDP. Both nations are responsible for around 84 per cent of the world’s palm oil, with Indonesia alone generating 43.5 million metric tons and Malaysia producing more than 19 million metric tons in 2020.
Despite being a source of economic growth, palm oil cultivation has been linked to deforestation for years, and blamed for environmental degradation, threats to biodiversity, and a contributor to climate change since forests are key carbon sinks.
The palm oil supply chain involves five key stages – production, where oil palm trees are grown on large-scale plantations owned by companies and by smallholder farmers; processing, where fresh fruit bunches are processed into crude palm oil and crude palm kernel oil at mills located near the plantations; and refining, where the oils are transported to refineries to be processed into refined oils, fats, and oleochemicals.
The last two stages involve manufacturing, where refined palm oil is used as an ingredient in a wide range of food, cosmetic, and biofuel products by consumer goods manufacturers; and consumption, where end products containing palm oil are sold to consumers through retailers and brands. More Eco Business
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Oct 7, 2024
UFOP welcomes postponement of European Deforestation Directive
The Union for the Promotion of Oil and Protein Crops (UFOP) has welcomed the postponement of the implementation of the European Deforestation Directive (EUDR) announced by Commission President Ursula von der Leyen.
The agricultural sector needs this time corridor in order to be able to adapt to the additional obligations to provide evidence, UFOP added.
Against this backdrop, the association has also welcomed the initiative of Federal Agriculture Minister Cem Özdemir, which has contributed to this success.
The UFOP said that agricultural businesses already have to submit an annual self-declaration as part of the biofuel certification process.
In Germany and the European Union, this concerns the slow but steadily growing area of soya beans as part of the national and EU protein strategy. UFOP emphasises that unnecessary bureaucratic regulations that hinder acceptance must therefore be avoided and simplifications must be introduced.
In principle, the question of acceptance is of international importance because the producer countries and import companies actually addressed by this directive in the case of vegetable oil and oilseeds either reject technical evidence based on geodata or, in view of the large number of small producers, for example in palm oil production, also reach the limits of practical implementation. Against this backdrop, UFOP warns that this directive will not make an effective contribution to the rigorous protection of rainforests and biotopes - ‘whoever clears the land stays out’ - if internationally binding rules are not created at the same time in order to avoid displacement effects. UFOP points out that China alone imports over 100 million tonnes of soybeans from Brazil every year, the equivalent of around 28 million hectares of arable land (Germany: 11.8 million hectares). Biofuels News
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Malaysia committed to strengthening palm oil industry in 2025 Budget
KUALA LUMPUR: The government is committed to empowering the palm oil industry, said Prime Minister Datuk Seri Anwar Ibrahim.
In his latest social media post, Anwar shared his latest engagement session on the industry, ahead of the tabling of the 2025 Budget on Oct 18.
"Ahead of the tabling of the 2025 Budget, the Madani government is conducting a series of engagements to gather feedback from all segments of society, including industry players.
"This time, along with the Perak Menteri Besar (Datuk Seri Saarani Mohamad), Plantation and Commodities Minister (Datuk Seri Johari Abdul Ghani), Chief Secretary to the Government (Tan Sri Shamsul Azri Abu Bakar) and senior government officials, we held discussions with representatives from the palm oil industry.
"During the engagement session, we addressed several important issues, including concerns related to foreign labour, low palm oil production rates and efforts to enhance downstream activities in the palm oil sector, aimed at ensuring the sustainability of the country's palm oil industry.
"The Madani government is committed to empowering the palm oil industry, Insya-Allah," he said. New Straits Times
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How Malaysia’s palm oil industry is championing biodiversity conservation, a key pillar of ESG
There is a growing focus on environmental, social and governance (ESG) practices in the palm oil industry, with Malaysia — one of the largest palm oil producers in the world — at the forefront of this movement. The country has pledged to conserve biodiversity and prevent illegal deforestation, committing to maintain at least 50% forest cover. True to its word, 54.9% of Malaysia remained forested as at December 2023, it published in the Fourth National Communication Report to the United Nations Framework Convention on Climate Change.
Malaysia’s efforts align with international treaties like the Paris Agreement and national standards such as the Malaysian Sustainable Palm Oil (MSPO) certification scheme. This certification mandates no deforestation and safeguards High Conservation Value (HCV) areas, primary forests and regions with significant carbon stocks. It also set a “No Deforestation” cut-off date of Dec 31, 2019.
Central to this discourse is the role of biodiversity conservation in oil palm plantations. According to the Malaysian Palm Oil Council (MPOC), palm oil companies in the country are increasingly integrating biodiversity conservation into their operations, reflecting a broader awareness of the link between healthy ecosystems and sustainable agriculture.
By adhering to MSPO standards, these companies demonstrate their commitment to environmental stewardship and responsible industry practices. Indeed, there has been a growing recognition among Malaysian palm oil companies of the need to balance agricultural productivity with environmental responsibility.
Key initiatives for biodiversity conservation
Malaysian palm oil companies are undertaking a variety of initiatives to conserve biodiversity in their plantations and surrounding landscapes. These initiatives are designed to promote environmental stewardship and preserve wildlife and plant species in the palm oil landscapes.
One of the primary strategies employed is the preservation of existing natural habitats. Palm oil companies are setting aside areas of primary forest, wetlands and other ecologically sensitive zones in and around their plantations. The efforts of the Sawit Kinabalu Group (SKG) — the investment arm of the Sabah government in the oil palm industry — at the Sungai Pin Conservation Area (SPnCA) showcase a comprehensive approach to habitat enhancement, biodiversity protection and community engagement.
The SPnCA, a large-scale voluntary conservation area established by SKG, encompasses 2,632ha, representing 42% of the Sungai Pin Estate. This dedicated area allows the implementation of a robust Conservation Area Management Plan (CAMP), developed in collaboration with the Sabah Forestry Department in 2019. CAMP ensures a science-based and well-coordinated approach to conservation activities.
Malaysian palm oil companies are undertaking a variety of initiatives to conserve biodiversity in their plantations and surrounding landscapes. These initiatives are designed to promote environmental stewardship and preserve wildlife and plant species in the palm oil landscapes.
One of the primary strategies employed is the preservation of existing natural habitats. Palm oil companies are setting aside areas of primary forest, wetlands and other ecologically sensitive zones in and around their plantations. The efforts of the Sawit Kinabalu Group (SKG) — the investment arm of the Sabah government in the oil palm industry — at the Sungai Pin Conservation Area (SPnCA) showcase a comprehensive approach to habitat enhancement, biodiversity protection and community engagement.
The SPnCA, a large-scale voluntary conservation area established by SKG, encompasses 2,632ha, representing 42% of the Sungai Pin Estate. This dedicated area allows the implementation of a robust Conservation Area Management Plan (CAMP), developed in collaboration with the Sabah Forestry Department in 2019. CAMP ensures a science-based and well-coordinated approach to conservation activities. More The EdgeMY
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Tech key to reducing Scope 3 palm oil emissions in Malaysia amid increasing regulation: industry watchers
Beyond adapting to new regulations on sustainability and deforestation, the palm oil industry also needs to leverage technology to reduce Scope 3 emissions and enhance product traceability
Employing better technology to trace emissions within supply chains may prove most effective for Malaysian palm oil companies and smallholders involved to decarbonise in the short and long term amid increasingly stringent global regulations, according to industry watchers.
Palm oil, for one, is a major commodity and economic driver in Southeast Asia. In Indonesia, it contributes roughly 3.5 per cent to the national gross domestic product and around 3 per cent to Malaysia’s GDP. Both nations are responsible for around 84 per cent of the world’s palm oil, with Indonesia alone generating 43.5 million metric tons and Malaysia producing more than 19 million metric tons in 2020.
Despite being a source of economic growth, palm oil cultivation has been linked to deforestation for years, and blamed for environmental degradation, threats to biodiversity, and a contributor to climate change since forests are key carbon sinks.
The palm oil supply chain involves five key stages – production, where oil palm trees are grown on large-scale plantations owned by companies and by smallholder farmers; processing, where fresh fruit bunches are processed into crude palm oil and crude palm kernel oil at mills located near the plantations; and refining, where the oils are transported to refineries to be processed into refined oils, fats, and oleochemicals.
The last two stages involve manufacturing, where refined palm oil is used as an ingredient in a wide range of food, cosmetic, and biofuel products by consumer goods manufacturers; and consumption, where end products containing palm oil are sold to consumers through retailers and brands. More Eco Business
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Oct 7, 2024
UFOP welcomes postponement of European Deforestation Directive
The Union for the Promotion of Oil and Protein Crops (UFOP) has welcomed the postponement of the implementation of the European Deforestation Directive (EUDR) announced by Commission President Ursula von der Leyen.
The agricultural sector needs this time corridor in order to be able to adapt to the additional obligations to provide evidence, UFOP added.
Against this backdrop, the association has also welcomed the initiative of Federal Agriculture Minister Cem Özdemir, which has contributed to this success.
The UFOP said that agricultural businesses already have to submit an annual self-declaration as part of the biofuel certification process.
In Germany and the European Union, this concerns the slow but steadily growing area of soya beans as part of the national and EU protein strategy. UFOP emphasises that unnecessary bureaucratic regulations that hinder acceptance must therefore be avoided and simplifications must be introduced.
In principle, the question of acceptance is of international importance because the producer countries and import companies actually addressed by this directive in the case of vegetable oil and oilseeds either reject technical evidence based on geodata or, in view of the large number of small producers, for example in palm oil production, also reach the limits of practical implementation. Against this backdrop, UFOP warns that this directive will not make an effective contribution to the rigorous protection of rainforests and biotopes - ‘whoever clears the land stays out’ - if internationally binding rules are not created at the same time in order to avoid displacement effects. UFOP points out that China alone imports over 100 million tonnes of soybeans from Brazil every year, the equivalent of around 28 million hectares of arable land (Germany: 11.8 million hectares). Biofuels News
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October 04, 2024
Indonesia pushes for revision of EU deforestation regulation
Jakarta (ANTARA) - The Indonesian government has called for the revision of the European Union Deforestation Regulation (EUDR), citing concerns about the regulation.
The European Commission has announced plans to postpone the policy's implementation by one year.
According to Coordinating Minister for Economic Affairs, Airlangga Hartarto, the postponement is the result of pressure from Indonesia, bipartisanship from the United States in the Congress and the Senate, the German Chancellor, and Secretary General of the World Trade Organization (WTO).
"For Indonesia, what is important is the implementation of the policy, not for it just being postponed," he said here on Thursday.
Since last year, Indonesia has sought a discussion on the implementation of the EUDR. Based on the request, a joint task force was formed involving Indonesia, the EU, and Malaysia.
Hartarto said that Indonesia has a number of concerns regarding the regulation, including the request of the EU for Indonesia to provide detailed geo-location.
Indonesia has a national dashboard to check commodities, which can also be accessed by the EU, he informed.
"If our country is accessed coordinately by foreigners, this can become a security issue. That is what we object to. We already have a pattern, but they still object to the pattern we created," Hartarto explained.
In addition, Indonesia has expressed its concern to the EU, which is seeming to act like a rating agency.
This role, according to him, is being carried out by other institutions that are engaged in the rating field.
Another concern is related to the issue of standardization.
Hartarto argued that Indonesia has a sustainability standard called the Indonesia Sustainable Palm Oil (ISPO), Malaysia has the Malaysian Sustainable Palm Oil (MSPO), and Europe has the Roundtable on Sustainable Palm Oil (RSPO).
However, the EUDR does not recognize standards other than RSPO.
"Those are three issues that Indonesia and Malaysia continue to fight for in the joint task force," he said.
According to the initial plan, the EUDR was scheduled to come into effect on December 30, 2024.
The regulation will prohibit the sale of forest derivative products if companies cannot prove that their goods did not contribute to deforestation. Antara News
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Top deforestation drivers could dodge ‘high risk’ tag under EU benchmarking
Recently published documents show that major deforestation drivers may avoid being labelled ‘high risk’ by the EU, as the Commission will instead focus on countries sanctioned by the UN Security Council or the EU.
Countries responsible for much of global deforestation may avoid being labelled "high risk" under the EU’s new anti-deforestation regulation (EUDR), according to documents released on Wednesday (2 October) by the European Commission.
The regulation seeks to ban agricultural commodities linked to deforestation—such as cocoa, coffee, livestock, soy, palm oil, timber, and rubber—from the EU market, along with derived products like chocolate, furniture, and leather goods.
As part of the new rules, the Commission was required to classify countries as high, standard, or low risk based on their deforestation levels—a move that sparked diplomatic tension even before its release.
A high-risk brings bad publicity but also more bureaucracy, while low-risk countries face simpler procedures and fewer inspections.
However, some of the world’s largest producers of these commodities may escape the "high risk" category. The methodology suggests that countries sanctioned by the UN Security Council or the EU, such as Iran, Russia, Iraq, or Libya, will be classified as high risk – a criteria that has little to do with clearing forests.
“This category pays special attention to countries subject to UN Security Council and EU Council sanctions,” reads the document. The Commission justified this by citing "particular difficulties" in conducting due diligence in these nations.
Fanny Gauttier, public affairs lead at the Rainforest Alliance, criticised this as a "toned-down" interpretation designed to ease concerns from producing countries, warning it could undermine the credibility of the assessment. “We’ll need to see the final assessment to confirm this interpretation,” she said. The final benchmarking will be published by June 2025, according to the Commission.
The Commission also revealed that most countries will likely be categorized as low risk, and stresses that the priority would be to engage with those in the "standard" category - marking a shift from the regulation’s original focus on high-risk countries.
Countries labelled as "standard" will receive tailored approaches depending on whether they fall at the lower or higher end of the risk level - creating two “subcategories” of sorts.
Other highlights
Stakeholders and EU member states generally welcomed the guidelines published alongside the document. For example, Finland, which has 75% forest coverage, was reassured that cutting trees for animal barns wouldn’t prevent livestock products from being sold in the EU.
"The new guidelines provide flexibility, allowing barn investments to continue," said Finnish Agriculture Minister Sari Essayah. The Commission clarified converting forests to agricultural use to comply with animal welfare requirements would not be considered as deforestation – addressing Helsinki’s concerns.
The Commission also clarified that small-scale tree cutting for extensive livestock farming would only violate deforestation rules if it involves forested areas, as defined in the regulation.
However, other member states remain concerned. “We’re happy with the proposed delay,” an EU diplomat told Euractiv. “But that doesn’t appease our concerns about significant administrative burden for businesses.”
Additionally, the guidelines addressed "declarations in excess," allowing companies to declare larger land areas for production, provided they trace products to specific plots and avoid mixing with non-compliant sources.
Nevertheless, those that declare extra land must ensure all plots meet legal standards. "This confirms that traceability cannot be bypassed," said Gauttier.
[Edited by Angelo Di Mambro/Owen Morgan] Euractiv
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‘Victory for common sense’: Malaysian Palm Oil Council lauds EU deforestation law delay
BANGKOK, Oct 3 — Producers from Malaysia’s palm oil industry to Vietnam’s coffee sector on Thursday welcomed a European Union decision to delay implementation of its anti-deforestation rules.
The year-long delay triggered immediate outcry from environmental groups, but the legislation had faced substantial pushback from many governments and industries.
They criticised the law, which intended to prevent the import of products that drive deforestation, for confusing rules and complex documentation requirements that they said would particularly burden small-scale farmers.
The EU’s decision to delay was a relief, said Trinh Duc Minh, chair of the Buon Ma Thuot Coffee Association.
“The extension of the timeline is necessary and reasonable,” he told AFP, though he noted coffee prices that rose as companies stockpiled before the deadline might now drop.
Nguyen Xuan Loi, head of Vietnamese coffee exporter An Thai Group, also hailed the news as a “positive move”.
“In reality, Vietnam has been strictly managing deforestation issues,” he told AFP.
“There are hardly any violations anymore.”
Global Forest Watch says Vietnam’s primary forest loss has fallen from a peak in 2016, but the country still lost about 16,500 hectares in 2023, with commodity-driven deforestation a leading cause.
EU imports accounted for 16 percent of deforestation linked to global trade in 2017, according to WWF.
When the law was adopted in 2023 it was hailed as a major breakthrough to protect nature and the climate.
It requires exporters of cocoa, soy, timber, cattle, palm oil, rubber, coffee — and items derived from those products — to certify their goods were not produced on land deforested after December 2020.
‘Welcome relief’
Countries including Malaysia and Indonesia have vocally opposed the new rules and the chorus of criticism grew louder as the December implementation deadline neared, with Brazil and the United States among those voicing concern.
Malaysia’s Palm Oil Council welcomed the proposed delay as a “victory for common sense”. Malay Mail
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Indonesia and EU Split on Palm Oil Traceability
by: Mansuetus Darto, Founder and National Board of Palm Oil Farmers Union
On September 12, 2024, I attended a meeting of the Joint Task Force (JTF) between the European Union Commission, the Government of Indonesia, and the Government of Malaysia. All civil society representatives from Indonesia and Malaysia attended online.
This Task Force was formed in response to the European Union’s new European Union Deforestation Regulation (EUDR), aimed at ensuring that products such as palm oil, coffee, chocolate, rubber and wood entering EU countries do not come from deforested land. The EUDR was initially set to take effect in January 2025, but the European Commission has proposed extending the deadline by 12 months, with large companies required to comply by December 30, 2025, and micro- and small enterprises by June 30, 2026. Similar regulations have also been implemented by the UK and the United States.
During the meeting, the Indonesian Government highlighted its efforts to comply with the principles of transparency and traceability, or traceability in palm oil production, from plantations to finished product. The government also discussed its plan to issue a Business Registration Certificate (STDB) for small farmers.
On June 29, 2023, the EUDR regulation came into effect, giving businesses 18 months to prepare. But during those 18 months, the government was busy advocating for rejection. Instead of working on improving governance that compounds with the EUDR.
Despite the inter-governmental nature of the JTF meeting, representatives of the palm oil industry such as the Indonesian Palm Oil Entrepreneurs Association and large corporations were present, raising concerns about corporate influence on decisions related to traceability, deforestation, and transparency.
The issue of traceability is central to the EUDR, with the EU requiring every product to be traceable to the point where the fruit was produced. The Indonesian Government presented its national dashboard system, which would provide data related to polygons and coordinate points.
However, a debate emerged around transparency, as the EU requires the use of its own traceability system for products exported to the EU, whereas Indonesia proposed that the EU use data from Indonesia’s national dashboard. More Tempo
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The high price of idealism: Why pragmatism must lead the climate fight
(Oct 3): We live in a time where the price of being cheap is too high and being less bad does not create value anymore.
Abating climate change or weaning societies off fossil fuels is a noble mission, which should be pursued albeit pragmatically. However, policy makers, activists and, for that matter, journalists should also not be allowed to turn this mission into a quixotic crusade where we, like lemmings, are expected to jump off a cliff focusing entirely on optics and less so on real outcomes.
This is especially important amidst the relentless stream of news feed and social media postings, which have worsened our ability to distinguish data from narrative and separate the noise from the signal.
Contrary to what mainstream media portrays, data will reveal that ever since the first Conference of the Parties meeting in Berlin in 1995, the global consumption of oil has risen by 75%, usage of coal has increased by 60% and gas by 50%. Fossil fuels therefore still account for 82% of the global primary energy demand emitting over 70% of the world’s CO2 emissions.
Has the cart somehow been placed in front of the horse? Let us stop pretending and face the reality by acknowledging that meeting the climate pledge of keeping the temperature rise to 1.5°C over pre-industrial levels is regretfully not going to happen as long as fossil fuels remain the most convenient and cost-effective way of propelling societies forward. Indeed, the International Energy Agency has lately stated that global demand for oil will have to fall to 54.8 million barrels a day from the present 100 million barrels of oil per day in order to curb the rise of global temperatures. This is just not going to happen as the math does not add up.
The EU’s Green Deal aimed at transforming Europe’s economy to reach net zero emissions by 2050 is another well intentioned goal, but also in need of a major re-think.
The aim of the EU’s Deforestation Regulation (EUDR) compels businesses to demonstrate that products imported into the EU — such as cocoa, coffee, timber, livestock, palm and soy — are not sourced from land that was deforested after December 31, 2020, requiring companies to provide geolocation data for farms as proof of compliance. However, the consequences of implementing this ruling will disrupt supply chains excluding millions of smallholders around the world from the EU market, thereby impacting their livelihoods.
The EUDR under the EU’s Green deal therefore risks pushing millions of smallholders further back into darkness — instead of forward and into the light. This is wrong and it is unjust.
Abating climate change or weaning societies off fossil fuels is a noble mission, which should be pursued albeit pragmatically. However, policy makers, activists and, for that matter, journalists should also not be allowed to turn this mission into a quixotic crusade where we, like lemmings, are expected to jump off a cliff focusing entirely on optics and less so on real outcomes.
This is especially important amidst the relentless stream of news feed and social media postings, which have worsened our ability to distinguish data from narrative and separate the noise from the signal.
Contrary to what mainstream media portrays, data will reveal that ever since the first Conference of the Parties meeting in Berlin in 1995, the global consumption of oil has risen by 75%, usage of coal has increased by 60% and gas by 50%. Fossil fuels therefore still account for 82% of the global primary energy demand emitting over 70% of the world’s CO2 emissions.
Has the cart somehow been placed in front of the horse? Let us stop pretending and face the reality by acknowledging that meeting the climate pledge of keeping the temperature rise to 1.5°C over pre-industrial levels is regretfully not going to happen as long as fossil fuels remain the most convenient and cost-effective way of propelling societies forward. Indeed, the International Energy Agency has lately stated that global demand for oil will have to fall to 54.8 million barrels a day from the present 100 million barrels of oil per day in order to curb the rise of global temperatures. This is just not going to happen as the math does not add up.
The EU’s Green Deal aimed at transforming Europe’s economy to reach net zero emissions by 2050 is another well intentioned goal, but also in need of a major re-think.
The aim of the EU’s Deforestation Regulation (EUDR) compels businesses to demonstrate that products imported into the EU — such as cocoa, coffee, timber, livestock, palm and soy — are not sourced from land that was deforested after December 31, 2020, requiring companies to provide geolocation data for farms as proof of compliance. However, the consequences of implementing this ruling will disrupt supply chains excluding millions of smallholders around the world from the EU market, thereby impacting their livelihoods.
The EUDR under the EU’s Green deal therefore risks pushing millions of smallholders further back into darkness — instead of forward and into the light. This is wrong and it is unjust.
The Malaysian Palm Oil Council, including the private sector, have over the last two years emphatically stated that it is high time for the EU Commission to pull the handbrakes before the EUDR vehicle crashes at full speed into a wall. Of late we have even seen the Biden Administration in the USA, the German Chancellor Olaf Scholz and 17 developing and middle-income nations from Asia, Africa and Latin America appealing for the EUDR to be deferred as it is unworkable in its current guise.
Whilst most larger and medium-sized Malaysian oil palm growers are fully compliant with the EU’s Deforestation Regulation, thereby supporting the goal of ending deforestation, we must not fail to appreciate the plight of the millions of vulnerable smallholders as they often do not have the resources to overcome the bureaucracy associated with the implementation of the EUDR. Yet the smallholder communities make up about 27% of Malaysia’s palm producers, 45% of Indonesia’s palm producers and over 80% of Thailand’s palm producers. The same picture applies to the estimated 25 million coffee farmers around the world where 80% are smallholder producers working on plots of land smaller than five hectares and where the majority of production labour is provided by women. What will happen is that when the big producers or buyers are unable to do the full traceability required by EUDR right down to the small farmers, they will simply cut them off. This is the reality.
Palm producers are far from perfect and have been subject to much criticism in terms of deforestation. Much of this criticism has been valid but palm growers, notably in Malaysia, have over the last 10-15 years taken a leap of faith and committed themselves to more sustainable practices including pledges of zero deforestation as well as decarbonizing their supply chains.
Growers who have seen the light of sustainability have acknowledged their mistakes of the past and are now dealing with the present set of demands failing which they will have absolutely no role in painting the future.
The outcome has been that Malaysia’s total area under oil palm has over the last three years shrunk by about 200,000 hectares, effectively categorizing Malaysia as a 'low risk' country when it comes to deforestation. During the same time-frame soybean expansion in just Brazil has increased by six million hectares — which by the way is more than the entire landbank planted up with oil palms in Malaysia over the last 100 years. The EdgeMY
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Indonesia doubles funding for palm oil rejuvenation program with added bonus of deforestation free
Nusa Dua, SAWIT INDONESIA – The government will increase farmer participation in the People's Oil Palm Rejuvenation Program by simplifying the requirements.
"Currently, the government is formulating a policy to accelerate the PSR Program after increasing the PSR funds from IDR 30 million/ha to IDR 60 million/ha," said Dida Gardera , Deputy for Food and Agribusiness Coordination of the Coordinating Ministry for the Economy of the Republic of Indonesia on the sidelines of the Indonesian Palm Oil Research Week in Nusa Dua, Bali, Thursday (October 3, 2024).
Dida said that the verification of PSR application documents will be made shorter. In addition, a certificate of freedom from the Forest Area issued by the Ministry of Environment and Forestry and a certificate of freedom from HGU land issued by the Ministry of ATR/BPN are no longer required.
According to Dida, the two conditions will be replaced with a statement letter from the plantation owner explaining that they are free from Forest Areas and/or in accordance with the RTRW, as well as free from HGU land.
Currently, the distribution of PSR Funds has reached IDR 9.66 trillion until September 20, 2024 to 154,866 Planters with a land area of 344,792 Ha. Dida added that in order for PSR Funds to be appropriate and targeted, it is necessary to support research funding from BPDPKS related to superior oil palm seeds and the application of technology that supports the implementation of the PSR Program. Sawit Indonesia
Indonesia pushes for revision of EU deforestation regulation
Jakarta (ANTARA) - The Indonesian government has called for the revision of the European Union Deforestation Regulation (EUDR), citing concerns about the regulation.
The European Commission has announced plans to postpone the policy's implementation by one year.
According to Coordinating Minister for Economic Affairs, Airlangga Hartarto, the postponement is the result of pressure from Indonesia, bipartisanship from the United States in the Congress and the Senate, the German Chancellor, and Secretary General of the World Trade Organization (WTO).
"For Indonesia, what is important is the implementation of the policy, not for it just being postponed," he said here on Thursday.
Since last year, Indonesia has sought a discussion on the implementation of the EUDR. Based on the request, a joint task force was formed involving Indonesia, the EU, and Malaysia.
Hartarto said that Indonesia has a number of concerns regarding the regulation, including the request of the EU for Indonesia to provide detailed geo-location.
Indonesia has a national dashboard to check commodities, which can also be accessed by the EU, he informed.
"If our country is accessed coordinately by foreigners, this can become a security issue. That is what we object to. We already have a pattern, but they still object to the pattern we created," Hartarto explained.
In addition, Indonesia has expressed its concern to the EU, which is seeming to act like a rating agency.
This role, according to him, is being carried out by other institutions that are engaged in the rating field.
Another concern is related to the issue of standardization.
Hartarto argued that Indonesia has a sustainability standard called the Indonesia Sustainable Palm Oil (ISPO), Malaysia has the Malaysian Sustainable Palm Oil (MSPO), and Europe has the Roundtable on Sustainable Palm Oil (RSPO).
However, the EUDR does not recognize standards other than RSPO.
"Those are three issues that Indonesia and Malaysia continue to fight for in the joint task force," he said.
According to the initial plan, the EUDR was scheduled to come into effect on December 30, 2024.
The regulation will prohibit the sale of forest derivative products if companies cannot prove that their goods did not contribute to deforestation. Antara News
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Top deforestation drivers could dodge ‘high risk’ tag under EU benchmarking
Recently published documents show that major deforestation drivers may avoid being labelled ‘high risk’ by the EU, as the Commission will instead focus on countries sanctioned by the UN Security Council or the EU.
Countries responsible for much of global deforestation may avoid being labelled "high risk" under the EU’s new anti-deforestation regulation (EUDR), according to documents released on Wednesday (2 October) by the European Commission.
The regulation seeks to ban agricultural commodities linked to deforestation—such as cocoa, coffee, livestock, soy, palm oil, timber, and rubber—from the EU market, along with derived products like chocolate, furniture, and leather goods.
As part of the new rules, the Commission was required to classify countries as high, standard, or low risk based on their deforestation levels—a move that sparked diplomatic tension even before its release.
A high-risk brings bad publicity but also more bureaucracy, while low-risk countries face simpler procedures and fewer inspections.
However, some of the world’s largest producers of these commodities may escape the "high risk" category. The methodology suggests that countries sanctioned by the UN Security Council or the EU, such as Iran, Russia, Iraq, or Libya, will be classified as high risk – a criteria that has little to do with clearing forests.
“This category pays special attention to countries subject to UN Security Council and EU Council sanctions,” reads the document. The Commission justified this by citing "particular difficulties" in conducting due diligence in these nations.
Fanny Gauttier, public affairs lead at the Rainforest Alliance, criticised this as a "toned-down" interpretation designed to ease concerns from producing countries, warning it could undermine the credibility of the assessment. “We’ll need to see the final assessment to confirm this interpretation,” she said. The final benchmarking will be published by June 2025, according to the Commission.
The Commission also revealed that most countries will likely be categorized as low risk, and stresses that the priority would be to engage with those in the "standard" category - marking a shift from the regulation’s original focus on high-risk countries.
Countries labelled as "standard" will receive tailored approaches depending on whether they fall at the lower or higher end of the risk level - creating two “subcategories” of sorts.
Other highlights
Stakeholders and EU member states generally welcomed the guidelines published alongside the document. For example, Finland, which has 75% forest coverage, was reassured that cutting trees for animal barns wouldn’t prevent livestock products from being sold in the EU.
"The new guidelines provide flexibility, allowing barn investments to continue," said Finnish Agriculture Minister Sari Essayah. The Commission clarified converting forests to agricultural use to comply with animal welfare requirements would not be considered as deforestation – addressing Helsinki’s concerns.
The Commission also clarified that small-scale tree cutting for extensive livestock farming would only violate deforestation rules if it involves forested areas, as defined in the regulation.
However, other member states remain concerned. “We’re happy with the proposed delay,” an EU diplomat told Euractiv. “But that doesn’t appease our concerns about significant administrative burden for businesses.”
Additionally, the guidelines addressed "declarations in excess," allowing companies to declare larger land areas for production, provided they trace products to specific plots and avoid mixing with non-compliant sources.
Nevertheless, those that declare extra land must ensure all plots meet legal standards. "This confirms that traceability cannot be bypassed," said Gauttier.
[Edited by Angelo Di Mambro/Owen Morgan] Euractiv
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‘Victory for common sense’: Malaysian Palm Oil Council lauds EU deforestation law delay
BANGKOK, Oct 3 — Producers from Malaysia’s palm oil industry to Vietnam’s coffee sector on Thursday welcomed a European Union decision to delay implementation of its anti-deforestation rules.
The year-long delay triggered immediate outcry from environmental groups, but the legislation had faced substantial pushback from many governments and industries.
They criticised the law, which intended to prevent the import of products that drive deforestation, for confusing rules and complex documentation requirements that they said would particularly burden small-scale farmers.
The EU’s decision to delay was a relief, said Trinh Duc Minh, chair of the Buon Ma Thuot Coffee Association.
“The extension of the timeline is necessary and reasonable,” he told AFP, though he noted coffee prices that rose as companies stockpiled before the deadline might now drop.
Nguyen Xuan Loi, head of Vietnamese coffee exporter An Thai Group, also hailed the news as a “positive move”.
“In reality, Vietnam has been strictly managing deforestation issues,” he told AFP.
“There are hardly any violations anymore.”
Global Forest Watch says Vietnam’s primary forest loss has fallen from a peak in 2016, but the country still lost about 16,500 hectares in 2023, with commodity-driven deforestation a leading cause.
EU imports accounted for 16 percent of deforestation linked to global trade in 2017, according to WWF.
When the law was adopted in 2023 it was hailed as a major breakthrough to protect nature and the climate.
It requires exporters of cocoa, soy, timber, cattle, palm oil, rubber, coffee — and items derived from those products — to certify their goods were not produced on land deforested after December 2020.
‘Welcome relief’
Countries including Malaysia and Indonesia have vocally opposed the new rules and the chorus of criticism grew louder as the December implementation deadline neared, with Brazil and the United States among those voicing concern.
Malaysia’s Palm Oil Council welcomed the proposed delay as a “victory for common sense”. Malay Mail
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Indonesia and EU Split on Palm Oil Traceability
by: Mansuetus Darto, Founder and National Board of Palm Oil Farmers Union
On September 12, 2024, I attended a meeting of the Joint Task Force (JTF) between the European Union Commission, the Government of Indonesia, and the Government of Malaysia. All civil society representatives from Indonesia and Malaysia attended online.
This Task Force was formed in response to the European Union’s new European Union Deforestation Regulation (EUDR), aimed at ensuring that products such as palm oil, coffee, chocolate, rubber and wood entering EU countries do not come from deforested land. The EUDR was initially set to take effect in January 2025, but the European Commission has proposed extending the deadline by 12 months, with large companies required to comply by December 30, 2025, and micro- and small enterprises by June 30, 2026. Similar regulations have also been implemented by the UK and the United States.
During the meeting, the Indonesian Government highlighted its efforts to comply with the principles of transparency and traceability, or traceability in palm oil production, from plantations to finished product. The government also discussed its plan to issue a Business Registration Certificate (STDB) for small farmers.
On June 29, 2023, the EUDR regulation came into effect, giving businesses 18 months to prepare. But during those 18 months, the government was busy advocating for rejection. Instead of working on improving governance that compounds with the EUDR.
Despite the inter-governmental nature of the JTF meeting, representatives of the palm oil industry such as the Indonesian Palm Oil Entrepreneurs Association and large corporations were present, raising concerns about corporate influence on decisions related to traceability, deforestation, and transparency.
The issue of traceability is central to the EUDR, with the EU requiring every product to be traceable to the point where the fruit was produced. The Indonesian Government presented its national dashboard system, which would provide data related to polygons and coordinate points.
However, a debate emerged around transparency, as the EU requires the use of its own traceability system for products exported to the EU, whereas Indonesia proposed that the EU use data from Indonesia’s national dashboard. More Tempo
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The high price of idealism: Why pragmatism must lead the climate fight
(Oct 3): We live in a time where the price of being cheap is too high and being less bad does not create value anymore.
Abating climate change or weaning societies off fossil fuels is a noble mission, which should be pursued albeit pragmatically. However, policy makers, activists and, for that matter, journalists should also not be allowed to turn this mission into a quixotic crusade where we, like lemmings, are expected to jump off a cliff focusing entirely on optics and less so on real outcomes.
This is especially important amidst the relentless stream of news feed and social media postings, which have worsened our ability to distinguish data from narrative and separate the noise from the signal.
Contrary to what mainstream media portrays, data will reveal that ever since the first Conference of the Parties meeting in Berlin in 1995, the global consumption of oil has risen by 75%, usage of coal has increased by 60% and gas by 50%. Fossil fuels therefore still account for 82% of the global primary energy demand emitting over 70% of the world’s CO2 emissions.
Has the cart somehow been placed in front of the horse? Let us stop pretending and face the reality by acknowledging that meeting the climate pledge of keeping the temperature rise to 1.5°C over pre-industrial levels is regretfully not going to happen as long as fossil fuels remain the most convenient and cost-effective way of propelling societies forward. Indeed, the International Energy Agency has lately stated that global demand for oil will have to fall to 54.8 million barrels a day from the present 100 million barrels of oil per day in order to curb the rise of global temperatures. This is just not going to happen as the math does not add up.
The EU’s Green Deal aimed at transforming Europe’s economy to reach net zero emissions by 2050 is another well intentioned goal, but also in need of a major re-think.
The aim of the EU’s Deforestation Regulation (EUDR) compels businesses to demonstrate that products imported into the EU — such as cocoa, coffee, timber, livestock, palm and soy — are not sourced from land that was deforested after December 31, 2020, requiring companies to provide geolocation data for farms as proof of compliance. However, the consequences of implementing this ruling will disrupt supply chains excluding millions of smallholders around the world from the EU market, thereby impacting their livelihoods.
The EUDR under the EU’s Green deal therefore risks pushing millions of smallholders further back into darkness — instead of forward and into the light. This is wrong and it is unjust.
Abating climate change or weaning societies off fossil fuels is a noble mission, which should be pursued albeit pragmatically. However, policy makers, activists and, for that matter, journalists should also not be allowed to turn this mission into a quixotic crusade where we, like lemmings, are expected to jump off a cliff focusing entirely on optics and less so on real outcomes.
This is especially important amidst the relentless stream of news feed and social media postings, which have worsened our ability to distinguish data from narrative and separate the noise from the signal.
Contrary to what mainstream media portrays, data will reveal that ever since the first Conference of the Parties meeting in Berlin in 1995, the global consumption of oil has risen by 75%, usage of coal has increased by 60% and gas by 50%. Fossil fuels therefore still account for 82% of the global primary energy demand emitting over 70% of the world’s CO2 emissions.
Has the cart somehow been placed in front of the horse? Let us stop pretending and face the reality by acknowledging that meeting the climate pledge of keeping the temperature rise to 1.5°C over pre-industrial levels is regretfully not going to happen as long as fossil fuels remain the most convenient and cost-effective way of propelling societies forward. Indeed, the International Energy Agency has lately stated that global demand for oil will have to fall to 54.8 million barrels a day from the present 100 million barrels of oil per day in order to curb the rise of global temperatures. This is just not going to happen as the math does not add up.
The EU’s Green Deal aimed at transforming Europe’s economy to reach net zero emissions by 2050 is another well intentioned goal, but also in need of a major re-think.
The aim of the EU’s Deforestation Regulation (EUDR) compels businesses to demonstrate that products imported into the EU — such as cocoa, coffee, timber, livestock, palm and soy — are not sourced from land that was deforested after December 31, 2020, requiring companies to provide geolocation data for farms as proof of compliance. However, the consequences of implementing this ruling will disrupt supply chains excluding millions of smallholders around the world from the EU market, thereby impacting their livelihoods.
The EUDR under the EU’s Green deal therefore risks pushing millions of smallholders further back into darkness — instead of forward and into the light. This is wrong and it is unjust.
The Malaysian Palm Oil Council, including the private sector, have over the last two years emphatically stated that it is high time for the EU Commission to pull the handbrakes before the EUDR vehicle crashes at full speed into a wall. Of late we have even seen the Biden Administration in the USA, the German Chancellor Olaf Scholz and 17 developing and middle-income nations from Asia, Africa and Latin America appealing for the EUDR to be deferred as it is unworkable in its current guise.
Whilst most larger and medium-sized Malaysian oil palm growers are fully compliant with the EU’s Deforestation Regulation, thereby supporting the goal of ending deforestation, we must not fail to appreciate the plight of the millions of vulnerable smallholders as they often do not have the resources to overcome the bureaucracy associated with the implementation of the EUDR. Yet the smallholder communities make up about 27% of Malaysia’s palm producers, 45% of Indonesia’s palm producers and over 80% of Thailand’s palm producers. The same picture applies to the estimated 25 million coffee farmers around the world where 80% are smallholder producers working on plots of land smaller than five hectares and where the majority of production labour is provided by women. What will happen is that when the big producers or buyers are unable to do the full traceability required by EUDR right down to the small farmers, they will simply cut them off. This is the reality.
Palm producers are far from perfect and have been subject to much criticism in terms of deforestation. Much of this criticism has been valid but palm growers, notably in Malaysia, have over the last 10-15 years taken a leap of faith and committed themselves to more sustainable practices including pledges of zero deforestation as well as decarbonizing their supply chains.
Growers who have seen the light of sustainability have acknowledged their mistakes of the past and are now dealing with the present set of demands failing which they will have absolutely no role in painting the future.
The outcome has been that Malaysia’s total area under oil palm has over the last three years shrunk by about 200,000 hectares, effectively categorizing Malaysia as a 'low risk' country when it comes to deforestation. During the same time-frame soybean expansion in just Brazil has increased by six million hectares — which by the way is more than the entire landbank planted up with oil palms in Malaysia over the last 100 years. The EdgeMY
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Indonesia doubles funding for palm oil rejuvenation program with added bonus of deforestation free
Nusa Dua, SAWIT INDONESIA – The government will increase farmer participation in the People's Oil Palm Rejuvenation Program by simplifying the requirements.
"Currently, the government is formulating a policy to accelerate the PSR Program after increasing the PSR funds from IDR 30 million/ha to IDR 60 million/ha," said Dida Gardera , Deputy for Food and Agribusiness Coordination of the Coordinating Ministry for the Economy of the Republic of Indonesia on the sidelines of the Indonesian Palm Oil Research Week in Nusa Dua, Bali, Thursday (October 3, 2024).
Dida said that the verification of PSR application documents will be made shorter. In addition, a certificate of freedom from the Forest Area issued by the Ministry of Environment and Forestry and a certificate of freedom from HGU land issued by the Ministry of ATR/BPN are no longer required.
According to Dida, the two conditions will be replaced with a statement letter from the plantation owner explaining that they are free from Forest Areas and/or in accordance with the RTRW, as well as free from HGU land.
Currently, the distribution of PSR Funds has reached IDR 9.66 trillion until September 20, 2024 to 154,866 Planters with a land area of 344,792 Ha. Dida added that in order for PSR Funds to be appropriate and targeted, it is necessary to support research funding from BPDPKS related to superior oil palm seeds and the application of technology that supports the implementation of the PSR Program. Sawit Indonesia
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October 03, 2024
EU Moves to Delay Deforestation Rule After Huge Pushback
(Bloomberg) -- The European Commission moved to postpone a landmark law to tackle global deforestation, submitting to immense pressure from commodity-producing countries and industry.
The commission suggested a 12-month delay to rules aimed at curbing forest clearance in nations that send products such as coffee, cocoa, soy and beef to the bloc, it said Wednesday, confirming an earlier Bloomberg report. Global agricultural heavyweights from Brazil to Indonesia had fiercely criticized the plans on concern they’d hurt smallholder farmers and curtail key exports.
A delay would mark a fresh setback to the European Union’s green push. But it could offer a temporary reprieve for consumers just as extreme weather pushes up crop prices worldwide and revives worries about food inflation.
The extension would allow extra time for parties to get ready, but “in no way puts into question” the objectives of the law, the commission said in a statement. The proposal will need signoff from both the European Parliament and member states, as the regulation was slated to take effect Dec. 30.
“The commission recognizes that three months ahead of the intended implementation date, several global partners have repeatedly expressed concerns about their state of preparedness,” it said. “The state of preparations amongst stakeholders in Europe is also uneven.”
The bloc recently lost its greenest parliament ever, and governments across the continent have faced pressure to soften their environmental ambitions on cost concerns. Member states and industry groups have voiced alarm over the deforestation regulation, warning of impending supply disruptions and inflation.
‘Huge Relief’
“A delay would bring a huge relief to the EU value chains affected, from cocoa to palm oil — and not least to European consumers already affected by a cost-of-living crisis,” said Carlos Mera, an analyst at Rabobank in London.
The rules necessitate complex tracking systems, with importers required to collect precise data to identify the plots of land where the goods were grown. Companies must ensure the products they bring in weren’t made on areas deforested or degraded after 2020.
German farmers’ group DBV welcomed the move to delay.
“The uncertainties caused must now be a reason to fundamentally simplify the regulation again and not to impose additional bureaucracy on countries with effective forest protection,” DBV Secretary-General Bernhard Krüsken said.
Yet environmental groups were dismayed by the proposal, saying the world’s forests urgently need more protection.
European Commission President Ursula von der Leyen “might as well have wielded the chainsaw herself,” Greenpeace EU Forest Policy Director Sébastien Risso said. “People in Europe don’t want deforestation products on their supermarket shelves, but that’s what this delay will give them.”
Coffee, Cocoa
Although grain prices have held in check this year, coffee and cocoa costs have surged amid harvest shortfalls and worries about supply-chain disruptions.
Concerns over compliance with the regulation prompted coffee traders to stock up on beans ahead of the deadline, and a major roaster said European consumers would pay more as the rules kicked in. A cocoa group in September said the law was headed toward “critical failure.”
Robusta coffee futures fell about 6% Wednesday, while soybeans traded down about 1%. Cocoa in New York also dropped.
Peter Liese, a German lawmaker coordinating environmental issues in the European People’s Party, hailed the EU’s proposal, saying he’s sure “the entire Parliament will adopt it in the short term. Entry into force on Dec. 30, 2024, would have plunged us into irresponsible chaos.” BNN Bloomberg
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CEPI: EUDR delay is an occasion to implement a solid framework against deforestation
Oct 3, 2024
The EU Commission today proposed a postponement of the implementation of the Deforestation Regulation (EUDR). The pulp and paper sector welcomes the announcement which offers an occasion to develop a stronger framework to fight deforestation. The European Parliament and EU Council will still need to confirm the delayed phase-in.
The EU Commission has proposed today a draft amendment to postpone by a year the implementation of a regulation aiming to limit deforestation linked to commodities, not only imported but also produced and exported from the European Union.
Long-expected guidelines to the implementation of the EUDR have now been published in conjunction with the announcement, but the information system build by the EU to enforce the tracking of materials and commodities remains to be completed. A benchmarking system assessing the risk level by country is also still pending. Based on these delays, the EU pulp and paper sector represented by Cepi has been vocal about the need for an adequate transition period for the EUDR.
It is not unusual to see transitional implementation periods applied for EU legislation. The predecessor to the EUDR, the EU timber regulation (EUTR) had a 3-year transition period, for a much simpler system. The EUTR remains in place and ensures no wood from illegal sources is placed on the EU market.
EUDR rules state that companies must ensure that their products were not made on areas deforested after 2020. They require passing tracking information along complex value chains, which is particularly challenging when materials are mixed from different sources as is the case for paper. The delay will now allow for a better implementation of the regulation, and stronger impact on deforestation.
Quote by Jori Ringman, Cepi Director General
“The EUDR is too important not to get it right. We certainly do not ignore the environmental crisis and the climate emergency, which the EUDR is designed to help solve. Nor is our industry a source of deforestation. From a business angle, deforestation is major reputational risk which for any industry; our industry also depends on healthy forests for our own future.
“We fully support the objectives of the EUDR, and with this new timeline, we believe that the EU and its trade partners now have a much better chance at finally eradicating deforestation.” CEPI
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Green groups condemn EU moves to delay anti-deforestation rules
Green groups condemn proposed one-year postponement to give exporters more time to prepare
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https://www.ft.com/content/63bb23a1-7b33-4c81-8f03-a43a116b0b60
Brussels intends to postpone a controversial anti-deforestation law for a year in response to growing concerns from trading partners, the European Commission has said.
“Given feedback received from international partners about their state of preparations, the commission also proposes to give concerned parties additional time to prepare,” it said on Wednesday, while publishing compliance guidance for exporters.
The proposal must be approved by the European parliament and member states before the law is supposed to come into force on December 30. It would then be implemented 12 months later.
The law, which is intended to stop European consumers contributing to deforestation, stipulates that commodities including coffee, cocoa, rubber, wood and palm oil cannot enter the bloc if they are grown in deforested areas.
Last week, 27 European business associations representing farmers, magazine publishers and manufacturers called for a delay in its implementation, echoing demands by several countries including Germany. Other industry groups warned of shortages and price rises for staple goods including coffee, soyabeans, beef and rubber.
Manfred Weber, head of the European People’s party, the EU’s biggest political party which counts commission president Ursula von der Leyen as a member, welcomed the move to delay what he called “a bureaucratic monster”.
Leading commodity producers such as Brazil and India have attacked the laws as protectionist, while palm oil growers in Indonesia said they may not be able to comply with the legislation as they are still awaiting government permission to share geolocation information.
But green groups condemned the proposed delay. “It’s an act of nature vandalism that will serve only to drive more industrial destruction of tropical forests, threatening the people and wildlife who depend on them, while pushing climate and nature goals out of reach,” said Julian Oram, senior policy director at the advocacy organisation Mighty Earth.
“This smacks of President Ursula von der Leyen kowtowing to agribusiness lobbyists acting in the interests of their worst members, who whine about not being able to comply in time.”
The commission also set out on Wednesday how it will assess whether countries will be deemed, high, medium or low risk, which dictates how heavily their exports will be policed. “A large majority of countries worldwide will be classified as ‘low-risk’,” it said.
Many producing countries including Thailand, Vietnam and Brazil have already put in place measures they hope will comply with the rules and some companies have urged swift implementation.
But Fediol, which represents the EU vegetable oil industry, privately warned members that importers risked “being non-compliant with the national law of the producing country in order to be compliant with the EU Deforestation Regulation”, according to an internal briefing officials said referred to Indonesia.
“The alternative is that operators may no longer source from such countries, leading to important supply shortages,” it added.
Indonesia is the EU’s biggest palm oil supplier, accounting for about 40 per cent of the bloc’s imports of the commodity, which is used in a range of food, cosmetic and pharmaceutical products. The Indonesian Palm Oil Association, a trade group representing producers, in September asked for permission from the government to share some data for EU deforestation regulation compliance, said chair Eddy Martono.
“We have proposed allowing geolocation sharing specifically for planted or harvested areas, so it’s not the company’s complete geolocation permit map,” he said.
Indonesia has strict laws prohibiting the sharing of data on agricultural land, such as boundaries of specific concessions, citing national security and privacy concerns. The government has also refused to abide by a 2017 order from the country’s supreme court to make public detailed maps and data on palm oil plantations.
The data cannot be shared by growers without permission from the government, according to the association. FT
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Indonesia concerned over EU deforestation law rules, not implementation timeframe
INDONESIA on Thursday (Oct 3) said a proposed European Commission delay in the rollout of its anti-deforestation law was a good step but a more pressing issue was implementation regulations rather than timeframe.
Coordinating minister of the economy, Airlangga Hartarto, said the European Union should cancel its country benchmarking on deforestation, where the commission will classify nations as high, standard or low risk in terms of compliance.
The European Union Deforestation-free Regulation (EUDR) bans EU imports of a range of commodities linked to forest destruction.
Indonesia is the world’s biggest producer and exporter of palm oil and has long been a fierce critic of the law, arguing it was hurting smallholders and discriminated against its palm oil industry.
The EU was Indonesia’s fourth-biggest export market in 2023 and the bloc receives 11.5 per cent of its palm oil exports.
“It’s not about the delay but the implementing regulations,” Airlangga said, adding that any postponement would ideally be for two years, not 12 months.
“The EU has no right to be a rating agency,” he said.
Indonesia’s palm oil association GAPKI, however, welcomed the proposal to postpone the implementation of the law, which it said would give the industry more time to prepare.
“We will continue to advocate against which regulations are burdensome, or not in accordance with Indonesia’s law ... the EU should also understand our conditions,” Gapki chairman Eddy Martono said. Business Times
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DAABON Launches World’s First Carbon Neutral Palm Oil
DAABON UK, part of the DAABON group, a global leader in sustainable agriculture, has launched the world’s first carbon-neutral organic palm oil.
While many palm oil companies worldwide are focused on trying to meet the requirements of the European Union Deforestation Regulation (EUDR), DAABON is not only ready for this regulation but is preparing for the future, with its carbon neutral palm oil.
DAABON’s carbon-neutral organic palm oil has a Life Cycle Assessment (LCA) calculated CO2eq of -977kg per tonne, cradle to gate, making it ideal for palm oil users who are serious about sustainability and cutting their Scope 3 carbon emissions. The carbon footprint of DAABON’s organic palm oil compares extremely favourably to industry averages, including for certified sustainable palm oil.
The carbon-neutral organic palm oil comes from Daabon’s CI Tequendama SAS mill in northern Colombia. The LCA was conducted using Ecopalma’s carbon footprint estimation tool, harmonised with the ISO 14067 standard.
The full LCA can be found at https://www.daabon.com/en/sustainability_studies.
Globally, the average carbon footprint of conventional palm oil stands at +5,340kg CO2eq per tonne, with RSPO certified sustainable segregated palm oil averaging +3,410kg per tonne and best-in-class RSPO certified sustainable palm oil averaging +1,470kg per tonne. The average across DAABON’s two mills is +150kg per tonne.
The palm oil industry is making significant strides in sustainability, driven by voluntary certification schemes like the Roundtable on Sustainable Palm Oil (RSPO) and new legislation like the upcoming European Union Deforestation Regulation (EUDR).
Introducing the first carbon-neutral palm oil represents another huge step forward, as Manuel Davila, MD of DAABON UK and EU, explains:
“Tackling the carbon footprint is the natural next step in making palm oil truly sustainable – and we’re delighted to have achieved this milestone. We genuinely believe that DAABON carbon-neutral palm oil sets the gold standard for sustainability worldwide.
“Our next step is to replicate this at our other refinery, with the eventual goal of making all the palm oil we offer become carbon-negative and climate-positive. Of course, there is still some way to go to cut the emissions associated with onward transport and global shipping – but it’s a fantastic start that will help our customers to cut their Scope 3 emissions and drive significant sustainability improvements.”
DAABON is firmly committed to sustainability, providing fully traceable to the farm, organic, certified sustainable and EUDR-compliant palm oil. The company holds a series of sustainability accreditations, including RSPO, Fair Trade, Regenerative Organic Certification, Organic Certification, and Non-GMO Project.
Today, as a signatory of The Climate Pledge, DAABON is committed to having net zero carbon emissions by 2040, exemplifying its ongoing commitment to combat climate change. Response Source/PR
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Unsaturated vs saturated fats, Dietary Guidelines on dairy, meat & plant-based oils
02-Oct-2024 By Deniz Ataman
The Dietary Guidelines Advisory Committee (DGAC) determined the relationships between saturated fat and cardiovascular disease (CVD) and the roles of dairy, red meat and plant-based oils with findings from last week’s meeting indicating benefits of reducing saturated fat intake, though many comparisons lacked sufficient evidence for definitive conclusions.
https://www.foodnavigator-usa.com/Article/2024/10/02/unsaturated-vs-saturated-fats-dietary-guidelines-on-dairy-meat-plant-based-oils
EU Moves to Delay Deforestation Rule After Huge Pushback
(Bloomberg) -- The European Commission moved to postpone a landmark law to tackle global deforestation, submitting to immense pressure from commodity-producing countries and industry.
The commission suggested a 12-month delay to rules aimed at curbing forest clearance in nations that send products such as coffee, cocoa, soy and beef to the bloc, it said Wednesday, confirming an earlier Bloomberg report. Global agricultural heavyweights from Brazil to Indonesia had fiercely criticized the plans on concern they’d hurt smallholder farmers and curtail key exports.
A delay would mark a fresh setback to the European Union’s green push. But it could offer a temporary reprieve for consumers just as extreme weather pushes up crop prices worldwide and revives worries about food inflation.
The extension would allow extra time for parties to get ready, but “in no way puts into question” the objectives of the law, the commission said in a statement. The proposal will need signoff from both the European Parliament and member states, as the regulation was slated to take effect Dec. 30.
“The commission recognizes that three months ahead of the intended implementation date, several global partners have repeatedly expressed concerns about their state of preparedness,” it said. “The state of preparations amongst stakeholders in Europe is also uneven.”
The bloc recently lost its greenest parliament ever, and governments across the continent have faced pressure to soften their environmental ambitions on cost concerns. Member states and industry groups have voiced alarm over the deforestation regulation, warning of impending supply disruptions and inflation.
‘Huge Relief’
“A delay would bring a huge relief to the EU value chains affected, from cocoa to palm oil — and not least to European consumers already affected by a cost-of-living crisis,” said Carlos Mera, an analyst at Rabobank in London.
The rules necessitate complex tracking systems, with importers required to collect precise data to identify the plots of land where the goods were grown. Companies must ensure the products they bring in weren’t made on areas deforested or degraded after 2020.
German farmers’ group DBV welcomed the move to delay.
“The uncertainties caused must now be a reason to fundamentally simplify the regulation again and not to impose additional bureaucracy on countries with effective forest protection,” DBV Secretary-General Bernhard Krüsken said.
Yet environmental groups were dismayed by the proposal, saying the world’s forests urgently need more protection.
European Commission President Ursula von der Leyen “might as well have wielded the chainsaw herself,” Greenpeace EU Forest Policy Director Sébastien Risso said. “People in Europe don’t want deforestation products on their supermarket shelves, but that’s what this delay will give them.”
Coffee, Cocoa
Although grain prices have held in check this year, coffee and cocoa costs have surged amid harvest shortfalls and worries about supply-chain disruptions.
Concerns over compliance with the regulation prompted coffee traders to stock up on beans ahead of the deadline, and a major roaster said European consumers would pay more as the rules kicked in. A cocoa group in September said the law was headed toward “critical failure.”
Robusta coffee futures fell about 6% Wednesday, while soybeans traded down about 1%. Cocoa in New York also dropped.
Peter Liese, a German lawmaker coordinating environmental issues in the European People’s Party, hailed the EU’s proposal, saying he’s sure “the entire Parliament will adopt it in the short term. Entry into force on Dec. 30, 2024, would have plunged us into irresponsible chaos.” BNN Bloomberg
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CEPI: EUDR delay is an occasion to implement a solid framework against deforestation
Oct 3, 2024
The EU Commission today proposed a postponement of the implementation of the Deforestation Regulation (EUDR). The pulp and paper sector welcomes the announcement which offers an occasion to develop a stronger framework to fight deforestation. The European Parliament and EU Council will still need to confirm the delayed phase-in.
The EU Commission has proposed today a draft amendment to postpone by a year the implementation of a regulation aiming to limit deforestation linked to commodities, not only imported but also produced and exported from the European Union.
Long-expected guidelines to the implementation of the EUDR have now been published in conjunction with the announcement, but the information system build by the EU to enforce the tracking of materials and commodities remains to be completed. A benchmarking system assessing the risk level by country is also still pending. Based on these delays, the EU pulp and paper sector represented by Cepi has been vocal about the need for an adequate transition period for the EUDR.
It is not unusual to see transitional implementation periods applied for EU legislation. The predecessor to the EUDR, the EU timber regulation (EUTR) had a 3-year transition period, for a much simpler system. The EUTR remains in place and ensures no wood from illegal sources is placed on the EU market.
EUDR rules state that companies must ensure that their products were not made on areas deforested after 2020. They require passing tracking information along complex value chains, which is particularly challenging when materials are mixed from different sources as is the case for paper. The delay will now allow for a better implementation of the regulation, and stronger impact on deforestation.
Quote by Jori Ringman, Cepi Director General
“The EUDR is too important not to get it right. We certainly do not ignore the environmental crisis and the climate emergency, which the EUDR is designed to help solve. Nor is our industry a source of deforestation. From a business angle, deforestation is major reputational risk which for any industry; our industry also depends on healthy forests for our own future.
“We fully support the objectives of the EUDR, and with this new timeline, we believe that the EU and its trade partners now have a much better chance at finally eradicating deforestation.” CEPI
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Green groups condemn EU moves to delay anti-deforestation rules
Green groups condemn proposed one-year postponement to give exporters more time to prepare
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Brussels intends to postpone a controversial anti-deforestation law for a year in response to growing concerns from trading partners, the European Commission has said.
“Given feedback received from international partners about their state of preparations, the commission also proposes to give concerned parties additional time to prepare,” it said on Wednesday, while publishing compliance guidance for exporters.
The proposal must be approved by the European parliament and member states before the law is supposed to come into force on December 30. It would then be implemented 12 months later.
The law, which is intended to stop European consumers contributing to deforestation, stipulates that commodities including coffee, cocoa, rubber, wood and palm oil cannot enter the bloc if they are grown in deforested areas.
Last week, 27 European business associations representing farmers, magazine publishers and manufacturers called for a delay in its implementation, echoing demands by several countries including Germany. Other industry groups warned of shortages and price rises for staple goods including coffee, soyabeans, beef and rubber.
Manfred Weber, head of the European People’s party, the EU’s biggest political party which counts commission president Ursula von der Leyen as a member, welcomed the move to delay what he called “a bureaucratic monster”.
Leading commodity producers such as Brazil and India have attacked the laws as protectionist, while palm oil growers in Indonesia said they may not be able to comply with the legislation as they are still awaiting government permission to share geolocation information.
But green groups condemned the proposed delay. “It’s an act of nature vandalism that will serve only to drive more industrial destruction of tropical forests, threatening the people and wildlife who depend on them, while pushing climate and nature goals out of reach,” said Julian Oram, senior policy director at the advocacy organisation Mighty Earth.
“This smacks of President Ursula von der Leyen kowtowing to agribusiness lobbyists acting in the interests of their worst members, who whine about not being able to comply in time.”
The commission also set out on Wednesday how it will assess whether countries will be deemed, high, medium or low risk, which dictates how heavily their exports will be policed. “A large majority of countries worldwide will be classified as ‘low-risk’,” it said.
Many producing countries including Thailand, Vietnam and Brazil have already put in place measures they hope will comply with the rules and some companies have urged swift implementation.
But Fediol, which represents the EU vegetable oil industry, privately warned members that importers risked “being non-compliant with the national law of the producing country in order to be compliant with the EU Deforestation Regulation”, according to an internal briefing officials said referred to Indonesia.
“The alternative is that operators may no longer source from such countries, leading to important supply shortages,” it added.
Indonesia is the EU’s biggest palm oil supplier, accounting for about 40 per cent of the bloc’s imports of the commodity, which is used in a range of food, cosmetic and pharmaceutical products. The Indonesian Palm Oil Association, a trade group representing producers, in September asked for permission from the government to share some data for EU deforestation regulation compliance, said chair Eddy Martono.
“We have proposed allowing geolocation sharing specifically for planted or harvested areas, so it’s not the company’s complete geolocation permit map,” he said.
Indonesia has strict laws prohibiting the sharing of data on agricultural land, such as boundaries of specific concessions, citing national security and privacy concerns. The government has also refused to abide by a 2017 order from the country’s supreme court to make public detailed maps and data on palm oil plantations.
The data cannot be shared by growers without permission from the government, according to the association. FT
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Indonesia concerned over EU deforestation law rules, not implementation timeframe
INDONESIA on Thursday (Oct 3) said a proposed European Commission delay in the rollout of its anti-deforestation law was a good step but a more pressing issue was implementation regulations rather than timeframe.
Coordinating minister of the economy, Airlangga Hartarto, said the European Union should cancel its country benchmarking on deforestation, where the commission will classify nations as high, standard or low risk in terms of compliance.
The European Union Deforestation-free Regulation (EUDR) bans EU imports of a range of commodities linked to forest destruction.
Indonesia is the world’s biggest producer and exporter of palm oil and has long been a fierce critic of the law, arguing it was hurting smallholders and discriminated against its palm oil industry.
The EU was Indonesia’s fourth-biggest export market in 2023 and the bloc receives 11.5 per cent of its palm oil exports.
“It’s not about the delay but the implementing regulations,” Airlangga said, adding that any postponement would ideally be for two years, not 12 months.
“The EU has no right to be a rating agency,” he said.
Indonesia’s palm oil association GAPKI, however, welcomed the proposal to postpone the implementation of the law, which it said would give the industry more time to prepare.
“We will continue to advocate against which regulations are burdensome, or not in accordance with Indonesia’s law ... the EU should also understand our conditions,” Gapki chairman Eddy Martono said. Business Times
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DAABON Launches World’s First Carbon Neutral Palm Oil
DAABON UK, part of the DAABON group, a global leader in sustainable agriculture, has launched the world’s first carbon-neutral organic palm oil.
While many palm oil companies worldwide are focused on trying to meet the requirements of the European Union Deforestation Regulation (EUDR), DAABON is not only ready for this regulation but is preparing for the future, with its carbon neutral palm oil.
DAABON’s carbon-neutral organic palm oil has a Life Cycle Assessment (LCA) calculated CO2eq of -977kg per tonne, cradle to gate, making it ideal for palm oil users who are serious about sustainability and cutting their Scope 3 carbon emissions. The carbon footprint of DAABON’s organic palm oil compares extremely favourably to industry averages, including for certified sustainable palm oil.
The carbon-neutral organic palm oil comes from Daabon’s CI Tequendama SAS mill in northern Colombia. The LCA was conducted using Ecopalma’s carbon footprint estimation tool, harmonised with the ISO 14067 standard.
The full LCA can be found at https://www.daabon.com/en/sustainability_studies.
Globally, the average carbon footprint of conventional palm oil stands at +5,340kg CO2eq per tonne, with RSPO certified sustainable segregated palm oil averaging +3,410kg per tonne and best-in-class RSPO certified sustainable palm oil averaging +1,470kg per tonne. The average across DAABON’s two mills is +150kg per tonne.
The palm oil industry is making significant strides in sustainability, driven by voluntary certification schemes like the Roundtable on Sustainable Palm Oil (RSPO) and new legislation like the upcoming European Union Deforestation Regulation (EUDR).
Introducing the first carbon-neutral palm oil represents another huge step forward, as Manuel Davila, MD of DAABON UK and EU, explains:
“Tackling the carbon footprint is the natural next step in making palm oil truly sustainable – and we’re delighted to have achieved this milestone. We genuinely believe that DAABON carbon-neutral palm oil sets the gold standard for sustainability worldwide.
“Our next step is to replicate this at our other refinery, with the eventual goal of making all the palm oil we offer become carbon-negative and climate-positive. Of course, there is still some way to go to cut the emissions associated with onward transport and global shipping – but it’s a fantastic start that will help our customers to cut their Scope 3 emissions and drive significant sustainability improvements.”
DAABON is firmly committed to sustainability, providing fully traceable to the farm, organic, certified sustainable and EUDR-compliant palm oil. The company holds a series of sustainability accreditations, including RSPO, Fair Trade, Regenerative Organic Certification, Organic Certification, and Non-GMO Project.
Today, as a signatory of The Climate Pledge, DAABON is committed to having net zero carbon emissions by 2040, exemplifying its ongoing commitment to combat climate change. Response Source/PR
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Unsaturated vs saturated fats, Dietary Guidelines on dairy, meat & plant-based oils
02-Oct-2024 By Deniz Ataman
The Dietary Guidelines Advisory Committee (DGAC) determined the relationships between saturated fat and cardiovascular disease (CVD) and the roles of dairy, red meat and plant-based oils with findings from last week’s meeting indicating benefits of reducing saturated fat intake, though many comparisons lacked sufficient evidence for definitive conclusions.
https://www.foodnavigator-usa.com/Article/2024/10/02/unsaturated-vs-saturated-fats-dietary-guidelines-on-dairy-meat-plant-based-oils
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October 02, 2024
Countries, businesses and trade officials urge EU to rethink deforestation regulation
A growing number of governments, international trade organizations and businesses are urging the European Union to reconsider a deforestation regulation set to take effect in December
JAKARTA, Indonesia -- A growing number of governments, international trade organizations and businesses are urging the European Union to reconsider a deforestation regulation set to take effect in December.
Critics of the regulation say it will discriminate against countries with forest resources and hurt their exports. Supporters of the EU Deforestation Regulation, or EUDR for short, say it will help combat forest degradation on a global scale.
Several commodity associations have said they support the objectives of the regulation but that gaps in its implementation could harm their businesses.
Environmental organizations have voiced support, saying the EUDR will help slow global deforestation, which is the second-biggest source of carbon emissions after fossil fuels. VICTORIA MILKO Associated Press/ ABC News
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EU proposes 12 month delay for deforestation regulation
BRUSSELS, Oct 2 (Reuters) - The European Commission said on Wednesday it would propose to delay implementation of its flagship policy to fight deforestation by a year, following calls from industries and countries to do so.
The deforestation law would, from Dec. 30, require companies selling soy, beef, coffee, palm oil and other products in the 27-nation bloc to prove their supply chains do not contribute to the destruction of forests.
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Honduras 2024/25 coffee exports seen up 15% despite EU trade fears
TEGUCIGALPA, Oct 1 (Reuters) - Honduras' coffee exports in the 2024/25 season are seen up 14.5% from the previous period to 5.37 million 60-kg bags, industry leaders said on Tuesday, despite fears that shipments could be hurt by an EU regulation set to take effect at the end of the year.
Central America's largest exporter of the bean sees exports boosted by better production this year as harvesting for the new season kicks off, Pedro Mendoza, head of Honduras' coffee organization IHCAFE said.
He warned, however, of a requirement from the European Union that would demand imported beans come from areas not linked with deforestation.
The rule would ban sales of coffee - as well as cocoa, soy, palm oil, wood, rubber and cattle - if companies are unable to prove the product comes from an area where forests haven't been cut down in recent years.
Mendoza said that most of Honduras' coffee crop is grown under trees in the shade, a traditional coffee-growing method thought to produce a richer bean.
However, farmers still do not have the documentation ready to be able to export to the EU once the rule takes effect at the end of the year, Mendoza said.
"We're worried," he said. "Europe is the destination for around 55% of our exports."
Mendoza added that Honduran growers were requesting an extension to the deadline, similar to the International Coffee Organization and the Community of Latin American and Caribbean States (CELAC) last month. Reuters
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India-Oil palm farmers happy with rise in FFB prices, but want stable returns
The recent increase in duties on the import of crude and refined edible oils has resulted in an increase of about ₹2,500 on every tonne of an FFB (Fresh Fruit Bunch) of oil palm, bringing cheers to thousands of farmers in the country. The price, which used to be about ₹14,390 before the increase in import duty, rose to over ₹17,000, a rise of ₹2,610. The Hindu Businessline
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India's hike on import duty on edible oils to protect local farmers to have wide-ranging effects on food sector in India, says GlobalData
In the coming months, the GlobalData report said, the import duty hike is likely to increase input costs for food manufacturers and foodservice operators, which rely on edible oils for use as raw material.
With the government imposing a 20 per cent basic customs duty on various edible oils to support domestic farmers, GlobalData said, this is expected to have a wide-ranging effect across the food sector. The duty hike is announced on crude edible oils, such as sunflower, soybean, and palm oil.
Shravani Mali, Consumer Analyst at GlobalData, said, “According to the statistics published by the Solvent Extractors’ Association of India, the import of edible vegetable oils registered an annual uptick of 1.2 per cent, during the first eight months of 2024. However, the increase in import duty on crude edible oils can spark concerns among consumers and foodservice operators and may affect sales during the festive season, starting in October.” Financial Express
Countries, businesses and trade officials urge EU to rethink deforestation regulation
A growing number of governments, international trade organizations and businesses are urging the European Union to reconsider a deforestation regulation set to take effect in December
JAKARTA, Indonesia -- A growing number of governments, international trade organizations and businesses are urging the European Union to reconsider a deforestation regulation set to take effect in December.
Critics of the regulation say it will discriminate against countries with forest resources and hurt their exports. Supporters of the EU Deforestation Regulation, or EUDR for short, say it will help combat forest degradation on a global scale.
Several commodity associations have said they support the objectives of the regulation but that gaps in its implementation could harm their businesses.
Environmental organizations have voiced support, saying the EUDR will help slow global deforestation, which is the second-biggest source of carbon emissions after fossil fuels. VICTORIA MILKO Associated Press/ ABC News
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EU proposes 12 month delay for deforestation regulation
BRUSSELS, Oct 2 (Reuters) - The European Commission said on Wednesday it would propose to delay implementation of its flagship policy to fight deforestation by a year, following calls from industries and countries to do so.
The deforestation law would, from Dec. 30, require companies selling soy, beef, coffee, palm oil and other products in the 27-nation bloc to prove their supply chains do not contribute to the destruction of forests.
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Honduras 2024/25 coffee exports seen up 15% despite EU trade fears
TEGUCIGALPA, Oct 1 (Reuters) - Honduras' coffee exports in the 2024/25 season are seen up 14.5% from the previous period to 5.37 million 60-kg bags, industry leaders said on Tuesday, despite fears that shipments could be hurt by an EU regulation set to take effect at the end of the year.
Central America's largest exporter of the bean sees exports boosted by better production this year as harvesting for the new season kicks off, Pedro Mendoza, head of Honduras' coffee organization IHCAFE said.
He warned, however, of a requirement from the European Union that would demand imported beans come from areas not linked with deforestation.
The rule would ban sales of coffee - as well as cocoa, soy, palm oil, wood, rubber and cattle - if companies are unable to prove the product comes from an area where forests haven't been cut down in recent years.
Mendoza said that most of Honduras' coffee crop is grown under trees in the shade, a traditional coffee-growing method thought to produce a richer bean.
However, farmers still do not have the documentation ready to be able to export to the EU once the rule takes effect at the end of the year, Mendoza said.
"We're worried," he said. "Europe is the destination for around 55% of our exports."
Mendoza added that Honduran growers were requesting an extension to the deadline, similar to the International Coffee Organization and the Community of Latin American and Caribbean States (CELAC) last month. Reuters
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India-Oil palm farmers happy with rise in FFB prices, but want stable returns
The recent increase in duties on the import of crude and refined edible oils has resulted in an increase of about ₹2,500 on every tonne of an FFB (Fresh Fruit Bunch) of oil palm, bringing cheers to thousands of farmers in the country. The price, which used to be about ₹14,390 before the increase in import duty, rose to over ₹17,000, a rise of ₹2,610. The Hindu Businessline
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India's hike on import duty on edible oils to protect local farmers to have wide-ranging effects on food sector in India, says GlobalData
In the coming months, the GlobalData report said, the import duty hike is likely to increase input costs for food manufacturers and foodservice operators, which rely on edible oils for use as raw material.
With the government imposing a 20 per cent basic customs duty on various edible oils to support domestic farmers, GlobalData said, this is expected to have a wide-ranging effect across the food sector. The duty hike is announced on crude edible oils, such as sunflower, soybean, and palm oil.
Shravani Mali, Consumer Analyst at GlobalData, said, “According to the statistics published by the Solvent Extractors’ Association of India, the import of edible vegetable oils registered an annual uptick of 1.2 per cent, during the first eight months of 2024. However, the increase in import duty on crude edible oils can spark concerns among consumers and foodservice operators and may affect sales during the festive season, starting in October.” Financial Express
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October 01, 2024
EUDR Regulations Harm Small Farmers, DOPPA Sarawak Fights Back
Sarawak, elaeis.co - The Dayak Oil Palm Planters Association of Sarawak or Dayak's Oil Palm Planters Association (DOPPA) protested Human Rights Watch (HRW) .
The protests emerged after the New York-based organization requested that the European Union include Sarawak, a Malaysian state on the island of Borneo, in the 'High Risk' category for deforestation.
What irritated DOPPA was that the series of reasons presented by HRW to the European Union in its 38-page letter on May 21, 2024, were identical to things that were made up and distorted the facts.
"HRW has exploited the definition of 'forest' in the European Union Deforestation Free Regulation (EUDR) by including naturally regenerating forest (bush) as part of deforestation in Sarawak," DOPPA President Napolean Royal Ningkos told elaeis.co yesterday.
Based on the results of exploiting the definition of "forest", HRW then made the false claim that there were millions of hectares of ancient rainforest in Sarawak that were at risk of being cut down to make way for oil palm plantations.
"If what HRW said and the definition of "forest" made by the EU are used as a reference, then the land clearing carried out by my cousin three years ago would be called forest clearing. Because the land cleared was a natural regeneration area in the form of bushes more than 5 meters high. Will the EUDR exclude Sarawak palm oil just because of that?" he asked.
According to Napolean, the definition of “forest” in the EUDR is an attack on the rights of Sarawak’s indigenous peoples to decide what to do with their ancestral lands. More Elaeis.co
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Malaysia committed to sustainable palm oil ahead of EU deforestation law, says minister Johari Ghani
Malaysia is committed to sustainable palm oil production ahead of the European Union’s implementation of its law banning imports of commodities linked to deforestation, its commodities minister said in a statement on Friday.
Plantation and Commodities Minister Johari Abdul Ghani said Malaysia’s palm oil sector adopts stringent sustainability standards through its sustainability certification scheme.
The EU Deforestation Regulation (EUDR) is scheduled to be implemented on Dec. 30 this year.
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Johor Plantations Group to Elevate Sustainable Palm Oil Industry with Biomethane Production
KUALA LUMPUR: Johor Plantations Group Bhd (JPG) is championing a more sustainable future for the industry through its pioneering venture into commercial biomethane production.
By capturing biogas from palm oil mill effluents (POME) and converting it into biomethane (renewable natural gas), JPG will reduce its environmental footprint as well as create a new revenue stream for the company over the next five years.
By turning palm oil waste into a renewable, environmentally-friendly revenue source, JPG is able to enhance energy efficiency while establishing itself as a leader in sustainable agricultural practices. This is in line with the group’s massive transformation purpose, which is to produce sustainable essentials for mankind, with the aim of harmonising economic growth with environmental care and social responsibility.
“We are thrilled to be at the forefront of this transformative project. Our commitment to sustainability has always been a core value, and this ‘Waste to Wealth’ initiative demonstrates our dedication to finding innovative solutions that benefit both our business and the environment,” said JPG managing director Mohd Faris Adli Shukery.
POME is wastewater generated by palm oil extraction and purification activities that may become a major environmental pollutant if left untreated. Industry players are required to capture biogas from POME at their palm oil mills by installing mechanisms to trap biogas in wastewater facilities, in line with the Malaysia Palm Oil Board (MPOB)’s mandatory requirements to manage waste sustainably. JPG has taken one step further by capturing biogas from POME and converting it into biomethane.
Biomethane is a cleaner and more efficient alternative to traditional fossil fuels. It produces significantly fewer greenhouse gas (GHG) emissions and air pollutants, making it a vital component of a sustainable energy future. It is also an effective transitional bridge fuel that supports the shift to renewable energy as an alternative to the oil and gas industry. Furthermore, JPG’s biomethane production aligns with Malaysia’s National Energy Transition Roadmap, which aims for renewable energy to comprise 70% of the total installed energy capacity by 2050.
JPG’s partnership with MTC Orec Sdn Bhd has been instrumental in the success of this initiative. The collaboration led to the establishment of JPG Greenergy Ventures (JPGGV), enabling JPG to leverage its expertise in palm oil production with MTC Orec’s renewable energy expertise, resulting in the successful production of biomethane at JPG’s Sedenak palm oil mill.
Building on this success, JPGGV had sign a purchase agreement with Gas Malaysia Bhd subsidiary Gas Malaysia Green Ventures Sdn Bhd (GMGV) in 2019 to supply biomethane to the natural gas distribution system. This agreement, valued at RM25 million, will see JPG supply a total of 250,000 MMBtu of biomethane over 15 years. Another JPG subsidiary JPG Greenergy, also signed its own gas purchase agreement with GMGV to supply a minimum of 350,000 MMBtu of compressed biomethane for 15 years. This biomethane will be sourced from two new plants currently under construction at Tereh and Sindora. The SunMY
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Malaysian Palm Oil Board Focus on greenhouse gas reduction
Kota Kinabalu: The Malaysian Palm Oil Board (MPOB) hosted the National Seminar on Palm Oil Milling, Refining, Environment and Quality 2024 (POMREQ 2024), emphasising the crucial role of industry players in driving a sustainable and competitive future for the oil palm industry.
The seminar, officiated by Deputy Minister of Plantation and Commodities (KPK) Datuk Chan Foong Hin, underscored the importance of industry collaboration in supporting Malaysia’s commitment to achieving net-zero greenhouse gas (GHG) emissions by 2050.
“POMREQ 2024 serves as a vital platform for sharing research findings, fostering discussions, and charting the path towards a stronger oil palm industry,” Chan stated adding the palm oil-based bioenergy and biomass sectors are key catalysts for the national economy and a more sustainable future for Malaysia.
Industry players are at the forefront of this transformation, and their commitment to sustainable practices is essential for our collective success, he said.
The two-day seminar featured 25 paper presentations and 30 research posters from experts, researchers, and industry players, covering key aspects of oil palm processing: Milling Technology, Processing, Food Safety and Quality, Renewable Energy, Biomass Circularity, and Sustainability and Climate Change.
MPOB Chairman Datuk Mohamad Helmy Othman Basha highlighted the organization’s commitment to facilitating collaboration between industry players and government agencies.
“MPOB’s involvement extends beyond R&D and innovation. We actively engage in consultations, dialogues, and forums to address industry concerns, particularly regarding environmental issues, quality, and safety of palm oil,” he emphasized.
“This collaborative approach is crucial for ensuring the long-term sustainability of the industry.”
Hence, Chan urged industry players to remain vigilant about developments and challenges impacting the production of high-quality palm oil that meets food safety standards.
“Cooperation among all stakeholders is essential in developing quality standards for international trade, such as Malaysian Standards and Codex,” he stated.
“By working together, we can ensure that the Malaysian palm oil industry remains competitive and sustainable in the global market.” Daily ExpressMY
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Indonesia targets coconut biofuel production with Japan’s technology
The Indonesian government has laid out a roadmap for the downstream processing of coconut products as part of its National Long-Term Development Plan (RPJPN) for 2025-2045.
One of the key areas of focus is the development of environmentally friendly aviation fuel, known as bioavtur, which derived from coconut oil.
Leonardo A. A. Teguh Sambodo, Special Advisor to the Minister of National Development Planning for Leading Sector Development and Infrastructure, said that the bioavtur initiative comes from Japanese investors, who possess the technology to process coconut oil into bioavtur.
“The initiative is being driven by the Indonesia-Japan Business Network (IJBNet), which has found a Japanese partner to produce bioavtur. IJBNet is currently preparing to build a crude coconut oil (CNO) factory in Banyuasin, South Sumatra,” Teguh said on Friday, September 27, 2024.
While the name of the company that will develop bioavtur in Indonesia has not yet been determined, production can only begin once the CNO factory is established.
Teguh highlighted that coconut is being chosen for biofuel production due to its international certification and approval, which palm oil has not yet received.
“Coconut is safe and approved for use. This gives it an advantage over palm oil, which has yet to obtain certification. Therefore, this potential needs to be harnessed,” Teguh added.
The CNO factory will process non-food-grade coconuts, providing an opportunity to utilize lower-quality coconuts that would otherwise go to waste.
This push for coconut downstream processing is supported by Law No. 59/2024, which emphasizes the use of domestic raw materials to drive the growth of Indonesia’s processing industries.
“Before 2020, Indonesia was the world’s largest coconut producer by volume and yield, but the Philippines has since overtaken us, especially during the pandemic,” Teguh noted.
The Philippines now leads with 3.7 million hectares of coconut plantations, compared to Indonesia’s 3.3 million hectares. In addition to volume, the Philippines has also surpassed Indonesia in exporting coconuts and related products, further highlighting the challenges Indonesia faces in the sector.
Teguh emphasized that Indonesia’s coconut industry suffers from stagnant productivity, averaging 1.1 tons per hectare, with many of the plantations still relying on conventional cultivation methods. Around 378,000 hectares of coconut trees are old and in need of replacement. Indonesia Business Post
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Minnesota Soybean Growers Association wants more checks and balances for regulating used cooking oil imports.
MSGA vice president Ryan Mackenthun says members recently traveled to Washington D.C. to discuss several issues including sustainable aviation fuel tax policy.
“We’re seeing a lot of used cooking oil being imported from countries like China (and) we question the authenticity of that used cooking oil, whether it’s used at all. And then the origin it comes from.”
he tells Brownfield China imports a lot of soybeans and palm oil from South America.
“We’d really like the credits for 40B and 45Z for domestic feed stocks, rather than imported palm oil and soybean oil possibly from our competitors.”
The Renewable Fuels Association recently asked the EPA for an update on its investigation into imported biofuel feedstocks. Brownfield Ag News
EUDR Regulations Harm Small Farmers, DOPPA Sarawak Fights Back
Sarawak, elaeis.co - The Dayak Oil Palm Planters Association of Sarawak or Dayak's Oil Palm Planters Association (DOPPA) protested Human Rights Watch (HRW) .
The protests emerged after the New York-based organization requested that the European Union include Sarawak, a Malaysian state on the island of Borneo, in the 'High Risk' category for deforestation.
What irritated DOPPA was that the series of reasons presented by HRW to the European Union in its 38-page letter on May 21, 2024, were identical to things that were made up and distorted the facts.
"HRW has exploited the definition of 'forest' in the European Union Deforestation Free Regulation (EUDR) by including naturally regenerating forest (bush) as part of deforestation in Sarawak," DOPPA President Napolean Royal Ningkos told elaeis.co yesterday.
Based on the results of exploiting the definition of "forest", HRW then made the false claim that there were millions of hectares of ancient rainforest in Sarawak that were at risk of being cut down to make way for oil palm plantations.
"If what HRW said and the definition of "forest" made by the EU are used as a reference, then the land clearing carried out by my cousin three years ago would be called forest clearing. Because the land cleared was a natural regeneration area in the form of bushes more than 5 meters high. Will the EUDR exclude Sarawak palm oil just because of that?" he asked.
According to Napolean, the definition of “forest” in the EUDR is an attack on the rights of Sarawak’s indigenous peoples to decide what to do with their ancestral lands. More Elaeis.co
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Malaysia committed to sustainable palm oil ahead of EU deforestation law, says minister Johari Ghani
Malaysia is committed to sustainable palm oil production ahead of the European Union’s implementation of its law banning imports of commodities linked to deforestation, its commodities minister said in a statement on Friday.
Plantation and Commodities Minister Johari Abdul Ghani said Malaysia’s palm oil sector adopts stringent sustainability standards through its sustainability certification scheme.
The EU Deforestation Regulation (EUDR) is scheduled to be implemented on Dec. 30 this year.
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Johor Plantations Group to Elevate Sustainable Palm Oil Industry with Biomethane Production
KUALA LUMPUR: Johor Plantations Group Bhd (JPG) is championing a more sustainable future for the industry through its pioneering venture into commercial biomethane production.
By capturing biogas from palm oil mill effluents (POME) and converting it into biomethane (renewable natural gas), JPG will reduce its environmental footprint as well as create a new revenue stream for the company over the next five years.
By turning palm oil waste into a renewable, environmentally-friendly revenue source, JPG is able to enhance energy efficiency while establishing itself as a leader in sustainable agricultural practices. This is in line with the group’s massive transformation purpose, which is to produce sustainable essentials for mankind, with the aim of harmonising economic growth with environmental care and social responsibility.
“We are thrilled to be at the forefront of this transformative project. Our commitment to sustainability has always been a core value, and this ‘Waste to Wealth’ initiative demonstrates our dedication to finding innovative solutions that benefit both our business and the environment,” said JPG managing director Mohd Faris Adli Shukery.
POME is wastewater generated by palm oil extraction and purification activities that may become a major environmental pollutant if left untreated. Industry players are required to capture biogas from POME at their palm oil mills by installing mechanisms to trap biogas in wastewater facilities, in line with the Malaysia Palm Oil Board (MPOB)’s mandatory requirements to manage waste sustainably. JPG has taken one step further by capturing biogas from POME and converting it into biomethane.
Biomethane is a cleaner and more efficient alternative to traditional fossil fuels. It produces significantly fewer greenhouse gas (GHG) emissions and air pollutants, making it a vital component of a sustainable energy future. It is also an effective transitional bridge fuel that supports the shift to renewable energy as an alternative to the oil and gas industry. Furthermore, JPG’s biomethane production aligns with Malaysia’s National Energy Transition Roadmap, which aims for renewable energy to comprise 70% of the total installed energy capacity by 2050.
JPG’s partnership with MTC Orec Sdn Bhd has been instrumental in the success of this initiative. The collaboration led to the establishment of JPG Greenergy Ventures (JPGGV), enabling JPG to leverage its expertise in palm oil production with MTC Orec’s renewable energy expertise, resulting in the successful production of biomethane at JPG’s Sedenak palm oil mill.
Building on this success, JPGGV had sign a purchase agreement with Gas Malaysia Bhd subsidiary Gas Malaysia Green Ventures Sdn Bhd (GMGV) in 2019 to supply biomethane to the natural gas distribution system. This agreement, valued at RM25 million, will see JPG supply a total of 250,000 MMBtu of biomethane over 15 years. Another JPG subsidiary JPG Greenergy, also signed its own gas purchase agreement with GMGV to supply a minimum of 350,000 MMBtu of compressed biomethane for 15 years. This biomethane will be sourced from two new plants currently under construction at Tereh and Sindora. The SunMY
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Malaysian Palm Oil Board Focus on greenhouse gas reduction
Kota Kinabalu: The Malaysian Palm Oil Board (MPOB) hosted the National Seminar on Palm Oil Milling, Refining, Environment and Quality 2024 (POMREQ 2024), emphasising the crucial role of industry players in driving a sustainable and competitive future for the oil palm industry.
The seminar, officiated by Deputy Minister of Plantation and Commodities (KPK) Datuk Chan Foong Hin, underscored the importance of industry collaboration in supporting Malaysia’s commitment to achieving net-zero greenhouse gas (GHG) emissions by 2050.
“POMREQ 2024 serves as a vital platform for sharing research findings, fostering discussions, and charting the path towards a stronger oil palm industry,” Chan stated adding the palm oil-based bioenergy and biomass sectors are key catalysts for the national economy and a more sustainable future for Malaysia.
Industry players are at the forefront of this transformation, and their commitment to sustainable practices is essential for our collective success, he said.
The two-day seminar featured 25 paper presentations and 30 research posters from experts, researchers, and industry players, covering key aspects of oil palm processing: Milling Technology, Processing, Food Safety and Quality, Renewable Energy, Biomass Circularity, and Sustainability and Climate Change.
MPOB Chairman Datuk Mohamad Helmy Othman Basha highlighted the organization’s commitment to facilitating collaboration between industry players and government agencies.
“MPOB’s involvement extends beyond R&D and innovation. We actively engage in consultations, dialogues, and forums to address industry concerns, particularly regarding environmental issues, quality, and safety of palm oil,” he emphasized.
“This collaborative approach is crucial for ensuring the long-term sustainability of the industry.”
Hence, Chan urged industry players to remain vigilant about developments and challenges impacting the production of high-quality palm oil that meets food safety standards.
“Cooperation among all stakeholders is essential in developing quality standards for international trade, such as Malaysian Standards and Codex,” he stated.
“By working together, we can ensure that the Malaysian palm oil industry remains competitive and sustainable in the global market.” Daily ExpressMY
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Indonesia targets coconut biofuel production with Japan’s technology
The Indonesian government has laid out a roadmap for the downstream processing of coconut products as part of its National Long-Term Development Plan (RPJPN) for 2025-2045.
One of the key areas of focus is the development of environmentally friendly aviation fuel, known as bioavtur, which derived from coconut oil.
Leonardo A. A. Teguh Sambodo, Special Advisor to the Minister of National Development Planning for Leading Sector Development and Infrastructure, said that the bioavtur initiative comes from Japanese investors, who possess the technology to process coconut oil into bioavtur.
“The initiative is being driven by the Indonesia-Japan Business Network (IJBNet), which has found a Japanese partner to produce bioavtur. IJBNet is currently preparing to build a crude coconut oil (CNO) factory in Banyuasin, South Sumatra,” Teguh said on Friday, September 27, 2024.
While the name of the company that will develop bioavtur in Indonesia has not yet been determined, production can only begin once the CNO factory is established.
Teguh highlighted that coconut is being chosen for biofuel production due to its international certification and approval, which palm oil has not yet received.
“Coconut is safe and approved for use. This gives it an advantage over palm oil, which has yet to obtain certification. Therefore, this potential needs to be harnessed,” Teguh added.
The CNO factory will process non-food-grade coconuts, providing an opportunity to utilize lower-quality coconuts that would otherwise go to waste.
This push for coconut downstream processing is supported by Law No. 59/2024, which emphasizes the use of domestic raw materials to drive the growth of Indonesia’s processing industries.
“Before 2020, Indonesia was the world’s largest coconut producer by volume and yield, but the Philippines has since overtaken us, especially during the pandemic,” Teguh noted.
The Philippines now leads with 3.7 million hectares of coconut plantations, compared to Indonesia’s 3.3 million hectares. In addition to volume, the Philippines has also surpassed Indonesia in exporting coconuts and related products, further highlighting the challenges Indonesia faces in the sector.
Teguh emphasized that Indonesia’s coconut industry suffers from stagnant productivity, averaging 1.1 tons per hectare, with many of the plantations still relying on conventional cultivation methods. Around 378,000 hectares of coconut trees are old and in need of replacement. Indonesia Business Post
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Minnesota Soybean Growers Association wants more checks and balances for regulating used cooking oil imports.
MSGA vice president Ryan Mackenthun says members recently traveled to Washington D.C. to discuss several issues including sustainable aviation fuel tax policy.
“We’re seeing a lot of used cooking oil being imported from countries like China (and) we question the authenticity of that used cooking oil, whether it’s used at all. And then the origin it comes from.”
he tells Brownfield China imports a lot of soybeans and palm oil from South America.
“We’d really like the credits for 40B and 45Z for domestic feed stocks, rather than imported palm oil and soybean oil possibly from our competitors.”
The Renewable Fuels Association recently asked the EPA for an update on its investigation into imported biofuel feedstocks. Brownfield Ag News
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