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 31, 2024
Africa wants more time and money to comply with EU deforestation regulation
African cocoa - and coffee- producing countries are racing against the clock to avoid being excluded from the European market. A proposal to delay implementation would give them more time to prepare.
Consumers in the European Union account for about 10% of global deforestation. The 27-member bloc’s first attempt at tackling the problem was the introduction of the EU Timber Legislation (EUTR) in 2013. The legislation prohibited the sale of illegally harvested wood on the EU market. A little over ten years later, the EU plans to implement a new legislation known as the EU Deforestation Regulation (EUDR) that will replace the EUTR. Besides timber, the EUDR also targets other commodities responsible for deforestation worldwide such as cocoa, coffee, beef, palm oil, rubber and soy. The regulation is slated to come into force on December 30, 2024. More SwissInfo
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Malaysia-Over 90% of independent smallholders to be MSPO-certified by end-2025, says MPOB
KUALA LUMPUR (Oct 31): The Malaysian Palm Oil Board (MPOB) is targeting more than 90% of independent smallholders to achieve Malaysian Sustainable Palm Oil (MSPO) certification by the end of next year.
MPOB director general Datuk Dr Ahmad Parveez Ghulam Kadir based his optimism on the fact that 76.9% of 210,891 independent oil palm smallholders licensed with the board are already certified under the MSPO standard.
The significant compliance rate, which presents a strong foundation for further compliance, was made possible by the MPOB’s initiatives, which include providing continuous financial and technical assistance, he said in response to queries by Bernama recently.
The MPOB also undertakes awareness campaigns on the importance of sustainability through targeted training programmes as well as by implementing the Sawit Intelligent Management System (SIMS).
“The SIMS aims to improve the monitoring of palm oil transactions, ensuring greater transparency and traceability throughout the supply chain,” he said.
The MPOB is also committed to supporting independent smallholders by providing full funding for the MSPO certification audit process, he said.
“This support includes training and supplying essential inputs, such as personal protective equipment and shelves for storing herbicides and pesticides.
“By alleviating these financial burdens, the allocation encourages independent smallholders to pursue sustainable palm oil production, thereby contributing to environmental conservation and economic stability within the oil palm industry,” he said. Bernama/ The Edge
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GAPKI Welcomes BPDP, But Demands Palm Fund Well-Kept
JAKARTA – The Indonesian Palm Oil Association (GAPKI) has positively welcomed the formation of the Plantation Fund Management Board (BPDP) as a replacement of the Oil Palm Plantation Fund Management Board (BPDPKS), saying that the newly-established institution can still financially support the Indonesian palm oil industries provided that the funds it collected from the palm oil industries through export levies are well managed.
“As long as the management of palm oil fund is not affected, GAPKI sees no significant threat to the palm oil industries,” GAPKI Chairman Eddy Martono said in a press statement on Monday (28/10/2024).
Established by the government under President Joko Widodo (Jokowi) based on presidential regulation (Perpres) No.132/2024, which was signed by President Jokowi on 18 October 2024, two days before the transfer of administration to President Prabowo Subianto and Vice President Gibran Rakabuming Raka, the BPDP has its authority expanded from just palm oil commodity to also cocoa and coconut. It is assigned to collect funds from plantations, mainly oil palm, cocoa, and coconut.
Previously, the BPDPKS was authorized to collect palm oil funds through export levies, which are used to finance the palm oil program development, including implementation of biodiesel mandatory program and replanting program for oil palm smallholders’ plantations.
The funds collected by BPDP will be used to develop plantations’ human resources, research and development, promotions, replanting, and development of supporting infrastructure and facilities for plantations.
Eddy admitted that they are not yet confirmed whether the export levy scheme for cocoa and coconut oil will be applied the same with that of palm oil. “Considering that, there should be a further assessment that involves all industry players and BPDP,” he said. More GAPKI
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Apkasindo Asks For Exclusion of Palm Oil from BPDP
JAKARTA -The Association of Indonesian Oil Palm Smallholders (Apkasindo) has asked the government not to include palm oil under the authority of the newly-established Plantation Fund Management Board (BPDP), but stay under the Oil Palm Plantation Fund Management Board (BPDPKS), which has been changed to the BPDP.
Apkasindo Chairman Gulat ME Manurung said they appreciate the government’s policy to increase the production of cocoa and coconut with the establishment of the BPDP based on the presidential regulation (Perpres) No.132/2024.
“But we ask for the exclusion of palm oil from the management of the newly-established BPDP. It’s better that the BPDPKS is maintained as an institution to manage palm oil fund, which is needed to finance all programs of palm oil development, including replanting program for smallholders’ plantations,” he said in a press statement in Jakarta on Sunday (27/10/2024) as quoted by Antara.
According to him, the inclusion of palm oil under the authority of BPDP was conducted very hastily, just two days before the transfer of administration from President Joko Widodo (Jokowi) to President Prabowo Subianto, without in-depth study and without involving palm oil stakeholders in designing the plan to put palm oil, cocoa, coconut under the newly-established BPDP.
“This new institution should only manage cocoa and coconut,” he said.
“Therefore, we urge President Prabowo Subianto to revoke the Perpres 132/2024 and reapply the previous Perpres that rules the institution of BPDPKS,” he said.
According to Gulat, the issuance of Perpres 132/2024 on the formation of BPDP and annihilation BPDPKS has worried the oil palm smallholders, especially those undertaking the process of getting funding for replanting program in their plantations.
Gulat said that the fund collected by BPDPKS is not from the state budget (APBN) but is derived from export levies, which are also contributed by smallholders. More GAPKI
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Minister Nusron Targets 537 Palm Oil Companies Operating Without Required Certificates
Jakarta. The Agrarian Affairs and Spatial Planning Ministry is taking action against 537 palm oil companies operating without land-use rights certificates, amid concerns over tax revenue losses and regulatory compliance.
The ministry is currently organizing, evaluating, and temporarily halting the application, registration, and issuance processes for these companies' land-use rights certificates (HGUs), according to Minister Nusron Wahid during a press briefing at the parliament building in Senayan, Jakarta, on Wednesday.
Nusron indicated that the government will impose sanctions on palm oil entrepreneurs lacking HGU certificates, which could include tax penalties and suspensions of registration and HGU certification issuance.
"The details of the sanctions are being assessed, with the tax penalties being calculated by the Financial and Development Supervisory Board (BPKP). The legal issues will fall under the jurisdiction of the Attorney General," he said.
As for the financial impact, the ministry has yet to calculate the tax revenue losses associated with the 537 companies as they are in the process of reconciling data with the BPKP.
Two primary issues plague the palm oil sector: plantations located in areas designated for other uses (APL), which fall under the ministry's supervision, and those in forest areas, governed by the Ministry of Forestry.
"There are 2.5 million hectares of plantations located in areas designated for other uses, and that falls under our authority," Nusron explained. Jakarta Globe
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Indonesian billionaire family accused of controlling ‘shadow company’ group linked to major deforestation
Former employees of the group said that the Tanotos — who own a “sustainable” pulp and paper giant — were allegedly secretly undermining the conglomerate’s environmental commitments.
By Carmen Molina Acosta
Former employees of a string of secretive companies accused of clearing swathes of Borneo rainforest claim the group is controlled by Royal Golden Eagle, one of the world’s largest producers of wood pulp and paper, a new investigation by ICIJ partner The Gecko Project and Bloomberg reveals.
RGE, which sells an array of products to international brands, is owned by the Tanotos, a super-rich Indonesian business family. According to nine former employees of Borneo Hijau Lestari, the alleged “shadow company” group, Anderson Tanoto, the son of RGE’s founder, oversaw the company himself, The Gecko Project reported.
Tanoto has been outspoken about sustainability and conservation at top conferences, tackling topics like biodiversity and renewable energy at Davos, Cop26 and the G20 business summit, The Gecko Project noted. Meanwhile, BHL’s subsidiaries have reportedly ranked among Indonesia’s top “deforesters” of pulp and paper.
According to The Gecko Project, BHL’s owners use offshore secrecy jurisdictions, such as Samoa, to conceal their identities. But seven of the nine insiders — who worked at BHL and its subsidiaries between 2015 and 2024, and ranged from junior staff to managers — told reporters that BHL’s real owners were the Tanoto family, citing managerial overlap and internal documents with RGE’s heading, and they pointed to Anderson’s visits. Two others told The Gecko Project they were asked by managers to prepare for multiple visits from Tanoto, who traveled by helicopter, between 2018 and 2023.
“This is really, really strong evidence that RGE and BHL are connected,” Syahrul Fitra, a senior forest campaigner at Greenpeace who reviewed the findings told The Gecko Project. “Why else would an RGE boss, a high-level person, come to a concession like that?”
The new investigation adds to a March report by Greenpeace and other environmental groups that alleged RGE had masked its ties to an Indonesian pulpwood company, PT Mayawana Persada, accused of widespread destruction of forests and orangutan habitats.
One BHL subsidiary, Industrial Forest Plantation, is considered one of Indonesia’s top offenders when it comes to deforestation and has destroyed an area of forest roughly a third of the size of New York City since 2019, according to deforestation monitoring consultancy TheTreeMap. ICIJ
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Thailand bans export of raw palm oil as production takes a hit
BANGKOK: Thailand's Department of Internal Trade has temporarily banned the export of raw palm oil due to reduced production caused by drought and plant diseases.
The restrictions, expected to last until December, aim to stabilise local prices and ensure adequate stock levels.
Commerce Minister Pichai Naripthaphan highlighted that current market conditions reflect a significant decrease in oil palm output, necessitating measures to protect both farmers and consumers from inflated prices.
Goranij Nonejuie, deputy director-general of the department which comes under the Commerce Ministry, confirmed that prices are currently satisfactory at 8-9 baht per kg, but emphasised the need to monitor bottled palm oil prices closely.
The ministry has coordinated discussions with the Palm Oil Extraction Mills Association and various retailers to manage stock levels and delay price adjustments for consumers.
The extraction mills association and the Palm Oil Refinery Association have pledged to cooperate with the government's efforts. They have agreed to suspend exports and work together to stabilise prices. The StarMY
Africa wants more time and money to comply with EU deforestation regulation
African cocoa - and coffee- producing countries are racing against the clock to avoid being excluded from the European market. A proposal to delay implementation would give them more time to prepare.
Consumers in the European Union account for about 10% of global deforestation. The 27-member bloc’s first attempt at tackling the problem was the introduction of the EU Timber Legislation (EUTR) in 2013. The legislation prohibited the sale of illegally harvested wood on the EU market. A little over ten years later, the EU plans to implement a new legislation known as the EU Deforestation Regulation (EUDR) that will replace the EUTR. Besides timber, the EUDR also targets other commodities responsible for deforestation worldwide such as cocoa, coffee, beef, palm oil, rubber and soy. The regulation is slated to come into force on December 30, 2024. More SwissInfo
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Malaysia-Over 90% of independent smallholders to be MSPO-certified by end-2025, says MPOB
KUALA LUMPUR (Oct 31): The Malaysian Palm Oil Board (MPOB) is targeting more than 90% of independent smallholders to achieve Malaysian Sustainable Palm Oil (MSPO) certification by the end of next year.
MPOB director general Datuk Dr Ahmad Parveez Ghulam Kadir based his optimism on the fact that 76.9% of 210,891 independent oil palm smallholders licensed with the board are already certified under the MSPO standard.
The significant compliance rate, which presents a strong foundation for further compliance, was made possible by the MPOB’s initiatives, which include providing continuous financial and technical assistance, he said in response to queries by Bernama recently.
The MPOB also undertakes awareness campaigns on the importance of sustainability through targeted training programmes as well as by implementing the Sawit Intelligent Management System (SIMS).
“The SIMS aims to improve the monitoring of palm oil transactions, ensuring greater transparency and traceability throughout the supply chain,” he said.
The MPOB is also committed to supporting independent smallholders by providing full funding for the MSPO certification audit process, he said.
“This support includes training and supplying essential inputs, such as personal protective equipment and shelves for storing herbicides and pesticides.
“By alleviating these financial burdens, the allocation encourages independent smallholders to pursue sustainable palm oil production, thereby contributing to environmental conservation and economic stability within the oil palm industry,” he said. Bernama/ The Edge
--------
GAPKI Welcomes BPDP, But Demands Palm Fund Well-Kept
JAKARTA – The Indonesian Palm Oil Association (GAPKI) has positively welcomed the formation of the Plantation Fund Management Board (BPDP) as a replacement of the Oil Palm Plantation Fund Management Board (BPDPKS), saying that the newly-established institution can still financially support the Indonesian palm oil industries provided that the funds it collected from the palm oil industries through export levies are well managed.
“As long as the management of palm oil fund is not affected, GAPKI sees no significant threat to the palm oil industries,” GAPKI Chairman Eddy Martono said in a press statement on Monday (28/10/2024).
Established by the government under President Joko Widodo (Jokowi) based on presidential regulation (Perpres) No.132/2024, which was signed by President Jokowi on 18 October 2024, two days before the transfer of administration to President Prabowo Subianto and Vice President Gibran Rakabuming Raka, the BPDP has its authority expanded from just palm oil commodity to also cocoa and coconut. It is assigned to collect funds from plantations, mainly oil palm, cocoa, and coconut.
Previously, the BPDPKS was authorized to collect palm oil funds through export levies, which are used to finance the palm oil program development, including implementation of biodiesel mandatory program and replanting program for oil palm smallholders’ plantations.
The funds collected by BPDP will be used to develop plantations’ human resources, research and development, promotions, replanting, and development of supporting infrastructure and facilities for plantations.
Eddy admitted that they are not yet confirmed whether the export levy scheme for cocoa and coconut oil will be applied the same with that of palm oil. “Considering that, there should be a further assessment that involves all industry players and BPDP,” he said. More GAPKI
--------
Apkasindo Asks For Exclusion of Palm Oil from BPDP
JAKARTA -The Association of Indonesian Oil Palm Smallholders (Apkasindo) has asked the government not to include palm oil under the authority of the newly-established Plantation Fund Management Board (BPDP), but stay under the Oil Palm Plantation Fund Management Board (BPDPKS), which has been changed to the BPDP.
Apkasindo Chairman Gulat ME Manurung said they appreciate the government’s policy to increase the production of cocoa and coconut with the establishment of the BPDP based on the presidential regulation (Perpres) No.132/2024.
“But we ask for the exclusion of palm oil from the management of the newly-established BPDP. It’s better that the BPDPKS is maintained as an institution to manage palm oil fund, which is needed to finance all programs of palm oil development, including replanting program for smallholders’ plantations,” he said in a press statement in Jakarta on Sunday (27/10/2024) as quoted by Antara.
According to him, the inclusion of palm oil under the authority of BPDP was conducted very hastily, just two days before the transfer of administration from President Joko Widodo (Jokowi) to President Prabowo Subianto, without in-depth study and without involving palm oil stakeholders in designing the plan to put palm oil, cocoa, coconut under the newly-established BPDP.
“This new institution should only manage cocoa and coconut,” he said.
“Therefore, we urge President Prabowo Subianto to revoke the Perpres 132/2024 and reapply the previous Perpres that rules the institution of BPDPKS,” he said.
According to Gulat, the issuance of Perpres 132/2024 on the formation of BPDP and annihilation BPDPKS has worried the oil palm smallholders, especially those undertaking the process of getting funding for replanting program in their plantations.
Gulat said that the fund collected by BPDPKS is not from the state budget (APBN) but is derived from export levies, which are also contributed by smallholders. More GAPKI
--------
Minister Nusron Targets 537 Palm Oil Companies Operating Without Required Certificates
Jakarta. The Agrarian Affairs and Spatial Planning Ministry is taking action against 537 palm oil companies operating without land-use rights certificates, amid concerns over tax revenue losses and regulatory compliance.
The ministry is currently organizing, evaluating, and temporarily halting the application, registration, and issuance processes for these companies' land-use rights certificates (HGUs), according to Minister Nusron Wahid during a press briefing at the parliament building in Senayan, Jakarta, on Wednesday.
Nusron indicated that the government will impose sanctions on palm oil entrepreneurs lacking HGU certificates, which could include tax penalties and suspensions of registration and HGU certification issuance.
"The details of the sanctions are being assessed, with the tax penalties being calculated by the Financial and Development Supervisory Board (BPKP). The legal issues will fall under the jurisdiction of the Attorney General," he said.
As for the financial impact, the ministry has yet to calculate the tax revenue losses associated with the 537 companies as they are in the process of reconciling data with the BPKP.
Two primary issues plague the palm oil sector: plantations located in areas designated for other uses (APL), which fall under the ministry's supervision, and those in forest areas, governed by the Ministry of Forestry.
"There are 2.5 million hectares of plantations located in areas designated for other uses, and that falls under our authority," Nusron explained. Jakarta Globe
--------
Indonesian billionaire family accused of controlling ‘shadow company’ group linked to major deforestation
Former employees of the group said that the Tanotos — who own a “sustainable” pulp and paper giant — were allegedly secretly undermining the conglomerate’s environmental commitments.
By Carmen Molina Acosta
Former employees of a string of secretive companies accused of clearing swathes of Borneo rainforest claim the group is controlled by Royal Golden Eagle, one of the world’s largest producers of wood pulp and paper, a new investigation by ICIJ partner The Gecko Project and Bloomberg reveals.
RGE, which sells an array of products to international brands, is owned by the Tanotos, a super-rich Indonesian business family. According to nine former employees of Borneo Hijau Lestari, the alleged “shadow company” group, Anderson Tanoto, the son of RGE’s founder, oversaw the company himself, The Gecko Project reported.
Tanoto has been outspoken about sustainability and conservation at top conferences, tackling topics like biodiversity and renewable energy at Davos, Cop26 and the G20 business summit, The Gecko Project noted. Meanwhile, BHL’s subsidiaries have reportedly ranked among Indonesia’s top “deforesters” of pulp and paper.
According to The Gecko Project, BHL’s owners use offshore secrecy jurisdictions, such as Samoa, to conceal their identities. But seven of the nine insiders — who worked at BHL and its subsidiaries between 2015 and 2024, and ranged from junior staff to managers — told reporters that BHL’s real owners were the Tanoto family, citing managerial overlap and internal documents with RGE’s heading, and they pointed to Anderson’s visits. Two others told The Gecko Project they were asked by managers to prepare for multiple visits from Tanoto, who traveled by helicopter, between 2018 and 2023.
“This is really, really strong evidence that RGE and BHL are connected,” Syahrul Fitra, a senior forest campaigner at Greenpeace who reviewed the findings told The Gecko Project. “Why else would an RGE boss, a high-level person, come to a concession like that?”
The new investigation adds to a March report by Greenpeace and other environmental groups that alleged RGE had masked its ties to an Indonesian pulpwood company, PT Mayawana Persada, accused of widespread destruction of forests and orangutan habitats.
One BHL subsidiary, Industrial Forest Plantation, is considered one of Indonesia’s top offenders when it comes to deforestation and has destroyed an area of forest roughly a third of the size of New York City since 2019, according to deforestation monitoring consultancy TheTreeMap. ICIJ
--------
Thailand bans export of raw palm oil as production takes a hit
BANGKOK: Thailand's Department of Internal Trade has temporarily banned the export of raw palm oil due to reduced production caused by drought and plant diseases.
The restrictions, expected to last until December, aim to stabilise local prices and ensure adequate stock levels.
Commerce Minister Pichai Naripthaphan highlighted that current market conditions reflect a significant decrease in oil palm output, necessitating measures to protect both farmers and consumers from inflated prices.
Goranij Nonejuie, deputy director-general of the department which comes under the Commerce Ministry, confirmed that prices are currently satisfactory at 8-9 baht per kg, but emphasised the need to monitor bottled palm oil prices closely.
The ministry has coordinated discussions with the Palm Oil Extraction Mills Association and various retailers to manage stock levels and delay price adjustments for consumers.
The extraction mills association and the Palm Oil Refinery Association have pledged to cooperate with the government's efforts. They have agreed to suspend exports and work together to stabilise prices. The StarMY
October 30, 2024
Can India take the risk of moving away from palm oil in FMCG products?
Palm oil is a miracle ingredient, whose versatility among vegetable oil is unmatched
Palm oil is a miracle ingredient, whose versatility among vegetable oil is unmatched. Palm oil is a treasure trove of potent antioxidants known as tocols, a family of vitamin E antioxidants. Palm oil also gives incredibly high yields. It yields 4-to-10 times more oil per hectare than “Palm Oil Free” alternatives. Translated, using palm oil means using less land, a smaller overall environmental footprint and, contrary to popular belief, less deforestation. And here’s why: being palm oil-free just means that a blend of different vegetable oils such as sunflower, soy, or coconut oil are being used instead, thus creating demand for more land to be cleared and more resources to be consumed. This paradox is being played out on supermarket shelves, fuelled by misinformation and a lack of awareness. Under ideal conditions, high-yield oil palm cultivars can produce more than 25 times as much oil as soy can for the same area of farmland. Thus, ironically, a shift from palm oil would lead to a catastrophic increase in deforestation, as anything we replace it with will need much more land to grow on.
Palm oil is a miracle ingredient, whose versatility among vegetable oil is unmatched. According to the World Wildlife Fund (WWF), palm oil is in close to 50 per cent of the packaged products we find in supermarkets; in everything from pizza, doughnuts and chocolate, to deodorant, shampoo, toothpaste, lipstick and skin creams because it offers such rich hydration. Derived from the fruit of the palm tree, it is the world’s most land-efficient oil crop and, if managed responsibly, it can also contribute to sustainability. When it comes to alternatives, swapping palm oil for other oils may not necessarily lead to improved health outcomes. For instance, oils high in
To read more click on the link:https://nuffoodsspectrum.in/e-magazine
--------
NGOs ask to include Brazilian Cerrado in the EUDR at next review
The EUDR, set to prevent products linked to deforestation from entering the EU starting Jan. 1, 2024, applies to any geographic area where palm oil, cattle, coffee, cocoa, soy, wood and rubber are produced. However, for it to be considered deforested land, it has to fall under the U.N. Food and Agriculture Organization’s (FAO) definition of “forest,” which excludes certain savannas and grasslands. Unless illegalities are found according to national and international laws (including conservation laws), commodities produced in areas not covered by the EUDR will be able to enter the EU.
This includes most of the Cerrado, an ecosystem that is known as the “cradle of waters” because of its vital role in replenishing the main Brazilian and South American watersheds, as well as providing energy and food security for millions of people. It is Brazil’s second-largest biome, covering more than 20% of the country’s territory — an area the size of Mexico — and is the world’s most biodiverse savanna. Mongabay
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Indonesia's Palm-related Deforestation Hits All-Time Lows
In 2021 and 2022, deforestation for industrial palm oil was down to 16,900 ha and 19,900 ha respectively.
Taken in the context of Indonesia’s overall forest loss, this represents around 7 per cent of Indonesia’s overall forest loss in similar years.
This is significantly lower than the all-time high of 226,000 ha that was lost in 2012, according to the platform.
Palm-related deforestation has been on a steady decline since then. This also marks the point in time where Indonesia’s forest moratorium and palm oil moratoria were introduced – which have had a clear and significant impact on palm oil expansion and deforestation since then.
The fall in deforestation has also taken place without the ‘threat’ of the EUDR. It should be noted that these drops have taken place prior to the introduction – or even acknowledgement of the EUDR.
Trase’s authors also note that the commitments of various companies to ‘zero deforestation commitments’ (ZDCs) have not made a significant difference.
According to the authors, “exporters with and without ZDCs have similar rates of annual deforestation intensity – 0.27 ha for every 1,000 tonnes of palm oil for exporters with ZDCs compared to 0.23 ha for every 1,000 tonnes of palm oil for exporters without ZDCs.”
This would indicate that the success of Indonesia in reducing its deforestation rates – particularly in the palm oil sector – have largely been the result of domestic policy initiatives rather than international pressure.
It’s notable also that the significance of the EU market has similarly declined in palm exports. In 2013, exports to the EU represented 17% of Indonesian palm exports; by 2022 this had fallen to 10%.
In other words, even though the European Union had attempted to exert the greatest policy influence on Indonesian agricultural and forest policy through its various international initiatives, it has possibly had the least market influence.
Indeed, the Trase authors also note that Indonesian domestic has increased significantly over the past few years, from 32% of production to 44% between 2018 and 2022.
The figures should also be considered by the European Union as part of its deforestation country benchmarking as part of the EUDR.
By way of comparison, Canada lost almost 40,000 ha of forest annually between 2010 and 2020. While this is not a direct comparison between the two countries, the relatively small scale of palm-driven deforestation in a greater global context should nonetheless be considered. Indonesia Palm Oil Facts
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BRICS membership expansion to vastly benefit Malaysia's O&G, RE sectors
KUALA LUMPUR: BRICS' plans to expand its membership could greatly benefit Malaysia in the oil and gas (O&G) and renewable energy (RE) industries.
MIDF Research said BRICS opens the opportunity for Malaysia to trade natural gas to new markets in China and India, in turn, diversifying its export destination.
"BRICS member countries might be attracted to investment opportunities as well, including joint ventures and technology transfers, boosting its position in the global energy market and ensuring a stable economy amid global economic uncertainties," it said.
However, downside risks include geopolitical tensions from member countries, exposure to currency volatility, regulatory uncertainties, increased regional competitiveness and increased scrutiny from traditional allies and trading partners.
Nevertheless, MIDF Research believes that investing in technology and innovation, strengthening regulatory frameworks and developing strategic reserves could effectively mitigate the risks from BRICS in the long run.
BRICS recently announced the addition of 13 new partner countries, including Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Nigeria, Thailand, Turkey, Uganda, Uzbekistan, and Vietnam. More NST
Can India take the risk of moving away from palm oil in FMCG products?
Palm oil is a miracle ingredient, whose versatility among vegetable oil is unmatched
Palm oil is a miracle ingredient, whose versatility among vegetable oil is unmatched. Palm oil is a treasure trove of potent antioxidants known as tocols, a family of vitamin E antioxidants. Palm oil also gives incredibly high yields. It yields 4-to-10 times more oil per hectare than “Palm Oil Free” alternatives. Translated, using palm oil means using less land, a smaller overall environmental footprint and, contrary to popular belief, less deforestation. And here’s why: being palm oil-free just means that a blend of different vegetable oils such as sunflower, soy, or coconut oil are being used instead, thus creating demand for more land to be cleared and more resources to be consumed. This paradox is being played out on supermarket shelves, fuelled by misinformation and a lack of awareness. Under ideal conditions, high-yield oil palm cultivars can produce more than 25 times as much oil as soy can for the same area of farmland. Thus, ironically, a shift from palm oil would lead to a catastrophic increase in deforestation, as anything we replace it with will need much more land to grow on.
Palm oil is a miracle ingredient, whose versatility among vegetable oil is unmatched. According to the World Wildlife Fund (WWF), palm oil is in close to 50 per cent of the packaged products we find in supermarkets; in everything from pizza, doughnuts and chocolate, to deodorant, shampoo, toothpaste, lipstick and skin creams because it offers such rich hydration. Derived from the fruit of the palm tree, it is the world’s most land-efficient oil crop and, if managed responsibly, it can also contribute to sustainability. When it comes to alternatives, swapping palm oil for other oils may not necessarily lead to improved health outcomes. For instance, oils high in
To read more click on the link:https://nuffoodsspectrum.in/e-magazine
--------
NGOs ask to include Brazilian Cerrado in the EUDR at next review
- About 74% of the Brazilian Cerrado falls outside the scope of the EU Deforestation Regulation (EUDR).
- Unless illegalities are found, such as breaches to national law, commodities from areas of the Cerrado that are excluded from the EUDR will be able to enter the EU.
- Deforestation rates in the Cerrado increased by 43% in 2023, with the greatest destruction concentrated in Brazil’s state of Bahia, where almost a quarter of its original 9 million hectares (22 million acres) of vegetation have been lost since 1985.
- NGOs are calling on EU authorities to review and expand the regulation at its one-year review period. However, the European Commission recently proposed a 12-month delay in the implementation of the EUDR, which could affect the date of the review.
The EUDR, set to prevent products linked to deforestation from entering the EU starting Jan. 1, 2024, applies to any geographic area where palm oil, cattle, coffee, cocoa, soy, wood and rubber are produced. However, for it to be considered deforested land, it has to fall under the U.N. Food and Agriculture Organization’s (FAO) definition of “forest,” which excludes certain savannas and grasslands. Unless illegalities are found according to national and international laws (including conservation laws), commodities produced in areas not covered by the EUDR will be able to enter the EU.
This includes most of the Cerrado, an ecosystem that is known as the “cradle of waters” because of its vital role in replenishing the main Brazilian and South American watersheds, as well as providing energy and food security for millions of people. It is Brazil’s second-largest biome, covering more than 20% of the country’s territory — an area the size of Mexico — and is the world’s most biodiverse savanna. Mongabay
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Indonesia's Palm-related Deforestation Hits All-Time Lows
- New data from Trase, a forest-tracking platform, indicates that palm-driven deforestation in Indonesia is at historical lows;
- Palm-driven deforestation appears to make up less than 10 per cent of Indonesian forest loss;
- This should be considered by the EU as part of its benchmarking process.
In 2021 and 2022, deforestation for industrial palm oil was down to 16,900 ha and 19,900 ha respectively.
Taken in the context of Indonesia’s overall forest loss, this represents around 7 per cent of Indonesia’s overall forest loss in similar years.
This is significantly lower than the all-time high of 226,000 ha that was lost in 2012, according to the platform.
Palm-related deforestation has been on a steady decline since then. This also marks the point in time where Indonesia’s forest moratorium and palm oil moratoria were introduced – which have had a clear and significant impact on palm oil expansion and deforestation since then.
The fall in deforestation has also taken place without the ‘threat’ of the EUDR. It should be noted that these drops have taken place prior to the introduction – or even acknowledgement of the EUDR.
Trase’s authors also note that the commitments of various companies to ‘zero deforestation commitments’ (ZDCs) have not made a significant difference.
According to the authors, “exporters with and without ZDCs have similar rates of annual deforestation intensity – 0.27 ha for every 1,000 tonnes of palm oil for exporters with ZDCs compared to 0.23 ha for every 1,000 tonnes of palm oil for exporters without ZDCs.”
This would indicate that the success of Indonesia in reducing its deforestation rates – particularly in the palm oil sector – have largely been the result of domestic policy initiatives rather than international pressure.
It’s notable also that the significance of the EU market has similarly declined in palm exports. In 2013, exports to the EU represented 17% of Indonesian palm exports; by 2022 this had fallen to 10%.
In other words, even though the European Union had attempted to exert the greatest policy influence on Indonesian agricultural and forest policy through its various international initiatives, it has possibly had the least market influence.
Indeed, the Trase authors also note that Indonesian domestic has increased significantly over the past few years, from 32% of production to 44% between 2018 and 2022.
The figures should also be considered by the European Union as part of its deforestation country benchmarking as part of the EUDR.
By way of comparison, Canada lost almost 40,000 ha of forest annually between 2010 and 2020. While this is not a direct comparison between the two countries, the relatively small scale of palm-driven deforestation in a greater global context should nonetheless be considered. Indonesia Palm Oil Facts
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BRICS membership expansion to vastly benefit Malaysia's O&G, RE sectors
KUALA LUMPUR: BRICS' plans to expand its membership could greatly benefit Malaysia in the oil and gas (O&G) and renewable energy (RE) industries.
MIDF Research said BRICS opens the opportunity for Malaysia to trade natural gas to new markets in China and India, in turn, diversifying its export destination.
"BRICS member countries might be attracted to investment opportunities as well, including joint ventures and technology transfers, boosting its position in the global energy market and ensuring a stable economy amid global economic uncertainties," it said.
However, downside risks include geopolitical tensions from member countries, exposure to currency volatility, regulatory uncertainties, increased regional competitiveness and increased scrutiny from traditional allies and trading partners.
Nevertheless, MIDF Research believes that investing in technology and innovation, strengthening regulatory frameworks and developing strategic reserves could effectively mitigate the risks from BRICS in the long run.
BRICS recently announced the addition of 13 new partner countries, including Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Nigeria, Thailand, Turkey, Uganda, Uzbekistan, and Vietnam. More NST
October 29, 2024
Indonesia to Intensify Existing Palm Oil Areas to meet Biofuel Mandate Instead of Expanding Plantations
Jakarta (ANTARA) - The Ministry of Agriculture is focusing on efforts to increase the production of crude palm oil (CPO), which is needed to make B50 biodiesel.
Acting director general of plantations at the ministry, Heru Tri Widarto, said stated on Monday that intensifying existing oil palm plantations offers a quicker solution compared to the time-consuming rejuvenation process, which can take up to three years.
"Intensification is a viable option for both smallholder and private oil palm plantations," he added.
With Indonesia's total oil palm plantation area reaching 16.8 million hectares, optimizing existing lands presents a substantial potential for production growth.
Addressing the challenge of balancing CPO demands for food, energy, and exports, Heru Tri Widarto mentioned that the Ministry of Agriculture is currently conducting a comprehensive study.
The study's findings will determine the necessary production increase to meet domestic consumption, export targets, and the requirements of the B50 biodiesel program.
He expressed confidence in the potential for significant scaling up of CPO production.
"Currently, on average, it is still 3 tons per hectare CPO equivalent. It can still be increased to 5–6 tons of CPO per hectare," Widarto said.
According to data from the Indonesian Palm Oil Association (Gapki), CPO production in 2023 was estimated to reach 50.07 million tons, an increase of 7.15 percent from 2022, when it stood at 46.73 million tons.
Gapki noted that domestic CPO consumption rose from 21.24 million tons in 2022 to 23.13 million tons in 2023.
The implementation of the B35 biodiesel policy, which has been effective since July 2022, increased palm oil consumption by 17.68 percent from 9.048 million tons in 2022 to 10.65 million tons in 2023.
The government has said that Indonesia is ready to increase the biodiesel mix from 35 percent (B35) to 40 percent (B40) in 2025 and prepare for the implementation of B50.
Related news: Govt preparing incentives for biodiesel commercialization
Related news: Biodiesel mix, CPO output increase must go hand in hand: Indef Antara News
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Malaysia to produce SAF from palm oil waste, while Thailand pumps first SAF shipments to Bangkok’s airports
The Malaysian government has announced state-owned oil company Petronas will collaborate with major palm oil producers to manufacture sustainable aviation fuel from palm oil waste. The feedstock is contentious in many western countries as development of commercial palm oil plantations often comes at the expense of tropical forests, displacing and endangering wildlife. The Malaysian move, announced in the government’s 2025 federal budget, is part of a broader drive to strengthen the country’s palm oil industry, one of the largest in the world and a key national exporter. Meanwhile, its northern neighbour Thailand is to pump first supplies of SAF to Bangkok’s two main airports, while to the south, Singapore Airlines Group is preparing to receive 500 tonnes of the fuel from Neste’s local refinery. Both the latter SAF consignments were produced from waste oils and fats.
The decision that Petronas would work with palm oil producers to make low emission aviation fuel was announced by Malaysia’s prime minister, Anwar Ibrahim, as he handed down the country’s 2025 financial budget.
But rather than a specific sustainability initiative, the announcement was buried on page 83 of the PM’s budget speech in a section dedicated to strengthening the country’s palm oil sector.
While the volumes, delivery timeframe and prospective users of the palm oil SAF were not disclosed, the PM specifically referenced the Petronas initiative as part of a broader endorsement and defence of the palm oil industry, which in the new fiscal year will also receive incentives totalling 100 million Malaysian ringgit ($23m) to replace ageing, unproductive palm trees with new crops.
The PM also encouraged major palm oil companies to support small adjacent landholders “by supplying the latest seeds and the best fertilisers, as well as helping them achieve compliance with sustainability standards.”
And he announced an allocation of 65 million Malaysian ringgit ($15m) “to counter misconceptions in Europe and enhance the sustainability of palm oil,” but provided no further details of how this campaign would be delivered.
Meanwhile, Malaysia Aviation Group (MAG), parent of Malaysia Airlines, has joined the national CEO Action Network – a coalition focused on sustainability advocacy, capacity building, action and performance. MAG will contribute to the Diversity Equity Inclusion workstream, which aligns with its commitment to IATA’s 25by2025 initiative aimed at improving women’s representation in the aviation sector. Greenair News
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DS Dansuk wins $750 mn SAF material order from Phillips 66
The S.Korean company will provide pre-treatment materials materials to US-based oil and gas refining giant
South Korea's DS Dansuk Co., which operates bioenergy, battery, and plastic recycling businesses, said on Monday it signed a 1 trillion won ($750 million) deal to supply Phillips 66, the US-based oil and gas refining giant.
DS Dansuk will supply pre-treatment materials for SAF production to Phillips 66 over three years, from December 2024 to November 2027.
The contract, which aligns with South Korea’s goal to boost SAF exports, is expected to generate revenue of 1.02 trillion to 1.26 trillion won, the company said, nearing its total 2023 sales.
SAF, derived from waste cooking oil, plastics, and palm oil, cuts carbon emissions by more than 80% compared to conventional jet fuel.
The US and European Union have introduced SAF mandates as part of net-zero targets, with the US planning to phase out conventional jet fuel by 2050.
The US oil and refining companies, including Phillips 66, are increasing investments in SAF production.
The company said in a statement that the deal underscores DS Dansuk’s role as South Korea’s top SAF material provider and integrates it into Phillips 66’s SAF supply chain.
With proprietary technology for collecting and refining SAF materials, DS Dansuk is positioning for further growth in the US and Europe, where SAF mandates are expanding.
South Korea plans to require SAF in 1% of aviation fuel for international flights starting in 2027. KED Global
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Malaysian Palm Oil Board Assisted Smallholders for Better Harvest Prices
PITAS: The issue of extremely low sale prices for fresh oil palm fruit bunches, affecting over 300 smallholders in this district, has been resolved.
There has been an increase in price of RM50 to RM70 per tonne, effective last Saturday.
The increase came following the intervention of the Malaysian Palm Oil Board (MPOB), which stepped in to address the long-standing pricing issue faced by smallholders here.
In a statement, MPOB said the price increase was achieved after reaching an agreement with the Pitas smallholder community.
"This price adjustment resolves the problem of fresh fruit bunch sales from smallholders to buyers for the long term, benefiting oil palm farmers.
"Previously, Pitas smallholders reported a price of RM530 per tonne for fresh fruit bunches, which was significantly lower than in other districts," it said.
MPOB also plans to propose to the relevant ministry the establishment of a fresh fruit bunch weighing centre in Pitas to facilitate smallholders.
"MPOB also encourages Pitas smallholders to join the Sustainable Palm Oil Growers Cooperative (KPSM) to ensure greater financial transparency, with oversight by both MPOB and the Malaysian Cooperative Commission," it added.
In addition, MPOB advised Pitas smallholders to sell their fresh fruit bunches to KPSM, as it offers better prices than other weighing centres.
Previously, more than 300 oil palm smallholders in the district claimed that buyers often deceived them by not following government-set rates. New Straits Times
Indonesia to Intensify Existing Palm Oil Areas to meet Biofuel Mandate Instead of Expanding Plantations
Jakarta (ANTARA) - The Ministry of Agriculture is focusing on efforts to increase the production of crude palm oil (CPO), which is needed to make B50 biodiesel.
Acting director general of plantations at the ministry, Heru Tri Widarto, said stated on Monday that intensifying existing oil palm plantations offers a quicker solution compared to the time-consuming rejuvenation process, which can take up to three years.
"Intensification is a viable option for both smallholder and private oil palm plantations," he added.
With Indonesia's total oil palm plantation area reaching 16.8 million hectares, optimizing existing lands presents a substantial potential for production growth.
Addressing the challenge of balancing CPO demands for food, energy, and exports, Heru Tri Widarto mentioned that the Ministry of Agriculture is currently conducting a comprehensive study.
The study's findings will determine the necessary production increase to meet domestic consumption, export targets, and the requirements of the B50 biodiesel program.
He expressed confidence in the potential for significant scaling up of CPO production.
"Currently, on average, it is still 3 tons per hectare CPO equivalent. It can still be increased to 5–6 tons of CPO per hectare," Widarto said.
According to data from the Indonesian Palm Oil Association (Gapki), CPO production in 2023 was estimated to reach 50.07 million tons, an increase of 7.15 percent from 2022, when it stood at 46.73 million tons.
Gapki noted that domestic CPO consumption rose from 21.24 million tons in 2022 to 23.13 million tons in 2023.
The implementation of the B35 biodiesel policy, which has been effective since July 2022, increased palm oil consumption by 17.68 percent from 9.048 million tons in 2022 to 10.65 million tons in 2023.
The government has said that Indonesia is ready to increase the biodiesel mix from 35 percent (B35) to 40 percent (B40) in 2025 and prepare for the implementation of B50.
Related news: Govt preparing incentives for biodiesel commercialization
Related news: Biodiesel mix, CPO output increase must go hand in hand: Indef Antara News
--------
Malaysia to produce SAF from palm oil waste, while Thailand pumps first SAF shipments to Bangkok’s airports
The Malaysian government has announced state-owned oil company Petronas will collaborate with major palm oil producers to manufacture sustainable aviation fuel from palm oil waste. The feedstock is contentious in many western countries as development of commercial palm oil plantations often comes at the expense of tropical forests, displacing and endangering wildlife. The Malaysian move, announced in the government’s 2025 federal budget, is part of a broader drive to strengthen the country’s palm oil industry, one of the largest in the world and a key national exporter. Meanwhile, its northern neighbour Thailand is to pump first supplies of SAF to Bangkok’s two main airports, while to the south, Singapore Airlines Group is preparing to receive 500 tonnes of the fuel from Neste’s local refinery. Both the latter SAF consignments were produced from waste oils and fats.
The decision that Petronas would work with palm oil producers to make low emission aviation fuel was announced by Malaysia’s prime minister, Anwar Ibrahim, as he handed down the country’s 2025 financial budget.
But rather than a specific sustainability initiative, the announcement was buried on page 83 of the PM’s budget speech in a section dedicated to strengthening the country’s palm oil sector.
While the volumes, delivery timeframe and prospective users of the palm oil SAF were not disclosed, the PM specifically referenced the Petronas initiative as part of a broader endorsement and defence of the palm oil industry, which in the new fiscal year will also receive incentives totalling 100 million Malaysian ringgit ($23m) to replace ageing, unproductive palm trees with new crops.
The PM also encouraged major palm oil companies to support small adjacent landholders “by supplying the latest seeds and the best fertilisers, as well as helping them achieve compliance with sustainability standards.”
And he announced an allocation of 65 million Malaysian ringgit ($15m) “to counter misconceptions in Europe and enhance the sustainability of palm oil,” but provided no further details of how this campaign would be delivered.
Meanwhile, Malaysia Aviation Group (MAG), parent of Malaysia Airlines, has joined the national CEO Action Network – a coalition focused on sustainability advocacy, capacity building, action and performance. MAG will contribute to the Diversity Equity Inclusion workstream, which aligns with its commitment to IATA’s 25by2025 initiative aimed at improving women’s representation in the aviation sector. Greenair News
--------
DS Dansuk wins $750 mn SAF material order from Phillips 66
The S.Korean company will provide pre-treatment materials materials to US-based oil and gas refining giant
South Korea's DS Dansuk Co., which operates bioenergy, battery, and plastic recycling businesses, said on Monday it signed a 1 trillion won ($750 million) deal to supply Phillips 66, the US-based oil and gas refining giant.
DS Dansuk will supply pre-treatment materials for SAF production to Phillips 66 over three years, from December 2024 to November 2027.
The contract, which aligns with South Korea’s goal to boost SAF exports, is expected to generate revenue of 1.02 trillion to 1.26 trillion won, the company said, nearing its total 2023 sales.
SAF, derived from waste cooking oil, plastics, and palm oil, cuts carbon emissions by more than 80% compared to conventional jet fuel.
The US and European Union have introduced SAF mandates as part of net-zero targets, with the US planning to phase out conventional jet fuel by 2050.
The US oil and refining companies, including Phillips 66, are increasing investments in SAF production.
The company said in a statement that the deal underscores DS Dansuk’s role as South Korea’s top SAF material provider and integrates it into Phillips 66’s SAF supply chain.
With proprietary technology for collecting and refining SAF materials, DS Dansuk is positioning for further growth in the US and Europe, where SAF mandates are expanding.
South Korea plans to require SAF in 1% of aviation fuel for international flights starting in 2027. KED Global
--------
Malaysian Palm Oil Board Assisted Smallholders for Better Harvest Prices
PITAS: The issue of extremely low sale prices for fresh oil palm fruit bunches, affecting over 300 smallholders in this district, has been resolved.
There has been an increase in price of RM50 to RM70 per tonne, effective last Saturday.
The increase came following the intervention of the Malaysian Palm Oil Board (MPOB), which stepped in to address the long-standing pricing issue faced by smallholders here.
In a statement, MPOB said the price increase was achieved after reaching an agreement with the Pitas smallholder community.
"This price adjustment resolves the problem of fresh fruit bunch sales from smallholders to buyers for the long term, benefiting oil palm farmers.
"Previously, Pitas smallholders reported a price of RM530 per tonne for fresh fruit bunches, which was significantly lower than in other districts," it said.
MPOB also plans to propose to the relevant ministry the establishment of a fresh fruit bunch weighing centre in Pitas to facilitate smallholders.
"MPOB also encourages Pitas smallholders to join the Sustainable Palm Oil Growers Cooperative (KPSM) to ensure greater financial transparency, with oversight by both MPOB and the Malaysian Cooperative Commission," it added.
In addition, MPOB advised Pitas smallholders to sell their fresh fruit bunches to KPSM, as it offers better prices than other weighing centres.
Previously, more than 300 oil palm smallholders in the district claimed that buyers often deceived them by not following government-set rates. New Straits Times
October 28, 2024
Palm oil’s new premium: A sign of sustainability and profitability
PALM oil has been trading at a premium to other vegetable oils on global commodity exchanges, signalling a shift in supply and demand dynamics which belie Malaysia’s serious ongoing commitment to the environment and long-term sustainability.
This trend not only reflects tightening supplies but also emphasises palm oil’s critical role as the world’s most versatile edible oil, used for both food and non-food purposes.
While global demand remains strong, reduced planting by major producers, among other factors, is pushing prices higher, reaching as high as RM4,400 per tonne in October. Additionally, Indonesia’s decision to increase its biodiesel mandate from B35 to B40 is expected to boost palm oil consumption by two- to 2.5 million tonnes next year, further limiting export availability. This reduced supply is likely to continue supporting higher palm oil prices.
PALM oil has been trading at a premium to other vegetable oils on global commodity exchanges, signalling a shift in supply and demand dynamics which belie Malaysia’s serious ongoing commitment to the environment and long-term sustainability.
This trend not only reflects tightening supplies but also emphasises palm oil’s critical role as the world’s most versatile edible oil, used for both food and non-food purposes.
While global demand remains strong, reduced planting by major producers, among other factors, is pushing prices higher, reaching as high as RM4,400 per tonne in October. Additionally, Indonesia’s decision to increase its biodiesel mandate from B35 to B40 is expected to boost palm oil consumption by two- to 2.5 million tonnes next year, further limiting export availability. This reduced supply is likely to continue supporting higher palm oil prices.
However, focusing solely on supply and demand trends overlooks the significant progress the Malaysian palm oil industry has made in balancing environmental responsibility with economic growth. In recent years, the sector has transformed with sustainability, transparency and traceability, becoming the backbone of its supply chains.
One notable achievement is the expansion of the Malaysian Sustainable Palm Oil (MSPO) certification scheme, which now covers over 80% of the industry, including smallholders who account for 27% of Malaysia’s oil palm plantations. MSPO, Malaysia’s legally mandated and independently audited standard for sustainable palm oil production, strengthens traceability across the entire supply chain.
Many Malaysian companies are also certified under both the MSPO and the RSPO (Roundtable on Sustainable Palm Oil) scheme, making palm oil one of the most certified vegetable oils globally. These efforts are making a tangible difference. According to the World Resources Institute’s Global Forest Watch, Malaysia achieved a 57% reduction in primary forest loss as of 2022, demonstrating the success of government and industry initiatives to curb deforestation.
No other vegetable oil — whether olive, rapeseed, or sunflower — faces the same level of scrutiny or commitment to sustainability as palm oil.
Of course, sustainability comes with trade-offs. The current high palm oil prices are largely due to supply shortages. Since 2019, Malaysian palm oil production has not exceeded 19.85 million tonnes, partly because the oil palm plantation area has decreased by 4.2% (247,588 hectares) over the past four years. This decline reflects Malaysia’s decision to refrain from expanding into new areas to prioritise environmental concerns. This further strengthens Malaysia’s position as a low-risk country under the European Union Deforestation Regulation, or EUDR’s unilaterally imposed benchmarking system. Malaysia has reported a reduction in the expansion of its affected commodities under EUDR, namely oil palm, timber, cocoa and rubber.
While Malaysia has seen a reduction in mature oil palm areas over the past four years, other vegetable oils are expanding. For example, Brazil has increased its soybean area by six million hectares — more than Malaysia’s entire oil palm area, which stands at 5.65 million hectares after over a century of cultivation. More The EdgeMY
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Malaysia's palm oil industry urged to transform amid global challenges
KOTA KINABALU: Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said Malaysia's palm oil industry must transform to address international challenges while maintaining its position as a global market leader.
"The industry, which serves as Malaysia's economic backbone, is faced with multiple pressures ranging from environmental concerns to market volatility and labour issues," he said at the World Palm Oil Conference 2024 closing ceremony here on Monday.
"We are confronted with numerous challenges, including persistent attacks on palm oil, which drive demand for competing alternatives, as well as labour issues that threaten the sustainability of our supply.
"However, these unprecedented challenges also present unparalleled opportunities to redefine the future of our industry," he said. Daily Express
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ESG strategies drive SD Guthrie’s long-term sustainability success
SD Guthrie Bhd (KL:SDG) has won the silver award at The Edge Malaysia ESG Awards 2024 in the plantation sector, a recognition attributed to its robust ESG strategy rooted in long-term sustainability.
“As a company with more than 200 years of history, we have survived and succeeded in what we do because we have always anticipated and responded to shifting expectations and changing landscapes,” says SD Guthrie group managing director Datuk Mohamad Helmy Othman Basha.
A cornerstone of the firm’s strategy is the mechanisation, automation and digitalisation (MAD) of its plantation operations. While some industry players remain hesitant, the company has made significant investments in these advancements, even at the expense of short-term profits.
“By implementing MAD, we believe the industry’s current land-to-man ratio (LMR) of 8ha to 9ha per worker can be increased to 11ha to 12ha, leading to a 30% reduction in workforce or 30% higher efficiency,” Mohamad Helmy says, adding that he anticipates a reduction in dependency on foreign labour.
Through concerted efforts over the past four years, the firm is approaching an LMR of 13ha per worker. It is also close to achieving a workforce composition of 30% local workers and 70% foreign workers.
Among its recent accomplishments, the firm is particularly proud of having its net-zero targets approved by the Science Based Targets initiative (SBTi), making it the world’s first palm oil company to achieve this milestone. According to Mohamad Helmy, the introduction of SBTi provided an opportunity to reassess the company’s efforts and obtain independent evaluation confirming that its targets are ambitious and aligned with the latest climate science. The EdgeMY
---------
POME biofuel imports come under discussion
At the recent meeting of the EU Energy Council, the sharp increase in imports of biofuels from palm oil mill effluent (POME) and the need for action to prevent fraud were discussed at the initiative of Ireland, Germany, Belgium and the Netherlands.
The Union for the Promotion of Oil and Protein Crops (UFOP) welcomed this overdue initiative, as the development was to be expected.
The UFOP emphasised the legal framework of the Renewable Energies Directive, which authorises member states to count biofuels from palm oil mill effluent double towards their quota obligations.
In principle, the EU Commission must, in the view of the UFOP, itself fulfil its responsibility to check that the type of raw material is in line with the procedural innovation for proving compliance with the legal requirement according to Article 28 (6) of the Renewable Energy Directive 2018/2001 (RED II): ‘Raw materials that can only be processed using advanced technologies will be included in Annex IX Part A.’ Biofuels News
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Indonesia biomass zone for Japan and S. Korea energy razes rainforest in Sulawesi
Sarjan Lahay
POHUWATO, Indonesia — Heavy trucks roll toward a semiremote coastline here on Indonesia’s Sulawesi Island before idling alongside a waiting barge, which will later make a vast shipment of wood pellets to Japan and South Korea.
The shipping terminal was built by PT Biomasa Jaya Abadi (BJA), an Indonesian firm with ambitions to become a global leader in the trade of wood pellets, which are increasingly burned alongside coal in power plants by countries trying to cut back on fossil fuels.
BJA trumpets its green credentials, writing on its website that it “embrac[es] biomass as a renewable energy source, emphasizing its role in reducing carbon emissions and fostering sustainability.”
However, the lofty talk masks a more carbon-intensive reality: BJA’s wood pellets came from the clear-cutting of more than 1,000 hectares (2,500 acres) of Sulawesi rainforest.
It’s just the latest example of deforestation-for-biomass-energy in Indonesia, with similar cases emerging in North Kalimantan and South Papua provinces.
BJA is one of seven Indonesian companies exporting wood pellets. At the same time, Indonesia has established its own targets for raising production of biomass energy, derived from burning organic materials such as wood chips. While the Southeast Asian nation currently relies on coal to generate two-thirds of its own electricity, it has committed to the United Nations Framework Convention on Climate Change (UNFCCC) to reduce its greenhouse gas emissions by 31.9% before 2030.
Planned improvements in the land-use sector, such as rules restricting new plantations on carbon-rich peatlands, account for most of Indonesia’s anticipated emissions reductions. But a large share of its international pledge relies on quickening its pivot from coal to renewables.
To carry out this transition, Indonesia’s government has embraced blending firewood with the coal it shovels into scores of power stations. This “cofiring” with biomass is classed as a form of clean energy in a country’s accounts to the UNFCCC.
“The planners are betting that they can slowly increase biomass power generation by cofiring, a strategy that would potentially extend the life of older and underutilized coal units while at the same time claiming credit for increasing the renewable energy mix,” Institute for Energy Economics and Financial Analysis (IEEFA) analyst Putra Adhiguna wrote in a 2021 paper.
Insiders assume this need will be met mostly by dedicated plantations known as hutan tanaman energi — “energy plantation forests.” But while officials have said the country has ample nonforested land on which to set up new biomass estates, civil society and forestry researchers have raised doubts about Indonesia’s ability to supply an estimated 8 million to 14 million metric tons of biomass without defacing its rainforests, which are the world’s third-largest, after Brazil and the Democratic Republic of Congo. Mongabay
Palm oil’s new premium: A sign of sustainability and profitability
PALM oil has been trading at a premium to other vegetable oils on global commodity exchanges, signalling a shift in supply and demand dynamics which belie Malaysia’s serious ongoing commitment to the environment and long-term sustainability.
This trend not only reflects tightening supplies but also emphasises palm oil’s critical role as the world’s most versatile edible oil, used for both food and non-food purposes.
While global demand remains strong, reduced planting by major producers, among other factors, is pushing prices higher, reaching as high as RM4,400 per tonne in October. Additionally, Indonesia’s decision to increase its biodiesel mandate from B35 to B40 is expected to boost palm oil consumption by two- to 2.5 million tonnes next year, further limiting export availability. This reduced supply is likely to continue supporting higher palm oil prices.
PALM oil has been trading at a premium to other vegetable oils on global commodity exchanges, signalling a shift in supply and demand dynamics which belie Malaysia’s serious ongoing commitment to the environment and long-term sustainability.
This trend not only reflects tightening supplies but also emphasises palm oil’s critical role as the world’s most versatile edible oil, used for both food and non-food purposes.
While global demand remains strong, reduced planting by major producers, among other factors, is pushing prices higher, reaching as high as RM4,400 per tonne in October. Additionally, Indonesia’s decision to increase its biodiesel mandate from B35 to B40 is expected to boost palm oil consumption by two- to 2.5 million tonnes next year, further limiting export availability. This reduced supply is likely to continue supporting higher palm oil prices.
However, focusing solely on supply and demand trends overlooks the significant progress the Malaysian palm oil industry has made in balancing environmental responsibility with economic growth. In recent years, the sector has transformed with sustainability, transparency and traceability, becoming the backbone of its supply chains.
One notable achievement is the expansion of the Malaysian Sustainable Palm Oil (MSPO) certification scheme, which now covers over 80% of the industry, including smallholders who account for 27% of Malaysia’s oil palm plantations. MSPO, Malaysia’s legally mandated and independently audited standard for sustainable palm oil production, strengthens traceability across the entire supply chain.
Many Malaysian companies are also certified under both the MSPO and the RSPO (Roundtable on Sustainable Palm Oil) scheme, making palm oil one of the most certified vegetable oils globally. These efforts are making a tangible difference. According to the World Resources Institute’s Global Forest Watch, Malaysia achieved a 57% reduction in primary forest loss as of 2022, demonstrating the success of government and industry initiatives to curb deforestation.
No other vegetable oil — whether olive, rapeseed, or sunflower — faces the same level of scrutiny or commitment to sustainability as palm oil.
Of course, sustainability comes with trade-offs. The current high palm oil prices are largely due to supply shortages. Since 2019, Malaysian palm oil production has not exceeded 19.85 million tonnes, partly because the oil palm plantation area has decreased by 4.2% (247,588 hectares) over the past four years. This decline reflects Malaysia’s decision to refrain from expanding into new areas to prioritise environmental concerns. This further strengthens Malaysia’s position as a low-risk country under the European Union Deforestation Regulation, or EUDR’s unilaterally imposed benchmarking system. Malaysia has reported a reduction in the expansion of its affected commodities under EUDR, namely oil palm, timber, cocoa and rubber.
While Malaysia has seen a reduction in mature oil palm areas over the past four years, other vegetable oils are expanding. For example, Brazil has increased its soybean area by six million hectares — more than Malaysia’s entire oil palm area, which stands at 5.65 million hectares after over a century of cultivation. More The EdgeMY
--------
Malaysia's palm oil industry urged to transform amid global challenges
KOTA KINABALU: Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said Malaysia's palm oil industry must transform to address international challenges while maintaining its position as a global market leader.
"The industry, which serves as Malaysia's economic backbone, is faced with multiple pressures ranging from environmental concerns to market volatility and labour issues," he said at the World Palm Oil Conference 2024 closing ceremony here on Monday.
"We are confronted with numerous challenges, including persistent attacks on palm oil, which drive demand for competing alternatives, as well as labour issues that threaten the sustainability of our supply.
"However, these unprecedented challenges also present unparalleled opportunities to redefine the future of our industry," he said. Daily Express
--------
ESG strategies drive SD Guthrie’s long-term sustainability success
SD Guthrie Bhd (KL:SDG) has won the silver award at The Edge Malaysia ESG Awards 2024 in the plantation sector, a recognition attributed to its robust ESG strategy rooted in long-term sustainability.
“As a company with more than 200 years of history, we have survived and succeeded in what we do because we have always anticipated and responded to shifting expectations and changing landscapes,” says SD Guthrie group managing director Datuk Mohamad Helmy Othman Basha.
A cornerstone of the firm’s strategy is the mechanisation, automation and digitalisation (MAD) of its plantation operations. While some industry players remain hesitant, the company has made significant investments in these advancements, even at the expense of short-term profits.
“By implementing MAD, we believe the industry’s current land-to-man ratio (LMR) of 8ha to 9ha per worker can be increased to 11ha to 12ha, leading to a 30% reduction in workforce or 30% higher efficiency,” Mohamad Helmy says, adding that he anticipates a reduction in dependency on foreign labour.
Through concerted efforts over the past four years, the firm is approaching an LMR of 13ha per worker. It is also close to achieving a workforce composition of 30% local workers and 70% foreign workers.
Among its recent accomplishments, the firm is particularly proud of having its net-zero targets approved by the Science Based Targets initiative (SBTi), making it the world’s first palm oil company to achieve this milestone. According to Mohamad Helmy, the introduction of SBTi provided an opportunity to reassess the company’s efforts and obtain independent evaluation confirming that its targets are ambitious and aligned with the latest climate science. The EdgeMY
---------
POME biofuel imports come under discussion
At the recent meeting of the EU Energy Council, the sharp increase in imports of biofuels from palm oil mill effluent (POME) and the need for action to prevent fraud were discussed at the initiative of Ireland, Germany, Belgium and the Netherlands.
The Union for the Promotion of Oil and Protein Crops (UFOP) welcomed this overdue initiative, as the development was to be expected.
The UFOP emphasised the legal framework of the Renewable Energies Directive, which authorises member states to count biofuels from palm oil mill effluent double towards their quota obligations.
In principle, the EU Commission must, in the view of the UFOP, itself fulfil its responsibility to check that the type of raw material is in line with the procedural innovation for proving compliance with the legal requirement according to Article 28 (6) of the Renewable Energy Directive 2018/2001 (RED II): ‘Raw materials that can only be processed using advanced technologies will be included in Annex IX Part A.’ Biofuels News
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Indonesia biomass zone for Japan and S. Korea energy razes rainforest in Sulawesi
Sarjan Lahay
- In 2022, Indonesia’s then-president, Joko Widodo, revoked hundreds of operating permits affecting millions of hectares of land previously zoned for new mines and plantations.
- A small proportion of this land has since been reallocated for “energy plantation forests,” in which an area is cleared to plant fast-growing trees that are later cut and chipped to replace some of the coal burned by power plants.
- On the island of Sulawesi, an Indonesian company is exporting wood pellets sourced from two firms that held oil palm licenses prior to the 2022 policy move.
- While biomass cofiring is accounted as a form of renewable energy, environmentalists object to clearing forests as a means of offsetting coal emissions.
POHUWATO, Indonesia — Heavy trucks roll toward a semiremote coastline here on Indonesia’s Sulawesi Island before idling alongside a waiting barge, which will later make a vast shipment of wood pellets to Japan and South Korea.
The shipping terminal was built by PT Biomasa Jaya Abadi (BJA), an Indonesian firm with ambitions to become a global leader in the trade of wood pellets, which are increasingly burned alongside coal in power plants by countries trying to cut back on fossil fuels.
BJA trumpets its green credentials, writing on its website that it “embrac[es] biomass as a renewable energy source, emphasizing its role in reducing carbon emissions and fostering sustainability.”
However, the lofty talk masks a more carbon-intensive reality: BJA’s wood pellets came from the clear-cutting of more than 1,000 hectares (2,500 acres) of Sulawesi rainforest.
It’s just the latest example of deforestation-for-biomass-energy in Indonesia, with similar cases emerging in North Kalimantan and South Papua provinces.
BJA is one of seven Indonesian companies exporting wood pellets. At the same time, Indonesia has established its own targets for raising production of biomass energy, derived from burning organic materials such as wood chips. While the Southeast Asian nation currently relies on coal to generate two-thirds of its own electricity, it has committed to the United Nations Framework Convention on Climate Change (UNFCCC) to reduce its greenhouse gas emissions by 31.9% before 2030.
Planned improvements in the land-use sector, such as rules restricting new plantations on carbon-rich peatlands, account for most of Indonesia’s anticipated emissions reductions. But a large share of its international pledge relies on quickening its pivot from coal to renewables.
To carry out this transition, Indonesia’s government has embraced blending firewood with the coal it shovels into scores of power stations. This “cofiring” with biomass is classed as a form of clean energy in a country’s accounts to the UNFCCC.
“The planners are betting that they can slowly increase biomass power generation by cofiring, a strategy that would potentially extend the life of older and underutilized coal units while at the same time claiming credit for increasing the renewable energy mix,” Institute for Energy Economics and Financial Analysis (IEEFA) analyst Putra Adhiguna wrote in a 2021 paper.
Insiders assume this need will be met mostly by dedicated plantations known as hutan tanaman energi — “energy plantation forests.” But while officials have said the country has ample nonforested land on which to set up new biomass estates, civil society and forestry researchers have raised doubts about Indonesia’s ability to supply an estimated 8 million to 14 million metric tons of biomass without defacing its rainforests, which are the world’s third-largest, after Brazil and the Democratic Republic of Congo. Mongabay
October 27, 2024
Gapki Reveals A Number Of Challenges In The Palm Oil Industry
JAKARTA - The Indonesian Palm Oil Entrepreneurs Association (Gapki) stated that during 2024 the palm oil industry still faces a number of challenges both domestically and globally.
According to General Treasurer Gapki Mona Surya, domestic challenges such as issues regarding stagnation in production and productivity, policy uncertainty, and the average age of plants entering the replanting period.
"Some of these challenges need special attention from stakeholders," Mona said, quoting Antara.
Meanwhile, challenges from abroad faced include a balance between supply and demand for other vegetable oils, a negative campaign related to sustainable supply chains to geopolitical factors in Europe and the Middle East.
One of the policy challenges from the European Union, he continued, is that the European Union's Deforestation Policy (EUDR) risks becoming an obstacle in the international market.
"This policy has the potential to have a significant impact on palm oil farmers in main producing countries such as Indonesia (41 percent of global production) and Malaysia (27 percent)," he said.
Responding to the dynamics full of uncertainty, Gapki is ready to hold 20th Indonesian Palm Oil Conference and 2025 Price Outlook (IPOC 2024) on November 6-8 2024 in Nusa Dua, Bali.
With the theme "Seizing Opportunities Amid Global Uncertainty", continued Mona who is also the Chair of the IPOC Implementation Committee 2024, this conference is expected to be a strategic forum to discuss various opportunities amid global uncertainty.
According to him, the conference will also present an in-depth analysis of the global vegetable oil market situation, focusing on the latest developments and dynamics affecting the palm oil industry.
"The various policies of Indonesian palm oil, market perspectives from importing countries, as well as the analysis of the world's supply and demand for palm oil will be the main discussion topic in the 2024 IPOC," he said. VOI
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EU, stakeholders meet on compliance with deforestation regulation,sustainability
By Joseph Erunke, Abuja
Stakeholders have received the report of an EU-funded study analysing the preparedness of cocoa and other value chains to comply with the European Union Deforestation Regulation,EUDR.
Products covered under the EUDR include cocoa as well as palm oil, cattle, soy, coffee, timber, rubber, and their derivatives (beef, furniture, and chocolate are also listed). As the EU attracts 67 percent of cocoa exports from Nigeria, preparedness in this sector is particularly critical.
Speaking at the event in Abuja, Massimo De Luca, Head of Cooperation, EU Delegation to Nigeria and ECOWAS, stated that the EU aims to develop a strategy that both protects the environment and mitigates the effects of climate change. “In cocoa farming, a lot of virgin land is cleared, and farmers utilise such forested lands to farm. This is why the EUDR is important to discourage deforestation, but also why the EU is here to support the local farmers with improved agro-ecological techniques and improvements in productivity,” he said.
The workshop also presented the EU Corporate Sustainability Due Diligence Directive (CS3D), a new legislative instruments applying to all value chains and requiring that, while conducting economic activities, companies should minimise negative environmental and social impacts.
Explaining the significance of the CS3D, Massimo De Luca added, “From water, to child labour, companies need to assess risks associated with their activities and measures to remedy, including compliance with national and international standards.”
Represented by Ajayi Olutobaba, Deputy Director, Cocoa/Member, National Cocoa Management Committee, Federal Ministry of Agriculture and Food Security, Senator Abubakar Kyari, Minister of Agriculture and Food Security, welcomed the EU’s partnership with the Federal Ministry of Agriculture and Food Security and the introduction of the EUDR.
“The EU’s partnership with the Ministry on the critical issue of the EUDR, and the need for due diligence assessments to be conducted in relevant value chains, is a welcome development,” he said.
“Given the importance of the EUDR and the need to ensure due diligence assessments in Nigeria’s cocoa sector to guarantee deforestation-free supply chains for cocoa and other agricultural products, I recently inaugurated the National Taskforce on EUDR, comprising all relevant stakeholders in the affected value chains,” he announced.
“The National Taskforce, chaired by me, aims to develop a unified national approach to meet the EU’s deadlines. We have already begun operations and hope to achieve our objectives as soon as possible.”
In his presentation, Javier Sánchez, key expert commissioned by the European Commission, noted that while the EUDR presents short-term challenges for producing countries, it offers significant opportunities in the medium term.
“The EUDR should not be seen as a disadvantage for Nigeria. This is an opportunity to enhance environmental sustainability, create sustainable value chains, and strengthen compliance with national regulations across the value chain,” he said.
Sánchez emphasised that compliance with the EUDR strengthens the role of small producers in international value chains by promoting transparency, allowing consumers to know the origins of cocoa, coffee, and other products.
“The private sector, particularly EU-based importers, is the key player responsible for EUDR implementation. They will face significant sanctions for non-compliance. Due to the structure of the value chain, they will then also look to the upstream actors, especially cooperatives and middlemen, who have information about the origin of the products, to ensure EUDR is complied with.” VanguardNGR
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US-Malaysia economic ties generate 312,000 new jobs
KUALA LUMPUR: Over the last decade, the economic relationship between the United States (US) and Malaysia has grown remarkably, resulting in the creation of more than 312,000 jobs, with the US being the leading source of foreign direct investment (FDI) in Malaysia.
According to Dave Williams, the Economic Counselor at the US Embassy in Kuala Lumpur, American companies have announced over RM200 billion in new investments since 2021, with 72 per cent coming from Fortune 500 companies.
"Just this year, Google, Microsoft, Amazon, and Oracle have announced more than US$16 billion worth of investments in Malaysia.
"These quality investments not only bolster the local economy but also create thousands of jobs for Malaysians," he said.
He also said that the recent announcements and groundbreaking of new major investments in Malaysia underscores the strong confidence that US companies have in Malaysia as a prime investment destination.
"US companies are attracted by Malaysia's highly skilled workforce, widespread English proficiency, strategic location, and robust network of suppliers and supply chain partners," he said.
He added that Prime Minister Datuk Seri Anwar Ibrahim and other key Malaysian leaders' participation in the Asia-Pacific Economic Cooperation (APEC) 2023 underscored the fact that APEC remains as important as ever.
"After his return from San Francisco, the Prime Minister announced billions in new investment commitments from US companies, highlighting the tangible benefits of Malaysia's engagement in APEC," he said.
On Oct 24, Malaysia and the US acknowledged that the development of trade and economic relations is a key aspect of strengthening cooperation between the two countries and welcomed further discussion on trade and agriculture topics.
"The US welcomed Malaysia's briefing on its efforts to increase sustainability through recognition of sustainable certification systems, including for timber and palm oil products.
"The countries have also pledged to explore possibilities for cooperation to improve sustainability," the governments said in a joint statement on the sixth Malaysia-US Senior Officials' Dialogue recently.
Both countries also highlighted their interest in exploring further cooperation in science and technology by recognising potential synergies in space, biotechnology, agriculture, small and medium enterprise development, capacity-building, healthcare cooperation, and vaccine research cooperation. New Straits Times
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Small Malaysian enterprises turn waste into wealth with used cooking oil business
He said the used cooking oil can also be used as biodiesel, a more environmentally friendly substitute for fossil fuels.
SEREMBAN - It all began with wanting to help the community earn income by selling sell used cooking oil about five years ago, Mohd Hazim Mohd Mustazar, 33, is now able to earn a five-figure income a month.
A Diploma in Business Management graduate from Universiti Teknologi Mara (UiTM) Segamat, Johor, purchases used cooking oil for RM2 to RM3 per kilogramme from various sources and collects up to 30 to 40 tons each month for resale.
The owner of Infinite Refining Resources, which operates in Taman Tasik Jaya Industrial Area, said his company is registered and licensed by the Malaysian Palm Oil Board (MPOB).
"Used cooking oil has value and can be recycled, I began exploring its potential in 2019 to benefit the community," he told Bernama recently.
He said the used cooking oil can also be used as biodiesel, a more environmentally friendly substitute for fossil fuels.
He said most of the used cooking oil is obtained from eateries, restaurants, food stalls, and communities in villages or residential parks.
Additionally, he sources oil from recycling programmes organised by various quarters.
Meanwhile, Natrah Mat Kasim, 45, started collecting and selling used cooking oil after learning it could provide a good income after joining a used cooking oil campaign organised by the Kawasan Rukun Tetangga (KRT) in her neighbourhood.
She said she was able to get RM70 for selling 10kg of used cooking oil.
Meanwhile, Negeri Sembilan Solid Waste Management and Public Cleansing Management Corporation (SWCorp) director Cairul Hisham Jalaluddin said the campaign to collect used cooking oil has been carried out since 2022.
He said it was carried out through the 'Trash To Cash' programme in schools, local communities and institutions of higher learning, he said.
"Instead of throwing away used cooking oil and causing environmental pollution, it is better to use it as a source of income,” he added.
He said that from January to September this year, 13,819 kg of used cooking oil has been collected.
"At the initial stage the collection data was zero, but since we actively organised the campaign, it showed a very sharp increase through collaboration with registered collectors to buy the used oil," he said. - BERNAMA/ SinarDaily
Gapki Reveals A Number Of Challenges In The Palm Oil Industry
JAKARTA - The Indonesian Palm Oil Entrepreneurs Association (Gapki) stated that during 2024 the palm oil industry still faces a number of challenges both domestically and globally.
According to General Treasurer Gapki Mona Surya, domestic challenges such as issues regarding stagnation in production and productivity, policy uncertainty, and the average age of plants entering the replanting period.
"Some of these challenges need special attention from stakeholders," Mona said, quoting Antara.
Meanwhile, challenges from abroad faced include a balance between supply and demand for other vegetable oils, a negative campaign related to sustainable supply chains to geopolitical factors in Europe and the Middle East.
One of the policy challenges from the European Union, he continued, is that the European Union's Deforestation Policy (EUDR) risks becoming an obstacle in the international market.
"This policy has the potential to have a significant impact on palm oil farmers in main producing countries such as Indonesia (41 percent of global production) and Malaysia (27 percent)," he said.
Responding to the dynamics full of uncertainty, Gapki is ready to hold 20th Indonesian Palm Oil Conference and 2025 Price Outlook (IPOC 2024) on November 6-8 2024 in Nusa Dua, Bali.
With the theme "Seizing Opportunities Amid Global Uncertainty", continued Mona who is also the Chair of the IPOC Implementation Committee 2024, this conference is expected to be a strategic forum to discuss various opportunities amid global uncertainty.
According to him, the conference will also present an in-depth analysis of the global vegetable oil market situation, focusing on the latest developments and dynamics affecting the palm oil industry.
"The various policies of Indonesian palm oil, market perspectives from importing countries, as well as the analysis of the world's supply and demand for palm oil will be the main discussion topic in the 2024 IPOC," he said. VOI
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EU, stakeholders meet on compliance with deforestation regulation,sustainability
By Joseph Erunke, Abuja
Stakeholders have received the report of an EU-funded study analysing the preparedness of cocoa and other value chains to comply with the European Union Deforestation Regulation,EUDR.
Products covered under the EUDR include cocoa as well as palm oil, cattle, soy, coffee, timber, rubber, and their derivatives (beef, furniture, and chocolate are also listed). As the EU attracts 67 percent of cocoa exports from Nigeria, preparedness in this sector is particularly critical.
Speaking at the event in Abuja, Massimo De Luca, Head of Cooperation, EU Delegation to Nigeria and ECOWAS, stated that the EU aims to develop a strategy that both protects the environment and mitigates the effects of climate change. “In cocoa farming, a lot of virgin land is cleared, and farmers utilise such forested lands to farm. This is why the EUDR is important to discourage deforestation, but also why the EU is here to support the local farmers with improved agro-ecological techniques and improvements in productivity,” he said.
The workshop also presented the EU Corporate Sustainability Due Diligence Directive (CS3D), a new legislative instruments applying to all value chains and requiring that, while conducting economic activities, companies should minimise negative environmental and social impacts.
Explaining the significance of the CS3D, Massimo De Luca added, “From water, to child labour, companies need to assess risks associated with their activities and measures to remedy, including compliance with national and international standards.”
Represented by Ajayi Olutobaba, Deputy Director, Cocoa/Member, National Cocoa Management Committee, Federal Ministry of Agriculture and Food Security, Senator Abubakar Kyari, Minister of Agriculture and Food Security, welcomed the EU’s partnership with the Federal Ministry of Agriculture and Food Security and the introduction of the EUDR.
“The EU’s partnership with the Ministry on the critical issue of the EUDR, and the need for due diligence assessments to be conducted in relevant value chains, is a welcome development,” he said.
“Given the importance of the EUDR and the need to ensure due diligence assessments in Nigeria’s cocoa sector to guarantee deforestation-free supply chains for cocoa and other agricultural products, I recently inaugurated the National Taskforce on EUDR, comprising all relevant stakeholders in the affected value chains,” he announced.
“The National Taskforce, chaired by me, aims to develop a unified national approach to meet the EU’s deadlines. We have already begun operations and hope to achieve our objectives as soon as possible.”
In his presentation, Javier Sánchez, key expert commissioned by the European Commission, noted that while the EUDR presents short-term challenges for producing countries, it offers significant opportunities in the medium term.
“The EUDR should not be seen as a disadvantage for Nigeria. This is an opportunity to enhance environmental sustainability, create sustainable value chains, and strengthen compliance with national regulations across the value chain,” he said.
Sánchez emphasised that compliance with the EUDR strengthens the role of small producers in international value chains by promoting transparency, allowing consumers to know the origins of cocoa, coffee, and other products.
“The private sector, particularly EU-based importers, is the key player responsible for EUDR implementation. They will face significant sanctions for non-compliance. Due to the structure of the value chain, they will then also look to the upstream actors, especially cooperatives and middlemen, who have information about the origin of the products, to ensure EUDR is complied with.” VanguardNGR
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US-Malaysia economic ties generate 312,000 new jobs
KUALA LUMPUR: Over the last decade, the economic relationship between the United States (US) and Malaysia has grown remarkably, resulting in the creation of more than 312,000 jobs, with the US being the leading source of foreign direct investment (FDI) in Malaysia.
According to Dave Williams, the Economic Counselor at the US Embassy in Kuala Lumpur, American companies have announced over RM200 billion in new investments since 2021, with 72 per cent coming from Fortune 500 companies.
"Just this year, Google, Microsoft, Amazon, and Oracle have announced more than US$16 billion worth of investments in Malaysia.
"These quality investments not only bolster the local economy but also create thousands of jobs for Malaysians," he said.
He also said that the recent announcements and groundbreaking of new major investments in Malaysia underscores the strong confidence that US companies have in Malaysia as a prime investment destination.
"US companies are attracted by Malaysia's highly skilled workforce, widespread English proficiency, strategic location, and robust network of suppliers and supply chain partners," he said.
He added that Prime Minister Datuk Seri Anwar Ibrahim and other key Malaysian leaders' participation in the Asia-Pacific Economic Cooperation (APEC) 2023 underscored the fact that APEC remains as important as ever.
"After his return from San Francisco, the Prime Minister announced billions in new investment commitments from US companies, highlighting the tangible benefits of Malaysia's engagement in APEC," he said.
On Oct 24, Malaysia and the US acknowledged that the development of trade and economic relations is a key aspect of strengthening cooperation between the two countries and welcomed further discussion on trade and agriculture topics.
"The US welcomed Malaysia's briefing on its efforts to increase sustainability through recognition of sustainable certification systems, including for timber and palm oil products.
"The countries have also pledged to explore possibilities for cooperation to improve sustainability," the governments said in a joint statement on the sixth Malaysia-US Senior Officials' Dialogue recently.
Both countries also highlighted their interest in exploring further cooperation in science and technology by recognising potential synergies in space, biotechnology, agriculture, small and medium enterprise development, capacity-building, healthcare cooperation, and vaccine research cooperation. New Straits Times
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Small Malaysian enterprises turn waste into wealth with used cooking oil business
He said the used cooking oil can also be used as biodiesel, a more environmentally friendly substitute for fossil fuels.
SEREMBAN - It all began with wanting to help the community earn income by selling sell used cooking oil about five years ago, Mohd Hazim Mohd Mustazar, 33, is now able to earn a five-figure income a month.
A Diploma in Business Management graduate from Universiti Teknologi Mara (UiTM) Segamat, Johor, purchases used cooking oil for RM2 to RM3 per kilogramme from various sources and collects up to 30 to 40 tons each month for resale.
The owner of Infinite Refining Resources, which operates in Taman Tasik Jaya Industrial Area, said his company is registered and licensed by the Malaysian Palm Oil Board (MPOB).
"Used cooking oil has value and can be recycled, I began exploring its potential in 2019 to benefit the community," he told Bernama recently.
He said the used cooking oil can also be used as biodiesel, a more environmentally friendly substitute for fossil fuels.
He said most of the used cooking oil is obtained from eateries, restaurants, food stalls, and communities in villages or residential parks.
Additionally, he sources oil from recycling programmes organised by various quarters.
Meanwhile, Natrah Mat Kasim, 45, started collecting and selling used cooking oil after learning it could provide a good income after joining a used cooking oil campaign organised by the Kawasan Rukun Tetangga (KRT) in her neighbourhood.
She said she was able to get RM70 for selling 10kg of used cooking oil.
Meanwhile, Negeri Sembilan Solid Waste Management and Public Cleansing Management Corporation (SWCorp) director Cairul Hisham Jalaluddin said the campaign to collect used cooking oil has been carried out since 2022.
He said it was carried out through the 'Trash To Cash' programme in schools, local communities and institutions of higher learning, he said.
"Instead of throwing away used cooking oil and causing environmental pollution, it is better to use it as a source of income,” he added.
He said that from January to September this year, 13,819 kg of used cooking oil has been collected.
"At the initial stage the collection data was zero, but since we actively organised the campaign, it showed a very sharp increase through collaboration with registered collectors to buy the used oil," he said. - BERNAMA/ SinarDaily
October 25, 2024
RSPO Reiterates FPIC and Components to Address Deforestation Remain Key Criteria in 2024 RSPO Standards
KUALA LUMPUR, Malaysia, Oct. 25, 2024 /PRNewswire/ -- The RSPO has recently observed factually incorrect statements concerning the draft 2024 RSPO Standards in relation to Free, Prior and Informed Consent (FPIC) and No Deforestation, published by Infosawit and Greenpeace.
RSPO is immensely proud of the revised 2024 RSPO Principles and Criteria and the 2024 Independent Smallholder Standard. These standards have been developed by the organisation's members in a long, transparent and inclusive process, reflecting our shared commitment to sustainability, community rights, and environmental protection. These standards were unanimously endorsed by the multistakeholder RSPO Board of Governors, and proposed for adoption by RSPO Members at the General Assembly in Bangkok, Thailand, on 13 November 2024. They represent a significant step forward in ensuring the sustainable growth of the palm oil industry through implementable and auditable standards.
RSPO remains committed to strengthening the implementation of FPIC
Among the key highlights of the new Standards are strengthened commitments to human rights. RSPO reiterates that there has been no reduction in the requirements for Free, Prior and Informed Consent (FPIC) in the updated Standards. Our global partnership remains fully committed to protecting the rights of Indigenous Peoples and local communities through robust and clear FPIC processes, ensuring that affected groups are fully informed and have given their consent before any development takes place on their lands.
To this end, RSPO will continue to work with its members, including growers and social NGOs, to strengthen how FPIC requirements are applied on the ground, particularly in contentious areas where legacy issues prevail.
New RSPO Standards adopt a more refined approach to deforestation
The RSPO Standards have prohibited the conversion of primary forests since 2005 and prohibited any deforestation (based on High Conservation Value and High Carbon Stock assessments of forests and high carbon environments) since 15 November 2018.
Contrary to the inaccurate reporting by Greenpeace, addressing deforestation remains a key criterion in the RSPO Standards. The 2024 revision builds on the solid foundation set by the 2018 Principles and Criteria (P&C), refining and enhancing key components to address implementation challenges. Central to this revision is the implementation of the Integrated High Conservation Value-High Carbon Stock (HCV-HCS) approach. The revised HCS definition emphasises proxies, such as above-ground and below-ground carbon storage, to measure how carbon is sequestered within forest ecosystems and explicitly references the Integrated HCV-HCSA Assessment Manual, which incorporates fundamental components from the HCSA Toolkit.
RSPO Certification remains closely aligned with the EU Deforestation Regulation (EUDR). Despite the potential delay in the EUDR implementation, RSPO will continue to prepare to facilitate compliance for our members. The RSPO will soon begin transitioning to a new digital traceability system, prisma, which will allow members to incorporate EUDR-compliance geolocation data into their traceability records, thus facilitating adherence to both RSPO Certification and EUDR Requirements.
It is worth noting that as a global standard, RSPO endeavours to provide coherence against a range of regulatory requirements beyond the EUDR, including no-deforestation regulations in other jurisdictions and regulatory requirements on human rights, labour, and other sustainability issues such as gender policies, pesticides and water management.
The RSPO remains committed to promoting sustainable palm oil production that balances social, environmental and economic benefits in an equitable way. We look forward to continued dialogue with all stakeholders to ensure that the 2024 RSPO Standards are implemented with the highest level of integrity and transparency. PR Newswire
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RSPO Weakens Standard on No Deforestation, Misses Opportunity to Become Compliant With Incoming EU Deforestation Regulation
Jakarta, 24 October 2024 – The Roundtable on Sustainable Palm Oil (RSPO) has revised its key rule set for member companies, known as its ‘Principles and Criteria’. Grant Rosoman, Senior Advisor at Greenpeace International said of the new changes: “In its revised Principles and Criteria the RSPO has scored an ‘own goal’ by weakening its commitment to ensuring No Deforestation, its very raison d’être. It has dropped the hard-won definition of High Carbon Stock forest – the global No Deforestation standard created through a long collaboration between companies, small-scale growers, scientists and environmentalists, embodied in the HCS Approach Toolkit. The definition of HCS that RSPO members must apply before development is now perversely based on a comparison with the amount of carbon that may be accumulated by oil palms taking the place of forest destroyed for a plantation.”
“As well, shockingly, the standard allows deforestation after November 2018, as long as remedy and compensation procedures are applied, meaning the RSPO standard will remain non-compliant with the incoming EU Deforestation Regulation. Surely the RSPO should aim to ensure the relevance of its standard, future-proofing it with an absolute No Deforestation cut-off date to ensure basic compliance with one of its key markets,” added Rosoman.
“This fits with the lobbying by many companies against the EU Deforestation Regulation so they can continue destroying forest to expand plantations, and their general weakening of commitments to No Deforestation, such as pushing out having ‘clean’ supply chains to by 2025 or beyond.” said Rosoman.
Kiki Taufik, Global Project Leader of Indonesia Forest Campaign, Greenpeace South East Asia said: “I am disappointed that under its the new standard the RSPO will continue to turn a blind eye to deforestation and human rights abuses that are committed at a corporate group level by RSPO certified member companies. Many of Indonesia’s oligarchs use ‘shadow’ companies, owned by untouchable entities in offshore secrecy jurisdictions to do the dirty work of deforestation and land clearance that they themselves have pledged not to do. To have any credibility the RSPO needs to enforce the principle of group-level accountability. This means proactively ensuring that no deforestation is being carried out by companies under common control with its certified members, rather than relying on their self-declarations.”
“One positive aspect of the new standard is that RSPO’s commitment to no development of peatland areas for oil palm plantations remains, although the requirements for phasing-out plantations on peat need to be strengthened and sped up. This is critical for Indonesia to help protect biodiversity, and reduce peatland fires, regional haze and greenhouse gas emissions,” Kiki said.
Notes to editor
New RSPO standard documents available here
High Carbon Stock Approach (HCSA) Toolkit available here
Greenpeace International’s 2021 report on certification schemes including the RSPO, entitled ‘Destruction: Certified’ can be read here.
Media contact: Igor O’Neill, Greenpeace Indonesia Forest Campaign +61 414-288-424 [email protected]
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Indonesian Govt preparing incentives for biodiesel commercialization
Jakarta (ANTARA) - The government and relevant parties are currently developing financial and incentive policies to support the commercialization of biodiesel, particularly through partnerships between smallholder farmers, independent farmers, and biodiesel producers.
Director of bioenergy at the Ministry of Energy and Mineral Resources, Edi Wibowo, here on Thursday emphasized the importance of sustainable biodiesel development, especially the future implementation of B100.
He said that biodiesel development will not only involve his ministry but also the Ministry of Agriculture, the Coordinating Ministry for Economic Affairs, and other stakeholders, including palm oil companies and farmers.
"Biodiesel production heavily relies on palm oil as the primary raw material. Therefore, the role of palm oil farmers, both smallholder and independent, is crucial," Wibowo explained.
Wibowo further said that the partnership between farmers and companies must be strengthened to ensure that the biodiesel program not only succeeds in the industrial sector but also directly benefits palm oil farmers.
According to the institutional coordinator at the Directorate of Oil Palm and Various Palms of the Ministry of Agriculture, Mula Putra, the government will increase the capacity of human resources through apprenticeships and training programs for cultivators.
Data collection through the Cultivation Registration Certificate will be strengthened to improve the trade of oil palm fresh fruit bunches (FFB) and increase farmers' income through the integration of intercropping, animal husbandry, and palm oil waste utilization.
Putra expressed optimism that these measures would boost the productivity of oil palm plantation smallholders to 30–40 tons of FFB per hectare with a yield of 23–25 percent.
"The increase is expected to support the palm oil-based biodiesel program and improve the welfare of Indonesian palm oil farmers," he said. Antara News
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Adani Wilmar to raise cooking oil prices by 20% following import duty hike
This follows the government's recent decision to raise import duties on refined oils.
New Delhi: Edible oil and flour maker Adani Wilmar could raise prices of cooking oil by at least 20% in the current quarter following the government's move to impose higher import duties on refined oils.
On 14 September India raised the basic import tax on crude and refined edible oils.
Basic customs duty on crude soybean oil, crude palm oil, and crude sunflower oil was hiked to 20% from 0%, resulting in an effective duty rate of 27.5% on crude oils. Basic customs duty refers to a tax on imported goods to protect domestic industries by making imports more expensive.
Similarly, the basic custom duty on refined palm oil, refined sunflower oil, and refined soybean oil has been raised to 32.5% from 12.5%, with an effective duty rate of 35.75% on refined oils. More at Livemint
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JOINT STATEMENT ON THE 6TH MALAYSIA-UNITED STATES SENIOR OFFICIALS' DIALOGUE
The text of the following statement was released by the Governments of Malaysia and the United States of America on the occasion of the 6th Senior Officials’ Dialogue in Putrajaya, Malaysia on October 21,2024. The Dialogue also marked the 10th anniversary of the Malaysia-United States Comprehensive Partnership.
To commemorate the 10th anniversary of the Malaysia-United States Comprehensive Partnership, Malaysia and the United States held the 6th Senior Officials’ Dialogue on October 21, 2024 in Putrajaya, Malaysia to reaffirm the deep and growing partnership between both countries. Ministry of Foreign Affairs Secretary General Dato’ Sri Amran Mohamed Zin led the Malaysian delegation, and Assistant Secretary of State for East Asian and Pacific Affairs Daniel J. Kritenbrink led the United States delegation.
The dialogue underscored the importance of sustained cooperation across a broad range of issues, including trade and investment, peace and security, and people-to-people ties, as well as regional and global issues.
Both sides noted with great satisfaction the deep-rooted ties between the two countries, especially in economic cooperation, and acknowledged the importance of advancing the cooperation while emphasizingsustainability. Malaysia and the United States acknowledged that the development of trade and economic relations is a key aspect of strengthening cooperation between the two countries and welcomed further discussion on t rade and agriculture topics. The United States welcomed Malaysia’s briefing on its efforts to increase sustainability through recognition of sustainable certification systems, including for timber and palm oil products. Both sides also pledged to explore possibilities for cooperation to improve sustainability. Both parties are continuing the cooperative activities reflected in the Memorandum of Cooperation on Semiconductor Supply Chain Resilience (MOC) signed in 2022. Malaysia and the United States also acknowledged interest in exploring further cooperation in science and technology by recognizing potential synergies on space, biotechnology, agriculture, Small and Medium Enterprise (SME) development, capacity- building, healthcarecooperation, and vaccine researchcooperation.
Additionally, the two sides recognized the importanceof collaboration in high-growthsectors such as cooperation in semiconductors, digital economy, renewable energy, and critical minerals. Joint efforts will also focus on improving supply chain resilience, accelerating the clean energy transition, and fostering private sector partnerships that could stimulate innovation and job creation. Malaysia and the United States appreciated the ongoing efforts under the Indo Pacific Economic Framework (IPEF) and committed to pursue deeper engagement to support sustainable and inclusive growth. Both sides have committed to continue collaboration in capacity building for SME development.
Both sides further reaffirmed theircommitment to advancing peace andsecurity cooperation, focusing on maintaining peaceand stability in the Indo-Pacific region. Key areas of focus will include combating transnational crime and trafficking in persons, countering terrorism, upholding the internationallaw of the sea as reflected in the 1982 Law of the Sea Convention (UNCLOS), and addressing emerging security challenges. The United States and Malaysia reaffirmed the importance of peace and stability in the South China Sea as essential elements of regional security. Additionally, Malaysia expressed appreciation for the United States’ recognition of Malaysia’s efforts to combat trafficking in persons, which resulted in an upgrade to Tier 2 in the 2024 Trafficking in Persons Report issued by the United States Department of State.
Malaysia also acknowledged the cooperation the United States has extended in enhancing Malaysia’s maritime security and welcomes the delivery of the United States Coast Guard Cutter STEADFAST vessel under the Excess Defense Articles (EDA) program. The vessel is expected to be transferredin the first quarterof 2025 to the Malaysia Maritime Enforcement Agency (MMEA). Drawing on defense cooperation, Malaysia and the United States are connected by historical ties and both sides welcomed the continuous effort to strengthen defense ties under existing agreements, as well as by developing new areas of cooperation.
The United States expressed its support for Malaysia’s ASEAN Chairmanship in 2025 as it seeks to promote peace, stability, and prosperity throughout the region. The United States reiteratedits supportfor ASEAN centrality andthe ASEAN Outlook on the Indo-Pacific (AOIP) and welcomed ASEAN’s efforts to address the situation in Myanmar.
Both sides noted the active and ongoing cooperation on current regional and global challenges within the framework of regional and international organizations. Both sides stressed the urgent need for continued and active negotiations at regional and international fora, particularly through multilateral fora such as the United Nations.
Both sides called for a diplomatic solution to immediately de-escalate tensionsand secure an immediate ceasefire in Gaza. Priority must alsobe given to the release of hostages and those arbitrarily detained, along with ensuring unhindered humanitarian access to Gaza. Both sides further underscored the need for a sustainable peace that prevents the further loss of innocent lives and avoids deeper instability in the region.
Recognizing the importance of strengthening people-to-people ties, Malaysia and the United States are committed to expanding educational and cultural exchanges, including through programs such as the Fulbright Program under the Malaysian-American Commission on Educational Exchange (MACEE) and the Young Southeast Asian Leaders Initiative (YSEALI). These programs aim to empower future leaders while fostering mutual understanding and goodwill between Malaysians and Americans. Opportunities to enhance academic collaborations, exchanges, and tourism to further enrich the bilateral relationship were also deliberated.
The 6th Senior Officials’ Dialogue reflected the shared commitment by Malaysia and the United States to fostering prosperity, ensuring regional stability and strengthening the connections between our nations. This positive momentum of cooperation serves as a solid foundation for the elevation of the Malaysia-United States Comprehensive Partnership to a higher level. KLN.GOV.MY
RSPO Reiterates FPIC and Components to Address Deforestation Remain Key Criteria in 2024 RSPO Standards
KUALA LUMPUR, Malaysia, Oct. 25, 2024 /PRNewswire/ -- The RSPO has recently observed factually incorrect statements concerning the draft 2024 RSPO Standards in relation to Free, Prior and Informed Consent (FPIC) and No Deforestation, published by Infosawit and Greenpeace.
RSPO is immensely proud of the revised 2024 RSPO Principles and Criteria and the 2024 Independent Smallholder Standard. These standards have been developed by the organisation's members in a long, transparent and inclusive process, reflecting our shared commitment to sustainability, community rights, and environmental protection. These standards were unanimously endorsed by the multistakeholder RSPO Board of Governors, and proposed for adoption by RSPO Members at the General Assembly in Bangkok, Thailand, on 13 November 2024. They represent a significant step forward in ensuring the sustainable growth of the palm oil industry through implementable and auditable standards.
RSPO remains committed to strengthening the implementation of FPIC
Among the key highlights of the new Standards are strengthened commitments to human rights. RSPO reiterates that there has been no reduction in the requirements for Free, Prior and Informed Consent (FPIC) in the updated Standards. Our global partnership remains fully committed to protecting the rights of Indigenous Peoples and local communities through robust and clear FPIC processes, ensuring that affected groups are fully informed and have given their consent before any development takes place on their lands.
To this end, RSPO will continue to work with its members, including growers and social NGOs, to strengthen how FPIC requirements are applied on the ground, particularly in contentious areas where legacy issues prevail.
New RSPO Standards adopt a more refined approach to deforestation
The RSPO Standards have prohibited the conversion of primary forests since 2005 and prohibited any deforestation (based on High Conservation Value and High Carbon Stock assessments of forests and high carbon environments) since 15 November 2018.
Contrary to the inaccurate reporting by Greenpeace, addressing deforestation remains a key criterion in the RSPO Standards. The 2024 revision builds on the solid foundation set by the 2018 Principles and Criteria (P&C), refining and enhancing key components to address implementation challenges. Central to this revision is the implementation of the Integrated High Conservation Value-High Carbon Stock (HCV-HCS) approach. The revised HCS definition emphasises proxies, such as above-ground and below-ground carbon storage, to measure how carbon is sequestered within forest ecosystems and explicitly references the Integrated HCV-HCSA Assessment Manual, which incorporates fundamental components from the HCSA Toolkit.
RSPO Certification remains closely aligned with the EU Deforestation Regulation (EUDR). Despite the potential delay in the EUDR implementation, RSPO will continue to prepare to facilitate compliance for our members. The RSPO will soon begin transitioning to a new digital traceability system, prisma, which will allow members to incorporate EUDR-compliance geolocation data into their traceability records, thus facilitating adherence to both RSPO Certification and EUDR Requirements.
It is worth noting that as a global standard, RSPO endeavours to provide coherence against a range of regulatory requirements beyond the EUDR, including no-deforestation regulations in other jurisdictions and regulatory requirements on human rights, labour, and other sustainability issues such as gender policies, pesticides and water management.
The RSPO remains committed to promoting sustainable palm oil production that balances social, environmental and economic benefits in an equitable way. We look forward to continued dialogue with all stakeholders to ensure that the 2024 RSPO Standards are implemented with the highest level of integrity and transparency. PR Newswire
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RSPO Weakens Standard on No Deforestation, Misses Opportunity to Become Compliant With Incoming EU Deforestation Regulation
Jakarta, 24 October 2024 – The Roundtable on Sustainable Palm Oil (RSPO) has revised its key rule set for member companies, known as its ‘Principles and Criteria’. Grant Rosoman, Senior Advisor at Greenpeace International said of the new changes: “In its revised Principles and Criteria the RSPO has scored an ‘own goal’ by weakening its commitment to ensuring No Deforestation, its very raison d’être. It has dropped the hard-won definition of High Carbon Stock forest – the global No Deforestation standard created through a long collaboration between companies, small-scale growers, scientists and environmentalists, embodied in the HCS Approach Toolkit. The definition of HCS that RSPO members must apply before development is now perversely based on a comparison with the amount of carbon that may be accumulated by oil palms taking the place of forest destroyed for a plantation.”
“As well, shockingly, the standard allows deforestation after November 2018, as long as remedy and compensation procedures are applied, meaning the RSPO standard will remain non-compliant with the incoming EU Deforestation Regulation. Surely the RSPO should aim to ensure the relevance of its standard, future-proofing it with an absolute No Deforestation cut-off date to ensure basic compliance with one of its key markets,” added Rosoman.
“This fits with the lobbying by many companies against the EU Deforestation Regulation so they can continue destroying forest to expand plantations, and their general weakening of commitments to No Deforestation, such as pushing out having ‘clean’ supply chains to by 2025 or beyond.” said Rosoman.
Kiki Taufik, Global Project Leader of Indonesia Forest Campaign, Greenpeace South East Asia said: “I am disappointed that under its the new standard the RSPO will continue to turn a blind eye to deforestation and human rights abuses that are committed at a corporate group level by RSPO certified member companies. Many of Indonesia’s oligarchs use ‘shadow’ companies, owned by untouchable entities in offshore secrecy jurisdictions to do the dirty work of deforestation and land clearance that they themselves have pledged not to do. To have any credibility the RSPO needs to enforce the principle of group-level accountability. This means proactively ensuring that no deforestation is being carried out by companies under common control with its certified members, rather than relying on their self-declarations.”
“One positive aspect of the new standard is that RSPO’s commitment to no development of peatland areas for oil palm plantations remains, although the requirements for phasing-out plantations on peat need to be strengthened and sped up. This is critical for Indonesia to help protect biodiversity, and reduce peatland fires, regional haze and greenhouse gas emissions,” Kiki said.
Notes to editor
New RSPO standard documents available here
High Carbon Stock Approach (HCSA) Toolkit available here
Greenpeace International’s 2021 report on certification schemes including the RSPO, entitled ‘Destruction: Certified’ can be read here.
Media contact: Igor O’Neill, Greenpeace Indonesia Forest Campaign +61 414-288-424 [email protected]
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Indonesian Govt preparing incentives for biodiesel commercialization
Jakarta (ANTARA) - The government and relevant parties are currently developing financial and incentive policies to support the commercialization of biodiesel, particularly through partnerships between smallholder farmers, independent farmers, and biodiesel producers.
Director of bioenergy at the Ministry of Energy and Mineral Resources, Edi Wibowo, here on Thursday emphasized the importance of sustainable biodiesel development, especially the future implementation of B100.
He said that biodiesel development will not only involve his ministry but also the Ministry of Agriculture, the Coordinating Ministry for Economic Affairs, and other stakeholders, including palm oil companies and farmers.
"Biodiesel production heavily relies on palm oil as the primary raw material. Therefore, the role of palm oil farmers, both smallholder and independent, is crucial," Wibowo explained.
Wibowo further said that the partnership between farmers and companies must be strengthened to ensure that the biodiesel program not only succeeds in the industrial sector but also directly benefits palm oil farmers.
According to the institutional coordinator at the Directorate of Oil Palm and Various Palms of the Ministry of Agriculture, Mula Putra, the government will increase the capacity of human resources through apprenticeships and training programs for cultivators.
Data collection through the Cultivation Registration Certificate will be strengthened to improve the trade of oil palm fresh fruit bunches (FFB) and increase farmers' income through the integration of intercropping, animal husbandry, and palm oil waste utilization.
Putra expressed optimism that these measures would boost the productivity of oil palm plantation smallholders to 30–40 tons of FFB per hectare with a yield of 23–25 percent.
"The increase is expected to support the palm oil-based biodiesel program and improve the welfare of Indonesian palm oil farmers," he said. Antara News
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Adani Wilmar to raise cooking oil prices by 20% following import duty hike
This follows the government's recent decision to raise import duties on refined oils.
New Delhi: Edible oil and flour maker Adani Wilmar could raise prices of cooking oil by at least 20% in the current quarter following the government's move to impose higher import duties on refined oils.
On 14 September India raised the basic import tax on crude and refined edible oils.
Basic customs duty on crude soybean oil, crude palm oil, and crude sunflower oil was hiked to 20% from 0%, resulting in an effective duty rate of 27.5% on crude oils. Basic customs duty refers to a tax on imported goods to protect domestic industries by making imports more expensive.
Similarly, the basic custom duty on refined palm oil, refined sunflower oil, and refined soybean oil has been raised to 32.5% from 12.5%, with an effective duty rate of 35.75% on refined oils. More at Livemint
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JOINT STATEMENT ON THE 6TH MALAYSIA-UNITED STATES SENIOR OFFICIALS' DIALOGUE
The text of the following statement was released by the Governments of Malaysia and the United States of America on the occasion of the 6th Senior Officials’ Dialogue in Putrajaya, Malaysia on October 21,2024. The Dialogue also marked the 10th anniversary of the Malaysia-United States Comprehensive Partnership.
To commemorate the 10th anniversary of the Malaysia-United States Comprehensive Partnership, Malaysia and the United States held the 6th Senior Officials’ Dialogue on October 21, 2024 in Putrajaya, Malaysia to reaffirm the deep and growing partnership between both countries. Ministry of Foreign Affairs Secretary General Dato’ Sri Amran Mohamed Zin led the Malaysian delegation, and Assistant Secretary of State for East Asian and Pacific Affairs Daniel J. Kritenbrink led the United States delegation.
The dialogue underscored the importance of sustained cooperation across a broad range of issues, including trade and investment, peace and security, and people-to-people ties, as well as regional and global issues.
Both sides noted with great satisfaction the deep-rooted ties between the two countries, especially in economic cooperation, and acknowledged the importance of advancing the cooperation while emphasizingsustainability. Malaysia and the United States acknowledged that the development of trade and economic relations is a key aspect of strengthening cooperation between the two countries and welcomed further discussion on t rade and agriculture topics. The United States welcomed Malaysia’s briefing on its efforts to increase sustainability through recognition of sustainable certification systems, including for timber and palm oil products. Both sides also pledged to explore possibilities for cooperation to improve sustainability. Both parties are continuing the cooperative activities reflected in the Memorandum of Cooperation on Semiconductor Supply Chain Resilience (MOC) signed in 2022. Malaysia and the United States also acknowledged interest in exploring further cooperation in science and technology by recognizing potential synergies on space, biotechnology, agriculture, Small and Medium Enterprise (SME) development, capacity- building, healthcarecooperation, and vaccine researchcooperation.
Additionally, the two sides recognized the importanceof collaboration in high-growthsectors such as cooperation in semiconductors, digital economy, renewable energy, and critical minerals. Joint efforts will also focus on improving supply chain resilience, accelerating the clean energy transition, and fostering private sector partnerships that could stimulate innovation and job creation. Malaysia and the United States appreciated the ongoing efforts under the Indo Pacific Economic Framework (IPEF) and committed to pursue deeper engagement to support sustainable and inclusive growth. Both sides have committed to continue collaboration in capacity building for SME development.
Both sides further reaffirmed theircommitment to advancing peace andsecurity cooperation, focusing on maintaining peaceand stability in the Indo-Pacific region. Key areas of focus will include combating transnational crime and trafficking in persons, countering terrorism, upholding the internationallaw of the sea as reflected in the 1982 Law of the Sea Convention (UNCLOS), and addressing emerging security challenges. The United States and Malaysia reaffirmed the importance of peace and stability in the South China Sea as essential elements of regional security. Additionally, Malaysia expressed appreciation for the United States’ recognition of Malaysia’s efforts to combat trafficking in persons, which resulted in an upgrade to Tier 2 in the 2024 Trafficking in Persons Report issued by the United States Department of State.
Malaysia also acknowledged the cooperation the United States has extended in enhancing Malaysia’s maritime security and welcomes the delivery of the United States Coast Guard Cutter STEADFAST vessel under the Excess Defense Articles (EDA) program. The vessel is expected to be transferredin the first quarterof 2025 to the Malaysia Maritime Enforcement Agency (MMEA). Drawing on defense cooperation, Malaysia and the United States are connected by historical ties and both sides welcomed the continuous effort to strengthen defense ties under existing agreements, as well as by developing new areas of cooperation.
The United States expressed its support for Malaysia’s ASEAN Chairmanship in 2025 as it seeks to promote peace, stability, and prosperity throughout the region. The United States reiteratedits supportfor ASEAN centrality andthe ASEAN Outlook on the Indo-Pacific (AOIP) and welcomed ASEAN’s efforts to address the situation in Myanmar.
Both sides noted the active and ongoing cooperation on current regional and global challenges within the framework of regional and international organizations. Both sides stressed the urgent need for continued and active negotiations at regional and international fora, particularly through multilateral fora such as the United Nations.
Both sides called for a diplomatic solution to immediately de-escalate tensionsand secure an immediate ceasefire in Gaza. Priority must alsobe given to the release of hostages and those arbitrarily detained, along with ensuring unhindered humanitarian access to Gaza. Both sides further underscored the need for a sustainable peace that prevents the further loss of innocent lives and avoids deeper instability in the region.
Recognizing the importance of strengthening people-to-people ties, Malaysia and the United States are committed to expanding educational and cultural exchanges, including through programs such as the Fulbright Program under the Malaysian-American Commission on Educational Exchange (MACEE) and the Young Southeast Asian Leaders Initiative (YSEALI). These programs aim to empower future leaders while fostering mutual understanding and goodwill between Malaysians and Americans. Opportunities to enhance academic collaborations, exchanges, and tourism to further enrich the bilateral relationship were also deliberated.
The 6th Senior Officials’ Dialogue reflected the shared commitment by Malaysia and the United States to fostering prosperity, ensuring regional stability and strengthening the connections between our nations. This positive momentum of cooperation serves as a solid foundation for the elevation of the Malaysia-United States Comprehensive Partnership to a higher level. KLN.GOV.MY
October 23, 2024
Indonesia has adequate CPO stocks for B50 biodiesel production
Jakarta (ANTARA) - Indonesia has sufficient stocks of crude palm oil (CPO) to produce B50 biodiesel, according to Agriculture Minister Andi Amran Sulaiman.
Of around 46 million tons of the country's CPO production, only 5.3 million tons are needed to produce B50.
"Our CPO production is 46 million tons. Currently, we use 20 million tons of CPO domestically and export 26 million tons. If we take 5.3 million tons (for B50), it will not be a problem," he stated here on Tuesday.
He further emphasized that the government prioritized domestic needs over exports. If more CPO is required for B50 production, then the stock would be sourced from the export quota.
"We reduce (the CPO export quota) according to domestic needs. We prioritize domestic needs," Amran explained.
The B50 biodiesel program will be implemented no later than 2026. Meanwhile, the B40 biodiesel program will be implemented next January.
According to Coordinating Minister for Economic Affairs Airlangga Hartarto, Indonesia is ready for the mandatory implementation of B40 biodiesel in 2025.
B40 is a blend of 40 percent palm oil and 60 percent diesel.
He also noted that no obstacles were encountered during the B40 production process.
The program to increase B35 biodiesel to B40 is part of the government's efforts to conduct energy transition by reducing dependence on fossil fuels to renewable energy sources.
Later, the production of B40 will extensively absorb CPO as a basic material for renewable fuel. Antara News
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Industry warns B50 push could slash palm oil exports, trigger global shortage
Agriculture Minister Andi Amran Sulaiman said on Tuesday that the government planned to cut CPO exports by 5.3 million tonnes annually, starting next year, as part of the biodiesel program. Ruth Dea Juwita (The Jakarta Post)
https://www.thejakartapost.com/business/2024/10/23/industry-warns-b50-push-could-slash-palm-oil-exports-trigger-global-shortage.html.
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Indonesia vs. European Union: Palm Oil and Biofuels Dispute at WTO Panels
The ongoing trade dispute between Indonesia and the EU over palm oil and biofuels is one of the most significant cases in international trade law.
The ongoing trade dispute between Indonesia and the European Union (EU) over palm oil and biofuels is one of the most significant cases in international trade law, with far-reaching implications for the global biofuels market and environmental sustainability. The conflict revolves around the EU’s Renewable Energy Directive II (RED II) and the Delegated Regulation that categorizes palm oil as a high-risk commodity for deforestation and unsustainable land use. This classification, according to Indonesia, constitutes a discriminatory trade barrier that undermines its economic interests and the livelihoods of millions of palm oil farmers. At the core of this dispute are questions of sustainability, environmental protection, and the right balance between trade liberalization and the global environmental agenda. The case, brought before the World Trade Organization (WTO), has highlighted the tension between economic development in producer countries like Indonesia and the environmental policies adopted by wealthier nations like those in the EU.
This article will explore the intricacies of the Indonesia-EU trade dispute at the WTO over palm oil and biofuels, focusing particularly on sustainability concerns. The arguments presented by both sides will be reviewed, along with the WTO’s role in mediating such disputes, and the broader implications of the case for global environmental governance and trade relations. Modern Diplomacy
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Malaysia plans to increase investment in waste-to-energy production
Malaysia’s Ministry of Plantation and Commodities on Tuesday proposed investing in new technologies and infrastructure to more efficiently convert waste from palm oil production into biomass energy.
On the sidelines of the Oils and Fat Conference 2024 which was organised by the Malaysian Oil Scientists and Technologists Association, Minister of Plantation and Commodities Johari Abdul Ghani said that waste industry materials like empty fruit bunches (EFB), mesocarp fibre, and palm kernel shells could be burned and turned into energy.
The minister emphasised that palm oil mills generate effluent that could be converted into energy through methane capture. Integrating these organic materials into the agricultural cycle creates a closed-loop system, he said.
Malaysia, the world’s second largest producer of palm oil, just after Indonesia, has pledged to achieve net-zero by 2050. It has committed to retire coal-fired power plants by 2044 as part of its energy transition and climate change policy.
Malaysia is home to 446 palm oil mills, which could hypothetically generate up to 2,230 megawatt of electricity from renewable energy if each mill could produce up to five megawatt. A 2,000-megawatt power plant today would cost 8-9 billion MYR (1.85-2.08 billion USD). The InvestorVN
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No new forest clearing for palm oil
MALAYSIA will not clear forests to establish new palm oil plantations as the current plantation area of 5.7 million ha is already sufficient.Instead, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the country is focused on increasing sustainable palm oil yields and maximising the value from existing land use rather than expanding it.
“Our palm oil is a highly efficient crop, producing 3.3 metric tonnes (MT) per ha compared to soybean oil, which yields 0.5MT per ha, rapeseed oil (0.8MT per ha), and sunflower oil (0.8MT per ha),” he said during his speech at the 2024 International Palm Oil Congress and Exhibition (OFIC 2024) yesterday.
Johari also highlighted that the Malaysian Sustainable Palm Oil Certification Scheme (MSPO) is capable of meeting global criteria, ensuring product traceability, no deforestation, land ownership legitimacy and responsible labour practices.
He noted that although Malaysia’s palm oil plantations account for only 0.1% of global agricultural land, the country contributes up to 20% of the world’s export of edible oils and fats.
As of August, 4.6 million ha, equivalent to 81.24% of palm oil plantations in Malaysia, have received MSPO certification.
Johari emphasised that palm oil industry players in the country can adopt a circular economy model to enhance their operational efficiency in managing palm oil waste.
“By using technology, palm oil waste can be converted into energy, helping the country reduce its reliance on fossil fuels for power generation,” he said.
This, he added, would support Malaysia’s goal of achieving net-zero carbon emissions by 2030.
“For instance, if a palm oil mill can generate five megawatts (MW) of power, with 400 mills, we could potentially generate 2,000MW of renewable energy from palm oil waste.”
“Currently, only 20% of the 446 palm oil processing mills have utilised this waste for energy generation,” Johari said. The Malaysian Reserve
Indonesia has adequate CPO stocks for B50 biodiesel production
Jakarta (ANTARA) - Indonesia has sufficient stocks of crude palm oil (CPO) to produce B50 biodiesel, according to Agriculture Minister Andi Amran Sulaiman.
Of around 46 million tons of the country's CPO production, only 5.3 million tons are needed to produce B50.
"Our CPO production is 46 million tons. Currently, we use 20 million tons of CPO domestically and export 26 million tons. If we take 5.3 million tons (for B50), it will not be a problem," he stated here on Tuesday.
He further emphasized that the government prioritized domestic needs over exports. If more CPO is required for B50 production, then the stock would be sourced from the export quota.
"We reduce (the CPO export quota) according to domestic needs. We prioritize domestic needs," Amran explained.
The B50 biodiesel program will be implemented no later than 2026. Meanwhile, the B40 biodiesel program will be implemented next January.
According to Coordinating Minister for Economic Affairs Airlangga Hartarto, Indonesia is ready for the mandatory implementation of B40 biodiesel in 2025.
B40 is a blend of 40 percent palm oil and 60 percent diesel.
He also noted that no obstacles were encountered during the B40 production process.
The program to increase B35 biodiesel to B40 is part of the government's efforts to conduct energy transition by reducing dependence on fossil fuels to renewable energy sources.
Later, the production of B40 will extensively absorb CPO as a basic material for renewable fuel. Antara News
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Industry warns B50 push could slash palm oil exports, trigger global shortage
Agriculture Minister Andi Amran Sulaiman said on Tuesday that the government planned to cut CPO exports by 5.3 million tonnes annually, starting next year, as part of the biodiesel program. Ruth Dea Juwita (The Jakarta Post)
https://www.thejakartapost.com/business/2024/10/23/industry-warns-b50-push-could-slash-palm-oil-exports-trigger-global-shortage.html.
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Indonesia vs. European Union: Palm Oil and Biofuels Dispute at WTO Panels
The ongoing trade dispute between Indonesia and the EU over palm oil and biofuels is one of the most significant cases in international trade law.
The ongoing trade dispute between Indonesia and the European Union (EU) over palm oil and biofuels is one of the most significant cases in international trade law, with far-reaching implications for the global biofuels market and environmental sustainability. The conflict revolves around the EU’s Renewable Energy Directive II (RED II) and the Delegated Regulation that categorizes palm oil as a high-risk commodity for deforestation and unsustainable land use. This classification, according to Indonesia, constitutes a discriminatory trade barrier that undermines its economic interests and the livelihoods of millions of palm oil farmers. At the core of this dispute are questions of sustainability, environmental protection, and the right balance between trade liberalization and the global environmental agenda. The case, brought before the World Trade Organization (WTO), has highlighted the tension between economic development in producer countries like Indonesia and the environmental policies adopted by wealthier nations like those in the EU.
This article will explore the intricacies of the Indonesia-EU trade dispute at the WTO over palm oil and biofuels, focusing particularly on sustainability concerns. The arguments presented by both sides will be reviewed, along with the WTO’s role in mediating such disputes, and the broader implications of the case for global environmental governance and trade relations. Modern Diplomacy
--------
Malaysia plans to increase investment in waste-to-energy production
Malaysia’s Ministry of Plantation and Commodities on Tuesday proposed investing in new technologies and infrastructure to more efficiently convert waste from palm oil production into biomass energy.
On the sidelines of the Oils and Fat Conference 2024 which was organised by the Malaysian Oil Scientists and Technologists Association, Minister of Plantation and Commodities Johari Abdul Ghani said that waste industry materials like empty fruit bunches (EFB), mesocarp fibre, and palm kernel shells could be burned and turned into energy.
The minister emphasised that palm oil mills generate effluent that could be converted into energy through methane capture. Integrating these organic materials into the agricultural cycle creates a closed-loop system, he said.
Malaysia, the world’s second largest producer of palm oil, just after Indonesia, has pledged to achieve net-zero by 2050. It has committed to retire coal-fired power plants by 2044 as part of its energy transition and climate change policy.
Malaysia is home to 446 palm oil mills, which could hypothetically generate up to 2,230 megawatt of electricity from renewable energy if each mill could produce up to five megawatt. A 2,000-megawatt power plant today would cost 8-9 billion MYR (1.85-2.08 billion USD). The InvestorVN
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No new forest clearing for palm oil
MALAYSIA will not clear forests to establish new palm oil plantations as the current plantation area of 5.7 million ha is already sufficient.Instead, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the country is focused on increasing sustainable palm oil yields and maximising the value from existing land use rather than expanding it.
“Our palm oil is a highly efficient crop, producing 3.3 metric tonnes (MT) per ha compared to soybean oil, which yields 0.5MT per ha, rapeseed oil (0.8MT per ha), and sunflower oil (0.8MT per ha),” he said during his speech at the 2024 International Palm Oil Congress and Exhibition (OFIC 2024) yesterday.
Johari also highlighted that the Malaysian Sustainable Palm Oil Certification Scheme (MSPO) is capable of meeting global criteria, ensuring product traceability, no deforestation, land ownership legitimacy and responsible labour practices.
He noted that although Malaysia’s palm oil plantations account for only 0.1% of global agricultural land, the country contributes up to 20% of the world’s export of edible oils and fats.
As of August, 4.6 million ha, equivalent to 81.24% of palm oil plantations in Malaysia, have received MSPO certification.
Johari emphasised that palm oil industry players in the country can adopt a circular economy model to enhance their operational efficiency in managing palm oil waste.
“By using technology, palm oil waste can be converted into energy, helping the country reduce its reliance on fossil fuels for power generation,” he said.
This, he added, would support Malaysia’s goal of achieving net-zero carbon emissions by 2030.
“For instance, if a palm oil mill can generate five megawatts (MW) of power, with 400 mills, we could potentially generate 2,000MW of renewable energy from palm oil waste.”
“Currently, only 20% of the 446 palm oil processing mills have utilised this waste for energy generation,” Johari said. The Malaysian Reserve
October 22, 2024
Malaysia’s palm oil industry to focus on replanting and sustainability
The palm oil sector in Malaysia is set to focus on challenges including ageing oil palm trees and stagnant yields while increasing its commitment to global sustainability standards, according to industry leaders quoted in a report by The Malaysian Reserve.
The government had prioritised replanting efforts as a key strategy to boost productivity without expanding land use, the 8 October report said.
Plantation and Commodities Minister Johari Abdul Ghani was quoted as saying there were approximately 450,000ha of oil palm trees aged over 25 years in the country.
In 2023, Malaysia made significant progress by replanting 132,000ha, representing 2.3% of the total planted area, an increase compared to the previous year’s 97,130ha (1.7%), The Malaysian Reserve wrote.
In its bid to boost productivity, particularly among smallholders, the government is focusing on initiatives that include promoting the use of quality planting materials, adopting Good Agricultural Practices (GAP) and providing financial assistance for replanting, according to the report.
“Smallholders, who manage 1.5M ha of palm oil plantations, have faced lower replanting rates, with organised smallholders replanting at just 0.9% annually and independent smallholders at 0.2%,” Johari was quoted as saying in his opening remarks at the Malaysian Palm Oil Forum 2024 (MPOC 2024) on 8 October.
“Increasing the annual replanting rate to 4% could significantly raise yields, potentially adding 1.5M tonnes tonnes of crude palm oil (CPO) production annually without the need for more land.”
On the sustainability front, Johari said Malaysia was preparing to meet global environmental goals, particularly regarding the European Union Deforestation Regulation (EUDR).
The European Commission has proposed postponing the enforcement of the EUDR from its original date of 30 December 2024 to 30 December 2025 to allow producer countries additional time to comply.
Johari said Malaysia, which had committed to several international sustainability targets, including achieving net-zero greenhouse gas emissions by 2050 and reducing carbon intensity by 45% by 2030, saw this delay as an opportunity to align its policies further with global standards. OFI Magazine
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Malaysia looks for new markets for palm oil as EU threatens with stricter ecological regulations
The edible oil sector faces numerous challenges, from ever-changing market dynamics and evolving trade policies to increasing scrutiny on sustainability practices and environmental impact
Facing criticism from Western markets over dwindling populations of orangutans, Malayan tigers and elephants, Malaysia is looking for expanding its palm oil trade with India and other Asian and African countries. The Malaysian Plantations Ministry and the Malaysian Palm Oil Council (MPOC) says the income of small farmers improved due to palm oil cultivation and the government is committed to protect the biodiversity in the country.
Malaysia’s Minister for Plantation and Commodities Johari Bin Abdul Ghani said that the edible oil sector faces numerous challenges, from ever-changing market dynamics and evolving trade policies to increasing scrutiny on sustainability practices and environmental impact. “These are not just domestic challenges. They are global in nature and affect every player in the oils and fats industry. However, the Malaysian palm oil sector is committed to converting these challenges into opportunities,” he said and added that the country is embracing sustainable practices, investing in innovative technologies and strengthening partnerships to meet global standards. More The Hindu
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Extreme poverty, palm oil output, GLC reforms highlight Malaysia's priorities
KUALA LUMPUR, Oct 22 — The current status of the government’s efforts to eradicate extreme poverty and the mechanisms used to determine the categories are among the highlights of today’s Dewan Rakyat session.
According to the Order Paper published on the Parliament website, Datuk Siti Zailah Mohd Yusoff (PN-Rantau Panjang) will raise the matter with the Prime Minister during the Minister’s Question Time session.
Datuk Mohd Shahar Abdullah (BN-Paya Besar) will ask the Prime Minister to outline the action plan under the reform agenda specifically for Government-Linked Companies (GLCs), Government-Linked Investment Companies (GLICs), and agencies to ensure a balance between corporate objectives and national socioeconomic responsibilities without compromising the viability, competitiveness, and resilience of Malaysia’s economy.
During the question-and-answer session, Lee Chuan How (PH-Ipoh Timor) will ask the Education Minister to state the latest status of the book voucher distribution and the total allocation for the initiative.
Meanwhile, Rodiyah Sapiee (GPS-Batang Sadong) will pose a question to the Plantation and Commodities Minister to outline strategic measures to boost palm oil production, given the current decline in output, which raises concerns that the palm oil industry may face challenges similar to those of rubber, unable to meet the country’s needs. Malay Mail
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Malaysia's Plantation Ministry proposes investing in new tech, infra for waste-to-energy production
KUALA LUMPUR (Oct 22): The Ministry of Plantation and Commodities on Tuesday proposed investing in new technologies and infrastructure to more efficiently convert wastes from palm oil production into biomass energy.
Waste industry materials like empty fruit bunches (EFB), mesocarp fibre, and palm kernel shells could be burned and turned into energy, said its minister Datuk Seri Johari Abdul Ghani. Further, palm oil mills generate effluent that could be converted into energy through methane capture, he noted.
“Integrating these organic materials into the agricultural cycle creates a closed-loop system," Johari told reporters after the Oils and Fat Conference 2024, an event organised by the Malaysian Oil Scientists and Technologists Association.
Malaysia, the world’s largest producer of palm oil after Indonesia, has pledged to achieve net-zero by 2050. The government has committed to retire coal-fired power plants by 2044 as part of its energy transition and climate change policy.
The country is also home to 446 palm oil mills, which could hypothetically generate up to 2,230 megawatt of electricity from renewable energy if each mill could produce up to five megawatt, said Johari. A 2,000-megawatt power plant today would cost RM8 billion to RM9 billion, he said.
Waste-to-energy also addresses typical issues like waste segregation and supply adequacy, which often hinder recycling efforts. This approach, Johari continued, is key to mitigating biodiversity loss and combating climate change while ensuring the long-term sustainability of the palm oil industry.
EFB and oil palm trunks can also be repurposed as mulch to improve soil conditions, Johari said.
There are several challenges, including having transmission lines reach the palm oil mills to feed the electricity generated into the grid before it could be sold, he flagged.
“The industry players must take it upon themselves to pursue opportunities in which we can implement a cost-competitive circular model instead of a linear one,” he added. The EdgeMY
--------
EU's Faux greenery to benefit UK-Indonesia ties
Indonesia has been an under-reported regional success story, both in terms of the bedding down of democratic norms and in terms of its impressive and sustained economic growth. Its accession to the CPTPP is, on its own, a happy and important development in a world where protectionism has been on the rise since 2012.
Airlangga Hartarto, then the Coordinating Minister for Economic Affairs, explained that the membership bid was ‘aimed at driving structural reform in the country and opening markets for Indonesia’s economy’. Given that Indonesia is the fourth most populous state in the world, home to 275 million souls, domestic deregulation will have an effect far beyond the borders of that lush and exquisite archipelago.
The question is how much Britain stands to benefit from Indonesia’s continuing growth. And the answer depends on the extent to which we seize the opportunities now opening up there.
Both countries have recently elected new leaders: Keir Starmer here and Prabowo Subianto there. In both countries, the transfer of power was peaceful and democratic. And, in both countries, the new governments have decided not to revise the successful trade policies that have already been set in motion. The UK Labour Party have celebrated the CPTPP accession negotiated by their predecessors, and President Subianto has declared that the application launched by his predecessors will be kept on track.
All of this is encouraging. Free trade may currently be unfashionable in Washington and Brussels, but it remains the surest way to raise living standards that anyone has yet come up with. Starting from a low baseline, the UK and Indonesia have huge opportunities for mutual investment and freer commerce, increasing choice, lowering prices and generally making everyone better off – especially people on lower incomes. CapX
Malaysia’s palm oil industry to focus on replanting and sustainability
The palm oil sector in Malaysia is set to focus on challenges including ageing oil palm trees and stagnant yields while increasing its commitment to global sustainability standards, according to industry leaders quoted in a report by The Malaysian Reserve.
The government had prioritised replanting efforts as a key strategy to boost productivity without expanding land use, the 8 October report said.
Plantation and Commodities Minister Johari Abdul Ghani was quoted as saying there were approximately 450,000ha of oil palm trees aged over 25 years in the country.
In 2023, Malaysia made significant progress by replanting 132,000ha, representing 2.3% of the total planted area, an increase compared to the previous year’s 97,130ha (1.7%), The Malaysian Reserve wrote.
In its bid to boost productivity, particularly among smallholders, the government is focusing on initiatives that include promoting the use of quality planting materials, adopting Good Agricultural Practices (GAP) and providing financial assistance for replanting, according to the report.
“Smallholders, who manage 1.5M ha of palm oil plantations, have faced lower replanting rates, with organised smallholders replanting at just 0.9% annually and independent smallholders at 0.2%,” Johari was quoted as saying in his opening remarks at the Malaysian Palm Oil Forum 2024 (MPOC 2024) on 8 October.
“Increasing the annual replanting rate to 4% could significantly raise yields, potentially adding 1.5M tonnes tonnes of crude palm oil (CPO) production annually without the need for more land.”
On the sustainability front, Johari said Malaysia was preparing to meet global environmental goals, particularly regarding the European Union Deforestation Regulation (EUDR).
The European Commission has proposed postponing the enforcement of the EUDR from its original date of 30 December 2024 to 30 December 2025 to allow producer countries additional time to comply.
Johari said Malaysia, which had committed to several international sustainability targets, including achieving net-zero greenhouse gas emissions by 2050 and reducing carbon intensity by 45% by 2030, saw this delay as an opportunity to align its policies further with global standards. OFI Magazine
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Malaysia looks for new markets for palm oil as EU threatens with stricter ecological regulations
The edible oil sector faces numerous challenges, from ever-changing market dynamics and evolving trade policies to increasing scrutiny on sustainability practices and environmental impact
Facing criticism from Western markets over dwindling populations of orangutans, Malayan tigers and elephants, Malaysia is looking for expanding its palm oil trade with India and other Asian and African countries. The Malaysian Plantations Ministry and the Malaysian Palm Oil Council (MPOC) says the income of small farmers improved due to palm oil cultivation and the government is committed to protect the biodiversity in the country.
Malaysia’s Minister for Plantation and Commodities Johari Bin Abdul Ghani said that the edible oil sector faces numerous challenges, from ever-changing market dynamics and evolving trade policies to increasing scrutiny on sustainability practices and environmental impact. “These are not just domestic challenges. They are global in nature and affect every player in the oils and fats industry. However, the Malaysian palm oil sector is committed to converting these challenges into opportunities,” he said and added that the country is embracing sustainable practices, investing in innovative technologies and strengthening partnerships to meet global standards. More The Hindu
--------
Extreme poverty, palm oil output, GLC reforms highlight Malaysia's priorities
KUALA LUMPUR, Oct 22 — The current status of the government’s efforts to eradicate extreme poverty and the mechanisms used to determine the categories are among the highlights of today’s Dewan Rakyat session.
According to the Order Paper published on the Parliament website, Datuk Siti Zailah Mohd Yusoff (PN-Rantau Panjang) will raise the matter with the Prime Minister during the Minister’s Question Time session.
Datuk Mohd Shahar Abdullah (BN-Paya Besar) will ask the Prime Minister to outline the action plan under the reform agenda specifically for Government-Linked Companies (GLCs), Government-Linked Investment Companies (GLICs), and agencies to ensure a balance between corporate objectives and national socioeconomic responsibilities without compromising the viability, competitiveness, and resilience of Malaysia’s economy.
During the question-and-answer session, Lee Chuan How (PH-Ipoh Timor) will ask the Education Minister to state the latest status of the book voucher distribution and the total allocation for the initiative.
Meanwhile, Rodiyah Sapiee (GPS-Batang Sadong) will pose a question to the Plantation and Commodities Minister to outline strategic measures to boost palm oil production, given the current decline in output, which raises concerns that the palm oil industry may face challenges similar to those of rubber, unable to meet the country’s needs. Malay Mail
--------
Malaysia's Plantation Ministry proposes investing in new tech, infra for waste-to-energy production
KUALA LUMPUR (Oct 22): The Ministry of Plantation and Commodities on Tuesday proposed investing in new technologies and infrastructure to more efficiently convert wastes from palm oil production into biomass energy.
Waste industry materials like empty fruit bunches (EFB), mesocarp fibre, and palm kernel shells could be burned and turned into energy, said its minister Datuk Seri Johari Abdul Ghani. Further, palm oil mills generate effluent that could be converted into energy through methane capture, he noted.
“Integrating these organic materials into the agricultural cycle creates a closed-loop system," Johari told reporters after the Oils and Fat Conference 2024, an event organised by the Malaysian Oil Scientists and Technologists Association.
Malaysia, the world’s largest producer of palm oil after Indonesia, has pledged to achieve net-zero by 2050. The government has committed to retire coal-fired power plants by 2044 as part of its energy transition and climate change policy.
The country is also home to 446 palm oil mills, which could hypothetically generate up to 2,230 megawatt of electricity from renewable energy if each mill could produce up to five megawatt, said Johari. A 2,000-megawatt power plant today would cost RM8 billion to RM9 billion, he said.
Waste-to-energy also addresses typical issues like waste segregation and supply adequacy, which often hinder recycling efforts. This approach, Johari continued, is key to mitigating biodiversity loss and combating climate change while ensuring the long-term sustainability of the palm oil industry.
EFB and oil palm trunks can also be repurposed as mulch to improve soil conditions, Johari said.
There are several challenges, including having transmission lines reach the palm oil mills to feed the electricity generated into the grid before it could be sold, he flagged.
“The industry players must take it upon themselves to pursue opportunities in which we can implement a cost-competitive circular model instead of a linear one,” he added. The EdgeMY
--------
EU's Faux greenery to benefit UK-Indonesia ties
- The UK would do well to ignore the EU's protectionist tariffs on Indonesia
- Forging closer trade links with Indonesia would make strategic and economic sense
- Trade with Indonesia would fortify the country's pro-Western elements
Indonesia has been an under-reported regional success story, both in terms of the bedding down of democratic norms and in terms of its impressive and sustained economic growth. Its accession to the CPTPP is, on its own, a happy and important development in a world where protectionism has been on the rise since 2012.
Airlangga Hartarto, then the Coordinating Minister for Economic Affairs, explained that the membership bid was ‘aimed at driving structural reform in the country and opening markets for Indonesia’s economy’. Given that Indonesia is the fourth most populous state in the world, home to 275 million souls, domestic deregulation will have an effect far beyond the borders of that lush and exquisite archipelago.
The question is how much Britain stands to benefit from Indonesia’s continuing growth. And the answer depends on the extent to which we seize the opportunities now opening up there.
Both countries have recently elected new leaders: Keir Starmer here and Prabowo Subianto there. In both countries, the transfer of power was peaceful and democratic. And, in both countries, the new governments have decided not to revise the successful trade policies that have already been set in motion. The UK Labour Party have celebrated the CPTPP accession negotiated by their predecessors, and President Subianto has declared that the application launched by his predecessors will be kept on track.
All of this is encouraging. Free trade may currently be unfashionable in Washington and Brussels, but it remains the surest way to raise living standards that anyone has yet come up with. Starting from a low baseline, the UK and Indonesia have huge opportunities for mutual investment and freer commerce, increasing choice, lowering prices and generally making everyone better off – especially people on lower incomes. CapX
October 21, 2024
New Indonesia Leader President Prabowo Strikes Harsher Tone as He Takes Power
(Bloomberg) -- Indonesia’s new leader Prabowo Subianto endeared himself to voters as a kindly grandfather vowing to give free meals to schoolchildren. Now to get things rolling in Southeast Asia’s largest economy, the president is signaling a strongman approach.
The former general used his maiden speech on Sunday to rail against corruption and poverty, a stark departure from his soft-spoken predecessor Joko Widodo, popularly known as Jokowi. And as Prabowo led lawmakers in parliament to chant the Indonesian word for independence, he said: “Those who do not shout merdeka are not patriotic.”
This shows his style of leadership as an ex-special forces commando who is unafraid to call out allies and is likely to brook no dissent or criticism. Prabowo has set an ambitious 8% growth target for Indonesia in the next two to three years and that means turning around the manufacturing sector, fighting corruption and raising incomes in the world’s fourth most populous country.
“He is clearly learning from the early years of Jokowi’s first term when he did not get much done as he was a ‘minority’ president,” said Douglas Ramage, managing director at BowerGroupAsia Indonesia, a strategic advisory firm. “Prabowo’s focus is much more on political inclusivity at this stage.”
So far, markets are upbeat with the sense of continuity as Prabowo stacked his cabinet with several ministers from the previous administration. The Indonesian rupiah edged 0.2% higher to 15,435 per dollar in early trading on Monday, extending gains to a fourth day. The benchmark stock index rose a seventh day, the longest stretch in more than two years. More BNN Bloomberg
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New Indonesian President Prabowo aims to boost Indonesia's energy security through oil and gas reforms, biofuels
JAKARTA, Oct 21 (Reuters) - Indonesia's new government aims to revive oil and gas production, with plans to cut regulations, reactivate idle wells and enhance output at producing assets in hopes of reversing a decades-long decline in output, officials have said.
President Prabowo Subianto, who took the oath of office on Sunday, also plans to build on the previous administration's efforts to tap massive gas discoveries in South Andaman and lift biofuels use.
Formerly a member of the Organization of the Petroleum Exporting Countries (OPEC), Indonesia's oil production has declined to under 600,000 barrels per day (bpd) this year from a peak of around 1.6 million bpd in the 1990s due to ageing blocks and sluggish investment.
At the same time, oil consumption in the world's fourth-most populous country has more than doubled to 1.5 million bpd, leading to imports of oil and fuel products that have averaged $28 billion annually in the past decade.
"We must have energy self-sufficiency and we are capable to be self-sufficient," Prabowo said in his inauguration speech, citing rising geopolitical tension.
While Prabowo's predecessors also sought to reverse declining production, investment has been hindered by red tape and as well as competition for funding, including from renewables.
Indonesia has announced large gas discoveries in recent years and is keen to accelerate development to take advantage of rising LNG (liquefied natural gas) demand locally and abroad. Reuters
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Malaysia's 2025 budget promotes palm waste SAF
Malaysia's state-owned Petronas will work with palm oil producers to develop palm oil waste-based sustainable aviation fuel (SAF), according to prime minister Anwar Ibrahim when he presented the 2025 budget.
The palm oil producers include Malaysia-based agribusiness FGV and Malaysia-headquartered SD Guthrie, previously Sime Darby.
Anwar also announced additional higher tax brackets for crude palm oil (CPO) exports will be introduced from 1 November and proposed to increase Malaysia's windfall profit levy threshold for the palm sector. These changes are meant to ensure domestic CPO supply and encourage domestic production of value-added products including SAF and biodiesel, according to the Budget documents.
Progressive export duties will be introduced from 8.5pc when CPO prices rise above 3,600 ringgit/t ($837/t), up to a maximum 10pc for CPO prices above 4,050 ringgit/t. Previous duty rates capped out at 8pc for CPO prices above 3,450 ringgit/t.
This revised export structure is likely to weigh on palm oil prices, as exporters may reduce bids in the domestic market to keep prices below the threshold that will trigger higher export duties.
The CPO price threshold for triggering Malaysia's windfall profit levy will be increased to 3,150 ringgit/t for Peninsular Malaysia and 3,650 ringgit/t for Sabah and Sarawak from 1 January 2025, a rise of 150 ringgit/t from the previous threshold for both areas. The windfall profit levy applies to producers of palm fresh fruit bunches (FFB).
The revised export taxes and windfall profit levy threshold are expected to increase costs for the palm plantation sector, but would help the downstream palm refining industry become more competitive compared with Indonesia, according to industry consultancy Glenauk Economics.
Replanting funds
Malaysia will also allocate another 100mn ringgit to incentivise smallholders to continue replanting unproductive, ageing oil palm trees under its 2025 budget, the same amount from the previous year. The funding will be 50pc in grants and 50pc in soft loans, as in Budget 2024.
No land area target for replanting was specified this year. But this year's allocated funding of 100mn ringgit mirrored last year's allocation that targeted 5,900 hectares (ha) of land area. But this amount will likely not be enough to support adequate replanting, according to market participants.
Malaysia replanted an estimated 1.7pc of mature oil palm plantation areas during January-September and 2.6pc of mature areas in 2023, according to data from Glenauk Economics. This indicates more funding is likely needed to meet the 4pc industry standard for replanting mature areas yearly as recommended to maintain palm oil output volumes.
The low replanting rate has likely partly been because of high palm oil prices in recent years compared to the historical average. High prices discourage voluntary replanting as plantation owners prefer to continue harvesting FFB from older trees over replanting. Third-month crude palm oil (CPO) futures on Bursa Malaysia averaged 3,890 ringgit/t over the past two years up to 21 October. The average price recorded over the past 10 years was just 3,124 ringgit/t.
The US department of agriculture (USDA) estimated a quarter of planted oil palm areas in Malaysia were older than 25 years old as of early January, resulting in lower yields. By Malcolm Goh/ Argus Media
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EBB gains success in fight against unfair Indonesian biodiesel imports
The European Biodiesel Board (EBB) has obtained a favourable judgement from the Court of Justice, which rejected the appeal formed by Indonesian exporters PT Pelita Agung Agrindustri and PT Permata Hijau Palm Oleo against the judgment of the General Court delivered in 2022.
The ruling from the Court of Justice upheld in its entirety the ruling of the General Court and put an end to four years of litigation.
Xavier Noyon, Secretary General of the EBB, said: “The ruling marks a new milestone for EBB in its long and continuous battle to fight against unfair imports of biodiesel and restore a level playing field in the EU.
“This ruling comes at a critical moment as the countervailing duties will soon expire unless an expiry review investigation concludes there is a need to extend them for another five-year period.”
Back in December 2022, the General Court rejected all the claims from Indonesian exporters to annul the countervailing duties on biodiesel imports from Indonesia imposed on 28 November 2019. This ruling was upheld in today’s decision.
Noyon added: “For over 16 years now, the EBB has been fighting against unfair competition from third countries, to ensure the long-term viability of the EU biodiesel industry, protect jobs across the EU-27 Member States, R&D and progressive independence over fossil fuels. EBB remains committed to fight against any unfair trading practices that could jeopardise the full development of the EU biodiesel industry.” Biofuels News
New Indonesia Leader President Prabowo Strikes Harsher Tone as He Takes Power
(Bloomberg) -- Indonesia’s new leader Prabowo Subianto endeared himself to voters as a kindly grandfather vowing to give free meals to schoolchildren. Now to get things rolling in Southeast Asia’s largest economy, the president is signaling a strongman approach.
The former general used his maiden speech on Sunday to rail against corruption and poverty, a stark departure from his soft-spoken predecessor Joko Widodo, popularly known as Jokowi. And as Prabowo led lawmakers in parliament to chant the Indonesian word for independence, he said: “Those who do not shout merdeka are not patriotic.”
This shows his style of leadership as an ex-special forces commando who is unafraid to call out allies and is likely to brook no dissent or criticism. Prabowo has set an ambitious 8% growth target for Indonesia in the next two to three years and that means turning around the manufacturing sector, fighting corruption and raising incomes in the world’s fourth most populous country.
“He is clearly learning from the early years of Jokowi’s first term when he did not get much done as he was a ‘minority’ president,” said Douglas Ramage, managing director at BowerGroupAsia Indonesia, a strategic advisory firm. “Prabowo’s focus is much more on political inclusivity at this stage.”
So far, markets are upbeat with the sense of continuity as Prabowo stacked his cabinet with several ministers from the previous administration. The Indonesian rupiah edged 0.2% higher to 15,435 per dollar in early trading on Monday, extending gains to a fourth day. The benchmark stock index rose a seventh day, the longest stretch in more than two years. More BNN Bloomberg
---------
New Indonesian President Prabowo aims to boost Indonesia's energy security through oil and gas reforms, biofuels
JAKARTA, Oct 21 (Reuters) - Indonesia's new government aims to revive oil and gas production, with plans to cut regulations, reactivate idle wells and enhance output at producing assets in hopes of reversing a decades-long decline in output, officials have said.
President Prabowo Subianto, who took the oath of office on Sunday, also plans to build on the previous administration's efforts to tap massive gas discoveries in South Andaman and lift biofuels use.
Formerly a member of the Organization of the Petroleum Exporting Countries (OPEC), Indonesia's oil production has declined to under 600,000 barrels per day (bpd) this year from a peak of around 1.6 million bpd in the 1990s due to ageing blocks and sluggish investment.
At the same time, oil consumption in the world's fourth-most populous country has more than doubled to 1.5 million bpd, leading to imports of oil and fuel products that have averaged $28 billion annually in the past decade.
"We must have energy self-sufficiency and we are capable to be self-sufficient," Prabowo said in his inauguration speech, citing rising geopolitical tension.
While Prabowo's predecessors also sought to reverse declining production, investment has been hindered by red tape and as well as competition for funding, including from renewables.
Indonesia has announced large gas discoveries in recent years and is keen to accelerate development to take advantage of rising LNG (liquefied natural gas) demand locally and abroad. Reuters
--------
Malaysia's 2025 budget promotes palm waste SAF
Malaysia's state-owned Petronas will work with palm oil producers to develop palm oil waste-based sustainable aviation fuel (SAF), according to prime minister Anwar Ibrahim when he presented the 2025 budget.
The palm oil producers include Malaysia-based agribusiness FGV and Malaysia-headquartered SD Guthrie, previously Sime Darby.
Anwar also announced additional higher tax brackets for crude palm oil (CPO) exports will be introduced from 1 November and proposed to increase Malaysia's windfall profit levy threshold for the palm sector. These changes are meant to ensure domestic CPO supply and encourage domestic production of value-added products including SAF and biodiesel, according to the Budget documents.
Progressive export duties will be introduced from 8.5pc when CPO prices rise above 3,600 ringgit/t ($837/t), up to a maximum 10pc for CPO prices above 4,050 ringgit/t. Previous duty rates capped out at 8pc for CPO prices above 3,450 ringgit/t.
This revised export structure is likely to weigh on palm oil prices, as exporters may reduce bids in the domestic market to keep prices below the threshold that will trigger higher export duties.
The CPO price threshold for triggering Malaysia's windfall profit levy will be increased to 3,150 ringgit/t for Peninsular Malaysia and 3,650 ringgit/t for Sabah and Sarawak from 1 January 2025, a rise of 150 ringgit/t from the previous threshold for both areas. The windfall profit levy applies to producers of palm fresh fruit bunches (FFB).
The revised export taxes and windfall profit levy threshold are expected to increase costs for the palm plantation sector, but would help the downstream palm refining industry become more competitive compared with Indonesia, according to industry consultancy Glenauk Economics.
Replanting funds
Malaysia will also allocate another 100mn ringgit to incentivise smallholders to continue replanting unproductive, ageing oil palm trees under its 2025 budget, the same amount from the previous year. The funding will be 50pc in grants and 50pc in soft loans, as in Budget 2024.
No land area target for replanting was specified this year. But this year's allocated funding of 100mn ringgit mirrored last year's allocation that targeted 5,900 hectares (ha) of land area. But this amount will likely not be enough to support adequate replanting, according to market participants.
Malaysia replanted an estimated 1.7pc of mature oil palm plantation areas during January-September and 2.6pc of mature areas in 2023, according to data from Glenauk Economics. This indicates more funding is likely needed to meet the 4pc industry standard for replanting mature areas yearly as recommended to maintain palm oil output volumes.
The low replanting rate has likely partly been because of high palm oil prices in recent years compared to the historical average. High prices discourage voluntary replanting as plantation owners prefer to continue harvesting FFB from older trees over replanting. Third-month crude palm oil (CPO) futures on Bursa Malaysia averaged 3,890 ringgit/t over the past two years up to 21 October. The average price recorded over the past 10 years was just 3,124 ringgit/t.
The US department of agriculture (USDA) estimated a quarter of planted oil palm areas in Malaysia were older than 25 years old as of early January, resulting in lower yields. By Malcolm Goh/ Argus Media
--------
EBB gains success in fight against unfair Indonesian biodiesel imports
The European Biodiesel Board (EBB) has obtained a favourable judgement from the Court of Justice, which rejected the appeal formed by Indonesian exporters PT Pelita Agung Agrindustri and PT Permata Hijau Palm Oleo against the judgment of the General Court delivered in 2022.
The ruling from the Court of Justice upheld in its entirety the ruling of the General Court and put an end to four years of litigation.
Xavier Noyon, Secretary General of the EBB, said: “The ruling marks a new milestone for EBB in its long and continuous battle to fight against unfair imports of biodiesel and restore a level playing field in the EU.
“This ruling comes at a critical moment as the countervailing duties will soon expire unless an expiry review investigation concludes there is a need to extend them for another five-year period.”
Back in December 2022, the General Court rejected all the claims from Indonesian exporters to annul the countervailing duties on biodiesel imports from Indonesia imposed on 28 November 2019. This ruling was upheld in today’s decision.
Noyon added: “For over 16 years now, the EBB has been fighting against unfair competition from third countries, to ensure the long-term viability of the EU biodiesel industry, protect jobs across the EU-27 Member States, R&D and progressive independence over fossil fuels. EBB remains committed to fight against any unfair trading practices that could jeopardise the full development of the EU biodiesel industry.” Biofuels News
October 20, 2024
Prabowo Subianto sworn in as Indonesia's eighth President amid celebration
Prabowo Subianto was inaugurated Sunday as the eighth president of the world's most populous Muslim-majority nation, completing his journey from an ex-general accused of rights abuses during the dark days of Indonesia's military dictatorship to the presidential palace.
The former defence minister, who turned 73 on Thursday, was cheered through the streets by thousands of waving supporters after taking his oath on the Quran, the Muslim holy book, in front of lawmakers and foreign dignitaries.
Banners and billboards to welcome the new president filled the streets of the capital, Jakarta, where tens of thousands gathered for festivities including speeches and musical performances along the city's major throughfare.
Subianto was a longtime rival of the immensely popular President Joko Widodo, who ran against him for the presidency twice and refused to accept his defeat on both occasions, in 2014 and 2019.
But Widodo appointed Subianto as defence chief after his reelection, paving the way for an alliance despite their rival political parties. During the campaign, Subianto ran as the popular outgoing president's heir, vowing to continue signature policies like the construction of a multibillion-dollar new capital city and limits on exporting raw materials intended to boost domestic industry.
Backed by Widodo, Subianto swept to a landslide victory in February's direct presidential election on promises of policy continuity.
Subianto was sworn in with his new vice president, 37-year-old Surakarta ex-Mayor Gibran Rakabuming Raka. He chose Raka, who is Widodo's son, as his running mate, with Widodo favouring Subianto over the candidate of his own former party. The former rivals became tacit allies, even though Indonesian presidents don't typically endorse candidates.
Subianto, who has never held elective office, will lead a massive, diverse archipelago nation whose economy has boomed amid strong global demand for its natural resources. But he'll have to contend with global economic distress and regional tensions in Asia, where territorial conflicts and the United States-China rivalry loom large.
Leaders and senior officials from more than 30 countries flew in to attend the ceremony, including Chinese Vice President Han Zheng and leaders of Southeast Asia countries. US President Joe Biden sent Linda Thomas-Greenfield, the US ambassador to the United Nations. Adm. Samuel Paparo, the US Commander of the Indo-Pacific Command, was also among the American delegation. Business Standard
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Malaysia Shows Commitment In Sustainable Farming
The 2025 Malaysian Federal Budget outlines several key measures and incentives to promote sustainable farming practices, reflecting the government’s commitment to environmental sustainability and agricultural modernisation. A prominent initiative is the allocation of subsidies for sustainable farming technologies, particularly targeting the palm oil sector. These subsidies aim to help producers comply with the European Union Deforestation Regulation (EUDR) while reducing environmental impacts. Additionally, the budget highlights investments in research and development (R&D) to boost crop yields and reduce ecological footprints, with a strong focus on Agri-tech innovations to attract investors and modernize the sector.
A significant portion of the budget, RM6.42 billion, is allocated to the Ministry of Agriculture and Food Security (KPKM) to promote sustainable agricultural practices. This funding will support the upgrading of agricultural infrastructure, enhance the sustainability of food production, and align with the National Agro-food Policy 2021-2030. Additionally, the Green Technology Financing Scheme (GTFS) and the National Energy Transition Fund (NETR) have collectively earmarked over RM1 billion for the adoption of renewable energy in agriculture, including energy-efficient technologies supported by e-rebates.
Another important project is the RM1 billion “Five-Season Two-Year Padi Cultivation Project,” which aims to upgrade padi farming infrastructure and increase rice yields by 15%. This initiative reflects the government’s long-term vision of integrating sustainability into food security while improving farmers’ incomes by up to 43%. These comprehensive measures demonstrate Malaysia’s broader goals of achieving sustainable agricultural growth while balancing environmental and economic needs.
The budget addresses the challenges faced by farmers transitioning to sustainable agriculture
The 2025 Malaysian Federal Budget also introduces several measures aimed at addressing the challenges farmers face in transitioning to sustainable agriculture. A key focus is providing financial and technological resources to help farmers adopt innovative practices. Precision agriculture, digital tools, and traceability systems are emphasized as solutions to improve productivity and reduce the knowledge barriers associated with sustainable farming. Additionally, the budget allocates funding for training programs to assist farmers in meeting international regulations, such as the European Union Deforestation Regulation (EUDR), ensuring they are equipped with the knowledge needed for a smooth transition.
The budget also emphasizes modernizing the agro-food sector by enhancing agricultural infrastructure, which is crucial for overcoming logistical barriers that the adoption of sustainable methods. This includes funding to upgrade paddy farming infrastructure, helping farmers increase yields and income despite unpredictable weather patterns and challenges such as flooding. Furthermore, financial incentives, such as tax breaks and subsidies for agritech investments, are designed to reduce the costs associated with acquiring sustainable technologies, making the transition more accessible.
Energy initiatives, such as the Green Technology Financing Scheme (GTFS) and e-rebates for energy-efficient equipment, help ease the financial burden by promoting the adoption of renewable energy and reducing operational costs. These efforts collectively aim to alleviate the financial and logistical obstacles that farmers face while transitioning to sustainable practices, ensuring that sustainability is both achievable and economically viable for them.
The role sustainable farming plays in Malaysia’s broader environmental and economic goals as reflected in the budget
Sustainable farming plays an important role in Malaysia’s broader environmental and economic goals as outlined in the 2025 budget. Central to this is its contribution to enhancing Malaysia’s global competitiveness, particularly in sectors like palm oil, where compliance with international environmental standards, such as the European Union Deforestation Regulation, is crucial. The budget supports economic growth while ensuring that environmental and social considerations are met, thereby strengthening Malaysia’s market access and trade relations on the global stage.
In the domestic sphere, sustainable farming is a key strategy for addressing food security challenges, as outlined in the National Agro-food Policy 2021-2030. The budget allocates resources to modernize agriculture, emphasizing the need to increase productivity while preserving environmental sustainability. This approach not only ensures long-term food sufficiency but also aligns with Malaysia’s economic objectives of safeguarding the well-being of its population and fostering agricultural resilience against climate change.
Furthermore, the integration of sustainable farming with clean energy initiatives, such as the expansion of solar energy and energy-efficient technologies, underscores Malaysia’s commitment to reducing its carbon footprint. Sustainable farming contributes to both environmental sustainability and economic growth, positioning Malaysia as a leader in addressing global challenges like climate change, rising food prices, and the demand for sustainable food sources. This multi-faceted approach ensures that sustainable farming supports the nation’s long-term environmental and economic resilience. Business Today
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Prabowo Subianto sworn in as Indonesia's eighth President amid celebration
Prabowo Subianto was inaugurated Sunday as the eighth president of the world's most populous Muslim-majority nation, completing his journey from an ex-general accused of rights abuses during the dark days of Indonesia's military dictatorship to the presidential palace.
The former defence minister, who turned 73 on Thursday, was cheered through the streets by thousands of waving supporters after taking his oath on the Quran, the Muslim holy book, in front of lawmakers and foreign dignitaries.
Banners and billboards to welcome the new president filled the streets of the capital, Jakarta, where tens of thousands gathered for festivities including speeches and musical performances along the city's major throughfare.
Subianto was a longtime rival of the immensely popular President Joko Widodo, who ran against him for the presidency twice and refused to accept his defeat on both occasions, in 2014 and 2019.
But Widodo appointed Subianto as defence chief after his reelection, paving the way for an alliance despite their rival political parties. During the campaign, Subianto ran as the popular outgoing president's heir, vowing to continue signature policies like the construction of a multibillion-dollar new capital city and limits on exporting raw materials intended to boost domestic industry.
Backed by Widodo, Subianto swept to a landslide victory in February's direct presidential election on promises of policy continuity.
Subianto was sworn in with his new vice president, 37-year-old Surakarta ex-Mayor Gibran Rakabuming Raka. He chose Raka, who is Widodo's son, as his running mate, with Widodo favouring Subianto over the candidate of his own former party. The former rivals became tacit allies, even though Indonesian presidents don't typically endorse candidates.
Subianto, who has never held elective office, will lead a massive, diverse archipelago nation whose economy has boomed amid strong global demand for its natural resources. But he'll have to contend with global economic distress and regional tensions in Asia, where territorial conflicts and the United States-China rivalry loom large.
Leaders and senior officials from more than 30 countries flew in to attend the ceremony, including Chinese Vice President Han Zheng and leaders of Southeast Asia countries. US President Joe Biden sent Linda Thomas-Greenfield, the US ambassador to the United Nations. Adm. Samuel Paparo, the US Commander of the Indo-Pacific Command, was also among the American delegation. Business Standard
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Malaysia Shows Commitment In Sustainable Farming
The 2025 Malaysian Federal Budget outlines several key measures and incentives to promote sustainable farming practices, reflecting the government’s commitment to environmental sustainability and agricultural modernisation. A prominent initiative is the allocation of subsidies for sustainable farming technologies, particularly targeting the palm oil sector. These subsidies aim to help producers comply with the European Union Deforestation Regulation (EUDR) while reducing environmental impacts. Additionally, the budget highlights investments in research and development (R&D) to boost crop yields and reduce ecological footprints, with a strong focus on Agri-tech innovations to attract investors and modernize the sector.
A significant portion of the budget, RM6.42 billion, is allocated to the Ministry of Agriculture and Food Security (KPKM) to promote sustainable agricultural practices. This funding will support the upgrading of agricultural infrastructure, enhance the sustainability of food production, and align with the National Agro-food Policy 2021-2030. Additionally, the Green Technology Financing Scheme (GTFS) and the National Energy Transition Fund (NETR) have collectively earmarked over RM1 billion for the adoption of renewable energy in agriculture, including energy-efficient technologies supported by e-rebates.
Another important project is the RM1 billion “Five-Season Two-Year Padi Cultivation Project,” which aims to upgrade padi farming infrastructure and increase rice yields by 15%. This initiative reflects the government’s long-term vision of integrating sustainability into food security while improving farmers’ incomes by up to 43%. These comprehensive measures demonstrate Malaysia’s broader goals of achieving sustainable agricultural growth while balancing environmental and economic needs.
The budget addresses the challenges faced by farmers transitioning to sustainable agriculture
The 2025 Malaysian Federal Budget also introduces several measures aimed at addressing the challenges farmers face in transitioning to sustainable agriculture. A key focus is providing financial and technological resources to help farmers adopt innovative practices. Precision agriculture, digital tools, and traceability systems are emphasized as solutions to improve productivity and reduce the knowledge barriers associated with sustainable farming. Additionally, the budget allocates funding for training programs to assist farmers in meeting international regulations, such as the European Union Deforestation Regulation (EUDR), ensuring they are equipped with the knowledge needed for a smooth transition.
The budget also emphasizes modernizing the agro-food sector by enhancing agricultural infrastructure, which is crucial for overcoming logistical barriers that the adoption of sustainable methods. This includes funding to upgrade paddy farming infrastructure, helping farmers increase yields and income despite unpredictable weather patterns and challenges such as flooding. Furthermore, financial incentives, such as tax breaks and subsidies for agritech investments, are designed to reduce the costs associated with acquiring sustainable technologies, making the transition more accessible.
Energy initiatives, such as the Green Technology Financing Scheme (GTFS) and e-rebates for energy-efficient equipment, help ease the financial burden by promoting the adoption of renewable energy and reducing operational costs. These efforts collectively aim to alleviate the financial and logistical obstacles that farmers face while transitioning to sustainable practices, ensuring that sustainability is both achievable and economically viable for them.
The role sustainable farming plays in Malaysia’s broader environmental and economic goals as reflected in the budget
Sustainable farming plays an important role in Malaysia’s broader environmental and economic goals as outlined in the 2025 budget. Central to this is its contribution to enhancing Malaysia’s global competitiveness, particularly in sectors like palm oil, where compliance with international environmental standards, such as the European Union Deforestation Regulation, is crucial. The budget supports economic growth while ensuring that environmental and social considerations are met, thereby strengthening Malaysia’s market access and trade relations on the global stage.
In the domestic sphere, sustainable farming is a key strategy for addressing food security challenges, as outlined in the National Agro-food Policy 2021-2030. The budget allocates resources to modernize agriculture, emphasizing the need to increase productivity while preserving environmental sustainability. This approach not only ensures long-term food sufficiency but also aligns with Malaysia’s economic objectives of safeguarding the well-being of its population and fostering agricultural resilience against climate change.
Furthermore, the integration of sustainable farming with clean energy initiatives, such as the expansion of solar energy and energy-efficient technologies, underscores Malaysia’s commitment to reducing its carbon footprint. Sustainable farming contributes to both environmental sustainability and economic growth, positioning Malaysia as a leader in addressing global challenges like climate change, rising food prices, and the demand for sustainable food sources. This multi-faceted approach ensures that sustainable farming supports the nation’s long-term environmental and economic resilience. Business Today
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October 19, 2024
MPOB: Increase in windfall profit levy threshold allows plantation firms to plan long-term investments
KUALA LUMPUR (Oct 19): The increase in the threshold value of the windfall profit levy (WPL) gives plantation companies room to operate more efficiently, especially to face the competitive global vegetable oil market, Malaysian Palm Oil Board (MPOB) director general Datuk Dr Ahmad Parveez Ghulam Kadir said.
“The increase in the WPL threshold value allows companies to plan investments with a focus on long-term initiatives.
“This includes strategic investment in the replanting of old palm trees which are increasing in area, which in turn can increase the productivity of farm produce,” he said in a press statement.
Budget 2025’s announcement on an increase in the current WPL threshold value from RM3,000 per tonne to RM3,150 per tonne for Peninsular Malaysia, and from RM3,500 per tonne to RM3,650 per tonne for Sabah and Sarawak, is a positive step by the government in supporting the palm oil sector.
"Although the increase is moderate, it is an initial effort that can reduce the pressure of the increase in the cost of palm oil production," he said.
The allocation of RM100 million for the replanting programme will benefit more than 1,500 smallholders, over 5,900 hectares.
The implementation of replanting incentives encourages smallholders to replant old oil palm trees that are less productive, to increase oil palm yield, as well as smallholder income.
"This step strengthens the country's oil palm sector and the economic stability of smallholders in the long term," said Ahmad Parveez.
He added that the announcement of an allocation of RM65 million to counter misunderstandings about palm oil at the international level, especially from the European Union (EU), is a strategic move to strengthen the Malaysian palm oil market. The EdgeMY
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Upwards adjustment to palm oil windfall profit levy threshold not sufficient, says MPOA
KUALA LUMPUR (Oct 19): The upward adjustment to the windfall profit levy (WPL) threshold for crude palm oil (CPO) announced in Budget 2025 “does not address the financial burdens” posed by the mechanism, the Malaysian Palm Oil Association (MPOA) said.
The industry association had called for WPL to be imposed only when CPO price hits RM4,000/metric tonne (MT) in Peninsular Malaysia, and RM4,500 in Sabah and Sarawak.
The levy thresholds are RM3,000 and RM3,500 respectively at present, and the government is raising them to RM3,150 and RM3,650 — a RM150 increase, compared with RM1,000 increase requested.
Expressing the disappointment, MPOA's chief executive Roslin Azmy Hassan said in a statement, “The levy is triggered based on revenue rather than profit, resulting in a heavy financial impact during periods when market prices hover around the threshold, but operational costs are also elevated.”
This situation is further exacerbated by rising production costs, which include labour, fertilisers, transportation, and sustainability compliance expenses, it said.
“Looking ahead, 2025 is shaping up to be another challenging year for the palm oil industry, with increasing costs expected across the board.
“The marginal adjustments in the 2025 budget do not sufficiently address the financial burdens faced by the industry, nor do they provide the level of support needed to navigate the anticipated headwinds,” it added.
The MPOA reiterated its call for the WPL to be applied “based on profit margins rather than a fixed revenue benchmark, which would more fairly reflect the industry’s financial position”.
Further, the MPOA alleged that the government did not discuss with industry stakeholders on the revision of the export duty structure for CPO effective next month.
“Any revision of the export duty structure should be made with thorough consultation to ensure that the interests of all stakeholders, including plantation companies, smallholders, and downstream processors, are taken into account,” it said.
On the decision to maintain the current treatment for the export of CPO from Sabah and Sarawak, the MPOA said the government does offer some stability. However, it must be noted that this status quo does not provide any additional competitive advantage or cost relief for producers in these regions who are facing unique logistical and economic challenges. The EdgeMY
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Bright outlook for Malaysia’s trade with the United States and China
THE country’s trade with both China and the United States is expected to strengthen, driven by global economic dynamism and evolving trade policies despite geopolitical uncertainties.
The trade partnership with China has grown substantially over the past few decades, built on mutual economic interests, geographical proximity and complementary industrial strengths.
The nation exports a wide range of goods to China including electrical and electronics (E&E) products, chemicals and chemical products, liquefied natural gas, manufactures of metal, other manufactures, as well as palm oil and palm oil-based agriculture products. Major imports from China include E&E products; machinery, equipment and parts; chemicals and chemical products, manufactures of metal; and petroleum products.
Imports of these goods support Malaysia’s own manufacturing industries and consumer markets.
The dynamic and evolving economic ties with China bolsters Malaysia’s economic growth and enhances regional economic integration, particularly within the framework of initiatives like the Belt and Road Initiative and the Regional Comprehensive Economic Partnership.
Malaysia’s exports to China recorded an upward trend from 2015 to 2022, despite trade tensions between the United States and China. Nonetheless, exports to China moderated in 2023 due to slower economic growth.As Malaysia is an open economy and deeply integrated into the global supply chain, the geopolitical tensions between the two countries have posed both challenges and opportunities.
Malaysia benefited from the trade diversion arising from relocation of industries from China and the United States to the South-East Asian region as ways to avoid future risks out of the increased US-China tensions. The StarMY
MPOB: Increase in windfall profit levy threshold allows plantation firms to plan long-term investments
KUALA LUMPUR (Oct 19): The increase in the threshold value of the windfall profit levy (WPL) gives plantation companies room to operate more efficiently, especially to face the competitive global vegetable oil market, Malaysian Palm Oil Board (MPOB) director general Datuk Dr Ahmad Parveez Ghulam Kadir said.
“The increase in the WPL threshold value allows companies to plan investments with a focus on long-term initiatives.
“This includes strategic investment in the replanting of old palm trees which are increasing in area, which in turn can increase the productivity of farm produce,” he said in a press statement.
Budget 2025’s announcement on an increase in the current WPL threshold value from RM3,000 per tonne to RM3,150 per tonne for Peninsular Malaysia, and from RM3,500 per tonne to RM3,650 per tonne for Sabah and Sarawak, is a positive step by the government in supporting the palm oil sector.
"Although the increase is moderate, it is an initial effort that can reduce the pressure of the increase in the cost of palm oil production," he said.
The allocation of RM100 million for the replanting programme will benefit more than 1,500 smallholders, over 5,900 hectares.
The implementation of replanting incentives encourages smallholders to replant old oil palm trees that are less productive, to increase oil palm yield, as well as smallholder income.
"This step strengthens the country's oil palm sector and the economic stability of smallholders in the long term," said Ahmad Parveez.
He added that the announcement of an allocation of RM65 million to counter misunderstandings about palm oil at the international level, especially from the European Union (EU), is a strategic move to strengthen the Malaysian palm oil market. The EdgeMY
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Upwards adjustment to palm oil windfall profit levy threshold not sufficient, says MPOA
KUALA LUMPUR (Oct 19): The upward adjustment to the windfall profit levy (WPL) threshold for crude palm oil (CPO) announced in Budget 2025 “does not address the financial burdens” posed by the mechanism, the Malaysian Palm Oil Association (MPOA) said.
The industry association had called for WPL to be imposed only when CPO price hits RM4,000/metric tonne (MT) in Peninsular Malaysia, and RM4,500 in Sabah and Sarawak.
The levy thresholds are RM3,000 and RM3,500 respectively at present, and the government is raising them to RM3,150 and RM3,650 — a RM150 increase, compared with RM1,000 increase requested.
Expressing the disappointment, MPOA's chief executive Roslin Azmy Hassan said in a statement, “The levy is triggered based on revenue rather than profit, resulting in a heavy financial impact during periods when market prices hover around the threshold, but operational costs are also elevated.”
This situation is further exacerbated by rising production costs, which include labour, fertilisers, transportation, and sustainability compliance expenses, it said.
“Looking ahead, 2025 is shaping up to be another challenging year for the palm oil industry, with increasing costs expected across the board.
“The marginal adjustments in the 2025 budget do not sufficiently address the financial burdens faced by the industry, nor do they provide the level of support needed to navigate the anticipated headwinds,” it added.
The MPOA reiterated its call for the WPL to be applied “based on profit margins rather than a fixed revenue benchmark, which would more fairly reflect the industry’s financial position”.
Further, the MPOA alleged that the government did not discuss with industry stakeholders on the revision of the export duty structure for CPO effective next month.
“Any revision of the export duty structure should be made with thorough consultation to ensure that the interests of all stakeholders, including plantation companies, smallholders, and downstream processors, are taken into account,” it said.
On the decision to maintain the current treatment for the export of CPO from Sabah and Sarawak, the MPOA said the government does offer some stability. However, it must be noted that this status quo does not provide any additional competitive advantage or cost relief for producers in these regions who are facing unique logistical and economic challenges. The EdgeMY
--------
Bright outlook for Malaysia’s trade with the United States and China
THE country’s trade with both China and the United States is expected to strengthen, driven by global economic dynamism and evolving trade policies despite geopolitical uncertainties.
The trade partnership with China has grown substantially over the past few decades, built on mutual economic interests, geographical proximity and complementary industrial strengths.
The nation exports a wide range of goods to China including electrical and electronics (E&E) products, chemicals and chemical products, liquefied natural gas, manufactures of metal, other manufactures, as well as palm oil and palm oil-based agriculture products. Major imports from China include E&E products; machinery, equipment and parts; chemicals and chemical products, manufactures of metal; and petroleum products.
Imports of these goods support Malaysia’s own manufacturing industries and consumer markets.
The dynamic and evolving economic ties with China bolsters Malaysia’s economic growth and enhances regional economic integration, particularly within the framework of initiatives like the Belt and Road Initiative and the Regional Comprehensive Economic Partnership.
Malaysia’s exports to China recorded an upward trend from 2015 to 2022, despite trade tensions between the United States and China. Nonetheless, exports to China moderated in 2023 due to slower economic growth.As Malaysia is an open economy and deeply integrated into the global supply chain, the geopolitical tensions between the two countries have posed both challenges and opportunities.
Malaysia benefited from the trade diversion arising from relocation of industries from China and the United States to the South-East Asian region as ways to avoid future risks out of the increased US-China tensions. The StarMY
October 18, 2024
Alleged Corruption in Palm Oil Governance at KLHK Tied to Company Legalization Processes
TEMPO.CO, Jakarta - The Attorney General's Office is investigating alleged corruption in the governance of palm oil at the Ministry of Environment and Forestry (KLHK). Investigators from the Special Task Force Deputy Attorney General for Grantee Allegations at the Attorney General's Office raided the KLHK Office at Manggala Building on Thursday, October 3, 2024.
Tempo's source mentioned that the investigation of this alleged corruption is based on a report from a palm oil company undergoing a legalizing process, as stipulated in Article 110A of the Omnibus Law.
Article 110A of the Omnibus Law regulates companies that had business permits before the Omnibus Law was enacted. These companies were given leniency to be whitened or legalized as long as they fulfilled the requirements before November 2023. If they fail to meet the deadline, they will be subject to administrative sanctions, which include permit revocation or fines.
The head of the Legal Information Center of the Attorney General's Office, Harli Siregar, confirmed the information obtained by Tempo. However, he referred to the company's report as a report from the community.
"Yes, from a community report, as for who made the report, I don't know," said Harli Siregar when met by Tempo at his office on Tuesday, October 15, 2024. More Tempo
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Enabling Regenerative Agriculture for Independent Smallholders in Indonesia: The BIPOSC Project, in Collaboration with Musim Mas, L3F, SNV Indonesia, and ICRAF
JAKARTA, Indonesia, Oct. 18, 2024 /PRNewswire/ -- Musim Mas Group, the Livelihoods Fund for Family Farming (L3F), SNV Indonesia, and World Agroforestry (ICRAF) are collaborating to improve the knowledge and capacity of independent oil palm smallholders through the Biodiverse & Inclusive Palm Oil Supply Chain (BIPOSC) project.
https://finance.yahoo.com/news/enabling-regenerative-agriculture-independent-smallholders-023400661.html#:~:text=The%20project%20began,Palm%20Oil%20(ISPO).
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Patanjali Inks MoU with Tripura Government to Launch Large-Scale Palm Plantation, Boosts Self-Reliance in Edible Oil
Patanjali Ayurved Limited, a major Indian FMCG and wellness company, has signed a Memorandum of Understanding (MoU) with the Tripura government to initiate large-scale palm oil plantations in the state. The partnership is part of India’s broader push to promote oil palm cultivation and reduce its dependency on imported edible oils, which account for a substantial portion of the country’s consumption.
The MoU was inked in a ceremony held in Agartala, attended by Tripura Chief Minister Manik Saha, senior government officials, and representatives from Patanjali, including its co-founder and yoga guru Baba Ramdev. The project is expected to generate employment, support local farmers, and improve Tripura’s agricultural output while aligning with the central government’s vision of self-reliance in oil production.
The MoU and Its Significance
Under the MoU, Patanjali will collaborate with the state government to facilitate the cultivation of oil palm on a large scale. The initial phase of the project will focus on identifying suitable land and training farmers on the technical aspects of palm cultivation. Patanjali will also provide high-quality seedlings, advanced farming techniques, and sustainable agricultural practices to maximize yield. Borok Times
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Sarawak palm oil sector embraces sustainable practices amid technological challenges
KUCHING (Oct 17): Palm oil industry players and the Sarawak government are intensifying their commitment to balance industrial progress with ecological responsibility, ensuring the palm oil industry continues to thrive in a sustainable manner, said Sarawak Oil Palm Plantation Owners Association (Soppoa).
However, one of the critical issues faced by the players is the industry’s need for more advanced technology to meet regulatory standards, especially in areas like by-product management and emissions control, its chairman Eric Kiu Kwong Seng pointed out.
He noted that many current processes lack the necessary technological solutions to align with environmental expectations, placing additional pressure on operators.
In a statement, he said these matters were discussed during their meeting with state Deputy Minister of Energy and Environmental Sustainability Datuk Dr Hazland Abang Hipni here today.
Kiu said the meet marked yet another significant government-industry engagement aimed at addressing key issues within the palm oil industry in Sarawak.
“This meeting reflects the shared commitment to overcoming the numerous challenges the industry faces, particularly in adapting to increasingly stringent environmental regulations.
“During the meeting, Dr Hazland demonstrated his proactive approach by proposing several short and long-term strategies to assist the industry.
“His commitment to working with stakeholders ensures that practical, sustainable solutions can be identified and implemented,” said Kiu.
He said Soppoa deeply appreciated Dr Hazland’s ongoing initiatives and looked forward to continued collaboration in realising the state’s ambitions of improving environmental sustainability.
Also present during the meeting were Soppoa chief executive officer Dr Felix Moh Mee Ho and industry service providers. The Borneo Post
Alleged Corruption in Palm Oil Governance at KLHK Tied to Company Legalization Processes
TEMPO.CO, Jakarta - The Attorney General's Office is investigating alleged corruption in the governance of palm oil at the Ministry of Environment and Forestry (KLHK). Investigators from the Special Task Force Deputy Attorney General for Grantee Allegations at the Attorney General's Office raided the KLHK Office at Manggala Building on Thursday, October 3, 2024.
Tempo's source mentioned that the investigation of this alleged corruption is based on a report from a palm oil company undergoing a legalizing process, as stipulated in Article 110A of the Omnibus Law.
Article 110A of the Omnibus Law regulates companies that had business permits before the Omnibus Law was enacted. These companies were given leniency to be whitened or legalized as long as they fulfilled the requirements before November 2023. If they fail to meet the deadline, they will be subject to administrative sanctions, which include permit revocation or fines.
The head of the Legal Information Center of the Attorney General's Office, Harli Siregar, confirmed the information obtained by Tempo. However, he referred to the company's report as a report from the community.
"Yes, from a community report, as for who made the report, I don't know," said Harli Siregar when met by Tempo at his office on Tuesday, October 15, 2024. More Tempo
---------
Enabling Regenerative Agriculture for Independent Smallholders in Indonesia: The BIPOSC Project, in Collaboration with Musim Mas, L3F, SNV Indonesia, and ICRAF
JAKARTA, Indonesia, Oct. 18, 2024 /PRNewswire/ -- Musim Mas Group, the Livelihoods Fund for Family Farming (L3F), SNV Indonesia, and World Agroforestry (ICRAF) are collaborating to improve the knowledge and capacity of independent oil palm smallholders through the Biodiverse & Inclusive Palm Oil Supply Chain (BIPOSC) project.
https://finance.yahoo.com/news/enabling-regenerative-agriculture-independent-smallholders-023400661.html#:~:text=The%20project%20began,Palm%20Oil%20(ISPO).
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Patanjali Inks MoU with Tripura Government to Launch Large-Scale Palm Plantation, Boosts Self-Reliance in Edible Oil
Patanjali Ayurved Limited, a major Indian FMCG and wellness company, has signed a Memorandum of Understanding (MoU) with the Tripura government to initiate large-scale palm oil plantations in the state. The partnership is part of India’s broader push to promote oil palm cultivation and reduce its dependency on imported edible oils, which account for a substantial portion of the country’s consumption.
The MoU was inked in a ceremony held in Agartala, attended by Tripura Chief Minister Manik Saha, senior government officials, and representatives from Patanjali, including its co-founder and yoga guru Baba Ramdev. The project is expected to generate employment, support local farmers, and improve Tripura’s agricultural output while aligning with the central government’s vision of self-reliance in oil production.
The MoU and Its Significance
Under the MoU, Patanjali will collaborate with the state government to facilitate the cultivation of oil palm on a large scale. The initial phase of the project will focus on identifying suitable land and training farmers on the technical aspects of palm cultivation. Patanjali will also provide high-quality seedlings, advanced farming techniques, and sustainable agricultural practices to maximize yield. Borok Times
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Sarawak palm oil sector embraces sustainable practices amid technological challenges
KUCHING (Oct 17): Palm oil industry players and the Sarawak government are intensifying their commitment to balance industrial progress with ecological responsibility, ensuring the palm oil industry continues to thrive in a sustainable manner, said Sarawak Oil Palm Plantation Owners Association (Soppoa).
However, one of the critical issues faced by the players is the industry’s need for more advanced technology to meet regulatory standards, especially in areas like by-product management and emissions control, its chairman Eric Kiu Kwong Seng pointed out.
He noted that many current processes lack the necessary technological solutions to align with environmental expectations, placing additional pressure on operators.
In a statement, he said these matters were discussed during their meeting with state Deputy Minister of Energy and Environmental Sustainability Datuk Dr Hazland Abang Hipni here today.
Kiu said the meet marked yet another significant government-industry engagement aimed at addressing key issues within the palm oil industry in Sarawak.
“This meeting reflects the shared commitment to overcoming the numerous challenges the industry faces, particularly in adapting to increasingly stringent environmental regulations.
“During the meeting, Dr Hazland demonstrated his proactive approach by proposing several short and long-term strategies to assist the industry.
“His commitment to working with stakeholders ensures that practical, sustainable solutions can be identified and implemented,” said Kiu.
He said Soppoa deeply appreciated Dr Hazland’s ongoing initiatives and looked forward to continued collaboration in realising the state’s ambitions of improving environmental sustainability.
Also present during the meeting were Soppoa chief executive officer Dr Felix Moh Mee Ho and industry service providers. The Borneo Post
October 17, 2024
Indonesia to boost agricultural industrialization, focusing on seaweed development
The government of President-elect Prabowo Subianto is set to enhance its industrialization strategy by focusing on agricultural commodities, particularly seaweed, a Cabinet minister says.
Minister of Investment/Head of the Investment Coordinating Board (BKPM) Rosan P. Roeslani announced that the government has developed a strategic roadmap for industrialization, shifting beyond the mining sector to maximize the potential of several key agricultural products, including seaweed, crude palm oil, nutmeg, rubber, coconut, and blue swimming crab.
“The next commodity that will be prioritized in our industrialization program is seaweed,” Rosan told a media conference on Tuesday, October 15, 2024.
He elaborated that seaweed has vast downstream applications, such as in food products, cosmetics, and agar-agar production. Indonesia’s extensive coastline, spanning 99,093 kilometers, offers a significant comparative advantage for seaweed cultivation.
The Coordinating Ministry of Maritime Affairs and Investment estimates that the added value from seaweed industrialization could reach US$11.8 billion (Rp182 trillion).
To kickstart this initiative, the government plans to launch a pilot seaweed farming project worth US$2 million (Rp31.06 billion) next year.
Rosan noted that since 2020, the total investment in Indonesia’s industrialization initiatives has amounted to US$78.7 billion (Rp1,245.8 trillion), with 61 percent of the funds allocated to smelters, equating to US$48 billion (Rp759. 83 trillion).
The forestry sector, primarily paper and pulp industries, has received an investment of US$12.6 billion (Rp196.99 trillion), while the agricultural sector, particularly crude palm oil and oleochemical industries, has attracted US$8.3 billion (Rp130.33 trillion).
Seaweed is expected to become a major economic driver, with projections showing peak demand for seaweed-derived products in 2040.
By that time, the global market for organic fertilizers made from seaweed could reach US$10 billion, while eco-friendly plastics could grow beyond US$40 billion.
Domestically, seaweed prices range between US$1,000 and US$ 2,000 per ton, depending on the grade and usage. Higher-end applications, such as organic fertilizer and pharmaceutical production, could push prices up to US$13,000 per ton.
Seaweed is also seen as a cost-effective alternative in the industrialization sector.
For instance, developing 1.2 million hectares of seaweed farms would require an investment of just US$48 million, far less than the capital-intensive nickel sector.
Indonesia’s commitment to enhancing its agricultural industrialization marks a significant step toward diversifying the economy and creating sustainable, long-term growth.
By leveraging the country’s vast natural resources, particularly seaweed, the government aims to create jobs and boost its position in the global market for sustainable products. Indonesia Business Post
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Singapore firm accused of deforestation through ‘shadow’ firms linked to Indonesia’s controversial food estate project
Eco Business reports First Resources complicity in deforestation in Papua
Palm oil company First Resources has denied that it secured sugarcane concessions in Papua through its subsidiaries, which would jeopardise a no-deforestation pledge the company made almost a decade ago. Eco Business
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RSPO rules Samsung palm oil subsidiary violated Indigenous rights in Sumatra
The world’s leading certifier of sustainable palm oil has ruled a Samsung subsidiary violated its standards by failing to consult with a local Indigenous community in Sumatra, Indonesia, where it cleared forests for oil palm plantations.
In a Sept. 13 decision, the Roundtable on Sustainable Palm Oil (RSPO) said its member PT Inecda, a subsidiary of S&G Biofuel Pte. Ltd. and a palm oil plantation under Samsung C&T, hadn’t obtained the free, prior and informed consent (FPIC) of the Talang Parit community.
The decision notes that the existing rules and guides “provided clear obligations and practical guidance” to implement FPIC processes, which Inecda failed to follow.
The RSPO also found Inecda in breach of its criteria requiring a mutually agreed-upon complaints and grievance mechanism.
Inecda is required to respond to the RSPO within 90 days after receipt of the decision, with a plan to conduct participatory mapping with the Indigenous community. It must also revise its complaints procedures by consulting the community.
Mongabay contacted Inecda and Samsung C&T for comment but hadn’t received a response at the time of publishing.
According to the global coalition Rights and Resources Initiative (RRI), an RSPO meeting in December 2021 with Inecda was the first time community leaders had been included in a dialogue with the company.
The current location of the Inecda plantation has seen “more than 5,000 hectares (12,400 acres) of its forest” clear-cut for palm oil,” RRI said in a statement. More Mongabay
Indonesia to boost agricultural industrialization, focusing on seaweed development
The government of President-elect Prabowo Subianto is set to enhance its industrialization strategy by focusing on agricultural commodities, particularly seaweed, a Cabinet minister says.
Minister of Investment/Head of the Investment Coordinating Board (BKPM) Rosan P. Roeslani announced that the government has developed a strategic roadmap for industrialization, shifting beyond the mining sector to maximize the potential of several key agricultural products, including seaweed, crude palm oil, nutmeg, rubber, coconut, and blue swimming crab.
“The next commodity that will be prioritized in our industrialization program is seaweed,” Rosan told a media conference on Tuesday, October 15, 2024.
He elaborated that seaweed has vast downstream applications, such as in food products, cosmetics, and agar-agar production. Indonesia’s extensive coastline, spanning 99,093 kilometers, offers a significant comparative advantage for seaweed cultivation.
The Coordinating Ministry of Maritime Affairs and Investment estimates that the added value from seaweed industrialization could reach US$11.8 billion (Rp182 trillion).
To kickstart this initiative, the government plans to launch a pilot seaweed farming project worth US$2 million (Rp31.06 billion) next year.
Rosan noted that since 2020, the total investment in Indonesia’s industrialization initiatives has amounted to US$78.7 billion (Rp1,245.8 trillion), with 61 percent of the funds allocated to smelters, equating to US$48 billion (Rp759. 83 trillion).
The forestry sector, primarily paper and pulp industries, has received an investment of US$12.6 billion (Rp196.99 trillion), while the agricultural sector, particularly crude palm oil and oleochemical industries, has attracted US$8.3 billion (Rp130.33 trillion).
Seaweed is expected to become a major economic driver, with projections showing peak demand for seaweed-derived products in 2040.
By that time, the global market for organic fertilizers made from seaweed could reach US$10 billion, while eco-friendly plastics could grow beyond US$40 billion.
Domestically, seaweed prices range between US$1,000 and US$ 2,000 per ton, depending on the grade and usage. Higher-end applications, such as organic fertilizer and pharmaceutical production, could push prices up to US$13,000 per ton.
Seaweed is also seen as a cost-effective alternative in the industrialization sector.
For instance, developing 1.2 million hectares of seaweed farms would require an investment of just US$48 million, far less than the capital-intensive nickel sector.
Indonesia’s commitment to enhancing its agricultural industrialization marks a significant step toward diversifying the economy and creating sustainable, long-term growth.
By leveraging the country’s vast natural resources, particularly seaweed, the government aims to create jobs and boost its position in the global market for sustainable products. Indonesia Business Post
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Singapore firm accused of deforestation through ‘shadow’ firms linked to Indonesia’s controversial food estate project
Eco Business reports First Resources complicity in deforestation in Papua
Palm oil company First Resources has denied that it secured sugarcane concessions in Papua through its subsidiaries, which would jeopardise a no-deforestation pledge the company made almost a decade ago. Eco Business
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RSPO rules Samsung palm oil subsidiary violated Indigenous rights in Sumatra
The world’s leading certifier of sustainable palm oil has ruled a Samsung subsidiary violated its standards by failing to consult with a local Indigenous community in Sumatra, Indonesia, where it cleared forests for oil palm plantations.
In a Sept. 13 decision, the Roundtable on Sustainable Palm Oil (RSPO) said its member PT Inecda, a subsidiary of S&G Biofuel Pte. Ltd. and a palm oil plantation under Samsung C&T, hadn’t obtained the free, prior and informed consent (FPIC) of the Talang Parit community.
The decision notes that the existing rules and guides “provided clear obligations and practical guidance” to implement FPIC processes, which Inecda failed to follow.
The RSPO also found Inecda in breach of its criteria requiring a mutually agreed-upon complaints and grievance mechanism.
Inecda is required to respond to the RSPO within 90 days after receipt of the decision, with a plan to conduct participatory mapping with the Indigenous community. It must also revise its complaints procedures by consulting the community.
Mongabay contacted Inecda and Samsung C&T for comment but hadn’t received a response at the time of publishing.
According to the global coalition Rights and Resources Initiative (RRI), an RSPO meeting in December 2021 with Inecda was the first time community leaders had been included in a dialogue with the company.
The current location of the Inecda plantation has seen “more than 5,000 hectares (12,400 acres) of its forest” clear-cut for palm oil,” RRI said in a statement. More Mongabay
October 16, 2024
EU deforestation law: Council agrees to extend application timeline
Today, the Council agreed on its position on the targeted amendment of the EU deforestation regulation, postponing its date of application by 12 months.
This postponement will allow third countries, member states, operators and traders to be fully prepared in their due diligence obligations, which is to ensure that certain commodities and products sold in the EU or exported from the EU are deforestation-free. This includes products made from cattle, wood, cocoa, soy, palm oil, coffee, rubber, and some of their derived products.
More time given to better prepare for implementation
The deforestation regulation has already been in force since 29 June 2023 and its provisions are to be applied from 30 December 2024. The Council agreed to the Commission’s proposal to postpone the application date of the regulation by one year, due to the lack of the key elements of the regulation, such as guidance documents to help companies and countries better apply the rules.
Therefore, if agreed by the European Parliament, the obligations stemming from this regulation will be binding from:
30 December 2025, for large operators and traders
30 June 2026, for micro- and small enterprises
This would give legal certainty, predictability and sufficient time for a smooth and effective implementation of the rules, including fully establishing due diligence systems covering all relevant commodities and products. These due diligence systems include identifying deforestation risks in supply chains as well as monitoring and reporting measures to prove compliance with EU rules.
Keeping the deforestation-free objective
The targeted amendment will not affect the substance of the already existing rules, which is to minimise the EU’s contribution to deforestation and forest degradation worldwide, by only allowing placing on the EU market, or exporting from the EU, deforestation-free products. Deforestation-free products are products that have been produced on land not subject to deforestation or forest degradation after 31 December 2020.
Next steps
The Council will now inform the European Parliament of its position in view of the Parliament taking a decision on its position. The aim is to have the regulation formally adopted by both co-legislators and published in the Official Journal of the EU so that it can enter into force by the end of the year.
Background
The main driver of global deforestation and forest degradation is the expansion of agricultural land, which is linked to the production of the commodities included in the scope of the regulation. As the EU is a major consumer of such commodities, it can reduce its contribution to global deforestation and forest degradation by making sure these products and related supply chains are ‘deforestation-free’.
The deforestation regulation was adopted in 2023 and establishes rules to ensure that products derived from certain commodities (namely coffee, cocoa, palm oil, soya, cattle, rubber and wood), which are placed on the EU market or exported from the EU, have not caused deforestation or forest degradation during their production, have been produced in accordance with the relevant legislation of the country of production and are covered by a due diligence statement.
The Commission submitted its proposal on postponing the application date of the deforestation regulation in response to concerns raised by member states, third countries, traders and operators that there was a risk that they would not be able to fully comply with the rules by 31 December 2024. Europa
---------
Anderson Tanoto's green blitz raises questions on Royal Golden Eagle's green loans
A Billionaire Family Fueled by Green Debt Faces Deforestation Claims
The Tanotos’ Royal Golden Eagle, which helps make household products from P&G’s Head & Shoulders shampoo to Unilever’s Fudgsicles, denies the allegations while touting its sustainability efforts.
Anderson Tanoto, the scion of an Indonesian billionaire whose vast empire supplies companies from Procter & Gamble Co. to Unilever Plc, has been on a green blitz of late.
He spoke about sustainability at Davos this year, after previously addressing the flagship United Nations’ climate-change conference in Glasgow. He’s helped his family’s timber and palm oil conglomerate forge relationships with global banks to become one of Asia’s biggest borrowers in the green loans market. Bloomberg
---------
British financiers funneled over £1 billion into "forest-risk" companies despite COP26 pledges
UK banks have provided over £1 billion ($1.4bn) to 'forest-risk’ companies since world leaders signed a landmark agreement to end deforestation by the end of the decade at the COP26 climate conference in Glasgow in 2021, a new analysis from Global Witness has found. In addition, UK investors held £1.4 billion ($1.8bn) in bonds and shares issued by these companies as of July 2024.
This research, based on new data from the Forests & Finance coalition produced by Dutch research firm Profundo, tracks financial flows to more than 300 ‘forest-risk’ companies, directly involved in beef, palm oil, soy and other agricultural supply-chains driving most tropical deforestation. Profundo’s methodology, including its criteria for a “forest-risk” company, is summarised in the methodology below.
Despite the UK government's commitment to end deforestation by 2030, British investors remain significant players globally when it comes to investments in ‘forest-risk’ companies. Excluding financial institutions based in tropical forest countries, UK financiers were the third largest investors in shares and bonds issued by ‘forest-risk’ companies in 2024, trailing only the US and Japan.
Our analysis finds that of the top 50 largest UK investors in ‘forest-risk’ companies – who account for 99% of total UK investments held in July this year - the majority still lack public commitments to remove deforestation from their portfolios.
Although 18 of the top 50 shareholders are signatories to the Net Zero Asset Managers’ initiative, just eight have made a clear public commitment to removing deforestation from their portfolios.
Global deforestation and degradation release an estimated eleven percent of greenhouse gas emissions, meaning there is considerable disconnect between "net zero” investors and their lack of deforestation policies.
UK banks also remain significant lenders and underwriters of ‘forest-risk’ companies. British banks provided over £1 billion ($1.4bn) in credit to ‘forest-risk’ companies between January 2022 to June 2024.
UK banks were the 10th largest creditors globally of ‘forest-risk’ companies in this period, and the 7th largest when excluding banks based in tropical forest countries.
This puts the UK and other key financial centres far off track from the goal of the Glasgow Leaders' Declaration, signed by more than 140 nations at COP26, to halt and reverse global deforestation by 2030. Under the declaration, signatories promised to realign financial flows with forest protection. Global Witness
--------
Adani Wilmar ducking and weaving over palm-oil impacts
The Adani Group’s massive palm-oil business receives less scrutiny than its coal and port operations. But it is no less significant. Adani Wilmar, the Group’s joint venture with the world’s largest palm-oil company, is one of India’s largest palm-oil importers, and India is the largest importer of palm oil in the world. Based on a first-ever review of data submitted by the company to an international certifying body, we reveal that just 3% of Adani Wilmar’s palm oil is certified as sustainable. The remaining 97% comes from sources with possibly dubious records regarding human rights, destruction of orangutan habitat, and other ecological impacts.
Incorporated in 1999, Adani Wilmar is a behemoth in Indian kitchens. Its brand, Fortune, consistently ranks as the number-one brand for cooking oils. It also sells rice, sugar, flour and semolina – all staples in Indian households. In this extensive product range, one product stands out for being the biggest and most controversial: palm oil.
Adani Wilmar is one of India’s top importers of palm oil. India is, in turn, the world’s largest importer of palm oil (it produces only a miniscule amount of it). Palm oil serves half of India’s demand for edible oils, and is widely used in restaurants, packaged goods and low-income households. Adani’s partner in the venture is Singapore-based Wilmar International, one of the biggest palm-oil companies in the world. It reports having 3509 sq km of oil-palm plantations in south-east Asia. AdaniWatch
---------
Malaysia approves RM52.9 million for Smallholder Palm Oil Replanting Scheme: Johari
KUALA LUMPUR: The government has approved RM52.9 million in funds under the Smallholder Palm Oil Replanting Financing Incentive Scheme (TSPKS2.0), involving 1,165 palm oil smallholders and 3,378ha as of Oct 14.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said under Budget 2024, the government allocated RM100 million for the scheme, with a targeted replanting area of 5,900ha.
He said as of Oct 14, the ministry received applications from 2,311 smallholders involving 7,699ha.
"Of these, applications from 1,165 smallholders involving 3,378ha and financing of RM52.9 million had been approved.
"The remaining is currently in the approval process," he said.
Johari said this in response to a question from Datuk Mohd Isam Mohd Isa (BN-Tampin), who asked about the number of smallholders that had benefited from the oil palm replanting programme.
Mohd Isam also wanted to know whether the ministry had any plans to extend the initiative to rubber smallholders who wanted to switch to planting oil palm.
Johari said the country's oil palm replanting for smallholders currently stands at 0.2 per cent, which is significantly lower than the standard of four per cent.
Malaysia used to produce about 20 million tonnes of palm oil, but this has now decreased to 18.6 million metric tonnes.
"This is because we have not been carrying out replanting systematically, resulting in only about 0.2 per cent of replanting for smallholders today, compared to the standard we need to achieve, which is four per cent per year," he said.
Johari said he would discuss Mohd Isam's request for the Smallholder Palm Oil Replanting Financing Incentive Scheme (TSPKS 2.0) to be 100 per cent grant-funded, as was practiced by the Barisan Nasional government.
Currently, the scheme consists of a grant component (50 per cent) and a financing component (50 per cent) for individual smallholders. New Straits Times
--------
MSPO CERTIFICATION: A STEP TOWARDS SUSTAINABILITY, IMPACT AND CHALLENGES FOR SMALLHOLDERS
KUALA LUMPUR, Oct 16 (Bernama) -- The Malaysian Sustainable Palm Oil (MSPO) certification scheme has been introduced as an effort to enhance the sustainability of the palm oil industry in Malaysia, but its implementation has also presented various impacts and challenges, especially for smallholders.
MSPO is a national certification scheme introduced for oil palm plantations, smallholders and palm oil processing mills in Malaysia. Smallholders with less than 40.46 hectares (100 acres) of plantation are eligible for free MSPO certification incentives.
The MSPO aims to establish national standards in sustainable palm oil production, focusing on environmentally friendly agricultural practices, social responsibility and sustainable economic management.
In an interview with Bernama, the National Association of Smallholders Malaysia (NASH) highlighted the challenges smallholders face in meeting the certification requirements, as well as the benefits and potential advantages that certification brings, including better pricing opportunities for Malaysian palm oil on the international market.
Main Challenges in MSPO Compliance
NASH president Adzmi Hassan noted that land ownership issues, labour shortages, and rising operational costs are among the primary obstacles preventing smallholders from obtaining MSPO certification.
He explained that the specific land-use requirements have made it difficult for smallholders who grow oil palm on land designated for rubber or rice crops to change the status of their farms.
"The state government imposes penalties on smallholders who violate land-use conditions when they attempt to change the type of crops they grow," he said.
To address this, Adzmi suggested the land-use requirements for MSPO certification should focus only on private ownership of agricultural land, without specifying the type of crops, as agricultural land status alone should suffice for compliance.
Adzmi also identified specific challenges in regions like Sabah and Sarawak, where Native Customary Rights (NCR) land ownership issues remain a major concern, and the regulations vary from state to state.
"In Negeri Sembilan, for instance, customary land regulations do not allow rice fields to be converted into other crops," he noted
Additionally, the labour shortage in remote plantation areas forces smallholders to rely on foreign workers, whose legal status is often unclear due to difficulties in sourcing local labour, he said.
He also pointed out that most smallholders, who are over 60 years old, struggle with the documentation of farm activities, which is required for certification.
"The situation is different for larger estates that have organised management systems in place, making the MSPO certification process easier to handle," he said.
Adzmi expressed strong support for the government's initiative to group smallholders into clusters, allowing them to be managed under a more organised economic system.
"If estate-style management is applied to smallholders, a 'big data' system can be created to track the source of palm oil, allowing consumers to identify smallholder products and potentially pay premium prices," he said.
The Impact of MSPO Compliance on Prices is yet to be felt
Since the implementation of the Malaysian Sustainable Palm Oil (MSPO) certification in 2014, 96 per cent of smallholders have obtained certification, leading to improvements in both the quantity and quality of their production, said Adzmi.
"However, there has not yet been a corresponding rise in premium price offers from buyers. While costs have increased, the expected price benefits have not materialised," he added.
Despite this, he said there remains optimism about the long-term potential of MSPO certification, especially when importing countries begin to offer premium prices for certified products.
"Since smallholders are MSPO-certified, we propose that the export market offer them premium prices and allow direct negotiations with mills on quality and price. We also recommend that palm oil traders obtain MSPO certification," he suggested.
Testimony From Smallholders
One certified smallholder, Mohd Sharul Haizam Shafei, 40, based in Kampung Bukit Changgang, Banting, Selangor shared how MSPO compliance has improved the management and yield of his eight-acre farm.
"In the past, we used pesticides excessively. Now, we are only allowed to spray the lanes, which has resulted in healthier, more productive trees," said Mohd Sharul, who received MSPO certification in 2023.
He noted that adhering to MSPO practices has led to heavier, higher-quality palm fruits, enhancing the competitiveness of smallholders in the market.
"I hope that the government will continue to maintain price stability and offer more incentives for MSPO compliance," he added.
Yahya Khamis, 65, a smallholder from Merlimau, Melaka, has managed his two-acre oil palm plantation for over 15 years but has yet to obtain MSPO certification.
"For people my age, we don’t fully understand MSPO, although I know its importance," Yahya said.
He proposed that the government hold more seminars and informational programmes in rural areas to raise awareness about MSPO and its benefits.
"In my village and nearby areas, there are nearly 20 smallholders who haven’t obtained certification yet," he noted.
Yahya hopes the government will play a more active role in supporting palm oil smallholders like himself.
NASH Initiative to Support Smallholders
Adzmi stated that NASH is implementing various initiatives to assist smallholders, including negotiations with the government to simplify the certification process and offer free MSPO certification.
"We also organise programmes with small palm oil farmers in Peninsular Malaysia, working with agencies such as MPOB, MPOC, and MPOGCF to provide explanations about the criteria for MSPO implementation," he said.
On the technical side, Adzmi said NASH provides training and technical support through instructors directly involved in MSPO certification. It also gathers smallholder concerns to be raised with the ministry or relevant agencies. Bernama
EU deforestation law: Council agrees to extend application timeline
Today, the Council agreed on its position on the targeted amendment of the EU deforestation regulation, postponing its date of application by 12 months.
This postponement will allow third countries, member states, operators and traders to be fully prepared in their due diligence obligations, which is to ensure that certain commodities and products sold in the EU or exported from the EU are deforestation-free. This includes products made from cattle, wood, cocoa, soy, palm oil, coffee, rubber, and some of their derived products.
More time given to better prepare for implementation
The deforestation regulation has already been in force since 29 June 2023 and its provisions are to be applied from 30 December 2024. The Council agreed to the Commission’s proposal to postpone the application date of the regulation by one year, due to the lack of the key elements of the regulation, such as guidance documents to help companies and countries better apply the rules.
Therefore, if agreed by the European Parliament, the obligations stemming from this regulation will be binding from:
30 December 2025, for large operators and traders
30 June 2026, for micro- and small enterprises
This would give legal certainty, predictability and sufficient time for a smooth and effective implementation of the rules, including fully establishing due diligence systems covering all relevant commodities and products. These due diligence systems include identifying deforestation risks in supply chains as well as monitoring and reporting measures to prove compliance with EU rules.
Keeping the deforestation-free objective
The targeted amendment will not affect the substance of the already existing rules, which is to minimise the EU’s contribution to deforestation and forest degradation worldwide, by only allowing placing on the EU market, or exporting from the EU, deforestation-free products. Deforestation-free products are products that have been produced on land not subject to deforestation or forest degradation after 31 December 2020.
Next steps
The Council will now inform the European Parliament of its position in view of the Parliament taking a decision on its position. The aim is to have the regulation formally adopted by both co-legislators and published in the Official Journal of the EU so that it can enter into force by the end of the year.
Background
The main driver of global deforestation and forest degradation is the expansion of agricultural land, which is linked to the production of the commodities included in the scope of the regulation. As the EU is a major consumer of such commodities, it can reduce its contribution to global deforestation and forest degradation by making sure these products and related supply chains are ‘deforestation-free’.
The deforestation regulation was adopted in 2023 and establishes rules to ensure that products derived from certain commodities (namely coffee, cocoa, palm oil, soya, cattle, rubber and wood), which are placed on the EU market or exported from the EU, have not caused deforestation or forest degradation during their production, have been produced in accordance with the relevant legislation of the country of production and are covered by a due diligence statement.
The Commission submitted its proposal on postponing the application date of the deforestation regulation in response to concerns raised by member states, third countries, traders and operators that there was a risk that they would not be able to fully comply with the rules by 31 December 2024. Europa
---------
Anderson Tanoto's green blitz raises questions on Royal Golden Eagle's green loans
A Billionaire Family Fueled by Green Debt Faces Deforestation Claims
The Tanotos’ Royal Golden Eagle, which helps make household products from P&G’s Head & Shoulders shampoo to Unilever’s Fudgsicles, denies the allegations while touting its sustainability efforts.
Anderson Tanoto, the scion of an Indonesian billionaire whose vast empire supplies companies from Procter & Gamble Co. to Unilever Plc, has been on a green blitz of late.
He spoke about sustainability at Davos this year, after previously addressing the flagship United Nations’ climate-change conference in Glasgow. He’s helped his family’s timber and palm oil conglomerate forge relationships with global banks to become one of Asia’s biggest borrowers in the green loans market. Bloomberg
---------
British financiers funneled over £1 billion into "forest-risk" companies despite COP26 pledges
UK banks have provided over £1 billion ($1.4bn) to 'forest-risk’ companies since world leaders signed a landmark agreement to end deforestation by the end of the decade at the COP26 climate conference in Glasgow in 2021, a new analysis from Global Witness has found. In addition, UK investors held £1.4 billion ($1.8bn) in bonds and shares issued by these companies as of July 2024.
This research, based on new data from the Forests & Finance coalition produced by Dutch research firm Profundo, tracks financial flows to more than 300 ‘forest-risk’ companies, directly involved in beef, palm oil, soy and other agricultural supply-chains driving most tropical deforestation. Profundo’s methodology, including its criteria for a “forest-risk” company, is summarised in the methodology below.
Despite the UK government's commitment to end deforestation by 2030, British investors remain significant players globally when it comes to investments in ‘forest-risk’ companies. Excluding financial institutions based in tropical forest countries, UK financiers were the third largest investors in shares and bonds issued by ‘forest-risk’ companies in 2024, trailing only the US and Japan.
Our analysis finds that of the top 50 largest UK investors in ‘forest-risk’ companies – who account for 99% of total UK investments held in July this year - the majority still lack public commitments to remove deforestation from their portfolios.
Although 18 of the top 50 shareholders are signatories to the Net Zero Asset Managers’ initiative, just eight have made a clear public commitment to removing deforestation from their portfolios.
Global deforestation and degradation release an estimated eleven percent of greenhouse gas emissions, meaning there is considerable disconnect between "net zero” investors and their lack of deforestation policies.
UK banks also remain significant lenders and underwriters of ‘forest-risk’ companies. British banks provided over £1 billion ($1.4bn) in credit to ‘forest-risk’ companies between January 2022 to June 2024.
UK banks were the 10th largest creditors globally of ‘forest-risk’ companies in this period, and the 7th largest when excluding banks based in tropical forest countries.
This puts the UK and other key financial centres far off track from the goal of the Glasgow Leaders' Declaration, signed by more than 140 nations at COP26, to halt and reverse global deforestation by 2030. Under the declaration, signatories promised to realign financial flows with forest protection. Global Witness
--------
Adani Wilmar ducking and weaving over palm-oil impacts
The Adani Group’s massive palm-oil business receives less scrutiny than its coal and port operations. But it is no less significant. Adani Wilmar, the Group’s joint venture with the world’s largest palm-oil company, is one of India’s largest palm-oil importers, and India is the largest importer of palm oil in the world. Based on a first-ever review of data submitted by the company to an international certifying body, we reveal that just 3% of Adani Wilmar’s palm oil is certified as sustainable. The remaining 97% comes from sources with possibly dubious records regarding human rights, destruction of orangutan habitat, and other ecological impacts.
Incorporated in 1999, Adani Wilmar is a behemoth in Indian kitchens. Its brand, Fortune, consistently ranks as the number-one brand for cooking oils. It also sells rice, sugar, flour and semolina – all staples in Indian households. In this extensive product range, one product stands out for being the biggest and most controversial: palm oil.
Adani Wilmar is one of India’s top importers of palm oil. India is, in turn, the world’s largest importer of palm oil (it produces only a miniscule amount of it). Palm oil serves half of India’s demand for edible oils, and is widely used in restaurants, packaged goods and low-income households. Adani’s partner in the venture is Singapore-based Wilmar International, one of the biggest palm-oil companies in the world. It reports having 3509 sq km of oil-palm plantations in south-east Asia. AdaniWatch
---------
Malaysia approves RM52.9 million for Smallholder Palm Oil Replanting Scheme: Johari
KUALA LUMPUR: The government has approved RM52.9 million in funds under the Smallholder Palm Oil Replanting Financing Incentive Scheme (TSPKS2.0), involving 1,165 palm oil smallholders and 3,378ha as of Oct 14.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said under Budget 2024, the government allocated RM100 million for the scheme, with a targeted replanting area of 5,900ha.
He said as of Oct 14, the ministry received applications from 2,311 smallholders involving 7,699ha.
"Of these, applications from 1,165 smallholders involving 3,378ha and financing of RM52.9 million had been approved.
"The remaining is currently in the approval process," he said.
Johari said this in response to a question from Datuk Mohd Isam Mohd Isa (BN-Tampin), who asked about the number of smallholders that had benefited from the oil palm replanting programme.
Mohd Isam also wanted to know whether the ministry had any plans to extend the initiative to rubber smallholders who wanted to switch to planting oil palm.
Johari said the country's oil palm replanting for smallholders currently stands at 0.2 per cent, which is significantly lower than the standard of four per cent.
Malaysia used to produce about 20 million tonnes of palm oil, but this has now decreased to 18.6 million metric tonnes.
"This is because we have not been carrying out replanting systematically, resulting in only about 0.2 per cent of replanting for smallholders today, compared to the standard we need to achieve, which is four per cent per year," he said.
Johari said he would discuss Mohd Isam's request for the Smallholder Palm Oil Replanting Financing Incentive Scheme (TSPKS 2.0) to be 100 per cent grant-funded, as was practiced by the Barisan Nasional government.
Currently, the scheme consists of a grant component (50 per cent) and a financing component (50 per cent) for individual smallholders. New Straits Times
--------
MSPO CERTIFICATION: A STEP TOWARDS SUSTAINABILITY, IMPACT AND CHALLENGES FOR SMALLHOLDERS
KUALA LUMPUR, Oct 16 (Bernama) -- The Malaysian Sustainable Palm Oil (MSPO) certification scheme has been introduced as an effort to enhance the sustainability of the palm oil industry in Malaysia, but its implementation has also presented various impacts and challenges, especially for smallholders.
MSPO is a national certification scheme introduced for oil palm plantations, smallholders and palm oil processing mills in Malaysia. Smallholders with less than 40.46 hectares (100 acres) of plantation are eligible for free MSPO certification incentives.
The MSPO aims to establish national standards in sustainable palm oil production, focusing on environmentally friendly agricultural practices, social responsibility and sustainable economic management.
In an interview with Bernama, the National Association of Smallholders Malaysia (NASH) highlighted the challenges smallholders face in meeting the certification requirements, as well as the benefits and potential advantages that certification brings, including better pricing opportunities for Malaysian palm oil on the international market.
Main Challenges in MSPO Compliance
NASH president Adzmi Hassan noted that land ownership issues, labour shortages, and rising operational costs are among the primary obstacles preventing smallholders from obtaining MSPO certification.
He explained that the specific land-use requirements have made it difficult for smallholders who grow oil palm on land designated for rubber or rice crops to change the status of their farms.
"The state government imposes penalties on smallholders who violate land-use conditions when they attempt to change the type of crops they grow," he said.
To address this, Adzmi suggested the land-use requirements for MSPO certification should focus only on private ownership of agricultural land, without specifying the type of crops, as agricultural land status alone should suffice for compliance.
Adzmi also identified specific challenges in regions like Sabah and Sarawak, where Native Customary Rights (NCR) land ownership issues remain a major concern, and the regulations vary from state to state.
"In Negeri Sembilan, for instance, customary land regulations do not allow rice fields to be converted into other crops," he noted
Additionally, the labour shortage in remote plantation areas forces smallholders to rely on foreign workers, whose legal status is often unclear due to difficulties in sourcing local labour, he said.
He also pointed out that most smallholders, who are over 60 years old, struggle with the documentation of farm activities, which is required for certification.
"The situation is different for larger estates that have organised management systems in place, making the MSPO certification process easier to handle," he said.
Adzmi expressed strong support for the government's initiative to group smallholders into clusters, allowing them to be managed under a more organised economic system.
"If estate-style management is applied to smallholders, a 'big data' system can be created to track the source of palm oil, allowing consumers to identify smallholder products and potentially pay premium prices," he said.
The Impact of MSPO Compliance on Prices is yet to be felt
Since the implementation of the Malaysian Sustainable Palm Oil (MSPO) certification in 2014, 96 per cent of smallholders have obtained certification, leading to improvements in both the quantity and quality of their production, said Adzmi.
"However, there has not yet been a corresponding rise in premium price offers from buyers. While costs have increased, the expected price benefits have not materialised," he added.
Despite this, he said there remains optimism about the long-term potential of MSPO certification, especially when importing countries begin to offer premium prices for certified products.
"Since smallholders are MSPO-certified, we propose that the export market offer them premium prices and allow direct negotiations with mills on quality and price. We also recommend that palm oil traders obtain MSPO certification," he suggested.
Testimony From Smallholders
One certified smallholder, Mohd Sharul Haizam Shafei, 40, based in Kampung Bukit Changgang, Banting, Selangor shared how MSPO compliance has improved the management and yield of his eight-acre farm.
"In the past, we used pesticides excessively. Now, we are only allowed to spray the lanes, which has resulted in healthier, more productive trees," said Mohd Sharul, who received MSPO certification in 2023.
He noted that adhering to MSPO practices has led to heavier, higher-quality palm fruits, enhancing the competitiveness of smallholders in the market.
"I hope that the government will continue to maintain price stability and offer more incentives for MSPO compliance," he added.
Yahya Khamis, 65, a smallholder from Merlimau, Melaka, has managed his two-acre oil palm plantation for over 15 years but has yet to obtain MSPO certification.
"For people my age, we don’t fully understand MSPO, although I know its importance," Yahya said.
He proposed that the government hold more seminars and informational programmes in rural areas to raise awareness about MSPO and its benefits.
"In my village and nearby areas, there are nearly 20 smallholders who haven’t obtained certification yet," he noted.
Yahya hopes the government will play a more active role in supporting palm oil smallholders like himself.
NASH Initiative to Support Smallholders
Adzmi stated that NASH is implementing various initiatives to assist smallholders, including negotiations with the government to simplify the certification process and offer free MSPO certification.
"We also organise programmes with small palm oil farmers in Peninsular Malaysia, working with agencies such as MPOB, MPOC, and MPOGCF to provide explanations about the criteria for MSPO implementation," he said.
On the technical side, Adzmi said NASH provides training and technical support through instructors directly involved in MSPO certification. It also gathers smallholder concerns to be raised with the ministry or relevant agencies. Bernama
October 15, 2024
TIMING RIGHT FOR MALAYSIA TO INTRODUCE USED COOKING OIL FUTURES
KUALA LUMPUR, Oct 15 (Bernama) -- It is the perfect time to introduce used cooking oil (UCO) futures in light of the growing emphasis on sustainability in the palm oil industry, according to an industry expert.
IcebergX Sdn Bhd senior proprietary trader David Ng told Bernama that Malaysia’s UCO industry could play an important role in Sustainable Aviation Fuel (SAF) gaining popularity.
In Malaysia, an estimated 540,000 tonnes of waste cooking oil (WCO) from vegetables, mainly palm and animal fats, are discarded yearly without being treated.
WCO is recognised as a raw material for the biodiesel process and has great potential.
“We are slowly seeing wide adoption of UCO as part of biofuel blending requirements.
“Biodiesel blending mandates will greatly influence the UCO market; prices and supply of feedstock, in this case, crude palm oil (CPO), will also determine the availability of UCO in the market,” Ng said.
Malaysia is implementing B20 mandates for the transport sector in certain regions, with the idea of preparing the entire supply chain for B30 to promote renewable energy use, reduce greenhouse gas emissions, and support the local palm oil industry.
Therefore, Ng believes higher biodiesel demand will create greater demand for UCO, pushing UCO prices higher.
“The main price drivers are crude oil and feedstock prices, such as the price of CPO.
“A high oil price environment will greatly incentivise producers to blend more UCO with crude mineral oil. Government policies or mandates for biofuel programs will also be another major price driver,” he stated when asked about factors that could influence UCO futures pricing.
Malaysia, among the main producers of CPO, serves as a benchmark for pricing, playing a crucial role in the global palm oil market.
Its pricing influences international markets and sets standards for trade in palm oil products.
In 2023, Malaysia produced 18.55 million tonnes of CPO, an increase from 18.42 million tonnes in the previous year.
Bursa Malaysia recently confirmed its plan to introduce a new futures contract for used cooking oil, pending industry consultation and regulatory approval.
The move was driven by increasing demand for biofuel feedstock. BERNAMA
--------
The EUDR Hints at the Limits of Market Access as Leverage
The relative decline in the size of the European economy has given exporters less demanding alternatives for the exports.
The EU insists the delay is simply to provide more preparation time, and that it in “no way puts into question the objectives or the substance of the law.” But environmental groups have been critical, saying it “sends the wrong signal to national governments, both within and outside the EU.” Indonesia and Malaysia meanwhile have applauded the decision, although they would still prefer to see the regulation voided entirely rather than merely postponed.
Clearly, the EU believes it has sufficient leverage to convince producers that access the European market and that the increased cost of regulatory compliance is worth it. Europe has wielded market access in this way before. In 2007, Indonesian airlines were denied access to European airspace because of their poor safety record, and this eventually helped drive improvements in the Indonesian aviation industry.
But 2007 was a long time ago, and countries like Indonesia and Malaysia are less receptive to being dictated to these days, especially when it comes to producing and exporting commodities over which they control the majority of global supply. In that light, this latest attempt by the EU to force sustainability standards onto commodity producers by dangling market access as a reward may have been a misjudgement.
For one, the European market for global commodities, while still large, is shrinking relative to growth in demand from other rapidly growing markets. If we go back to 2007, when restrictions were being placed on Indonesian airline carriers, Europe accounted for about 24 percent of global palm oil imports. By 2021, its share of the global market had fallen to 18 percent. Meanwhile, demand has been surging in Africa and India. In fact, India alone now accounts for about the same amount of palm oil imports as Europe.
What this means is that if Indonesian and Malaysian palm oil producers find the cost of compliance is indeed too high or too complicated, there are other markets into which they can sell their products. Although the European market is very large, this relative shift in global economic power somewhat weakens the EU’s ability to wield market access as a bargaining chip in quite the same way as they did fifteen or twenty years ago. When it comes to exports, producing countries simply have more choices now.
Another thing to consider is geopolitics and rising economic nationalism. The European market is large, and exporters would ideally like to access it. But not, perhaps, at any cost. Middle powers like Indonesia and Malaysia are becoming increasingly assertive about their own economic and geopolitical interests these days, especially when it comes to trade.
And they have come to realize that as the primary global suppliers of critical commodities, they can wield as much or more leverage on the supply side as big markets like Europe can wield on the demand side. Indonesia in particular has been very aggressive in recent years about using export bans on critical commodities like nickel.
One lesson this has taught them is that producers have power too, especially if they are willing to accept short-term sacrifices to achieve longer-term goals (like undermining regulatory regimes they find excessively restrictive). Malaysia and Indonesia produce around 85 percent of the world’s palm oil, so the question is who really has the upper hand in this dispute: the producers who control 85 percent of supply, or the market that accounts for 18 percent of demand? Given the EU’s decision to delay implementation by a year, we might be inching closer to an answer. James Guild/ The Diplomat
---------
EU Anti-Deforestation Law Delay: GAPKI Uses Time to Fix People's Palm Oil
JAKARTA – The Indonesian Palm Oil Entrepreneurs Association (GAPKI) is taking advantage of the postponement of the implementation of the European Union Deforestation-Free Regulations (EUDR) to improve the national palm oil ecosystem. This was stated by GAPKI General Chairperson, Eddy Martono, at the 39th Trade Expo Indonesia (TEI) held at ICE BSD, Tangerang, Banten, on Thursday (10/10/2024).
Eddy stated that the delay gives the palm oil industry, especially smallholder palm oil, time to adjust to international regulations. "In preparation for this year, we are trying to fix the palm oil sector so that it can comply with the applicable regulations," said Eddy.
Challenges for Smallholder Palm Oil in Complying with Regulations
One of the obstacles faced is related to smallholder oil palm, which does not yet have a moratorium like large oil palm companies regulated by Presidential Instruction No. 5/2019 concerning the cessation of new permits and improvement of the governance of primary natural forests and peatlands.
Eddy explained that the government, through the national dashboard , is currently recording people's oil palm plantations, including geolocation data. "The government is fighting for people's oil palm to be recorded properly, including with clear geolocation," he said.
However, differences of opinion between Indonesia and the European Commission regarding geolocation access are one of the challenges. Indonesia does not allow the provision of full geolocation data to foreign parties. Eddy suggested that only productive plantation areas or planted areas can be shared, in order to protect national interests.
ISPO Certification and Hopes for the European Union
In addition to geolocation, another problem is that the European Union has not recognized Indonesia's sustainability certifications such as the Indonesian Sustainable Palm Oil (ISPO), Malaysian Sustainable Palm Oil (MSPO), or the Roundtable on Sustainable Palm Oil (RSPO). Eddy hopes that there will be a mutually beneficial meeting point between the two parties.
"We have made ISPO mandatory, and we hope the European Union can accept this certification. There must be mutual understanding and respect for each country's regulations," Eddy added.
Delay of Anti-Deforestation Law and Its Impact
The European Commission announced a delay in the implementation of the EU Anti-Deforestation Law, giving the industry extra time to prepare until December 2025. For small producers, the deadline has been extended to June 30, 2026. The decision was made after hearing input from various parties, including palm oil producing countries such as Indonesia, Brazil and Malaysia, who said the regulation could have a negative impact on small farmers.
While initially hailed as a vital step to combat climate change, the law has been widely criticized as protectionist and could disrupt supply chains and raise prices of goods in the European Union.
The European Commission argued that the delay was necessary to ensure a better and fairer implementation for all parties involved. The delay proposal still needs to be approved by the European Parliament and the Council of the European Union before it can be officially implemented. (*) GAPKI
TIMING RIGHT FOR MALAYSIA TO INTRODUCE USED COOKING OIL FUTURES
KUALA LUMPUR, Oct 15 (Bernama) -- It is the perfect time to introduce used cooking oil (UCO) futures in light of the growing emphasis on sustainability in the palm oil industry, according to an industry expert.
IcebergX Sdn Bhd senior proprietary trader David Ng told Bernama that Malaysia’s UCO industry could play an important role in Sustainable Aviation Fuel (SAF) gaining popularity.
In Malaysia, an estimated 540,000 tonnes of waste cooking oil (WCO) from vegetables, mainly palm and animal fats, are discarded yearly without being treated.
WCO is recognised as a raw material for the biodiesel process and has great potential.
“We are slowly seeing wide adoption of UCO as part of biofuel blending requirements.
“Biodiesel blending mandates will greatly influence the UCO market; prices and supply of feedstock, in this case, crude palm oil (CPO), will also determine the availability of UCO in the market,” Ng said.
Malaysia is implementing B20 mandates for the transport sector in certain regions, with the idea of preparing the entire supply chain for B30 to promote renewable energy use, reduce greenhouse gas emissions, and support the local palm oil industry.
Therefore, Ng believes higher biodiesel demand will create greater demand for UCO, pushing UCO prices higher.
“The main price drivers are crude oil and feedstock prices, such as the price of CPO.
“A high oil price environment will greatly incentivise producers to blend more UCO with crude mineral oil. Government policies or mandates for biofuel programs will also be another major price driver,” he stated when asked about factors that could influence UCO futures pricing.
Malaysia, among the main producers of CPO, serves as a benchmark for pricing, playing a crucial role in the global palm oil market.
Its pricing influences international markets and sets standards for trade in palm oil products.
In 2023, Malaysia produced 18.55 million tonnes of CPO, an increase from 18.42 million tonnes in the previous year.
Bursa Malaysia recently confirmed its plan to introduce a new futures contract for used cooking oil, pending industry consultation and regulatory approval.
The move was driven by increasing demand for biofuel feedstock. BERNAMA
--------
The EUDR Hints at the Limits of Market Access as Leverage
The relative decline in the size of the European economy has given exporters less demanding alternatives for the exports.
The EU insists the delay is simply to provide more preparation time, and that it in “no way puts into question the objectives or the substance of the law.” But environmental groups have been critical, saying it “sends the wrong signal to national governments, both within and outside the EU.” Indonesia and Malaysia meanwhile have applauded the decision, although they would still prefer to see the regulation voided entirely rather than merely postponed.
Clearly, the EU believes it has sufficient leverage to convince producers that access the European market and that the increased cost of regulatory compliance is worth it. Europe has wielded market access in this way before. In 2007, Indonesian airlines were denied access to European airspace because of their poor safety record, and this eventually helped drive improvements in the Indonesian aviation industry.
But 2007 was a long time ago, and countries like Indonesia and Malaysia are less receptive to being dictated to these days, especially when it comes to producing and exporting commodities over which they control the majority of global supply. In that light, this latest attempt by the EU to force sustainability standards onto commodity producers by dangling market access as a reward may have been a misjudgement.
For one, the European market for global commodities, while still large, is shrinking relative to growth in demand from other rapidly growing markets. If we go back to 2007, when restrictions were being placed on Indonesian airline carriers, Europe accounted for about 24 percent of global palm oil imports. By 2021, its share of the global market had fallen to 18 percent. Meanwhile, demand has been surging in Africa and India. In fact, India alone now accounts for about the same amount of palm oil imports as Europe.
What this means is that if Indonesian and Malaysian palm oil producers find the cost of compliance is indeed too high or too complicated, there are other markets into which they can sell their products. Although the European market is very large, this relative shift in global economic power somewhat weakens the EU’s ability to wield market access as a bargaining chip in quite the same way as they did fifteen or twenty years ago. When it comes to exports, producing countries simply have more choices now.
Another thing to consider is geopolitics and rising economic nationalism. The European market is large, and exporters would ideally like to access it. But not, perhaps, at any cost. Middle powers like Indonesia and Malaysia are becoming increasingly assertive about their own economic and geopolitical interests these days, especially when it comes to trade.
And they have come to realize that as the primary global suppliers of critical commodities, they can wield as much or more leverage on the supply side as big markets like Europe can wield on the demand side. Indonesia in particular has been very aggressive in recent years about using export bans on critical commodities like nickel.
One lesson this has taught them is that producers have power too, especially if they are willing to accept short-term sacrifices to achieve longer-term goals (like undermining regulatory regimes they find excessively restrictive). Malaysia and Indonesia produce around 85 percent of the world’s palm oil, so the question is who really has the upper hand in this dispute: the producers who control 85 percent of supply, or the market that accounts for 18 percent of demand? Given the EU’s decision to delay implementation by a year, we might be inching closer to an answer. James Guild/ The Diplomat
---------
EU Anti-Deforestation Law Delay: GAPKI Uses Time to Fix People's Palm Oil
JAKARTA – The Indonesian Palm Oil Entrepreneurs Association (GAPKI) is taking advantage of the postponement of the implementation of the European Union Deforestation-Free Regulations (EUDR) to improve the national palm oil ecosystem. This was stated by GAPKI General Chairperson, Eddy Martono, at the 39th Trade Expo Indonesia (TEI) held at ICE BSD, Tangerang, Banten, on Thursday (10/10/2024).
Eddy stated that the delay gives the palm oil industry, especially smallholder palm oil, time to adjust to international regulations. "In preparation for this year, we are trying to fix the palm oil sector so that it can comply with the applicable regulations," said Eddy.
Challenges for Smallholder Palm Oil in Complying with Regulations
One of the obstacles faced is related to smallholder oil palm, which does not yet have a moratorium like large oil palm companies regulated by Presidential Instruction No. 5/2019 concerning the cessation of new permits and improvement of the governance of primary natural forests and peatlands.
Eddy explained that the government, through the national dashboard , is currently recording people's oil palm plantations, including geolocation data. "The government is fighting for people's oil palm to be recorded properly, including with clear geolocation," he said.
However, differences of opinion between Indonesia and the European Commission regarding geolocation access are one of the challenges. Indonesia does not allow the provision of full geolocation data to foreign parties. Eddy suggested that only productive plantation areas or planted areas can be shared, in order to protect national interests.
ISPO Certification and Hopes for the European Union
In addition to geolocation, another problem is that the European Union has not recognized Indonesia's sustainability certifications such as the Indonesian Sustainable Palm Oil (ISPO), Malaysian Sustainable Palm Oil (MSPO), or the Roundtable on Sustainable Palm Oil (RSPO). Eddy hopes that there will be a mutually beneficial meeting point between the two parties.
"We have made ISPO mandatory, and we hope the European Union can accept this certification. There must be mutual understanding and respect for each country's regulations," Eddy added.
Delay of Anti-Deforestation Law and Its Impact
The European Commission announced a delay in the implementation of the EU Anti-Deforestation Law, giving the industry extra time to prepare until December 2025. For small producers, the deadline has been extended to June 30, 2026. The decision was made after hearing input from various parties, including palm oil producing countries such as Indonesia, Brazil and Malaysia, who said the regulation could have a negative impact on small farmers.
While initially hailed as a vital step to combat climate change, the law has been widely criticized as protectionist and could disrupt supply chains and raise prices of goods in the European Union.
The European Commission argued that the delay was necessary to ensure a better and fairer implementation for all parties involved. The delay proposal still needs to be approved by the European Parliament and the Council of the European Union before it can be officially implemented. (*) GAPKI
October 14, 2024
Delayed deforestation rule unlikely to break IEU-CEPA stalemate
Delaying the implementation of the European Union’s deforestation-free rule for imported products may provide more time for negotiations between Indonesia and the EU on a free trade agreement but will do little to bridge the remaining divides between the two parties, analysts say.
The proposed Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA) has yet to be agreed upon, despite commitments from President Joko “Jokowi” Widodo and European Commission President Ursula von der Leyen to finish negotiations.
“Delaying the regulation would definitely solve one issue, but there’s still much more to talk about,” Chris Humphrey, executive director of the EU-ASEAN Business Council (EU-ABC), told The Jakarta Post on Oct. 8.
“Indonesia’s key demand is getting palm oil market access to the EU, so the delay eases some of their concerns, but it’s by no means certain that will be enough to seal the deal,” he continued. The Jakarta Post
---------
How palm oil is driving progress in sustainability in Malaysia
The Malaysian palm oil industry is undergoing a transformative journey towards sustainability. Having faced criticism in the past, the sector has been making great strides in prioritising environmental, social and governance (ESG) factors through a range of pioneering initiatives that go beyond regulatory compliance.
Malaysia’s approach to EUDR compliance
With the European Union Deforestation Regulation (EUDR) deadline just months away, the Malaysian Palm Oil Council (MPOC) is focused on ensuring Malaysia is recognised as a “low-risk” country under the new law’s country benchmarking assessment. Reports from the FAO Forest Resource Assessment 2020 and the World Resources Institute’s 2023 report demonstrate a positive trend, with Malaysia’s deforestation rates declining and forest areas expanding since 2010. Meanwhile, Global Forest Watch (GFW) has hailed Malaysia as a “success story”, stating, “Palm oil is no longer a driver of deforestation”.
All this underscores the effectiveness of existing measures such as the nationally mandated and independently audited Malaysian Sustainable Palm Oil (MSPO) certification scheme. At the same time, MPOC has been instrumental in driving industry-wide sustainability efforts, by engaging in dialogue with stakeholders, while expanding market access and recognition of the MSPO. As a result, Malaysia is emerging as a global leader in efforts to combat deforestation, demonstrating that the concerted efforts of government, industry and other stakeholders are effective.
Recognising the significant role of smallholders, the country is advocating for an exemption for its oil palm farmers from the EUDR’s stringent requirements, thus protecting their livelihoods while supporting them in the adoption of sustainable practices. In addition, Malaysia collaborates with other palm-oil-producing nations to bolster its negotiating position with the EU.
Industry stakeholders are pushing for a transitional period to adapt to the EUDR’s requirements. A webinar jointly organised by MPOC and the European Forest Institute (EFI) highlighted the need for clearer EU guidance. EFI technical expert Dr Josil Murray outlined Malaysia’s progress in enhancing the MSPO certification scheme, including refined deforestation-related definitions and improved traceability. Meanwhile, Henriette Faergemann from the EU delegation to Indonesia and Brunei Darussalam reaffirmed the bloc’s endorsement of the MSPO as a valuable due diligence tool.
Sustainably produced palm oil has brought economic prosperity to millions of Malaysians
The Malaysian palm oil industry is undergoing a transformative journey towards sustainability. Having faced criticism in the past, the sector has been making great strides in prioritising environmental, social and governance (ESG) factors through a range of pioneering initiatives that go beyond regulatory compliance.
Malaysia’s approach to EUDR compliance
With the European Union Deforestation Regulation (EUDR) deadline just months away, the Malaysian Palm Oil Council (MPOC) is focused on ensuring Malaysia is recognised as a “low-risk” country under the new law’s country benchmarking assessment. Reports from the FAO Forest Resource Assessment 2020 and the World Resources Institute’s 2023 report demonstrate a positive trend, with Malaysia’s deforestation rates declining and forest areas expanding since 2010. Meanwhile, Global Forest Watch (GFW) has hailed Malaysia as a “success story”, stating, “Palm oil is no longer a driver of deforestation”.
All this underscores the effectiveness of existing measures such as the nationally mandated and independently audited Malaysian Sustainable Palm Oil (MSPO) certification scheme. At the same time, MPOC has been instrumental in driving industry-wide sustainability efforts, by engaging in dialogue with stakeholders, while expanding market access and recognition of the MSPO. As a result, Malaysia is emerging as a global leader in efforts to combat deforestation, demonstrating that the concerted efforts of government, industry and other stakeholders are effective.
Recognising the significant role of smallholders, the country is advocating for an exemption for its oil palm farmers from the EUDR’s stringent requirements, thus protecting their livelihoods while supporting them in the adoption of sustainable practices. In addition, Malaysia collaborates with other palm-oil-producing nations to bolster its negotiating position with the EU.
Industry stakeholders are pushing for a transitional period to adapt to the EUDR’s requirements. A webinar jointly organised by MPOC and the European Forest Institute (EFI) highlighted the need for clearer EU guidance. EFI technical expert Dr Josil Murray outlined Malaysia’s progress in enhancing the MSPO certification scheme, including refined deforestation-related definitions and improved traceability. Meanwhile, Henriette Faergemann from the EU delegation to Indonesia and Brunei Darussalam reaffirmed the bloc’s endorsement of the MSPO as a valuable due diligence tool.
It is the industry’s hope that the EU will acknowledge the MSPO as a pathway towards meeting the EUDR requirements. After all, the Trade and Agriculture Commission (TAC), an expert advisory group to the UK government, has issued an official report concluding that Malaysian palm oil is sustainable and that a zero-tariff rate for Malaysian palm oil would be beneficial, news that has undoubtedly been received well by stakeholders in the sustainable Malaysian palm oil industry. In the report, TAC experts assessed that “Malaysia operates a mandatory deforestation-free standard [MSPO]”, and so, “there is a low risk that Malaysian palm oil exported to the UK would come from land that was deforested”.
Balancing economic growth with ESG stewardship
Thanks to its commitment to sustainability, Malaysia has become the preferred producer of the vegetable oil. It contributes 23% of the world’s palm oil production and 30% of total palm oil exports. The sector is a significant pillar of the Malaysian economy,generating a staggering RM105 billion in export earnings last year. Its impact is far-reaching, creating jobs and supporting the livelihoods of millions of Malaysians, particularly in rural areas.
To nurture future palm oil industry leaders and promote awareness of the sector’s economic contributions and sustainability efforts, there are also initiatives such as MPOC’s Edupalm Programme, which offers students and educators educational field trips and interactive learning experiences. The Edge Malaysia
--------
Minister for Transport Eamon Ryan to raise concerns over EU biofuel imports
The Minister for Transport is to call on the European Commission to examine imports of biofuels from outside the European Union as concerns grow about sustainability.
Eamon Ryan will make the call at the EU's Energy Council this week, saying concerted action is needed amid growing concern particularly about biofuels produced from palm oil waste products.
Fuels like Hydrotreated Vegetable Oil (HVO) have been presented as a green alternative to fossil fuels like diesel or kerosene with supporters claiming it offers emission reductions of up to 90%.
HVO can be used in most diesel engines and several fuel station companies have started rolling out HVO pumps on their forecourts and are promising more.
The fuel is also being used by both semi-state and private companies as a way to meet their sustainability obligations and reduce emissions.
HVO can be made with materials like used cooking oil or by-products of food production which could otherwise go to waste.
But there are growing concerns that there are not enough of these materials and growing demand for biofuels means unsustainable ingredients like palm oil are being used.
Experts in this area have been expressing concern for some time. RTE
Delayed deforestation rule unlikely to break IEU-CEPA stalemate
Delaying the implementation of the European Union’s deforestation-free rule for imported products may provide more time for negotiations between Indonesia and the EU on a free trade agreement but will do little to bridge the remaining divides between the two parties, analysts say.
The proposed Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA) has yet to be agreed upon, despite commitments from President Joko “Jokowi” Widodo and European Commission President Ursula von der Leyen to finish negotiations.
“Delaying the regulation would definitely solve one issue, but there’s still much more to talk about,” Chris Humphrey, executive director of the EU-ASEAN Business Council (EU-ABC), told The Jakarta Post on Oct. 8.
“Indonesia’s key demand is getting palm oil market access to the EU, so the delay eases some of their concerns, but it’s by no means certain that will be enough to seal the deal,” he continued. The Jakarta Post
---------
How palm oil is driving progress in sustainability in Malaysia
The Malaysian palm oil industry is undergoing a transformative journey towards sustainability. Having faced criticism in the past, the sector has been making great strides in prioritising environmental, social and governance (ESG) factors through a range of pioneering initiatives that go beyond regulatory compliance.
Malaysia’s approach to EUDR compliance
With the European Union Deforestation Regulation (EUDR) deadline just months away, the Malaysian Palm Oil Council (MPOC) is focused on ensuring Malaysia is recognised as a “low-risk” country under the new law’s country benchmarking assessment. Reports from the FAO Forest Resource Assessment 2020 and the World Resources Institute’s 2023 report demonstrate a positive trend, with Malaysia’s deforestation rates declining and forest areas expanding since 2010. Meanwhile, Global Forest Watch (GFW) has hailed Malaysia as a “success story”, stating, “Palm oil is no longer a driver of deforestation”.
All this underscores the effectiveness of existing measures such as the nationally mandated and independently audited Malaysian Sustainable Palm Oil (MSPO) certification scheme. At the same time, MPOC has been instrumental in driving industry-wide sustainability efforts, by engaging in dialogue with stakeholders, while expanding market access and recognition of the MSPO. As a result, Malaysia is emerging as a global leader in efforts to combat deforestation, demonstrating that the concerted efforts of government, industry and other stakeholders are effective.
Recognising the significant role of smallholders, the country is advocating for an exemption for its oil palm farmers from the EUDR’s stringent requirements, thus protecting their livelihoods while supporting them in the adoption of sustainable practices. In addition, Malaysia collaborates with other palm-oil-producing nations to bolster its negotiating position with the EU.
Industry stakeholders are pushing for a transitional period to adapt to the EUDR’s requirements. A webinar jointly organised by MPOC and the European Forest Institute (EFI) highlighted the need for clearer EU guidance. EFI technical expert Dr Josil Murray outlined Malaysia’s progress in enhancing the MSPO certification scheme, including refined deforestation-related definitions and improved traceability. Meanwhile, Henriette Faergemann from the EU delegation to Indonesia and Brunei Darussalam reaffirmed the bloc’s endorsement of the MSPO as a valuable due diligence tool.
Sustainably produced palm oil has brought economic prosperity to millions of Malaysians
The Malaysian palm oil industry is undergoing a transformative journey towards sustainability. Having faced criticism in the past, the sector has been making great strides in prioritising environmental, social and governance (ESG) factors through a range of pioneering initiatives that go beyond regulatory compliance.
Malaysia’s approach to EUDR compliance
With the European Union Deforestation Regulation (EUDR) deadline just months away, the Malaysian Palm Oil Council (MPOC) is focused on ensuring Malaysia is recognised as a “low-risk” country under the new law’s country benchmarking assessment. Reports from the FAO Forest Resource Assessment 2020 and the World Resources Institute’s 2023 report demonstrate a positive trend, with Malaysia’s deforestation rates declining and forest areas expanding since 2010. Meanwhile, Global Forest Watch (GFW) has hailed Malaysia as a “success story”, stating, “Palm oil is no longer a driver of deforestation”.
All this underscores the effectiveness of existing measures such as the nationally mandated and independently audited Malaysian Sustainable Palm Oil (MSPO) certification scheme. At the same time, MPOC has been instrumental in driving industry-wide sustainability efforts, by engaging in dialogue with stakeholders, while expanding market access and recognition of the MSPO. As a result, Malaysia is emerging as a global leader in efforts to combat deforestation, demonstrating that the concerted efforts of government, industry and other stakeholders are effective.
Recognising the significant role of smallholders, the country is advocating for an exemption for its oil palm farmers from the EUDR’s stringent requirements, thus protecting their livelihoods while supporting them in the adoption of sustainable practices. In addition, Malaysia collaborates with other palm-oil-producing nations to bolster its negotiating position with the EU.
Industry stakeholders are pushing for a transitional period to adapt to the EUDR’s requirements. A webinar jointly organised by MPOC and the European Forest Institute (EFI) highlighted the need for clearer EU guidance. EFI technical expert Dr Josil Murray outlined Malaysia’s progress in enhancing the MSPO certification scheme, including refined deforestation-related definitions and improved traceability. Meanwhile, Henriette Faergemann from the EU delegation to Indonesia and Brunei Darussalam reaffirmed the bloc’s endorsement of the MSPO as a valuable due diligence tool.
It is the industry’s hope that the EU will acknowledge the MSPO as a pathway towards meeting the EUDR requirements. After all, the Trade and Agriculture Commission (TAC), an expert advisory group to the UK government, has issued an official report concluding that Malaysian palm oil is sustainable and that a zero-tariff rate for Malaysian palm oil would be beneficial, news that has undoubtedly been received well by stakeholders in the sustainable Malaysian palm oil industry. In the report, TAC experts assessed that “Malaysia operates a mandatory deforestation-free standard [MSPO]”, and so, “there is a low risk that Malaysian palm oil exported to the UK would come from land that was deforested”.
Balancing economic growth with ESG stewardship
Thanks to its commitment to sustainability, Malaysia has become the preferred producer of the vegetable oil. It contributes 23% of the world’s palm oil production and 30% of total palm oil exports. The sector is a significant pillar of the Malaysian economy,generating a staggering RM105 billion in export earnings last year. Its impact is far-reaching, creating jobs and supporting the livelihoods of millions of Malaysians, particularly in rural areas.
To nurture future palm oil industry leaders and promote awareness of the sector’s economic contributions and sustainability efforts, there are also initiatives such as MPOC’s Edupalm Programme, which offers students and educators educational field trips and interactive learning experiences. The Edge Malaysia
--------
Minister for Transport Eamon Ryan to raise concerns over EU biofuel imports
The Minister for Transport is to call on the European Commission to examine imports of biofuels from outside the European Union as concerns grow about sustainability.
Eamon Ryan will make the call at the EU's Energy Council this week, saying concerted action is needed amid growing concern particularly about biofuels produced from palm oil waste products.
Fuels like Hydrotreated Vegetable Oil (HVO) have been presented as a green alternative to fossil fuels like diesel or kerosene with supporters claiming it offers emission reductions of up to 90%.
HVO can be used in most diesel engines and several fuel station companies have started rolling out HVO pumps on their forecourts and are promising more.
The fuel is also being used by both semi-state and private companies as a way to meet their sustainability obligations and reduce emissions.
HVO can be made with materials like used cooking oil or by-products of food production which could otherwise go to waste.
But there are growing concerns that there are not enough of these materials and growing demand for biofuels means unsustainable ingredients like palm oil are being used.
Experts in this area have been expressing concern for some time. RTE
October 13, 2024
The delay to EU deforestation rules must help people transition
Jack Hurd
When the European Commission recently proposed a 12-month delay to its flagship deforestation regulation, the news was contested and praised in equal measure.
Known as the European Union Deforestation Regulation, or EUDR, the rules would exclude from the EU market products linked to deforestation. This might include cacao from West Africa, palm oil from Indonesia, natural rubber from China, or coffee from the Amazon basin which fuels the workday across Europe.
The fundamental problem that the EUDR is trying to solve is uncontested: land use change - often associated with agricultural expansion - represents about 23% of global carbon dioxide emissions and is a major driver of deforestation and biodiversity loss. Something must change in the way that we produce and trade agricultural commodities.
The debate over the EUDR is important because government policy has the potential to help farmers and the broader agricultural sector adapt to greener practices free of deforestation - much like the “just transition” in helping fossil fuel workers and communities prepare for a cleaner future.
If done correctly, public policy can incentivise private sector investment to support this transition. “Demand-side” regulations like the EUDR can build consumer confidence in the sustainability and legality of commodities entering the market.
They are also critical to move us to a world beyond voluntary action and into mandatory compliance, providing a level playing field for all companies involved in commodity production and trade.
But if done incorrectly, or in isolation, the rules could just change where commodities end up. Market segmentation could occur where commodities which easily comply are sent to the EU, and those harder to comply are sent elsewhere without similar regulations. Context
--------
Navigating the Uncertainty of Indonesia’s Foreign Policy under Prabowo Subianto
The election of Prabowo Subianto as Indonesia's next president marks a significant turning point in the country's foreign policy.
Gabriel Langoday
The election of Prabowo Subianto as Indonesia’s next president marks a significant turning point in the country’s foreign policy. With a nationalist and militaristic background, Prabowo is expected to present a personalized diplomacy in contrast to President Joko Widodo’s approach. During his tenure as Minister of Defense in President Jokowi’s cabinet, Prabowo demonstrated his direct involvement in various international issues, such as his strong criticism of the West over palm oil export restrictions and the peace proposal he put forward for the Russia-Ukraine war. Prabowo’s victory in the 2024 election has attracted international attention, sparking much speculation about how his leadership will impact Indonesia’s diplomatic posture amidst rising global tensions.
Current Foreign Policy Landscape
President Jokowi’s leadership has shaped Indonesia’s foreign policy with a character defined by pragmatism, prioritizing domestic issues such as economic development and infrastructure over international relations. Relying more on his cabinet members for foreign affairs, Jokowi preferred a less prominent approach when dealing with complex international issues. Although he actively participated in international forums like ASEAN, Jokowi primarily focused on economic diplomacy, which was built through trade relations and economic cooperation.
Despite this inward focus, Jokowi’s leadership faced rising geopolitical tensions. However, his administration tended to avoid bold decisions. One example is Jokowi’s hesitation and reluctance regarding the South China Sea conflict, where China’s territorial claims overlap with those of ASEAN countries, including Indonesia in the Natuna Sea. As a member of ASEAN, Indonesia sought to secure its economic interests with China while balancing its regional commitments. This cautious stance was also evident in Jokowi’s efforts to maintain neutrality amid the rivalry between the United States and Russia. Although considered successful in fostering economic growth and aligned with Indonesia’s free and active principles, many critics argue that under Jokowi’s leadership, Indonesia has been “punching below its weight” in regional and international affairs.
Potential Policy Shifts
Prabowo’s leadership, set to begin in October, is predicted to bring a more assertive and strategic approach in addressing global dynamics. Prabowo seems ambitious about strengthening Indonesia’s position through direct engagement at the leadership level, rather than relying on institutional approaches. His diplomatic style is believed to have the potential to enhance Indonesia’s role on the international stage, particularly with the direct involvement of the leader in key issues. However, this approach also raises concerns and criticisms. Diplomacy dominated by individual leadership tends to create uncertainty, which could undermine the effectiveness of policies. In facing global challenges, Prabowo’s personalized approach may negatively impact the progress of Indonesia’s diplomatic relations if it neglects the institutional structures that are essential for maintaining the consistency of Indonesia’s foreign policy.
A concrete example of these concerns emerged when Prabowo proposed a peace plan for the Russia-Ukraine war by suggesting the establishment of a demilitarized zone (DMZ) 15 km from the disputed areas. Prabowo’s proposal, presented at the 2023 Shangri-La Dialogue, sparked outrage from various parties, as it was an addition that had not been consulted with the Ministry of Foreign Affairs or policy experts beforehand. Prabowo’s peace proposal was inconsistent with Indonesia’s principle of non-alignment. By proposing the creation of a DMZ, Prabowo indirectly legitimized Russia’s occupation of Ukrainian territory. Indonesia’s attempt to maintain balanced relations with both the U.S. and Russia has now raised questions about its credibility as a neutral actor, given that the peace proposal appeared to favor Russia’s interests.
Prabowo’s involvement is not limited to diplomacy. On April 26, The Economist published an article written by Prabowo titled “Indonesia’s president-elect accuses the West of double standards.” In the article, Prabowo sharply criticized the West for what he sees as a double standard in handling the Russia-Ukraine and Israel-Palestine conflicts. He pointed out the disparity in treatment, highlighting how the suffering of Palestinian victims is often overlooked, while the victims of the war in Ukraine seem to receive more attention from Western countries. As the president-elect, Prabowo’s critique signals a significant shift in Indonesia’s foreign policy direction. However, the question remains: Does Prabowo’s strong stance suggest a bias in his future policies?
To address this question, Dr. Dafri Agus Salim, an expert in International Relations, explained that from Prabowo’s list of visits, he appears to show more interest in building relationships with Eastern countries. Prabowo’s visits to Turkey, China, and Russia indicate a potential focus on creating opportunities for Indonesia in trade and economic cooperation. On one hand, Dafri views this as an effort by Prabowo to position Indonesia as an actor capable of mobilizing Eastern powers. This shift in political orientation, which seems to lean toward the East, will likely have a significant impact on Indonesia’s relations with Western countries that hold opposing interests. By strengthening its ties with Eastern powers, Indonesia aims to enhance its position in the face of pressure from the West, which often undermines Indonesia’s standing and interests.
Uncertainties and Speculations
The uncertainty surrounding Prabowo’s foreign policy direction has raised concerns both domestically and internationally. Prabowo’s assertive preferences and his tendency to make unilateral decisions without consulting his advisors, as seen in his Russia-Ukraine peace proposal, have sparked worries about how he will handle complex international issues that require careful diplomacy and multilateral cooperation. Often overlooking his role as Indonesia’s representative on the global stage, Prabowo tends to issue statements based on inconsistent personal paradigms, which could affect his leadership, particularly in navigating global challenges.
Prabowo’s growing alignment with Eastern powers is likely to prompt careful reactions from major players like the United States. As one of the world’s largest democracies, Indonesia has traditionally played a key role as a stabilizer, consistently promoting consensus-building and peaceful conflict resolution. However, Prabowo is expected to take a more aggressive and assertive stance, which could complicate Indonesia’s relationships with other nations.
Facing increasing global pressure, Prabowo’s foreign policy will be shaped by a delicate balance between national interests, regional stability, and global expectations. His leadership style, marked by personal involvement and bold initiatives, has the potential to elevate Indonesia’s role on the global stage, but it also risks creating instability in its foreign relations.
Policy Recommendations
Given the uncertainty surrounding Indonesia’s foreign policy direction and the emerging geopolitical challenges, it is crucial for Indonesia to maintain a strong institutional framework in foreign policy decision-making. Strengthening the role of the Ministry of Foreign Affairs and other diplomatic institutions will be essential in preserving Indonesia’s credibility and consistency in international relations. By balancing Prabowo’s assertive leadership style with institutional diplomacy, Indonesia can ensure that personal leadership does not overshadow long-term national interests. Prabowo’s direct involvement in international issues can undoubtedly enhance Indonesia’s influence at both the global and regional levels, but it should be aligned with institutional processes to safeguard the country’s strategic objectives. Modern Diplomacy
--------
AmphiStar has launched what it claims are the first fully upcycled biobased surfactants under the trade names AmphiCare and AmphiClean.
These are produced “using clean biological conversion processes and derived from local, organic biowaste and side streams from agri-food processing”.
Organic biowaste and side streams from agri-food processing are great for renewable energy but the question is whether consumers would buy into a skin care product that is produced from these wastes. Specialty Chemicals
The delay to EU deforestation rules must help people transition
Jack Hurd
When the European Commission recently proposed a 12-month delay to its flagship deforestation regulation, the news was contested and praised in equal measure.
Known as the European Union Deforestation Regulation, or EUDR, the rules would exclude from the EU market products linked to deforestation. This might include cacao from West Africa, palm oil from Indonesia, natural rubber from China, or coffee from the Amazon basin which fuels the workday across Europe.
The fundamental problem that the EUDR is trying to solve is uncontested: land use change - often associated with agricultural expansion - represents about 23% of global carbon dioxide emissions and is a major driver of deforestation and biodiversity loss. Something must change in the way that we produce and trade agricultural commodities.
The debate over the EUDR is important because government policy has the potential to help farmers and the broader agricultural sector adapt to greener practices free of deforestation - much like the “just transition” in helping fossil fuel workers and communities prepare for a cleaner future.
If done correctly, public policy can incentivise private sector investment to support this transition. “Demand-side” regulations like the EUDR can build consumer confidence in the sustainability and legality of commodities entering the market.
They are also critical to move us to a world beyond voluntary action and into mandatory compliance, providing a level playing field for all companies involved in commodity production and trade.
But if done incorrectly, or in isolation, the rules could just change where commodities end up. Market segmentation could occur where commodities which easily comply are sent to the EU, and those harder to comply are sent elsewhere without similar regulations. Context
--------
Navigating the Uncertainty of Indonesia’s Foreign Policy under Prabowo Subianto
The election of Prabowo Subianto as Indonesia's next president marks a significant turning point in the country's foreign policy.
Gabriel Langoday
The election of Prabowo Subianto as Indonesia’s next president marks a significant turning point in the country’s foreign policy. With a nationalist and militaristic background, Prabowo is expected to present a personalized diplomacy in contrast to President Joko Widodo’s approach. During his tenure as Minister of Defense in President Jokowi’s cabinet, Prabowo demonstrated his direct involvement in various international issues, such as his strong criticism of the West over palm oil export restrictions and the peace proposal he put forward for the Russia-Ukraine war. Prabowo’s victory in the 2024 election has attracted international attention, sparking much speculation about how his leadership will impact Indonesia’s diplomatic posture amidst rising global tensions.
Current Foreign Policy Landscape
President Jokowi’s leadership has shaped Indonesia’s foreign policy with a character defined by pragmatism, prioritizing domestic issues such as economic development and infrastructure over international relations. Relying more on his cabinet members for foreign affairs, Jokowi preferred a less prominent approach when dealing with complex international issues. Although he actively participated in international forums like ASEAN, Jokowi primarily focused on economic diplomacy, which was built through trade relations and economic cooperation.
Despite this inward focus, Jokowi’s leadership faced rising geopolitical tensions. However, his administration tended to avoid bold decisions. One example is Jokowi’s hesitation and reluctance regarding the South China Sea conflict, where China’s territorial claims overlap with those of ASEAN countries, including Indonesia in the Natuna Sea. As a member of ASEAN, Indonesia sought to secure its economic interests with China while balancing its regional commitments. This cautious stance was also evident in Jokowi’s efforts to maintain neutrality amid the rivalry between the United States and Russia. Although considered successful in fostering economic growth and aligned with Indonesia’s free and active principles, many critics argue that under Jokowi’s leadership, Indonesia has been “punching below its weight” in regional and international affairs.
Potential Policy Shifts
Prabowo’s leadership, set to begin in October, is predicted to bring a more assertive and strategic approach in addressing global dynamics. Prabowo seems ambitious about strengthening Indonesia’s position through direct engagement at the leadership level, rather than relying on institutional approaches. His diplomatic style is believed to have the potential to enhance Indonesia’s role on the international stage, particularly with the direct involvement of the leader in key issues. However, this approach also raises concerns and criticisms. Diplomacy dominated by individual leadership tends to create uncertainty, which could undermine the effectiveness of policies. In facing global challenges, Prabowo’s personalized approach may negatively impact the progress of Indonesia’s diplomatic relations if it neglects the institutional structures that are essential for maintaining the consistency of Indonesia’s foreign policy.
A concrete example of these concerns emerged when Prabowo proposed a peace plan for the Russia-Ukraine war by suggesting the establishment of a demilitarized zone (DMZ) 15 km from the disputed areas. Prabowo’s proposal, presented at the 2023 Shangri-La Dialogue, sparked outrage from various parties, as it was an addition that had not been consulted with the Ministry of Foreign Affairs or policy experts beforehand. Prabowo’s peace proposal was inconsistent with Indonesia’s principle of non-alignment. By proposing the creation of a DMZ, Prabowo indirectly legitimized Russia’s occupation of Ukrainian territory. Indonesia’s attempt to maintain balanced relations with both the U.S. and Russia has now raised questions about its credibility as a neutral actor, given that the peace proposal appeared to favor Russia’s interests.
Prabowo’s involvement is not limited to diplomacy. On April 26, The Economist published an article written by Prabowo titled “Indonesia’s president-elect accuses the West of double standards.” In the article, Prabowo sharply criticized the West for what he sees as a double standard in handling the Russia-Ukraine and Israel-Palestine conflicts. He pointed out the disparity in treatment, highlighting how the suffering of Palestinian victims is often overlooked, while the victims of the war in Ukraine seem to receive more attention from Western countries. As the president-elect, Prabowo’s critique signals a significant shift in Indonesia’s foreign policy direction. However, the question remains: Does Prabowo’s strong stance suggest a bias in his future policies?
To address this question, Dr. Dafri Agus Salim, an expert in International Relations, explained that from Prabowo’s list of visits, he appears to show more interest in building relationships with Eastern countries. Prabowo’s visits to Turkey, China, and Russia indicate a potential focus on creating opportunities for Indonesia in trade and economic cooperation. On one hand, Dafri views this as an effort by Prabowo to position Indonesia as an actor capable of mobilizing Eastern powers. This shift in political orientation, which seems to lean toward the East, will likely have a significant impact on Indonesia’s relations with Western countries that hold opposing interests. By strengthening its ties with Eastern powers, Indonesia aims to enhance its position in the face of pressure from the West, which often undermines Indonesia’s standing and interests.
Uncertainties and Speculations
The uncertainty surrounding Prabowo’s foreign policy direction has raised concerns both domestically and internationally. Prabowo’s assertive preferences and his tendency to make unilateral decisions without consulting his advisors, as seen in his Russia-Ukraine peace proposal, have sparked worries about how he will handle complex international issues that require careful diplomacy and multilateral cooperation. Often overlooking his role as Indonesia’s representative on the global stage, Prabowo tends to issue statements based on inconsistent personal paradigms, which could affect his leadership, particularly in navigating global challenges.
Prabowo’s growing alignment with Eastern powers is likely to prompt careful reactions from major players like the United States. As one of the world’s largest democracies, Indonesia has traditionally played a key role as a stabilizer, consistently promoting consensus-building and peaceful conflict resolution. However, Prabowo is expected to take a more aggressive and assertive stance, which could complicate Indonesia’s relationships with other nations.
Facing increasing global pressure, Prabowo’s foreign policy will be shaped by a delicate balance between national interests, regional stability, and global expectations. His leadership style, marked by personal involvement and bold initiatives, has the potential to elevate Indonesia’s role on the global stage, but it also risks creating instability in its foreign relations.
Policy Recommendations
Given the uncertainty surrounding Indonesia’s foreign policy direction and the emerging geopolitical challenges, it is crucial for Indonesia to maintain a strong institutional framework in foreign policy decision-making. Strengthening the role of the Ministry of Foreign Affairs and other diplomatic institutions will be essential in preserving Indonesia’s credibility and consistency in international relations. By balancing Prabowo’s assertive leadership style with institutional diplomacy, Indonesia can ensure that personal leadership does not overshadow long-term national interests. Prabowo’s direct involvement in international issues can undoubtedly enhance Indonesia’s influence at both the global and regional levels, but it should be aligned with institutional processes to safeguard the country’s strategic objectives. Modern Diplomacy
--------
AmphiStar has launched what it claims are the first fully upcycled biobased surfactants under the trade names AmphiCare and AmphiClean.
These are produced “using clean biological conversion processes and derived from local, organic biowaste and side streams from agri-food processing”.
Organic biowaste and side streams from agri-food processing are great for renewable energy but the question is whether consumers would buy into a skin care product that is produced from these wastes. Specialty Chemicals
October 12, 2024
What's really in your tank? Ireland to raise concerns about fraudulent biofuel with EU ministers
The government will raise concern over palm oil waste-based biofuel, as its use here soars.
THE GOVERNMENT WILL raise fears that fraudulent imported biofuel could be passed off as sustainable fuel at a meeting of EU energy ministers next week.
Hundreds of millions of litres of biofuel are used in Ireland but there is a risk that some may not be what is claimed.
As reported by The Journal last month, a 24% increase in biofuel use in Ireland last year was largely met with an additional 54 million litres of fuel made from palm oil mill effluent (POME) – a waste product of palm oil production in Indonesia and Malaysia. This represented a 28-fold increase in POME use in Irish transport.
There are indications the amount of POME-derived biofuel sold into Europe last year may have exceeded the amount that could reasonably be expected to have been produced – raising fears that virgin palm oil may have been passed off as more sustainable, waste-based fuel.
Now Minister for Transport and Energy Eamon Ryan will raise fraud prevention at the EU Energy Council meeting in Luxembourg next week.
In a paper to be circulated at the meeting, the government says the EU may need to restrict the amount of POME that can be counted towards the bloc’s renewable energy targets.
The Irish paper states that comparing the amount of POME-based biofuel sold in the EU last year to the amount of POME that can be physically produced worldwide raises “cause for concern”.
The government goes on urge the European Commission to “take account of these concerns raised about POME and other palm oil derivatives” as it investigates potential biofuel fraud, and to take appropriate action on the issue.
The planned intervention marks a notable change in tone from the Department Transport; as recently as two weeks ago the Department said it had been assured as to the sustainability of current biofuel supplies to Ireland. At that stage it also expressed no concern about the sustainability of POME. The Journal
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Malaysia’s First Industrial Biochar Facility, Carbon Plus Partners with CrystalTrade for Carbon Removal Optimization
Carbon Plus has launched Malaysia’s first industrial biochar facility, the Bukit Selar Carbon Station, located in Bukit Selar, Kelantan. This pioneering facility, which will produce 500 tonnes of high-quality biochar annually, utilizes advanced gasification technology provided by Renewables Plus. The feedstock for biochar production includes wild, mature bamboo and Palm Kernel Shell (PKS), a byproduct of palm oil production.
To enhance the efficiency and transparency of its operations, Carbon Plus has integrated CrystalTrade’s digital Monitoring, Reporting, and Verification (dMRV) solution. This technology allows Carbon Plus to track and optimize its carbon removal processes while generating CO2 Removal Certificates (CORCs) under the Puro.earth methodology.
dMRV Integration: Boosting Efficiency and Transparency
By employing the CrystalTrade dMRV system, Carbon Plus can monitor each stage of biochar production with precision. This ensures accurate, real-time calculations of the carbon removed and enables detailed tracking of the entire process—from biomass sourcing to emissions monitoring and carbon storage. The data-driven insights provided by dMRV offer full traceability, allowing Carbon Plus to continually optimize its operations and guarantee the integrity of its carbon removal projects.
Who is Carbon Plus?
Carbon Plus is a pioneer in biochar project development and implementation across Malaysia and the surrounding region. Their innovative approach centers on converting biomass into biochar through gasification at temperatures exceeding 850˚C. This process produces highly stable biochar, which ensures long-term carbon storage and makes their carbon credits especially appealing to buyers.
The Bukit Selar Carbon Station, a demonstration project implemented by Carbon Plus’s subsidiary Carbon Zero, is just the beginning. With the facility’s current capacity to remove 1,200 tonnes of CO2e annually, Carbon Plus plans to scale up operations, establishing larger biochar facilities next year. This expansion is set to position the company as a key player in carbon removal across Southeast Asia. Carbon Credits
--------
Indonesia, Malaysia, EU work on guide for smallholders on EU deforestation rules
JAKARTA, Oct 11 (Reuters) - Indonesia, Malaysia and the European Union will formulate a practical guide to EU deforestation rules (EUDR) for smallholders by November, an intergovernmental group representing palm oil producers said on Friday.
The European Commission earlier this month proposed delaying implementation of the EUDR, which will ban imports of commodities linked to deforestation, following calls from industries and governments around the world.
The Council of Palm Oil Producing Countries (CPOPC) said in a statement that the EU, Indonesia, and Malaysia would work together on recommendations and a practical guide for smallholders and small businesses in the palm oil, coffee, rubber, timber, and cocoa sectors to prepare them for the EUDR.
CPOPC is an intergovernmental organisation for palm oil producing countries, including the world's biggest palm oil producer Indonesia, Malaysia and Honduras. Reuters
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Indonesia secures Rp479 billion in potential transactions at 21st China-ASEAN Expo
Indonesia showcased its economic prowess at the 21st China-ASEAN Expo (CAEXPO) recently held at the Nanning International Convention and Exhibition Center (NICEC) in Nanning City, Guangxi Zhuang Autonomous Region, from September 24 to 28, 2024.
The Indonesian delegation, led by the Ministry of Trade, secured an impressive Rp479 billion (US$31 million) in potential transactions, further highlighting the country’s growing influence in international markets.
The most sought-after Indonesian products at the event included palm oil, coconuts, cloves, coffee, tropical fruits, handicrafts, instant noodles, and processed foods.
“We are proud of the transactions made. This success demonstrates the enormous potential of Indonesian products. We hope the results of this expo will drive export growth and enhance the competitiveness of our local products in international markets, especially in China,” Mardyana Listyowati, Director General of National Export Development at the Ministry of Trade, said on Tuesday, October 8, 2024.
Indonesia’s presence was prominent across three major pavilions: the Commodity Hall (D4), City of Charm Hall (B2), and the ASEAN High Tech Pavilion. In the Commodity Hall, the Indonesian delegation included representatives from the Ministry of Trade, the Investment Coordinating Board (BKPM), state-owned enterprises like Pertamina (bringing 13 small and medium enterprises or SMEs), EXIM Bank, and national companies like Astra, Maspion, and Batik Danar Hadi. The pavilion featured over 70 SMEs supported by state-owned enterprises and private companies. Indonesia Business Post
What's really in your tank? Ireland to raise concerns about fraudulent biofuel with EU ministers
The government will raise concern over palm oil waste-based biofuel, as its use here soars.
THE GOVERNMENT WILL raise fears that fraudulent imported biofuel could be passed off as sustainable fuel at a meeting of EU energy ministers next week.
Hundreds of millions of litres of biofuel are used in Ireland but there is a risk that some may not be what is claimed.
As reported by The Journal last month, a 24% increase in biofuel use in Ireland last year was largely met with an additional 54 million litres of fuel made from palm oil mill effluent (POME) – a waste product of palm oil production in Indonesia and Malaysia. This represented a 28-fold increase in POME use in Irish transport.
There are indications the amount of POME-derived biofuel sold into Europe last year may have exceeded the amount that could reasonably be expected to have been produced – raising fears that virgin palm oil may have been passed off as more sustainable, waste-based fuel.
Now Minister for Transport and Energy Eamon Ryan will raise fraud prevention at the EU Energy Council meeting in Luxembourg next week.
In a paper to be circulated at the meeting, the government says the EU may need to restrict the amount of POME that can be counted towards the bloc’s renewable energy targets.
The Irish paper states that comparing the amount of POME-based biofuel sold in the EU last year to the amount of POME that can be physically produced worldwide raises “cause for concern”.
The government goes on urge the European Commission to “take account of these concerns raised about POME and other palm oil derivatives” as it investigates potential biofuel fraud, and to take appropriate action on the issue.
The planned intervention marks a notable change in tone from the Department Transport; as recently as two weeks ago the Department said it had been assured as to the sustainability of current biofuel supplies to Ireland. At that stage it also expressed no concern about the sustainability of POME. The Journal
--------
Malaysia’s First Industrial Biochar Facility, Carbon Plus Partners with CrystalTrade for Carbon Removal Optimization
Carbon Plus has launched Malaysia’s first industrial biochar facility, the Bukit Selar Carbon Station, located in Bukit Selar, Kelantan. This pioneering facility, which will produce 500 tonnes of high-quality biochar annually, utilizes advanced gasification technology provided by Renewables Plus. The feedstock for biochar production includes wild, mature bamboo and Palm Kernel Shell (PKS), a byproduct of palm oil production.
To enhance the efficiency and transparency of its operations, Carbon Plus has integrated CrystalTrade’s digital Monitoring, Reporting, and Verification (dMRV) solution. This technology allows Carbon Plus to track and optimize its carbon removal processes while generating CO2 Removal Certificates (CORCs) under the Puro.earth methodology.
dMRV Integration: Boosting Efficiency and Transparency
By employing the CrystalTrade dMRV system, Carbon Plus can monitor each stage of biochar production with precision. This ensures accurate, real-time calculations of the carbon removed and enables detailed tracking of the entire process—from biomass sourcing to emissions monitoring and carbon storage. The data-driven insights provided by dMRV offer full traceability, allowing Carbon Plus to continually optimize its operations and guarantee the integrity of its carbon removal projects.
Who is Carbon Plus?
Carbon Plus is a pioneer in biochar project development and implementation across Malaysia and the surrounding region. Their innovative approach centers on converting biomass into biochar through gasification at temperatures exceeding 850˚C. This process produces highly stable biochar, which ensures long-term carbon storage and makes their carbon credits especially appealing to buyers.
The Bukit Selar Carbon Station, a demonstration project implemented by Carbon Plus’s subsidiary Carbon Zero, is just the beginning. With the facility’s current capacity to remove 1,200 tonnes of CO2e annually, Carbon Plus plans to scale up operations, establishing larger biochar facilities next year. This expansion is set to position the company as a key player in carbon removal across Southeast Asia. Carbon Credits
--------
Indonesia, Malaysia, EU work on guide for smallholders on EU deforestation rules
JAKARTA, Oct 11 (Reuters) - Indonesia, Malaysia and the European Union will formulate a practical guide to EU deforestation rules (EUDR) for smallholders by November, an intergovernmental group representing palm oil producers said on Friday.
The European Commission earlier this month proposed delaying implementation of the EUDR, which will ban imports of commodities linked to deforestation, following calls from industries and governments around the world.
The Council of Palm Oil Producing Countries (CPOPC) said in a statement that the EU, Indonesia, and Malaysia would work together on recommendations and a practical guide for smallholders and small businesses in the palm oil, coffee, rubber, timber, and cocoa sectors to prepare them for the EUDR.
CPOPC is an intergovernmental organisation for palm oil producing countries, including the world's biggest palm oil producer Indonesia, Malaysia and Honduras. Reuters
--------
Indonesia secures Rp479 billion in potential transactions at 21st China-ASEAN Expo
Indonesia showcased its economic prowess at the 21st China-ASEAN Expo (CAEXPO) recently held at the Nanning International Convention and Exhibition Center (NICEC) in Nanning City, Guangxi Zhuang Autonomous Region, from September 24 to 28, 2024.
The Indonesian delegation, led by the Ministry of Trade, secured an impressive Rp479 billion (US$31 million) in potential transactions, further highlighting the country’s growing influence in international markets.
The most sought-after Indonesian products at the event included palm oil, coconuts, cloves, coffee, tropical fruits, handicrafts, instant noodles, and processed foods.
“We are proud of the transactions made. This success demonstrates the enormous potential of Indonesian products. We hope the results of this expo will drive export growth and enhance the competitiveness of our local products in international markets, especially in China,” Mardyana Listyowati, Director General of National Export Development at the Ministry of Trade, said on Tuesday, October 8, 2024.
Indonesia’s presence was prominent across three major pavilions: the Commodity Hall (D4), City of Charm Hall (B2), and the ASEAN High Tech Pavilion. In the Commodity Hall, the Indonesian delegation included representatives from the Ministry of Trade, the Investment Coordinating Board (BKPM), state-owned enterprises like Pertamina (bringing 13 small and medium enterprises or SMEs), EXIM Bank, and national companies like Astra, Maspion, and Batik Danar Hadi. The pavilion featured over 70 SMEs supported by state-owned enterprises and private companies. Indonesia Business Post
October 11, 2024
Incoming Indonesian President Prabowo wants food and energy self-sufficiency, warns of crises, geopolitical threats
President-elect Prabowo Subianto has put the emphasis on the vital lessons learned from the COVID-19 pandemic, stressing the necessity of Indonesia to secure its future by reducing dependence on imports, especially in sectors as critical as food and energy.
“Since the beginning, I have reminded you of what will happen if we are dependent on imports. It turned out that there was a crisis, COVID-19. Exporting countries, like India, Vietnam, Thailand, and Cambodia, suddenly stopped exporting food,” Prabowo said of his vision statement at the closing of the 2024 BNI Investor Summit in Jakarta on Wednesday, October 9, 2024.
He highlights a fundamental vulnerability that was laid bare during the pandemic, when nations face internal challenges, international trade can become unreliable, and countries dependent on imports may find themselves scrambling to meet basic needs.
“We have to be vigilant. And I am confident that we will be vigilant for the next four years,” he said, emphasizing the importance of staying prepared for future uncertainties.
However, it is not just food security that requires attention. His speech also brought to light Indonesia’s energy dependency, particularly on imported fuel. With geopolitical tensions in regions, like the Middle East, threatening the stability of oil supplies, the potential for fuel crises looms large.
“If there is a crisis, it will be the same again. Israel is rumored to attack Iranian oil fields. Iran says that if their oil and gas fields are attacked, they will retaliate,” he said.
Prabowo further reminded of the possible repercussions of such conflicts that would send global oil prices soaring, with countries like Indonesia left to bear the consequences. He, however, remained hopeful, pointing out Indonesia’s strides toward energy independence, particularly through the development of alternative fuels like biodiesel derived from palm oil.
“We are grateful once again. God loves the people of Indonesia. Now we have the technology to produce energy from palm oil,” he said.
Indonesia is progressing beyond B-35, with ambitions to produce even higher biodiesel blends, such as B-40 and B-50, offering a sustainable alternative to traditional fuels.
Furthermore, Indonesia is exploring other avenues to reduce its energy dependence, including transforming coal into solar energy and diesel.
Prabowo pointed towards a future where Indonesia harnesses its own natural resources and innovates its energy sector.
“We have to be realistic. This is the key to our revolution. We have to downstreaming. From downstreaming, we will implement industrialization,” he said.
“We are grateful that we have the largest nickel reserve in the world. We have one of the largest bauxite reserves in the world. Our copper reserve, if I’m not mistaken, is the 7th largest in the world. We have thorium, we have uranium, we have rare earth,” he added.
These resources, critical for industries ranging from electronics to renewable energy, offer Indonesia a unique opportunity to become a global powerhouse in resource-based industries.
However, there are challenges. Some individuals, according to Prabowo, remain either pessimistic or deliberately obstructive to progress.
“Indonesia must harness its natural resources, embrace energy independence, and industrialize its economy to not only survive, but also thrive in an unpredictable global environment,” he concluded. Indonesia Business Post
---------
Bursa Malaysia seeks feedback on used cooking oil futures contract plan\
KUALA LUMPUR, Oct 11 (Reuters) - Malaysia's stock exchange said on Friday it was seeking industry feedback on a plan to launch a new futures contract for used cooking oil, a key ingredient in producing renewable biofuels.
"Bursa Malaysia is looking to offer a new futures contract for used cooking oil, which is currently undergoing industry consultation and is subject to regulatory approval," the bourse said in a statement to Reuters.
The exchange did not provide further details on the proposal, which was first reported by Bloomberg on Thursday.
Specifications for the futures contract have been shared with industry participants, Bloomberg reported, citing sources and a copy of the proposed guidelines it had seen.
Malaysia, the world's second-largest producer of palm oil, exported nearly 300,000 metric tons of biodiesel last year, while domestic consumption stood at around 1.1 million tons. Reuters
Incoming Indonesian President Prabowo wants food and energy self-sufficiency, warns of crises, geopolitical threats
President-elect Prabowo Subianto has put the emphasis on the vital lessons learned from the COVID-19 pandemic, stressing the necessity of Indonesia to secure its future by reducing dependence on imports, especially in sectors as critical as food and energy.
“Since the beginning, I have reminded you of what will happen if we are dependent on imports. It turned out that there was a crisis, COVID-19. Exporting countries, like India, Vietnam, Thailand, and Cambodia, suddenly stopped exporting food,” Prabowo said of his vision statement at the closing of the 2024 BNI Investor Summit in Jakarta on Wednesday, October 9, 2024.
He highlights a fundamental vulnerability that was laid bare during the pandemic, when nations face internal challenges, international trade can become unreliable, and countries dependent on imports may find themselves scrambling to meet basic needs.
“We have to be vigilant. And I am confident that we will be vigilant for the next four years,” he said, emphasizing the importance of staying prepared for future uncertainties.
However, it is not just food security that requires attention. His speech also brought to light Indonesia’s energy dependency, particularly on imported fuel. With geopolitical tensions in regions, like the Middle East, threatening the stability of oil supplies, the potential for fuel crises looms large.
“If there is a crisis, it will be the same again. Israel is rumored to attack Iranian oil fields. Iran says that if their oil and gas fields are attacked, they will retaliate,” he said.
Prabowo further reminded of the possible repercussions of such conflicts that would send global oil prices soaring, with countries like Indonesia left to bear the consequences. He, however, remained hopeful, pointing out Indonesia’s strides toward energy independence, particularly through the development of alternative fuels like biodiesel derived from palm oil.
“We are grateful once again. God loves the people of Indonesia. Now we have the technology to produce energy from palm oil,” he said.
Indonesia is progressing beyond B-35, with ambitions to produce even higher biodiesel blends, such as B-40 and B-50, offering a sustainable alternative to traditional fuels.
Furthermore, Indonesia is exploring other avenues to reduce its energy dependence, including transforming coal into solar energy and diesel.
Prabowo pointed towards a future where Indonesia harnesses its own natural resources and innovates its energy sector.
“We have to be realistic. This is the key to our revolution. We have to downstreaming. From downstreaming, we will implement industrialization,” he said.
“We are grateful that we have the largest nickel reserve in the world. We have one of the largest bauxite reserves in the world. Our copper reserve, if I’m not mistaken, is the 7th largest in the world. We have thorium, we have uranium, we have rare earth,” he added.
These resources, critical for industries ranging from electronics to renewable energy, offer Indonesia a unique opportunity to become a global powerhouse in resource-based industries.
However, there are challenges. Some individuals, according to Prabowo, remain either pessimistic or deliberately obstructive to progress.
“Indonesia must harness its natural resources, embrace energy independence, and industrialize its economy to not only survive, but also thrive in an unpredictable global environment,” he concluded. Indonesia Business Post
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Bursa Malaysia seeks feedback on used cooking oil futures contract plan\
KUALA LUMPUR, Oct 11 (Reuters) - Malaysia's stock exchange said on Friday it was seeking industry feedback on a plan to launch a new futures contract for used cooking oil, a key ingredient in producing renewable biofuels.
"Bursa Malaysia is looking to offer a new futures contract for used cooking oil, which is currently undergoing industry consultation and is subject to regulatory approval," the bourse said in a statement to Reuters.
The exchange did not provide further details on the proposal, which was first reported by Bloomberg on Thursday.
Specifications for the futures contract have been shared with industry participants, Bloomberg reported, citing sources and a copy of the proposed guidelines it had seen.
Malaysia, the world's second-largest producer of palm oil, exported nearly 300,000 metric tons of biodiesel last year, while domestic consumption stood at around 1.1 million tons. Reuters
October 10, 2024
UN agency launching platform to help small farmers meet EU deforestation rules
HAMBURG, Oct 9 (Reuters) - A United Nations trade agency is launching an online platform this month to help small farmers in developing countries maintain access to Europe once new deforestation rules kick in.
The rules, which will bar exports of commodities to Europe linked to deforestation, have already seen a reduction in orders to some small farmers in the developing world.
The European Commission last week proposed delaying the rules for a year, phasing in from 2025 to 2026.
Pamela Coke-Hamilton, executive director of the International Trade Centre, told Reuters that the platform was part of a broader effort by her organisation to "work out a system that will cause the least damage possible".
"This delay at least has given enough time to try to put in place the mechanisms to help (small and medium enterprises) and the countries put themselves in a position to meet these requirements," she said on the sidelines of the Hamburg Sustainability Conference.
The ITC, a joint venture of the World Trade Organization and the United Nations, advises small businesses in emerging markets on exporting.
Environmental groups say the rules will help fight climate change, but developing countries and organisations representing coffee, cocoa and palm oil farmers say it could exclude millions of poor, small-scale farmers who cannot comply with the burden of proof.
The platform, the Deforestation-Free Trade Gateway, aims to reduce repetitive and costly data collection and sharing and create a virtual meeting place where farmers, exporters and importers can confirm compliance. Reuters
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Malaysia Palm Oil Council Chief says India remains key market despite import duty hike
KUALA LUMPUR, Oct 9 : Malaysia remains optimistic about palm oil exports to India despite recent import duty hike, with the Malaysian Palm Oil Council (MPOC) Chairman Dato Carl Bek Nielsen emphasizing the long-standing trade relationship between the two countries.
In an interview to PTI, Nielsen stressed that India, being the world’s largest palm oil importer, continues to be an “incredibly important market” for Malaysian palm oil.
He pointed out that such tariff adjustments have occurred in the past and are part of the normal trading relationship between the two countries.
“This has been done before. Duties have been raised, and duties have been reduced, and we will see that this pattern will repeat itself in the future,” Nielsen said.
He said that the council’s approach would be based on long-term partnership rather than “short-term knee-jerk reactions.”
He also added that the council is “not worried” about the tariff changes because there are other countries which would want to buy Malaysian palm oil if the shipments to India gets reduced.
The MPOC chairman projected an optimistic outlook for palm oil production in Malaysia, forecasting output to reach at least 19-19.2 million tonnes in 2024, marking a substantial increase from the previous year’s figures.
Asked about the potential impact on demand due to India’s push for domestic oilseed cultivation, Nielsen said, “I don’t see it as a problem,” as India’s growing population and rising affluence levels would potentially increase vegetable oil demand. Daily Excelsior
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Greenpeace: Indonesia's Forests Turned into Palm Oil Plantations Dramatically Increased in the Last 5 Years
TEMPO.CO, Jakarta - The extent of palm oil plantations encroaching and even taking over forests has drastically increased since 2019. As a result, wildlife habitats such as tigers, orangutans, and elephants are continuously eroded.
"Now, palm oil production is located within areas classified as forests, ranging from national parks, wildlife reserves, and even UNESCO sites," said Arie Rompas, Greenpeace Indonesia Campaign Manager, in a public discussion titled 'Corruption Practices Behind Palm Oil Pardoning in Forest Areas' in Jakarta on Wednesday, October 9, 2024.
Arie cited an example of a palm oil plantation location in Gunung Melintang, West Kalimantan. A conservation forest area of 100 hectares in that region was cleared by a palm oil company. The location, he said, is adjacent to a palm oil plantation that obtained a plantation business permit in 2007 covering an area of 7,000 hectares.
Another example, he said, is the expansion of oil palm in the Bakiriang Wildlife Reserve. "Hundreds of hectares of wildlife areas have been converted into palm oil plantations," he said.
Greenpeace noted a total of 183,687 hectares of orangutan habitat in Sumatra and Kalimantan have been disturbed by palm oil plantations. In addition, 136,324 hectares of Sumatran tiger habitat and 5,989 hectares of elephant habitat. "This has led to frequent wildlife conflicts in the oil palm areas of these two locations, namely Sumatra and Kalimantan."
Previously, the latest research from the Civil Society Coalition consisting of Sustainable MADANI, Satya Bumi, and Sawit Watch revealed the upper limit calculation of environmental carrying capacity for oil palm plantations in Indonesia is 18.15 million hectares. The current extent is 17.3 million hectares, or almost 1.5 times the size of Java Island, according to data from the National Geospatial Information Agency (BIG) until the end of 2023.
The Civil Society Coalition reminded to stop opening new oil palm plantations and optimize existing land, instead of opening new land. If the growth of the palm oil industry is allowed to continue unchecked, economic and ecological calculations indicate a huge potential for long-term losses for the country. Tempo
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Sarawak unveils mechanised oil palm harvester ‘Lipan’, addresses labour shortage, efficiency
MIRI (Oct 9): Sarawak Plantation Berhad (SPB) has developed a mechanised oil palm harvester called the “Lipan” that would revolutionised the oil palm industry in the region.
Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said this is the way forward to address labour shortages while increasing productivity and efficiency.
“Earlier, I witnessed how this machine efficiently harvests fresh fruit bunches (FFBs) using remote control, collecting the fruits at speed and placing them into a bin.
“I timed the process, it takes just two minutes to harvest and load 1.2 tonnes,” he said during the launch of the Lipan at the Subis Plantation today.
He said relying on manual labour would be impractical due to the heavy work, making mechanisation essential for the industry’s future success.
At the same time, he said that the mechanisation in the oil palm industry would also address the long-standing issue of labour shortage, as Sarawak has always on foreign labours.
“When the Indonesian side develops their own industries, they cannot spare their labour with us, because firstly, they create employment in their country whereby the wages are comparable to us.
“Considering these two factors, I think they would prefer to work in their own country, thus we got problem – shortage of labour,” he said.
Another issue of depending on human labour is the time taken to process applications for foreign labour, he said, adding that sometimes it would take up to eight months for the Immigration Department to process the paperwork.
“These processes take at least eight months, so much so we got complaints from the industry. Why take so long? But then, you have to comply with the law. So, that becomes another problem,” Abang Johari said. The Borneo Post
UN agency launching platform to help small farmers meet EU deforestation rules
HAMBURG, Oct 9 (Reuters) - A United Nations trade agency is launching an online platform this month to help small farmers in developing countries maintain access to Europe once new deforestation rules kick in.
The rules, which will bar exports of commodities to Europe linked to deforestation, have already seen a reduction in orders to some small farmers in the developing world.
The European Commission last week proposed delaying the rules for a year, phasing in from 2025 to 2026.
Pamela Coke-Hamilton, executive director of the International Trade Centre, told Reuters that the platform was part of a broader effort by her organisation to "work out a system that will cause the least damage possible".
"This delay at least has given enough time to try to put in place the mechanisms to help (small and medium enterprises) and the countries put themselves in a position to meet these requirements," she said on the sidelines of the Hamburg Sustainability Conference.
The ITC, a joint venture of the World Trade Organization and the United Nations, advises small businesses in emerging markets on exporting.
Environmental groups say the rules will help fight climate change, but developing countries and organisations representing coffee, cocoa and palm oil farmers say it could exclude millions of poor, small-scale farmers who cannot comply with the burden of proof.
The platform, the Deforestation-Free Trade Gateway, aims to reduce repetitive and costly data collection and sharing and create a virtual meeting place where farmers, exporters and importers can confirm compliance. Reuters
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Malaysia Palm Oil Council Chief says India remains key market despite import duty hike
KUALA LUMPUR, Oct 9 : Malaysia remains optimistic about palm oil exports to India despite recent import duty hike, with the Malaysian Palm Oil Council (MPOC) Chairman Dato Carl Bek Nielsen emphasizing the long-standing trade relationship between the two countries.
In an interview to PTI, Nielsen stressed that India, being the world’s largest palm oil importer, continues to be an “incredibly important market” for Malaysian palm oil.
He pointed out that such tariff adjustments have occurred in the past and are part of the normal trading relationship between the two countries.
“This has been done before. Duties have been raised, and duties have been reduced, and we will see that this pattern will repeat itself in the future,” Nielsen said.
He said that the council’s approach would be based on long-term partnership rather than “short-term knee-jerk reactions.”
He also added that the council is “not worried” about the tariff changes because there are other countries which would want to buy Malaysian palm oil if the shipments to India gets reduced.
The MPOC chairman projected an optimistic outlook for palm oil production in Malaysia, forecasting output to reach at least 19-19.2 million tonnes in 2024, marking a substantial increase from the previous year’s figures.
Asked about the potential impact on demand due to India’s push for domestic oilseed cultivation, Nielsen said, “I don’t see it as a problem,” as India’s growing population and rising affluence levels would potentially increase vegetable oil demand. Daily Excelsior
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Greenpeace: Indonesia's Forests Turned into Palm Oil Plantations Dramatically Increased in the Last 5 Years
TEMPO.CO, Jakarta - The extent of palm oil plantations encroaching and even taking over forests has drastically increased since 2019. As a result, wildlife habitats such as tigers, orangutans, and elephants are continuously eroded.
"Now, palm oil production is located within areas classified as forests, ranging from national parks, wildlife reserves, and even UNESCO sites," said Arie Rompas, Greenpeace Indonesia Campaign Manager, in a public discussion titled 'Corruption Practices Behind Palm Oil Pardoning in Forest Areas' in Jakarta on Wednesday, October 9, 2024.
Arie cited an example of a palm oil plantation location in Gunung Melintang, West Kalimantan. A conservation forest area of 100 hectares in that region was cleared by a palm oil company. The location, he said, is adjacent to a palm oil plantation that obtained a plantation business permit in 2007 covering an area of 7,000 hectares.
Another example, he said, is the expansion of oil palm in the Bakiriang Wildlife Reserve. "Hundreds of hectares of wildlife areas have been converted into palm oil plantations," he said.
Greenpeace noted a total of 183,687 hectares of orangutan habitat in Sumatra and Kalimantan have been disturbed by palm oil plantations. In addition, 136,324 hectares of Sumatran tiger habitat and 5,989 hectares of elephant habitat. "This has led to frequent wildlife conflicts in the oil palm areas of these two locations, namely Sumatra and Kalimantan."
Previously, the latest research from the Civil Society Coalition consisting of Sustainable MADANI, Satya Bumi, and Sawit Watch revealed the upper limit calculation of environmental carrying capacity for oil palm plantations in Indonesia is 18.15 million hectares. The current extent is 17.3 million hectares, or almost 1.5 times the size of Java Island, according to data from the National Geospatial Information Agency (BIG) until the end of 2023.
The Civil Society Coalition reminded to stop opening new oil palm plantations and optimize existing land, instead of opening new land. If the growth of the palm oil industry is allowed to continue unchecked, economic and ecological calculations indicate a huge potential for long-term losses for the country. Tempo
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Sarawak unveils mechanised oil palm harvester ‘Lipan’, addresses labour shortage, efficiency
MIRI (Oct 9): Sarawak Plantation Berhad (SPB) has developed a mechanised oil palm harvester called the “Lipan” that would revolutionised the oil palm industry in the region.
Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said this is the way forward to address labour shortages while increasing productivity and efficiency.
“Earlier, I witnessed how this machine efficiently harvests fresh fruit bunches (FFBs) using remote control, collecting the fruits at speed and placing them into a bin.
“I timed the process, it takes just two minutes to harvest and load 1.2 tonnes,” he said during the launch of the Lipan at the Subis Plantation today.
He said relying on manual labour would be impractical due to the heavy work, making mechanisation essential for the industry’s future success.
At the same time, he said that the mechanisation in the oil palm industry would also address the long-standing issue of labour shortage, as Sarawak has always on foreign labours.
“When the Indonesian side develops their own industries, they cannot spare their labour with us, because firstly, they create employment in their country whereby the wages are comparable to us.
“Considering these two factors, I think they would prefer to work in their own country, thus we got problem – shortage of labour,” he said.
Another issue of depending on human labour is the time taken to process applications for foreign labour, he said, adding that sometimes it would take up to eight months for the Immigration Department to process the paperwork.
“These processes take at least eight months, so much so we got complaints from the industry. Why take so long? But then, you have to comply with the law. So, that becomes another problem,” Abang Johari said. The Borneo Post
October 09, 2024
Higher biodiesel mandates in Indonesia to curb palm oil supplies, analyst says
JAKARTA/KUALA LUMPUR (Reuters): Implementation of higher biodiesel mandates in Indonesia, the world's biggest palm oil producer, is likely to tighten supplies of the vegetable oil, a leading industry analyst said on Tuesday.
Indonesia currently has a mandatory 35% blend of palm oil-based fuel in biodiesel and is seeking to ramp up to biodiesel containing 40% palm oil to cut its energy imports.
The plan, if implemented, could see biodiesel consumption rise to 16 million kilolitres next year.
The move would involve the additional use of 1.5 to 1.7 million metric tons of palm oil, leading to lower export volumes, Oil World senior analyst David Mielke told a palm oil conference in Kuala Lumpur.
"In a situation where we don't have enough oil, Indonesia increasing the mandate by 5% would make overall supply tight," he told Reuters on the sidelines of the event.
"So for the consumer worldwide, it would be catastrophic because there would be even less oil available."
B40 will boost Indonesia's palm oil use for biodiesel to 13.9 million metric tons from the estimated 11 million tons needed this year, with B35, Indonesia's biofuel producers association APROBI has estimated. The StarMY
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Indonesia’s palm oil sector worries over costs, security after EU deforestation law delay
The world’s biggest palm oil producer plans to hold more talks with the EU ahead of its deforestation law taking effect on December 30, 2025
The European Union’s decision to delay the implementation of a deforestation law has drawn mixed reactions in Indonesia, the world’s largest palm oil producer. Some farmers expressed concerns that compliance costs would increase due to the postponement, while others see it as an opportunity to raise important issues, such as on national security.
Originally set to take effect on December 30, the EU Deforestation Regulation (EUDR) requires that commodities such as palm oil, timber, soybeans, coffee and cattle sold in EU markets must not come from land deforested or degraded after December 31, 2020.
Last Wednesday, the European Commission proposed delaying enforcement of the regulation to December 30, 2025, to “give concerned parties additional time to prepare”, pending approval from the European Parliament and Council.
Airlangga Hartarto, Indonesia’s coordinating minister for economic affairs, said the postponement was likely due to pressure from Indonesia, the US, Germany and the World Trade Organization.
“For Indonesia, what is important is the implementation of the policy, not just it being postponed,” he told reporters on Thursday.
The minister highlighted concerns about the EU’s demand for detailed geolocation data on agricultural land. He warned that foreign access to such data could pose security risks.
Indonesia assesses sustainability using its own Indonesia Sustainable Palm Oil (ISPO) standard, which the EUDR does not recognise.
During a meeting of the Asean Economic Community Council in Laos on Monday, Airlangga urged member states to unite against what he described as discriminatory global sustainability policies such as the EUDR that “have a negative impact on the economy and the lives of many people”. SCMP
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Malaysia says India's move to hike import duty on palm oil a 'temporary aberration'
By Laxmi Devi Aere
KUALA LUMPUR: Malaysia's Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani on Tuesday termed India's recent hike in palm oil import duty as a "temporary aberration", saying demand for the commodity remains steady.
Ghani dismissed speculation about arrangements between Malaysia and India for palm oil supplies in exchange for fighter aircraft transfers.
India, the world's largest edible oil importer, raised import duties on palm oil and other edible oils on September 14, 2023, increasing the effective duty on crude palm oil from 5.5 per cent to 12.7 per cent and on refined oils from 13.75 per cent to 35.75 per cent. PTI News
Higher biodiesel mandates in Indonesia to curb palm oil supplies, analyst says
JAKARTA/KUALA LUMPUR (Reuters): Implementation of higher biodiesel mandates in Indonesia, the world's biggest palm oil producer, is likely to tighten supplies of the vegetable oil, a leading industry analyst said on Tuesday.
Indonesia currently has a mandatory 35% blend of palm oil-based fuel in biodiesel and is seeking to ramp up to biodiesel containing 40% palm oil to cut its energy imports.
The plan, if implemented, could see biodiesel consumption rise to 16 million kilolitres next year.
The move would involve the additional use of 1.5 to 1.7 million metric tons of palm oil, leading to lower export volumes, Oil World senior analyst David Mielke told a palm oil conference in Kuala Lumpur.
"In a situation where we don't have enough oil, Indonesia increasing the mandate by 5% would make overall supply tight," he told Reuters on the sidelines of the event.
"So for the consumer worldwide, it would be catastrophic because there would be even less oil available."
B40 will boost Indonesia's palm oil use for biodiesel to 13.9 million metric tons from the estimated 11 million tons needed this year, with B35, Indonesia's biofuel producers association APROBI has estimated. The StarMY
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Indonesia’s palm oil sector worries over costs, security after EU deforestation law delay
The world’s biggest palm oil producer plans to hold more talks with the EU ahead of its deforestation law taking effect on December 30, 2025
The European Union’s decision to delay the implementation of a deforestation law has drawn mixed reactions in Indonesia, the world’s largest palm oil producer. Some farmers expressed concerns that compliance costs would increase due to the postponement, while others see it as an opportunity to raise important issues, such as on national security.
Originally set to take effect on December 30, the EU Deforestation Regulation (EUDR) requires that commodities such as palm oil, timber, soybeans, coffee and cattle sold in EU markets must not come from land deforested or degraded after December 31, 2020.
Last Wednesday, the European Commission proposed delaying enforcement of the regulation to December 30, 2025, to “give concerned parties additional time to prepare”, pending approval from the European Parliament and Council.
Airlangga Hartarto, Indonesia’s coordinating minister for economic affairs, said the postponement was likely due to pressure from Indonesia, the US, Germany and the World Trade Organization.
“For Indonesia, what is important is the implementation of the policy, not just it being postponed,” he told reporters on Thursday.
The minister highlighted concerns about the EU’s demand for detailed geolocation data on agricultural land. He warned that foreign access to such data could pose security risks.
Indonesia assesses sustainability using its own Indonesia Sustainable Palm Oil (ISPO) standard, which the EUDR does not recognise.
During a meeting of the Asean Economic Community Council in Laos on Monday, Airlangga urged member states to unite against what he described as discriminatory global sustainability policies such as the EUDR that “have a negative impact on the economy and the lives of many people”. SCMP
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Malaysia says India's move to hike import duty on palm oil a 'temporary aberration'
By Laxmi Devi Aere
KUALA LUMPUR: Malaysia's Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani on Tuesday termed India's recent hike in palm oil import duty as a "temporary aberration", saying demand for the commodity remains steady.
Ghani dismissed speculation about arrangements between Malaysia and India for palm oil supplies in exchange for fighter aircraft transfers.
India, the world's largest edible oil importer, raised import duties on palm oil and other edible oils on September 14, 2023, increasing the effective duty on crude palm oil from 5.5 per cent to 12.7 per cent and on refined oils from 13.75 per cent to 35.75 per cent. PTI News
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October 08. 2024
Deforestation ‘roaring back’ despite 140-country vow to end destruction
Demand for beef, soy, palm oil and nickel hindering efforts to halt demolition by 2030, global report finds
The destruction of global forests increased in 2023, and is higher than when 140 countries promised three years ago to halt deforestation by the end of the decade, an analysis shows.
The rising demolition of the forests puts ambitions to halt the climate crisis and stem the huge worldwide losses of wildlife even further from reach, the researchers warn.
Almost 6.4m hectares (16m acres) of forest were razed in 2023, according to the report. Even more forest – 62.6m ha – was degraded as road building, logging and forest fires took their toll. There were spikes in deforestation in Indonesia and Bolivia, driven by political changes and continued demand for commodities including beef, soy, palm oil, paper and nickel in rich countries.
The researchers said attempts at voluntary cuts on deforestation were not working and strong regulation and more funding for forest protection were needed.
The report highlighted a bright spot in the Brazilian Amazon, where President Luiz Inácio Lula da Silva’s new government cut deforestation by 62% in its first year.
“The bottom line is that, globally, deforestation has gotten worse, not better, since the beginning of the decade,” said Ivan Palmegiani, a consultant at the research group Climate Focus and lead author of the report.
“We’re only six years away from a critical global deadline to end deforestation, and forests continue to be chopped down, degraded, and set ablaze at alarming rates,” he said. “Righting the course is possible if all countries make it a priority, and especially if industrialised countries seriously reconsider their excessive consumption levels and support forest countries.” More The Guardian UK
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Trase: Indonesian palm oil exports and deforestation
Deforestation associated with the palm oil sector in Indonesia increased slightly in 2022 after falling for nearly a decade, according to the latest Trase data. Greenhouse gas emissions linked to palm oil production on carbon-rich peatland account for a substantial portion of the country’s total climate impact.
In 2023, Indonesia produced 47 million tonnes of crude palm oil, solidifying its position as the world’s largest palm oil exporter, accounting for 54% of global exports. The palm oil industry has grown to become an important part of Indonesia’s economy, representing 4.5% of GDP , and contributing to the labour sector by directly and indirectly employing over 16.2 million people . Much of this growth has been fuelled by international demand for palm oil products, although the domestic market is becoming an increasingly important buyer.
Low deforestation amid rise in palm oil production
The expansion of oil palm plantations has been an important driver of deforestation in Indonesia for the past 20 years, accounting for one third (3 million hectares) of Indonesia’s loss of old-growth forest. This deforestation, alongside peatland drying and associated fires, is an important contributor to global climate change and biodiversity loss, as well as poor local air quality.
Over the past decade, Indonesia has achieved a reversal in deforestation for palm oil production. In 2018–2022, deforestation for industrial palm oil was 32,406 hectares per year – only 18% of its peak a decade earlier, in 2008–2012. Importantly, deforestation has fallen during a period of continued expansion of palm oil production. Although the decline in deforestation has been linked to a drop in the market value of crude palm oil , the recent spike in palm oil prices has not yet been accompanied by a boom in oil palm-driven deforestation. However, this trend saw a slight reversal in 2022 due to an 18% increase in industrial oil palm-driven deforestation, though it remained lower than all previous years since 2001 except 2021.
https://www.sei.org/features/indonesian-palm-oil-exports-and-deforestation/
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Visible relief: Palm oil industry welcomes announcement of EUDR postponement – but troubles not over yet
08-Oct-2024 By Pearly Neo
The palm oil and other agrifood sectors may have breathed a collective sigh of relief at the European Commission (EC) announcement that EUDR enforcement will be delayed – but experts are warning that the root problems are yet to be resolved.
https://www.foodnavigator-asia.com/Article/2024/10/08/palm-oil-industry-welcomes-announcement-of-eudr-postponement-but-troubles-not-over-yet
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Can Europe See the Forest for the Trees?
Commentary by William Alan Reinsch
Last week, under considerable pressure from just about everybody except environmentalists, the European Commission announced it would delay the implementation of its Regulation on Deforestation-Free Products (EUDR), which was supposed to take effect on December 30. If the European Parliament and European Council approve the postponement, the parties affected by it will have another year to get ready, with small ones having six months beyond that.
The regulation has been harshly criticized for its vagueness, which makes it difficult to explain exactly how it would work. It is intended to discourage the export or import of products that exporters or importers cannot prove are not linked to deforestation. It focuses on seven products—cattle, cocoa, coffee, palm oil, rubber, soya, and wood—and items that contain them. It appears that the regulation would operate a lot like the U.S. Uyghur Forced Labor Prevention Act (UFLPA) in that it would put the burden of proof on the private importer or exporter rather than requiring the government to prove the linkage, and providing such proof would essentially require tracing the origin of the shipment through its supply chain back to its beginning.
The law has also been criticized as effectively discriminating against small farmers and landowners, who are generally the last to become aware of new rules, especially those in a foreign jurisdiction, and do not have the technology or resources needed to comply. Large agribusinesses that have seen this coming and are well resourced are in a much more advantageous position. There is an irony here. Much of the European Union’s regulation recently has gone after big companies, particularly in the high-tech sector, in the name of helping smaller companies compete more effectively. So, while the European Commission seems determined to strike a blow against Big Tech, particularly when it is American, the deforestation regulation would help Big Farm at the expense of the little guy. For example, Nestlé, Unilever, Mondelēz International, and Mars Wrigley support the regulation, and ADM, or the Archer-Daniels-Midland Company, has announced that it already has a verifiable supply chain for soybean oil and meal. CSIS
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Malaysia’s palm oil industry focuses on replanting and sustainability
MALAYSIA’S palm oil sector is taking proactive steps to address challenges related to ageing oil palm trees and stagnant yields, alongside increasing its commitment to global sustainability standards, according to recent statements from industry leaders.
The government has prioritised replanting efforts as a key strategy to boost productivity without expanding land use.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said there are approximately 450,000ha of oil palm trees over 25 years old, requiring rejuvenation.
In 2023, Malaysia made significant progress by replanting 132,000ha, representing 2.3% of the total planted area, an improvement over the previous year’s 97,130ha (1.7%).
To further enhance productivity, particularly among smallholders, the government is focusing on initiatives that include promoting the use of quality planting materials, adopting Good Agricultural Practices (GAP) and providing financial assistance for replanting.
“Smallholders, who manage 1.5 million ha of palm oil plantations, have faced lower replanting rates, with organised smallholders replanting at just 0.9% annually and independent smallholders at 0.2%.
“Increasing the annual replanting rate to 4% could significantly raise yields, potentially adding 1.5 million metric tonnes of crude palm oil (CPO) production annually without the need for more land,” Johari said in his opening remarks at the Malaysian Palm Oil Forum 2024 (MPOC 2024) today.
On the sustainability front, he said Malaysia is preparing to meet global environmental goals, particularly in light of the European Union Deforestation Regulation (EUDR).
This comes after the European Commission’s recent proposal to postpone the enforcement of the EUDR from its original date of Dec 30, 2024, to Dec 30, 2025, allowing producer countries additional time to comply.
Johari said Malaysia, which has committed to several international sustainability targets, including achieving net-zero greenhouse gas emissions by 2050 and reducing carbon intensity by 45% by 2030, sees this delay as an opportunity to align its policies further with global standards. The Malaysian Reserve
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Malaysia hopes EU legislators will be more accommodating on sustainable policies
KUALA LUMPUR, Oct 8 (Reuters) - Malaysia said on Tuesday it hopes European lawmakers will be "more accommodative" on sustainable policies, following a proposal by the European Commission last week to delay the implementation of a law that would ban imports of products linked to deforestation.
The proposed one-year delay would help give producing countries time to take the necessary steps to comply and rectify their policies, particularly for small farmers who may have trouble meeting the costs and standards of compliance, Malaysia Plantation and Commodities Minister Johari Abdul Ghani told a palm oil forum.
Indonesia and Malaysia, the world's largest producers of palm oil, have strongly opposed the EU law, calling it discriminatory and aimed at protecting the bloc's oilseeds market.
"In the engagements we have made with EU, we are ready to comply. We just need a little bit more time for our small holders... the government will assist them to comply," Johari told a news conference at the event.
Malaysia has an estimated 450,000 small-scale producers, contributing to about 27% of the country's total palm oil cultivation.
Johari said a transparent benchmarking criteria operated by EU regulators would also need to be closely looked over so as to not unfairly label producer countries as high-risk.
"In the spirit of trade fairness, we hope that the EU parliament will play a more accommodative role to address this matter," Johari said.
The EU policy, which requires companies selling soy, beef, coffee, palm oil and other products in the 27-nation bloc to prove their supply chains do not contribute to destruction of forests, was originally due to take effect on Dec. 30 this year. Reuters
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Deforestation ‘roaring back’ despite 140-country vow to end destruction
Demand for beef, soy, palm oil and nickel hindering efforts to halt demolition by 2030, global report finds
The destruction of global forests increased in 2023, and is higher than when 140 countries promised three years ago to halt deforestation by the end of the decade, an analysis shows.
The rising demolition of the forests puts ambitions to halt the climate crisis and stem the huge worldwide losses of wildlife even further from reach, the researchers warn.
Almost 6.4m hectares (16m acres) of forest were razed in 2023, according to the report. Even more forest – 62.6m ha – was degraded as road building, logging and forest fires took their toll. There were spikes in deforestation in Indonesia and Bolivia, driven by political changes and continued demand for commodities including beef, soy, palm oil, paper and nickel in rich countries.
The researchers said attempts at voluntary cuts on deforestation were not working and strong regulation and more funding for forest protection were needed.
The report highlighted a bright spot in the Brazilian Amazon, where President Luiz Inácio Lula da Silva’s new government cut deforestation by 62% in its first year.
“The bottom line is that, globally, deforestation has gotten worse, not better, since the beginning of the decade,” said Ivan Palmegiani, a consultant at the research group Climate Focus and lead author of the report.
“We’re only six years away from a critical global deadline to end deforestation, and forests continue to be chopped down, degraded, and set ablaze at alarming rates,” he said. “Righting the course is possible if all countries make it a priority, and especially if industrialised countries seriously reconsider their excessive consumption levels and support forest countries.” More The Guardian UK
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Trase: Indonesian palm oil exports and deforestation
Deforestation associated with the palm oil sector in Indonesia increased slightly in 2022 after falling for nearly a decade, according to the latest Trase data. Greenhouse gas emissions linked to palm oil production on carbon-rich peatland account for a substantial portion of the country’s total climate impact.
In 2023, Indonesia produced 47 million tonnes of crude palm oil, solidifying its position as the world’s largest palm oil exporter, accounting for 54% of global exports. The palm oil industry has grown to become an important part of Indonesia’s economy, representing 4.5% of GDP , and contributing to the labour sector by directly and indirectly employing over 16.2 million people . Much of this growth has been fuelled by international demand for palm oil products, although the domestic market is becoming an increasingly important buyer.
Low deforestation amid rise in palm oil production
The expansion of oil palm plantations has been an important driver of deforestation in Indonesia for the past 20 years, accounting for one third (3 million hectares) of Indonesia’s loss of old-growth forest. This deforestation, alongside peatland drying and associated fires, is an important contributor to global climate change and biodiversity loss, as well as poor local air quality.
Over the past decade, Indonesia has achieved a reversal in deforestation for palm oil production. In 2018–2022, deforestation for industrial palm oil was 32,406 hectares per year – only 18% of its peak a decade earlier, in 2008–2012. Importantly, deforestation has fallen during a period of continued expansion of palm oil production. Although the decline in deforestation has been linked to a drop in the market value of crude palm oil , the recent spike in palm oil prices has not yet been accompanied by a boom in oil palm-driven deforestation. However, this trend saw a slight reversal in 2022 due to an 18% increase in industrial oil palm-driven deforestation, though it remained lower than all previous years since 2001 except 2021.
https://www.sei.org/features/indonesian-palm-oil-exports-and-deforestation/
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Visible relief: Palm oil industry welcomes announcement of EUDR postponement – but troubles not over yet
08-Oct-2024 By Pearly Neo
The palm oil and other agrifood sectors may have breathed a collective sigh of relief at the European Commission (EC) announcement that EUDR enforcement will be delayed – but experts are warning that the root problems are yet to be resolved.
https://www.foodnavigator-asia.com/Article/2024/10/08/palm-oil-industry-welcomes-announcement-of-eudr-postponement-but-troubles-not-over-yet
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Can Europe See the Forest for the Trees?
Commentary by William Alan Reinsch
Last week, under considerable pressure from just about everybody except environmentalists, the European Commission announced it would delay the implementation of its Regulation on Deforestation-Free Products (EUDR), which was supposed to take effect on December 30. If the European Parliament and European Council approve the postponement, the parties affected by it will have another year to get ready, with small ones having six months beyond that.
The regulation has been harshly criticized for its vagueness, which makes it difficult to explain exactly how it would work. It is intended to discourage the export or import of products that exporters or importers cannot prove are not linked to deforestation. It focuses on seven products—cattle, cocoa, coffee, palm oil, rubber, soya, and wood—and items that contain them. It appears that the regulation would operate a lot like the U.S. Uyghur Forced Labor Prevention Act (UFLPA) in that it would put the burden of proof on the private importer or exporter rather than requiring the government to prove the linkage, and providing such proof would essentially require tracing the origin of the shipment through its supply chain back to its beginning.
The law has also been criticized as effectively discriminating against small farmers and landowners, who are generally the last to become aware of new rules, especially those in a foreign jurisdiction, and do not have the technology or resources needed to comply. Large agribusinesses that have seen this coming and are well resourced are in a much more advantageous position. There is an irony here. Much of the European Union’s regulation recently has gone after big companies, particularly in the high-tech sector, in the name of helping smaller companies compete more effectively. So, while the European Commission seems determined to strike a blow against Big Tech, particularly when it is American, the deforestation regulation would help Big Farm at the expense of the little guy. For example, Nestlé, Unilever, Mondelēz International, and Mars Wrigley support the regulation, and ADM, or the Archer-Daniels-Midland Company, has announced that it already has a verifiable supply chain for soybean oil and meal. CSIS
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Malaysia’s palm oil industry focuses on replanting and sustainability
MALAYSIA’S palm oil sector is taking proactive steps to address challenges related to ageing oil palm trees and stagnant yields, alongside increasing its commitment to global sustainability standards, according to recent statements from industry leaders.
The government has prioritised replanting efforts as a key strategy to boost productivity without expanding land use.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said there are approximately 450,000ha of oil palm trees over 25 years old, requiring rejuvenation.
In 2023, Malaysia made significant progress by replanting 132,000ha, representing 2.3% of the total planted area, an improvement over the previous year’s 97,130ha (1.7%).
To further enhance productivity, particularly among smallholders, the government is focusing on initiatives that include promoting the use of quality planting materials, adopting Good Agricultural Practices (GAP) and providing financial assistance for replanting.
“Smallholders, who manage 1.5 million ha of palm oil plantations, have faced lower replanting rates, with organised smallholders replanting at just 0.9% annually and independent smallholders at 0.2%.
“Increasing the annual replanting rate to 4% could significantly raise yields, potentially adding 1.5 million metric tonnes of crude palm oil (CPO) production annually without the need for more land,” Johari said in his opening remarks at the Malaysian Palm Oil Forum 2024 (MPOC 2024) today.
On the sustainability front, he said Malaysia is preparing to meet global environmental goals, particularly in light of the European Union Deforestation Regulation (EUDR).
This comes after the European Commission’s recent proposal to postpone the enforcement of the EUDR from its original date of Dec 30, 2024, to Dec 30, 2025, allowing producer countries additional time to comply.
Johari said Malaysia, which has committed to several international sustainability targets, including achieving net-zero greenhouse gas emissions by 2050 and reducing carbon intensity by 45% by 2030, sees this delay as an opportunity to align its policies further with global standards. The Malaysian Reserve
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Malaysia hopes EU legislators will be more accommodating on sustainable policies
- Malaysia to help small farmers comply with EU rules
- Malaysia says no issues with India import tax on edible oil palm
- Palm oil production seen exceeding 19 mln tons in 2024
KUALA LUMPUR, Oct 8 (Reuters) - Malaysia said on Tuesday it hopes European lawmakers will be "more accommodative" on sustainable policies, following a proposal by the European Commission last week to delay the implementation of a law that would ban imports of products linked to deforestation.
The proposed one-year delay would help give producing countries time to take the necessary steps to comply and rectify their policies, particularly for small farmers who may have trouble meeting the costs and standards of compliance, Malaysia Plantation and Commodities Minister Johari Abdul Ghani told a palm oil forum.
Indonesia and Malaysia, the world's largest producers of palm oil, have strongly opposed the EU law, calling it discriminatory and aimed at protecting the bloc's oilseeds market.
"In the engagements we have made with EU, we are ready to comply. We just need a little bit more time for our small holders... the government will assist them to comply," Johari told a news conference at the event.
Malaysia has an estimated 450,000 small-scale producers, contributing to about 27% of the country's total palm oil cultivation.
Johari said a transparent benchmarking criteria operated by EU regulators would also need to be closely looked over so as to not unfairly label producer countries as high-risk.
"In the spirit of trade fairness, we hope that the EU parliament will play a more accommodative role to address this matter," Johari said.
The EU policy, which requires companies selling soy, beef, coffee, palm oil and other products in the 27-nation bloc to prove their supply chains do not contribute to destruction of forests, was originally due to take effect on Dec. 30 this year. Reuters
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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
--------
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
--------
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
--------
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
--------
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
--------
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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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
--------
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
--------
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.
---------
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
--------
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
---------
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
--------
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.
For almost 30 years of expertise in the agri markets, UkrAgroConsult has accumulated an extensive database, which became the basis of the platform AgriSupp.
It is a multi-functional online platform with market intelligence for grains and oilseeds that enables to get access to daily operational information on the Black Sea & Danube markets, analytical reports, historical data.
You are welcome to get a 7-day free demo access!!! UK Agro Consult
--------
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
--------
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
--------
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
--------
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
--------
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.
For almost 30 years of expertise in the agri markets, UkrAgroConsult has accumulated an extensive database, which became the basis of the platform AgriSupp.
It is a multi-functional online platform with market intelligence for grains and oilseeds that enables to get access to daily operational information on the Black Sea & Danube markets, analytical reports, historical data.
You are welcome to get a 7-day free demo access!!! UK Agro Consult
--------
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
--------
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
--------
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
--------
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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