Headline News on Palm Oil. February 2021

​Read curated news that impacts the palm oil industry globally.
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Switzerland - ​What you need to know about Switzerland’s ‘palm oil’ referendum
The Swiss will cast their votes on March 7th on three different issues. One of them involves free trade agreement with Indonesia.
What interest does Switzerland have in an Asian country more than 11,000 km away?

Indonesia is the world’s largest producer of palm oil, a raw material that is much in demand in Switzerland, as it is elsewhere.

It is commonly used in food and other products.

However, “high customs duties and other barriers make it difficult to trade with Indonesia”, the Federal Council said. TheLocalCH

US - ​Popeyes Announces Plans To Remove Artificial Ingredients, Antibiotics
In other words, now is as good a time as any for Popeyes to announce new food quality and sustainability commitments as part of a 5-year plan facilitated by parent company Restaurant Brands International.

Those commitments extend from its food to its packaging. The “Restaurant Brands for Good sustainability plan” includes a vow from Popeyes to remove colors, flavors and preservatives from artificial sources from its fried chicken offerings by the end of 2022. The plan includes its signature chicken sandwich, which has dominated headlines since 2019, and has driven meteoric sales and spawned several copycats.​ Forbes

Uganda - ​Uganda Targets Doubling Palm Oil Production With Second Estate
Wilmar International Ltd.’s Ugandan unit is establishing the East African country’s second palm oil project, which is expected to double national output to as much as 80,000 tons.

Bidco Uganda Ltd. -- jointly owned by Wilmar, Josovina Commodities Pte Ltd. of Singapore and Bidco Africa Ltd. of Kenya -- is already producing as much as 40,000 tons of palm oil from its Bugala island estate on Lake Victoria.

It started planting on Buvuma island last month and targets to have 1,000 hectares under trees this year and 5,000 hectares in four years, according to Connie Masaba, head of the Ugandan agency supervising the project. Small-holder farmers producing for Bidco are expected to plant a total of 2,500 hectares by 2025, she said Wednesday by phone from the capital, Kampala.​ Bloomberg

Ghana - ​More than 500 youth to undergo training in oil palm
More than 500 youth in Kpando in the Volta Region are to undergo competency-based training in oil palm under the Agricultural Technical and Vocational Education Training (ATVET) initiative of the Government.

The competency-based training developed by Solidaridad in partnership with the Ghana Skill Development Initiative, under the implementation of the second phase of its Sustainable West Africa Palm Oil Programme (SWAPP II) training, sought to build the skills of the youth for employment and entrepreneurship in the oil palm sector. GhanaWeb

Switzerland - ​Swiss to Provide $71.8m Grant for Indonesia's Economic Development
Jakarta. The Swiss State Secretariat for Economic Affairs, or SECO, will provide grants of 65 million Swiss francs, or about $71.8 million, for the next four years to assist Indonesia’s economic development.
On Thursday, SECO renewed its economic development cooperation with Indonesia for 2021-2024 — making it the fourth cycle since the first one in 2009. 
“Over the next four years, SECO will provide at least 65 million Swiss francs in grants to support the new program. Our current engagement in Indonesia includes more than 30 active projects, in collaboration with 15 implementing partners and 10 ministries,” SECO director Marie-Gabrielle Ineichen-Fleisch told an online conference on Thursday. JakartaGlobe

Switzerland - ​Swiss May Back Indonesia Trade Deal Despite Palm Oil Concerns
Swiss voters look set to vote in favor of a trade deal with Indonesia, but could reject a ban on people covering their face in public, a poll for broadcaster SRG showed.

Support for the trade accord was at 52%, according to the poll by gfs.bern before a March 7 ballot. Voters are getting a say on the deal after a campaign by activists because of controversy over palm oil.

Enough Support
Swiss voters back a trade deal with Indonesia, a SRG poll found. Bloomberg

India - ​The New Farm Laws May Facilitate a Shift in India's Agricultural Export Policy
Increasing agricultural exports from $40 to $100 billion is deemed a ‘national imperative’ to double farmers’ incomes by 2022-23. But it is part of a global agri-business agenda.

The July 2020 report of the high-level expert group (HLEG) on agricultural exports, appointed in 2019, by the 15th Finance Commission, confirms the fulcrum role of the three farm laws to facilitate a shift in India’s agricultural export policy, from the previous framework of meeting domestic demands and exporting surplus to targeted exports prioritising the demands of overseas markets.

The mechanism elaborated in the report details the massive structural changes envisioned for farming, use of resources, land control, public procurement and food. Increasing agricultural exports from $40 to $100 billion is deemed a ‘national imperative’ to double farmers’ incomes by 2022-23. This grand plan is by all accounts not merely a ‘national plan’, but intrinsically part of a larger global agri-business agenda. TheWireIn

Switzerland commits $65 million in development aid to Indonesia
The Swiss government has allocated grant funding of $65 million (around CHF59 million) over a period of four years to the island nation.  

The amount set aside is for the 2021-2024 period and will focus on promoting “inclusive and sustainable development”, the State Secretariat for Economic Affairs (SECO) announced on Thursday. The new round of funding will focus on strengthening public governance in urban areas and improving competitiveness of small- and medium-sized enterprises.  
“The Swiss technical assistance will work in areas like skills development, decent work, tourism, urban development, as well as sustainability, including in commodity sectors such as palm oil,” said an official statement.  SwissInfo

WEF  - ​This is how much different commodities contribute to deforestation
New analysis shows that just seven agricultural commodities — cattle, oil palm, soy, cocoa, rubber, coffee and plantation wood fiber — accounted for 26% of global tree cover loss from 2001 to 2015. These agricultural commodities replaced 71.9 million hectares of forest during that period, an area of land more than twice the size of Germany.

As demand for food and other resources continues to grow, forests are often cleared to make way for new fields and plantations. Scientists estimate that over a quarter of tropical forests and just under half of temperate forests have been converted to production in human history.
Today, the majority of tree cover loss associated with the expansion of farms and plantations happens in the tropics, a troubling trend considering the vast carbon stocks and biodiversity held in rainforests. While we have a general understanding of where agribusiness has replaced forests, until now the world lacked information about the impact of specific products. WEF

CPOPC - ​Palm Oil: A Needed Factor in the Great Reset
There are grand visions of how developed countries must play a role in how countries develop with the upgrading of trade agreements to advance equality and sustainability in every sector. These visions are shared by the world’s top palm oil producing countries of Indonesia and Malaysia which have worked to bring development to every far-flung village in their countries so that no one is left behind. Unfortunately, a nasty impact of The Fourth Industrial Revolution for these countries is the use of technology to shame their efforts towards developed status.

To top off the discussions, palm oil producing countries must show through satellite mapping to have a higher level of forests than other tropical countries which produce little or non of it. The palm oil industries in Indonesia, Malaysia, Thailand, and Colombia have shown that the industry is at once, an important source of revenue that powers the development of producer countries and provides affordable cooking oil for impoverished peoples in developing countries.​ CPOPC

India - ​New tax to remove ‘palm oil advantage’, says India trade group
NEW DELHI (Feb 23): A new agriculture tax introduced by the Indian government will remove the “undue advantage” enjoyed by palm oil in the local market, according to an industry group.

India had reduced the import duty on crude palm oil (CPO) from 27.5 per cent to 15 per cent, effective Feb 2, 2021 in its Budget 2021.

However, this was offset by the newly introduced agriculture infrastructure and development cess of 17.5 per cent in the new national budget proposals, according to the Mumbai-based Solvent Extractors’ Association (SEA).​ Bernama

Asia - ​Concerns rise over SE Asian biodiesel feedstock quality
Biodiesel and renewable diesel producers are becoming increasingly concerned about the quality of palm oil mill effluent (POME) feedstock from southeast Asia.

Some traders have put the issue down to rapidly escalating demand and prices, encouraging suppliers to top up scarce supplies with inferior product.

South Korean producer SK Eco was forced to partially close its 250,000 t/yr biodiesel plant because of delivery of a bad batch of the raw material. ArgusMedia

Germany - ​German confectionery body renews calls for uniform EU supply chain law

Responsible design of supply and value chains and sustainability are important issues for the German confectionery industry, as it calls again for EU-wide legislation.​ ConfectioneryNews

Malaysia - ​Palm oil associations shocked by sudden cess hike
KUALA LUMPUR (Feb 22): Plantation associations say today they are surprised by the government's decision to raise the cess levied on crude palm oil (CPO) and crude palm kernel oil (CPKO).

A joint statement signed by nine industry associations said there was no engagement with the industry over the latest increase in cess, which is now RM16 per tonne, from RM14 previously. The cess was last increased in 2019 to RM14, from RM13 previously. TheEdgeMarkets

Uganda - ​Improved prices fuel harvest of immature palm oil fruits
Kalangala, Uganda | THE INDEPENDENT  |  Palm Oil fruit farmers have resorted to harvesting immature fruits because of improved prices. The price of the Fresh Fruit Bunch-FFB increased to Shillings 700 from Shillings 400 in December last year. The price has increased further to Shillings 831 a kilogram.

David Balironda, the Manager Kalangala Oil Palm Tree Out Growers Trust (KOPGT), says the increased prices have pushed farmers to harvest immature fruits. He, however, says this has led to the low-quality extraction rate in the mills, which has the potential of lowering the price of palm oil fruits.

He says some of the farmers are now facing different penalties including criminal charges at Kalangala Police Station for the unprofessional practice. TheIndependentUG

West Africa - ​Solidaridad West Africa to support Nigeria, Ghana in oil palm production – Stakeholders
Solidaridad West Africa says it is making progress in enabling governments in Nigeria and Ghana to support and work with farmers toward a more sustainable climate-smart oil palm production.
Stakeholders stated this in an interview with the News Agency of Nigeria (NAN) at the end of a two-day Civil Society Organisation (CSOs) Wrap-up Workshop organised by Solidaridad West Africa – Nigeria on Saturday in Uyo.

The workshop was organised under the National Initiatives for Sustainable and Climate-Smart Oil Palm Smallholders (NISCOPS) in West Africa being run by Solidaridad and IDH and funded by the Government of Netherlands. TheGuardianNG

India - ​Rs 65,000 Cr Spent On Import Of Edible Oil Should Go To Farmers: PM In NITI Aayog Meet
PM Narendra Modi informed that under the National Oil Seed Mission, the government has given tax exemption to edible oil companies and special arrangements are made to encourage farmers engaged in oilseed cultivation and palm oil cultivation, to increase the production. Under this, the government has set a target of 51 lakh hectares for the sowing of the Zayed season crops of the current crop year 2020-21 (July-June), which is 50% more than the previous season. It includes pulses along with oilseeds. The target of Zayed oilseed crops is 11.78 lakh hectares, which includes 6.57 lakh hectares of groundnut, 4.14 lakh hectares of sunflower, 97,000 hectares of sunflower and 10,000 hectares of other oilseed crops.​ RepublicWorld

Thailand - Bangkok Post Editorial - ​Fuel U-turn unfortunate
The Energy Ministry's decision to delay the plan to replace gasohol 91 with E20 -- a mix of 20% ethanol and 80% unleaded gasoline 95 -- is bad news for the country's efforts to combat worsening air pollution, especially PM2.5 fine dust particles.

E20 fuel is known to emit less health hazardous compounds during the combustion process -- including 24% lower levels of carbon monoxide and hydrocarbons, and 25% less PM2.5 dust while it contains 40% less benzene, a carcinogenic volatile organic compound. BangkokPost

Malaysia - ​Ensuring our palm oil adhere to international standards
The anti-palm oil campaigns and attacks on palm oil by the non-governmental organisations (NGOs) in the West continue to escalate.

Trade protectionism and unfair treatment such as the EU Delegated Acts, California Deforestation-Free Procurement Act and the no palm label are some of their efforts aimed at crippling our palm oil industry.

The government, through its agencies particularly the Malaysian Palm Oil Board, has been undertaking relentless efforts including diplomatic approach to address this long standing issue due to the importance of the country's bilateral relationships with the Western countries.​ NewStraitsTimes

Malaysia - ​Disruptive technology to drive innovation in palm oil industry — Minister
KUALA LUMPUR (Feb 17): The application of disruptive technologies will be the driver of innovations in all sectors including the palm oil industry, Minister of Plantation Industries and Commodities Datuk Dr Mohd Khairuddin Aman Razali said.

He said technologies have been innovated and improved to boost the effectiveness and competitiveness of the upstream, midstream, and downstream sectors of the oil palm industry.

"Oil palm yield and by-products can be enhanced by 23% compared with 19% through upgrading and improving the usage of technology at the plantation and production levels. TheEdgeMarkets

Bangladesh - ​Govt sets prices of edible oil in local markets
The government today set the prices of edible oil in the local markets to tame the skyrocketing price in the domestic markets, and to curb price manipulation by a section of unscrupulous traders.

The new prices will come into effect immediately, Commerce Minister Tipu Munshi said when he was briefing journalists after a meeting with major importers, traders, wholesalers and government high-ups at his secretariat office in Dhaka.
​TheDailyStar

India - (OPINION) ​How India can be ‘atmanirbhar’ for edible oil production
Edible oils are indispensable in the Indian kitchen. But it might be surprising to many that India imports most of the oil it consumes, unlike most other agricultural products which are produced locally.

Even after having a diverse agro-climatic conditions, abundant land and large sections of population depending on agriculture, why does India have to import edible oils? What is the burden of importing edible oils on the government’s exchequer? What can we do to boost the domestic production of edible oils? DownToEarth

UK - Mole Valley Farmers first to financially support responsible sourcing of soy and palm
Pig farmers buying compounds and blends from Mole Valley Farmers can be assured they’re doing their bit for the environment thanks to a commitment from the company to financially support responsible sourcing of soy and palm.

The British, farmer owned business is soon to become a full member of the Round Table on Responsible Soy Association (RTRS) and Round Table on Sustainable Palm Oil (RSPO).

This will mean that from October 2021, for every tonne of soy or palm they buy for use in compounds or blends, additional purchased ‘credits’ will be put towards the production of responsibly grown crops. This will encourage zero deforestation, good agricultural practices and responsible labour conditions. All additional costs will be absorbed by Mole Valley Farmers meaning there will be no impact on the cost per tonne at the farm gate. PigWorldUK

Malaysia's UCO exports hit record high in 2020
Malaysian used cooking oil (UCO) exports hit a record high of 456,000t last year, up by 42pc from 321,000t in 2019, customs data show. Exports were boosted by rising demand from Europe and Malaysia's emergence as a hub for regional volumes.

Singapore and the Netherlands were the two biggest buyers, taking 39pc and 31pc of the 2020 total respectively, according to Global Trade Tracker.

But Malaysia's net exports slumped by 76pc to 27,000t from 113,000t in 2019 as Covid lockdowns curtailed collections to as much as 50pc of pre-pandemic levels, while more UCO-based biodiesel capacity came on line.​ ArgusMedia

Indonesia - ​Palm oil biodiesel makes volatile bet for Indonesia's Pertamina
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Cost and ESG risks threaten state energy company's low-carbon pivot

JAKARTA -- Indonesian state energy company Pertamina has committed to palm oil biofuel as it follows the global shift away from fossil fuels, but high costs and international pressure over the industry's deforestation show this approach carries its own risks. NikkeiAsia

Philippines set to raise biodiesel blend to 5%
The Philippine Coconut Authority (PCA) is calling on the National Biofuels Board (NBB) to raise the Coco Methyl Ester (CME) content of biodiesel sold in the domestic market to 5%.

The present blend of biodiesel currently in the country consists of 2% CME and 98% regular diesel.
“The increase could effectively support our coconut farmers and farmworkers whose livelihoods are threatened by the declining prices of crude coconut oil (CNO) in the international market,” said Romulo J. de la Rosa, a PCA administrator.
The price of CNO has declined by over 40% in the last few months because of a glut in supply in the world market of vegetable oils. BiofuelsInternational

GLOBAL - ​500+ Scientists Demand Stop to Tree Burning as Climate Solution
A group of over 500 international scientists on Thursday urged world leaders to end policies that prop up the burning of trees for energy because it poses "a double climate problem" that threatens forests' biodiversity and efforts to stem the planet's ecological emergency.

The demand came in a letter addressed to European Commission President Urusla Von der Leyen, European Council President Charles Michel, U.S. President Joe Biden, Japanese Prime Minister Yoshihide Suga, and South Korean President Moon Jae-in. The signatories—including renowned botanist Dr. Peter Raven, president emeritus of the Missouri Botanical Garden—reject the assertion that burning biomass is carbon neutral. CommonDreams

Thailand - ​E20 plan put on hold due to higher biofuel prices
A plan to make gasohol E20 the primary fuel for motorists in July has been postponed indefinitely because of higher biofuel prices, creating a financial burden for the Oil Fuel Fund.

The Oil Fuel Fund Administration Office (Offo), which subsidises gasohol and biodiesel, found prices of ethanol and palm oil-made methyl ester have increased for many years, exceeding even those for pure gasoline and diesel.

Officials want E20, a mix of 20% ethanol and 80% unleaded gasoline 95, to replace gasohol 91, making gasohol 95 an alternative fuel for drivers. Yet the plan has faced several delays.​ BangkokPost

Philippines' PCA targets B5 biodiesel blend
The Philippines Coconut Authority (PCA) is pushing to increase the country's biodiesel mandate in transport to 5pc (B5) from 2pc currently.

B2 has been in place since 2009 but Covid-19 disruptions to the biodiesel supply chain meant the Philippines missed its target to achieve B5 in 2020. This was the second time the implementation was pushed back, having been forced to postpone the rollout in 2015 because of high coconut oil prices that would have pushed retail biodiesel prices higher without subsidy support. ArgusMedia

Liberia - Pres. Weah Hopes to Rekindle Interest in Agriculture, But Putting Plan into Action Remains a Daunting Task
KICKING OFF his first national county tour since assuming the Liberian presidency, President George Manneh Weah, in Gbarnga, Bong County last Friday to launch the National Agriculture Trade Fair, issued a clarion call to farmers’ organizations to adopt the business approach to agriculture in a bid to bolster sustainably toward commercialization.

THIS IS NOT THE FIRST time, President Weah – or any Liberian leader for that matter has made agriculture a centerpiece agenda item.​ FrontPageAfrica

Liberia - President Weah Announces U.S.$16 Million Funding for Private Sector Agriculture
President and First Lady Weah and other officials interact with farmers showcasing their produce at the National Agricultural Fair in Bong County, Friday, February 12, 2021.

Having embarked on his first county tour since election in 2017, President George Manneh Weah has says he is using the time to spread his "Back to the Soil" message, inspiring the citizenry to focus on agriculture production towards poverty alleviation.

On his first stop, Bong County, President Weah shared his agriculture vision with rural dwellers, mainly farmers, emphasizing the need for self-sufficiency in food production to bolster the Liberian economy and decrease the country's dependency on imported food. AllAfrica

Pakistan -  Oil Seed Board conceives plan to promote edible oil production
Pakistan Oil Seed Development Board has conceived a plan in order to promote oil seed production at micro level for producing pure and hygienic edible oil for domestic consumption.

The concept is aimed at to reduce the reliance on imported edible oil as well as for saving billion of dollars being spent on the import of different oils including palm and soyabean for tackling the domestic requirements, said Dr Ghulam Muhammad Ali Managing Director of Pakistan Oil Seed Development Board and Member Plant Sciences in Pakistan Agriculture Research Council. PakObserver

Switzerland - OPINIONS: ​‘We need a global vision of sustainability’
The issue of palm oil will loom large when Swiss go to the polls on March 7 to vote on a proposed free trade agreement with Indonesia. Referendum initiator Willy Cretegny says however that the stakes are even bigger: the entire concept of free trade is based solely on profit – to the detriment of resource management, he argues

The deal, which has already been formally ratified, aims to ease Swiss exports to Indonesia by removing almost all customs duties and certain technical obstacles to trade. Duties will be abolished on industrial goods and certain agricultural products coming into Switzerland, including palm oil, of which Indonesia is the world’s biggest exporter.​ SwissInfo

Malaysia - ​Disconnect between CPO and share price of planters
KUALA LUMPUR: There has been a disparity between crude palm oil (CPO) prices and local plantation counters, which is possibly affected by the environmental, social and governance (ESG) criteria resulting in lower interest and valuation for the plantation sector.

According to brokerage firms, planters’ share prices remained muted despite a rally in CPO prices.

This is because the market expects the price of CPO to weaken in the near term although the current high CPO prices are sustainable, said PublicInvest Research. TheStarMy

German Companies to Face Fines If Suppliers Abuse Human Rights
German companies from BASF SE to Volkswagen AG risk fines if their suppliers around the world breach human rights.

Under new legislation agreed to by Chancellor Angela Merkel’s government on Friday, companies will have to ensure their partners don’t engage in harmful practices and exploitation. In addition to penalties, German firms can also be excluded from public contracts. Bloomberg

Malaysia/ India - ​India imports over 500,000 tonnes of palm oil from Malaysia in January
NEW DELHI (Feb 13): India imported more than 500,000 tonnes of palm oil from Malaysia in January out of its overall edible oil imports of about 1.07 million tonnes.

The imports from Malaysia comprised 497,337 tonnes of crude palm oil (CPO), 9,204 tonnes of crude palm kernel oil and 2,701 tonnes of RBD palm olein, according to figures released by an industry group.

The Solvent Extractors' Association (SEA) said India’s CPO imports from Malaysia in January were more than 23% higher than the December purchase. TheEdgeMarkets

Thailand - ​Cabinet okays B8.8bn oil palm scheme
The cabinet on Tuesday approved in principle an 8.8-billion-baht budget for the state-sponsored price guarantee scheme for oil palm in the 2021 season.

The guaranteed price for fresh palm nuts is set at four baht per kg, for a limit of 25 rai per family. The scheme will run until September 2021.

To be eligible, planters must register with the Agriculture Extension Department and the money will be deposited directly into their Bank for Agriculture and Agricultural Cooperatives (BAAC) accounts, said deputy government spokeswoman Rachada Dhanadirek. BangkokPost

Malaysia - ​MPOB develops nutritious red palm oil-based snacks
KUALA LUMPUR: The Malaysian Palm Oil Board (MPOB) has produced a new concept of snack food with high commercial potential made from red palm oil.

Director-general Dr Ahmad Parveez Ghulam Kadir said the extruded snack food has already been commercialised in China, and this could further increase China’s demand for palm oil.

“This red palm-based snack is suitable for sale as a premium product in China where the population is health-conscious.​ TheStarMY

Global - ​Cutting down forests: what are the drivers of deforestation?
Every year the world loses around 5 million hectares of forest through deforestation. 95% of this occurs in the tropics. At least three-quarters of this is driven by agriculture – clearing forests to grow crops, raise livestock and produce products such as paper.1

If we want to tackle deforestation we need to understand two key questions: where we’re losing forests, and what activities are driving it. This allows us to target our efforts towards specific industries, products, or countries where they will have the greatest impact. OurWorldInData

Indonesia - ​International trade agreements will drive RI's economic recovery: govt
Jakarta (ANTARA) - Trade Minister Muhammad Lutfi highlighted his ministry’s efforts to step up non-oil and gas exports to bolster recovery of Indonesia's economy battered by the COVID-19 pandemic by optimizing international trade agreements.

"To achieve the non-oil and gas export growth target, we must open up the Indonesian market and collaborate with various countries through existing trade agreements. This is also an effort to increase the added value of each exported product," Lutfi noted in a statement here on Tuesday.​ AntaraNews

UK - ​Zeelandia sets target of 100% sustainable palm oil
Global baking ingredients company Royal Zeelandia Group has announced plans to make its use of palm oil 100% sustainable.

The target was set out in a recent case study published by the World Wide Fund (WWF) for Nature.

Production of palm oil, widely used as a cooking oil and ingredient, has been blamed for deforestation of tropical forests, threatening wildlife such as orangutans, elephants and tigers.​ BakeryInfo

Jersey - ​Duty reduction for biofuel to encourage greater use?
DUTY could be removed from environmentally friendly biofuel as a way to encourage more people to use it in future, the Infrastructure Minister has said.

However, Deputy Kevin Lewis also said that the removal of such a tax was only one of a number of ‘levers’ currently being considered as part of efforts to reduce the Island’s carbon footprint.

The minister, who was questioned on the subject in the States yesterday by Deputy Rob Ward, also said that while 1.75 million litres of RD100 renewable diesel fuel had been imported into Jersey last year, only 100,000 litres had been sold. JerseyEveningPost​

EU - (Research) ​To confront climate change, we need to understand the environmental footprint of global supply chains
In 2020, the Covid-19 pandemic upended international trade. Countries shut their borders, breaking the webs of supply chains that crisscross the globe. These systems of people, organisations and companies work to supply consumers with products, such as mobile phones, or services, like transportation. While some supply chains have since returned to a semblance of normality, understanding their extent – and how they interact – may be vital if humanity wants to confront its other great challenge: climate change.

The European Union’s Green Deal places environmental sustainability at the heart of future economic development and targets a climate-neutral economy by 2050. But in a world of globalised supply chains, the bloc must be careful not to outsource its environmental impact to other nations, say experts.​ HorizonMagazine

US - New legislation aiming to incentivise SAF production in the US
The Sustainable Aviation Fuel Act legislation to incentivise the production of sustainable aviation fuel (SAF) and help the aviation sector reduce carbon emissions has been introduced in the US.

The bill would create a new blender’s tax credit for SAF, linked to carbon reductions, as well as an Investment Tax Credit to help finance new SAF facilities and infrastructure.
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It would also authorise $1 billion (€0.83 billion) in federal funding for US projects that produce, transport, blend, or store SAF. BiofuelsInternational

Ethiopia - BKG Says Phibella Leading African Palm Oil Industrial Complex
Belayneh Kindie Group (BKG) said Phibella Industrial complex as been producing 1,500 tons of palm oil a day, which is the leading in Africa, using the imported fruit of the oil palms from China, Indonesia, Switzerland and others with a view to satisfying the national local palm oil consumption as well as to beefing up export market.

Briefing journalists yesterday in connection to Phibella Industrial complex official inauguration today, BKG Board Chairperosn Belayneh Kindie said the company is arduously working to well expand business in automobile, hotel industries apart from contributing its share to the development of the nation covering 60% of the oil demand at national level at present. AllAfrica

Malaysia - ​EXCLUSIVE-Buyers shun major Malaysian palm oil producers after forced labour allegations
KUALA LUMPUR, Feb 8 (Reuters) - Major palm oil buyers are seeking to block FGV Holdings and Sime Darby Plantations from their global supply chain after the United States banned imports from the two Malaysian producers, four sources told Reuters.

U.S. food company General Mills said it has issued global ‘no buy orders’ for both the companies, and the sources said other buyers have also requested suppliers to reduce or exclude FGV and Sime Darby products for supplies entering not only the United States, but also Europe, Australia and Japan.​ Reuters

UNEP- Our global food system is the primary driver of biodiversity loss
Food System Impacts on Biodiversity Loss, the new Chatham House report, supported by the UN Environment Programme (UNEP) and Compassion in World Farming, describes three actions needed for food system transformation in support of biodiversity, and sets out recommendations to embed food system reform in high level political events over the coming UN ‘Super Year’ for Nature.  

Our global food system is the primary driver of biodiversity loss, with agriculture alone being the identified threat to 24,000 of the 28,000 (86%) species at risk of extinction. The global rate of species extinction today is higher than the average rate over the past 10 million years. UNEP

Austria to end crediting biofuels from palm oil in July
The accounting of biofuels with a high risk of indirect land use change (iLUC) will end in Austria on 1 July.
The Union for the Promotion of Oil and Protein Plants (UFOP) welcomed the regulation of the Austrian Federal Government, pointing out that the draft law submitted by the German Federal Government at the end of 2020 to implement RED II provides for the exclusion of biofuels from palm oil.
From 2025, according to the draft, the crediting of biofuels from palm oil to the GHG quota would no longer be possible.
In France, the accounting of biofuels from palm oil ended on 1 January 2020.​ BiofuelsInternational

Unilever bets big on India market to bring in 20% of its global growth by 2030
Global consumer goods major Unilever is betting big on India and China to drive growth for the company going ahead.

Alan Jope, chief executive officer of Unilever said Hindustan Unilever Ltd (HUL) is a phenomenal business and the number one player in the country where it has a long history, unique network and strong consumer relationship. India currently contributes to 10 percent of Unilever's turnover and the company expects India to bring in 20 percent of Unilever's global growth by 2030.

"84 percent of the India business is winning volume share, with the most recent portfolio addition of Horlicks addition, which is doing very well. We see significant opportunity to develop that market further," Jope said during the analyst call on Thursday. CNBC

Indonesia - ​Jokowi Asks Muhyiddin to Join Fight against EU's Discriminatory Palm Oil Policies
Jakarta. World’s largest palm oil producers Indonesia and Malaysia reiterated their commitment to fighting off negative campaign and discriminatory policy against their palm oil-based products, when the leaders of both countries met in Jakarta on Friday.

In December 2019, Indonesia filed a complaint to the World Trade Organization over European Union’s campaign against palm oil using allegations of negative health and environmental impacts.

“Indonesia continues the fight against palm oil discrimination. Our fight will begin to bite if we do it together and Indonesia is hoping that Malaysia shares the same commitment regarding this palm oil issue,” Presiden Joko “Jokowi” Widodo said in a joint press conference with visiting Malaysian Prime Minister Muhyiddin Yassin at the State Palace. JakartaGlobe

South Korea - ​Hahn & Co. satisfies ESG criteria with SK Eco Prime takeover
Hahn & Company (Hahn & Co.) is accelerating investments taking into account environmental, social and corporate governance (ESG) criteria through the acquisition of companies engaging in eco-friendly businesses.

The private equity firm (PEF) took over SK Eco Prime, which was formerly SK Chemicals' biofuel operation, for 380 billion won ($340 million) in February last year to increase its investments in renewable energy.

This decision was made amid growing calls for businesses worldwide to focus more on fulfilling their social responsibilities through sustainable investments.

The European Union proposed the Renewable Energy Directive (REDII) for the promotion of energy from renewable sources in various sectors. The Ministry of Environment here also announced a plan last December to reduce greenhouse gas emissions in 2030 by 24.4 percent from the 2017 level to fight climate change.​ KoreaTimes

US - ​California Bill Targets Boreal & Tropical Forest Loss
A groundbreaking bill introduced today in California is tackling one of the most pressing environmental issues we face—the continued loss of climate-critical boreal and tropical forests. The image of burning forests in California has now become a symbol synonymous with climate change, the unearthly orange glow across the skies of Northern California heralding a new era of climate destruction that will only worsen without urgent, transformative action. Yet forest loss around the world isn’t just a symptom of climate change, but also a key driver, and today, California Assemblymember Ash Kalra has introduced a landmark bill that, if passed, would play a pivotal role in protecting two of the world’s most precious forests—the tropical rainforests and the North American boreal.

Assembly Bill 416, which is co-sponsored by NRDC, Friends of the Earth, Social Compassion in Legislation, and Peace 4 Animals, addresses the role that the California government’s consumption plays in driving the loss of these two forests NRDC

Germany lifts climate targets for transport sector
FRANKFURT (Reuters) - The German government approved a draft law on Wednesday to set a more ambitious target for the reduction of greenhouse gas emissions in the transport sector, aiming for 2030 levels to be 22% below those in 1990.

That compares with a current target of just over 6%.

Transport is a laggard compared with the electricity and heating sectors where a greater degree of decarbonisation has been achieved as renewable energy sources replace fossil fuels.

The government has said the target should be achievable because the European Union has already agreed tough new emissions rules for private passenger car fleets as well as truck tolls linked to CO2 emissions.​ REUTERS

Germany says it beat 2020 goal to cut greenhouse emissions
BERLIN — Germany's economy minister says the country beat its target of cutting greenhouse gas emissions by 40% last year compared to 1990 levels.

Peter Altmaier said figures show Germany's emissions of planet-heating gases were 42% lower in 2020 than three decades ago, confounding warnings that the country couldn't meet its goal.

While the coronavirus pandemic helped reduce emissions, Altmaier said the target might have been achieved anyway even without the drop in economic activity because of the lockdown. StarTribune

Indonesia - ​As Jakarta works towards 100% biodiesel, environmentalists fear more tropical forest could be cleared to expand palm oil plantations
KUALA LUMPUR, Feb 4 (Thomson Reuters Foundation) - Indonesia's ambitious biodiesel programme will increase the risks of deforestation as more tropical forest could be cleared to grow palm oil, environmentalists have warned, urging policymakers to implement a long-term ban on new plantations.

Indonesia - which is home to the world's third-largest tropical forests but is also its biggest producer of palm oil - has steadily increased the portion in its biodiesel mandate derived from palm oil since 2018 to boost demand.

Looking to also curb costly fuel imports and its planet-heating emissions, the Southeast Asian country raised the "bio" content in its biodiesel to 30% in late 2019 from 20% the year before, with the rest being fossil fuel.​ Trust

India - ​Take up Palm Oil cultivation to enhance profits: Harish to Siddipet youth
Siddipet: Suggesting that youngsters take up agriculture as a profession, Finance Minister T Harish Rao has said that they can earn better income if they cultivate profitable crops such as Palm Oil, Mulberry, Chilli, some horticulture and commercial crops

Saying that they can earn income if they take up palm oil cultivation, the Finance Minister has said that the government is providing 75 per cent subsidy for farmers those who were taking up palm oil cultivation.

Since Siddipet district was recently permitted to cultivate the Palm oil cultivation, Rao has said that he will provide a free tour to Khammam district to the farmers to know everything about Palm Oil Cultivation.​ TelaganaToday

European Union - ​Record-high UCO prices squeeze EU Ucome margins
Record-high prices for used cooking oil (UCO) in Europe have piled pressure on production margins for Ucome biodiesel in the last couple of months, just as demand for road fuels across the continent falters under the weight of tightened lockdown restrictions.
The Argus UCO cif ARA quote hit a record $885/t in December last year and has since climbed a further $130/t to reach $1,015/t yesterday, the highest since Argus began assessing UCO on a cif ARA basis in February 2018. Inland values for UCO in Europe have also tracked imported prices higher, with the UCO ex-works Netherlands quote hitting €920/t ($1,109/t) on 22 January, the highest since Argus began assessing on this basis in August 2019. ArgusMedia
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Malaysia - ​Indirect Land Use Change As A Criterion To Determine Sustainable Biofuel Crop Production
In agriculture, DLUC happens when new or uncultivated land is used for farming or animal production. However,  when existing cropland production is diverted for other kinds of use, forcing the shortage of food, feed and material to be produced on new cropland elsewhere, this land expansion is called ILUC ( Malins, 2011).

As an example, rapeseed is a vegetable oil crop that is grown in EU. It is used as a vegetable oil for food  and the fibre is used as an animal feed. As human population increases, there is a need to clear more new land to produce more rapeseed  and this results in DLUC. When present rapeseed oil production is diverted for use as a biofuel, the shortage of rapeseed for food forces it and its substitutes e.g. soya and oil palm to be grown on new cropland elsewhere that leads to ILUC.

DLUC can be observed and measured directly while ILUC cannot be measured or observed directly. MPOC

Japan - ​Major Changes to the Japanese Biomass Market
​The Japanese biomass market is on the cusp of some major developments that will change the dynamics of the market in the coming years.
While Japanese biomass demand continued strong growth in 2020, upcoming policy changes will impact trade flows, supply and demand. Hawkins Wright estimates Japanese wood pellet demand was 1.8 million metric tons (MT) in 2020, up 20% on the year with little sign of slowing. We forecast wood pellet demand will grow 33% in 2021 and have identified over 4 gigawatts (GW) of woody biomass capacity in the pipeline (Figure 1). Japan’s Ministry of Economy, Trade and Industry has approved nearly 8 GW of woody biomass capacity under the feed-in-tariff (FiT), but many projects are not at an advanced development stage. Not all the 70-plus projects we have identified are expected to make it online, but approximately half are already under construction or financed. BiomassMagazine
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Europe needs to mandate the right green fuels for aviation
The faster the electrofuels industry can be developed, the more sustainable flights will be.

Could history be about to repeat itself? In a few weeks, Brussels will publish proposals to help the aviation industry reach its goal of net zero emissions by 2050. 

These proposals would impose an EU-wide requirement for a minimum amount of green aviation fuel to be injected into the tanks of every aircraft refuelling in the bloc, along with expected incentives to develop fuel production facilities.

The last time the EU decided to lead the global charge on reducing emissions in aviation — one of the most difficult sectors to decarbonise because of the energy efficiency of kerosene fuel for aircraft — it sparked an acrimonious battle with the US. FinancialTimes

Malaysia - Pineapple is the latest hype in IOI Corp's diversification push
KUALA LUMPUR (Feb 3): IOI Corp Bhd said that within the early months of 2022, the oil palm planter expects to reap a bountiful harvest of MD2 pineapples as well as other cash crops when they are ripe for harvest.

In a statement on its website yesterday (Feb 2), IOI Corp said that with the tenacity and persistency of its Tangkak, Johor-based Sagil Estate team, 25,000 MD2 pineapples have been planted each month since August 2020.

"By December 2020, a staggering 125,000 MD2 pineapples had been successfully planted with minimal workforce. These pineapples were intercropped between rows of aromatic green dwarf/pandan coconut trees and other crops such as bananas and kenaf at Sagil Estate," IOI Corp said. TheEdgeMarkets

​Malaysia must formulate strategies to counter negative perception of palm oil
Currently, Malaysia accounts for 39 per cent of world palm oil production and 44 per cent of world exports. In terms of edible oils and fats, Malaysian palm oil accounts for 11 per cent of the world's production and 27 per cent of export trade.

The global palm oil market is expected to grow with the rising global population, increasing biofuels production, accelerating economic growth and growing application in various markets.

Despite its impressive performance, the palm oil industry is facing challenges at the global level that are affecting its market position. These, among others, are market penetration and restrictions due to health concerns, environmental issues, climate change and tariff and non-tariff trade barriers. NewStraitsTimes

Solidaridad - ​Sustainability Priorities In The New Decade For Businesses In Asia
The value chain approaches to sustainability created islands of success but could not achieve scale to transform different sectors. In this decade, we will witness an increase in the regional approach to sustainability. BusinessWorld

UN - OPINION: Agency is key to reducing slavery – and boosting post-COVID growth
Giving people more control over their labour and the money it generates can both reduce slavery and spur significant economic growth. TRUST

UK - ​UK makes ASEAN 'high priority' for post-Brexit trade deals
JAKARTA -- The U.K. sees trade deals with Southeast Asian countries as a top priority now that it has officially left the European Union and looks for new commercial partners under a "Global Britain" slogan.

The U.K., which fully left the union at the end of 2020 after a transition period, has publicly stated that trade deals with countries like the U.S., Australia and New Zealand will be prioritized in coming months due to strong historical, cultural and economic and ties with Britain.

But "it is fair to say that ASEAN is an extremely high priority for us," Jon Lambe, U.K. ambassador to the Association of Southeast Asian Nations, said in a recent interview with Nikkei Asia, referring to the group's 10 countries.​ AsiaNikkei

India - ​Farm budget disappoints, makes little attempt to promote crop diversification
The government claims that the purpose of the three central farm laws, which the protesting farmers want to be withdrawn, is to make agriculture market driven. But the claims it made about procurement in the budget speech contradict that intention.

There hasn’t been a big increase in the share of wheat or rice procured by the previous or present governments though Finance Minister Nirmala Sitharaman tried to score points with the Opposition in her budget speech by claiming that her government’s payout to farmers had vastly increased.

Much of her budget speech on agriculture was directed at concerns that farmers protesting on the borders of Delhi have raised, though it has little to do with budget outlays.​ TheFederal

India - ​India Imposes Additional Tax on Palm Oil Imports to Help Farmers
India, the world’s biggest palm oil buyer, increased taxes on imports of the tropical oil’s crude variety to encourage farmers to boost domestic oilseed output.

Although the government cut the import duty on the crude variety to 15%, it imposed an additional levy of 17.5% to finance the development of agricultural infrastructure in the country, according to Finance Minister Nirmala Sitharaman’s budget speech in parliament Monday. The new taxes compare with a 27.5% duty, which was cut from 37.5% only in November.

Import duties on both crude soybean and sunflower oils were cut to 15% from 35%, while an additional tax of 20% was imposed. The effective taxes on the two vegetable oils stay the same even after the changes. Bloomberg

India - ​Lack of announcement on edible oil mission disappoints sector
The Solvent Extractors’ Association (SEA) of India has said that the edible oil industry was expecting the announcement of ‘National Mission on Edible Oils’ in the Budget in line with the Prime Minister’s vision of ‘Aatmanirbharata’. SEA said that disappointingly the Budget was silent on that front.

Welcoming the announcement of Agriculture Infrastructure and Development Cess (AIDC), Atul Chaturvedi, President of SEA, hoped in a statement that the revenue from cess on edible oils would be utilised for augmenting domestic production of oilseeds. 

“As per our understanding, effective import duty on CPO (crude palm oil) has gone up to 35.75 per cent (+ 5.50 per cent), while at the same time import duty on soya and sun oil has remained unchanged at 38.5 per cent. TheHinduBusinessLine

India - ​India's tax increase on crude palm oil imports could reduce shipments
MUMBAI — India has imposed an additional tax on crude palm oil imports as the world’s biggest importer of vegetable oils tries to build domestic agriculture infrastructure by taxing imports, Finance Minister Nirmala Sitharaman said on Monday.

India cut the basic import tax on crude palm oil to 15% from 27.5%, but imposed a 17.5% “cess” – a separate tax – on the imports, Sitharaman said in her federal budget speech.

The cess would provide resources for “an immediate need to improve agricultural infrastructure,” Sitharaman said.

The tax increase will narrow the duty gap between palm oil and other edible oils, which could reduce India’s palm oil imports and potentially put pressure on Malaysian palm oil prices.​ FinancialPost

Indonesia - ​Domestic Demand Keeps Indonesian Palm Oil Industry Afloat amid Sluggish Export Markets
Jakarta. The Indonesian palm oil industry, the biggest in the world, has suffered disruption during Covid-19. Although lockdown measures in export destinations have restricted the market, the demand for palm oil has increased domestically. 
“The year of 2020 was marked with market uncertainty due to Covid-19, indeed it has had a great impact not only on the palm oil industry but also Indonesia’s economy,” Tofan Mahdi, Head of Communications at Indonesian Palm Oil Association (Gapki), told Jakarta Globe on Friday. 
The association announced earlier that palm oil exports declined by some 11 percent in the first semester of 2020. JakartaGlobe

ASEAN - ​Regional free trade deals ‘key to Cambodian and ASEAN success’
Foreign investors and independent credit evaluators are echoing confidence in Cambodia in light of the series of free trade agreements (FTAs) both completed and being pursued by the Kingdom’s government. According to the ASEAN Briefing (AB), such FTAs could see the region become the world’s fourth-largest economy by 2030, comprising a consumer market estimated topping $4 trillion.

AB said that this economic achievement will be driven by four major forces. “Strong demographic trends, such as 65 percent of ASEAN’s population of 600 million moving into ‘middle-class’ status, the increase of foreign investment in the region, rising income levels and digital advances.”​ KhmerTimes

Nigeria - ​Firm to Address Crude Palm Oil Deficit in Nigeria
​Akuland Group Limited, owner of Akuland Farms has revealed that efforts were in top gear to address Crude Palm Oil (CPO) deficit in Nigeria and the West Africa region through its recently acquired 100 hectares palm plantation.

The Executive Director, Akuland Group Limited, Hajia Salamatu Salisu, made this known while addressing journalists at a media briefing to announce the recent acquisition of a 100 hectares palm plantation farm through a long term lease that will enable it meet up with the market demand of CPO product in the African region. ThisDayLive