Palm oil news - December 2024
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December 31, 2024
Indonesian President Prabowo announces planned expansion of oil palm plantations amidst growing demand
President Prabowo Subianto has revealed plan to expand oil palm plantations in Indonesia in an effort to meet demands of palm oil export that continuously increase annually.
The president cited that many countries needed palm oil for many commodities, such as for chocolate and even cosmetics production. Palm oil is also a strategic commodity in a number of countries.
“(When) I travel abroad, I feel that many countries are hopeful toward Indonesia, especially those who need our palm oil,” President Prabowo said on Monday, December 30, 2024.
He gave special instructions to governors across the archipelago to expand oil palm plantations in their respective regions.
“Our oil palm plantations are national assets, and I think in the future we have to expand our oil palm plantations,” Prabowo said.
In addition to the expansion, President Prabowo also ordered law enforcement institutions, such as the Indonesian Military (TNI) and the National Police (Polri), to strengthen the security of existing oil palm plantations.
The president also explains that palm oil has many positive sides, one of which is the absorption of carbon dioxide (CO2).
“They say it is threatening the environment, leading to deforestation. Oil palm is a tree, right,” he said.
The Ministry of Agriculture notes that the size of the country’s oil palm plantation area was recorded at 16.8 million hectares (Ha) in 2023. The plantation area had increased 6 million Ha, or a 56.6 percent increase from 2014.
The ministry said 50 percent of oil palm plantations in Indonesia are mostly privately-owned large plantations with an area of 8.4 million Ha. Meanwhile, 37 percent or 6.3 million Ha of palm oil plantations are societies-owned.
Spatially, the largest oil palm plantations are located in Riau with an area of 3.49 million Ha or 20.8 percent of the total national oil palm plantation.
Other provinces with large oil palm plantations are Central Kalimantan with a total land of 2.04 million Ha, North Sumatra 2.02 million Ha, and West Kalimantan 1.83 million Ha. Indonesia Business Post
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Prabowo wants more palm oil plantations, says not to fear deforestation
“I think, in the future, we also have to increase palm oil plantations. We don’t have to be afraid of endangering, what is it called, deforestation, right?” Prabowo said. https://www.thejakartapost.com/business/2024/12/31/prabowo-wants-more-palm-oil-plantations-says-not-to-fear-deforestation.html.
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Prabowo's Hapless Diplomacy
TEMPO.CO, Jakarta - Dubbed “the foreign policy president” by Susilo Bambang Yudhoyono for his supposed geopolitical savvy, Indonesian President Prabowo Subianto has stumbled over several foreign policy decisions. His approach of trying to please everyone, coupled with the selection of a foreign minister with little experience, has made the new government’s diplomacy seem directionless.
One of the policies that has sparked controversy is Prabowo's stance on the South China Sea conflict. In a meeting with Chinese President Xi Jinping on November 9, 2024, Prabowo suggested a solution to resolve the dispute through cooperation in overlapping areas. This approach is contrary to Indonesia's consistent stance in supporting international law, especially the 1982 United Nations Convention on the Law of the Sea (UNCLOS).
Prabowo's stance is akin to acknowledging China's claim to the nine-dash line that covers most of the South China Sea. This claim has long been a source of tension between China and Southeast Asian countries such as Vietnam and the Philippines. Criticism has poured in, both from within the country and from regional neighbors, who see Indonesia as undermining its position as a neutral country that supports the rule of law.
Ironically, just three days later, when meeting US President Joe Biden in Washington, DC, Prabowo issued a different statement. This time, he reaffirmed his support for UNCLOS, as if retracting his previous statement. This position change raised a big question: does Prabowo understand the geopolitical complexity of the South China Sea or is he simply playing the role of “superman” to gain a good image in the eyes of all parties?
Another blunder occurred in the policy of transferring drug convicts to their home countries, including sending Mary Jane Veloso back to the Philippines. This policy was carried out without a clear legal basis. Although his intention reflected concern for humanitarian issues—something different from President Joko Widodo's policy, which tended to support the death penalty—Prabowo's move was quite reckless. Indonesia still does not have any law regulating the transfer of prisoners between countries.
The absence of such a regulation was the reason Indonesia rejected Australia’s earlier request to repatriate Schapelle Corby in 2005. By opening the door to such a move, such as in the Mary Jane case, Prabowo risks giving the impression that Indonesia is easy to lobby. Now other countries, such as Iran, have begun making similar requests. This raises a dilemma: what will happen to Indonesian citizens who are on death row abroad?
The problem was compounded by the appointment of Sugiono as Foreign Minister. Many question his capabilities compared to more experienced career diplomats. Indonesia's foreign policy seems to be in limbo and directionless under Sugiono.
If this pattern continues, Prabowo risks making Indonesia lose credibility in the eyes of the world. The desire to please all parties without understanding the art of diplomacy will only make Indonesia a toothless Asian tiger, capable only of rhetoric. Tempo
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Indonesia Faces Costly Biofuel Expansion After Palm Oil Surges
(Bloomberg) -- Indonesian consumers, fuel retailers and palm oil producers are facing higher costs from the government’s plan to expand its biofuel program after the price of the tropical oil surged.
The nation plans to increase the volume of palm oil used in its biofuel mix from the start of the new year, and the government typically subsidizes sales of biodiesel to support its blending mandate. However, the jump in palm oil prices has made the cost of the biofuel much more expensive.
To pay for the subsidies, funds are collected from levies on palm oil exports, but that’s likely to fall short given current prices, according to Dida Gardera, part of the steering committee that directs the Oil Palm Plantation Fund Management Agency. The group manages the funds collected from levies.
Indonesia plans to raise the export levy, local news reported earlier this month, and Gardera said the agency was “still preparing the revision.” The nation is raising the volume of palm oil used in its biofuel mix to 40% from 35%, as the government seeks to reduce the import of fossil fuels.
Gardera added that B40 biodiesel will only be subsidized for the public service sector — about 7.5 million kiloliters — given the higher cost. That means fuel retailers will have to absorb the cost or pass it on to consumers. BNN Bloomberg
Indonesian President Prabowo announces planned expansion of oil palm plantations amidst growing demand
President Prabowo Subianto has revealed plan to expand oil palm plantations in Indonesia in an effort to meet demands of palm oil export that continuously increase annually.
The president cited that many countries needed palm oil for many commodities, such as for chocolate and even cosmetics production. Palm oil is also a strategic commodity in a number of countries.
“(When) I travel abroad, I feel that many countries are hopeful toward Indonesia, especially those who need our palm oil,” President Prabowo said on Monday, December 30, 2024.
He gave special instructions to governors across the archipelago to expand oil palm plantations in their respective regions.
“Our oil palm plantations are national assets, and I think in the future we have to expand our oil palm plantations,” Prabowo said.
In addition to the expansion, President Prabowo also ordered law enforcement institutions, such as the Indonesian Military (TNI) and the National Police (Polri), to strengthen the security of existing oil palm plantations.
The president also explains that palm oil has many positive sides, one of which is the absorption of carbon dioxide (CO2).
“They say it is threatening the environment, leading to deforestation. Oil palm is a tree, right,” he said.
The Ministry of Agriculture notes that the size of the country’s oil palm plantation area was recorded at 16.8 million hectares (Ha) in 2023. The plantation area had increased 6 million Ha, or a 56.6 percent increase from 2014.
The ministry said 50 percent of oil palm plantations in Indonesia are mostly privately-owned large plantations with an area of 8.4 million Ha. Meanwhile, 37 percent or 6.3 million Ha of palm oil plantations are societies-owned.
Spatially, the largest oil palm plantations are located in Riau with an area of 3.49 million Ha or 20.8 percent of the total national oil palm plantation.
Other provinces with large oil palm plantations are Central Kalimantan with a total land of 2.04 million Ha, North Sumatra 2.02 million Ha, and West Kalimantan 1.83 million Ha. Indonesia Business Post
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Prabowo wants more palm oil plantations, says not to fear deforestation
“I think, in the future, we also have to increase palm oil plantations. We don’t have to be afraid of endangering, what is it called, deforestation, right?” Prabowo said. https://www.thejakartapost.com/business/2024/12/31/prabowo-wants-more-palm-oil-plantations-says-not-to-fear-deforestation.html.
--------
Prabowo's Hapless Diplomacy
TEMPO.CO, Jakarta - Dubbed “the foreign policy president” by Susilo Bambang Yudhoyono for his supposed geopolitical savvy, Indonesian President Prabowo Subianto has stumbled over several foreign policy decisions. His approach of trying to please everyone, coupled with the selection of a foreign minister with little experience, has made the new government’s diplomacy seem directionless.
One of the policies that has sparked controversy is Prabowo's stance on the South China Sea conflict. In a meeting with Chinese President Xi Jinping on November 9, 2024, Prabowo suggested a solution to resolve the dispute through cooperation in overlapping areas. This approach is contrary to Indonesia's consistent stance in supporting international law, especially the 1982 United Nations Convention on the Law of the Sea (UNCLOS).
Prabowo's stance is akin to acknowledging China's claim to the nine-dash line that covers most of the South China Sea. This claim has long been a source of tension between China and Southeast Asian countries such as Vietnam and the Philippines. Criticism has poured in, both from within the country and from regional neighbors, who see Indonesia as undermining its position as a neutral country that supports the rule of law.
Ironically, just three days later, when meeting US President Joe Biden in Washington, DC, Prabowo issued a different statement. This time, he reaffirmed his support for UNCLOS, as if retracting his previous statement. This position change raised a big question: does Prabowo understand the geopolitical complexity of the South China Sea or is he simply playing the role of “superman” to gain a good image in the eyes of all parties?
Another blunder occurred in the policy of transferring drug convicts to their home countries, including sending Mary Jane Veloso back to the Philippines. This policy was carried out without a clear legal basis. Although his intention reflected concern for humanitarian issues—something different from President Joko Widodo's policy, which tended to support the death penalty—Prabowo's move was quite reckless. Indonesia still does not have any law regulating the transfer of prisoners between countries.
The absence of such a regulation was the reason Indonesia rejected Australia’s earlier request to repatriate Schapelle Corby in 2005. By opening the door to such a move, such as in the Mary Jane case, Prabowo risks giving the impression that Indonesia is easy to lobby. Now other countries, such as Iran, have begun making similar requests. This raises a dilemma: what will happen to Indonesian citizens who are on death row abroad?
The problem was compounded by the appointment of Sugiono as Foreign Minister. Many question his capabilities compared to more experienced career diplomats. Indonesia's foreign policy seems to be in limbo and directionless under Sugiono.
If this pattern continues, Prabowo risks making Indonesia lose credibility in the eyes of the world. The desire to please all parties without understanding the art of diplomacy will only make Indonesia a toothless Asian tiger, capable only of rhetoric. Tempo
--------
Indonesia Faces Costly Biofuel Expansion After Palm Oil Surges
(Bloomberg) -- Indonesian consumers, fuel retailers and palm oil producers are facing higher costs from the government’s plan to expand its biofuel program after the price of the tropical oil surged.
The nation plans to increase the volume of palm oil used in its biofuel mix from the start of the new year, and the government typically subsidizes sales of biodiesel to support its blending mandate. However, the jump in palm oil prices has made the cost of the biofuel much more expensive.
To pay for the subsidies, funds are collected from levies on palm oil exports, but that’s likely to fall short given current prices, according to Dida Gardera, part of the steering committee that directs the Oil Palm Plantation Fund Management Agency. The group manages the funds collected from levies.
Indonesia plans to raise the export levy, local news reported earlier this month, and Gardera said the agency was “still preparing the revision.” The nation is raising the volume of palm oil used in its biofuel mix to 40% from 35%, as the government seeks to reduce the import of fossil fuels.
Gardera added that B40 biodiesel will only be subsidized for the public service sector — about 7.5 million kiloliters — given the higher cost. That means fuel retailers will have to absorb the cost or pass it on to consumers. BNN Bloomberg
December 29, 2024
Return of Trump May Shake Global Agricultural Markets in 2025, New Trade Order Likely
Impact of Trump on Global Agricultural Trade On January 20, Donald Trump of the Republican Party, will be sworn in as President of the United States for the second time. His persistent warnings of imposing tariffs on various countries may provoke retaliatory tariffs from other nations. This could reduce farmers' margins as they strive to remain competitive in the international market.
In 2024, the international agricultural market witnessed a notable decline in the prices of major grains, oilseeds, and sugar, while tropical crops like cocoa, coffee, and palm oil experienced price surges. Against this backdrop, farmers across the globe are entering the new year amid mounting risks from climate change and geopolitical uncertainties. After three to four decades of globalisation, the world is now transitioning toward a phase of economic and political de-globalisation. This shift accelerated in 2024 and is anticipated to intensify in the coming years. Some experts speculate that a potential Trump victory in the U.S. could mark a definitive turning point, signaling the end of globalisation.
Impact of Trump on Global Agricultural Trade
On January 20, Donald Trump of the Republican Party, will be sworn in as President of the United States for the second time. His persistent warnings of imposing tariffs on various countries may provoke retaliatory tariffs from other nations. This could reduce farmers' margins as they strive to remain competitive in the international market.
In 2023, the U.S. imported agricultural products worth $195 billion, including fruits and vegetables, sugar, cheese, vegetable oils, coffee, and cocoa. Experts predict that Trump may impose a 5-10% tariff on all imported goods within his first 100 days, with tariffs on Chinese imports potentially reaching 60%. This is likely to invite retaliatory tariffs against the U.S., affecting agricultural exports.
China, a major buyer of U.S. agricultural products, purchased 19% of U.S. agricultural exports in 2023. That year the US had an agri export of $34 billion. Experts warn that a tariff war with China could reduce U.S. agricultural exports by half by 2025. Over the past two years, Chinese retaliatory tariffs have caused a 37% drop in U.S. agricultural income, as China has increasingly sourced imports from other nations.
China's retaliatory tariffs are expected to impact U.S. soybean exports, as soybeans are its largest agricultural export to China. Over the past year, soybean prices have dropped by 25% in international markets. Any further action by China would exacerbate losses for U.S. soybean farmers. However, if a trade agreement is reached between the U.S. and the European Union (EU), the EU could shift soybean and soymeal imports from South America to the U.S. Rural Voice
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Kenya-State's big task to comply with EU deforestation regulations
Perhaps the biggest task that awaits the incoming Cabinet Secretary for Agriculture Mutahi Kagwe in the coming year is ensuring that Kenya complies with the European Union (EU) deforestation regulations whose compliance has since been extended.
On December 17, 2024, the European Union Parliament adopted the extension of these regulations, also known as EUDR, citing requests from EU countries, non-EU countries, and businesses.
The regulations are expected to be a game changer in the push for climate change policies as they will affect many markets, especially those that are agricultural based such as Kenya, as they restrict exports of produce or products associated with deforestation.
As such, Kenya and similar markets, need to prove that whatever they are exporting to the EU is not associated with cutting down of trees.
Coffee, according to the Ministry of Agriculture, is a major export to the EU which makes compliance to the EUDR critical.
“The EU accounts for 55 per cent of Kenya’s coffee exports, making compliance with these regulations essential to the success of Kenya’s coffee sub sector,” said the outgoing Cabinet Secretary Andrew Karanja in a statement.
According to the New Kenya Planters Co-operative Union, the coffee sector supports about 800,000 small-scale farmers. These farmers are based primarily in rural areas, where poverty levels are higher, hence low income and education levels.
Smallholders account for 75 per cent of the total acreage of coffee.
While Kenya exports much of its coffee to the EU, it does not feature among the top 10 markets whose largest share of products are subject to the EUDR according to the World Bank.
However, Uganda and Burundi, through coffee exports feature at positions five and six respectively. Standard Media
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Oil Palm Cultivation: The Andhra Pradesh Experience (Part -1)
‘Farmers Witness Agricultural Transformation with Oil Palm Cultivation’
Andhra Pradesh, particularly districts like West Godavari, is emerging as a success story in oil palm cultivation. Farmers in the region have embraced this crop, which combines high yields, ecological benefits, and impressive economic returns, making it a preferred choice for sustainable farming. Oil palm is a fast-growing perennial crop that begins to yield fruit within four years of planting. It remains productive for up to 25 years, with some trees continuing to bear fruit till 30 years. According to Dr. M.V. Prasad, Principal Scientist (Agricultural Extension) at the ICAR-Indian Institute of Oil Palm Research, the benefits extend beyond economic gains. Dense canopies and evapotranspiration processes in oil palm plantations contribute to higher local rainfall patterns, particularly in Andhra Pradesh. Contrary to concerns about soil erosion reported in other countries, farmers in Andhra Pradesh have noted improved soil structure and fertility. Oil palm plantations act as green carbon sinks, helping regulate temperatures and supporting India’s climate goals.
Oil palm cultivation has delivered unprecedented economic benefits to Andhra Pradesh farmers. Reports indicate average annual profits of Rs. 1 lakh per acre, with earnings potentially rising to Rs. 3-4 lakh per acre as the palms mature. Oil palm’s continuous harvesting potential ensures a steady income stream. In the initial years before full canopy coverage, farmers can grow additional crops to boost their earnings. Fertile soil post-harvest allows second-generation plantations, making it a long-term investment for farming families. The high profitability has attracted many young people back to agriculture. Former urban workers now see oil palm farming as a lucrative career, revitalizing rural economies and communities. In Eluru district is carved out of the part of old West Godavari District along with 8 mandals from old Krishna District, Oil Palm Cultivation is going on in about 5000 hector. Officials of ICAR-Indian Institute of Oil Palm Research said that by these season oil palm plantation will be taken up in another 2000 hectors additionally as per the demand of the farmers. Imphal Times
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Malaysia-Palm oil dealers to issue receipts or risk losing licences
KUALA LUMPUR: Beginning January, all palm oil dealers will be required to issue purchase receipts for commodities bought from smallholders, with non-compliance resulting in non-renewal of their licences.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani stressed the need for accurate weighing equipment to prevent fraud and safeguard smallholders' interests.
"Starting 2025, I have directed the Malaysian Palm Oil Board (MPOB) to ensure strict adherence to these regulations. Dealers must use accurate weighing scales to eliminate complaints from smallholders about faulty measurements," he said.
He highlighted frequent grievances from smallholders alleging dishonest practices by dealers, including inaccurate weighing.
"Whenever dealers purchase palm oil fruit from smallholders, they must provide a receipt detailing the tonnage, weight, and oil extraction rate (OER) for transparency," he said after attending the Malay Businessmen and Industrialist Association Malaysia (Perdasama) Annual General Meeting today.
Johari stressed that adherence to these procedures was mandatory. New Straits Times
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National Geographic study credits Sabah for having more flora and fauna than the continents of North America and Europe
Kota Kinabalu: Sabah has its own uniqueness in the context of environmental sustainability, said Natural Resources and Environmental Sustainability Ministry’s Deputy Secretary (Environmental Sustainability) Datuk Nor Yahati Awang.
“This is based on a wildlife study conducted by National Geographic which reveals that for an area of 10 square kilometres, Sabah has more flora and fauna than the continents of North America and Europe.
“As for river quality, over the eight-year period from 2016 to 2023, based on records in the Environmental Quality Report, no river in Sabah was categorised as polluted, despite the State having the most palm oil factories in Malaysia,” said Nor Yahati.
This achievement, she noted, was the result of cooperation and strong support from relevant government agencies in river management, as well as the responsible role played by palm oil industry stakeholders in Sabah. Daily Express
Return of Trump May Shake Global Agricultural Markets in 2025, New Trade Order Likely
Impact of Trump on Global Agricultural Trade On January 20, Donald Trump of the Republican Party, will be sworn in as President of the United States for the second time. His persistent warnings of imposing tariffs on various countries may provoke retaliatory tariffs from other nations. This could reduce farmers' margins as they strive to remain competitive in the international market.
In 2024, the international agricultural market witnessed a notable decline in the prices of major grains, oilseeds, and sugar, while tropical crops like cocoa, coffee, and palm oil experienced price surges. Against this backdrop, farmers across the globe are entering the new year amid mounting risks from climate change and geopolitical uncertainties. After three to four decades of globalisation, the world is now transitioning toward a phase of economic and political de-globalisation. This shift accelerated in 2024 and is anticipated to intensify in the coming years. Some experts speculate that a potential Trump victory in the U.S. could mark a definitive turning point, signaling the end of globalisation.
Impact of Trump on Global Agricultural Trade
On January 20, Donald Trump of the Republican Party, will be sworn in as President of the United States for the second time. His persistent warnings of imposing tariffs on various countries may provoke retaliatory tariffs from other nations. This could reduce farmers' margins as they strive to remain competitive in the international market.
In 2023, the U.S. imported agricultural products worth $195 billion, including fruits and vegetables, sugar, cheese, vegetable oils, coffee, and cocoa. Experts predict that Trump may impose a 5-10% tariff on all imported goods within his first 100 days, with tariffs on Chinese imports potentially reaching 60%. This is likely to invite retaliatory tariffs against the U.S., affecting agricultural exports.
China, a major buyer of U.S. agricultural products, purchased 19% of U.S. agricultural exports in 2023. That year the US had an agri export of $34 billion. Experts warn that a tariff war with China could reduce U.S. agricultural exports by half by 2025. Over the past two years, Chinese retaliatory tariffs have caused a 37% drop in U.S. agricultural income, as China has increasingly sourced imports from other nations.
China's retaliatory tariffs are expected to impact U.S. soybean exports, as soybeans are its largest agricultural export to China. Over the past year, soybean prices have dropped by 25% in international markets. Any further action by China would exacerbate losses for U.S. soybean farmers. However, if a trade agreement is reached between the U.S. and the European Union (EU), the EU could shift soybean and soymeal imports from South America to the U.S. Rural Voice
--------
Kenya-State's big task to comply with EU deforestation regulations
Perhaps the biggest task that awaits the incoming Cabinet Secretary for Agriculture Mutahi Kagwe in the coming year is ensuring that Kenya complies with the European Union (EU) deforestation regulations whose compliance has since been extended.
On December 17, 2024, the European Union Parliament adopted the extension of these regulations, also known as EUDR, citing requests from EU countries, non-EU countries, and businesses.
The regulations are expected to be a game changer in the push for climate change policies as they will affect many markets, especially those that are agricultural based such as Kenya, as they restrict exports of produce or products associated with deforestation.
As such, Kenya and similar markets, need to prove that whatever they are exporting to the EU is not associated with cutting down of trees.
Coffee, according to the Ministry of Agriculture, is a major export to the EU which makes compliance to the EUDR critical.
“The EU accounts for 55 per cent of Kenya’s coffee exports, making compliance with these regulations essential to the success of Kenya’s coffee sub sector,” said the outgoing Cabinet Secretary Andrew Karanja in a statement.
According to the New Kenya Planters Co-operative Union, the coffee sector supports about 800,000 small-scale farmers. These farmers are based primarily in rural areas, where poverty levels are higher, hence low income and education levels.
Smallholders account for 75 per cent of the total acreage of coffee.
While Kenya exports much of its coffee to the EU, it does not feature among the top 10 markets whose largest share of products are subject to the EUDR according to the World Bank.
However, Uganda and Burundi, through coffee exports feature at positions five and six respectively. Standard Media
--------
Oil Palm Cultivation: The Andhra Pradesh Experience (Part -1)
‘Farmers Witness Agricultural Transformation with Oil Palm Cultivation’
Andhra Pradesh, particularly districts like West Godavari, is emerging as a success story in oil palm cultivation. Farmers in the region have embraced this crop, which combines high yields, ecological benefits, and impressive economic returns, making it a preferred choice for sustainable farming. Oil palm is a fast-growing perennial crop that begins to yield fruit within four years of planting. It remains productive for up to 25 years, with some trees continuing to bear fruit till 30 years. According to Dr. M.V. Prasad, Principal Scientist (Agricultural Extension) at the ICAR-Indian Institute of Oil Palm Research, the benefits extend beyond economic gains. Dense canopies and evapotranspiration processes in oil palm plantations contribute to higher local rainfall patterns, particularly in Andhra Pradesh. Contrary to concerns about soil erosion reported in other countries, farmers in Andhra Pradesh have noted improved soil structure and fertility. Oil palm plantations act as green carbon sinks, helping regulate temperatures and supporting India’s climate goals.
Oil palm cultivation has delivered unprecedented economic benefits to Andhra Pradesh farmers. Reports indicate average annual profits of Rs. 1 lakh per acre, with earnings potentially rising to Rs. 3-4 lakh per acre as the palms mature. Oil palm’s continuous harvesting potential ensures a steady income stream. In the initial years before full canopy coverage, farmers can grow additional crops to boost their earnings. Fertile soil post-harvest allows second-generation plantations, making it a long-term investment for farming families. The high profitability has attracted many young people back to agriculture. Former urban workers now see oil palm farming as a lucrative career, revitalizing rural economies and communities. In Eluru district is carved out of the part of old West Godavari District along with 8 mandals from old Krishna District, Oil Palm Cultivation is going on in about 5000 hector. Officials of ICAR-Indian Institute of Oil Palm Research said that by these season oil palm plantation will be taken up in another 2000 hectors additionally as per the demand of the farmers. Imphal Times
--------
Malaysia-Palm oil dealers to issue receipts or risk losing licences
KUALA LUMPUR: Beginning January, all palm oil dealers will be required to issue purchase receipts for commodities bought from smallholders, with non-compliance resulting in non-renewal of their licences.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani stressed the need for accurate weighing equipment to prevent fraud and safeguard smallholders' interests.
"Starting 2025, I have directed the Malaysian Palm Oil Board (MPOB) to ensure strict adherence to these regulations. Dealers must use accurate weighing scales to eliminate complaints from smallholders about faulty measurements," he said.
He highlighted frequent grievances from smallholders alleging dishonest practices by dealers, including inaccurate weighing.
"Whenever dealers purchase palm oil fruit from smallholders, they must provide a receipt detailing the tonnage, weight, and oil extraction rate (OER) for transparency," he said after attending the Malay Businessmen and Industrialist Association Malaysia (Perdasama) Annual General Meeting today.
Johari stressed that adherence to these procedures was mandatory. New Straits Times
--------
National Geographic study credits Sabah for having more flora and fauna than the continents of North America and Europe
Kota Kinabalu: Sabah has its own uniqueness in the context of environmental sustainability, said Natural Resources and Environmental Sustainability Ministry’s Deputy Secretary (Environmental Sustainability) Datuk Nor Yahati Awang.
“This is based on a wildlife study conducted by National Geographic which reveals that for an area of 10 square kilometres, Sabah has more flora and fauna than the continents of North America and Europe.
“As for river quality, over the eight-year period from 2016 to 2023, based on records in the Environmental Quality Report, no river in Sabah was categorised as polluted, despite the State having the most palm oil factories in Malaysia,” said Nor Yahati.
This achievement, she noted, was the result of cooperation and strong support from relevant government agencies in river management, as well as the responsible role played by palm oil industry stakeholders in Sabah. Daily Express
December 25, 2024
Indonesia’s B40 Biodiesel Program to Reshape Global Palm Oil Market
The B40 policy is expected to support palm oil prices in 2025 by increasing domestic demand and tightening global supplies
Indonesia’s upcoming implementation of the B40 biodiesel program, raising palm oil content in biodiesel from 35% to 40% starting Jan. 1, 2025, is poised to drive up palm oil prices and reshape global market dynamics. The B40 policy is expected to support palm oil prices in 2025 by increasing domestic demand and tightening global supplies. Experts predict crude palm oil (CPO) futures could exceed 5,000 ringgit per metric ton ($1,130) in early 2025, with potential for a 10% to 15% price rally in early 2024 if the plan proceeds as scheduled.
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Indonesia’s 10% levy could cause CPO exports to plummet
JAKARTA: The Indonesian Palm Oil Association (Gapki) has warned that a plan to increase the levy on crude palm oil (CPO) exports to 10% next year could render local producers less competitive in the international market.
The government currently imposes a 7.5% levy on CPO exports, while a lower rate of between 3 and 6% of the reference price applies to refined palm oil products.
“Increasing the export levy will make Indonesian palm oil (exports) less competitive compared to neighbouring countries,” Gapki chairman Eddy Martono said on Sunday, as quoted by Bloomberg Technoz.
Coordinating Economic Minister Airlangga Hartarto said on Dec 19 that increasing the CPO export levy would help the government push forward with its mandatory 40% palm oil-based biodiesel (B40) programme, which starts in January.
He added that the levy would be implemented once the Finance Ministry had issued the relevant regulation, Reuters reported. The biodiesel programme aims to reduce the country’s reliance on imported diesel while ramping up demand for domestically produced vegetable oils.
The government trialed the B40 biofuel in July to power trains, as well as cars and trucks using the currently available B35 biodiesel blend.
However, businesses are concerned that the upgraded biodiesel programme, coupled with a higher levy, would lower the overall volume of CPO exports, especially amid stagnant domestic production. -- The Jakarta Post/ANN
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Palm Oil Falls on Weak Malaysia Exports, Competition With Soyoil
(Bloomberg) -- Palm oil fell on concerns about weak Malaysian exports and stiff competition from its main substitute, soybean oil.
Overseas shipments from Malaysia were 8.3% lower during the first 20 days of December from a month earlier, according to data from cargo surveyor Intertek Testing Services. Exports to India, the biggest buyer, slid almost 22%. Demand tends to drop during winter because it solidifies at colder temperatures.
Palm oil also continues to trade at a rare premium to soybean oil.
Weaker Malaysian exports and palm’s waning competitiveness is undermining sentiment, said Sathia Varqa, an analyst at Fastmarkets Palm Oil Analytics in Singapore. Some traders are also taking profits and squaring of positions ahead of the Christmas and year-end holidays, he added. Bloomberg
Indonesia’s B40 Biodiesel Program to Reshape Global Palm Oil Market
The B40 policy is expected to support palm oil prices in 2025 by increasing domestic demand and tightening global supplies
Indonesia’s upcoming implementation of the B40 biodiesel program, raising palm oil content in biodiesel from 35% to 40% starting Jan. 1, 2025, is poised to drive up palm oil prices and reshape global market dynamics. The B40 policy is expected to support palm oil prices in 2025 by increasing domestic demand and tightening global supplies. Experts predict crude palm oil (CPO) futures could exceed 5,000 ringgit per metric ton ($1,130) in early 2025, with potential for a 10% to 15% price rally in early 2024 if the plan proceeds as scheduled.
- Biodiesel allocation: Projected at 15.62 million kiloliters for 2025, up from 13.4 million kiloliters under B35.
- Palm oil use: Energy-related consumption could surge to 13.9 MMT, a significant increase from 11 MMT under B35.
- Export declines: Indonesia’s palm oil exports dropped 10% in November 2024, with further declines expected as B40 preparations intensify.
- Production limits: Slower production growth raises fears that global supply may not keep pace with escalating demand.
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Indonesia’s 10% levy could cause CPO exports to plummet
JAKARTA: The Indonesian Palm Oil Association (Gapki) has warned that a plan to increase the levy on crude palm oil (CPO) exports to 10% next year could render local producers less competitive in the international market.
The government currently imposes a 7.5% levy on CPO exports, while a lower rate of between 3 and 6% of the reference price applies to refined palm oil products.
“Increasing the export levy will make Indonesian palm oil (exports) less competitive compared to neighbouring countries,” Gapki chairman Eddy Martono said on Sunday, as quoted by Bloomberg Technoz.
Coordinating Economic Minister Airlangga Hartarto said on Dec 19 that increasing the CPO export levy would help the government push forward with its mandatory 40% palm oil-based biodiesel (B40) programme, which starts in January.
He added that the levy would be implemented once the Finance Ministry had issued the relevant regulation, Reuters reported. The biodiesel programme aims to reduce the country’s reliance on imported diesel while ramping up demand for domestically produced vegetable oils.
The government trialed the B40 biofuel in July to power trains, as well as cars and trucks using the currently available B35 biodiesel blend.
However, businesses are concerned that the upgraded biodiesel programme, coupled with a higher levy, would lower the overall volume of CPO exports, especially amid stagnant domestic production. -- The Jakarta Post/ANN
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Palm Oil Falls on Weak Malaysia Exports, Competition With Soyoil
(Bloomberg) -- Palm oil fell on concerns about weak Malaysian exports and stiff competition from its main substitute, soybean oil.
Overseas shipments from Malaysia were 8.3% lower during the first 20 days of December from a month earlier, according to data from cargo surveyor Intertek Testing Services. Exports to India, the biggest buyer, slid almost 22%. Demand tends to drop during winter because it solidifies at colder temperatures.
Palm oil also continues to trade at a rare premium to soybean oil.
Weaker Malaysian exports and palm’s waning competitiveness is undermining sentiment, said Sathia Varqa, an analyst at Fastmarkets Palm Oil Analytics in Singapore. Some traders are also taking profits and squaring of positions ahead of the Christmas and year-end holidays, he added. Bloomberg
December 24. 2024
COMMODITIES 2025: Biofuel policies seen boosting POME to top of feedstock price charts
By Aditya Kondalamahanty and David Chai
EU demand for palm oil mill effluent to strengthen in 2025
Indonesia's higher export taxes also support POME prices
Recent allegations of fraud add uncertainty to trade
From being seen as wastewater produced by palm oil mills to becoming one of the costliest biofuel feedstocks globally -- Palm Oil Mill Effluent, or POME, has come a long way in 2024 -- with Asian suppliers bullish on prices for 2025 due to pro-biofuel policies and overseas demand.
Asian spot prices of POME have climbed 50% by mid-December since S&P Global Commodity Insights first began assessing the Asian POME prices of both FOB Malaysia and FOB Indonesia at the start of 2024.
In comparison, prices of UCO FOB Straits rose by 13%, while UCO FOB North Asia was up by about 17% in the January to mid-December period, Commodity Insights data showed.
Much of this surge in POME prices came in the last quarter of the year after Indonesia, the world's largest palm oil supplier, significantly raised its export tax rate on the POME in October. This pushed the effective tax rate on POME to $92.38/mt in December, from a flat levy of $5-$25/mt earlier. SP Global
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Malaysia's VentureTECH drives renewable energy innovation with investment in MTC Orec
VentureTECH Sdn. Bhd., a Malaysia-based impact investment company, has on Monday announced a strategic investment in MTC Orec Sdn. Bhd. (MTC Orec), a bumiputera company in Malaysia specializing in the bioenergy sector.
The duo said in a statement that this partnership aims to accelerate the development of MTC Orec’s biomethane plants, underscoring both companies’ commitment to fostering sustainable growth and renewable energy innovation.
According to the statement, VentureTECH’s investment will facilitate the development of new biomethane plants in Malaysia’s Northern and East Coast regions.
Additionally, it will enable the execution of a biomethane project in partnership with a prominent oil and gas player, scheduled to commence in 2025.
These efforts are expected to contribute significantly to Malaysia’s renewable energy goals, foster sustainable growth, and strengthen the nation’s commitment to reducing carbon emissions.
This collaboration also highlights VentureTECH’s and MTC Orec’s shared vision for advancing Malaysia’s renewable energy ecosystem.
By championing impactful biogas projects, this partnership not only delivers long-term environmental, economic, and social benefits but also drives innovation and sustainability in Malaysia’s energy landscape, paving the way for a greener and more inclusive future.
MTC OREC is a firm involved in design, engineering, procurement, construction, and commissioning (EPCC) of biogas facilities, with a proven track record in converting waste into renewable energy.
Notably, the company developed one of the first palm oil mill effluent (POME)-based biomethane plant to directly inject biomethane into Malaysia’s national gas pipeline.
This achievement reflects MTC Orec’s leadership in aligning innovative solutions with Malaysia’s sustainability agenda. TN Global
---------
EUDR Delay and The First 100 Days of Prabowo's Presidency
By: Edi Suhardi (Natural Resource Dev't & Sustainability Analyst)
Indonesia has been highlighting the issues with the EUDR for over a year, and some of our concerns have been acknowledged. Now, it is our responsibility to address our internal challenges, while simultaneously strengthening the international cooperation framework and developing guidance for those in the supply chain.
The delay will allow the producing countries, especially Indonesia to address prevailing issues, such as the integrity of export commodity data, limitations of traceability systems, transparency on geo-location data, administrative processes and non-competitive export costs.
The EUDR when fully enforced will directly affect access to the EU market of seven products originating from both the third world and developed countries, namely timber, cattle, palm oil, rubber, coffee, cocoa and soy. There are five commodities exported by Indonesia that will be affected by the EUDR, notably, palm oil, timber, rubber, cocoa and coffee. However, due to the significance of export values and economic impacts to the country, the Indonesian palm oil will be the hardest hit.
Such delay comes just at an auspicious time when Indonesia has just had a new government under the president-elect. As a common practice in the country, the new president has always set up a kick-start milestone priority target of the first 100 days in office.
In his first 100 days as President, Prabowo needs to capitalize on the delay of EUDR implementation as an opportunity to ensure the country's preparedness in meeting the EUDR's requirements while simultaneously continuing to closely work with the EU policy makers to build consensus on mutually beneficial free and fair trade, especially engagement and consultation in preparation of implementing laws under the European Green Deal commitment. Sawit Indonesia
COMMODITIES 2025: Biofuel policies seen boosting POME to top of feedstock price charts
By Aditya Kondalamahanty and David Chai
EU demand for palm oil mill effluent to strengthen in 2025
Indonesia's higher export taxes also support POME prices
Recent allegations of fraud add uncertainty to trade
From being seen as wastewater produced by palm oil mills to becoming one of the costliest biofuel feedstocks globally -- Palm Oil Mill Effluent, or POME, has come a long way in 2024 -- with Asian suppliers bullish on prices for 2025 due to pro-biofuel policies and overseas demand.
Asian spot prices of POME have climbed 50% by mid-December since S&P Global Commodity Insights first began assessing the Asian POME prices of both FOB Malaysia and FOB Indonesia at the start of 2024.
In comparison, prices of UCO FOB Straits rose by 13%, while UCO FOB North Asia was up by about 17% in the January to mid-December period, Commodity Insights data showed.
Much of this surge in POME prices came in the last quarter of the year after Indonesia, the world's largest palm oil supplier, significantly raised its export tax rate on the POME in October. This pushed the effective tax rate on POME to $92.38/mt in December, from a flat levy of $5-$25/mt earlier. SP Global
--------
Malaysia's VentureTECH drives renewable energy innovation with investment in MTC Orec
VentureTECH Sdn. Bhd., a Malaysia-based impact investment company, has on Monday announced a strategic investment in MTC Orec Sdn. Bhd. (MTC Orec), a bumiputera company in Malaysia specializing in the bioenergy sector.
The duo said in a statement that this partnership aims to accelerate the development of MTC Orec’s biomethane plants, underscoring both companies’ commitment to fostering sustainable growth and renewable energy innovation.
According to the statement, VentureTECH’s investment will facilitate the development of new biomethane plants in Malaysia’s Northern and East Coast regions.
Additionally, it will enable the execution of a biomethane project in partnership with a prominent oil and gas player, scheduled to commence in 2025.
These efforts are expected to contribute significantly to Malaysia’s renewable energy goals, foster sustainable growth, and strengthen the nation’s commitment to reducing carbon emissions.
This collaboration also highlights VentureTECH’s and MTC Orec’s shared vision for advancing Malaysia’s renewable energy ecosystem.
By championing impactful biogas projects, this partnership not only delivers long-term environmental, economic, and social benefits but also drives innovation and sustainability in Malaysia’s energy landscape, paving the way for a greener and more inclusive future.
MTC OREC is a firm involved in design, engineering, procurement, construction, and commissioning (EPCC) of biogas facilities, with a proven track record in converting waste into renewable energy.
Notably, the company developed one of the first palm oil mill effluent (POME)-based biomethane plant to directly inject biomethane into Malaysia’s national gas pipeline.
This achievement reflects MTC Orec’s leadership in aligning innovative solutions with Malaysia’s sustainability agenda. TN Global
---------
EUDR Delay and The First 100 Days of Prabowo's Presidency
By: Edi Suhardi (Natural Resource Dev't & Sustainability Analyst)
Indonesia has been highlighting the issues with the EUDR for over a year, and some of our concerns have been acknowledged. Now, it is our responsibility to address our internal challenges, while simultaneously strengthening the international cooperation framework and developing guidance for those in the supply chain.
The delay will allow the producing countries, especially Indonesia to address prevailing issues, such as the integrity of export commodity data, limitations of traceability systems, transparency on geo-location data, administrative processes and non-competitive export costs.
The EUDR when fully enforced will directly affect access to the EU market of seven products originating from both the third world and developed countries, namely timber, cattle, palm oil, rubber, coffee, cocoa and soy. There are five commodities exported by Indonesia that will be affected by the EUDR, notably, palm oil, timber, rubber, cocoa and coffee. However, due to the significance of export values and economic impacts to the country, the Indonesian palm oil will be the hardest hit.
Such delay comes just at an auspicious time when Indonesia has just had a new government under the president-elect. As a common practice in the country, the new president has always set up a kick-start milestone priority target of the first 100 days in office.
In his first 100 days as President, Prabowo needs to capitalize on the delay of EUDR implementation as an opportunity to ensure the country's preparedness in meeting the EUDR's requirements while simultaneously continuing to closely work with the EU policy makers to build consensus on mutually beneficial free and fair trade, especially engagement and consultation in preparation of implementing laws under the European Green Deal commitment. Sawit Indonesia
December 23, 2024
EU deforestation laws postponed: will amendments render it toothless?
The EU Parliament contentiously adopted additional amendments proposed by the political groups, which critics have denounced as “watering down” the laws, or rendering them toothless. The original laws allowed for three classifications of deforestation risk: “high”, “low”, and “standard”. As of 14 November, a new category of countries has been introduced: those posing “no risk” on deforestation. Those countries deemed “no risk” owing to stable or increasing forest area development, would be under less obligations than other categories, however the classification criteria and process has not been clarified yet. The Commission intends to finalise a country benchmarking system by June 30, 2025.
A spokesperson for the European Parliament tells LSJ, “Basically these are most feasible outcomes: number one, the European Parliament (EP) convinces Council to agree to creation of a new category of countries posing ‘no risk’ on deforestation and it goes back to the European Parliament for formal adoption at first reading, which would probably be the last EP plenary of 2024 on December 16 to 19, and then Council formally adopts this.”
Alternatively, he says, “The EP does not convince Council about new category, but they both agree on the one-year postponement, and it goes back to the EP for formal adoption at first reading of the EP plenary mid-December, and then Council formally adopts this.”
Regardless of whether amendments are confirmed, when the regulations become mandatory for traders with the EU, they will impose checks, balances, and consequent expenses for agricultural exporters especially, which is why Australia lobbied hard for a postponement on these laws. In theory, if Australian companies comply, it would result in less land damage in Australia, and transparency around the impact Australian companies have on the land, wildlife, and climate at very least. Despite the federal government’s rhetoric on achieving zero carbon emissions within the next few decades, the reluctance to support – and comply with – EU deforestation laws exposes their lack of environmental credentials. LSJ
--------
Union Home Minister and Minister of Cooperation Shri Amit Shah addresses the 72ndPlenary meeting of the North Eastern Council (NEC) in Agartala, Tripura
Prime Minister Shri Narendra Modi ji has brought the Northeast into the focus of development with his vision and sensitivity
Modi government stands with the northeastern states for resolving their all problems
NEC is working to identify the needs and challenges of various sectors and provide effective solutions, playing a crucial role in determining the direction of development
The goal of the Modi government is to accelerate the pace of development in the Northeast and bring this region at par with the rest of India
Modi government is implementing the mantra of 'Act East, Act Fast, and Act First'
Efforts should be made to change the approach, training and focus of the police in every state of the Northeast, transforming the culture and direction of the police force
In last 10 years, 71% reduction in violent incidents and 86% decrease in civilian deaths in the Northeast has been registered and 10,574 insurgents have surrendered
Modi government has achieved success in establishing peace in the Northeast through various peace agreements
Time has come for every citizen of the Northeast to be given their constitutional rights of protection of property, dignity and their family, which are imbibed in the three new criminal laws
Modi government has attracted investors and worked towards opening global markets for the region,to accelerate the development of the Northeast PIB India
--------
Over-reliance on imports hampers India's edible oil self-sufficiency plan
The government’s recent decision to set up a National Mission on Edible Oils and Oilseeds to achieve self-reliance in edible oils in the next seven years does not inspire enough confidence in meeting the hitherto elusive objective. The reasons for the paucity of optimism on this count are many. For one, oilseed missions of this kind, and with similar mandates, have existed since the mid-1980s, but without much success. In fact, one such mission, called the National Mission on Edible Oils-Oil Palm (NMEO-OP), set up in 2021 with an outlay of Rs 11,040 crore, is in operation even now, though Business Standard
--------
President El-Sisi: industry, agriculture, education key to Egypt’s economic transformation
CAIRO – 22 December 2024: During his visit to the Police Academy, Egyptian President Abdel Fattah El-Sisi emphasized the critical need for intensified efforts in industry and agriculture, identifying these sectors as essential for economic diversification. He announced plans to expand Egypt’s agricultural land by 4 million acres by 2026, a move aimed at bolstering food security and supporting agro-industrial ventures.
This initiative, he explained, aligns with broader goals to enhance industrial output and reduce dependency on imports. "Focusing on industrialization can elevate Egypt to a new level of development," El-Sisi stated. "We must work collectively—government, investors, and entrepreneurs—to seize this opportunity."
The President also highlighted the broader financial challenges Egypt faces, revealing that the country requires annual expenditures ranging from $1 to $2 trillion, equivalent to nearly EGP 50 trillion, to meet developmental needs in sectors such as education, healthcare, defense, and investments. However, with a GDP of only 18 trillion Egyptian pounds and a national budget of just 3 trillion pounds, the disparity is stark. "This is the reality," he said. "It’s essential for the public to understand the scale of the challenge. A country like Egypt, with a population of 120 million, requires significant resources to thrive."
He further detailed efforts to enhance Egypt’s logistical infrastructure, particularly around the Suez Canal, which handles 12-13% of global trade. The President outlined plans to develop new logistics zones and strategic hubs along the canal, including partnerships with countries such as Indonesia to establish shared industrial zones and refine commodities like palm oil. These projects, he explained, aim to capitalize on Egypt’s strategic location to attract transit trade, create jobs, and add value to exported products. Egypt Today
EU deforestation laws postponed: will amendments render it toothless?
The EU Parliament contentiously adopted additional amendments proposed by the political groups, which critics have denounced as “watering down” the laws, or rendering them toothless. The original laws allowed for three classifications of deforestation risk: “high”, “low”, and “standard”. As of 14 November, a new category of countries has been introduced: those posing “no risk” on deforestation. Those countries deemed “no risk” owing to stable or increasing forest area development, would be under less obligations than other categories, however the classification criteria and process has not been clarified yet. The Commission intends to finalise a country benchmarking system by June 30, 2025.
A spokesperson for the European Parliament tells LSJ, “Basically these are most feasible outcomes: number one, the European Parliament (EP) convinces Council to agree to creation of a new category of countries posing ‘no risk’ on deforestation and it goes back to the European Parliament for formal adoption at first reading, which would probably be the last EP plenary of 2024 on December 16 to 19, and then Council formally adopts this.”
Alternatively, he says, “The EP does not convince Council about new category, but they both agree on the one-year postponement, and it goes back to the EP for formal adoption at first reading of the EP plenary mid-December, and then Council formally adopts this.”
Regardless of whether amendments are confirmed, when the regulations become mandatory for traders with the EU, they will impose checks, balances, and consequent expenses for agricultural exporters especially, which is why Australia lobbied hard for a postponement on these laws. In theory, if Australian companies comply, it would result in less land damage in Australia, and transparency around the impact Australian companies have on the land, wildlife, and climate at very least. Despite the federal government’s rhetoric on achieving zero carbon emissions within the next few decades, the reluctance to support – and comply with – EU deforestation laws exposes their lack of environmental credentials. LSJ
--------
Union Home Minister and Minister of Cooperation Shri Amit Shah addresses the 72ndPlenary meeting of the North Eastern Council (NEC) in Agartala, Tripura
Prime Minister Shri Narendra Modi ji has brought the Northeast into the focus of development with his vision and sensitivity
Modi government stands with the northeastern states for resolving their all problems
NEC is working to identify the needs and challenges of various sectors and provide effective solutions, playing a crucial role in determining the direction of development
The goal of the Modi government is to accelerate the pace of development in the Northeast and bring this region at par with the rest of India
Modi government is implementing the mantra of 'Act East, Act Fast, and Act First'
Efforts should be made to change the approach, training and focus of the police in every state of the Northeast, transforming the culture and direction of the police force
In last 10 years, 71% reduction in violent incidents and 86% decrease in civilian deaths in the Northeast has been registered and 10,574 insurgents have surrendered
Modi government has achieved success in establishing peace in the Northeast through various peace agreements
Time has come for every citizen of the Northeast to be given their constitutional rights of protection of property, dignity and their family, which are imbibed in the three new criminal laws
Modi government has attracted investors and worked towards opening global markets for the region,to accelerate the development of the Northeast PIB India
--------
Over-reliance on imports hampers India's edible oil self-sufficiency plan
The government’s recent decision to set up a National Mission on Edible Oils and Oilseeds to achieve self-reliance in edible oils in the next seven years does not inspire enough confidence in meeting the hitherto elusive objective. The reasons for the paucity of optimism on this count are many. For one, oilseed missions of this kind, and with similar mandates, have existed since the mid-1980s, but without much success. In fact, one such mission, called the National Mission on Edible Oils-Oil Palm (NMEO-OP), set up in 2021 with an outlay of Rs 11,040 crore, is in operation even now, though Business Standard
--------
President El-Sisi: industry, agriculture, education key to Egypt’s economic transformation
CAIRO – 22 December 2024: During his visit to the Police Academy, Egyptian President Abdel Fattah El-Sisi emphasized the critical need for intensified efforts in industry and agriculture, identifying these sectors as essential for economic diversification. He announced plans to expand Egypt’s agricultural land by 4 million acres by 2026, a move aimed at bolstering food security and supporting agro-industrial ventures.
This initiative, he explained, aligns with broader goals to enhance industrial output and reduce dependency on imports. "Focusing on industrialization can elevate Egypt to a new level of development," El-Sisi stated. "We must work collectively—government, investors, and entrepreneurs—to seize this opportunity."
The President also highlighted the broader financial challenges Egypt faces, revealing that the country requires annual expenditures ranging from $1 to $2 trillion, equivalent to nearly EGP 50 trillion, to meet developmental needs in sectors such as education, healthcare, defense, and investments. However, with a GDP of only 18 trillion Egyptian pounds and a national budget of just 3 trillion pounds, the disparity is stark. "This is the reality," he said. "It’s essential for the public to understand the scale of the challenge. A country like Egypt, with a population of 120 million, requires significant resources to thrive."
He further detailed efforts to enhance Egypt’s logistical infrastructure, particularly around the Suez Canal, which handles 12-13% of global trade. The President outlined plans to develop new logistics zones and strategic hubs along the canal, including partnerships with countries such as Indonesia to establish shared industrial zones and refine commodities like palm oil. These projects, he explained, aim to capitalize on Egypt’s strategic location to attract transit trade, create jobs, and add value to exported products. Egypt Today
December 22, 2024
Cooking with seed oil? Why experts are warning against it
Oil has been a kitchen essential for centuries now. People began using oil for cooking thousands of years ago, and the earliest evidence of oil use may be animal fat. Now, cooking oils are a kitchen staple that comes in all shapes, sizes, and flavors. And more interestingly, there’s an oil for every cooking need.
There’s coconut oil that has become popular for its unique taste and high smoke point, making it ideal for high-heat cooking. There’s avocado oil that offers a buttery flavor and is packed with healthy fats.
While each oil brings something different to the table as per its aroma and flavor, cooking oils also play a big role in your health.
Many oils, like olive and flaxseed, are loaded with heart-healthy fats that can help lower bad cholesterol and keep your heart happy. However, on the flip side, it’s essential to watch out for oils high in saturated fats, such as palm oil, if you’re trying to maintain a balanced diet.
Unlike other vegetable oils, which are derived from the fruit of a plant, seed oils are derived from the seed of a plant. For example, sunflower oil is made from sunflower seeds, making it a
seed oil, whereas olive oil is made from whole olives, the fruit of the plant.
Seed oils, such as canola, corn, and cottonseed oils, are staples of the Western diet. They are rich in omega-6 fats, which have been linked to increased inflammation in some studies. Inflammation, in turn, can fuel cancer growth by damaging tissues and weakening the body’s ability to fight tumors.
What does the research say?
A recent research by some experts at the University of California, Los Angeles (UCLA), focused on men with early-stage prostate cancer and observed notable differences in tumor progression based on dietary habits, suggests that dietary changes, such as different types of cooking oils, may play a role in slowing tumor growth in cancer patients.
The year-long study included 100 men with early-stage prostate cancer. Researchers divided participants into two groups. One group followed a diet low in omega-6 fats (found in seed oils) and high in omega-3 fats (found in fish like salmon). The other group continued their usual Western diet.
By the end of the study, participants who adjusted their diets showed a 15% decrease in tumor aggression markers. Meanwhile, the group on a standard Western diet saw a 24% increase in these markers. These results suggest that dietary fats may influence cancer progression. Times of India
---------
India's ‘Rural Voice Agriculture Conclave 2024’ to Focus on Institution Building for Farmers
The fourth Rural Voice Agriculture Conclave and NACOF Awards 2024 will be organized on December 23, coinciding with Farmers' Day, at the India Habitat Centre in New Delhi. The theme of this year’s event is ‘Building Institutions for Farmers’.
The media platform Rural Voice, dedicated to the prosperity of farmers and rural India, is entering its fifth year. On this occasion, the fourth Rural Voice Agriculture Conclave and NACOF Awards 2024 will be organized on December 23, coinciding with Farmers' Day, at the India Habitat Centre in New Delhi. The theme of this year’s event is ‘Building Institutions for Farmers’.
The program will feature prominent attendees, including Uttarakhand Cabinet Minister Dhan Singh Rawat, Union Agriculture Secretary Devesh Chaturvedi, Secretary of the Department of Animal Husbandry, Dairy and Fisheries Alka Upadhyay, Managing Director of IFFCO Dr. U.S. Awasthi, Chairman of KRIBHCO Dr. Chandrapal Singh, President of the Indian Dairy Association Dr. R.S. Sodhi, former MP and Chief Advisor to the Bihar Chief Minister K.C. Tyagi, and farmers from across the country.
Editor-in-Chief of Rural Voice, Harvir Singh, stated that entering its fifth year as a media platform dedicated to farmers and rural India is a significant milestone for Rural Voice. The platform was launched four years ago to highlight issues related to agricultural policies, the rural economy, new technologies, innovations, and farmers' concerns. Since then, ‘Rural Voice Agriculture Conclave and Awards’ have been organised annually on December 23. This year, experts, policymakers, business leaders, and farmer representatives will share their perspectives on various aspects of the theme ‘Building Institutions for Farmers’.
On this occasion, awards will be presented to farmers, cooperatives, private and public institutions for their outstanding contributions to agriculture. The event will also feature the release of the latest issue of the Rural World magazine and its website.
The first session of the conclave will focus on ‘Next-Generation Cooperatives for Next-Generation Agriculture’, with panelists including KRIBHCO Chairman Dr. Chandrapal Singh, Cooperative Election Authority Chairman Devendra Kumar Singh, Amul Managing Director Jayen Mehta, NFCSF Managing Director Prakash Naiknavare, and NCEL Managing Director Unupom Kausik.
The second session will discuss ‘Private Sector: Farmers’ Participation’ featuring Ajay Rana (CEO & MD, Savannah Seeds Private Limited), Rajiv Yadav (COO, Agrocorp India Trade Services Private Limited), and Sanjay Gakhar (Vice President, Business Development, MCX of India Ltd).
In the third session, former Agriculture Secretary Siraj Hussain, former IAS officer Sandeep Kumar Nayak, Bharat Krishak Samaj Chairman Ajayvir Jakhar, and former Director of IARI Dr. A.K. Singh will share their experiences on ‘Public Institutions for Farmers’.
The fourth session will be centered on ‘Enabling Policy Environment for the Growth of Institutions for Farmers’, with contributions from Union Agriculture Secretary Devesh Chaturvedi, former Agriculture and Food Secretary T. Nand Kumar, Indian Dairy Association President Dr. R.S. Sodhi, and Sahakar Bharati Chief Patron Dr. D.N. Thakur.
The concluding session will be addressed by Uttarakhand Cabinet Minister Dhan Singh Rawat, Secretary of the Department of Animal Husbandry, Dairy and Fisheries Alka Upadhyay, IFFCO Managing Director Dr. U.S. Awasthi, and former MP and Chief Advisor to the Bihar Chief Minister K.C. Tyagi. The conference will focus on strategies to increase farmers' income, provide them with market access, and strengthen institutions that support rural economy development. Rural Voice
Cooking with seed oil? Why experts are warning against it
Oil has been a kitchen essential for centuries now. People began using oil for cooking thousands of years ago, and the earliest evidence of oil use may be animal fat. Now, cooking oils are a kitchen staple that comes in all shapes, sizes, and flavors. And more interestingly, there’s an oil for every cooking need.
There’s coconut oil that has become popular for its unique taste and high smoke point, making it ideal for high-heat cooking. There’s avocado oil that offers a buttery flavor and is packed with healthy fats.
While each oil brings something different to the table as per its aroma and flavor, cooking oils also play a big role in your health.
Many oils, like olive and flaxseed, are loaded with heart-healthy fats that can help lower bad cholesterol and keep your heart happy. However, on the flip side, it’s essential to watch out for oils high in saturated fats, such as palm oil, if you’re trying to maintain a balanced diet.
Unlike other vegetable oils, which are derived from the fruit of a plant, seed oils are derived from the seed of a plant. For example, sunflower oil is made from sunflower seeds, making it a
seed oil, whereas olive oil is made from whole olives, the fruit of the plant.
Seed oils, such as canola, corn, and cottonseed oils, are staples of the Western diet. They are rich in omega-6 fats, which have been linked to increased inflammation in some studies. Inflammation, in turn, can fuel cancer growth by damaging tissues and weakening the body’s ability to fight tumors.
What does the research say?
A recent research by some experts at the University of California, Los Angeles (UCLA), focused on men with early-stage prostate cancer and observed notable differences in tumor progression based on dietary habits, suggests that dietary changes, such as different types of cooking oils, may play a role in slowing tumor growth in cancer patients.
The year-long study included 100 men with early-stage prostate cancer. Researchers divided participants into two groups. One group followed a diet low in omega-6 fats (found in seed oils) and high in omega-3 fats (found in fish like salmon). The other group continued their usual Western diet.
By the end of the study, participants who adjusted their diets showed a 15% decrease in tumor aggression markers. Meanwhile, the group on a standard Western diet saw a 24% increase in these markers. These results suggest that dietary fats may influence cancer progression. Times of India
---------
India's ‘Rural Voice Agriculture Conclave 2024’ to Focus on Institution Building for Farmers
The fourth Rural Voice Agriculture Conclave and NACOF Awards 2024 will be organized on December 23, coinciding with Farmers' Day, at the India Habitat Centre in New Delhi. The theme of this year’s event is ‘Building Institutions for Farmers’.
The media platform Rural Voice, dedicated to the prosperity of farmers and rural India, is entering its fifth year. On this occasion, the fourth Rural Voice Agriculture Conclave and NACOF Awards 2024 will be organized on December 23, coinciding with Farmers' Day, at the India Habitat Centre in New Delhi. The theme of this year’s event is ‘Building Institutions for Farmers’.
The program will feature prominent attendees, including Uttarakhand Cabinet Minister Dhan Singh Rawat, Union Agriculture Secretary Devesh Chaturvedi, Secretary of the Department of Animal Husbandry, Dairy and Fisheries Alka Upadhyay, Managing Director of IFFCO Dr. U.S. Awasthi, Chairman of KRIBHCO Dr. Chandrapal Singh, President of the Indian Dairy Association Dr. R.S. Sodhi, former MP and Chief Advisor to the Bihar Chief Minister K.C. Tyagi, and farmers from across the country.
Editor-in-Chief of Rural Voice, Harvir Singh, stated that entering its fifth year as a media platform dedicated to farmers and rural India is a significant milestone for Rural Voice. The platform was launched four years ago to highlight issues related to agricultural policies, the rural economy, new technologies, innovations, and farmers' concerns. Since then, ‘Rural Voice Agriculture Conclave and Awards’ have been organised annually on December 23. This year, experts, policymakers, business leaders, and farmer representatives will share their perspectives on various aspects of the theme ‘Building Institutions for Farmers’.
On this occasion, awards will be presented to farmers, cooperatives, private and public institutions for their outstanding contributions to agriculture. The event will also feature the release of the latest issue of the Rural World magazine and its website.
The first session of the conclave will focus on ‘Next-Generation Cooperatives for Next-Generation Agriculture’, with panelists including KRIBHCO Chairman Dr. Chandrapal Singh, Cooperative Election Authority Chairman Devendra Kumar Singh, Amul Managing Director Jayen Mehta, NFCSF Managing Director Prakash Naiknavare, and NCEL Managing Director Unupom Kausik.
The second session will discuss ‘Private Sector: Farmers’ Participation’ featuring Ajay Rana (CEO & MD, Savannah Seeds Private Limited), Rajiv Yadav (COO, Agrocorp India Trade Services Private Limited), and Sanjay Gakhar (Vice President, Business Development, MCX of India Ltd).
In the third session, former Agriculture Secretary Siraj Hussain, former IAS officer Sandeep Kumar Nayak, Bharat Krishak Samaj Chairman Ajayvir Jakhar, and former Director of IARI Dr. A.K. Singh will share their experiences on ‘Public Institutions for Farmers’.
The fourth session will be centered on ‘Enabling Policy Environment for the Growth of Institutions for Farmers’, with contributions from Union Agriculture Secretary Devesh Chaturvedi, former Agriculture and Food Secretary T. Nand Kumar, Indian Dairy Association President Dr. R.S. Sodhi, and Sahakar Bharati Chief Patron Dr. D.N. Thakur.
The concluding session will be addressed by Uttarakhand Cabinet Minister Dhan Singh Rawat, Secretary of the Department of Animal Husbandry, Dairy and Fisheries Alka Upadhyay, IFFCO Managing Director Dr. U.S. Awasthi, and former MP and Chief Advisor to the Bihar Chief Minister K.C. Tyagi. The conference will focus on strategies to increase farmers' income, provide them with market access, and strengthen institutions that support rural economy development. Rural Voice
December 21, 2024
Mercosur deal risks weakening EU anti-deforestation rules
A legal fight looms as EU and Mercosur countries don’t see eye to eye on a key clause of their fresh trade deal.
By Louise Guillot and Camille Gijs
New European Union rules to fight global deforestation haven’t even come into force yet, and already Latin American countries of the Mercosur bloc could have snatched a way around them.
That's thanks to a legal provision in the new EU-Mercosur trade deal signed in early December.
Mercosur countries, which include Brazil, Argentina, Uruguay and Paraguay, came out of the arduous trade negotiations claiming they had obtained a way to shield themselves from the EU's upcoming stringent environmental measures.
Read more at: https://www.politico.eu/article/mercosur-trade-deal-eu-anti-deforestation-regulation-environment-agriculture/#:~:text=The%20key%2C%20they,over%20its%20competitors.%E2%80%9D
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Greenpeace criticizes Prabowo administration, over climate environmental policies
Greenpeace Indonesia has raised concerns over the President Prabowo Subianto administration’s commitment to addressing climate and environmental issues, citing its lack of concrete action despite public statements at international forums.
Leonard Simanjuntak, Country Director of Greenpeace Indonesia, highlighted the government’s plan to achieve self-sufficiency in food and energy by designating Merauke, Papua, as a National Strategic Project (PSN).
The initiative, he warned, poses a significant risk to Indonesia’s climate goals as it could lead to the deforestation of 3 million hectares of forest in the region.
“Indonesia’s climate targets cannot be met solely through energy transitions; preserving Papua’s forests and other critical ecosystems is essential,” Leonard said during a discussion in Jakarta on Thursday, December 19, 2024.
The PSN projects, particularly in energy and agriculture − such as palm oil cultivation − are likely to create significant challenges for Indonesia’s efforts to meet its commitments under the Paris Agreement.
“We could face some of the most serious deforestation issues, especially in Southern Papua,” Leonard said.
Sekar Banjaran Aji, Forest Campaigner for Greenpeace Indonesia, also expressed concerns about the injustice faced by local communities due to the government’s approach in Merauke.
She emphasized that the current development strategies undermine efforts to protect forests and meet biodiversity goals.
“With such policies, even the simplest conservation targets, such as maintaining biodiversity, will remain unachievable,” Sekar remarked.
Environmental and economic costs
A recent report by the Center of Economics and Law Studies (Celios) reveals that the Merauke Food Estate project could result in additional carbon emissions of 782.45 million tons of CO2, equivalent to an economic loss of approximately Rp47.73 trillion (US$2.9 billion).
The large-scale deforestation required for the project could increase Indonesia’s global carbon emissions contribution from 1.96 percent to between 3.96 percent and 4.96 percent.
Greenpeace Indonesia has urged the government to reconsider projects that compromise environmental sustainability, emphasizing that the preservation of forests is vital for both national and global climate goals. Indonesia Business Post
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Need human rights research? Talk to the Global South
By Surya Deva, Talya Swissa
If a tea seller or a street vendor in Mumbai had drafted the United Nations Guiding Principles on Business and Human Rights, they might have looked very different. The focus on Global North research in academia needs to shift.
If a tea seller or a street vendor in Mumbai had drafted the United Nations Guiding Principles on Business and Human Rights (UNGPs), they might have looked very different.
This imaginary version would have included more practical advice tailored to small businesses and informal sectors. Perhaps it would contain fair trade practices with a specific focus on family-run businesses and small-scale producers.
Before we are misunderstood for denouncing the UNGPs, the point we are trying to make is that the person holding the pen has significant power over how something is framed, what’s included and what isn’t.
This also applies to the way corporate respect for human rights is researched.
Although a lot of research is conducted on issues facing communities and supply chain workers living in the Global South, very little is carried out by researchers who are physically based in those countries.
If we are serious about improving business respect for the human rights of the most vulnerable, this needs to change.
Presently, our framing of business and human rights is often shaped by the issues that matter to the Global North and its priorities.
We regularly talk about “multinationals and their supply chains’’ and this can limit discourse to a top-down perspective.
Although more than half of the world’s labour force is engaged in informal work, research on standards is rarely based on these workers’ lived experiences. There is no board of directors in a tea shop, nor is the environmental, social and governance (ESG) reporting framework – a set of guidelines that companies use to disclose information about their ESG performance – relevant for such an enterprise.
Stronger together
“Horizontal” collaboration between Global North and Global South researchers can lead to rich outcomes.
Take for example the Pontifical Catholic University of Chile. It recently assessed a group of publicly-listed Chilean companies on their business practices using the Corporate Human Rights Benchmark Core UNGP Indicators, drawn up by the World Benchmarking Alliance.
The university assessed companies based on evidence written in the companies’ native language. Their conclusions provided a more local, direct picture of how companies are communicating about human rights with workers, communities and policymakers. The resulting analysis was more accurate than it would have been if it only considered information made available in English.
Because the university had been engaging with local businesses, policymakers and other stakeholders on responsible business conduct for many years, they were able to frame the assessment and results in the most effective way to spur change.
As a result, 10 out of the 29 companies improved their assessment score from the previous year by at least 10 percentage points, with three jumping almost 30 percentage points. Eco Business
Mercosur deal risks weakening EU anti-deforestation rules
A legal fight looms as EU and Mercosur countries don’t see eye to eye on a key clause of their fresh trade deal.
By Louise Guillot and Camille Gijs
New European Union rules to fight global deforestation haven’t even come into force yet, and already Latin American countries of the Mercosur bloc could have snatched a way around them.
That's thanks to a legal provision in the new EU-Mercosur trade deal signed in early December.
Mercosur countries, which include Brazil, Argentina, Uruguay and Paraguay, came out of the arduous trade negotiations claiming they had obtained a way to shield themselves from the EU's upcoming stringent environmental measures.
Read more at: https://www.politico.eu/article/mercosur-trade-deal-eu-anti-deforestation-regulation-environment-agriculture/#:~:text=The%20key%2C%20they,over%20its%20competitors.%E2%80%9D
--------
Greenpeace criticizes Prabowo administration, over climate environmental policies
Greenpeace Indonesia has raised concerns over the President Prabowo Subianto administration’s commitment to addressing climate and environmental issues, citing its lack of concrete action despite public statements at international forums.
Leonard Simanjuntak, Country Director of Greenpeace Indonesia, highlighted the government’s plan to achieve self-sufficiency in food and energy by designating Merauke, Papua, as a National Strategic Project (PSN).
The initiative, he warned, poses a significant risk to Indonesia’s climate goals as it could lead to the deforestation of 3 million hectares of forest in the region.
“Indonesia’s climate targets cannot be met solely through energy transitions; preserving Papua’s forests and other critical ecosystems is essential,” Leonard said during a discussion in Jakarta on Thursday, December 19, 2024.
The PSN projects, particularly in energy and agriculture − such as palm oil cultivation − are likely to create significant challenges for Indonesia’s efforts to meet its commitments under the Paris Agreement.
“We could face some of the most serious deforestation issues, especially in Southern Papua,” Leonard said.
Sekar Banjaran Aji, Forest Campaigner for Greenpeace Indonesia, also expressed concerns about the injustice faced by local communities due to the government’s approach in Merauke.
She emphasized that the current development strategies undermine efforts to protect forests and meet biodiversity goals.
“With such policies, even the simplest conservation targets, such as maintaining biodiversity, will remain unachievable,” Sekar remarked.
Environmental and economic costs
A recent report by the Center of Economics and Law Studies (Celios) reveals that the Merauke Food Estate project could result in additional carbon emissions of 782.45 million tons of CO2, equivalent to an economic loss of approximately Rp47.73 trillion (US$2.9 billion).
The large-scale deforestation required for the project could increase Indonesia’s global carbon emissions contribution from 1.96 percent to between 3.96 percent and 4.96 percent.
Greenpeace Indonesia has urged the government to reconsider projects that compromise environmental sustainability, emphasizing that the preservation of forests is vital for both national and global climate goals. Indonesia Business Post
--------
Need human rights research? Talk to the Global South
By Surya Deva, Talya Swissa
If a tea seller or a street vendor in Mumbai had drafted the United Nations Guiding Principles on Business and Human Rights, they might have looked very different. The focus on Global North research in academia needs to shift.
If a tea seller or a street vendor in Mumbai had drafted the United Nations Guiding Principles on Business and Human Rights (UNGPs), they might have looked very different.
This imaginary version would have included more practical advice tailored to small businesses and informal sectors. Perhaps it would contain fair trade practices with a specific focus on family-run businesses and small-scale producers.
Before we are misunderstood for denouncing the UNGPs, the point we are trying to make is that the person holding the pen has significant power over how something is framed, what’s included and what isn’t.
This also applies to the way corporate respect for human rights is researched.
Although a lot of research is conducted on issues facing communities and supply chain workers living in the Global South, very little is carried out by researchers who are physically based in those countries.
If we are serious about improving business respect for the human rights of the most vulnerable, this needs to change.
Presently, our framing of business and human rights is often shaped by the issues that matter to the Global North and its priorities.
We regularly talk about “multinationals and their supply chains’’ and this can limit discourse to a top-down perspective.
Although more than half of the world’s labour force is engaged in informal work, research on standards is rarely based on these workers’ lived experiences. There is no board of directors in a tea shop, nor is the environmental, social and governance (ESG) reporting framework – a set of guidelines that companies use to disclose information about their ESG performance – relevant for such an enterprise.
Stronger together
“Horizontal” collaboration between Global North and Global South researchers can lead to rich outcomes.
Take for example the Pontifical Catholic University of Chile. It recently assessed a group of publicly-listed Chilean companies on their business practices using the Corporate Human Rights Benchmark Core UNGP Indicators, drawn up by the World Benchmarking Alliance.
The university assessed companies based on evidence written in the companies’ native language. Their conclusions provided a more local, direct picture of how companies are communicating about human rights with workers, communities and policymakers. The resulting analysis was more accurate than it would have been if it only considered information made available in English.
Because the university had been engaging with local businesses, policymakers and other stakeholders on responsible business conduct for many years, they were able to frame the assessment and results in the most effective way to spur change.
As a result, 10 out of the 29 companies improved their assessment score from the previous year by at least 10 percentage points, with three jumping almost 30 percentage points. Eco Business
December 20, 2024
Pertamina secures feedstock for Cilacap refinery’s SAF-HVO expansion
PT Pertamina entered an MOU with PT Gapura Mas Lestari for supply of biogenic feedstock to support the second phase of a renewable fuels production unit at PT KPI's Cilacap complex in Central Java.
Indonesia’s state-owned PT Pertamina has entered a memorandum of understanding (MOU) with PT Gapura Mas Lestari (PT GML) for supply of biogenic feedstock to support the second phase of a grassroots renewable fuels production unit at subsidiary PT Kilang Pertamina Internasional’s (PT KPI) 348,000-b/d Cilacap integrated refining and petrochemical complex in Central Java (OGJ Online, Sept. 18, 2023).
Under the MOU signed in early December, PT GML—will supply PT KPI used cooking oil (UCO) that will serve as feedstock for production of hydrotreated vegetable oil (HVO; biodiesel) and sustainable aviation fuel (SAF) at Phase 2 of the operator’s Cilacap Green Refinery Cilacap (CGR) project, PT KPI said in a mid-December release.
CGR Phase 2 aims to double CGR Phase 1’s current output by expanding processing of UCO at the site to 6,000 b/d to achieve an overall combined SAF-HVO production of about 300,000 kl/year, the operator said.
To be equipped with Topsoe AS’ proprietary HydroFlex process technology and most recently scheduled for startup in 2026, CGR Phase 2 will follow the June-2022 commissioning of CGR Phase 1 that has currently enabled the Cilacap refinery to produce 2,500-3,000 b/d of HVO with a maximum sulfur content of 5 ppm—as well as unidentified volumes of SAF and bionaphtha—via co-processing from a feedstock of refined bleached deodorized palm oil.
CGR Phase 2 also includes construction of associated infrastructure, including a palm oil treater, fractionator, and other unidentified offsite installations, PT KPI said in a July 2024 release.
In a release dated Oct. 27, 2023, Pertamina confirmed SAF produced at the Cilacap refinery via co-processing of palm oil components using the hydrotreated esters and fatty acids (HEFA) method was launched in its first commercial flights carried out by Garuda Indonesia, the country’s state-owned airline. OGJ
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Palm falls for fifth session amid Indonesia, US biofuel policy uncertainty
KUALA LUMPUR: Malaysian palm oil futures slipped on Thursday for a fifth straight session, weighed down by uncertainty over Indonesian and U.S. biofuel policies.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange closed down 0.38% at 4,512 ringgit ($1,002.00) a metric ton. During the session, the contract fell as much as 3% and had briefly gained 0.73%.
Crude palm oil prices extended their sell-off from Wednesday following a change in sentiments in the global vegetable oil markets this week, said Anilkumar Bagani, commodity research head at Mumbai-based Sunvin group.
“This was mostly due to the uncertainty over the Indonesia and U.S. biofuel policies amid higher vegetable oil prices, thus incurring higher subsidies for the respective programmes.”
Indonesia’s plan to expand its biodiesel mandate from Jan. 1, which could curb global palm oil supplies, looks increasingly likely to be implemented gradually, analysts said, as industry participants seek a phase-in period.
Edible oil prices tumble on US ethanol plan, record soybean supplies
A U.S. government funding bill released on Tuesday included a plan to allow year-round sales of gasoline with a higher ethanol blend, known as E15. Traders had said that higher blending of corn-based ethanol in the U.S. could reduce the demand for soybean oil used in making biodiesel.
Dalian’s most-active soyoil contract fell 3.48%, while its palm oil contract shed 3.83%. Soyoil prices on the Chicago Board of Trade rose 1.01%.
Palm oil tracks the price movements of rival edible oils as it competes for a share in the global vegetable oils market. Brerecorder
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Indonesia to hike crude palm oil export levy to 10pct
JAKARTA: Indonesia will increase its export levy for crude palm oil (CPO) to 10 per cent from the current 7.5 per cent to finance higher biodiesel subsidies, its chief economic minister said on Thursday.
The levy will be implemented once the relevant finance ministry regulation has been issued, Airlangga Hartarto said.
Indonesia, the world's top palm oil producer, collects levies to help subsidise its mandatory biodiesel programme, in which bio-content will be increased to 40 per cent, called B40, starting Jan. 1 from the current 35 per cent.
The higher blend is expected to increase the subsidy requirement.
BPDPKS, the agency in charge of collecting and managing the palm oil funds, estimated in November that increasing the mandatory blend of biodiesel to 40 per cent would increase the subsidy requirement by 68 per cent.
"There will be funding from BPDPKS ... First, we will increase the levy to 10 per cent," Airlangga said when asked about the subsidy financing.
Palm oil currently costs around $400 per metric ton more than crude oil.
Indonesia currently imposes a 7.5 per cent levy for CPO exports, while the levy for more refined palm oil products is charged at between 3.0 per cent and 6 per cent of the reference price.
Airlangga did not elaborate on the new levy rates for refined palm oil products.
Palm oil group GAPKI is concerned a higher levy will reduce the competitiveness of Indonesian exports, chairman Eddy Martono said.
"Compared to Malaysian palm oil, ours is more expensive due to levy, export tax and the domestic obligations. These are all burdensome," he said.
The benchmark palm oil contract in Kuala Lumpur, which fell as much as 3.58 per cent earlier on Thursday, pared most of its losses after Airlangga's comment. It was trading 0.33 per cent lower at 0937 GMT.
A senior official at the energy ministry said the government planned to allocate 15.62 million kilolitres of unblended biodiesel to fuel retailers next year, up from 13.4 million kilolitres allocated for B35 this year. New Straits Times
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WTO Panel established to review EU duties on imports of fatty acid from Indonesia
The Dispute Settlement Body (DSB) agreed at its meeting on 18 December to a request from Indonesia for the establishment of a panel to review the European Union’s anti-dumping duties on fatty acid imported from Indonesia.
DS622: European Union — Anti-Dumping Measures on Imports of Fatty Acid from Indonesia
Indonesia submitted its second request for the establishment of a panel to review the European Union's imposition of anti-dumping duties on fatty acids from Indonesia. The EU said it was not ready to accept Indonesia's first request for the panel at a DSB meeting on 25 November. Indonesia reiterated its right to protect its national interests and urged the EU to bring its measures into conformity with WTO provisions.
The European Union said it regretted Indonesia's decision to submit its second request, stating it firmly believed the measures were justified, and that it was confident it would prevail in the dispute. The EU also said it stands ready to preserve the availability of appeal review in this dispute through the Multi-party interim appeal arrangement (MPIA), a contingent measure to safeguard the right to appeal in the absence of a functioning Appellate Body.
The DSB agreed to the establishment of the panel. Brazil, Japan, Canada, Australia, China, the United States, the United Kingdom, Türkiye and the Russian Federation reserved their third party rights to participate in the proceedings. WTO
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Europe’s economic apocalypse is now
Stagnation, flagging competitiveness, Donald Trump. The continent is facing "an existential challenge."
By MATTHEW KARNITSCHNIG in Berlin
Europe is running out of time.
With Donald Trump poised to retake the White House in a few weeks and the continent’s economy in a deepening funk, the bedrock on which the region’s prosperity rests isn’t just developing fissures, it’s in danger of crumbling.
Europe’s economy has proved remarkably resilient in recent decades on the back of the bloc’s eastward expansion and strong demand for its wares from Asia and the United States. But as China’s long-running boom winds down and trade tensions with Washington blur the transatlantic trade picture, the salad days are clearly over. Politico
Pertamina secures feedstock for Cilacap refinery’s SAF-HVO expansion
PT Pertamina entered an MOU with PT Gapura Mas Lestari for supply of biogenic feedstock to support the second phase of a renewable fuels production unit at PT KPI's Cilacap complex in Central Java.
Indonesia’s state-owned PT Pertamina has entered a memorandum of understanding (MOU) with PT Gapura Mas Lestari (PT GML) for supply of biogenic feedstock to support the second phase of a grassroots renewable fuels production unit at subsidiary PT Kilang Pertamina Internasional’s (PT KPI) 348,000-b/d Cilacap integrated refining and petrochemical complex in Central Java (OGJ Online, Sept. 18, 2023).
Under the MOU signed in early December, PT GML—will supply PT KPI used cooking oil (UCO) that will serve as feedstock for production of hydrotreated vegetable oil (HVO; biodiesel) and sustainable aviation fuel (SAF) at Phase 2 of the operator’s Cilacap Green Refinery Cilacap (CGR) project, PT KPI said in a mid-December release.
CGR Phase 2 aims to double CGR Phase 1’s current output by expanding processing of UCO at the site to 6,000 b/d to achieve an overall combined SAF-HVO production of about 300,000 kl/year, the operator said.
To be equipped with Topsoe AS’ proprietary HydroFlex process technology and most recently scheduled for startup in 2026, CGR Phase 2 will follow the June-2022 commissioning of CGR Phase 1 that has currently enabled the Cilacap refinery to produce 2,500-3,000 b/d of HVO with a maximum sulfur content of 5 ppm—as well as unidentified volumes of SAF and bionaphtha—via co-processing from a feedstock of refined bleached deodorized palm oil.
CGR Phase 2 also includes construction of associated infrastructure, including a palm oil treater, fractionator, and other unidentified offsite installations, PT KPI said in a July 2024 release.
In a release dated Oct. 27, 2023, Pertamina confirmed SAF produced at the Cilacap refinery via co-processing of palm oil components using the hydrotreated esters and fatty acids (HEFA) method was launched in its first commercial flights carried out by Garuda Indonesia, the country’s state-owned airline. OGJ
--------
Palm falls for fifth session amid Indonesia, US biofuel policy uncertainty
KUALA LUMPUR: Malaysian palm oil futures slipped on Thursday for a fifth straight session, weighed down by uncertainty over Indonesian and U.S. biofuel policies.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange closed down 0.38% at 4,512 ringgit ($1,002.00) a metric ton. During the session, the contract fell as much as 3% and had briefly gained 0.73%.
Crude palm oil prices extended their sell-off from Wednesday following a change in sentiments in the global vegetable oil markets this week, said Anilkumar Bagani, commodity research head at Mumbai-based Sunvin group.
“This was mostly due to the uncertainty over the Indonesia and U.S. biofuel policies amid higher vegetable oil prices, thus incurring higher subsidies for the respective programmes.”
Indonesia’s plan to expand its biodiesel mandate from Jan. 1, which could curb global palm oil supplies, looks increasingly likely to be implemented gradually, analysts said, as industry participants seek a phase-in period.
Edible oil prices tumble on US ethanol plan, record soybean supplies
A U.S. government funding bill released on Tuesday included a plan to allow year-round sales of gasoline with a higher ethanol blend, known as E15. Traders had said that higher blending of corn-based ethanol in the U.S. could reduce the demand for soybean oil used in making biodiesel.
Dalian’s most-active soyoil contract fell 3.48%, while its palm oil contract shed 3.83%. Soyoil prices on the Chicago Board of Trade rose 1.01%.
Palm oil tracks the price movements of rival edible oils as it competes for a share in the global vegetable oils market. Brerecorder
--------
Indonesia to hike crude palm oil export levy to 10pct
JAKARTA: Indonesia will increase its export levy for crude palm oil (CPO) to 10 per cent from the current 7.5 per cent to finance higher biodiesel subsidies, its chief economic minister said on Thursday.
The levy will be implemented once the relevant finance ministry regulation has been issued, Airlangga Hartarto said.
Indonesia, the world's top palm oil producer, collects levies to help subsidise its mandatory biodiesel programme, in which bio-content will be increased to 40 per cent, called B40, starting Jan. 1 from the current 35 per cent.
The higher blend is expected to increase the subsidy requirement.
BPDPKS, the agency in charge of collecting and managing the palm oil funds, estimated in November that increasing the mandatory blend of biodiesel to 40 per cent would increase the subsidy requirement by 68 per cent.
"There will be funding from BPDPKS ... First, we will increase the levy to 10 per cent," Airlangga said when asked about the subsidy financing.
Palm oil currently costs around $400 per metric ton more than crude oil.
Indonesia currently imposes a 7.5 per cent levy for CPO exports, while the levy for more refined palm oil products is charged at between 3.0 per cent and 6 per cent of the reference price.
Airlangga did not elaborate on the new levy rates for refined palm oil products.
Palm oil group GAPKI is concerned a higher levy will reduce the competitiveness of Indonesian exports, chairman Eddy Martono said.
"Compared to Malaysian palm oil, ours is more expensive due to levy, export tax and the domestic obligations. These are all burdensome," he said.
The benchmark palm oil contract in Kuala Lumpur, which fell as much as 3.58 per cent earlier on Thursday, pared most of its losses after Airlangga's comment. It was trading 0.33 per cent lower at 0937 GMT.
A senior official at the energy ministry said the government planned to allocate 15.62 million kilolitres of unblended biodiesel to fuel retailers next year, up from 13.4 million kilolitres allocated for B35 this year. New Straits Times
--------
WTO Panel established to review EU duties on imports of fatty acid from Indonesia
The Dispute Settlement Body (DSB) agreed at its meeting on 18 December to a request from Indonesia for the establishment of a panel to review the European Union’s anti-dumping duties on fatty acid imported from Indonesia.
DS622: European Union — Anti-Dumping Measures on Imports of Fatty Acid from Indonesia
Indonesia submitted its second request for the establishment of a panel to review the European Union's imposition of anti-dumping duties on fatty acids from Indonesia. The EU said it was not ready to accept Indonesia's first request for the panel at a DSB meeting on 25 November. Indonesia reiterated its right to protect its national interests and urged the EU to bring its measures into conformity with WTO provisions.
The European Union said it regretted Indonesia's decision to submit its second request, stating it firmly believed the measures were justified, and that it was confident it would prevail in the dispute. The EU also said it stands ready to preserve the availability of appeal review in this dispute through the Multi-party interim appeal arrangement (MPIA), a contingent measure to safeguard the right to appeal in the absence of a functioning Appellate Body.
The DSB agreed to the establishment of the panel. Brazil, Japan, Canada, Australia, China, the United States, the United Kingdom, Türkiye and the Russian Federation reserved their third party rights to participate in the proceedings. WTO
--------
Europe’s economic apocalypse is now
Stagnation, flagging competitiveness, Donald Trump. The continent is facing "an existential challenge."
By MATTHEW KARNITSCHNIG in Berlin
Europe is running out of time.
With Donald Trump poised to retake the White House in a few weeks and the continent’s economy in a deepening funk, the bedrock on which the region’s prosperity rests isn’t just developing fissures, it’s in danger of crumbling.
Europe’s economy has proved remarkably resilient in recent decades on the back of the bloc’s eastward expansion and strong demand for its wares from Asia and the United States. But as China’s long-running boom winds down and trade tensions with Washington blur the transatlantic trade picture, the salad days are clearly over. Politico
December 19, 2024
Indonesia's Gradual Biodiesel Expansion May Ease Palm Oil Supply Woes
Indonesia's intention to boost its biodiesel mandate beginning January 1, which has raised fears that it may limit global palm oil supplies, appears to be implemented gradually, analysts said, as industry participants want a phase-in period.
Indonesia, the world's largest producer and exporter of palm oil, intends to increase the necessary proportion of palm oil in biodiesel to 40% - known as B40 - from 35%, a strategy that has caused a spike in palm futures and may further pressure prices in 2025.
The plan is scheduled to be fully launched in the new year, according to the government of President Prabowo Subianto. However, industry observers predict that due to financial constraints and technological difficulties, the plan will likely be partially implemented before being fully adopted throughout the vast archipelago.
Ernest Gunawan, secretary general of the biofuel producers association APROBI, was present when fuel merchants asked for a two-month transition time during a meeting with government representatives and biodiesel producers last week. According to the sources.
The government has yet to provide producers with allocations to sell to gasoline retailers, something that usually happens by this time of year, according to APROBI, whose members manufacture fatty acid methyl ester (FAME) from palm oil to be blended with diesel fuel.
Financing the higher blend may also prove difficult for the government because palm oil is currently about $400 more expensive per metric ton than crude oil. Such gaps are filled by Indonesia using the money collected from palm oil export taxes, which are overseen by BPDPKS. Asia Business Outlook
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Indonesia's Virgin Forests Still Intact As Home For Biodiversity: GAPKI
JAKARTA – There have been many people trying to deny the existence of virgin forests in Indonesia, or saying their condition is much worse if compared to those in other countries. But in reality the virgin forests in Indonesia still function very well as home of its rich biodiversity.
Indonesia is not like Europe and North America. The two regions have converted their virgin forests to other non-forest functions since the beginning of their economic development implementation, greatly degrading their functions as home for biodiversity. The LCAworks study (2018) clearly shows the current condition of forests in the two regions as compared to those of Indonesia (Figure 2). The proportion of virgin forests or primary forests in the European Union and the United States is much lower than the proportion of virgin forests in Indonesia.
The total deforestation in Europe and North America has severely eroded their virgin forests, leaving only a fraction remaining. The studies of Sabatini et al. (2018) and Barredo et al. (2021) also revealed that the area of primary forests in Europe is currently only 1.4 million hectares spread across Finland, Ukraine, Bulgaria, and Romania. Likewise, in the United States, the only remaining virgin forest is only found in Alaska (Sumarwoto, 1992).
The loss of virgin forests in Europe and North America not only causes loss of forest cover, but also eliminates native biodiversity, both flora and fauna. Where is the typical biodiversity of mainland Europe and America today?
Unlike those in Europe and North America, the virgin forests in Indonesia are still quite extensive, relatively well preserved, and can still function as home of tropical biodiversity. It is also confirmed by the fact that native tropical vegetation and tropical animals such as Sumatran Tigers, Sumatran Elephants, rhinoceroses, orangutans, monkeys, macaques, birds, butterflies, and others still survive and thrive in their respective habitats across the archipelagic country. (*) (Mitos 7-04) GA{LOUnlike those in Europe and North America, the virgin forests in Indonesia are still quite extensive, relatively well preserved, and can still function as home of tropical biodiversity. It is also confirmed by the fact that native tropical vegetation and tropical animals such as Sumatran Tigers, Sumatran Elephants, rhinoceroses, orangutans, monkeys, macaques, birds, butterflies, and others still survive and thrive in their respective habitats across the archipelagic country. (*) (Mitos 7-04)Unlike those in Europe and North America, the virgin forests in Indonesia are still quite extensive, relatively well preserved, and can still function as home of tropical biodiversity. It is also confirmed by the fact that native tropical vegetation and tropical animals such as Sumatran Tigers, Sumatran Elephants, rhinoceroses, orangutans, monkeys, macaques, birds, butterflies, and others still survive and thrive in their respective habitats across the archipelagic country. (*) (Mitos 7-04) GA{Unlike those in Europe and North America, the virgin forests in Indonesia are still quite extensive, relatively well preserved, and can still function as home of tropical biodiversity. It is also confirmed by the fact that native tropical vegetation and tropical animals such as Sumatran Tigers, Sumatran Elephants, rhinoceroses, orangutans, monkeys, macaques, birds, butterflies, and others still survive and thrive in their respective habitats across the archipelagic country. (*) (Mitos 7-04)Unlike those in Europe and North America, the virgin forests in Indonesia are still quite extensive, relatively well preserved, and can still function as home of tropical biodiversity. It is also confirmed by the fact that native tropical vegetation and tropical animals such as Sumatran Tigers, Sumatran Elephants, rhinoceroses, orangutans, monkeys, macaques, birds, butterflies, and others still survive and thrive in their respective habitats across the archipelagic country. (*) (Mitos 7-04) GAPKI
---------
Palm oil tariffs hikes: Consumers bearing brunt of self-reliance push Centre's move exposes trade-off
Centre's move exposes trade-offs inherent in policymaking; intention to protect farmers is laudable, but policy’s immediate impact is inflationary, disruptive. https://thefederal.com/category/business/palm-oil-tariffs-hikes-consumers-bearing-brunt-of-self-reliance-push-162342
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Indonesia's Gradual Biodiesel Expansion May Ease Palm Oil Supply Woes
Indonesia's intention to boost its biodiesel mandate beginning January 1, which has raised fears that it may limit global palm oil supplies, appears to be implemented gradually, analysts said, as industry participants want a phase-in period.
Indonesia, the world's largest producer and exporter of palm oil, intends to increase the necessary proportion of palm oil in biodiesel to 40% - known as B40 - from 35%, a strategy that has caused a spike in palm futures and may further pressure prices in 2025.
The plan is scheduled to be fully launched in the new year, according to the government of President Prabowo Subianto. However, industry observers predict that due to financial constraints and technological difficulties, the plan will likely be partially implemented before being fully adopted throughout the vast archipelago.
Ernest Gunawan, secretary general of the biofuel producers association APROBI, was present when fuel merchants asked for a two-month transition time during a meeting with government representatives and biodiesel producers last week. According to the sources.
The government has yet to provide producers with allocations to sell to gasoline retailers, something that usually happens by this time of year, according to APROBI, whose members manufacture fatty acid methyl ester (FAME) from palm oil to be blended with diesel fuel.
Financing the higher blend may also prove difficult for the government because palm oil is currently about $400 more expensive per metric ton than crude oil. Such gaps are filled by Indonesia using the money collected from palm oil export taxes, which are overseen by BPDPKS. Asia Business Outlook
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Indonesia's Virgin Forests Still Intact As Home For Biodiversity: GAPKI
JAKARTA – There have been many people trying to deny the existence of virgin forests in Indonesia, or saying their condition is much worse if compared to those in other countries. But in reality the virgin forests in Indonesia still function very well as home of its rich biodiversity.
Indonesia is not like Europe and North America. The two regions have converted their virgin forests to other non-forest functions since the beginning of their economic development implementation, greatly degrading their functions as home for biodiversity. The LCAworks study (2018) clearly shows the current condition of forests in the two regions as compared to those of Indonesia (Figure 2). The proportion of virgin forests or primary forests in the European Union and the United States is much lower than the proportion of virgin forests in Indonesia.
The total deforestation in Europe and North America has severely eroded their virgin forests, leaving only a fraction remaining. The studies of Sabatini et al. (2018) and Barredo et al. (2021) also revealed that the area of primary forests in Europe is currently only 1.4 million hectares spread across Finland, Ukraine, Bulgaria, and Romania. Likewise, in the United States, the only remaining virgin forest is only found in Alaska (Sumarwoto, 1992).
The loss of virgin forests in Europe and North America not only causes loss of forest cover, but also eliminates native biodiversity, both flora and fauna. Where is the typical biodiversity of mainland Europe and America today?
Unlike those in Europe and North America, the virgin forests in Indonesia are still quite extensive, relatively well preserved, and can still function as home of tropical biodiversity. It is also confirmed by the fact that native tropical vegetation and tropical animals such as Sumatran Tigers, Sumatran Elephants, rhinoceroses, orangutans, monkeys, macaques, birds, butterflies, and others still survive and thrive in their respective habitats across the archipelagic country. (*) (Mitos 7-04) GA{LOUnlike those in Europe and North America, the virgin forests in Indonesia are still quite extensive, relatively well preserved, and can still function as home of tropical biodiversity. It is also confirmed by the fact that native tropical vegetation and tropical animals such as Sumatran Tigers, Sumatran Elephants, rhinoceroses, orangutans, monkeys, macaques, birds, butterflies, and others still survive and thrive in their respective habitats across the archipelagic country. (*) (Mitos 7-04)Unlike those in Europe and North America, the virgin forests in Indonesia are still quite extensive, relatively well preserved, and can still function as home of tropical biodiversity. It is also confirmed by the fact that native tropical vegetation and tropical animals such as Sumatran Tigers, Sumatran Elephants, rhinoceroses, orangutans, monkeys, macaques, birds, butterflies, and others still survive and thrive in their respective habitats across the archipelagic country. (*) (Mitos 7-04) GA{Unlike those in Europe and North America, the virgin forests in Indonesia are still quite extensive, relatively well preserved, and can still function as home of tropical biodiversity. It is also confirmed by the fact that native tropical vegetation and tropical animals such as Sumatran Tigers, Sumatran Elephants, rhinoceroses, orangutans, monkeys, macaques, birds, butterflies, and others still survive and thrive in their respective habitats across the archipelagic country. (*) (Mitos 7-04)Unlike those in Europe and North America, the virgin forests in Indonesia are still quite extensive, relatively well preserved, and can still function as home of tropical biodiversity. It is also confirmed by the fact that native tropical vegetation and tropical animals such as Sumatran Tigers, Sumatran Elephants, rhinoceroses, orangutans, monkeys, macaques, birds, butterflies, and others still survive and thrive in their respective habitats across the archipelagic country. (*) (Mitos 7-04) GAPKI
---------
Palm oil tariffs hikes: Consumers bearing brunt of self-reliance push Centre's move exposes trade-off
Centre's move exposes trade-offs inherent in policymaking; intention to protect farmers is laudable, but policy’s immediate impact is inflationary, disruptive. https://thefederal.com/category/business/palm-oil-tariffs-hikes-consumers-bearing-brunt-of-self-reliance-push-162342
--------
December 18, 2024
EU Parliament gives final approval to deforestation law delay
BRUSSELS, Dec 17 (Reuters) - The European Parliament gave its final approval on Tuesday to a one-year delay of Europe's landmark deforestation law, which from Dec. 2025 will ban the import of beef, soy and other goods linked to the destruction of forests.
The lawmakers' approval paves the way for European Union countries to also approve the delay, which they are expected to do this week - as a formality, with no changes. After that, the postponement will pass into law.
WHY IT'S IMPORTANT
The delay to the world-first policy to address deforestation is a blow to the EU's green agenda, which is facing pushback among industries from automakers, to airlines, who say EU measures to fight climate change are too onerous.
But the delay offers relief to the companies and countries that had opposed the policy. Brazil and Indonesia had branded the law protectionist and said it could exclude millions of poor, small-scale farmers from the EU market.
The EU law, which was initially due to take effect from Dec. 30, 2024, will require companies and traders placing soy, beef, coffee, palm oil and other products onto the EU market to provide proof their supply chain does not contribute to deforestation.
EU farmers would also be banned from exporting products cultivated on deforested or degraded woodlands.
CONTEXT
EU lawmakers had tried to also weaken parts of the policy, but those proposals were shelved in negotiations with EU countries. The two sides struck a deal earlier this month to simply delay the law by 12 months. Reuters
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Consumer goods sector increasing transparency
Paris, 17 December 2024, The Consumer Goods Forum’s (CGF) Forest Positive Coalition has today published its latest report, demonstrating that a growing group of FMCG businesses are leading the way in their voluntary commitments to end deforestation, forest degradation and habitat conversion.
Consumer goods businesses have improved transparency in their collaborative efforts to make progress towards eliminating deforestation and ecosystem conversion from global supply chains.
For the first time, 83% of Coalition members have – publicly and voluntarily – reported on their Deforestation- and Conversion-Free (DCF) individual commitments: 83% of member companies have disclosed aggregated data as to how much of their palm oil is DCF, 75% for soy, 75% for beef, and 62% for pulp & paper. The Consumer Goods Forum
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Malaysia hopes palm oil industry can be compliant with EU law when grace period ends
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani: With the extension, it will help us because we want to make sure that we have the proper polygons recorded for every estate and smallholders' land in order to create traceability.
KUALA LUMPUR (Dec 18): Malaysia hopes its palm oil industry will be fully compliant with the European Union's anti-deforestation policy before a newly agreed deadline, its commodities minister said on Wednesday.
The European Parliament approved on Tuesday a one-year delay on implementation of its landmark deforestation law, which bans the importation of palm oil, soy and other goods linked to the destruction of forests from Dec 30 next year.
The law which had initially been due to take effect this month and required companies and traders selling soy, beef, coffee, palm oil and other products in the EU market to provide proof their supply chains do not contribute to deforestation.
Malaysia and Indonesia, the world's largest exporters of palm oil, have previously complained that the law and implementation rules are discriminatory.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the extension would give big and medium size estates a year to comply while small farmers would be granted an additional six months on top of that.
"For the big players, almost all of them have complied but for the smallholders, some of it, is still a work in progress," he said.
"With the extension, it will help us because we want to make sure that we have the proper polygons recorded for every estate and smallholders' land in order to create traceability," he said on the sidelines of a Malaysia-China trade summit in Kuala Lumpur.
Asked about his views on a trade war between the US and China, Johari said it was not a concern for Malaysia.
China accounts for about 17.1% of Malaysia's trade and the US about 9.5%, he said.
"When there is a trade war between two countries, we also have to make sure that it will not affect us," he added. The EdgeMY
--------
CHINA'S PALM OIL PLAYERS INVITED TO EXPLORE OPPORTUNITIES IN MALAYSIA
Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani delivers his speech at the Leadership Session 'Strategic Synergy in Plantation Industries and Commodities: Mapping The Future Path for Malaysia and China' during the Malaysia-China Summit 2024 Prosperity Beyond 50 at the Malaysia International Trade and Exhibition Centre (MITEC).
KUALA LUMPUR, Dec 18 (Bernama) -- Malaysia is inviting China's palm oil companies to explore opportunities in the domestic industry.
Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani said he believes potential partnerships with Chinese companies based in Malaysia will be successful as feedstock is plentiful in the country while Chinese players have a wide market network.
"I would like to set out three important areas in which Malaysia is keen to welcome potential investors to explore. First, we are looking to leverage the circular economy concept across the palm oil industry. Specifically, waste can be converted to green energy in the form of biomass and biogas energy.
"Biomass energy can be obtained by incinerating palm by products such as mesocarp fibre, palm kernel shell and empty fruit bunch - steam generated will then move the turbines and generate electricity," he said during the Leadership Session 4 entitled "Strategy Synergy in Plantation Industries and Commodities : Mapping the Future Path for Malaysia and China" held in conjunction with the Malaysia-China Summit 2024 (MSC2024) here today.
He said biogas, on the other hand, can be obtained through methane capture from palm oil mill effluent (POME), where for example, a mill with an operating capacity of at least 60 tonnes per hour can generate between 5-7 megawatts (MW) of energy.
"If around 50 per cent of mills in the country can be outfitted with biomass and biogas capturing facilities, we will be able to generate around 1,100 MW of energy at over 200 locations across the country," he said.
The minister also cited sustainable aviation fuel (SAF), which was introduced as an initiative to decarbonise the aviation sector, as another area which presents both countries with numerous opportunities.
By 2027, Johari said the government plans to make SAF mandatory for all planes travelling to Malaysia, with a planned blending mandate beginning at 1.0 per cent .
"Second, in line with our goal to increase efficiency and production without expanding land area, we are always seeking new technology in implementing precision agriculture, such as smart farming and data driven decision making, as well as increasing mechanisation and automation across the supply chain.
"Third, attracting investments to upgrade our pre-existing mills. As at June 2024, there are around 448 palm oil mills of which a lot of these mills have been set up many years ago. Potential investors may work together with mill owners to upgrade these mills by equipping it with the latest technology. For example, the usage of artificial intelligence (AI) can increase operating efficiency by reducing oil losses and the dependency on labour," he said.
Elaborating further on the Malaysia-China bilateral relation in the industry, Johari said the Malaysian palm oil industry’s presence in China has been long established, with the Malaysian Palm Oil Board (MPOB) preparing to celebrate the 20th anniversary of the establishment of the Palm Oil Research and Technical Service Institute of Malaysian Palm Oil Board (PORTSIM) in Shanghai.
"PORTSIM aims to enhance market presence in China as well as provide technical support and advisory services for local enterprises," he said.
With growing uncertainty surrounding the global economy and increased geopolitical risk, Johari believes that Malaysia can continue to be a vital trading partner for palm oil.
"Our long established and well regulated industry is able to provide security of supply, excellent infrastructure along the entire supply chain as well as sustainability guarantees vis-a-vis the Malaysian Sustainable Palm Oil (MSPO) certification scheme.
"Due to our commitments to producing palm oil sustainably, we are focused on increasing production through unlocking higher yield instead of opening up new land to plant palm oil," he said.
Besides higher yield translating to more competitive prices for consumers, the minister said higher production will also unlock many more opportunities for the market, such as green energy. BERNAMA
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China’s leftover “gutter” cooking oil becomes bio-sustainable aviation fuel wonder
China’s notorious “gutter oil” was once a source of food safety scandals, but has undergone a green revolution that has made it worth more than kerosene.
The waste cooking oil that was used in every household to make food used to be poured into the sewers, where it caused pollution and was the subject of complaints. The oil would accumulate in sewers and was also used illicitly in food production. Now it is one of China’s most sought-after commodities, as it can easily be turned into sustainable bio-aviation fuel.
The price of recycled gutter oil has surged as a result, and where there was a surplus there is now a deficit. The price of bio-aviation fuel has surpassed that of new palm oil and soybean oil, thanks to its status as a key ingredient in sustainable aviation fuel (SAF).
Aviation biofuel has sparked the newfound demand. Produced from used cooking oil, SAF can reduce carbon emissions by up to 85% compared to traditional jet fuel multiplying its appeal for airlines desperate to go green. Price of gutter oil has soared to over CNY8,000 ($1,100) per tonne – making it more valuable than many premium store-bought extra virgin olive oil .
China has become a leading player in the global SAF supply chain, exporting approximately 1.82mn tonnes per year (tpy) of used cooking oil. The US alone imported over 1.36mn tonnes from China last year, as SAF adoption accelerates in the aviation industry.
International interest is so intense that Chinese industry players are advocating for export restrictions to ensure sufficient domestic supplies. Domestic demand for SAF now far exceeds production capacity, forcing a reassessment of export priorities. Some exchanges are even exploring futures contracts for used cooking oil, highlighting its growing importance as a commodity.
Ironically, the shift in value has flipped concerns about product integrity. “Producers are now accused of ‘contaminating’ gutter oil with cheaper pure palm oil to improve margins,” China-watcher Arnaud Bertrand joked in a social media post, contrasting this with the past, when the gutter oil was seen as rubbish and something to get rid of.
This transformation of gutter oil from a problem into a solution is a successful case of sustainable problem-solving – putting waste to service for the betterment of the environment. Once a health hazard, it is now a strategic resource supporting global decarbonisation efforts. MSN
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Malaysia Turns to China for Investments in Its Biomass Sector
(Bloomberg) -- Malaysia’s government is seeking investments from China to develop its biomass industry, according to a minister.
Each palm oil mill in Malaysia can produce 6 to 7 megawatts of electricity, Johari Abdul Ghani, the nation’s plantation and commodities minister, said at the Malaysia-China Summit 2024 on Wednesday. All the mills in the world’s second-biggest palm oil producer can produce 2,500 to 3,000 megawatts of electricity, he added.
“We have a lot of waste from the 448 palm oil mills,” Johari said. “This is an opportunity for the renewable energy sector.”
Malaysia has also invited Chinese investors to build Sabah’s and Sarawak’s first oleochemicals plants, according to the minister. He also called for Chinese investments into Malaysia’s green energy projects.
China is the biggest buyer of Malaysia’s agriculture commodities, with shipments valued at $4.4 billion in 2023. BNN Bloomberg
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Indonesia KPI partners with GML to boost aviation fuel production from used cooking oil
PT Kilang Pertamian Internasional (KPI) is collaborating with PT Gapura Mas Lestari (GML), a used cooking oil exporting company, to meet the raw material needs in the production of bioavtur or sustainable aviation fuel (SAF).
Taufik Aditiyawarman, President Director of KPI, said that this collaboration is to strengthen collaboration between the public and private sectors in achieving sustainable energy goals in Indonesia.
“The collaboration between KPI and PT GML with experience in the supply chain from collection to UCO supply is expected to support and guarantee the supply of feedstock for the Cilacap Green Refinery Project,” Taufik said on Monday, December 16, 2024.
He said that this project is planned to process used cooking oil (UCO) feedstock with a capacity of 6,000 barrels per day to produce Hydrotreated Vegetable Oil (HVO) and SAF with a total production estimated to reach around 300 thousand kiloliters per year.
Currently, the Cilacap refinery has been able to produce HVO and SAF. HVO products are processed from Refined Bleached Deodorized Palm Oil (RBDPO) raw materials, which are named Pertamina Renewable Diesel (RD) and are 100 percent derived from vegetable oil.
The resulting HVO product will then become a mixture component in diesel that has superior quality compared to FAME biodiesel.
This product is designed to meet the highest standards of use in countries with four seasons, such as the European and American markets.
Meanwhile, SAF 2.4 percent of the raw material is Refined Bleached Deodorized Palm Kernel Oil (RBDPKO) or from processed palm kernel.
SAF products from the Cilacap Green Refinery are expected to support the supply for the implementation of SAF use in aviation industry fuels, in accordance with the road map and national action plan for the development of the sustainable aviation fuel industry.
“This green refinery project is not only about providing alternative energy sources, but also creating added value for the community, supporting local growth, and reducing environmental impacts,” he said.
The Green Refinery project has shown a significant contribution to achieving sustainability components related to handling climate change (SDG 7 and SDG 13).
By processing UCO into environmentally friendly fuels, this project not only focuses on providing renewable energy sources but also plays a role in reducing greenhouse gas emissions and air pollution. Indonesia Business Post
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Palm oil needs an image overhaul: It’ll be good for India
Lloyd Mathias
Summary
It isn’t causing much deforestation and is better for our health than made out to be. Negative perceptions need to be fought, as its high yield per acre makes it affordable enough for mass consumption.
Brands are omnipresent in our lives, from our kitchen shelves and closets to the gadgets held in our hands and what’s sitting in our garages. Consciously, and even at a subconscious level, we tend to imbue the brands we use with certain qualities, such as trustworthiness, product quality or simply an aura of exclusivity that puts us in an elite club. Branding plays a key role in shaping our perceptions and how we navigate our modern lifestyles.
However, what we perceive may not be the actual truth or the whole truth. We often tend to equate high prices with high quality even if that is not really the case. The price in such cases is often for prestige-related brand associations rather than just product quality. Livemint
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US Nutritionists weigh in on seed oils, cooking and consumption habits
Nutritionists interviewed said seed oils should be consumed in moderation.
Seed oils have become a growing topic of discussion on every corner of the internet from food bloggers and nutritionists to wellness gurus on social media. And amidst all the chatter about consumption of these ingredients, experts can help break down what individuals need to consider to make healthy choices as it relates to seed oils.
While no one food group can be responsible for better or worse overall health, which should be combined with a well rounded diet and other healthy lifestyle habits like exercise, seed oils have become the latest calorie-dense ingredient taking substantial heat online.
Viral claims about how the highly processed, inflammatory-inducing seed oils that are primarily composed of fats are a detriment to one's diet, is circumstantial. In many cases the health impact of the ingredient, which experts believe still requires more scientific research, is dependent on how much, which types, and other contributing consumption factors.
Nutritionists interviewed by ABC News said seed oils should be consumed in moderation with a better understanding of individual dietary needs as the safe consumption threshold would vary person to person.
While there could be a hypothetical health risk if seed oils are heated at a very high temperature, that problem typically doesn't arise during at-home cooking. Instead, experts warned that everyday people should be cautious about eating too much fast food and commercially processed foods, which are more prone to being fried at high temperatures and also carries other health risks beyond the hypothetical risk posed by seed oils. ABC News
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EU Parliament gives final approval to deforestation law delay
BRUSSELS, Dec 17 (Reuters) - The European Parliament gave its final approval on Tuesday to a one-year delay of Europe's landmark deforestation law, which from Dec. 2025 will ban the import of beef, soy and other goods linked to the destruction of forests.
The lawmakers' approval paves the way for European Union countries to also approve the delay, which they are expected to do this week - as a formality, with no changes. After that, the postponement will pass into law.
WHY IT'S IMPORTANT
The delay to the world-first policy to address deforestation is a blow to the EU's green agenda, which is facing pushback among industries from automakers, to airlines, who say EU measures to fight climate change are too onerous.
But the delay offers relief to the companies and countries that had opposed the policy. Brazil and Indonesia had branded the law protectionist and said it could exclude millions of poor, small-scale farmers from the EU market.
The EU law, which was initially due to take effect from Dec. 30, 2024, will require companies and traders placing soy, beef, coffee, palm oil and other products onto the EU market to provide proof their supply chain does not contribute to deforestation.
EU farmers would also be banned from exporting products cultivated on deforested or degraded woodlands.
CONTEXT
EU lawmakers had tried to also weaken parts of the policy, but those proposals were shelved in negotiations with EU countries. The two sides struck a deal earlier this month to simply delay the law by 12 months. Reuters
--------
Consumer goods sector increasing transparency
Paris, 17 December 2024, The Consumer Goods Forum’s (CGF) Forest Positive Coalition has today published its latest report, demonstrating that a growing group of FMCG businesses are leading the way in their voluntary commitments to end deforestation, forest degradation and habitat conversion.
Consumer goods businesses have improved transparency in their collaborative efforts to make progress towards eliminating deforestation and ecosystem conversion from global supply chains.
For the first time, 83% of Coalition members have – publicly and voluntarily – reported on their Deforestation- and Conversion-Free (DCF) individual commitments: 83% of member companies have disclosed aggregated data as to how much of their palm oil is DCF, 75% for soy, 75% for beef, and 62% for pulp & paper. The Consumer Goods Forum
--------
Malaysia hopes palm oil industry can be compliant with EU law when grace period ends
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani: With the extension, it will help us because we want to make sure that we have the proper polygons recorded for every estate and smallholders' land in order to create traceability.
KUALA LUMPUR (Dec 18): Malaysia hopes its palm oil industry will be fully compliant with the European Union's anti-deforestation policy before a newly agreed deadline, its commodities minister said on Wednesday.
The European Parliament approved on Tuesday a one-year delay on implementation of its landmark deforestation law, which bans the importation of palm oil, soy and other goods linked to the destruction of forests from Dec 30 next year.
The law which had initially been due to take effect this month and required companies and traders selling soy, beef, coffee, palm oil and other products in the EU market to provide proof their supply chains do not contribute to deforestation.
Malaysia and Indonesia, the world's largest exporters of palm oil, have previously complained that the law and implementation rules are discriminatory.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the extension would give big and medium size estates a year to comply while small farmers would be granted an additional six months on top of that.
"For the big players, almost all of them have complied but for the smallholders, some of it, is still a work in progress," he said.
"With the extension, it will help us because we want to make sure that we have the proper polygons recorded for every estate and smallholders' land in order to create traceability," he said on the sidelines of a Malaysia-China trade summit in Kuala Lumpur.
Asked about his views on a trade war between the US and China, Johari said it was not a concern for Malaysia.
China accounts for about 17.1% of Malaysia's trade and the US about 9.5%, he said.
"When there is a trade war between two countries, we also have to make sure that it will not affect us," he added. The EdgeMY
--------
CHINA'S PALM OIL PLAYERS INVITED TO EXPLORE OPPORTUNITIES IN MALAYSIA
Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani delivers his speech at the Leadership Session 'Strategic Synergy in Plantation Industries and Commodities: Mapping The Future Path for Malaysia and China' during the Malaysia-China Summit 2024 Prosperity Beyond 50 at the Malaysia International Trade and Exhibition Centre (MITEC).
KUALA LUMPUR, Dec 18 (Bernama) -- Malaysia is inviting China's palm oil companies to explore opportunities in the domestic industry.
Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani said he believes potential partnerships with Chinese companies based in Malaysia will be successful as feedstock is plentiful in the country while Chinese players have a wide market network.
"I would like to set out three important areas in which Malaysia is keen to welcome potential investors to explore. First, we are looking to leverage the circular economy concept across the palm oil industry. Specifically, waste can be converted to green energy in the form of biomass and biogas energy.
"Biomass energy can be obtained by incinerating palm by products such as mesocarp fibre, palm kernel shell and empty fruit bunch - steam generated will then move the turbines and generate electricity," he said during the Leadership Session 4 entitled "Strategy Synergy in Plantation Industries and Commodities : Mapping the Future Path for Malaysia and China" held in conjunction with the Malaysia-China Summit 2024 (MSC2024) here today.
He said biogas, on the other hand, can be obtained through methane capture from palm oil mill effluent (POME), where for example, a mill with an operating capacity of at least 60 tonnes per hour can generate between 5-7 megawatts (MW) of energy.
"If around 50 per cent of mills in the country can be outfitted with biomass and biogas capturing facilities, we will be able to generate around 1,100 MW of energy at over 200 locations across the country," he said.
The minister also cited sustainable aviation fuel (SAF), which was introduced as an initiative to decarbonise the aviation sector, as another area which presents both countries with numerous opportunities.
By 2027, Johari said the government plans to make SAF mandatory for all planes travelling to Malaysia, with a planned blending mandate beginning at 1.0 per cent .
"Second, in line with our goal to increase efficiency and production without expanding land area, we are always seeking new technology in implementing precision agriculture, such as smart farming and data driven decision making, as well as increasing mechanisation and automation across the supply chain.
"Third, attracting investments to upgrade our pre-existing mills. As at June 2024, there are around 448 palm oil mills of which a lot of these mills have been set up many years ago. Potential investors may work together with mill owners to upgrade these mills by equipping it with the latest technology. For example, the usage of artificial intelligence (AI) can increase operating efficiency by reducing oil losses and the dependency on labour," he said.
Elaborating further on the Malaysia-China bilateral relation in the industry, Johari said the Malaysian palm oil industry’s presence in China has been long established, with the Malaysian Palm Oil Board (MPOB) preparing to celebrate the 20th anniversary of the establishment of the Palm Oil Research and Technical Service Institute of Malaysian Palm Oil Board (PORTSIM) in Shanghai.
"PORTSIM aims to enhance market presence in China as well as provide technical support and advisory services for local enterprises," he said.
With growing uncertainty surrounding the global economy and increased geopolitical risk, Johari believes that Malaysia can continue to be a vital trading partner for palm oil.
"Our long established and well regulated industry is able to provide security of supply, excellent infrastructure along the entire supply chain as well as sustainability guarantees vis-a-vis the Malaysian Sustainable Palm Oil (MSPO) certification scheme.
"Due to our commitments to producing palm oil sustainably, we are focused on increasing production through unlocking higher yield instead of opening up new land to plant palm oil," he said.
Besides higher yield translating to more competitive prices for consumers, the minister said higher production will also unlock many more opportunities for the market, such as green energy. BERNAMA
--------
China’s leftover “gutter” cooking oil becomes bio-sustainable aviation fuel wonder
China’s notorious “gutter oil” was once a source of food safety scandals, but has undergone a green revolution that has made it worth more than kerosene.
The waste cooking oil that was used in every household to make food used to be poured into the sewers, where it caused pollution and was the subject of complaints. The oil would accumulate in sewers and was also used illicitly in food production. Now it is one of China’s most sought-after commodities, as it can easily be turned into sustainable bio-aviation fuel.
The price of recycled gutter oil has surged as a result, and where there was a surplus there is now a deficit. The price of bio-aviation fuel has surpassed that of new palm oil and soybean oil, thanks to its status as a key ingredient in sustainable aviation fuel (SAF).
Aviation biofuel has sparked the newfound demand. Produced from used cooking oil, SAF can reduce carbon emissions by up to 85% compared to traditional jet fuel multiplying its appeal for airlines desperate to go green. Price of gutter oil has soared to over CNY8,000 ($1,100) per tonne – making it more valuable than many premium store-bought extra virgin olive oil .
China has become a leading player in the global SAF supply chain, exporting approximately 1.82mn tonnes per year (tpy) of used cooking oil. The US alone imported over 1.36mn tonnes from China last year, as SAF adoption accelerates in the aviation industry.
International interest is so intense that Chinese industry players are advocating for export restrictions to ensure sufficient domestic supplies. Domestic demand for SAF now far exceeds production capacity, forcing a reassessment of export priorities. Some exchanges are even exploring futures contracts for used cooking oil, highlighting its growing importance as a commodity.
Ironically, the shift in value has flipped concerns about product integrity. “Producers are now accused of ‘contaminating’ gutter oil with cheaper pure palm oil to improve margins,” China-watcher Arnaud Bertrand joked in a social media post, contrasting this with the past, when the gutter oil was seen as rubbish and something to get rid of.
This transformation of gutter oil from a problem into a solution is a successful case of sustainable problem-solving – putting waste to service for the betterment of the environment. Once a health hazard, it is now a strategic resource supporting global decarbonisation efforts. MSN
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Malaysia Turns to China for Investments in Its Biomass Sector
(Bloomberg) -- Malaysia’s government is seeking investments from China to develop its biomass industry, according to a minister.
Each palm oil mill in Malaysia can produce 6 to 7 megawatts of electricity, Johari Abdul Ghani, the nation’s plantation and commodities minister, said at the Malaysia-China Summit 2024 on Wednesday. All the mills in the world’s second-biggest palm oil producer can produce 2,500 to 3,000 megawatts of electricity, he added.
“We have a lot of waste from the 448 palm oil mills,” Johari said. “This is an opportunity for the renewable energy sector.”
Malaysia has also invited Chinese investors to build Sabah’s and Sarawak’s first oleochemicals plants, according to the minister. He also called for Chinese investments into Malaysia’s green energy projects.
China is the biggest buyer of Malaysia’s agriculture commodities, with shipments valued at $4.4 billion in 2023. BNN Bloomberg
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Indonesia KPI partners with GML to boost aviation fuel production from used cooking oil
PT Kilang Pertamian Internasional (KPI) is collaborating with PT Gapura Mas Lestari (GML), a used cooking oil exporting company, to meet the raw material needs in the production of bioavtur or sustainable aviation fuel (SAF).
Taufik Aditiyawarman, President Director of KPI, said that this collaboration is to strengthen collaboration between the public and private sectors in achieving sustainable energy goals in Indonesia.
“The collaboration between KPI and PT GML with experience in the supply chain from collection to UCO supply is expected to support and guarantee the supply of feedstock for the Cilacap Green Refinery Project,” Taufik said on Monday, December 16, 2024.
He said that this project is planned to process used cooking oil (UCO) feedstock with a capacity of 6,000 barrels per day to produce Hydrotreated Vegetable Oil (HVO) and SAF with a total production estimated to reach around 300 thousand kiloliters per year.
Currently, the Cilacap refinery has been able to produce HVO and SAF. HVO products are processed from Refined Bleached Deodorized Palm Oil (RBDPO) raw materials, which are named Pertamina Renewable Diesel (RD) and are 100 percent derived from vegetable oil.
The resulting HVO product will then become a mixture component in diesel that has superior quality compared to FAME biodiesel.
This product is designed to meet the highest standards of use in countries with four seasons, such as the European and American markets.
Meanwhile, SAF 2.4 percent of the raw material is Refined Bleached Deodorized Palm Kernel Oil (RBDPKO) or from processed palm kernel.
SAF products from the Cilacap Green Refinery are expected to support the supply for the implementation of SAF use in aviation industry fuels, in accordance with the road map and national action plan for the development of the sustainable aviation fuel industry.
“This green refinery project is not only about providing alternative energy sources, but also creating added value for the community, supporting local growth, and reducing environmental impacts,” he said.
The Green Refinery project has shown a significant contribution to achieving sustainability components related to handling climate change (SDG 7 and SDG 13).
By processing UCO into environmentally friendly fuels, this project not only focuses on providing renewable energy sources but also plays a role in reducing greenhouse gas emissions and air pollution. Indonesia Business Post
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Palm oil needs an image overhaul: It’ll be good for India
Lloyd Mathias
Summary
It isn’t causing much deforestation and is better for our health than made out to be. Negative perceptions need to be fought, as its high yield per acre makes it affordable enough for mass consumption.
Brands are omnipresent in our lives, from our kitchen shelves and closets to the gadgets held in our hands and what’s sitting in our garages. Consciously, and even at a subconscious level, we tend to imbue the brands we use with certain qualities, such as trustworthiness, product quality or simply an aura of exclusivity that puts us in an elite club. Branding plays a key role in shaping our perceptions and how we navigate our modern lifestyles.
However, what we perceive may not be the actual truth or the whole truth. We often tend to equate high prices with high quality even if that is not really the case. The price in such cases is often for prestige-related brand associations rather than just product quality. Livemint
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US Nutritionists weigh in on seed oils, cooking and consumption habits
Nutritionists interviewed said seed oils should be consumed in moderation.
Seed oils have become a growing topic of discussion on every corner of the internet from food bloggers and nutritionists to wellness gurus on social media. And amidst all the chatter about consumption of these ingredients, experts can help break down what individuals need to consider to make healthy choices as it relates to seed oils.
While no one food group can be responsible for better or worse overall health, which should be combined with a well rounded diet and other healthy lifestyle habits like exercise, seed oils have become the latest calorie-dense ingredient taking substantial heat online.
Viral claims about how the highly processed, inflammatory-inducing seed oils that are primarily composed of fats are a detriment to one's diet, is circumstantial. In many cases the health impact of the ingredient, which experts believe still requires more scientific research, is dependent on how much, which types, and other contributing consumption factors.
Nutritionists interviewed by ABC News said seed oils should be consumed in moderation with a better understanding of individual dietary needs as the safe consumption threshold would vary person to person.
While there could be a hypothetical health risk if seed oils are heated at a very high temperature, that problem typically doesn't arise during at-home cooking. Instead, experts warned that everyday people should be cautious about eating too much fast food and commercially processed foods, which are more prone to being fried at high temperatures and also carries other health risks beyond the hypothetical risk posed by seed oils. ABC News
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December 16, 2024
Sustainable bioenergy isn’t just for transport, it’s a matter of certified rights
Ensuring bioenergy is genuinely sustainable requires robust certification systems. Certification isn’t just about the environment; it also aims to limit human rights violations.
This article is part of our special report Certification as a tool to reduce greenhouse gas emissions.
After years of controversy, companies must now carefully certify biofuels to ensure they’re not displacing food supply or causing indirect land use change. But, certification options are also available for non-transportation uses.
When the EU’s Renewable Energy Directive was first introduced in 2010, it came with an enormous amount of controversy over its 10% target for renewable transport. This drove up demand for cheap crop-based biodiesel, such as palm and soy oil, which is mainly sourced from Asia and South America.
Studies have found that roughly four million hectares of forests were subsequently razed to produce these biofuels, according to the NGO T&E, displacing land for food and causing more emissions to remain in the atmosphere by eliminating carbon-absorbing vegetation.
The EU subsequently set new limits on what can be used to meet this target in 2015, capping the use of ‘first generation’ biofuels at no more than 7% of transport energy. Palm oil use was frozen as of 2019 and is being phased out between now and 2030.
Stringent requirements
Since then, more stringent sustainability requirements have been introduced in revisions of the directive adopted in 2018 and 2023, and companies putting biofuels on the EU market are now subject to strict certification requirements to ensure their sustainability.
But certification isn’t available only for determining what can count toward the EU’s renewable transport target.
The use of bioenergy for other purposes, such as for heating electricity and industrial processes, can also cause indirect sustainability impacts. These uses hold huge potential for reducing greenhouse gas emissions by displacing fossil fuels - but only if done sustainably.
Such non-transportation bioenergy includes biogas produced through anaerobic digestion of organic waste such as agricultural residues, food waste, or wastewater sludge. It also includes bioliquids used for heating or electricity generation, often derived from vegetable oils, animal fats, or residues. Solid biomass, including wood, agricultural residues and energy crops, can also be used for heat and power production.
Certifying bioenergy
Ensuring that bioenergy is genuinely sustainable requires robust certification systems. These certifications assess and verify environmental, social and economic criteria to prevent unintended negative impacts, such as deforestation, biodiversity loss, or human rights violations.
Certification can verify emission reductions, promote responsible land use, protect biodiversity and water resources, and uphold human and labour rights.
Several certification schemes exist to verify the sustainability of non-transportation bioenergy. These schemes are typically aligned with regulatory requirements like the EU’s Renewable Energy Directive. They include the Roundtable on Sustainable Biomaterials, REDcert, the Sustainable Resources Verification Scheme, the Forest Stewardship Council and the Programme for the Endorsement of Forest Certification.
The International Sustainability and Carbon Certification (ISCC) system is one of the most widely recognised certification schemes for biomass, biogas and bioliquids. It offers two certification methods.
Official recognition
ISCC EU is officially recognised by the European Commission to demonstrate compliance with the sustainability and greenhouse gas emissions savings criteria for sustainable fuels and energy from biomass used for electricity, heating and cooling.
There is also ISCC PLUS, a voluntary scheme for the circular economy and bioeconomy used to credibly communicate to commercial and individual consumers, the public and governmental institutions that companies comply with sustainability standards.
“ISCC is a chain-of-custody certification system,” explains the ISCC’s Jessica Scheimann.
“Evidence of the sustainability characteristics of a sustainable fuel or liquid is documented and forwarded through the supply chain by using ‘Sustainability Declarations’,” said Scheimann. She explained it’s a delivery document containing relevant information about the sustainable material that has to be issued by the supplier for each delivery of sustainable material.
The system operates on six principles, the first covering the legal sustainability requirements of the EU directive, while the others go beyond legal requirements. The most important aspect is excluding specific areas from being used for biomass production.
They include primary forests and other woodland, land with high carbon stock and peatland, highly biodiverse forests and areas designated to protect species or ecosystems.
Challenges, expensive process
Despite its benefits, sustainability certification for non-transportation bioenergy faces several challenges. For one thing, biomass and bioenergy often have complex, multi-stakeholder supply chains involving raw material suppliers, processors, and end-users. Ensuring traceability and transparency is a major hurdle.
Certification processes can also be expensive, especially for small producers or those in developing regions. Verification, audits, and documentation add administrative burdens, which may discourage participation. Differences in certification standards could create confusion for producers and buyers.
Perhaps most complicated of all is the fact that bioenergy is often obtained from waste and residues, whose origin is difficult to trace. This is especially relevant for waste-derived biogas and bioliquids. Enforcement can, therefore, be challenging, particularly in remote areas with weak governance.
Because of these difficulties, experts recommend obtaining certification early before it is required by law. ISCC Plus, for instance, goes beyond what is legally required to prepare for possible future legal obligations in addition to customer and shareholder expectations.
Certification is not without its challenges, including costs, supply chain complexity, and enforcement gaps. Moving forward, advancements in digital traceability, harmonised standards, and increased support for small producers can make certification more accessible and effective.
As demand for renewable energy grows, robust sustainability certification will remain a crucial tool in ensuring that bioenergy fulfils its promise of being a clean, ethical, and sustainable energy source.
[Edited By Brian Maguire | Euractiv's Advocacy Lab ]
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Malaysia-Palm Oil Industrial Cluster in Sabah signs biomass output deal
Kota Kinabalu: Sabah’s vision to tap into the billion-ringgit waste-to-wealth industry potentials in oil palm biomass is set for a huge take-off at the Palm Oil Industrial Cluster (POIC) in Lahad Datu.
This follows the signing of a Sales and Purchase Agreement for 19.5 acres at the POIC Lahad Datu for the production of Sustainable Aviation Fuel, biodiesel and carbon-based products such as carbon black, activated carbon and biochar.
Carbon black - derived from partially combusting oil palm waste. It is used as a pigment and colourant in rubber products, such as tyres.
Activated carbon is used to filter contaminants in air and water. It also has many pharmaceutical applications.
Biochar is made by burning biomass through pyrolysis. It is mainly used in agriculture to restore soil health, raise yield, remediating polluted soil.
Sabah-based Legenda Biomass Sdn Bhd, which has a sister company operating a waste management and recovery operations at POIC Lahad Datu, seeks to invest RM400 million, leading to a comprehensive utilisation of the estimated 20 million metric tonnes of biomass generated mainly by about 124 oil palm mills spread all over Sabah.
Legenda Biomass’s latest ventures are expected to catalyse an uptake in port operations at POIC Lahad Datu, as most of its products are for the export market.
POIC Lahad Datu, serviced by a container terminal, a liquid bulk terminal, a dry bulk terminal and a barge berth.
“Aside from taking the signing as a statement of confidence in POIC Lahad Datu, we see Legenda’s investment in biomass utilisation as a potential game-changer because it represents a major pivot in the oil palm value chain in Sabah,” said POIC Sabah Sdn Bhd Group Chief Executive Officer Datuk Fredian Gan, who signed the Sales and Purchase Agreement on behalf of the state-owned company, POIC.
Legenda Biomass Managing Director Datuk Tan Pek Chian signed on behalf of his company.
The signing held at the POIC Sabah office here, was witnessed by Sabah POIC chairman Datuk Seri Panglima Yong Teck Lee, members of the Board.
“Today marks a significant milestone for POIC, as several key agreements are being signed, paving the way for exciting developments ahead,” said Yong.
Meanwhile, Tan, whose Bumimas business group has waste management-related operations in Kota Kinabalu, Labuan and Lahad Datu, said his company desires to see wider compliance with the environmental, social and governance concept.
“We hope that our biomass centre at POIC Lahad Datu will provide a one-stop solution for biomass downstream processing and hopefully our entry will attract more investment to POIC Lahad Datu,” said Tan.
From oil palm plantations to oil palm processing mills, the industry is known for producing biomass in the form of trunks (when old trees are felled for replanting), fronds (cut in the process of harvesting oil palm fruits), empty fruit bunches, when fresh fruit bunches are stripped of their fruits, mesocarp fibres (waste left after oil is squeezed, and palm kernel shells (PKS) hard shells left after the oil palm kernels are squeezed off their oil.
Mills also produced POME (palm oil mill effluent) which has nutrients, residue oil but emits harmful methane.
Although the potential of oil palm biomass is well-established, its full utilisation remains elusive. PKS, with their high combustibility, are being exported for green power generation in Thailand and Japan, and some local mills use PKS for energy.
There are also limited applications for empty fruit bunches and fibres, as well as power generation through methane capture. However, overall biomass utilisation remains relatively low.
Sabah’s adoption of the Sabah Biomass Policy and the imposition of a 7.5 per cent export tax on biomass are expected to have a major bearing on sentiments and the direction of the biomass industry going forward.
The development of the biomass industry in Sabah has been hampered mainly by supply chain challenges, although its economic potential was recognised since the launch of the National Biomass Policy in 2011. Daily ExpressMY
Sustainable bioenergy isn’t just for transport, it’s a matter of certified rights
Ensuring bioenergy is genuinely sustainable requires robust certification systems. Certification isn’t just about the environment; it also aims to limit human rights violations.
This article is part of our special report Certification as a tool to reduce greenhouse gas emissions.
After years of controversy, companies must now carefully certify biofuels to ensure they’re not displacing food supply or causing indirect land use change. But, certification options are also available for non-transportation uses.
When the EU’s Renewable Energy Directive was first introduced in 2010, it came with an enormous amount of controversy over its 10% target for renewable transport. This drove up demand for cheap crop-based biodiesel, such as palm and soy oil, which is mainly sourced from Asia and South America.
Studies have found that roughly four million hectares of forests were subsequently razed to produce these biofuels, according to the NGO T&E, displacing land for food and causing more emissions to remain in the atmosphere by eliminating carbon-absorbing vegetation.
The EU subsequently set new limits on what can be used to meet this target in 2015, capping the use of ‘first generation’ biofuels at no more than 7% of transport energy. Palm oil use was frozen as of 2019 and is being phased out between now and 2030.
Stringent requirements
Since then, more stringent sustainability requirements have been introduced in revisions of the directive adopted in 2018 and 2023, and companies putting biofuels on the EU market are now subject to strict certification requirements to ensure their sustainability.
But certification isn’t available only for determining what can count toward the EU’s renewable transport target.
The use of bioenergy for other purposes, such as for heating electricity and industrial processes, can also cause indirect sustainability impacts. These uses hold huge potential for reducing greenhouse gas emissions by displacing fossil fuels - but only if done sustainably.
Such non-transportation bioenergy includes biogas produced through anaerobic digestion of organic waste such as agricultural residues, food waste, or wastewater sludge. It also includes bioliquids used for heating or electricity generation, often derived from vegetable oils, animal fats, or residues. Solid biomass, including wood, agricultural residues and energy crops, can also be used for heat and power production.
Certifying bioenergy
Ensuring that bioenergy is genuinely sustainable requires robust certification systems. These certifications assess and verify environmental, social and economic criteria to prevent unintended negative impacts, such as deforestation, biodiversity loss, or human rights violations.
Certification can verify emission reductions, promote responsible land use, protect biodiversity and water resources, and uphold human and labour rights.
Several certification schemes exist to verify the sustainability of non-transportation bioenergy. These schemes are typically aligned with regulatory requirements like the EU’s Renewable Energy Directive. They include the Roundtable on Sustainable Biomaterials, REDcert, the Sustainable Resources Verification Scheme, the Forest Stewardship Council and the Programme for the Endorsement of Forest Certification.
The International Sustainability and Carbon Certification (ISCC) system is one of the most widely recognised certification schemes for biomass, biogas and bioliquids. It offers two certification methods.
Official recognition
ISCC EU is officially recognised by the European Commission to demonstrate compliance with the sustainability and greenhouse gas emissions savings criteria for sustainable fuels and energy from biomass used for electricity, heating and cooling.
There is also ISCC PLUS, a voluntary scheme for the circular economy and bioeconomy used to credibly communicate to commercial and individual consumers, the public and governmental institutions that companies comply with sustainability standards.
“ISCC is a chain-of-custody certification system,” explains the ISCC’s Jessica Scheimann.
“Evidence of the sustainability characteristics of a sustainable fuel or liquid is documented and forwarded through the supply chain by using ‘Sustainability Declarations’,” said Scheimann. She explained it’s a delivery document containing relevant information about the sustainable material that has to be issued by the supplier for each delivery of sustainable material.
The system operates on six principles, the first covering the legal sustainability requirements of the EU directive, while the others go beyond legal requirements. The most important aspect is excluding specific areas from being used for biomass production.
They include primary forests and other woodland, land with high carbon stock and peatland, highly biodiverse forests and areas designated to protect species or ecosystems.
Challenges, expensive process
Despite its benefits, sustainability certification for non-transportation bioenergy faces several challenges. For one thing, biomass and bioenergy often have complex, multi-stakeholder supply chains involving raw material suppliers, processors, and end-users. Ensuring traceability and transparency is a major hurdle.
Certification processes can also be expensive, especially for small producers or those in developing regions. Verification, audits, and documentation add administrative burdens, which may discourage participation. Differences in certification standards could create confusion for producers and buyers.
Perhaps most complicated of all is the fact that bioenergy is often obtained from waste and residues, whose origin is difficult to trace. This is especially relevant for waste-derived biogas and bioliquids. Enforcement can, therefore, be challenging, particularly in remote areas with weak governance.
Because of these difficulties, experts recommend obtaining certification early before it is required by law. ISCC Plus, for instance, goes beyond what is legally required to prepare for possible future legal obligations in addition to customer and shareholder expectations.
Certification is not without its challenges, including costs, supply chain complexity, and enforcement gaps. Moving forward, advancements in digital traceability, harmonised standards, and increased support for small producers can make certification more accessible and effective.
As demand for renewable energy grows, robust sustainability certification will remain a crucial tool in ensuring that bioenergy fulfils its promise of being a clean, ethical, and sustainable energy source.
[Edited By Brian Maguire | Euractiv's Advocacy Lab ]
--------
Malaysia-Palm Oil Industrial Cluster in Sabah signs biomass output deal
Kota Kinabalu: Sabah’s vision to tap into the billion-ringgit waste-to-wealth industry potentials in oil palm biomass is set for a huge take-off at the Palm Oil Industrial Cluster (POIC) in Lahad Datu.
This follows the signing of a Sales and Purchase Agreement for 19.5 acres at the POIC Lahad Datu for the production of Sustainable Aviation Fuel, biodiesel and carbon-based products such as carbon black, activated carbon and biochar.
Carbon black - derived from partially combusting oil palm waste. It is used as a pigment and colourant in rubber products, such as tyres.
Activated carbon is used to filter contaminants in air and water. It also has many pharmaceutical applications.
Biochar is made by burning biomass through pyrolysis. It is mainly used in agriculture to restore soil health, raise yield, remediating polluted soil.
Sabah-based Legenda Biomass Sdn Bhd, which has a sister company operating a waste management and recovery operations at POIC Lahad Datu, seeks to invest RM400 million, leading to a comprehensive utilisation of the estimated 20 million metric tonnes of biomass generated mainly by about 124 oil palm mills spread all over Sabah.
Legenda Biomass’s latest ventures are expected to catalyse an uptake in port operations at POIC Lahad Datu, as most of its products are for the export market.
POIC Lahad Datu, serviced by a container terminal, a liquid bulk terminal, a dry bulk terminal and a barge berth.
“Aside from taking the signing as a statement of confidence in POIC Lahad Datu, we see Legenda’s investment in biomass utilisation as a potential game-changer because it represents a major pivot in the oil palm value chain in Sabah,” said POIC Sabah Sdn Bhd Group Chief Executive Officer Datuk Fredian Gan, who signed the Sales and Purchase Agreement on behalf of the state-owned company, POIC.
Legenda Biomass Managing Director Datuk Tan Pek Chian signed on behalf of his company.
The signing held at the POIC Sabah office here, was witnessed by Sabah POIC chairman Datuk Seri Panglima Yong Teck Lee, members of the Board.
“Today marks a significant milestone for POIC, as several key agreements are being signed, paving the way for exciting developments ahead,” said Yong.
Meanwhile, Tan, whose Bumimas business group has waste management-related operations in Kota Kinabalu, Labuan and Lahad Datu, said his company desires to see wider compliance with the environmental, social and governance concept.
“We hope that our biomass centre at POIC Lahad Datu will provide a one-stop solution for biomass downstream processing and hopefully our entry will attract more investment to POIC Lahad Datu,” said Tan.
From oil palm plantations to oil palm processing mills, the industry is known for producing biomass in the form of trunks (when old trees are felled for replanting), fronds (cut in the process of harvesting oil palm fruits), empty fruit bunches, when fresh fruit bunches are stripped of their fruits, mesocarp fibres (waste left after oil is squeezed, and palm kernel shells (PKS) hard shells left after the oil palm kernels are squeezed off their oil.
Mills also produced POME (palm oil mill effluent) which has nutrients, residue oil but emits harmful methane.
Although the potential of oil palm biomass is well-established, its full utilisation remains elusive. PKS, with their high combustibility, are being exported for green power generation in Thailand and Japan, and some local mills use PKS for energy.
There are also limited applications for empty fruit bunches and fibres, as well as power generation through methane capture. However, overall biomass utilisation remains relatively low.
Sabah’s adoption of the Sabah Biomass Policy and the imposition of a 7.5 per cent export tax on biomass are expected to have a major bearing on sentiments and the direction of the biomass industry going forward.
The development of the biomass industry in Sabah has been hampered mainly by supply chain challenges, although its economic potential was recognised since the launch of the National Biomass Policy in 2011. Daily ExpressMY
December 15, 2024
MALAYSIA’S COMMODITY SECTOR THRIVES IN 2024 DESPITE GLOBAL CHALLENGES
KUALA LUMPUR, Dec 15 (Bernama) -- Malaysia's commodity sector has demonstrated resilience and growth in 2024 despite global headwinds, supported by robust exports and favourable market dynamics.
Palm oil, a key sector for the Malaysian economy, has seen robust growth in 2024.
The yield of fresh fruit bunches (FFB) in the estates sector has improved by 8.1 per cent, increasing to 13.94 tonnes per hectare, up from 12.89 tonnes per hectare in 2023.
According to the Malaysian Palm Oil Board (MPOB), crude palm oil (CPO) prices increased by 5.5 per cent on average, reaching RM4,047.50 per tonne from January to October 2024, compared to RM3,835.50 per tonne in the same period last year.
The rise was driven by stronger export demand, a weaker ringgit enhancing affordability for buyers, and lower palm oil stock levels, which remained below two million tonnes.
Exports of palm oil and palm-based products rose 11.9 per cent year-on-year (y-o-y) to 22.30 million tonnes in the first 10 months of 2024, generating RM89.39 billion in revenue—a 14.5 per cent increase from RM78.10 billion last year.
Palm oil accounted for the largest export volume, at 14.05 million tonnes, up by 13.7 per cent compared to 12.36 million tonnes recorded in January-October 2023.
India retained its position as Malaysia’s largest palm oil market, during the period under review, accounting for 2.67 million tonnes or 19.0 per cent of total palm oil exports.
Malaysia’s victory over the EU restriction
Malaysia’s victory against the European Union (EU) over the Delegated Act, which discriminated against palm oil biofuels, marks a significant milestone for the nation’s palm oil industry.
This win exemplifies a well-coordinated effort by Malaysian ministries, organisations, and agencies.
Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani stated that the decision vindicated Malaysia’s stance and would ensure justice for biodiesel traders and employees.
On Jan 19, 2021, Malaysia initiated World Trade Organisation (WTO) dispute consultations with the EU over measures affecting palm oil and palm crop-based biofuels.
In its final report, issued on March 5, 2024, the WTO panel concluded that the EU’s Delegated Act restricting palm oil biofuels was discriminatory.
The panel found fault with the EU's use of indirect land use change (ILUC) as a basis for banning palm oil biofuels and criticised the EU’s approach to notifying and consulting with other economies before implementing new trade measures.
Postponement of EUDR
The EU’s decision on Oct 16, 2024, to delay implementation of the EU Deforestation Regulation (EUDR) by 12 months provided a much-needed relief for Malaysia's palm oil sector.
The EUDR, which mandates that commodities sold in the EU must be deforestation-free, poses significant compliance challenges for palm oil producers.
The Malaysian Palm Oil Council (MPOC) welcomed the postponement, noting that it gives stakeholders more time to meet the complex requirements.
Compliance costs are estimated at US$650 million annually, with US$260 million directly impacting smallholders.
Johari announced that the Ministry of Plantation and Commodities (MPIC) will support and help local oil palm smallholders meet the new EUDR deadline on Dec 30, 2025.
The government will help smallholders comply in four areas, namely deforestation-free, traceability, legitimate land title, and good labour practices, he said.
However, he acknowledged that the labour shortage remains one of the most significant unresolved challenges in Malaysia’s palm oil industry.
The industry continues to rely heavily on manual labour, particularly from foreign workers, for harvesting and infield collection activities.
According to the MPOB, plantation companies currently face a shortage of nearly 38,000 workers, with harvesting and infield collection activities accounting for about 55 per cent of the total shortfall.
"The year 2024 was anticipated to be a beacon of hope for this issue, but it has turned out differently," MPOB said.
Foreign workers currently account for 76 per cent of the workforce in this sector. Bernama
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Indonesia's renewable energy plans may put forests at risk
JAKARTA: Environmentalists are warning that Indonesia's ambitious plans to achieve net-zero emissions by 2060 rely too heavily on biofuels and risk a new wave of deforestation in the world's third-largest rainforest.
Heavily dependent on coal, Indonesia needs to transition away from fossil fuels and seeks to generate 75 gigawatts of electricity from renewable resources over the next 15 years, compared with 13 gigawatts today, said presidential envoy Hashim Djojohadikusumo at the U.N. summit on climate change last month.
A cornerstone of this push is the use of cleaner-burning biofuels, in which organic material is turned into liquid fuel.
Biofuels will help Indonesia cut down on expensive fuel imports, reduce greenhouse gases and increase palm oil production, which in turn will spur economic growth, the government has said. While mostly intended for the transportation sector, biofuels are also used at diesel-powered plants.
But cultivating the palm trees and sugarcane needed to create biomass at scale for the biofuel industry requires transforming vast amounts of land into plantations.
Indonesia's tropical rainforests could be at risk.
Forest Watch Indonesia estimates that deforestation could reach 4.56 million hectares in Indonesia in the next few years if the government aggressively mandates the use of biofuels across industries, including at power plants.
"New land is required to establish energy plantations to meet bioenergy needs," said Anggi Prayogo, a Forest Watch researcher. Instead, "the government should push more investments to other renewables, like solar and wind, to reduce green house gases."
The country's forests are critical to slowing climate change. The United Nations estimates Indonesia's trees store nearly 300 billion tonnes of carbon.
Cleaner fuel?
"The government must ensure that the use of palm oil for biofuels does not cause deforestation and environmental harm," said Bhima Yudhistira, executive director of Centre for Economic and Law Studies, a think tank, and noted that increasing production could require the conversion of more land.
Indonesia is already the world's biggest producer of palm oil, a versatile vegetable oil used in food, cosmetics and fuel. Last year, the country produced 47 million tonnes, with more than 10 million tonnes going to biodiesel.
The government implemented a moratorium on new plantations in 2011. But some 52,000 hectares of forests were still turned into plantations in 2022 and 2023 alone, according to Nusantara Atlas, which tracks deforestation in Indonesia.
Designed as a substitute for dirty fossil fuels, biofuels release fewer carbons directly into the atmosphere. However, when emissions arising from changes in land use are also considered, most biofuels actually emit more CO2 than petroleum, studies have shown.
Still, Indonesia has been ramping up biofuel production over the past decade and targets a 32% increase to 16 million kilolitres next year from 2023. In 2019, 660,000 kilolitres of biodiesel went to diesel power plants.
The government will require producers to make a blend of biodiesel that contains 40% palm oil and 60% diesel fuel in 2025, from 35% palm oil presently.
This will necessitate about 18 million kilolitres of crude palm oil, a 50% increase from 2023.
The country also wants to increase production of bioethanol, which is derived from sugar cane, to mix with gasoline. The government has allocated about 2 million hectares of forestland in South Papua for sugar cane plantations to reduce sugar imports.
A 2021 report by the Institute for Essential Services and Reform (IESR), a Jakarta think tank, projected potential demand for biofuels in Indonesia could reach 190 million oil tonnes equivalent by 2050.
Weaning off coal
More than 45% of Indonesia's CO2 emissions came from producing electricity in 2022, followed by industry and transportation, according to the International Energy Agency.
Coal is the main source of fuel for power plants, accounting for almost 66% of the power generation mix, followed by natural gas and hydro with 13.6% and 7.2% respectively.
The government has blamed a lack of private investment for a failure to meet its renewable energy targets since at least 2021. Indonesia has tapped only a fraction of its geothermal potential, considered the world's largest, and solar, wind and water are also underutilised, analysts said.
For example, it produced just 0.017% of its potential solar power of about 3 gigawatts last year, according to the Institute for Energy Economics and Financial Analysis, a U.S. think-tank.
The Ministry of Energy and Mineral Resources did not immediately respond to a request for comment.
Biofuels will still play a part in the country's energy mix, but researchers argue that the government should encourage more replanting of unproductive plantations or slash exports to meet domestic demand first.
"Indonesia exports more than half of palm oil production," said Fabby Tumiwa, IESR's executive director.
If rainforest loss is to be slowed, "then the government must reduce its export," he said. - The StarMY/ The Thomson Reuters Foundation (charitable arm of Thomson Reuters).
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Gujarat allots land to Godrej Agrovet for oil palm cultivation
New Delhi [India], December 15 (ANI): Godrej Agrovet informed stock exchanges that the Gujarat government has allotted area to it in three districts for the expansion of oil palm cultivation under the palm oil mission.
Godrej Marks Major Deal
Those three districts are Vadodara, Surat, and Tapi, the company informed stock exchanges in a filing late on Saturday. The filing didn't elaborate further details about the allotment of land.
India is the world's second-largest consumer and number one vegetable oil importer, and it meets 60 per cent of its needs through imports. A large part of it is palm oil and its derivatives, which are imported from Indonesia and Malaysia.
Although oilseed production in India has grown over the years, the production has lagged behind its consumption, resulting in continuous dependence on imports.
The central government launched the National Mission for Edible Oils - Oil Palm (NMEO-OP) in August 2021. The mission is committed to escalating oil palm cultivation and elevating Crude Palm Oil production to 11.20 lakh tonnes by 2025-26.
The scheme is presently operational in several states nationwide, covering a potential area of 21.75 lakh hectares.
The Oil Palm Mission has been designed to promote oil palm in new geographies, providing end-to-end support to farmers in terms of assistance in planting material, assured buyback from private players involved, and protecting the farmers from the global price volatility in oil palm by providing viability gap payment (VGP) to hedge farmers' risk. Free Press Journal India
MALAYSIA’S COMMODITY SECTOR THRIVES IN 2024 DESPITE GLOBAL CHALLENGES
KUALA LUMPUR, Dec 15 (Bernama) -- Malaysia's commodity sector has demonstrated resilience and growth in 2024 despite global headwinds, supported by robust exports and favourable market dynamics.
Palm oil, a key sector for the Malaysian economy, has seen robust growth in 2024.
The yield of fresh fruit bunches (FFB) in the estates sector has improved by 8.1 per cent, increasing to 13.94 tonnes per hectare, up from 12.89 tonnes per hectare in 2023.
According to the Malaysian Palm Oil Board (MPOB), crude palm oil (CPO) prices increased by 5.5 per cent on average, reaching RM4,047.50 per tonne from January to October 2024, compared to RM3,835.50 per tonne in the same period last year.
The rise was driven by stronger export demand, a weaker ringgit enhancing affordability for buyers, and lower palm oil stock levels, which remained below two million tonnes.
Exports of palm oil and palm-based products rose 11.9 per cent year-on-year (y-o-y) to 22.30 million tonnes in the first 10 months of 2024, generating RM89.39 billion in revenue—a 14.5 per cent increase from RM78.10 billion last year.
Palm oil accounted for the largest export volume, at 14.05 million tonnes, up by 13.7 per cent compared to 12.36 million tonnes recorded in January-October 2023.
India retained its position as Malaysia’s largest palm oil market, during the period under review, accounting for 2.67 million tonnes or 19.0 per cent of total palm oil exports.
Malaysia’s victory over the EU restriction
Malaysia’s victory against the European Union (EU) over the Delegated Act, which discriminated against palm oil biofuels, marks a significant milestone for the nation’s palm oil industry.
This win exemplifies a well-coordinated effort by Malaysian ministries, organisations, and agencies.
Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani stated that the decision vindicated Malaysia’s stance and would ensure justice for biodiesel traders and employees.
On Jan 19, 2021, Malaysia initiated World Trade Organisation (WTO) dispute consultations with the EU over measures affecting palm oil and palm crop-based biofuels.
In its final report, issued on March 5, 2024, the WTO panel concluded that the EU’s Delegated Act restricting palm oil biofuels was discriminatory.
The panel found fault with the EU's use of indirect land use change (ILUC) as a basis for banning palm oil biofuels and criticised the EU’s approach to notifying and consulting with other economies before implementing new trade measures.
Postponement of EUDR
The EU’s decision on Oct 16, 2024, to delay implementation of the EU Deforestation Regulation (EUDR) by 12 months provided a much-needed relief for Malaysia's palm oil sector.
The EUDR, which mandates that commodities sold in the EU must be deforestation-free, poses significant compliance challenges for palm oil producers.
The Malaysian Palm Oil Council (MPOC) welcomed the postponement, noting that it gives stakeholders more time to meet the complex requirements.
Compliance costs are estimated at US$650 million annually, with US$260 million directly impacting smallholders.
Johari announced that the Ministry of Plantation and Commodities (MPIC) will support and help local oil palm smallholders meet the new EUDR deadline on Dec 30, 2025.
The government will help smallholders comply in four areas, namely deforestation-free, traceability, legitimate land title, and good labour practices, he said.
However, he acknowledged that the labour shortage remains one of the most significant unresolved challenges in Malaysia’s palm oil industry.
The industry continues to rely heavily on manual labour, particularly from foreign workers, for harvesting and infield collection activities.
According to the MPOB, plantation companies currently face a shortage of nearly 38,000 workers, with harvesting and infield collection activities accounting for about 55 per cent of the total shortfall.
"The year 2024 was anticipated to be a beacon of hope for this issue, but it has turned out differently," MPOB said.
Foreign workers currently account for 76 per cent of the workforce in this sector. Bernama
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Indonesia's renewable energy plans may put forests at risk
JAKARTA: Environmentalists are warning that Indonesia's ambitious plans to achieve net-zero emissions by 2060 rely too heavily on biofuels and risk a new wave of deforestation in the world's third-largest rainforest.
Heavily dependent on coal, Indonesia needs to transition away from fossil fuels and seeks to generate 75 gigawatts of electricity from renewable resources over the next 15 years, compared with 13 gigawatts today, said presidential envoy Hashim Djojohadikusumo at the U.N. summit on climate change last month.
A cornerstone of this push is the use of cleaner-burning biofuels, in which organic material is turned into liquid fuel.
Biofuels will help Indonesia cut down on expensive fuel imports, reduce greenhouse gases and increase palm oil production, which in turn will spur economic growth, the government has said. While mostly intended for the transportation sector, biofuels are also used at diesel-powered plants.
But cultivating the palm trees and sugarcane needed to create biomass at scale for the biofuel industry requires transforming vast amounts of land into plantations.
Indonesia's tropical rainforests could be at risk.
Forest Watch Indonesia estimates that deforestation could reach 4.56 million hectares in Indonesia in the next few years if the government aggressively mandates the use of biofuels across industries, including at power plants.
"New land is required to establish energy plantations to meet bioenergy needs," said Anggi Prayogo, a Forest Watch researcher. Instead, "the government should push more investments to other renewables, like solar and wind, to reduce green house gases."
The country's forests are critical to slowing climate change. The United Nations estimates Indonesia's trees store nearly 300 billion tonnes of carbon.
Cleaner fuel?
"The government must ensure that the use of palm oil for biofuels does not cause deforestation and environmental harm," said Bhima Yudhistira, executive director of Centre for Economic and Law Studies, a think tank, and noted that increasing production could require the conversion of more land.
Indonesia is already the world's biggest producer of palm oil, a versatile vegetable oil used in food, cosmetics and fuel. Last year, the country produced 47 million tonnes, with more than 10 million tonnes going to biodiesel.
The government implemented a moratorium on new plantations in 2011. But some 52,000 hectares of forests were still turned into plantations in 2022 and 2023 alone, according to Nusantara Atlas, which tracks deforestation in Indonesia.
Designed as a substitute for dirty fossil fuels, biofuels release fewer carbons directly into the atmosphere. However, when emissions arising from changes in land use are also considered, most biofuels actually emit more CO2 than petroleum, studies have shown.
Still, Indonesia has been ramping up biofuel production over the past decade and targets a 32% increase to 16 million kilolitres next year from 2023. In 2019, 660,000 kilolitres of biodiesel went to diesel power plants.
The government will require producers to make a blend of biodiesel that contains 40% palm oil and 60% diesel fuel in 2025, from 35% palm oil presently.
This will necessitate about 18 million kilolitres of crude palm oil, a 50% increase from 2023.
The country also wants to increase production of bioethanol, which is derived from sugar cane, to mix with gasoline. The government has allocated about 2 million hectares of forestland in South Papua for sugar cane plantations to reduce sugar imports.
A 2021 report by the Institute for Essential Services and Reform (IESR), a Jakarta think tank, projected potential demand for biofuels in Indonesia could reach 190 million oil tonnes equivalent by 2050.
Weaning off coal
More than 45% of Indonesia's CO2 emissions came from producing electricity in 2022, followed by industry and transportation, according to the International Energy Agency.
Coal is the main source of fuel for power plants, accounting for almost 66% of the power generation mix, followed by natural gas and hydro with 13.6% and 7.2% respectively.
The government has blamed a lack of private investment for a failure to meet its renewable energy targets since at least 2021. Indonesia has tapped only a fraction of its geothermal potential, considered the world's largest, and solar, wind and water are also underutilised, analysts said.
For example, it produced just 0.017% of its potential solar power of about 3 gigawatts last year, according to the Institute for Energy Economics and Financial Analysis, a U.S. think-tank.
The Ministry of Energy and Mineral Resources did not immediately respond to a request for comment.
Biofuels will still play a part in the country's energy mix, but researchers argue that the government should encourage more replanting of unproductive plantations or slash exports to meet domestic demand first.
"Indonesia exports more than half of palm oil production," said Fabby Tumiwa, IESR's executive director.
If rainforest loss is to be slowed, "then the government must reduce its export," he said. - The StarMY/ The Thomson Reuters Foundation (charitable arm of Thomson Reuters).
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Gujarat allots land to Godrej Agrovet for oil palm cultivation
New Delhi [India], December 15 (ANI): Godrej Agrovet informed stock exchanges that the Gujarat government has allotted area to it in three districts for the expansion of oil palm cultivation under the palm oil mission.
Godrej Marks Major Deal
Those three districts are Vadodara, Surat, and Tapi, the company informed stock exchanges in a filing late on Saturday. The filing didn't elaborate further details about the allotment of land.
India is the world's second-largest consumer and number one vegetable oil importer, and it meets 60 per cent of its needs through imports. A large part of it is palm oil and its derivatives, which are imported from Indonesia and Malaysia.
Although oilseed production in India has grown over the years, the production has lagged behind its consumption, resulting in continuous dependence on imports.
The central government launched the National Mission for Edible Oils - Oil Palm (NMEO-OP) in August 2021. The mission is committed to escalating oil palm cultivation and elevating Crude Palm Oil production to 11.20 lakh tonnes by 2025-26.
The scheme is presently operational in several states nationwide, covering a potential area of 21.75 lakh hectares.
The Oil Palm Mission has been designed to promote oil palm in new geographies, providing end-to-end support to farmers in terms of assistance in planting material, assured buyback from private players involved, and protecting the farmers from the global price volatility in oil palm by providing viability gap payment (VGP) to hedge farmers' risk. Free Press Journal India
December 14, 2024
Palm oil, climate and sustainability: Adapt, disclose and improve
The 11th of November 2024 was a busy day in the sustainability world – it was simultaneously the launch of the Roundtable for Sustainable Palm Oil (RSPO)’s 21st annual roundtable conference in Bangkok, and the launch of the United Nation’s 29th Climate Change Conference (COP29) in Baku, Azerbaijan. There are parallels between the two processes that go beyond a shared launch date this year. With the 29th COP having confirmed the deadline for updated NDCs by February 2025, the RSPO process provided some potential lessons learned for how we approach climate adaptation.
The RSPO was established 20 years ago, with the objective of ‘promoting the growth and use of sustainable oil palm products through credible global standards and engagement of stakeholders.’ The objective aligned the impetus of business growth of standardised production of an agricultural commodity, to the oversight provided by a multistakeholder approach. The voluntary coming together of the biggest companies in the palm oil sector happened partly because they received the brunt of the blame off the back of the devastating El Niño fires that blanketed Southeast Asia in haze in 1998, but also partly because the sector was prepared to take the effort to pull together to adapt to the changing expectations of stakeholders on sustainability. More PWC
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Success In Sabah: Saving Elephants In The Wild In Malaysia
Zoos repeatedly argue they are saving elephants from dangers in the wild by “conserving” them in a zoo. This is a conservation con. True conservation only happens where elephants live, in Asia and Africa. While there are perils that face wild elephants, it is also a fact that many innovative solutions are being utilized to keep them safe in their home countries. A few ingenious tactics are meeting with success in the state of Sabah, Malaysia, in northern Borneo.
Planting Peace
Elephants are squeezed into smaller and smaller areas when forests and natural habitats are taken away from other animals for agriculture, infrastructure, and development on behalf of humans. In Malaysia, elephants raid palm oil plantations to eat one of their favorite foods, palm leaves, leading to danger and death from human-elephant conflict. Fortunately, non-profits, government agencies, and a palm plantation owner are collaborating to create buffer zones of plants elephants don't like around the palm oil plantations, and corridors so elephants can travel more safely. Over the last three years, conservationists planted 50 acres of grasses that lure elephants away from the temptation of palm plants. The tall grasses provide an attractive and ever-present source of food for the wild elephants that roam in and out of Tabin Wildlife Reserve, And, unlike any other type of plant, grasses grow back again profusely after they have been consumed, creating not only a successful but a sustainable solution.
This kind of ingenuity is leading the way to a brighter and safer future for elephants and humans by providing new hope for their peaceful coexistence. In Defense of Animals
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Palm oil, climate and sustainability: Adapt, disclose and improve
The 11th of November 2024 was a busy day in the sustainability world – it was simultaneously the launch of the Roundtable for Sustainable Palm Oil (RSPO)’s 21st annual roundtable conference in Bangkok, and the launch of the United Nation’s 29th Climate Change Conference (COP29) in Baku, Azerbaijan. There are parallels between the two processes that go beyond a shared launch date this year. With the 29th COP having confirmed the deadline for updated NDCs by February 2025, the RSPO process provided some potential lessons learned for how we approach climate adaptation.
The RSPO was established 20 years ago, with the objective of ‘promoting the growth and use of sustainable oil palm products through credible global standards and engagement of stakeholders.’ The objective aligned the impetus of business growth of standardised production of an agricultural commodity, to the oversight provided by a multistakeholder approach. The voluntary coming together of the biggest companies in the palm oil sector happened partly because they received the brunt of the blame off the back of the devastating El Niño fires that blanketed Southeast Asia in haze in 1998, but also partly because the sector was prepared to take the effort to pull together to adapt to the changing expectations of stakeholders on sustainability. More PWC
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Success In Sabah: Saving Elephants In The Wild In Malaysia
Zoos repeatedly argue they are saving elephants from dangers in the wild by “conserving” them in a zoo. This is a conservation con. True conservation only happens where elephants live, in Asia and Africa. While there are perils that face wild elephants, it is also a fact that many innovative solutions are being utilized to keep them safe in their home countries. A few ingenious tactics are meeting with success in the state of Sabah, Malaysia, in northern Borneo.
Planting Peace
Elephants are squeezed into smaller and smaller areas when forests and natural habitats are taken away from other animals for agriculture, infrastructure, and development on behalf of humans. In Malaysia, elephants raid palm oil plantations to eat one of their favorite foods, palm leaves, leading to danger and death from human-elephant conflict. Fortunately, non-profits, government agencies, and a palm plantation owner are collaborating to create buffer zones of plants elephants don't like around the palm oil plantations, and corridors so elephants can travel more safely. Over the last three years, conservationists planted 50 acres of grasses that lure elephants away from the temptation of palm plants. The tall grasses provide an attractive and ever-present source of food for the wild elephants that roam in and out of Tabin Wildlife Reserve, And, unlike any other type of plant, grasses grow back again profusely after they have been consumed, creating not only a successful but a sustainable solution.
This kind of ingenuity is leading the way to a brighter and safer future for elephants and humans by providing new hope for their peaceful coexistence. In Defense of Animals
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December 13, 2024
EU's delay in implementing deforestation rules a breather for players' readiness: MPOB
KUALA LUMPUR: The delay in implementing the European Union Deforestation Regulation (EUDR) has given Malaysia's palm oil sector additional time to enhance its readiness for full compliance, according to the Malaysian Palm Oil Board (MPOB).
MPOB director-general Datuk Ahmad Parveez Ghulam Kadir said this window of opportunity allows the industry to engage more deeply with stakeholders, strengthen sustainability initiatives, and ensure Malaysia's continued prominence in the global palm oil market.
He said as the sector adapts to the evolving regulatory landscape, it remains well-positioned to uphold its commitment to sustainable palm oil production while meeting the growing demand for ethically sourced products in the EU and beyond.
"The EU's decision to delay the implementation of the EUDR presents a valuable opportunity for Malaysia's oil palm industry to further strengthen its foothold in the EU market while ensuring full compliance with the evolving regulatory framework.
"As the EU moves towards stricter environmental standards, Malaysia's palm oil sector has taken proactive measures to ensure its alignment with these new rules. A key component of this strategy is the emphasis on the Malaysian Sustainable Palm Oil (MSPO) certification, which has become mandatory for all palm oil producers in the country.
"This certification highlights Malaysia's commitment to sustainable practices, focusing on environmental protection, social responsibility, and traceability," he told Business Times. New Straits Times
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Indonesia, Norway launch RBC-4 to reduce emissions from deforestation
Jakarta (ANTARA) - The Indonesian and Norwegian governments have launched the fourth phase of contribution-based funding (RBC-4) to advance efforts to reduce emissions from deforestation and forest degradation (REDD+).
The launch of RBC-4 was carried out by the President's Special Envoy for Climate Change and Energy, Hashim Djojohadikusumo; Environment Minister Hanif Faisol Nurofiq; Forestry Minister Raja Juli Antoni; and Norwegian Ambassador to Indonesia and Timor-Leste Rut Kruger Giverin.
"Today's event is to launch the Emission Reduction Contribution phase 4 as a continuation of the good partnership between Indonesia and Norway within the framework of the FOLU Net Sink 2030 cooperation," Nurofiq noted in a written statement from the Environment Ministry on Thursday.
He explained that RBC-4 includes funding of US$60 million for Indonesia for the achievement of reducing greenhouse gas emissions in the 2019-2020 period. He remarked that the funding follows in the footsteps of the previous RBC-3 payment phase.
He remarked that RBC-1 received a payment of US$56 million for reducing emissions of 11.2 million tons of CO2e in the 2016-2017 period, while the RBC-2 and RBC -3 payments were made simultaneously, namely US$100 million for reducing emissions of 20 million tons of CO2e in 2017-2019.
According to Nurofiq, the payment proves Indonesia's strong commitment to establishing cooperation, collaboration, and collective action to face global environmental challenges.
Forestry Minister Raja Juli Antoni stated that the RBC-3 funding had earlier been distributed for various activities to achieve the 2030 FOLU Net Sink goals. Antara News
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Once ‘poor man’s cooking oil’, palm oil is now pricier than soyabean, sunflower oils
Prices rise on supply concerns and Indonesia plans to increase the oil’s share in biodiesel to 40%
By AJ VinayakSubramani Ra Mancombu
Palm oil, both refined and crude, is now costlier than other cooking oils such as sunflower and soyabean oils. Prices of palm oil have surged on rising supply concerns following floods in Malaysia and on Indonesia’s plans to increase export taxes and hike the edible oil’s share in biodiesel to 40 per cent, traders said. The Hindu Businessline
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UNIDO, NPPAN attracts €300m investments into Nigeria’s palm oil industry
The United Nations Industrial Development Organisation (UNIDO) in partnership with the National Palm Produce Association of Nigeria (NPPAN) has attracted a €300 million investment into the Nigeria’s palm oil industry.
In a statement made available to BusinessDay, Alphonsus Inyang, president of NPPAN said that UNIDO’s investment in the sector will boost local palm oil production and create over 300 jobs across the value chains.
Read also: Ellah Lakes eyes palm oil production in 2025
“The main purpose is to stimulate investments in the real sector and to use technology to make the industry attractive to investors. For a long time, the oil palm industry in Nigeria has been stagnant,” Inyang said.
The palm oil industry is not producing enough to meet industrial demand. Business DayNG
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Asian Agri Appreciates Plasma Palm Oil Farmers and Shares a Premium Of IDR 3.8 Billion
PEKANBARU – Asian Agri presents rewards to the plasma farmers it helps via premium share
on sales of certified palm oil or in 2023.
The total premium distributed reached more than IDR 3.8 billion to 38 Village Unit Cooperatives, which includes around 15,000 plasma farmers, in the event which took place at the Grand Jatra Hotel Pekanbaru, Thursday (12/12/2024).
The premium sharing program is a form of Asian Agri's appreciation for plasma farmers who consistently implement sustainable plantation practices in accordance with international certification standards.
Pengarapen Gurusinga, Regional Head of Asian Agri Riau, said that the goal of this program is
to encourage plasma farmers to continue maintaining and improving the quality of their
plantation goods.
"Farmers may help a sustainable palm oil sector by retaining Roundtable on Sustainable Palm Oil accreditation, particularly in overseas markets like Europe that favor ecologically friendly goods," said Pengarapen.
According to him, RSPO accreditation adds value to plasma farmers by providing access to a worldwide market that is becoming more selective about accepting palm oil goods.
Meanwhile, Rudy Rismanto, the Head of Partnership at Asian Agri, noted that collaborations with plasma farmers are one of the company's sustainable business strategies.
“This partnership provides benefits for both parties. "Apart from guaranteeing the company's supply of raw materials, farmers also receive assistance with optimal plantation management and guaranteed purchase of their harvest," explained Rudy.
"It is anticipated that the success gained by the first generation of plasma farmers would be
sustained by the following generation," he continued. Hallo Riau
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Cooperation Between Palm Oil Farmers Union And Nissin Foods Holdings-Japan
JAKARTA - Palm Oil Farmers Union (SPKS) and Nissin Foods Holdings-Japan have collaborated since 2018 to conduct a gap in the analysis of small farmers in the sustainable palm oil supply chain in Indonesia.
The findings of this sustainability gap became the basis for the launch of this collaboration on Tuesday, December 10, 2024 in Jakarta. This collaboration begins with building a joint pilot project so that small farmers are included in the Japanese supply chain industry in the future through an RSPO certification approach (Reundated on Sustainable Palm Oil).
The launch of this program is a form of Nissin Foods Holdings' commitment as a company that buys sustainable palm oil in Japan. In Indonesia, this program is run in collaboration with SPKS as one of the oil palm farmer organizations that plays an important role in supporting sustainable palm oil management at the small-scale farmer level.
Kei Saito, General Manager, Nissin Foods Holdings Company Planning Division said that Nissin Foods Holding is a buyer of palm oil in Japan that produces derivative products, especially instant noodles.
"We are committed to building a traceable and sustainable line-up of palm oil and supporting capacity building and sustainable practice of small-scale palm oil farmers. Nissin Foods Holdings is committed to sustainable procurement of palm oil, especially by involving small farmers in our supply chain," said Kei Saito.
"For several years, we have partnered with SPKS to facilitate dialogue with smallholders in Indonesia. We are very pleased to be able to launch this initiative with strong support from SPKS and the Sugih Waras Village community which will play an important role in the RSPO certification "Our goal is to use this project as a stepping stone to further improve sustainable agricultural practices and improve the livelihoods of small-scale farmers in Indonesia," explained Kei Saito.
Sabarudin, Chairman of the National SPKS appreciated Nissin Foods Holdings by starting an investment in small-scale farmers by building a sustainable supply chain for their market in Japan.
"We hope that the supply chain of companies in Japan can be supplied from 100 percent of small-scale palm oil farmers who are traceable, free of deforestation and sustainable. SPKS, can become an independent party or verifier to ensure the success of sustainable palm supply chains for markets in Japan," said SabaRUdin. VOI
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Empowering vulnerable women with palm oil and kernel oil processing facility, a dream come true
Asaasiam Vision International (AVI), a Non-Governmental Organization (NGO), has inaugurated a state-of-the-art palm oil and palm kernel oil processing facility in Akyem Oda Nkwanta, located in Ghana's Eastern Region.
The project, dubbed Vulnerable Women Economic Empowerment – Women in Palm Oil and Palm Kernel Production, aims to empower 200 vulnerable women in the community, fostering financial independence and improving livelihoods.
Transforming Lives Through Economic Empowerment
At the commissioning event on November 29, 2024, Dr. Joseph Asare, the founder of AVI, described the project as a realization of a long-held dream. “My vision is to make the world a better place for all, especially women, children, and persons living with disabilities,” he remarked. Dr. Asare emphasized that the facility would not only transform the lives of the women and their families but also contribute to addressing Ghana’s socio-economic challenges.
He encouraged the beneficiaries to embrace the opportunity and see themselves as co-owners of the initiative. “Work hard to promote the growth of this project so that others can benefit in the future,” he urged.
Collaborative Efforts and Community SupportDr. Asare expressed gratitude to Mr. Donald Didier, Board Chair, and Mrs. Alodie Didier, Special Advisor to the Board, for financing 70% of the project. The remaining 30% was funded by other board members. “This project was made possible through the generous support of individuals who believe in Asaasiam's vision,” he stated, calling on the community to support and ensure the project’s sustainability.
Nana Ofosuhene Apenteng II, Akwamuhene of Akyem Oda Nkwanta, commended AVI for its impactful work. He expressed gratitude for selecting the community for such a transformative initiative and pledged local support to help the project achieve its objectives.
Addressing Challenges in Palm Oil Production
The project targets 200 vulnerable women, primarily small-scale palm plantation farmers, to engage in commercial palm oil and palm kernel oil production. These women have traditionally faced significant post-harvest losses due to outdated harvesting techniques, lack of market access, and inefficient processing methods, leading to 40-45% losses. The new facility aims to reduce these losses, generate additional income, and create indirect employment opportunities for 300 more women.
Beyond economic empowerment, the project also seeks to support palm plantation farming and provide educational opportunities for the beneficiaries' children. Modern Ghana
EU's delay in implementing deforestation rules a breather for players' readiness: MPOB
KUALA LUMPUR: The delay in implementing the European Union Deforestation Regulation (EUDR) has given Malaysia's palm oil sector additional time to enhance its readiness for full compliance, according to the Malaysian Palm Oil Board (MPOB).
MPOB director-general Datuk Ahmad Parveez Ghulam Kadir said this window of opportunity allows the industry to engage more deeply with stakeholders, strengthen sustainability initiatives, and ensure Malaysia's continued prominence in the global palm oil market.
He said as the sector adapts to the evolving regulatory landscape, it remains well-positioned to uphold its commitment to sustainable palm oil production while meeting the growing demand for ethically sourced products in the EU and beyond.
"The EU's decision to delay the implementation of the EUDR presents a valuable opportunity for Malaysia's oil palm industry to further strengthen its foothold in the EU market while ensuring full compliance with the evolving regulatory framework.
"As the EU moves towards stricter environmental standards, Malaysia's palm oil sector has taken proactive measures to ensure its alignment with these new rules. A key component of this strategy is the emphasis on the Malaysian Sustainable Palm Oil (MSPO) certification, which has become mandatory for all palm oil producers in the country.
"This certification highlights Malaysia's commitment to sustainable practices, focusing on environmental protection, social responsibility, and traceability," he told Business Times. New Straits Times
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Indonesia, Norway launch RBC-4 to reduce emissions from deforestation
Jakarta (ANTARA) - The Indonesian and Norwegian governments have launched the fourth phase of contribution-based funding (RBC-4) to advance efforts to reduce emissions from deforestation and forest degradation (REDD+).
The launch of RBC-4 was carried out by the President's Special Envoy for Climate Change and Energy, Hashim Djojohadikusumo; Environment Minister Hanif Faisol Nurofiq; Forestry Minister Raja Juli Antoni; and Norwegian Ambassador to Indonesia and Timor-Leste Rut Kruger Giverin.
"Today's event is to launch the Emission Reduction Contribution phase 4 as a continuation of the good partnership between Indonesia and Norway within the framework of the FOLU Net Sink 2030 cooperation," Nurofiq noted in a written statement from the Environment Ministry on Thursday.
He explained that RBC-4 includes funding of US$60 million for Indonesia for the achievement of reducing greenhouse gas emissions in the 2019-2020 period. He remarked that the funding follows in the footsteps of the previous RBC-3 payment phase.
He remarked that RBC-1 received a payment of US$56 million for reducing emissions of 11.2 million tons of CO2e in the 2016-2017 period, while the RBC-2 and RBC -3 payments were made simultaneously, namely US$100 million for reducing emissions of 20 million tons of CO2e in 2017-2019.
According to Nurofiq, the payment proves Indonesia's strong commitment to establishing cooperation, collaboration, and collective action to face global environmental challenges.
Forestry Minister Raja Juli Antoni stated that the RBC-3 funding had earlier been distributed for various activities to achieve the 2030 FOLU Net Sink goals. Antara News
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Once ‘poor man’s cooking oil’, palm oil is now pricier than soyabean, sunflower oils
Prices rise on supply concerns and Indonesia plans to increase the oil’s share in biodiesel to 40%
By AJ VinayakSubramani Ra Mancombu
Palm oil, both refined and crude, is now costlier than other cooking oils such as sunflower and soyabean oils. Prices of palm oil have surged on rising supply concerns following floods in Malaysia and on Indonesia’s plans to increase export taxes and hike the edible oil’s share in biodiesel to 40 per cent, traders said. The Hindu Businessline
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UNIDO, NPPAN attracts €300m investments into Nigeria’s palm oil industry
The United Nations Industrial Development Organisation (UNIDO) in partnership with the National Palm Produce Association of Nigeria (NPPAN) has attracted a €300 million investment into the Nigeria’s palm oil industry.
In a statement made available to BusinessDay, Alphonsus Inyang, president of NPPAN said that UNIDO’s investment in the sector will boost local palm oil production and create over 300 jobs across the value chains.
Read also: Ellah Lakes eyes palm oil production in 2025
“The main purpose is to stimulate investments in the real sector and to use technology to make the industry attractive to investors. For a long time, the oil palm industry in Nigeria has been stagnant,” Inyang said.
The palm oil industry is not producing enough to meet industrial demand. Business DayNG
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Asian Agri Appreciates Plasma Palm Oil Farmers and Shares a Premium Of IDR 3.8 Billion
PEKANBARU – Asian Agri presents rewards to the plasma farmers it helps via premium share
on sales of certified palm oil or in 2023.
The total premium distributed reached more than IDR 3.8 billion to 38 Village Unit Cooperatives, which includes around 15,000 plasma farmers, in the event which took place at the Grand Jatra Hotel Pekanbaru, Thursday (12/12/2024).
The premium sharing program is a form of Asian Agri's appreciation for plasma farmers who consistently implement sustainable plantation practices in accordance with international certification standards.
Pengarapen Gurusinga, Regional Head of Asian Agri Riau, said that the goal of this program is
to encourage plasma farmers to continue maintaining and improving the quality of their
plantation goods.
"Farmers may help a sustainable palm oil sector by retaining Roundtable on Sustainable Palm Oil accreditation, particularly in overseas markets like Europe that favor ecologically friendly goods," said Pengarapen.
According to him, RSPO accreditation adds value to plasma farmers by providing access to a worldwide market that is becoming more selective about accepting palm oil goods.
Meanwhile, Rudy Rismanto, the Head of Partnership at Asian Agri, noted that collaborations with plasma farmers are one of the company's sustainable business strategies.
“This partnership provides benefits for both parties. "Apart from guaranteeing the company's supply of raw materials, farmers also receive assistance with optimal plantation management and guaranteed purchase of their harvest," explained Rudy.
"It is anticipated that the success gained by the first generation of plasma farmers would be
sustained by the following generation," he continued. Hallo Riau
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Cooperation Between Palm Oil Farmers Union And Nissin Foods Holdings-Japan
JAKARTA - Palm Oil Farmers Union (SPKS) and Nissin Foods Holdings-Japan have collaborated since 2018 to conduct a gap in the analysis of small farmers in the sustainable palm oil supply chain in Indonesia.
The findings of this sustainability gap became the basis for the launch of this collaboration on Tuesday, December 10, 2024 in Jakarta. This collaboration begins with building a joint pilot project so that small farmers are included in the Japanese supply chain industry in the future through an RSPO certification approach (Reundated on Sustainable Palm Oil).
The launch of this program is a form of Nissin Foods Holdings' commitment as a company that buys sustainable palm oil in Japan. In Indonesia, this program is run in collaboration with SPKS as one of the oil palm farmer organizations that plays an important role in supporting sustainable palm oil management at the small-scale farmer level.
Kei Saito, General Manager, Nissin Foods Holdings Company Planning Division said that Nissin Foods Holding is a buyer of palm oil in Japan that produces derivative products, especially instant noodles.
"We are committed to building a traceable and sustainable line-up of palm oil and supporting capacity building and sustainable practice of small-scale palm oil farmers. Nissin Foods Holdings is committed to sustainable procurement of palm oil, especially by involving small farmers in our supply chain," said Kei Saito.
"For several years, we have partnered with SPKS to facilitate dialogue with smallholders in Indonesia. We are very pleased to be able to launch this initiative with strong support from SPKS and the Sugih Waras Village community which will play an important role in the RSPO certification "Our goal is to use this project as a stepping stone to further improve sustainable agricultural practices and improve the livelihoods of small-scale farmers in Indonesia," explained Kei Saito.
Sabarudin, Chairman of the National SPKS appreciated Nissin Foods Holdings by starting an investment in small-scale farmers by building a sustainable supply chain for their market in Japan.
"We hope that the supply chain of companies in Japan can be supplied from 100 percent of small-scale palm oil farmers who are traceable, free of deforestation and sustainable. SPKS, can become an independent party or verifier to ensure the success of sustainable palm supply chains for markets in Japan," said SabaRUdin. VOI
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Empowering vulnerable women with palm oil and kernel oil processing facility, a dream come true
Asaasiam Vision International (AVI), a Non-Governmental Organization (NGO), has inaugurated a state-of-the-art palm oil and palm kernel oil processing facility in Akyem Oda Nkwanta, located in Ghana's Eastern Region.
The project, dubbed Vulnerable Women Economic Empowerment – Women in Palm Oil and Palm Kernel Production, aims to empower 200 vulnerable women in the community, fostering financial independence and improving livelihoods.
Transforming Lives Through Economic Empowerment
At the commissioning event on November 29, 2024, Dr. Joseph Asare, the founder of AVI, described the project as a realization of a long-held dream. “My vision is to make the world a better place for all, especially women, children, and persons living with disabilities,” he remarked. Dr. Asare emphasized that the facility would not only transform the lives of the women and their families but also contribute to addressing Ghana’s socio-economic challenges.
He encouraged the beneficiaries to embrace the opportunity and see themselves as co-owners of the initiative. “Work hard to promote the growth of this project so that others can benefit in the future,” he urged.
Collaborative Efforts and Community SupportDr. Asare expressed gratitude to Mr. Donald Didier, Board Chair, and Mrs. Alodie Didier, Special Advisor to the Board, for financing 70% of the project. The remaining 30% was funded by other board members. “This project was made possible through the generous support of individuals who believe in Asaasiam's vision,” he stated, calling on the community to support and ensure the project’s sustainability.
Nana Ofosuhene Apenteng II, Akwamuhene of Akyem Oda Nkwanta, commended AVI for its impactful work. He expressed gratitude for selecting the community for such a transformative initiative and pledged local support to help the project achieve its objectives.
Addressing Challenges in Palm Oil Production
The project targets 200 vulnerable women, primarily small-scale palm plantation farmers, to engage in commercial palm oil and palm kernel oil production. These women have traditionally faced significant post-harvest losses due to outdated harvesting techniques, lack of market access, and inefficient processing methods, leading to 40-45% losses. The new facility aims to reduce these losses, generate additional income, and create indirect employment opportunities for 300 more women.
Beyond economic empowerment, the project also seeks to support palm plantation farming and provide educational opportunities for the beneficiaries' children. Modern Ghana
December 10, 2024
Indonesia criticizes EU over inflexibility on deforestation regulation
Spat threatens broader bilateral ties, diplomats say
JAKARTA -- Indonesia has reacted angrily to the European Union's decision not to offer further concessions on its deforestation regulation (EUDR) that affects suppliers of goods produced in former forests, such as palm oil.
Diplomats and analysts have warned the spat risks straining the broader bilateral relationship between Brussels and Jakarta because there is little chance hundreds of thousands of Indonesian smallholder producers will be able to comply with the new rules in time.
The EU announced last week that after consultations it would not water down the EUDR beyond extending the deadline for compliance to the end of 2025 and six months later for smallholders.
The regulation aims to reduce deforestation by stopping products farmed on land deforested since 2020 from entering the EU. Farmers of palm oil, cacao, rubber, coffee, soy and cattle are expected to provide detailed data showing compliance.
Djatmiko Bris Witjaksono, Director General of International Trade Negotiations at Indonesia's Ministry of Trade, told Nikkei Asia: "Indonesia still believes that the EUDR must be canceled permanently."
"A one-year delay will not solve the main problems related to EUDR [...] such as compliance with WTO principles," Djatmiko added. He said that the law might have no impact on deforestation while also disrupting supply chains.
Eddy Martono, chair of the Indonesian Palm Oil Entrepreneurs Association (GAPKI), took a softer line.
"Gapki welcomes the postponement of the EUDR," he said. "In this delay, it is hoped that there will be a common ground that has not yet been agreed upon."
Indonesia is the world's largest exporter of palm oil, a commodity that is found in everything from biofuels to food and skin cream. Analysts say it is hard to calculate how much of Indonesia's palm oil and products made with it end up in the EU. The bloc accounts for about 10% of Indonesia's raw palm oil exports, according to The Observatory of Economic Complexity, but it is much harder to trace the provenance of oil used to make other items.Differences over geolocation data sharing and what areas would be classified as forest remain major unresolved issues.
A spokesperson for the European Commission said that the EUDR was World Trade Organization-compliant and that impact assessments showed the costs of compliance for companies were lower than its benefits. It also said that the EU was working with Indonesia and Malaysia, the world's second-largest exporter, to resolve outstanding issues. Malaysia has been much less vocal in its opposition to the EUDR.
When running for election last year, Indonesian President Prabowo Subianto launched a broadside against the EUDR. "We open our market to you, but you won't allow us to sell palm oil, and now we have problems trying to sell coffee, tea, cocoa," he said at an event attended by numerous diplomats. "It was the Europeans who came to our islands and forced us to plant tea, coffee, rubber, cacao and now you are saying we are deforesting."
"EU-Indonesia relations should be much greater than irritant on palm oil," a senior European diplomat told Nikkei. "But it takes a bit of work to overcome the first irritated reaction to the overall normative power of the EU on environmental issues that is felt by Indonesia as a kind of reflection of old times."
Critics say the regulation fails to acknowledge the realities of countries like Indonesia. The scale of the challenge can be seen in Jambi province on Sumatra. Here the local government has been working to roll out the government-backed Indonesian Sustainable Palm Oil standard. This became mandatory for companies in 2014 and will come into force for smallholders in 2025.
Only 58 of 192 palm oil companies operating in Jambi are ISPO certified, according to Rachmat Dharmawan, acting head of the Jambi Provincial Plantation Service. And of the 260,000 oil palm smallholders only some 3% have registered.
This year Dharmawan hopes his department will manage to register 1,000 producers. Laughing slightly, he pointed to a certificate expressing the official thanks of the minister of agriculture for Dharmawan's department's "high commitment" to issuing cultivation certificates. "Now imagine what it's like in other provinces."
The ISPO, like the EUDR, requires proof of legal title to land. Indonesia's land records are often patchy and disputed. Many farmers balk at the administrative costs. They are also reluctant to let the government take too close a look at their income and location of their plantations, which may be on land that is supposedly state-owned.
Dharmawan added that climate change and aging trees were also driving down yields, incentivizing deforesting protected areas to maintain output levels.
The provincial government's income relies heavily on palm oil so it is reluctant to take action that might depress production.
Parwoto, treasurer of the KUD Makarti farmer's cooperative in Jambi, said the EUDR was "something I don't know about -- all I know is the name."
Sofian Sahuri, the cooperative's secretary, said the organization was already registered with the voluntary Roundtable on Sustainable Palm Oil, which he hopes will help it deal with the EUDR. But he admits to frustration over the proliferation of competing sustainability standards. "Still, it will be harder for independent farmers."
Reconciling EU and Indonesian regulations is also challenging. EUDR registration requires geolocation data showing where products originate from to be uploaded and shared. However, Indonesia has strict regulations on disseminating geolocation data.
Another issue is the definition of forest. While the EU is using standards laid out by the United Nations Food and Agriculture Organization, Indonesia uses its own definitions.
"We've had meetings to reconcile this, but we have come back to the fact that we know already, that we have a different definition," said one senior European diplomat. "It's not very clear to me what is the way forward."
Meanwhile, some observers question whether the EUDR will even be effective in reducing deforestation. "Can the EU really affect a specific issue like deforestation when its purchasing power is so much less than what it used to be?" asked Jason Clay, senior vice president for market transformation at environmental group WWF. Asia Nikkei
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First RSPO identity preserved certified sustainable palm oil delivered to China
The first shipment of Roundtable on Sustainable Palm Oil (RSPO) identity preserved (IP) certified sustainable palm oil has been delivered to China.
Received in Shanghai port on 22 November, the 750-tonne shipment was spearheaded by Inner Mongolia Yili Industrial Group - Asia’s leading dairy brand - in partnership with Yihai Kerry Arawana Holdings Co Ltd (Yihai Kerry), the largest palm oil trader in China under the RSPO group membership of Wilmar.
Palm oil was a crucial ingredient in Yili’s ice cream production, with the company consuming 35,000 tonnes of the product in 2023, of which 360 tonnes (1.03%) were RSPO-certified under the Mass Balance (MB) model, the RSPO said.
The latest development marked Yili’s drive to expand its use of RSPO-IP certified palm oil and underlined the group’s commitment to a deforestation-free supply chain by 2030, the RSPO added. The delivery was particularly notable as it followed the August 2024 certification of Shanghai Kerry Food Industries (under Wilmar), making it the first site in China to obtain RSPO-IP certification.
The IP model ensures certified palm oil is kept separate from conventional supplies throughout the supply chain, guaranteeing its traceability and sustainability.
“We are very proud of this milestone achievement, not just for Yili Group, but also for the Chinese market as it represents a major step in realising China’s commitment to sustainability,” a Yili Group spokesperson said. OFI Magazine
Indonesia criticizes EU over inflexibility on deforestation regulation
Spat threatens broader bilateral ties, diplomats say
JAKARTA -- Indonesia has reacted angrily to the European Union's decision not to offer further concessions on its deforestation regulation (EUDR) that affects suppliers of goods produced in former forests, such as palm oil.
Diplomats and analysts have warned the spat risks straining the broader bilateral relationship between Brussels and Jakarta because there is little chance hundreds of thousands of Indonesian smallholder producers will be able to comply with the new rules in time.
The EU announced last week that after consultations it would not water down the EUDR beyond extending the deadline for compliance to the end of 2025 and six months later for smallholders.
The regulation aims to reduce deforestation by stopping products farmed on land deforested since 2020 from entering the EU. Farmers of palm oil, cacao, rubber, coffee, soy and cattle are expected to provide detailed data showing compliance.
Djatmiko Bris Witjaksono, Director General of International Trade Negotiations at Indonesia's Ministry of Trade, told Nikkei Asia: "Indonesia still believes that the EUDR must be canceled permanently."
"A one-year delay will not solve the main problems related to EUDR [...] such as compliance with WTO principles," Djatmiko added. He said that the law might have no impact on deforestation while also disrupting supply chains.
Eddy Martono, chair of the Indonesian Palm Oil Entrepreneurs Association (GAPKI), took a softer line.
"Gapki welcomes the postponement of the EUDR," he said. "In this delay, it is hoped that there will be a common ground that has not yet been agreed upon."
Indonesia is the world's largest exporter of palm oil, a commodity that is found in everything from biofuels to food and skin cream. Analysts say it is hard to calculate how much of Indonesia's palm oil and products made with it end up in the EU. The bloc accounts for about 10% of Indonesia's raw palm oil exports, according to The Observatory of Economic Complexity, but it is much harder to trace the provenance of oil used to make other items.Differences over geolocation data sharing and what areas would be classified as forest remain major unresolved issues.
A spokesperson for the European Commission said that the EUDR was World Trade Organization-compliant and that impact assessments showed the costs of compliance for companies were lower than its benefits. It also said that the EU was working with Indonesia and Malaysia, the world's second-largest exporter, to resolve outstanding issues. Malaysia has been much less vocal in its opposition to the EUDR.
When running for election last year, Indonesian President Prabowo Subianto launched a broadside against the EUDR. "We open our market to you, but you won't allow us to sell palm oil, and now we have problems trying to sell coffee, tea, cocoa," he said at an event attended by numerous diplomats. "It was the Europeans who came to our islands and forced us to plant tea, coffee, rubber, cacao and now you are saying we are deforesting."
"EU-Indonesia relations should be much greater than irritant on palm oil," a senior European diplomat told Nikkei. "But it takes a bit of work to overcome the first irritated reaction to the overall normative power of the EU on environmental issues that is felt by Indonesia as a kind of reflection of old times."
Critics say the regulation fails to acknowledge the realities of countries like Indonesia. The scale of the challenge can be seen in Jambi province on Sumatra. Here the local government has been working to roll out the government-backed Indonesian Sustainable Palm Oil standard. This became mandatory for companies in 2014 and will come into force for smallholders in 2025.
Only 58 of 192 palm oil companies operating in Jambi are ISPO certified, according to Rachmat Dharmawan, acting head of the Jambi Provincial Plantation Service. And of the 260,000 oil palm smallholders only some 3% have registered.
This year Dharmawan hopes his department will manage to register 1,000 producers. Laughing slightly, he pointed to a certificate expressing the official thanks of the minister of agriculture for Dharmawan's department's "high commitment" to issuing cultivation certificates. "Now imagine what it's like in other provinces."
The ISPO, like the EUDR, requires proof of legal title to land. Indonesia's land records are often patchy and disputed. Many farmers balk at the administrative costs. They are also reluctant to let the government take too close a look at their income and location of their plantations, which may be on land that is supposedly state-owned.
Dharmawan added that climate change and aging trees were also driving down yields, incentivizing deforesting protected areas to maintain output levels.
The provincial government's income relies heavily on palm oil so it is reluctant to take action that might depress production.
Parwoto, treasurer of the KUD Makarti farmer's cooperative in Jambi, said the EUDR was "something I don't know about -- all I know is the name."
Sofian Sahuri, the cooperative's secretary, said the organization was already registered with the voluntary Roundtable on Sustainable Palm Oil, which he hopes will help it deal with the EUDR. But he admits to frustration over the proliferation of competing sustainability standards. "Still, it will be harder for independent farmers."
Reconciling EU and Indonesian regulations is also challenging. EUDR registration requires geolocation data showing where products originate from to be uploaded and shared. However, Indonesia has strict regulations on disseminating geolocation data.
Another issue is the definition of forest. While the EU is using standards laid out by the United Nations Food and Agriculture Organization, Indonesia uses its own definitions.
"We've had meetings to reconcile this, but we have come back to the fact that we know already, that we have a different definition," said one senior European diplomat. "It's not very clear to me what is the way forward."
Meanwhile, some observers question whether the EUDR will even be effective in reducing deforestation. "Can the EU really affect a specific issue like deforestation when its purchasing power is so much less than what it used to be?" asked Jason Clay, senior vice president for market transformation at environmental group WWF. Asia Nikkei
--------
First RSPO identity preserved certified sustainable palm oil delivered to China
The first shipment of Roundtable on Sustainable Palm Oil (RSPO) identity preserved (IP) certified sustainable palm oil has been delivered to China.
Received in Shanghai port on 22 November, the 750-tonne shipment was spearheaded by Inner Mongolia Yili Industrial Group - Asia’s leading dairy brand - in partnership with Yihai Kerry Arawana Holdings Co Ltd (Yihai Kerry), the largest palm oil trader in China under the RSPO group membership of Wilmar.
Palm oil was a crucial ingredient in Yili’s ice cream production, with the company consuming 35,000 tonnes of the product in 2023, of which 360 tonnes (1.03%) were RSPO-certified under the Mass Balance (MB) model, the RSPO said.
The latest development marked Yili’s drive to expand its use of RSPO-IP certified palm oil and underlined the group’s commitment to a deforestation-free supply chain by 2030, the RSPO added. The delivery was particularly notable as it followed the August 2024 certification of Shanghai Kerry Food Industries (under Wilmar), making it the first site in China to obtain RSPO-IP certification.
The IP model ensures certified palm oil is kept separate from conventional supplies throughout the supply chain, guaranteeing its traceability and sustainability.
“We are very proud of this milestone achievement, not just for Yili Group, but also for the Chinese market as it represents a major step in realising China’s commitment to sustainability,” a Yili Group spokesperson said. OFI Magazine
December 09, 2024
Warsaw counts on Rome to block Mercosur deal
“If we had Italy on our side, we would probably have a blocking minority.”
As an EU-Mercosur deal was reached after 25 years, it faces one last stumbling block: member state approval and Poland hopes Italy will play a part in blocking the deal.
Negotiations on the international trade deal started in 1999 between the European Union and the Mercosur states, including Argentina, Brazil, Paraguay, Uraguay and, as of 2024, Bolivia.
On Friday, it was finally signed by European Commission President Ursula von der Leyen on behalf of the EU, and her counterparts from the four Mercosur states.
The deal, which will impact some 730 million people, seeks to establish tariff reductions, easier market access, and key pillars of sustainability. But not everyone is convinced.
Poland and France were two of the most vocal opponents of the Mercosur deal as both fear the impact on European agriculture of an excessive influx of foreign food products.
The Commission's assurances that no food products would enter the bloc that did not meet EU production standards and that access to the EU market would be restricted for "sensitive" products such as poultry or sugar did not convince Tusk.
But on the part of the trade deal to be voted on by a qualified majority, the opposition of Poland and France would not be enough to block the agreement, Tusk admitted.
“We don't have a blocking minority at the moment. Poland and France are currently the only states that are saying a hard ‘no’ [to the deal],” he told the media on Friday.
He added that Poland was counting on Italy to join the opposition, although it was unclear whether Rome would decide to join Warsaw and Paris in opposing the deal.
“If we had Italy on our side, we would probably have a blocking minority,” said Tusk.
According to sources close to Palazzo Chigi, Italian Prime Minister Giorgia Meloni does not intend to support the free trade agreement with Mercosur countries unless the deal includes stronger safeguards for EU farmers.
The proposed agreement will be published online and translated into all EU languages before being submitted to the Council and Parliament for ratification.
PiS supports the government's position
The EU-Mercosur deal is one of a growing number of issues, along with migration and fossil cars, on which Tusk's government speaks with one voice with the main opposition conservative party, PiS (ECR).
“I am against the signing of this relationship of the European Union with South American countries because it means unfair competition. We know that South America has completely different rigours relating to agriculture,” Karol Nawrocki, the PiS-backed candidate in the 2025 presidential election, said at a campaign rally on Sunday.
Nawrocki took the opportunity to slam Germany, which the PiS has traditionally been sceptical of and sarcastically called “the EU’s engine.”
“We know that Germany has its national interest in South America related to the export of its automotive and technological products, and that's why it is so adamant in driving the entire EU to sign the Mercosur agreement, which is unfavourable to Polish farmers,” he added.
“Thus, achieving a blocking majority is my obligation,” he said, without elaborating on how he would fulfil this promise as a presidential candidate. (Aleksandra Krzysztoszek | Euractiv.pl)
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EU Commission launches EUDR Information System as important step in preparation for application of law
The Regulation on Deforestation-free Products (EUDR) will enter into application at the end of 2025.
The European Commission has officially launched the EUDR Information System where due diligence statements under the EU Deforestation Regulation must be submitted.
Even before the law enters into application, it is a major milestone, allowing operators, traders and their representatives to submit due diligence statements to the relevant authorities and manage them.
The Information System is a key tool that demonstrates that products are not associated with deforestation or forest degradation.
As announced by the Commission in October, the system is now live and available for submitting and managing due diligence statements. Several stakeholders have already started using the system successfully.
Statements submitted in the LIVE server are to cover only products that will be made available on the market or exported after the entry into application of the EUDR. These statements have legal value and their content can be subject to checks by the Member States’ competent authorities. Europa
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EU’s Deforestation Law Delay Expected to Ease Trade Impact on Indonesia
Jakarta. The European Union’s (EU) decision to delay the enforcement of its anti-deforestation regulation by a year is expected to ease the policy’s impact on trade with Indonesia, according to an EU envoy.
The European Union Deforestation Regulation (EUDR) aims to block Indonesian palm oil originating from deforested areas from entering the EU market. Once in force, Indonesian farmers must prove that their palm oil is free from deforestation by providing the exact coordinates of their plantations. European customs officials would then verify these coordinates using satellite imagery.
As the world’s largest palm oil producer, Indonesia has strongly opposed the EUDR, arguing that it will place undue pressure on smallholder farmers.
The EUDR was initially scheduled to take effect by the end of this year. However, the EU decided to push the implementation back by one year. Large and medium companies are now required to comply with the new rules by the end of 2025, while micro- and small enterprises have until June 30, 2026.
“We have delayed the [EUDR] by a year, so it will not be in force this January. The extra year should allow us to be able to find common grounds, so it has minimum impact on our trade flow with Indonesia,” EU Ambassador to Indonesia Denis Chaibi told reporters in Jakarta on Monday.
According to Chaibi, Europe accounts for 10 percent of Indonesia’s palm oil exports. He noted that most of these shipments originate from large plantations, indirectly downplaying concerns over the regulation’s adverse effects on smallholders.
“These big plantations have adapted to the EUDR. We are looking at a very small part of the overall trade, but we understand the sensitivity around the smallholders’ concerns. But we already have some projects to prepare the [Indonesian] small-scale farmers. We are also working with the Indonesian government,” Chaibi said. Jakarta Globe
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Indonesia pioneers B40 Biodiesel Programme to cut carbon emissions by 40 million tonnes
Indonesia is set to make a groundbreaking step in its renewable energy efforts with the official launch of the B40 biodiesel programme on 1 January 2025.
The initiative, which integrates palm oil-based biodiesel into the country’s energy mix, is projected to slash carbon dioxide (CO2) emissions by an impressive 40 million tonnes annually, according to Airlangga Hartarto, Coordinating Minister for Economic Affairs.
Speaking at the 12th Council of Palm Oil Producing Countries (CPOPC) Ministerial Meeting, Hartarto stressed that the current Indonesian B35 programme has already reduced CO2 emissions by 32 million tonnes.
The new B40 scheme is expected to amplify these efforts, positioning Indonesia as a global leader in biodiesel innovation and carbon reduction strategies. This is reported by Vietnam News Agency, a partner of TV BRICS.
The source claims that by advancing its B40 biodiesel programme, Indonesia not only reaffirms its commitment to sustainability but also sets a compelling example for other countries seeking to balance economic growth with environmental responsibility. TV BRICS
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Malaysia’s SAF target could take off by 2030, report finds
In Malaysia, The Sun reported that Malaysia’s ambitious target to increase the domestic use of sustainable aviation fuel could begin by 2030, requiring about 42 million liters annually.
A report by BMI, a Fitch Solutions company, noted that Malaysia’s National Energy Transition Roadmap has set an ambitious target, aiming for a 47% mandate by 2050, starting with an initial 1%.
The report said while no date is set for the 1% mandate, projections suggest the projected SAF implementation would demand 65,000–70,000 tons of used cooking oil (UCO).
The report also highlighted Malaysia’s reliance on palm oil, with domestic consumption expected to reach 3.8 million tons in 2024/25, which offers some UCO supply to support initial SAF goals.
However, the BMI report noted that domestic UCO availability is limited as much of its palm oil is exported.
“Without alternative feedstocks, Malaysia’s ability to meet rising global SAF demand could be hindered. Efforts are under way to explore alternatives like bamboo, which align with international standards,” the BMI report stated. Biofuels Digest
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Tree Islands ‘Restore Biodiversity’ In Oil Palm Farms
Environmentalists have long worried about the negative impacts of oil palm cultivation, especially on biodiversity when forests are burned and turned into plantations.
Now researchers say there is a solution that could mitigate the damage.
Setting up forests or “tree islands” in large oil palm farms can help restore biodiversity and ecosystems by aiding the natural regeneration of native trees, their study suggests.
Increasing international demand for palm oil triggered vast forest destruction in Indonesia and Malaysia—responsible for 85 per cent of global palm oil production.
These plantations have been a catastrophe for endangered animals, such as tigers in Indonesia’s Sumatra. They also aggravate conflicts with local Indonesian communities on traditional land rights.
In 2023, with the production of 47 million tonnes of crude palm oil, Indonesia became the leading palm oil exporter in the world. But in the past two decades, the country has also lost 3 million hectares of natural forest areas, thanks to the spread of oil palm plantations.
Published this month in the journal Science, the study says the extensive conversion of Southeast Asian natural forests into plantations of African oil palm (Elaeis guineensis Jacq.) has led to alarming losses of biodiversity, ecosystem functioning and evolutionary history.
The researchers say it’s essential to protect the remaining forests to conserve their rich, tropical biodiversity.
In the study, the researchers looked at how ecological restoration contributes to the recovery of biodiversity in oil palm agricultural areas in Sumatra. The researchers strategically planted trees to set up 52 tree islands of different sizes and diversity levels to find out how the restoration strategies influence biodiversity in the oil palm agricultural area.
“The main implication of our study is that it supports the use of tree islands, strategically planted patches of native vegetation within agricultural landscapes, as a viable approach to restoring plant diversity in oil palm landscapes,” said Gustavo Paterno, an author of the study and postdoctoral researcher at Göttingen University in Germany.
The researchers observed that six years after being set up, tree islands hosted a broad range of native species, including more than 2,700 woody plant species. Eurasia Review
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Ellah Lakes eyes palm oil production in 2025
Ellah Lakes is targeting to start palm oil production in the first half of 2025. The company is also targeting palm kernel oil production in the future as it looks to consolidate its revenue base.
This was disclosed by Chuka Mordi, the company’s managing director, during its Annual General Meeting held on December 5.
Speaking to BusinessDay, Mordi said, “We start oil milling between Q1 and Q2 in 2025. The mill is almost fully installed and the commissioning should be by January-February and then production commences. We’ll be selling the kernels for a while. Then we’ll be producing palm kernel oil because we intend to acquire a palm kernel mill.” Business TodayNG
Warsaw counts on Rome to block Mercosur deal
“If we had Italy on our side, we would probably have a blocking minority.”
As an EU-Mercosur deal was reached after 25 years, it faces one last stumbling block: member state approval and Poland hopes Italy will play a part in blocking the deal.
Negotiations on the international trade deal started in 1999 between the European Union and the Mercosur states, including Argentina, Brazil, Paraguay, Uraguay and, as of 2024, Bolivia.
On Friday, it was finally signed by European Commission President Ursula von der Leyen on behalf of the EU, and her counterparts from the four Mercosur states.
The deal, which will impact some 730 million people, seeks to establish tariff reductions, easier market access, and key pillars of sustainability. But not everyone is convinced.
Poland and France were two of the most vocal opponents of the Mercosur deal as both fear the impact on European agriculture of an excessive influx of foreign food products.
The Commission's assurances that no food products would enter the bloc that did not meet EU production standards and that access to the EU market would be restricted for "sensitive" products such as poultry or sugar did not convince Tusk.
But on the part of the trade deal to be voted on by a qualified majority, the opposition of Poland and France would not be enough to block the agreement, Tusk admitted.
“We don't have a blocking minority at the moment. Poland and France are currently the only states that are saying a hard ‘no’ [to the deal],” he told the media on Friday.
He added that Poland was counting on Italy to join the opposition, although it was unclear whether Rome would decide to join Warsaw and Paris in opposing the deal.
“If we had Italy on our side, we would probably have a blocking minority,” said Tusk.
According to sources close to Palazzo Chigi, Italian Prime Minister Giorgia Meloni does not intend to support the free trade agreement with Mercosur countries unless the deal includes stronger safeguards for EU farmers.
The proposed agreement will be published online and translated into all EU languages before being submitted to the Council and Parliament for ratification.
PiS supports the government's position
The EU-Mercosur deal is one of a growing number of issues, along with migration and fossil cars, on which Tusk's government speaks with one voice with the main opposition conservative party, PiS (ECR).
“I am against the signing of this relationship of the European Union with South American countries because it means unfair competition. We know that South America has completely different rigours relating to agriculture,” Karol Nawrocki, the PiS-backed candidate in the 2025 presidential election, said at a campaign rally on Sunday.
Nawrocki took the opportunity to slam Germany, which the PiS has traditionally been sceptical of and sarcastically called “the EU’s engine.”
“We know that Germany has its national interest in South America related to the export of its automotive and technological products, and that's why it is so adamant in driving the entire EU to sign the Mercosur agreement, which is unfavourable to Polish farmers,” he added.
“Thus, achieving a blocking majority is my obligation,” he said, without elaborating on how he would fulfil this promise as a presidential candidate. (Aleksandra Krzysztoszek | Euractiv.pl)
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EU Commission launches EUDR Information System as important step in preparation for application of law
The Regulation on Deforestation-free Products (EUDR) will enter into application at the end of 2025.
The European Commission has officially launched the EUDR Information System where due diligence statements under the EU Deforestation Regulation must be submitted.
Even before the law enters into application, it is a major milestone, allowing operators, traders and their representatives to submit due diligence statements to the relevant authorities and manage them.
The Information System is a key tool that demonstrates that products are not associated with deforestation or forest degradation.
As announced by the Commission in October, the system is now live and available for submitting and managing due diligence statements. Several stakeholders have already started using the system successfully.
Statements submitted in the LIVE server are to cover only products that will be made available on the market or exported after the entry into application of the EUDR. These statements have legal value and their content can be subject to checks by the Member States’ competent authorities. Europa
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EU’s Deforestation Law Delay Expected to Ease Trade Impact on Indonesia
Jakarta. The European Union’s (EU) decision to delay the enforcement of its anti-deforestation regulation by a year is expected to ease the policy’s impact on trade with Indonesia, according to an EU envoy.
The European Union Deforestation Regulation (EUDR) aims to block Indonesian palm oil originating from deforested areas from entering the EU market. Once in force, Indonesian farmers must prove that their palm oil is free from deforestation by providing the exact coordinates of their plantations. European customs officials would then verify these coordinates using satellite imagery.
As the world’s largest palm oil producer, Indonesia has strongly opposed the EUDR, arguing that it will place undue pressure on smallholder farmers.
The EUDR was initially scheduled to take effect by the end of this year. However, the EU decided to push the implementation back by one year. Large and medium companies are now required to comply with the new rules by the end of 2025, while micro- and small enterprises have until June 30, 2026.
“We have delayed the [EUDR] by a year, so it will not be in force this January. The extra year should allow us to be able to find common grounds, so it has minimum impact on our trade flow with Indonesia,” EU Ambassador to Indonesia Denis Chaibi told reporters in Jakarta on Monday.
According to Chaibi, Europe accounts for 10 percent of Indonesia’s palm oil exports. He noted that most of these shipments originate from large plantations, indirectly downplaying concerns over the regulation’s adverse effects on smallholders.
“These big plantations have adapted to the EUDR. We are looking at a very small part of the overall trade, but we understand the sensitivity around the smallholders’ concerns. But we already have some projects to prepare the [Indonesian] small-scale farmers. We are also working with the Indonesian government,” Chaibi said. Jakarta Globe
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Indonesia pioneers B40 Biodiesel Programme to cut carbon emissions by 40 million tonnes
Indonesia is set to make a groundbreaking step in its renewable energy efforts with the official launch of the B40 biodiesel programme on 1 January 2025.
The initiative, which integrates palm oil-based biodiesel into the country’s energy mix, is projected to slash carbon dioxide (CO2) emissions by an impressive 40 million tonnes annually, according to Airlangga Hartarto, Coordinating Minister for Economic Affairs.
Speaking at the 12th Council of Palm Oil Producing Countries (CPOPC) Ministerial Meeting, Hartarto stressed that the current Indonesian B35 programme has already reduced CO2 emissions by 32 million tonnes.
The new B40 scheme is expected to amplify these efforts, positioning Indonesia as a global leader in biodiesel innovation and carbon reduction strategies. This is reported by Vietnam News Agency, a partner of TV BRICS.
The source claims that by advancing its B40 biodiesel programme, Indonesia not only reaffirms its commitment to sustainability but also sets a compelling example for other countries seeking to balance economic growth with environmental responsibility. TV BRICS
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Malaysia’s SAF target could take off by 2030, report finds
In Malaysia, The Sun reported that Malaysia’s ambitious target to increase the domestic use of sustainable aviation fuel could begin by 2030, requiring about 42 million liters annually.
A report by BMI, a Fitch Solutions company, noted that Malaysia’s National Energy Transition Roadmap has set an ambitious target, aiming for a 47% mandate by 2050, starting with an initial 1%.
The report said while no date is set for the 1% mandate, projections suggest the projected SAF implementation would demand 65,000–70,000 tons of used cooking oil (UCO).
The report also highlighted Malaysia’s reliance on palm oil, with domestic consumption expected to reach 3.8 million tons in 2024/25, which offers some UCO supply to support initial SAF goals.
However, the BMI report noted that domestic UCO availability is limited as much of its palm oil is exported.
“Without alternative feedstocks, Malaysia’s ability to meet rising global SAF demand could be hindered. Efforts are under way to explore alternatives like bamboo, which align with international standards,” the BMI report stated. Biofuels Digest
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Tree Islands ‘Restore Biodiversity’ In Oil Palm Farms
Environmentalists have long worried about the negative impacts of oil palm cultivation, especially on biodiversity when forests are burned and turned into plantations.
Now researchers say there is a solution that could mitigate the damage.
Setting up forests or “tree islands” in large oil palm farms can help restore biodiversity and ecosystems by aiding the natural regeneration of native trees, their study suggests.
Increasing international demand for palm oil triggered vast forest destruction in Indonesia and Malaysia—responsible for 85 per cent of global palm oil production.
These plantations have been a catastrophe for endangered animals, such as tigers in Indonesia’s Sumatra. They also aggravate conflicts with local Indonesian communities on traditional land rights.
In 2023, with the production of 47 million tonnes of crude palm oil, Indonesia became the leading palm oil exporter in the world. But in the past two decades, the country has also lost 3 million hectares of natural forest areas, thanks to the spread of oil palm plantations.
Published this month in the journal Science, the study says the extensive conversion of Southeast Asian natural forests into plantations of African oil palm (Elaeis guineensis Jacq.) has led to alarming losses of biodiversity, ecosystem functioning and evolutionary history.
The researchers say it’s essential to protect the remaining forests to conserve their rich, tropical biodiversity.
In the study, the researchers looked at how ecological restoration contributes to the recovery of biodiversity in oil palm agricultural areas in Sumatra. The researchers strategically planted trees to set up 52 tree islands of different sizes and diversity levels to find out how the restoration strategies influence biodiversity in the oil palm agricultural area.
“The main implication of our study is that it supports the use of tree islands, strategically planted patches of native vegetation within agricultural landscapes, as a viable approach to restoring plant diversity in oil palm landscapes,” said Gustavo Paterno, an author of the study and postdoctoral researcher at Göttingen University in Germany.
The researchers observed that six years after being set up, tree islands hosted a broad range of native species, including more than 2,700 woody plant species. Eurasia Review
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Ellah Lakes eyes palm oil production in 2025
Ellah Lakes is targeting to start palm oil production in the first half of 2025. The company is also targeting palm kernel oil production in the future as it looks to consolidate its revenue base.
This was disclosed by Chuka Mordi, the company’s managing director, during its Annual General Meeting held on December 5.
Speaking to BusinessDay, Mordi said, “We start oil milling between Q1 and Q2 in 2025. The mill is almost fully installed and the commissioning should be by January-February and then production commences. We’ll be selling the kernels for a while. Then we’ll be producing palm kernel oil because we intend to acquire a palm kernel mill.” Business TodayNG
December 08, 2024
Indonesia sovereign fund widens focus to food, agriculture, minerals
Chief investment officer says it will align with new president's priorities Asia Nikkei
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BPH Migas: Utilization of Biodiesel can Save Foreign Exchange
TEMPO.CO, Jakarta - The Downstream Oil and Gas Regulatory Agency (BPH Migas) stated that the presence of energy transition in providing energy distribution signifies that the energy sector is sensitive in responding to the needs of the global community.
The Secretary of the Downstream Oil and Gas Regulatory Agency (BPH Migas), Patuan Alfon Simanjuntak, said that various efforts have been made to realize this transition by using alternative energy, including the development of biodiesel.
According to data from the Ministry of Energy and Mineral Resources, mandatory use of 35 percent biodiesel or B35, has saved foreign exchange amounting to IDR 120.54 trillion.
"This is in line with the President's vision (Prabowo), because we know that we are following his vision and mission. Next year, it might also reach B40," Alfon said during a discussion titled 'Collaboration in Energy Transition: Developing an Adaptive and Innovative Oil and Gas Downstream Ecosystem' at the BPH Migas office, South Jakarta, on Friday, December 6, 2024.
Alfon expressed his optimism that by 2025, the utilization of biodiesel will not only save foreign exchange but also reduce imports, which will consequently provide support for energy availability domestically.
"So that our energy availability can be achieved by ourselves or in terms of energy self-sufficiency," he said.
Furthermore, for this energy transition, Alfon said that there are several important steps to be taken, one of which is infrastructure development. He emphasized that the government needs to expand and build infrastructure to support the use of new renewable energy.
According to Alfon, innovation in technology is also necessary to increase energy efficiency. In addition, the government needs to implement policies that support the use of renewable energy, such as fiscal incentives, subsidies for clean energy, and carbon taxation. Tempo
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Malaysia-Federal oversight over Sabah handicapping state development
Opinion Datuk Roger Chin
ONE of the most glaring contradictions in Malaysia’s regulatory framework is the requirement for federal permission on export permits for products originating from Sabah. This centralised control is not only inefficient but stands in stark opposition to the decentralisation principles enshrined in the Malaysia Agreement 1963 (MA63).
It actively undermines Sabah’s economic potential and prevents the state from fully benefiting from its rich natural resources, including palm oil, minerals, and oil & gas.
The Historical and Constitutional Context
The Malaysia Agreement 1963 was founded on promises of significant autonomy for Sabah and Sarawak, particularly over their natural resources and economic activities.
This autonomy was meant to recognise the unique needs and contributions of these regions. Yet, over the years, centralisation has eroded the spirit of MA63, leading to the current situation where the Federal Government exercises control over even the most localised aspects of Sabah’s economy, including export permits. Daily Express
Indonesia sovereign fund widens focus to food, agriculture, minerals
Chief investment officer says it will align with new president's priorities Asia Nikkei
--------
BPH Migas: Utilization of Biodiesel can Save Foreign Exchange
TEMPO.CO, Jakarta - The Downstream Oil and Gas Regulatory Agency (BPH Migas) stated that the presence of energy transition in providing energy distribution signifies that the energy sector is sensitive in responding to the needs of the global community.
The Secretary of the Downstream Oil and Gas Regulatory Agency (BPH Migas), Patuan Alfon Simanjuntak, said that various efforts have been made to realize this transition by using alternative energy, including the development of biodiesel.
According to data from the Ministry of Energy and Mineral Resources, mandatory use of 35 percent biodiesel or B35, has saved foreign exchange amounting to IDR 120.54 trillion.
"This is in line with the President's vision (Prabowo), because we know that we are following his vision and mission. Next year, it might also reach B40," Alfon said during a discussion titled 'Collaboration in Energy Transition: Developing an Adaptive and Innovative Oil and Gas Downstream Ecosystem' at the BPH Migas office, South Jakarta, on Friday, December 6, 2024.
Alfon expressed his optimism that by 2025, the utilization of biodiesel will not only save foreign exchange but also reduce imports, which will consequently provide support for energy availability domestically.
"So that our energy availability can be achieved by ourselves or in terms of energy self-sufficiency," he said.
Furthermore, for this energy transition, Alfon said that there are several important steps to be taken, one of which is infrastructure development. He emphasized that the government needs to expand and build infrastructure to support the use of new renewable energy.
According to Alfon, innovation in technology is also necessary to increase energy efficiency. In addition, the government needs to implement policies that support the use of renewable energy, such as fiscal incentives, subsidies for clean energy, and carbon taxation. Tempo
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Malaysia-Federal oversight over Sabah handicapping state development
Opinion Datuk Roger Chin
ONE of the most glaring contradictions in Malaysia’s regulatory framework is the requirement for federal permission on export permits for products originating from Sabah. This centralised control is not only inefficient but stands in stark opposition to the decentralisation principles enshrined in the Malaysia Agreement 1963 (MA63).
It actively undermines Sabah’s economic potential and prevents the state from fully benefiting from its rich natural resources, including palm oil, minerals, and oil & gas.
The Historical and Constitutional Context
The Malaysia Agreement 1963 was founded on promises of significant autonomy for Sabah and Sarawak, particularly over their natural resources and economic activities.
This autonomy was meant to recognise the unique needs and contributions of these regions. Yet, over the years, centralisation has eroded the spirit of MA63, leading to the current situation where the Federal Government exercises control over even the most localised aspects of Sabah’s economy, including export permits. Daily Express
December 07, 2024
What are the next steps for the EU-Mercosur trade deal?
By Reuters
--------
EU’s Mercosur Deal Facing Objections
Get caught up. Bloomberg
--------
EU snubs France to seal huge Latin American trade deal
Ursula von der Leyen announces South American trade accord, delighting her fellow Germans but infuriating France which calls the deal unacceptable. Politico
--------
EU-Mercosur deal met with celebration and anger
France and many European farmers' unions oppose the huge but controversial trade deal. At the same time, Germany, Spain, Argentina and Brazil have hailed the agreement. DW
--------
EU and Mercosur trade bloc finalise free trade deal opposed by France
Europe
The European Union and South America's Mercosur trade bloc said Friday they had finalised a free trade agreement that has been decades in the making. But the deal faces a tortuous battle for approval in Europe given opposition from France and other member states. France24
--------
Italy won't OK EU-Mercosur deal without farmer safeguards
Conditions not right to sign agreement - govt sources Ansa Brazil
--------
People’s movements raise concern over EU-Mercosur agreement
Experts and social movements worry about the agreement’s potential negative impacts on Brazilian industry and peasant struggle Peoples Movement
--------
EU farmers plan protests as Von der Leyen approves Mercosur trade deal
Deal objected to by France will, if ratified, cut tariffs on trade with Argentina, Brazil, Paraguay and Uruguay The Guardian
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Indonesia’s Ambassador highlights palm oil’s economic impact on developing nations
Indonesia’s Ambassador to Sri Lanka Dewi Gustina Tobing, on Thursday emphasised the critical role of palm oil in daily life and its broader economic impact on developing nations.
Speaking at the fifth Annual General Meeting of the Palm Oil Industry Association of Sri Lanka (POIASL), she underscored the transformative economic role of oil palm plantations, particularly in remote and underdeveloped areas.
She noted that these plantations act as catalysts for investment, infrastructure development and economic diversification.
“Oil palm plantations are often established in remote, underdeveloped areas, acting as catalysts for economic growth. They attract investment by providing access roads, guaranteed markets, and successful smallholder examples, which in turn stimulate sectors like transportation, banking, and trade. This development transforms rural areas into economic hubs, boosting smallholder incomes and creating a growing middle class,” she said.
Ambassador Tobing noted that oil palm smallholders’ higher and more stable incomes also enable them to repay loans ahead of schedule, demonstrating the sector’s financial sustainability and growth potential.
She also acknowledged palm oil as a versatile ingredient found in countless products used globally around the clock, from food to personal care and household goods. Financial TimesLK
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Malaysia eyes SAF production
KUALA LUMPUR (Reuters) — Malaysia plans to start producing sustainable aviation fuel in 2027, with an initial production capacity of one million tonnes per year, Plantation and Commodities Minister Johari Abdul Ghani said Nov. 26.
Production capacity will gradually increase based on factory output and feedstock availability, he said.
Malaysia, the world’s second-largest palm oil producer, is in a strategic position to become one of the world’s leading SAF producers, he added.
Under the government’s National Energy Transition Roadmap published in 2023, it established an SAF blending mandate starting with one per cent and aiming for a 47 per cent blend by 2050.
Johari said the government is also considering tax incentives to attract investors to Malaysia and establish the country as an SAF development hub. Producer
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Sustainable conservation efforts at eastern Sabah's oil palm plantations
KINABATANGAN: Peaceful coexistence between wildlife and humans is crucial, especially at oil palm plantations in eastern Sabah, where the estates are adjacent to dense forest.
Wildlife such as pygmy elephants (also known as the Bornean elephant), orangutans and hornbills often cross into the estates and cause damage, while humans also harm the animals.
The sustainable way is to coexist in harmony, which is both important for conservation and to mitigate crop damage.
One of the plantation companies for oil palm and softwood in Tawau, Sabah mitigates Bornean elephants trampling over the plantation by setting aside 1067 ha to be a Brumas Wildlife Corridor.
By doing this, Sabah Softwood Berhad Conservation Unit Head Mohd Hafizzul Samut said that the company has reduced their losses by 99%, from half a million ringgit a year to RM5,000.
He said that the 14km long corridor connects two large forest reserves, Ulu Kalumpang and Ulu Segama, and provides a pathway for the wildlife to travel from one forest to another.
The wildlife corridor was formerly a timber plantation, but the area has been rehabilitated into a forest, he said. The StarMY
What are the next steps for the EU-Mercosur trade deal?
By Reuters
--------
EU’s Mercosur Deal Facing Objections
Get caught up. Bloomberg
--------
EU snubs France to seal huge Latin American trade deal
Ursula von der Leyen announces South American trade accord, delighting her fellow Germans but infuriating France which calls the deal unacceptable. Politico
--------
EU-Mercosur deal met with celebration and anger
France and many European farmers' unions oppose the huge but controversial trade deal. At the same time, Germany, Spain, Argentina and Brazil have hailed the agreement. DW
--------
EU and Mercosur trade bloc finalise free trade deal opposed by France
Europe
The European Union and South America's Mercosur trade bloc said Friday they had finalised a free trade agreement that has been decades in the making. But the deal faces a tortuous battle for approval in Europe given opposition from France and other member states. France24
--------
Italy won't OK EU-Mercosur deal without farmer safeguards
Conditions not right to sign agreement - govt sources Ansa Brazil
--------
People’s movements raise concern over EU-Mercosur agreement
Experts and social movements worry about the agreement’s potential negative impacts on Brazilian industry and peasant struggle Peoples Movement
--------
EU farmers plan protests as Von der Leyen approves Mercosur trade deal
Deal objected to by France will, if ratified, cut tariffs on trade with Argentina, Brazil, Paraguay and Uruguay The Guardian
--------
Indonesia’s Ambassador highlights palm oil’s economic impact on developing nations
Indonesia’s Ambassador to Sri Lanka Dewi Gustina Tobing, on Thursday emphasised the critical role of palm oil in daily life and its broader economic impact on developing nations.
Speaking at the fifth Annual General Meeting of the Palm Oil Industry Association of Sri Lanka (POIASL), she underscored the transformative economic role of oil palm plantations, particularly in remote and underdeveloped areas.
She noted that these plantations act as catalysts for investment, infrastructure development and economic diversification.
“Oil palm plantations are often established in remote, underdeveloped areas, acting as catalysts for economic growth. They attract investment by providing access roads, guaranteed markets, and successful smallholder examples, which in turn stimulate sectors like transportation, banking, and trade. This development transforms rural areas into economic hubs, boosting smallholder incomes and creating a growing middle class,” she said.
Ambassador Tobing noted that oil palm smallholders’ higher and more stable incomes also enable them to repay loans ahead of schedule, demonstrating the sector’s financial sustainability and growth potential.
She also acknowledged palm oil as a versatile ingredient found in countless products used globally around the clock, from food to personal care and household goods. Financial TimesLK
--------
Malaysia eyes SAF production
KUALA LUMPUR (Reuters) — Malaysia plans to start producing sustainable aviation fuel in 2027, with an initial production capacity of one million tonnes per year, Plantation and Commodities Minister Johari Abdul Ghani said Nov. 26.
Production capacity will gradually increase based on factory output and feedstock availability, he said.
Malaysia, the world’s second-largest palm oil producer, is in a strategic position to become one of the world’s leading SAF producers, he added.
Under the government’s National Energy Transition Roadmap published in 2023, it established an SAF blending mandate starting with one per cent and aiming for a 47 per cent blend by 2050.
Johari said the government is also considering tax incentives to attract investors to Malaysia and establish the country as an SAF development hub. Producer
--------
Sustainable conservation efforts at eastern Sabah's oil palm plantations
KINABATANGAN: Peaceful coexistence between wildlife and humans is crucial, especially at oil palm plantations in eastern Sabah, where the estates are adjacent to dense forest.
Wildlife such as pygmy elephants (also known as the Bornean elephant), orangutans and hornbills often cross into the estates and cause damage, while humans also harm the animals.
The sustainable way is to coexist in harmony, which is both important for conservation and to mitigate crop damage.
One of the plantation companies for oil palm and softwood in Tawau, Sabah mitigates Bornean elephants trampling over the plantation by setting aside 1067 ha to be a Brumas Wildlife Corridor.
By doing this, Sabah Softwood Berhad Conservation Unit Head Mohd Hafizzul Samut said that the company has reduced their losses by 99%, from half a million ringgit a year to RM5,000.
He said that the 14km long corridor connects two large forest reserves, Ulu Kalumpang and Ulu Segama, and provides a pathway for the wildlife to travel from one forest to another.
The wildlife corridor was formerly a timber plantation, but the area has been rehabilitated into a forest, he said. The StarMY
December 06, 2024
Indonesia's palm oil industry awaits Prabowo’s Palm Policy Amid Tougher Challenges
President Prabowo Subianto has put the achievement of food and energy self-sufficiency in the next four to five years at the top of his economic development goals as one of the keys to bringing prosperity to the country’s 280 million people.
The President often mentions the strategic role of palm oil in achieving energy self-reliance and food security, and he is strongly committed to further boosting the palm oil industry toward reaching the long-term production target of 100 million tonnes annually by 2045, double the current annual output of around 50 million tonnes.
Prabowo also has committed to increasing the mandatory palm oil content in the biodiesel mix to 40 percent (B40), from 35 percent (B35) currently. Palm oil use in biodiesel accounted for 46 percent of total consumption last year, with the food industry taking up 44 percent and the oleochemical industry 10 percent.
The President’s idea to bolster palm oil production is indeed quite appropriate since the commodity is a very important component of the economy even now, as the Industry Ministry’s Agro-industry Director General Putu Juli Ardika elaborated last month at a business conference in Jakarta.
Ardika told the conference that the palm oil industry alone contributed 3.5 percent to Indonesia’s gross domestic product in 2023, employing 17 million workers both directly and indirectly, involving more than 5 million shareholders and accounting for 12 percent of total export earnings.
According to him, equally important is that the industry has expanded its growth centers, which had been concentrated in Java for many decades, to Sumatra, Kalimantan and Sulawesi. The commodity is also the most advanced in terms of downstreaming, as palm oil is now used in 193 manufacturing processes. Many agronomists and industry players share the view that the plan to double palm oil production is still environmentally viable and technically feasible, because there are still large, degraded areas that can be converted into oil palm estates without touching primary forests.
Yet, we are still waiting for Prabowo’s policy guidelines for turning the palm oil industry into a national strategic project. The cabinet composition he announced in late October does not convey a clear-cut message about bureaucratic coordination in administering, governing and overseeing the industry’s development
Interministerial coordination is crucial for this industry, because the palm oil sector transcends the jurisdictions of the agriculture, industry, energy, environment, trade, forestry, agrarian and spatial planning ministries.
We still painfully remember the damages inflicted on the palm oil industry by the series of erratic market intervention measures launched in the first semester of 2022, such as fixed price ceilings, domestic market obligation (DMO) and even a total ban on palm oil exports to cope with the skyrocketing prices of cooking oil.
The cooking oil debacle that occurred even after Indonesia had become the world’s largest palm oil producer only confirmed the extreme lack of cooperation and coordination within the government. The bitter experience with the cooking oil crisis reiterates the vital need of a single, authoritative governing body to manage and oversee the whole palm oil industry, especially because of its expanded use as inputs for both food and biofuel to cope with climate change.
Managing the competition in palm oil demand between the food and biofuel sectors and governing the industry require effective policy coordination. Palm oil producers are still dealing with much more formidable challenges in governance, legal uncertainty, unpredictable policies and too many agencies with overlapping authorities.
The perpetual lack of coordination in administration, governance and oversight is the most damaging deficiency in the palm oil ecosystem. This is quite unfortunate, because other factors like expansion opportunities for sustainable oil palm estates are quite good, and international market perception for this commodity has been improving steadily.
The Indonesian Oil Palm Association (GAPKI) has confirmed there is still a vast area of degraded land that can be converted into oil palm plantations without touching primary forests. Hence, there should not be concern about any competition between food and energy for land or over the long-term sustainability of palm oil-based biofuel. By utilizing degraded or marginal lands for biofuel feedstocks, countries can sidestep the food vs. fuel dilemma.
A study by the University of Maryland’s geographical sciences department on deforestation trends in Indonesia between 1991 and 2020 concluded, among other things, that the country has millions of hectares of underutilized, degraded land that was deforested prior to 2020. In addition, palm oil has been increasingly treated with positive news stories and opinion articles. It has even been recommended as a much-needed vegetable oil globally, not only for food and numerous other consumer products, but also biofuel.
Another piece of good news is that in October, the European Commission decided to postpone the enforcement of the European Union Deforestation-free Regulation (EUDR) scheduled to start on Dec. 31, which would have imposed big barriers to palm oil entering the international market.
Yet even a more positive view on the compelling case for palm oil is expressed in Not the End of the World by Hannah Ritchie, the lead researcher at Our World in Data, based at Oxford University. She uses data to understand global development and environmental challenges, and offers a strong perspective that palm oil is “an insanely productive plant” that yields far more oil per hectare than other crops, such as soybean or coconut.
This high productivity is crucial when considering the global demand for vegetable oils. The more positive international perception is particularly important, given the growing global population and increasing demand for food and consumer products as well as renewable energy. By producing more oil on less land, palm oil could actually help preserve forests and natural habitats that might otherwise be cleared for less efficient crops. Hopefully, President Prabowo will soon capitalize on these positive perceptions and issue strategic guidelines to boost the palm oil industry as the mainstay of Indonesia’s food security and energy self-sufficiency. The key is integrating governance of the palm oil industry and ensuring high sustainability standards in oil palm cultivation. (By Edi Suhardi/Jakarta A sustainability analyst)
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Bolstering Indonesia's palm oil industry to speed up energy transition
Jakarta (ANTARA) - Energy transition has become one of the main concerns of countries around the world, including Indonesia.
Having signed and ratified the Paris Agreement in 2016, Indonesia is pursuing the goals of limiting a global temperature rise to below 2 degrees Celsius and global warming to 1.5 degrees Celsius above pre-industrial levels.
The country is pursuing the goals by reducing carbon dioxide (CO2), or decarbonization, in all aspects of development.
President Prabowo Subianto, in his Asta Cita goals, has also highlighted the government’s commitment to reduce the release of carbon emissions in the industrialization process to maintain environmental sustainability.
To show its solid commitment to decarbonization, the government has set an ambitious target of cutting greenhouse gas emissions by raising the total carbon emission reduction target in the Enhanced Nationally Determined Contributions (ENDC) from 29 percent, or 835 million tons of CO2, to 32 percent, or 912 million tons of CO2, by 2030.
The transition to new renewable energy is part of the strategy to achieve the ENDC target.
This includes reducing the consumption of fossil fuels and shifting to biodiesel made from crude palm oil (CPO).
Thus, the palm oil industry has a key role in realizing the energy transition to biodiesel in the country.
The government has implemented the B30 (30 percent biodiesel mix) use program from 2020 and the B35 (35 percent biodiesel mix) program from 2023.
Furthermore, the B40 (40 percent biodiesel mix) program is planned to be rolled out in January 2025, while the B50 (50 percent biodiesel mix) program is projected to be implemented in 2026.
The Ministry of Energy and Mineral Resources is also currently preparing a concept for the development of biodiesel up to B100 as part of efforts to realize energy self-sufficiency.
In this regard, the capacity of CPO production in the country will determine how fast Indonesia can realize its transition to biofuels.
Challenges
In pursuing the energy transition, the government is facing the challenge of balancing domestic CPO needs for the food, oleochemical, and biodiesel sectors with export needs so as to maintain national economic income.
This is essential because CPO exports make a large contribution to state revenue every year. In 2024, the government believes that the economic value of the palm oil industry may reach up to Rp775 trillion (around US$48.78 billion).
When the government made B30 use mandatory in 2020, the CPO production capacity that year stood at around 47 million tons.
Meanwhile, CPO allocated for biodiesel reached 8.46 million kiloliters, or equal to 8.4 million tons. The remaining was used for export purposes (28.27 million tons) and to meet other domestic needs, such as food and oleochemicals.
The B30 program that year helped save Rp63.4 trillion (around US$3.9 billion) in foreign exchange and reduce greenhouse gas emissions by 14.34 million tons of CO2.
It also generated jobs for more than 1 million people in the upstream sector as well as increased farmers' income.
Meanwhile, the use of B30 in 2021 led to greenhouse gas emission reduction of 24.6 million tons of CO2, or 7.8 percent of the new and renewable energy achievement target for 2030.
In 2023, Indonesia's palm oil production reached 50.07 million tons. Of the total, around 32 million tons was exported, 13.15 million kiloliters was allocated for biodiesel production, and the rest for the food and oleochemical sectors.
According to the government, for the mandatory B40 biodiesel program in January 2025, the palm oil industry must allocate at least 16.08 million kiloliters of CPO per year so as not to disrupt exports.
As for the B50 program, 19.7 million kiloliters of CPO will be needed per year.
Given the importance of balancing CPO production for meeting export and domestic needs for biodiesel, food, and oleochemicals, the Indonesian government has formulated a strategy to ensure that the B40 and B50 biodiesel programs do not hinder exports of CPO and its derivative products.
The strategy involves the Ministry of Agriculture intensifying and rejuvenating oil palm plantations to increase domestic CPO production.
Currently, the average palm oil productivity is still at 3 tons per hectare equivalent to CPO. However, through the two programs, the figure can be increased to 5–6 tons per hectare.
Meanwhile, the Ministry of Energy and Mineral Resources is addressing the issue of CPO shortage for the B40 program in 2025 by encouraging 24 biofuel business entities (BU BBN) to increase production by 0.3 million kiloliters.
The current installed capacity for CPO production is pegged at 15.8 million kiloliters.
As for the B50 program in 2026, the government is targeting to create seven to nine CPO processing factories to meet the need for conversion to biodiesel of 19.7 million kiloliters.
Thus, bolstering the domestic palm oil industry would also help realize the transition to biodiesel, considering that the productivity of the palm oil industry will play a strategic role in making the transition a success. Antara News
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Malaysian Ambassador Urges Malaysia Companies To Drive Sustainable Future For Indonesian Palm Oil Industry
JAKARTA, Dec 5 (Bernama) -- Malaysia’s Ambassador to Indonesia, Datuk Syed Md Hasrin Tengku Hussin, has urged Malaysian government-linked companies and major businesses in Indonesia to use their collective expertise to create a brighter future for the palm oil industry as an economic driver and a model for sustainable development.
He said the palm oil industry has been crucial to Malaysia’s nation-building and achieving the 2030 Sustainable Development Goals (SDGs), contributing to economic growth, poverty alleviation, rural development, food security, and alternative energy.
“Yet, the industry has been subject to many challenges - negative campaigns and disinformation such as deforestation and disappearance of orangutans and tigers,” he said at the Palm Oil Insight Forum 2024: Bridging Sustainability, Innovation, and Market Strategies.
The event was organised by the embassy in partnership with the Council of Palm Oil Producing Countries (CPOPC) held at the Malaysian Embassy complex in South Jakarta, here today.
Syed Md Hasrin also emphasised the importance of addressing the European Union’s Deforestation Regulation (EUDR) as a significant challenge, urging industry players to align strategies that ensure compliance while protecting the livelihoods of millions dependent on the sector.
On the growing potential of palm oil in producing sustainable aviation fuel (SAF), he pointed out that the industry has a unique opportunity to position itself as a leader in biofuel innovation, thus contributing to the global transition to greener energy sources.
The ambassador also highlighted the importance of strengthening bilateral cooperation between Malaysia and Indonesia, with both nations sharing the responsibility through the CPOPC to promote sustainability and resilience in the industry.
“Enhanced collaboration can amplify our collective voice on the international stage,” he added.
As sustainability is no longer optional but rather, is a critical necessity for the industry’s future, Syed Md Hasrin also called for the continued promotion of rigorous sustainability standards to ensure the sector’s long-term viability.
-- BERNAMA
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American Academicians See 'Heroic Role' For Palm Oil
KUALA LUMPUR, Dec 6 (Bernama) -- Palm oil’s versatility, nutrient profile, and sustainable potential make it an essential yet often underappreciated resource, according to two academicians from the United States.
Fellow in the American Society for Nutrition Dr Roger Clemens and University of Maine Professor of Social Sciences in Medicine Dr Peter Pressman said with continued progress in sustainable practices, palm oil can meaningfully contribute to global health and development goals as advanced by the World Health Organisation (WHO).
“Palm oil occupies a unique and significant position in the broader context of global food security and environmental sustainability. While concerns about dietary fats and ecological impacts are valid, they must be addressed through evidence-based discussions that recognise both the challenges and the solutions.
“We advocate for balanced, science-based perspectives that consider palm oil’s nutritional value, its evolving environmental practices, and its socio-economic contributions,” they said in a statement today titled “A Heroic Role For Palm Oil.”
The academicians also urge the Malaysian oil palm industry to assert its leadership and move toward more sustainable practices.
“The sustainability of palm oil production has significantly improved over recent years, largely due to initiatives by the Malaysian Sustainable Palm Oil (MSPO), Roundtable Sustainable Palm Oil (RSPO) and efforts from producers to reduce its environmental impact. Thus, the palm oil industry is also making strides in waste-to-energy projects, utilising by-products like empty fruit bunches and palm kernel shells for fertiliser and energy generation, further lowering waste and greenhouse gas emissions,” they added.
They also contended that the economic empowerment among smallholders in palm oil will lead to improved access to education and healthcare while raising the quality of life in rural communities.
In Malaysia, the palm oil industry supports more than 450,000 small farmers, a significant driver of rural development and contributing to approximately 30-40 per cent of oil palm cultivation in the country.
-- BERNAMA
Indonesia's palm oil industry awaits Prabowo’s Palm Policy Amid Tougher Challenges
President Prabowo Subianto has put the achievement of food and energy self-sufficiency in the next four to five years at the top of his economic development goals as one of the keys to bringing prosperity to the country’s 280 million people.
The President often mentions the strategic role of palm oil in achieving energy self-reliance and food security, and he is strongly committed to further boosting the palm oil industry toward reaching the long-term production target of 100 million tonnes annually by 2045, double the current annual output of around 50 million tonnes.
Prabowo also has committed to increasing the mandatory palm oil content in the biodiesel mix to 40 percent (B40), from 35 percent (B35) currently. Palm oil use in biodiesel accounted for 46 percent of total consumption last year, with the food industry taking up 44 percent and the oleochemical industry 10 percent.
The President’s idea to bolster palm oil production is indeed quite appropriate since the commodity is a very important component of the economy even now, as the Industry Ministry’s Agro-industry Director General Putu Juli Ardika elaborated last month at a business conference in Jakarta.
Ardika told the conference that the palm oil industry alone contributed 3.5 percent to Indonesia’s gross domestic product in 2023, employing 17 million workers both directly and indirectly, involving more than 5 million shareholders and accounting for 12 percent of total export earnings.
According to him, equally important is that the industry has expanded its growth centers, which had been concentrated in Java for many decades, to Sumatra, Kalimantan and Sulawesi. The commodity is also the most advanced in terms of downstreaming, as palm oil is now used in 193 manufacturing processes. Many agronomists and industry players share the view that the plan to double palm oil production is still environmentally viable and technically feasible, because there are still large, degraded areas that can be converted into oil palm estates without touching primary forests.
Yet, we are still waiting for Prabowo’s policy guidelines for turning the palm oil industry into a national strategic project. The cabinet composition he announced in late October does not convey a clear-cut message about bureaucratic coordination in administering, governing and overseeing the industry’s development
Interministerial coordination is crucial for this industry, because the palm oil sector transcends the jurisdictions of the agriculture, industry, energy, environment, trade, forestry, agrarian and spatial planning ministries.
We still painfully remember the damages inflicted on the palm oil industry by the series of erratic market intervention measures launched in the first semester of 2022, such as fixed price ceilings, domestic market obligation (DMO) and even a total ban on palm oil exports to cope with the skyrocketing prices of cooking oil.
The cooking oil debacle that occurred even after Indonesia had become the world’s largest palm oil producer only confirmed the extreme lack of cooperation and coordination within the government. The bitter experience with the cooking oil crisis reiterates the vital need of a single, authoritative governing body to manage and oversee the whole palm oil industry, especially because of its expanded use as inputs for both food and biofuel to cope with climate change.
Managing the competition in palm oil demand between the food and biofuel sectors and governing the industry require effective policy coordination. Palm oil producers are still dealing with much more formidable challenges in governance, legal uncertainty, unpredictable policies and too many agencies with overlapping authorities.
The perpetual lack of coordination in administration, governance and oversight is the most damaging deficiency in the palm oil ecosystem. This is quite unfortunate, because other factors like expansion opportunities for sustainable oil palm estates are quite good, and international market perception for this commodity has been improving steadily.
The Indonesian Oil Palm Association (GAPKI) has confirmed there is still a vast area of degraded land that can be converted into oil palm plantations without touching primary forests. Hence, there should not be concern about any competition between food and energy for land or over the long-term sustainability of palm oil-based biofuel. By utilizing degraded or marginal lands for biofuel feedstocks, countries can sidestep the food vs. fuel dilemma.
A study by the University of Maryland’s geographical sciences department on deforestation trends in Indonesia between 1991 and 2020 concluded, among other things, that the country has millions of hectares of underutilized, degraded land that was deforested prior to 2020. In addition, palm oil has been increasingly treated with positive news stories and opinion articles. It has even been recommended as a much-needed vegetable oil globally, not only for food and numerous other consumer products, but also biofuel.
Another piece of good news is that in October, the European Commission decided to postpone the enforcement of the European Union Deforestation-free Regulation (EUDR) scheduled to start on Dec. 31, which would have imposed big barriers to palm oil entering the international market.
Yet even a more positive view on the compelling case for palm oil is expressed in Not the End of the World by Hannah Ritchie, the lead researcher at Our World in Data, based at Oxford University. She uses data to understand global development and environmental challenges, and offers a strong perspective that palm oil is “an insanely productive plant” that yields far more oil per hectare than other crops, such as soybean or coconut.
This high productivity is crucial when considering the global demand for vegetable oils. The more positive international perception is particularly important, given the growing global population and increasing demand for food and consumer products as well as renewable energy. By producing more oil on less land, palm oil could actually help preserve forests and natural habitats that might otherwise be cleared for less efficient crops. Hopefully, President Prabowo will soon capitalize on these positive perceptions and issue strategic guidelines to boost the palm oil industry as the mainstay of Indonesia’s food security and energy self-sufficiency. The key is integrating governance of the palm oil industry and ensuring high sustainability standards in oil palm cultivation. (By Edi Suhardi/Jakarta A sustainability analyst)
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Bolstering Indonesia's palm oil industry to speed up energy transition
Jakarta (ANTARA) - Energy transition has become one of the main concerns of countries around the world, including Indonesia.
Having signed and ratified the Paris Agreement in 2016, Indonesia is pursuing the goals of limiting a global temperature rise to below 2 degrees Celsius and global warming to 1.5 degrees Celsius above pre-industrial levels.
The country is pursuing the goals by reducing carbon dioxide (CO2), or decarbonization, in all aspects of development.
President Prabowo Subianto, in his Asta Cita goals, has also highlighted the government’s commitment to reduce the release of carbon emissions in the industrialization process to maintain environmental sustainability.
To show its solid commitment to decarbonization, the government has set an ambitious target of cutting greenhouse gas emissions by raising the total carbon emission reduction target in the Enhanced Nationally Determined Contributions (ENDC) from 29 percent, or 835 million tons of CO2, to 32 percent, or 912 million tons of CO2, by 2030.
The transition to new renewable energy is part of the strategy to achieve the ENDC target.
This includes reducing the consumption of fossil fuels and shifting to biodiesel made from crude palm oil (CPO).
Thus, the palm oil industry has a key role in realizing the energy transition to biodiesel in the country.
The government has implemented the B30 (30 percent biodiesel mix) use program from 2020 and the B35 (35 percent biodiesel mix) program from 2023.
Furthermore, the B40 (40 percent biodiesel mix) program is planned to be rolled out in January 2025, while the B50 (50 percent biodiesel mix) program is projected to be implemented in 2026.
The Ministry of Energy and Mineral Resources is also currently preparing a concept for the development of biodiesel up to B100 as part of efforts to realize energy self-sufficiency.
In this regard, the capacity of CPO production in the country will determine how fast Indonesia can realize its transition to biofuels.
Challenges
In pursuing the energy transition, the government is facing the challenge of balancing domestic CPO needs for the food, oleochemical, and biodiesel sectors with export needs so as to maintain national economic income.
This is essential because CPO exports make a large contribution to state revenue every year. In 2024, the government believes that the economic value of the palm oil industry may reach up to Rp775 trillion (around US$48.78 billion).
When the government made B30 use mandatory in 2020, the CPO production capacity that year stood at around 47 million tons.
Meanwhile, CPO allocated for biodiesel reached 8.46 million kiloliters, or equal to 8.4 million tons. The remaining was used for export purposes (28.27 million tons) and to meet other domestic needs, such as food and oleochemicals.
The B30 program that year helped save Rp63.4 trillion (around US$3.9 billion) in foreign exchange and reduce greenhouse gas emissions by 14.34 million tons of CO2.
It also generated jobs for more than 1 million people in the upstream sector as well as increased farmers' income.
Meanwhile, the use of B30 in 2021 led to greenhouse gas emission reduction of 24.6 million tons of CO2, or 7.8 percent of the new and renewable energy achievement target for 2030.
In 2023, Indonesia's palm oil production reached 50.07 million tons. Of the total, around 32 million tons was exported, 13.15 million kiloliters was allocated for biodiesel production, and the rest for the food and oleochemical sectors.
According to the government, for the mandatory B40 biodiesel program in January 2025, the palm oil industry must allocate at least 16.08 million kiloliters of CPO per year so as not to disrupt exports.
As for the B50 program, 19.7 million kiloliters of CPO will be needed per year.
Given the importance of balancing CPO production for meeting export and domestic needs for biodiesel, food, and oleochemicals, the Indonesian government has formulated a strategy to ensure that the B40 and B50 biodiesel programs do not hinder exports of CPO and its derivative products.
The strategy involves the Ministry of Agriculture intensifying and rejuvenating oil palm plantations to increase domestic CPO production.
Currently, the average palm oil productivity is still at 3 tons per hectare equivalent to CPO. However, through the two programs, the figure can be increased to 5–6 tons per hectare.
Meanwhile, the Ministry of Energy and Mineral Resources is addressing the issue of CPO shortage for the B40 program in 2025 by encouraging 24 biofuel business entities (BU BBN) to increase production by 0.3 million kiloliters.
The current installed capacity for CPO production is pegged at 15.8 million kiloliters.
As for the B50 program in 2026, the government is targeting to create seven to nine CPO processing factories to meet the need for conversion to biodiesel of 19.7 million kiloliters.
Thus, bolstering the domestic palm oil industry would also help realize the transition to biodiesel, considering that the productivity of the palm oil industry will play a strategic role in making the transition a success. Antara News
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Malaysian Ambassador Urges Malaysia Companies To Drive Sustainable Future For Indonesian Palm Oil Industry
JAKARTA, Dec 5 (Bernama) -- Malaysia’s Ambassador to Indonesia, Datuk Syed Md Hasrin Tengku Hussin, has urged Malaysian government-linked companies and major businesses in Indonesia to use their collective expertise to create a brighter future for the palm oil industry as an economic driver and a model for sustainable development.
He said the palm oil industry has been crucial to Malaysia’s nation-building and achieving the 2030 Sustainable Development Goals (SDGs), contributing to economic growth, poverty alleviation, rural development, food security, and alternative energy.
“Yet, the industry has been subject to many challenges - negative campaigns and disinformation such as deforestation and disappearance of orangutans and tigers,” he said at the Palm Oil Insight Forum 2024: Bridging Sustainability, Innovation, and Market Strategies.
The event was organised by the embassy in partnership with the Council of Palm Oil Producing Countries (CPOPC) held at the Malaysian Embassy complex in South Jakarta, here today.
Syed Md Hasrin also emphasised the importance of addressing the European Union’s Deforestation Regulation (EUDR) as a significant challenge, urging industry players to align strategies that ensure compliance while protecting the livelihoods of millions dependent on the sector.
On the growing potential of palm oil in producing sustainable aviation fuel (SAF), he pointed out that the industry has a unique opportunity to position itself as a leader in biofuel innovation, thus contributing to the global transition to greener energy sources.
The ambassador also highlighted the importance of strengthening bilateral cooperation between Malaysia and Indonesia, with both nations sharing the responsibility through the CPOPC to promote sustainability and resilience in the industry.
“Enhanced collaboration can amplify our collective voice on the international stage,” he added.
As sustainability is no longer optional but rather, is a critical necessity for the industry’s future, Syed Md Hasrin also called for the continued promotion of rigorous sustainability standards to ensure the sector’s long-term viability.
-- BERNAMA
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American Academicians See 'Heroic Role' For Palm Oil
KUALA LUMPUR, Dec 6 (Bernama) -- Palm oil’s versatility, nutrient profile, and sustainable potential make it an essential yet often underappreciated resource, according to two academicians from the United States.
Fellow in the American Society for Nutrition Dr Roger Clemens and University of Maine Professor of Social Sciences in Medicine Dr Peter Pressman said with continued progress in sustainable practices, palm oil can meaningfully contribute to global health and development goals as advanced by the World Health Organisation (WHO).
“Palm oil occupies a unique and significant position in the broader context of global food security and environmental sustainability. While concerns about dietary fats and ecological impacts are valid, they must be addressed through evidence-based discussions that recognise both the challenges and the solutions.
“We advocate for balanced, science-based perspectives that consider palm oil’s nutritional value, its evolving environmental practices, and its socio-economic contributions,” they said in a statement today titled “A Heroic Role For Palm Oil.”
The academicians also urge the Malaysian oil palm industry to assert its leadership and move toward more sustainable practices.
“The sustainability of palm oil production has significantly improved over recent years, largely due to initiatives by the Malaysian Sustainable Palm Oil (MSPO), Roundtable Sustainable Palm Oil (RSPO) and efforts from producers to reduce its environmental impact. Thus, the palm oil industry is also making strides in waste-to-energy projects, utilising by-products like empty fruit bunches and palm kernel shells for fertiliser and energy generation, further lowering waste and greenhouse gas emissions,” they added.
They also contended that the economic empowerment among smallholders in palm oil will lead to improved access to education and healthcare while raising the quality of life in rural communities.
In Malaysia, the palm oil industry supports more than 450,000 small farmers, a significant driver of rural development and contributing to approximately 30-40 per cent of oil palm cultivation in the country.
-- BERNAMA
December 05, 2024
Indonesia Targets End to Diesel Imports by 2026 in Push for Biofuels
Jakarta. The Indonesian government is planning to significantly boost the renewable component in diesel fuel to achieve self-sufficiency and eliminate diesel imports by 2026, Energy and Mineral Resources Minister Bahlil Lahadalia announced on Wednesday.
Speaking at the Indonesia Mining Summit at Mulia Hotel in Jakarta, Bahlil outlined a phased approach to increasing the use of biodiesel, a plant-based renewable fuel.
“The program will start with a 40 percent biodiesel blend (B40) next year. By January 1, 2026, we will aim for the implementation of B50, which will allow us to end diesel imports,” Bahlil said, referring to a 50 percent biodiesel mix in diesel fuel.
The minister added that the move would reduce Indonesia’s reliance on imported diesel while supporting the broader adoption of biofuels, including for gasoline, if domestic oil production continues to fall short of demand.
“President Prabowo may mandate the full adoption of biofuels for both diesel and gasoline products if necessary,” Bahlil said.
To meet the growing demand for renewable fuels, the government plans to accelerate upstream oil production by initiating operations at 301 new oil wells and launching extensive exploration activities. “We will put 60 areas up for open bidding between 2025 and 2026,” the minister added.
According to government data, Indonesia imported nearly 27 million kiloliters of oil fuel in 2023, including 5.1 million kiloliters of diesel.
Currently, the country produces approximately 15.8 million kiloliters of biodiesel annually, predominantly from crude palm oil. However, the implementation of the B50 program is projected to require an annual production of nearly 20 million kiloliters, highlighting the need for increased capacity in the renewable energy sector. Jakarta Globe
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German ministry under pressure to end tainted Chinese biofuel imports
Industry calls for certification system as local producers at brink of bankruptcy
AMBURG, Germany -- A loose alliance of German biofuel manufacturers, environmentalists and lawmakers is pressuring the government to stem the inflow of palm-oil-tainted biofuel from China and calling for the establishment of an effective inspection and sanction regime to oversee Chinese biofuel plants by Jan. 1.
European Union rules require the oil industry to meet defined greenhouse gas reduction quotas and offers options for achieving this, including allowing them to blend mineral fuels with biofuels. As the use of palm oil in biofuel production has in effect been banned in Germany and most other EU member states since 2023, imports of used fats and cooking oils from China as an alternative blending fuel have soared from late 2022. Nikkei Asia
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Top Producers Driving the Global Palm Oil Market
One of the most popular commodities in the world, palm oil can be found in everything from food items to cosmetics. It is a mainstay in numerous industries due to its affordability and adaptability. Although palm oil originated in Africa, it is now a worldwide commodity, with 85% of the world's supply coming from Indonesia and Malaysia. These two nations have emerged as the world's top palm oil producers during the past century, and their output is still rising.
50% of the world's population, primarily in Asian and African countries, directly depends on palm oil for cooking, and this dependence has only grown in the years to come. Palm oil is found in the consumer packaged food industry, where several names, including stearic acid, sodium lauryl sulfate, and vegetable oil refer to it.
Leading Producers and economic impact
Of all the vegetable oils, palm oil is the most commonly utilized, accounting for 40% of global consumption while using less than 6% of the area allocated for vegetable oil production. Palm oil is handy due to its distinct chemical properties. Its semi-solid state at room temperature makes it easy to store, and its resistance to oxidation makes it less likely to go rancid than other oils, extending its shelf life. Because of its great production, palm oil is very reasonably priced. 3.3 tons of palm oil may be produced annually on average from one hectare of palm plants. To ensure optimal use of the tree's resources, the oil is extracted by crushing the palm fruit and seeds.
Despite the fact that numerous nations, including the Netherlands and Papua New Guinea, have begun producing palm oil because of the strong financial returns, Indonesia and Malaysia continue to dominate the palm oil production market. Nearly 11 million people in Indonesia and Malaysia are directly or indirectly dependent on the production of palm oil, which has resulted in significant employment opportunities.
Indonesia (46.5 million metric tons), Malaysia (19.8 million metric tons), Thailand (3.7 million metric tons), Colombia (1.95 million metric tons), Nigeria (1.5 million metric tons), Guatemala (990,000 metric tons), Papua New Guinea (830,000 metric tons), Brazil (600,000 metric tons), Cote d'Ivoire (600,000 metric tons), and Honduras (595,000 metric tons) are the top producers of palm oil by volume in 2024.
Interestingly, India is the largest importer of palm oil, accounting for 22%, followed by China (13%), the European Union (9%), Pakistan (7%), and the United States (4%). Leaders in the palm oil plantation industry include Wilmar International and Provident Agro, which are valued at US$420 million and have a substantial impact on the industry.
Environmental impact
Although palm oil has transformed sectors, including food and cosmetics, the ecosystem is facing serious problems as a result of its explosive rise. The growth of palm oil plantations, especially in Southeast Asia, has further increased the intensity of deforestation. In Indonesia, large areas of forest have been destroyed due to land clearing on palm oil plantations. About 3 million hectares, or one-third of the country's forests, have been lost.
This deforestation is causing immense suffering to the wildlife, especially the native orangutans of Borneo. These palm oil plantations are actually destroying their natural habitat. Incineration is the most widely used process in the reclamation of land. These incineration processes emit air pollutants and extremely dangerous greenhouse gases. Beyond causing climatic change, it also generates 2.5 metric tons of greenhouse gases for every metric ton of palm oil produced.
With the increased demand for palm oil, solutions have to be found to address the situation. Through the Roundtable on Sustainable Palm Oil (RSPO) accreditation, which incentivizes businesses to produce palm oil in an ecologically and socially responsible manner, efforts are being made to lessen the environmental impact of palm oil production. Straits Research
Indonesia Targets End to Diesel Imports by 2026 in Push for Biofuels
Jakarta. The Indonesian government is planning to significantly boost the renewable component in diesel fuel to achieve self-sufficiency and eliminate diesel imports by 2026, Energy and Mineral Resources Minister Bahlil Lahadalia announced on Wednesday.
Speaking at the Indonesia Mining Summit at Mulia Hotel in Jakarta, Bahlil outlined a phased approach to increasing the use of biodiesel, a plant-based renewable fuel.
“The program will start with a 40 percent biodiesel blend (B40) next year. By January 1, 2026, we will aim for the implementation of B50, which will allow us to end diesel imports,” Bahlil said, referring to a 50 percent biodiesel mix in diesel fuel.
The minister added that the move would reduce Indonesia’s reliance on imported diesel while supporting the broader adoption of biofuels, including for gasoline, if domestic oil production continues to fall short of demand.
“President Prabowo may mandate the full adoption of biofuels for both diesel and gasoline products if necessary,” Bahlil said.
To meet the growing demand for renewable fuels, the government plans to accelerate upstream oil production by initiating operations at 301 new oil wells and launching extensive exploration activities. “We will put 60 areas up for open bidding between 2025 and 2026,” the minister added.
According to government data, Indonesia imported nearly 27 million kiloliters of oil fuel in 2023, including 5.1 million kiloliters of diesel.
Currently, the country produces approximately 15.8 million kiloliters of biodiesel annually, predominantly from crude palm oil. However, the implementation of the B50 program is projected to require an annual production of nearly 20 million kiloliters, highlighting the need for increased capacity in the renewable energy sector. Jakarta Globe
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German ministry under pressure to end tainted Chinese biofuel imports
Industry calls for certification system as local producers at brink of bankruptcy
AMBURG, Germany -- A loose alliance of German biofuel manufacturers, environmentalists and lawmakers is pressuring the government to stem the inflow of palm-oil-tainted biofuel from China and calling for the establishment of an effective inspection and sanction regime to oversee Chinese biofuel plants by Jan. 1.
European Union rules require the oil industry to meet defined greenhouse gas reduction quotas and offers options for achieving this, including allowing them to blend mineral fuels with biofuels. As the use of palm oil in biofuel production has in effect been banned in Germany and most other EU member states since 2023, imports of used fats and cooking oils from China as an alternative blending fuel have soared from late 2022. Nikkei Asia
--------
Top Producers Driving the Global Palm Oil Market
One of the most popular commodities in the world, palm oil can be found in everything from food items to cosmetics. It is a mainstay in numerous industries due to its affordability and adaptability. Although palm oil originated in Africa, it is now a worldwide commodity, with 85% of the world's supply coming from Indonesia and Malaysia. These two nations have emerged as the world's top palm oil producers during the past century, and their output is still rising.
50% of the world's population, primarily in Asian and African countries, directly depends on palm oil for cooking, and this dependence has only grown in the years to come. Palm oil is found in the consumer packaged food industry, where several names, including stearic acid, sodium lauryl sulfate, and vegetable oil refer to it.
Leading Producers and economic impact
Of all the vegetable oils, palm oil is the most commonly utilized, accounting for 40% of global consumption while using less than 6% of the area allocated for vegetable oil production. Palm oil is handy due to its distinct chemical properties. Its semi-solid state at room temperature makes it easy to store, and its resistance to oxidation makes it less likely to go rancid than other oils, extending its shelf life. Because of its great production, palm oil is very reasonably priced. 3.3 tons of palm oil may be produced annually on average from one hectare of palm plants. To ensure optimal use of the tree's resources, the oil is extracted by crushing the palm fruit and seeds.
Despite the fact that numerous nations, including the Netherlands and Papua New Guinea, have begun producing palm oil because of the strong financial returns, Indonesia and Malaysia continue to dominate the palm oil production market. Nearly 11 million people in Indonesia and Malaysia are directly or indirectly dependent on the production of palm oil, which has resulted in significant employment opportunities.
Indonesia (46.5 million metric tons), Malaysia (19.8 million metric tons), Thailand (3.7 million metric tons), Colombia (1.95 million metric tons), Nigeria (1.5 million metric tons), Guatemala (990,000 metric tons), Papua New Guinea (830,000 metric tons), Brazil (600,000 metric tons), Cote d'Ivoire (600,000 metric tons), and Honduras (595,000 metric tons) are the top producers of palm oil by volume in 2024.
Interestingly, India is the largest importer of palm oil, accounting for 22%, followed by China (13%), the European Union (9%), Pakistan (7%), and the United States (4%). Leaders in the palm oil plantation industry include Wilmar International and Provident Agro, which are valued at US$420 million and have a substantial impact on the industry.
Environmental impact
Although palm oil has transformed sectors, including food and cosmetics, the ecosystem is facing serious problems as a result of its explosive rise. The growth of palm oil plantations, especially in Southeast Asia, has further increased the intensity of deforestation. In Indonesia, large areas of forest have been destroyed due to land clearing on palm oil plantations. About 3 million hectares, or one-third of the country's forests, have been lost.
This deforestation is causing immense suffering to the wildlife, especially the native orangutans of Borneo. These palm oil plantations are actually destroying their natural habitat. Incineration is the most widely used process in the reclamation of land. These incineration processes emit air pollutants and extremely dangerous greenhouse gases. Beyond causing climatic change, it also generates 2.5 metric tons of greenhouse gases for every metric ton of palm oil produced.
With the increased demand for palm oil, solutions have to be found to address the situation. Through the Roundtable on Sustainable Palm Oil (RSPO) accreditation, which incentivizes businesses to produce palm oil in an ecologically and socially responsible manner, efforts are being made to lessen the environmental impact of palm oil production. Straits Research
December 04, 2024
EU deforestation law’s substance unchanged. One-year postponement agreed with support from Renew Europe
In line with the Renew Europe position, co-legislators from the European Parliament and the Council agreed a deal this evening to postpone the application of deforestation legislation by one year, as proposed by the European Commission.
Attempts by opponents of the Green Deal in the Parliament to weaken the legislation have been stopped. However, due to tight time constraints and concerns of some stakeholders, we agreed to the Commission proposal to postpone the application of the legislation by one year, as did EU Members States.
At the same time, we wanted to keep the architecture of the law intact in order to ensure forest protection and legal clarity for businesses. This was achieved in tonight’s trilogue negotiation.
Deforestation and forest degradation are happening worldwide at an alarming rate and European consumption is responsible for around 17% of tropical deforestation linked to internationally traded commodities such as wood, cattle, palm oil, soy, coffee and cocoa.
Pascal Canfin, Renew Europe’s Coordinator on the ENVI Committee, said:
“There will be no changes to the essence of the deforestation law, and only a 12-month postponement of its entry into force, as initially proposed by the European Commission. This is excellent news for all those who mobilised to defend this flagship Green Deal law, and for all the companies that will have to implement it and expect the greatest legal clarity from us. Europe remains at the forefront of forest protection worldwide. The next step will be the publication of risk categories by country, as soon as possible before June 2025. Attempts by the right wing of the house to weaken this law have led them to hit the wall. Renew Europe has worked and succeeded with partners in the Parliament and the Council to stop them.” Renew Europe
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EU Deforestation Law postponed, legislative changes scheduled
This evening, negotiators from the EU Member States and the Political Groups in the European Parliament finalised negotiations on the Deforestation Law.
"This is a victory; championed by the EPP Group. We successfully postponed the implementation of the Deforestation Law by one year, giving European businesses, foresters, and farmers the planning security they need while protecting them from excessive bureaucracy", said Christine Schneider MEP, the European Parliament's lead negotiator on the Deforestation Law.
But the EPP Group pushed for more than just a postponement. "The European Commission has committed itself to updating the Deforestation Law within a year. This is thanks to the EPP Group," Schneider explained. "First, data platforms tracking product origins and a risk classification system will be operational at least six months before the law takes effect. Second, from 2028, countries practising sustainable forest management and showing no deforestation will have the opportunity to be exempted from unnecessary red tape," Schneider continued.
"We ensured that the new law does what it is meant to: diminish illegal deforestation. We must not penalise those who are already managing forests sustainably. We need to help them continue doing so," concluded Schneider.
The vote in the European Parliament's Environment Committee is expected to take place this Wednesday, while the plenary session in December will confirm the agreement. EPP Group
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EU Commission welcomes provisional agreement on additional phase-in time for EU Deforestation Regulation
The Commission welcomes the provisional political agreement reached between the European Parliament and the Council on the Commission's proposal to grant a 12-month additional phasing-in period. This will ensure proper and effective implementation of the EU Deforestation Regulation (EUDR), while preserving its integrity. The Commission's proposal came as a response to feedback received from international partners, Member States and companies about their state of preparations and to give all parties concerned sufficient time to prepare.
Once formally adopted, the law will become applicable on 30 December 2025 for large companies and 30 June 2026 for micro- and small enterprises. This will allow third countries, Member States, operators and traders an extra year to prepare for the implementation of the Regulation.
Given the EUDR's novel character, the swift calendar, and the variety of international stakeholders involved, a 12-month additional time to phase in the system is a balanced solution to support operators around the world in securing a smooth implementation from the start. This is essential to guarantee certainty about the way forward and to ensure the success of the EUDR.
In the meantime, the Commission will continue providing further clarifications on the legislation and explore additional simplifications, in full compliance with the objectives of the Regulation, through updates of the guidelines and the frequently asked questions document.
The Commission proposal was part of a broader package of support measures released on 2 October including additional guidance documents and a stronger international cooperation framework to support global stakeholders, Member States and third countries in their preparations for the implementation of the EU Deforestation Regulation. The Commission aims to finalise the country benchmarking system as soon as possible but no later than 30 June 2025, in dialogue with most concerned countries. The Information System where businesses will register their due diligence statements will enter into operation on 4 December.
Next steps
The European Parliament and the Council will now formally have to adopt the targeted amendment of the EU Deforestation Regulation before it can come into effect. EC Europa
EU deforestation law’s substance unchanged. One-year postponement agreed with support from Renew Europe
In line with the Renew Europe position, co-legislators from the European Parliament and the Council agreed a deal this evening to postpone the application of deforestation legislation by one year, as proposed by the European Commission.
Attempts by opponents of the Green Deal in the Parliament to weaken the legislation have been stopped. However, due to tight time constraints and concerns of some stakeholders, we agreed to the Commission proposal to postpone the application of the legislation by one year, as did EU Members States.
At the same time, we wanted to keep the architecture of the law intact in order to ensure forest protection and legal clarity for businesses. This was achieved in tonight’s trilogue negotiation.
Deforestation and forest degradation are happening worldwide at an alarming rate and European consumption is responsible for around 17% of tropical deforestation linked to internationally traded commodities such as wood, cattle, palm oil, soy, coffee and cocoa.
Pascal Canfin, Renew Europe’s Coordinator on the ENVI Committee, said:
“There will be no changes to the essence of the deforestation law, and only a 12-month postponement of its entry into force, as initially proposed by the European Commission. This is excellent news for all those who mobilised to defend this flagship Green Deal law, and for all the companies that will have to implement it and expect the greatest legal clarity from us. Europe remains at the forefront of forest protection worldwide. The next step will be the publication of risk categories by country, as soon as possible before June 2025. Attempts by the right wing of the house to weaken this law have led them to hit the wall. Renew Europe has worked and succeeded with partners in the Parliament and the Council to stop them.” Renew Europe
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EU Deforestation Law postponed, legislative changes scheduled
This evening, negotiators from the EU Member States and the Political Groups in the European Parliament finalised negotiations on the Deforestation Law.
"This is a victory; championed by the EPP Group. We successfully postponed the implementation of the Deforestation Law by one year, giving European businesses, foresters, and farmers the planning security they need while protecting them from excessive bureaucracy", said Christine Schneider MEP, the European Parliament's lead negotiator on the Deforestation Law.
But the EPP Group pushed for more than just a postponement. "The European Commission has committed itself to updating the Deforestation Law within a year. This is thanks to the EPP Group," Schneider explained. "First, data platforms tracking product origins and a risk classification system will be operational at least six months before the law takes effect. Second, from 2028, countries practising sustainable forest management and showing no deforestation will have the opportunity to be exempted from unnecessary red tape," Schneider continued.
"We ensured that the new law does what it is meant to: diminish illegal deforestation. We must not penalise those who are already managing forests sustainably. We need to help them continue doing so," concluded Schneider.
The vote in the European Parliament's Environment Committee is expected to take place this Wednesday, while the plenary session in December will confirm the agreement. EPP Group
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EU Commission welcomes provisional agreement on additional phase-in time for EU Deforestation Regulation
The Commission welcomes the provisional political agreement reached between the European Parliament and the Council on the Commission's proposal to grant a 12-month additional phasing-in period. This will ensure proper and effective implementation of the EU Deforestation Regulation (EUDR), while preserving its integrity. The Commission's proposal came as a response to feedback received from international partners, Member States and companies about their state of preparations and to give all parties concerned sufficient time to prepare.
Once formally adopted, the law will become applicable on 30 December 2025 for large companies and 30 June 2026 for micro- and small enterprises. This will allow third countries, Member States, operators and traders an extra year to prepare for the implementation of the Regulation.
Given the EUDR's novel character, the swift calendar, and the variety of international stakeholders involved, a 12-month additional time to phase in the system is a balanced solution to support operators around the world in securing a smooth implementation from the start. This is essential to guarantee certainty about the way forward and to ensure the success of the EUDR.
In the meantime, the Commission will continue providing further clarifications on the legislation and explore additional simplifications, in full compliance with the objectives of the Regulation, through updates of the guidelines and the frequently asked questions document.
The Commission proposal was part of a broader package of support measures released on 2 October including additional guidance documents and a stronger international cooperation framework to support global stakeholders, Member States and third countries in their preparations for the implementation of the EU Deforestation Regulation. The Commission aims to finalise the country benchmarking system as soon as possible but no later than 30 June 2025, in dialogue with most concerned countries. The Information System where businesses will register their due diligence statements will enter into operation on 4 December.
Next steps
The European Parliament and the Council will now formally have to adopt the targeted amendment of the EU Deforestation Regulation before it can come into effect. EC Europa
December 03, 2024
First FTA between Malaysia-UK set to boost trade
The first comprehensive Free Trade Agreement (FTA) between Malaysia and the United Kingdom (UK), through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), will boost trade and investment relations between both countries.
Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the UK's entry as a Group of Seven (G7) member and leading advocate of the rules-based trading system brings significant value to the CPTPP.
In his speech at the UK's CPTPP countdown ceremony, Tengku Zafrul said the UK remains a strategic trading partner to Malaysia, with total trade reaching RM14 billion (US$3 billion) in the first 10 months of 2024.
"These numbers will improve, through increased Malaysian exports of sustainable palm oil, aerospace parts, oil and gas, renewable energy, environmental products, electrical and electronics and lifestyle products, and British exports of machinery, pharmaceuticals, chocolates and confectionaries and high-tech goods.
"Furthermore, UK exporters can also leverage the 16 FTAs Malaysia has ratified, including the Regional Comprehensive Economic Partnership (RCEP) and many others," he said.
The UK is scheduled to enter the CPTPP on Dec 15, 2024.
Tengku Zafrul said the electrical and electronics sector would benefit from the FTA between Malaysia and the UK through the CPTPP.
He said British investors will appreciate Malaysia's political stability and its strong rule of law, which supports a conducive landscape for investors seeking to establish their manufacturing or services hub in Asia.
Policies like the New Industrial Master Plan (NIMP) 2030, the National Energy Transition Roadmap (NETR), the National Semiconductor Strategy (NSS) and the Green Investment Strategy, are all aimed at attracting investments that would promote sustainable, equitable and inclusive growth.
"Besides, the Malaysian government is serious about the execution of its industrial and other structural reforms," stressed Tengku Zafrul.
On Malaysia's ASEAN chairmanship in 2025, Tengku Zafrul said it is important for UK businesses to invest and collaborate with neutral and non-aligned partners as ASEAN's neutrality and centrality have brought about long-standing regional peace. Astro Awani
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Indonesia's Ministry of Environment to Draft Roadmap to reduce GHGs in palm oil plantations
JAKARTA – The ministry of environment (KLH) is drafting a roadmap to reduce greenhouse gas (GHG) emission in Indonesia, including from methane produced in the palm oil industries.
“We’ve seen a good practice of liquid waste treatment, including the use of methane for power generation,” Environment Minister Hanif Faisol said in a press statement on Wednesday (27/11/2024).
Minister Hanif underlined the urgency of accelerating the methane treatment to lift the reputation of Indonesia in mitigating the impacts of global climate change. For such purpose, he had made a visit to the waste treatment conducted by PT Musim Mas in Pelalawan regency, Riau province.
“The government is drafting a regulation. It could be a ministerial regulation or decree of environmental control agency (BPLH) for application of the technology in all palm oil industries,” he said.
According to him, there has been a significant potential of methane emission from Indonesian palm oil industries. “Based on a study, the production of CPO in Indonesia can produce around 900,000 tons of methane per year. If converted to carbon dioxide emission, it is equivalent to 35 million tons of CO2,” he said.
“We’re pursuing discussions with many groups of people, including with global partners to accelerate the implementation of methane capture technology. This step will provide an incentive related to carbon credit , which is very important in developing a system of carbon climate,” he said.
The captured methane is used for power generation to support the operation of plantations. One facility of methane capture with power generation capacity of 1.0 megawatt can provide electricity for 1,600 houses in villages. (*) Source: sawitkita.id
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Supermarkets off track to meet goal to halt deforestation from food, WWF warns
Supermarkets are well off track to meet a goal to secure deforestation-free food by next year, environmental charity WWF has warned.
The latest annual report from WWF on progress towards commitments to halve the environmental impact of the average UK weekly shop by 2030 has found supermarkets are off track on a number of climate and nature measures.
And a key milestone – to ensure food products such as soy, beef, cocoa and palm oil are not causing deforestation or conversion of wild areas to agriculture by 2025 – is unlikely to be met without immediate action, the report said.
WWF warns the production and distribution of food – a third of which goes to waste – is responsible for 70% of the nature loss the world is witnessing and a third of greenhouse gases, destroying habitats and driving climate change.
This, in turn, is putting food security at risk, as pollinators decline and climate change drives droughts, downpours and floods that ruin crops and push up prices.
As part of an initiative with WWF which started in 2021, seven of the UK’s major supermarkets have made commitments to halve the environmental impact of shopping baskets by 2030.
The third annual report on the initiative uses data submitted voluntarily by 10 supermarkets making up more than 90% of the market to assess sector-wide progress towards the goal.
The latest report shows a “mixed picture” across the sector, with some progress including on greenhouse gas emissions directly associated with supermarkets themselves, as well sourcing palm oil free from deforestation and seafood that is covered by certification schemes.
But while there is also individual progress within some retailers to improve sourcing, WWF warned retailers were “consistently struggling to make progress” in areas where changes across the system were needed.
The report warns only 4.5% of the soy which enters the food retail chain – mainly to feed chickens, pigs, farmed fish and dairy cows – is verified as not causing deforestation, while the figure for cocoa is 0.3%.
Supermarkets are selling twice the target proportion of meat and eggs, and shifting consumers towards a healthier, more sustainable diet – to cut greenhouse gases and land used for livestock and feed – requires collective action across government and industry, the report said.
WWF warned that since its initiative began in 2021, the world has lost 7.9 million hectares of tree cover – an area almost the size of Austria.
Despite engagement by supermarkets, progress to cut deforestation out of the food supply chain has stalled, with major international traders not responding to calls for action and the last government failing to deliver promised legislation, the environmental group said.
It is calling on supermarkets to invest in monitoring at farms where there is a high risk of deforestation in commodities such as soy, beef, palm oil and cocoa, and ceasing to source produce for traders who do not have credible plans to make sure supplies are deforestation-free by 2025.
Retailers should also actively promote alternative protein choices to halve meat sales in line with WWF’s “livewell” diet, to help curb demand for beef and soy used in animal feed which come with a risk of deforestation, it said. YahooUK
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EUDR – A Lesson for Commonwealth Countries to Embrace a National Approach to Data Management
A blog by Dr. Benjamin Kwasi Addom, Adviser, Agriculture & Fisheries Trade Policy, Commonwealth Connectivity Agenda, Commonwealth Secretariat.
As the global push for environmental accountability gathers pace, the European Union’s Deforestation Regulation (EUDR) has emerged as a landmark law targeting deforestation and forest degradation. With its stringent requirements for traceability, due diligence, and compliance, the EUDR carries significant implications not only for companies exporting to the EU but also for the nations producing these commodities. At the heart of EUDR compliance lies effective data management, a challenge for many sourcing nations grappling with fragmented and uncoordinated data ecosystems.
In this first instalment of a three-part blog series, we examine the valuable lessons EUDR offers to Commonwealth countries, highlighting the pressing need for cohesive national data management strategies to navigate these evolving global demands successfully.
The European Union Deforestation Regulation (EUDR)
The EUDR is a new EU law designed to curtail the production and consumption of commodities and products linked to deforestation and forest degradation. Under the regulation, companies seeking to place, supply, or export specified products and commodities on the EU market must ensure and demonstrate that their products do not contribute to deforestation. They must also comply with the laws of the producing country and provide a due diligence statement.
The list of affected commodities includes cocoa, coffee, and palm oil, alongside derived products such as chocolate. A full list is available from the EU. Breaching the regulation exposes companies to severe penalties, such as fines of up to 4% of annual turnover, confiscation of non-compliant products, exclusion from public procurement opportunities, and temporary bans on marketing relevant products.
While primary responsibility lies with companies entering the EU market, this obligation indirectly shifts to producers, farmers, cooperatives, micro, small and medium enterprises (MSMEs), and the countries where these goods are sourced.
Data Coordination: The Keystone of EUDR Success
The cornerstone of EUDR compliance is traceability, which hinges on the collection of comprehensive data about commodities, including their country of origin and precise geolocation of production. The success of the regulation depends on the availability and accessibility of high-quality data, which in turn relies on robust data infrastructure to ensure seamless coordination from producers to consumers.
Unfortunately, many sourcing nations face significant challenges in this area. While agricultural data holds immense potential for informed decision-making, these benefits are often undermined by systemic inequities in access, representation, and stakeholder inclusion. The issue is not a lack of data, but rather the underutilisation of existing datasets, which remain locked in silos due to the absence of shared spaces or infrastructure for data exchange.
In a typical national data ecosystem, multiple stakeholder groups are involved in data collection, curation, processing, storage, and sharing. While diverse perspectives can help validate data, the lack of coordination often leads to duplication, inefficiencies, and an unwillingness to share data. This results in hoarded datasets, operational inefficiencies, and fatigue among data subjects.
The consequences are far-reaching: stalling innovations reliant on data, policy decisions based on incomplete or fragmented information, and imbalances of power between data owners and data holders. The EUDR risks exacerbating these issues, as exporters invest in duplicative data collection efforts for EU markets, even when similar datasets already exist in-country.
A Bottom-Up Approach: The Way Forward
To address these challenges, a bottom-up approach is needed—one that integrates existing systems and facilities at the national level to build more complex infrastructures at regional and global scales. While this approach may appear complex, it is more effective than top-down global initiatives that often result in duplication rather than integration.
The EUDR underscores the critical importance of robust data management frameworks to meet the demands of modern regulatory landscapes. For Commonwealth countries, this regulation acts as a wake-up call to address inefficiencies and inequities within their current data ecosystems. By adopting a coordinated, bottom-up strategy, these nations can not only meet international compliance requirements but also unlock the transformative potential of their agricultural data. This could pave the way for policy innovation, equitable access, and sustainable growth. The Commonwealth
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Foreign feedstock fraud? Renewable Fuels Association has concerns
Farm News Media
Is California’s Low Carbon Fuel Standard letting in questionable foreign feedstocks for biodiesel production?
There are enough questions surrounding the integrity of imported used cooking oil and tallow for biomass-based diesel production that the Renewable Fuels Association (RFA) is calling out the California Air Resources Board (CARB) and urging more stringent oversight.
According to CARB data on fuel consumption in California, usage of biomass-based diesel (BBD) produced from used cooking oil (UCO) doubled from 2019-23, while usage of BBD produced from tallow tripled.
“Many biofuel market participants and other observers have expressed concerns about the legitimacy of imported ‘waste’ feedstocks and have questioned whether some volumes of UCO in particular may contain palm oil and/or other incorrectly labeled fats, oils, and greases,” RFA Chief Economist Scott Richman wrote.
“These concerns have been heightened in recent months as Indonesia and Malaysia, which jointly account for nearly 85% of world palm oil production, have emerged alongside China as leading origins of UCO imported into the U.S.”
RFA said this flood of foreign feedstock has suppressed demand and prices for domestically produced feedstocks like distiller’s corn oil — which is produced by the ethanol industry — with impacts extending beyond California’s program.
“Significant volumes of imported waste-based BBD, along with BBD produced domestically from imported UCO and tallow (and consumed in California) are also being used to satisfy conventional renewable fuel volume obligations under the federal Renewable Fuel Standard, undermining demand for ethanol and, especially, its use in higher blends like E15 and E85,” RFA added. Farm News Media
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Through ICA-CEPA, Textiles To Indonesian Palm Oil Free To Enter Canada
JAKARTA - Indonesia's leading commodities will receive exemption from import duties to Canada starting in 2026. The commodities in question range from textiles, paper and its derivatives, wood and its derivatives, swallow's nest to palm oil.
This import duty exemption facility is one of the benefits received by Indonesia from the Indonesia-Canada comprehensive economic partnership agreement or Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA).
Trade Minister Budi Santoso said with the ICA-CEPA, trade in goods received a 90.5 percent liberalization of Canadian market access with a trade value of US$1.4 billion.
"There are many products, but Indonesian priority products that can access the market from Canada, such as textiles, paper and their derivatives, wood and their derivatives, processed foods, swallow's nest, and palm oil," he said at a press conference at the Mulia Hotel, Jakarta, Monday, December 2.
Therefore, Budi hopes that Canada can become an alternative to the palm oil market from Indonesia. Moreover, currently, palm oil exports to other countries are experiencing obstacles, especially to Europe.
"With CEPA, access to palm oil to Canada will be easier than other countries that we may now have many problems, so we have to have alternatives, how can we export our palm oil to Canada," he explained.
Based on data from the Ministry of Trade (Kemendag), the total value of Indonesia-Canada trade in the last five years for the 2019 to 2023 period increased by 11.24 percent with a trade value in 2023 of 3.4 billion US dollars. VOI
First FTA between Malaysia-UK set to boost trade
The first comprehensive Free Trade Agreement (FTA) between Malaysia and the United Kingdom (UK), through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), will boost trade and investment relations between both countries.
Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the UK's entry as a Group of Seven (G7) member and leading advocate of the rules-based trading system brings significant value to the CPTPP.
In his speech at the UK's CPTPP countdown ceremony, Tengku Zafrul said the UK remains a strategic trading partner to Malaysia, with total trade reaching RM14 billion (US$3 billion) in the first 10 months of 2024.
"These numbers will improve, through increased Malaysian exports of sustainable palm oil, aerospace parts, oil and gas, renewable energy, environmental products, electrical and electronics and lifestyle products, and British exports of machinery, pharmaceuticals, chocolates and confectionaries and high-tech goods.
"Furthermore, UK exporters can also leverage the 16 FTAs Malaysia has ratified, including the Regional Comprehensive Economic Partnership (RCEP) and many others," he said.
The UK is scheduled to enter the CPTPP on Dec 15, 2024.
Tengku Zafrul said the electrical and electronics sector would benefit from the FTA between Malaysia and the UK through the CPTPP.
He said British investors will appreciate Malaysia's political stability and its strong rule of law, which supports a conducive landscape for investors seeking to establish their manufacturing or services hub in Asia.
Policies like the New Industrial Master Plan (NIMP) 2030, the National Energy Transition Roadmap (NETR), the National Semiconductor Strategy (NSS) and the Green Investment Strategy, are all aimed at attracting investments that would promote sustainable, equitable and inclusive growth.
"Besides, the Malaysian government is serious about the execution of its industrial and other structural reforms," stressed Tengku Zafrul.
On Malaysia's ASEAN chairmanship in 2025, Tengku Zafrul said it is important for UK businesses to invest and collaborate with neutral and non-aligned partners as ASEAN's neutrality and centrality have brought about long-standing regional peace. Astro Awani
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Indonesia's Ministry of Environment to Draft Roadmap to reduce GHGs in palm oil plantations
JAKARTA – The ministry of environment (KLH) is drafting a roadmap to reduce greenhouse gas (GHG) emission in Indonesia, including from methane produced in the palm oil industries.
“We’ve seen a good practice of liquid waste treatment, including the use of methane for power generation,” Environment Minister Hanif Faisol said in a press statement on Wednesday (27/11/2024).
Minister Hanif underlined the urgency of accelerating the methane treatment to lift the reputation of Indonesia in mitigating the impacts of global climate change. For such purpose, he had made a visit to the waste treatment conducted by PT Musim Mas in Pelalawan regency, Riau province.
“The government is drafting a regulation. It could be a ministerial regulation or decree of environmental control agency (BPLH) for application of the technology in all palm oil industries,” he said.
According to him, there has been a significant potential of methane emission from Indonesian palm oil industries. “Based on a study, the production of CPO in Indonesia can produce around 900,000 tons of methane per year. If converted to carbon dioxide emission, it is equivalent to 35 million tons of CO2,” he said.
“We’re pursuing discussions with many groups of people, including with global partners to accelerate the implementation of methane capture technology. This step will provide an incentive related to carbon credit , which is very important in developing a system of carbon climate,” he said.
The captured methane is used for power generation to support the operation of plantations. One facility of methane capture with power generation capacity of 1.0 megawatt can provide electricity for 1,600 houses in villages. (*) Source: sawitkita.id
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Supermarkets off track to meet goal to halt deforestation from food, WWF warns
Supermarkets are well off track to meet a goal to secure deforestation-free food by next year, environmental charity WWF has warned.
The latest annual report from WWF on progress towards commitments to halve the environmental impact of the average UK weekly shop by 2030 has found supermarkets are off track on a number of climate and nature measures.
And a key milestone – to ensure food products such as soy, beef, cocoa and palm oil are not causing deforestation or conversion of wild areas to agriculture by 2025 – is unlikely to be met without immediate action, the report said.
WWF warns the production and distribution of food – a third of which goes to waste – is responsible for 70% of the nature loss the world is witnessing and a third of greenhouse gases, destroying habitats and driving climate change.
This, in turn, is putting food security at risk, as pollinators decline and climate change drives droughts, downpours and floods that ruin crops and push up prices.
As part of an initiative with WWF which started in 2021, seven of the UK’s major supermarkets have made commitments to halve the environmental impact of shopping baskets by 2030.
The third annual report on the initiative uses data submitted voluntarily by 10 supermarkets making up more than 90% of the market to assess sector-wide progress towards the goal.
The latest report shows a “mixed picture” across the sector, with some progress including on greenhouse gas emissions directly associated with supermarkets themselves, as well sourcing palm oil free from deforestation and seafood that is covered by certification schemes.
But while there is also individual progress within some retailers to improve sourcing, WWF warned retailers were “consistently struggling to make progress” in areas where changes across the system were needed.
The report warns only 4.5% of the soy which enters the food retail chain – mainly to feed chickens, pigs, farmed fish and dairy cows – is verified as not causing deforestation, while the figure for cocoa is 0.3%.
Supermarkets are selling twice the target proportion of meat and eggs, and shifting consumers towards a healthier, more sustainable diet – to cut greenhouse gases and land used for livestock and feed – requires collective action across government and industry, the report said.
WWF warned that since its initiative began in 2021, the world has lost 7.9 million hectares of tree cover – an area almost the size of Austria.
Despite engagement by supermarkets, progress to cut deforestation out of the food supply chain has stalled, with major international traders not responding to calls for action and the last government failing to deliver promised legislation, the environmental group said.
It is calling on supermarkets to invest in monitoring at farms where there is a high risk of deforestation in commodities such as soy, beef, palm oil and cocoa, and ceasing to source produce for traders who do not have credible plans to make sure supplies are deforestation-free by 2025.
Retailers should also actively promote alternative protein choices to halve meat sales in line with WWF’s “livewell” diet, to help curb demand for beef and soy used in animal feed which come with a risk of deforestation, it said. YahooUK
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EUDR – A Lesson for Commonwealth Countries to Embrace a National Approach to Data Management
A blog by Dr. Benjamin Kwasi Addom, Adviser, Agriculture & Fisheries Trade Policy, Commonwealth Connectivity Agenda, Commonwealth Secretariat.
As the global push for environmental accountability gathers pace, the European Union’s Deforestation Regulation (EUDR) has emerged as a landmark law targeting deforestation and forest degradation. With its stringent requirements for traceability, due diligence, and compliance, the EUDR carries significant implications not only for companies exporting to the EU but also for the nations producing these commodities. At the heart of EUDR compliance lies effective data management, a challenge for many sourcing nations grappling with fragmented and uncoordinated data ecosystems.
In this first instalment of a three-part blog series, we examine the valuable lessons EUDR offers to Commonwealth countries, highlighting the pressing need for cohesive national data management strategies to navigate these evolving global demands successfully.
The European Union Deforestation Regulation (EUDR)
The EUDR is a new EU law designed to curtail the production and consumption of commodities and products linked to deforestation and forest degradation. Under the regulation, companies seeking to place, supply, or export specified products and commodities on the EU market must ensure and demonstrate that their products do not contribute to deforestation. They must also comply with the laws of the producing country and provide a due diligence statement.
The list of affected commodities includes cocoa, coffee, and palm oil, alongside derived products such as chocolate. A full list is available from the EU. Breaching the regulation exposes companies to severe penalties, such as fines of up to 4% of annual turnover, confiscation of non-compliant products, exclusion from public procurement opportunities, and temporary bans on marketing relevant products.
While primary responsibility lies with companies entering the EU market, this obligation indirectly shifts to producers, farmers, cooperatives, micro, small and medium enterprises (MSMEs), and the countries where these goods are sourced.
Data Coordination: The Keystone of EUDR Success
The cornerstone of EUDR compliance is traceability, which hinges on the collection of comprehensive data about commodities, including their country of origin and precise geolocation of production. The success of the regulation depends on the availability and accessibility of high-quality data, which in turn relies on robust data infrastructure to ensure seamless coordination from producers to consumers.
Unfortunately, many sourcing nations face significant challenges in this area. While agricultural data holds immense potential for informed decision-making, these benefits are often undermined by systemic inequities in access, representation, and stakeholder inclusion. The issue is not a lack of data, but rather the underutilisation of existing datasets, which remain locked in silos due to the absence of shared spaces or infrastructure for data exchange.
In a typical national data ecosystem, multiple stakeholder groups are involved in data collection, curation, processing, storage, and sharing. While diverse perspectives can help validate data, the lack of coordination often leads to duplication, inefficiencies, and an unwillingness to share data. This results in hoarded datasets, operational inefficiencies, and fatigue among data subjects.
The consequences are far-reaching: stalling innovations reliant on data, policy decisions based on incomplete or fragmented information, and imbalances of power between data owners and data holders. The EUDR risks exacerbating these issues, as exporters invest in duplicative data collection efforts for EU markets, even when similar datasets already exist in-country.
A Bottom-Up Approach: The Way Forward
To address these challenges, a bottom-up approach is needed—one that integrates existing systems and facilities at the national level to build more complex infrastructures at regional and global scales. While this approach may appear complex, it is more effective than top-down global initiatives that often result in duplication rather than integration.
The EUDR underscores the critical importance of robust data management frameworks to meet the demands of modern regulatory landscapes. For Commonwealth countries, this regulation acts as a wake-up call to address inefficiencies and inequities within their current data ecosystems. By adopting a coordinated, bottom-up strategy, these nations can not only meet international compliance requirements but also unlock the transformative potential of their agricultural data. This could pave the way for policy innovation, equitable access, and sustainable growth. The Commonwealth
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Foreign feedstock fraud? Renewable Fuels Association has concerns
Farm News Media
Is California’s Low Carbon Fuel Standard letting in questionable foreign feedstocks for biodiesel production?
There are enough questions surrounding the integrity of imported used cooking oil and tallow for biomass-based diesel production that the Renewable Fuels Association (RFA) is calling out the California Air Resources Board (CARB) and urging more stringent oversight.
According to CARB data on fuel consumption in California, usage of biomass-based diesel (BBD) produced from used cooking oil (UCO) doubled from 2019-23, while usage of BBD produced from tallow tripled.
“Many biofuel market participants and other observers have expressed concerns about the legitimacy of imported ‘waste’ feedstocks and have questioned whether some volumes of UCO in particular may contain palm oil and/or other incorrectly labeled fats, oils, and greases,” RFA Chief Economist Scott Richman wrote.
“These concerns have been heightened in recent months as Indonesia and Malaysia, which jointly account for nearly 85% of world palm oil production, have emerged alongside China as leading origins of UCO imported into the U.S.”
RFA said this flood of foreign feedstock has suppressed demand and prices for domestically produced feedstocks like distiller’s corn oil — which is produced by the ethanol industry — with impacts extending beyond California’s program.
“Significant volumes of imported waste-based BBD, along with BBD produced domestically from imported UCO and tallow (and consumed in California) are also being used to satisfy conventional renewable fuel volume obligations under the federal Renewable Fuel Standard, undermining demand for ethanol and, especially, its use in higher blends like E15 and E85,” RFA added. Farm News Media
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Through ICA-CEPA, Textiles To Indonesian Palm Oil Free To Enter Canada
JAKARTA - Indonesia's leading commodities will receive exemption from import duties to Canada starting in 2026. The commodities in question range from textiles, paper and its derivatives, wood and its derivatives, swallow's nest to palm oil.
This import duty exemption facility is one of the benefits received by Indonesia from the Indonesia-Canada comprehensive economic partnership agreement or Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA).
Trade Minister Budi Santoso said with the ICA-CEPA, trade in goods received a 90.5 percent liberalization of Canadian market access with a trade value of US$1.4 billion.
"There are many products, but Indonesian priority products that can access the market from Canada, such as textiles, paper and their derivatives, wood and their derivatives, processed foods, swallow's nest, and palm oil," he said at a press conference at the Mulia Hotel, Jakarta, Monday, December 2.
Therefore, Budi hopes that Canada can become an alternative to the palm oil market from Indonesia. Moreover, currently, palm oil exports to other countries are experiencing obstacles, especially to Europe.
"With CEPA, access to palm oil to Canada will be easier than other countries that we may now have many problems, so we have to have alternatives, how can we export our palm oil to Canada," he explained.
Based on data from the Ministry of Trade (Kemendag), the total value of Indonesia-Canada trade in the last five years for the 2019 to 2023 period increased by 11.24 percent with a trade value in 2023 of 3.4 billion US dollars. VOI
December 02, 2024
Indonesia and Malaysia push for fair EU palm oil regulations
Indonesia’s Coordinating Minister Airlangga Hartarto urged the EU to accept Indonesia’s and Malaysia’s sustainability standards as equal to global ones like the Roundtable on Sustainable Palm Oil (RSPO). Both countries have traceability systems but find the EU’s demand for location data too burdensome.
Malaysia’s Minister Johari Abdul Ghani pointed out the challenges for small farmers. Around 2.5 million in Indonesia and up to 450,000 in Malaysia may struggle to meet the requirements.
The governments stressed the need for continued talks with the EU. They aim to ensure fair regulations that respect local laws, support environmental goals, and protect small farmers. Scandasia/ Antara
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PRESS RELEASE 12th MINISTERIAL MEETING OF CPOPC 29 NOVEMBER 2024
1. The 12th Ministerial Meeting of the Council of Palm Oil Producing Countries (12th MM) was held on 29 November 2024, in Jakarta, Indonesia, and chaired by the Coordinating Minister for Economic Affairs of Indonesia, H.E. Airlangga Hartarto. The Minister of Plantation and Commodities of Malaysia (KPK), YB Datuk Seri Johari Abdul Ghani, attended physically. At the meeting, the Minister of Agriculture and Livestock of Honduras, H.E. Madam Laura Suazo, was represented by the Vice Minister for Agriculture, Mr. Lid Roy Lazo Rodríguez, who attended the meeting virtually.
2. The meeting was attended by Minister Delegate for International Cooperation and Francophonie of Democratic Republic of Congo (DRC), Her Excellency Mrs. Bestine Kazadi Ditabala. She underscored DRC potential to develop palm oil cultivation and her country’s interest to become a member of CPOPC. She believed that cooperation with CPOPC and shared solidarity among palm oil producing country will help DRC to develop the palm oil industry and deliver prosperity to the community. General Secretary of Oil Palm Industry Corporation (OPIC) of Papua New Guinea, Mr. Kepson K. Pupita highlighted their unwavering commitment of the PNG government to join CPOPC and informed the meeting that PNG membership will soon be finalized.
3. In his opening remarks, Chair of CPOPC and Coordinating Minister of CMEA, H.E. Airlangga Hartarto highlighted that Indonesia is committed to strengthening its partnership with CPOPC to achieve President Prabowo Subianto’s administration's priorities, particularly food and energy security and industrial downstream. For strengthening collaborative efforts in advancing the palm oil sector, Indonesia encourages the current CPOPC Observer countries, Colombia, Ghana, and Papua New Guinea to accelerate its accession process towards full membership.
4. Minister of Plantation and Commodities of Malaysia, YB Datuk Seri Johari Bin Abdul Ghani highlighted the persistent regulatory challenges faced by the industry due to protectionist measures, potentially leading to trade barriers. He emphasized the need for CPOPC to actively develop strategic plans to tackle these challenges constructively, ensuring inclusivity of smallholders, fair treatment, market access, and promotion of sustainable practices within the sector. AGENDA 12 MM-12/2024/11
5. In his recorded speech, Vice Minister for Agriculture of the Ministry of Agriculture and Livestock of Honduras, Honorable Mr. Lid Roy Lazo Rodriguez, expressed his concern on the raising global challenges faced by the oil palm industry. He reiterated that producing countries should remain united as a producing bloc to address the scrutiny over sustainability of the crop, protectionist trade barriers, and increasing pressure from markets in demanding stricter certification.
6. The 12th MM extended a warm welcome to the Democratic Republic of the Congo and Nigeria, which have been granted the CPOPC’s Observer status. This has increased CPOPC’s influence and presence at the global level as a platform for solidarity and stronger alliances among palm oil-producing countries, working together to ensure the continued growth and prosperity of the oil palm industry.
7. The meeting underscored the urgent need for CPOPC to enhance its flagship programs, mainly related to smallholders, sustainability, and positive campaigns. By doing so, CPOPC can improve its key role in the global palm oil sector, contributing to achieving the 2030 Agenda for Sustainable Development while addressing the existing global challenges, including trade-restrictive measures imposed by importing countries.
8. The 12th MM discussed about the recent developments in key importing countries and markets with growing stringent requirements for the production and trading of palm oil and its products. These are the Forced Labor Regulation and Due Diligence on Human Rights and Environment in the EU, the Fostering Overseas Rule of Law and Environmentally Sound Trade (FOREST) Act in the US, and the Forest Risk Commodities (FRC) Law in the UK, among others. In that connection, the Ministers agreed that sustainability efforts should be a joint responsibility of producing and consuming countries. They mandated the Secretariat to produce policy recommendations for the member countries to address the challenges. CPOPC
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Indonesia-Canada CEPA to expand trade, investment opportunities for both countries
JAKARTA, Dec. 2 (Xinhua) -- Indonesia and Canada signed the Indonesia-Canada Comprehensive Economic Partnership Agreement (CEPA) at the opening of Canada's Trade Mission to Indonesia on Monday in Jakarta.
The signing was conducted by Indonesia's Minister of Trade Budi Santoso, and Canada's Minister of Export Promotion, International Trade, and Economic Development Mary Ng.
"After more than 2.5 years, Indonesia has successfully secured a comprehensive trade agreement with Canada that will expand market access for Indonesian products in North America," said Budi.
In addition to goods trade, the CEPA also provides special treatment for Indonesian service providers in sectors such as business, telecommunications, construction, tourism, and transport, while easing investment access across various sectors.
The agreement also includes commitments on intellectual property, e-commerce, business competition, small- and medium-sized enterprises, women's empowerment, environment and labor.
Ng stated that the signing of this agreement marks the right time for businesses and investors from both countries to expand their markets in both Southeast Asia and North America.
According to Indonesia's Ministry of Trade, the total value of trade between Indonesia and Canada increased by 11.24 percent during 2019-2023, reaching 3.4 billion U.S. dollars in 2023, while trade from January to September 2024 amounted to 2.6 billion dollars, a 4.07 percent increase compared to the previous year.
In 2023, Indonesia's leading exports to Canada included telephones, natural rubber, textiles, paper, processed food, bird's nest, palm oil, and luggage, while imports from Canada included wheat, fertilizers, soybeans, and pulp.
The Canada Trade Mission to Indonesia, involving more than 180 Canadian companies, also serves as a platform to strengthen economic ties between the two countries in sectors such as agriculture, clean technology, and infrastructure. Xinhua
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Tree islands ‘restore biodiversity’ in oil palm farms
[NEW DELHI] Environmentalists have long worried about the negative impacts of oil palm cultivation, especially on biodiversity when forests are burned and turned into plantations.
Now researchers say there is a solution that could mitigate the damage.
Setting up forests or “tree islands” in large oil palm farms can help restore biodiversity and ecosystems by aiding the natural regeneration of native trees, their study suggests.
Increasing international demand for palm oil triggered vast forest destruction in Indonesia and Malaysia—responsible for 85 per cent of global palm oil production.
These plantations have been a catastrophe for endangered animals, such as tigers in Indonesia’s Sumatra. They also aggravate conflicts with local Indonesian communities on traditional land rights.
In 2023, with the production of 47 million tonnes of crude palm oil, Indonesia became the leading palm oil exporter in the world. But in the past two decades, the country has also lost 3 million hectares of natural forest areas, thanks to the spread of oil palm plantations.
Published this month in the journal Science, the study says the extensive conversion of Southeast Asian natural forests into plantations of African oil palm (Elaeis guineensis Jacq.) has led to alarming losses of biodiversity, ecosystem functioning and evolutionary history.
The researchers say it’s essential to protect the remaining forests to conserve their rich, tropical biodiversity. SciDev
Indonesia and Malaysia push for fair EU palm oil regulations
Indonesia’s Coordinating Minister Airlangga Hartarto urged the EU to accept Indonesia’s and Malaysia’s sustainability standards as equal to global ones like the Roundtable on Sustainable Palm Oil (RSPO). Both countries have traceability systems but find the EU’s demand for location data too burdensome.
Malaysia’s Minister Johari Abdul Ghani pointed out the challenges for small farmers. Around 2.5 million in Indonesia and up to 450,000 in Malaysia may struggle to meet the requirements.
The governments stressed the need for continued talks with the EU. They aim to ensure fair regulations that respect local laws, support environmental goals, and protect small farmers. Scandasia/ Antara
--------
PRESS RELEASE 12th MINISTERIAL MEETING OF CPOPC 29 NOVEMBER 2024
1. The 12th Ministerial Meeting of the Council of Palm Oil Producing Countries (12th MM) was held on 29 November 2024, in Jakarta, Indonesia, and chaired by the Coordinating Minister for Economic Affairs of Indonesia, H.E. Airlangga Hartarto. The Minister of Plantation and Commodities of Malaysia (KPK), YB Datuk Seri Johari Abdul Ghani, attended physically. At the meeting, the Minister of Agriculture and Livestock of Honduras, H.E. Madam Laura Suazo, was represented by the Vice Minister for Agriculture, Mr. Lid Roy Lazo Rodríguez, who attended the meeting virtually.
2. The meeting was attended by Minister Delegate for International Cooperation and Francophonie of Democratic Republic of Congo (DRC), Her Excellency Mrs. Bestine Kazadi Ditabala. She underscored DRC potential to develop palm oil cultivation and her country’s interest to become a member of CPOPC. She believed that cooperation with CPOPC and shared solidarity among palm oil producing country will help DRC to develop the palm oil industry and deliver prosperity to the community. General Secretary of Oil Palm Industry Corporation (OPIC) of Papua New Guinea, Mr. Kepson K. Pupita highlighted their unwavering commitment of the PNG government to join CPOPC and informed the meeting that PNG membership will soon be finalized.
3. In his opening remarks, Chair of CPOPC and Coordinating Minister of CMEA, H.E. Airlangga Hartarto highlighted that Indonesia is committed to strengthening its partnership with CPOPC to achieve President Prabowo Subianto’s administration's priorities, particularly food and energy security and industrial downstream. For strengthening collaborative efforts in advancing the palm oil sector, Indonesia encourages the current CPOPC Observer countries, Colombia, Ghana, and Papua New Guinea to accelerate its accession process towards full membership.
4. Minister of Plantation and Commodities of Malaysia, YB Datuk Seri Johari Bin Abdul Ghani highlighted the persistent regulatory challenges faced by the industry due to protectionist measures, potentially leading to trade barriers. He emphasized the need for CPOPC to actively develop strategic plans to tackle these challenges constructively, ensuring inclusivity of smallholders, fair treatment, market access, and promotion of sustainable practices within the sector. AGENDA 12 MM-12/2024/11
5. In his recorded speech, Vice Minister for Agriculture of the Ministry of Agriculture and Livestock of Honduras, Honorable Mr. Lid Roy Lazo Rodriguez, expressed his concern on the raising global challenges faced by the oil palm industry. He reiterated that producing countries should remain united as a producing bloc to address the scrutiny over sustainability of the crop, protectionist trade barriers, and increasing pressure from markets in demanding stricter certification.
6. The 12th MM extended a warm welcome to the Democratic Republic of the Congo and Nigeria, which have been granted the CPOPC’s Observer status. This has increased CPOPC’s influence and presence at the global level as a platform for solidarity and stronger alliances among palm oil-producing countries, working together to ensure the continued growth and prosperity of the oil palm industry.
7. The meeting underscored the urgent need for CPOPC to enhance its flagship programs, mainly related to smallholders, sustainability, and positive campaigns. By doing so, CPOPC can improve its key role in the global palm oil sector, contributing to achieving the 2030 Agenda for Sustainable Development while addressing the existing global challenges, including trade-restrictive measures imposed by importing countries.
8. The 12th MM discussed about the recent developments in key importing countries and markets with growing stringent requirements for the production and trading of palm oil and its products. These are the Forced Labor Regulation and Due Diligence on Human Rights and Environment in the EU, the Fostering Overseas Rule of Law and Environmentally Sound Trade (FOREST) Act in the US, and the Forest Risk Commodities (FRC) Law in the UK, among others. In that connection, the Ministers agreed that sustainability efforts should be a joint responsibility of producing and consuming countries. They mandated the Secretariat to produce policy recommendations for the member countries to address the challenges. CPOPC
--------
Indonesia-Canada CEPA to expand trade, investment opportunities for both countries
JAKARTA, Dec. 2 (Xinhua) -- Indonesia and Canada signed the Indonesia-Canada Comprehensive Economic Partnership Agreement (CEPA) at the opening of Canada's Trade Mission to Indonesia on Monday in Jakarta.
The signing was conducted by Indonesia's Minister of Trade Budi Santoso, and Canada's Minister of Export Promotion, International Trade, and Economic Development Mary Ng.
"After more than 2.5 years, Indonesia has successfully secured a comprehensive trade agreement with Canada that will expand market access for Indonesian products in North America," said Budi.
In addition to goods trade, the CEPA also provides special treatment for Indonesian service providers in sectors such as business, telecommunications, construction, tourism, and transport, while easing investment access across various sectors.
The agreement also includes commitments on intellectual property, e-commerce, business competition, small- and medium-sized enterprises, women's empowerment, environment and labor.
Ng stated that the signing of this agreement marks the right time for businesses and investors from both countries to expand their markets in both Southeast Asia and North America.
According to Indonesia's Ministry of Trade, the total value of trade between Indonesia and Canada increased by 11.24 percent during 2019-2023, reaching 3.4 billion U.S. dollars in 2023, while trade from January to September 2024 amounted to 2.6 billion dollars, a 4.07 percent increase compared to the previous year.
In 2023, Indonesia's leading exports to Canada included telephones, natural rubber, textiles, paper, processed food, bird's nest, palm oil, and luggage, while imports from Canada included wheat, fertilizers, soybeans, and pulp.
The Canada Trade Mission to Indonesia, involving more than 180 Canadian companies, also serves as a platform to strengthen economic ties between the two countries in sectors such as agriculture, clean technology, and infrastructure. Xinhua
--------
Tree islands ‘restore biodiversity’ in oil palm farms
- Oil palm plantations are known for environmental harms such as biodiversity loss
- Study suggests establishing tree islands within large oil palm farms
- The small forest clusters promote recovery of native trees and biodiversity
[NEW DELHI] Environmentalists have long worried about the negative impacts of oil palm cultivation, especially on biodiversity when forests are burned and turned into plantations.
Now researchers say there is a solution that could mitigate the damage.
Setting up forests or “tree islands” in large oil palm farms can help restore biodiversity and ecosystems by aiding the natural regeneration of native trees, their study suggests.
Increasing international demand for palm oil triggered vast forest destruction in Indonesia and Malaysia—responsible for 85 per cent of global palm oil production.
These plantations have been a catastrophe for endangered animals, such as tigers in Indonesia’s Sumatra. They also aggravate conflicts with local Indonesian communities on traditional land rights.
In 2023, with the production of 47 million tonnes of crude palm oil, Indonesia became the leading palm oil exporter in the world. But in the past two decades, the country has also lost 3 million hectares of natural forest areas, thanks to the spread of oil palm plantations.
Published this month in the journal Science, the study says the extensive conversion of Southeast Asian natural forests into plantations of African oil palm (Elaeis guineensis Jacq.) has led to alarming losses of biodiversity, ecosystem functioning and evolutionary history.
The researchers say it’s essential to protect the remaining forests to conserve their rich, tropical biodiversity. SciDev
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December 01, 2024
MEP Christine Schneider drops controversial ‘no risk’ exemption on deforestation rules, seeks EPP ministers’ support
“We are not insisting on creating a “zero-risk” category, as it is clear that several member states have concerns.” wrote the Parliament’s lead negotiator on anti-deforestation rules.
According to a letter obtained by Euractiv, Christine Schneider, German EPP member of the European Parliament (MEP), has decided not to pursue the creation of a new “no risk” category that could have exempted certain countries from the EU's new anti-deforestation rules (EUDR).
During the first interinstitutional trialogue talks on 21 November, Schneider, the Parliament’s lead negotiator, maintained her position on further changes to the rules beyond the proposed one-year delay – a move opposed by the Council.
In a letter dated 26 November, she urged ministers from EU governments affiliated with the European People’s Party (EPP) to back amendments proposed by the centre-right party at the European Parliament. Her plea, however, went unheeded, since the matter was not discussed during the 27 November meeting of EU ambassadors.
"Once again, I kindly ask for your support in ensuring that the EUDR is included on the COREPER agenda for tomorrow, followed by backing our proposed compromises to the EPP amendments," reads the letter.
The MEP asked ministers to consider an amendment proposing the rules take effect only after the European Commission makes the IT platform for uploading geolocation data fully operational. Additionally, Schneider called for ensuring that the benchmarking system—classifying countries as high, standard, or low risk of deforestation—is issued at least six months in advance. This would mean the benchmarking needs to be published by July 2025 for the rules to come into force in December 2025.
"Furthermore, we are not insisting on creating a 'zero-risk' category anymore, as it is clear that several member states have concerns, including with regards to WTO rules," wrote Schneider.
Instead, she suggested introducing an option to ease requirements for countries demonstrating "effective and sustainable forest management practices." This adjustment would be included in Article 34 of the regulation, which provides for a review of the rules by 2028.
To rally support from her EPP colleagues, Schneider framed the proposed amendments as a "major success" for the centre-right party. "Let us seize this opportunity to leverage the current momentum and majorities in both the Council and Parliament to finalise an agreement that reflects our shared priorities," she wrote. Euractiv
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Indonesia to Introduce Palm-based B40 Biodiesel on January 1, 2025
GOOTO.COM, Jakarta - Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the use of biodiesel with 40 percent palm oil-based vegetable fuel or B40 will be implemented starting on January 1, 2025. This is in line with the mandatory B40 biodiesel program.
"For B40 biodiesel, we are committed to starting on January 1 (2025)," Airlangga said on Saturday, November 30, 2024.
Airlangga revealed that this B40 biodiesel will still be implemented even if the price of palm oil has skyrocketed recently. If there is a price difference due to the increase in the price of palm oil, Airlangga stated that it would be addressed by the Indonesian Oil Palm Plantation Fund Management Agency (BPDPKS).
"BPDPKS is willing to finance the price gap below the new palm oil price," he said.
Airlangga mentioned that this program has successfully contributed to global efforts to reduce emissions. In addition, this program is also part of President Prabowo Subianto's major program to achieve food security, food self-sufficiency, energy self-sufficiency, and the downscaling of the plantation industry, especially palm oil.
Earlier, Airlangga said the implementation of B40 would increase the use of crude palm oil (CPO) as a feedstock for fuel. However, he assured that the supply of CPO would still be sufficient to meet the demand for B40. Tempo
--------
Biomass Industry Needs Higher FIT To Capitalize Domestic Waste Resources
By Professor Datuk Dr Ahmad Ibrahim
A recent satellite talk to unlock the nation’s biomass feedstock for business was timely. Despite launching the ambitious National Biomass Action Plan which has advocated the clustering approach to achieve the necessary economy of scale, the response has been lukewarm. It became clear the biomass action plan has not been effectively driven. For one, such a massive economic endeavour cannot be driven by just a government department. It has to be a proper Malaysian Biomass Development Board where the government should partner industry and research to move the plan, not much different from the governance structure of the MPOB.
The talk spoke of the many economic potential of biomass, and the many business models available. These include biomass to electricity, biomass to SAF, biomass to pulp and paper, biomass to graphite, biomass to organic fertilizers, and more. It was also demonstrated that in terms of value, biomass to electricity is among the lowest. The higher value businesses that were cited were however limited in market demand. The cost of conversion is also higher. Ever since the introduction of FIT for biomass, the most popular biomass business in Malaysia has been the conversion into electricity.
However, it has been reported that many such ventures have failed. Most attributed the failure to the low FIT given of around 30 Sen per unit. It was explained why the FIT cannot be higher. A major reason is that any increase in FIT would burden the consumer. Carbon tax may be a solution. As a result of the lower FIT compared to neighbouring Thailand which offers 50 Sen, it has been widely reported that much of our biomass has been sold there. A lost opportunity to add value for us. The irony of it all is that the FIT for solar is higher. Why? In terms of inclusive value to the nation, biomass is better than solar. Most of the solar components are imported. Whereas biomass is 100% Malaysian.
The argument that Malaysia’s Feed-in Tariff (FIT) for biomass should be higher than for solar energy has some valid points. This is based on the differences in potential, sustainability, and economic impact between these two energy sources. Malaysia has abundant biomass resources from its palm oil industry, forestry, and agricultural waste. Utilizing these resources to generate energy supports the circular economy, reduces waste, and contributes to sustainable agriculture. Given this, biomass energy offers a dual benefit of energy production and waste reduction, which isn’t directly provided by solar energy. The e-waste from solar is signalling another environmental headache.
Biomass can generate energy 24/7, unlike solar energy, which is dependent on sunlight availability and varies throughout the day and seasons. This consistency in energy generation can help maintain grid stability and reduce the need for energy storage or backup power sources, which is an added cost for solar energy. The biomass industry supports local economies, especially in rural areas, by providing jobs in waste collection, transportation, processing, and energy generation. This direct economic impact on communities involved in agriculture and palm oil production is often greater than the benefits from the solar industry, which typically requires high-tech equipment and less human labour post-installation.
Biomass, when sustainably sourced, can be considered carbon-neutral. It helps in reducing greenhouse gas emissions by preventing methane release from organic waste decomposition and replacing fossil fuels. While solar is clean, biomass can have an additional environmental benefit through waste management and carbon sequestration. Biomass however requires an organized supply chain for collection, transportation, and processing, which can involve higher upfront and operational costs compared to solar projects, which have simpler, more direct installations.
While biomass has great potential, it must be harvested sustainably. Solar technology is advancing rapidly. The same trend is not as pronounced for biomass technologies. This is where the R&D on biomass should be intensified. Increasing the FIT for biomass could incentivize greater use of available biomass resources, support rural economies, and contribute to Malaysia’s renewable energy mix. Given its potential for consistent energy generation and local job creation, biomass may indeed deserve a higher FIT compared to solar.
The author is an Associate Fellow at the Ungku Aziz Centre for Development Studies (UAC), Universiti Malaya, and may be reached at [email protected] Business Today
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Dutch Groups Solidaridad, IDH focus on long game in push for oil palm traceability in Nigeria
Two organisations, Solidaridad and the Sustainable Trade Organisation (IDH), say they are committed to identifying actionable solutions to the traceability gaps in Nigeria’s palm oil supply chain.
Mr Gabriel Fapojuwo, Country Representative, Solidaridad in Nigeria, spoke on Saturday in Abuja at a policy dialogue on the National Initiatives for Sustainable and Climate-Smart Oil Palm Smallholders (NISCOPS).
Freedomonline reports that the dialogue was titled “Nigeria Palm Oil Import – Export Corridor and the Traceability Gaps.’’
Fapojuwo said the dialogue was aimed at fostering collaboration among stakeholders in the oil palm sector, strengthening regulatory frameworks and upgrading infrastructure and technology in the oil palm sector.
“The dialogue also focuses on the alignment of practices in the oil palm sector in Nigeria with global market standards and ensure that smallholder farmers and local millers benefit equitably from the growth of the oil palm sector.”
Fapojuwo said the NISCOPS programme was building the capacity of smallholder oil palm farmers to bridge the demand and supply gaps.
“The first phase of the programme which started in 2019 ended in 2023; we have started the second phase the target is to improve the yield and income of smallholder farmers through climate-smart agriculture and sustainable land use.
“We are not stopping at improving the yield; we have to prepare the Nigeria smallholder farmers for the requirements of international markets; hence, we are focusing on issues around traceability of the product,” Fapojuwo said.
Kenechukwu Onukwube, Programme Manager, Oil Palm, Solidaridad in Nigeria, said that the country’s palm oil sector, a vital contributor to its agricultural economy, faced significant challenges in meeting traceability and sustainability standards.
Onukwube said that the sector faced challenges in the context of global regulations like the European Union (EU) deforestation-free supply chain policy.
He said that in spite the country’s potential as a major palm oil producer, infrastructural deficiencies, limited digital adoption, weak policy enforcement and fragmented supply chains hindered effective traceability.
According to him, the challenges disproportionately affect smallholder farmers and local millers, limiting their access to lucrative export markets while risking non-compliance with global standards. Freedom Online
MEP Christine Schneider drops controversial ‘no risk’ exemption on deforestation rules, seeks EPP ministers’ support
“We are not insisting on creating a “zero-risk” category, as it is clear that several member states have concerns.” wrote the Parliament’s lead negotiator on anti-deforestation rules.
According to a letter obtained by Euractiv, Christine Schneider, German EPP member of the European Parliament (MEP), has decided not to pursue the creation of a new “no risk” category that could have exempted certain countries from the EU's new anti-deforestation rules (EUDR).
During the first interinstitutional trialogue talks on 21 November, Schneider, the Parliament’s lead negotiator, maintained her position on further changes to the rules beyond the proposed one-year delay – a move opposed by the Council.
In a letter dated 26 November, she urged ministers from EU governments affiliated with the European People’s Party (EPP) to back amendments proposed by the centre-right party at the European Parliament. Her plea, however, went unheeded, since the matter was not discussed during the 27 November meeting of EU ambassadors.
"Once again, I kindly ask for your support in ensuring that the EUDR is included on the COREPER agenda for tomorrow, followed by backing our proposed compromises to the EPP amendments," reads the letter.
The MEP asked ministers to consider an amendment proposing the rules take effect only after the European Commission makes the IT platform for uploading geolocation data fully operational. Additionally, Schneider called for ensuring that the benchmarking system—classifying countries as high, standard, or low risk of deforestation—is issued at least six months in advance. This would mean the benchmarking needs to be published by July 2025 for the rules to come into force in December 2025.
"Furthermore, we are not insisting on creating a 'zero-risk' category anymore, as it is clear that several member states have concerns, including with regards to WTO rules," wrote Schneider.
Instead, she suggested introducing an option to ease requirements for countries demonstrating "effective and sustainable forest management practices." This adjustment would be included in Article 34 of the regulation, which provides for a review of the rules by 2028.
To rally support from her EPP colleagues, Schneider framed the proposed amendments as a "major success" for the centre-right party. "Let us seize this opportunity to leverage the current momentum and majorities in both the Council and Parliament to finalise an agreement that reflects our shared priorities," she wrote. Euractiv
--------
Indonesia to Introduce Palm-based B40 Biodiesel on January 1, 2025
GOOTO.COM, Jakarta - Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the use of biodiesel with 40 percent palm oil-based vegetable fuel or B40 will be implemented starting on January 1, 2025. This is in line with the mandatory B40 biodiesel program.
"For B40 biodiesel, we are committed to starting on January 1 (2025)," Airlangga said on Saturday, November 30, 2024.
Airlangga revealed that this B40 biodiesel will still be implemented even if the price of palm oil has skyrocketed recently. If there is a price difference due to the increase in the price of palm oil, Airlangga stated that it would be addressed by the Indonesian Oil Palm Plantation Fund Management Agency (BPDPKS).
"BPDPKS is willing to finance the price gap below the new palm oil price," he said.
Airlangga mentioned that this program has successfully contributed to global efforts to reduce emissions. In addition, this program is also part of President Prabowo Subianto's major program to achieve food security, food self-sufficiency, energy self-sufficiency, and the downscaling of the plantation industry, especially palm oil.
Earlier, Airlangga said the implementation of B40 would increase the use of crude palm oil (CPO) as a feedstock for fuel. However, he assured that the supply of CPO would still be sufficient to meet the demand for B40. Tempo
--------
Biomass Industry Needs Higher FIT To Capitalize Domestic Waste Resources
By Professor Datuk Dr Ahmad Ibrahim
A recent satellite talk to unlock the nation’s biomass feedstock for business was timely. Despite launching the ambitious National Biomass Action Plan which has advocated the clustering approach to achieve the necessary economy of scale, the response has been lukewarm. It became clear the biomass action plan has not been effectively driven. For one, such a massive economic endeavour cannot be driven by just a government department. It has to be a proper Malaysian Biomass Development Board where the government should partner industry and research to move the plan, not much different from the governance structure of the MPOB.
The talk spoke of the many economic potential of biomass, and the many business models available. These include biomass to electricity, biomass to SAF, biomass to pulp and paper, biomass to graphite, biomass to organic fertilizers, and more. It was also demonstrated that in terms of value, biomass to electricity is among the lowest. The higher value businesses that were cited were however limited in market demand. The cost of conversion is also higher. Ever since the introduction of FIT for biomass, the most popular biomass business in Malaysia has been the conversion into electricity.
However, it has been reported that many such ventures have failed. Most attributed the failure to the low FIT given of around 30 Sen per unit. It was explained why the FIT cannot be higher. A major reason is that any increase in FIT would burden the consumer. Carbon tax may be a solution. As a result of the lower FIT compared to neighbouring Thailand which offers 50 Sen, it has been widely reported that much of our biomass has been sold there. A lost opportunity to add value for us. The irony of it all is that the FIT for solar is higher. Why? In terms of inclusive value to the nation, biomass is better than solar. Most of the solar components are imported. Whereas biomass is 100% Malaysian.
The argument that Malaysia’s Feed-in Tariff (FIT) for biomass should be higher than for solar energy has some valid points. This is based on the differences in potential, sustainability, and economic impact between these two energy sources. Malaysia has abundant biomass resources from its palm oil industry, forestry, and agricultural waste. Utilizing these resources to generate energy supports the circular economy, reduces waste, and contributes to sustainable agriculture. Given this, biomass energy offers a dual benefit of energy production and waste reduction, which isn’t directly provided by solar energy. The e-waste from solar is signalling another environmental headache.
Biomass can generate energy 24/7, unlike solar energy, which is dependent on sunlight availability and varies throughout the day and seasons. This consistency in energy generation can help maintain grid stability and reduce the need for energy storage or backup power sources, which is an added cost for solar energy. The biomass industry supports local economies, especially in rural areas, by providing jobs in waste collection, transportation, processing, and energy generation. This direct economic impact on communities involved in agriculture and palm oil production is often greater than the benefits from the solar industry, which typically requires high-tech equipment and less human labour post-installation.
Biomass, when sustainably sourced, can be considered carbon-neutral. It helps in reducing greenhouse gas emissions by preventing methane release from organic waste decomposition and replacing fossil fuels. While solar is clean, biomass can have an additional environmental benefit through waste management and carbon sequestration. Biomass however requires an organized supply chain for collection, transportation, and processing, which can involve higher upfront and operational costs compared to solar projects, which have simpler, more direct installations.
While biomass has great potential, it must be harvested sustainably. Solar technology is advancing rapidly. The same trend is not as pronounced for biomass technologies. This is where the R&D on biomass should be intensified. Increasing the FIT for biomass could incentivize greater use of available biomass resources, support rural economies, and contribute to Malaysia’s renewable energy mix. Given its potential for consistent energy generation and local job creation, biomass may indeed deserve a higher FIT compared to solar.
The author is an Associate Fellow at the Ungku Aziz Centre for Development Studies (UAC), Universiti Malaya, and may be reached at [email protected] Business Today
--------
Dutch Groups Solidaridad, IDH focus on long game in push for oil palm traceability in Nigeria
Two organisations, Solidaridad and the Sustainable Trade Organisation (IDH), say they are committed to identifying actionable solutions to the traceability gaps in Nigeria’s palm oil supply chain.
Mr Gabriel Fapojuwo, Country Representative, Solidaridad in Nigeria, spoke on Saturday in Abuja at a policy dialogue on the National Initiatives for Sustainable and Climate-Smart Oil Palm Smallholders (NISCOPS).
Freedomonline reports that the dialogue was titled “Nigeria Palm Oil Import – Export Corridor and the Traceability Gaps.’’
Fapojuwo said the dialogue was aimed at fostering collaboration among stakeholders in the oil palm sector, strengthening regulatory frameworks and upgrading infrastructure and technology in the oil palm sector.
“The dialogue also focuses on the alignment of practices in the oil palm sector in Nigeria with global market standards and ensure that smallholder farmers and local millers benefit equitably from the growth of the oil palm sector.”
Fapojuwo said the NISCOPS programme was building the capacity of smallholder oil palm farmers to bridge the demand and supply gaps.
“The first phase of the programme which started in 2019 ended in 2023; we have started the second phase the target is to improve the yield and income of smallholder farmers through climate-smart agriculture and sustainable land use.
“We are not stopping at improving the yield; we have to prepare the Nigeria smallholder farmers for the requirements of international markets; hence, we are focusing on issues around traceability of the product,” Fapojuwo said.
Kenechukwu Onukwube, Programme Manager, Oil Palm, Solidaridad in Nigeria, said that the country’s palm oil sector, a vital contributor to its agricultural economy, faced significant challenges in meeting traceability and sustainability standards.
Onukwube said that the sector faced challenges in the context of global regulations like the European Union (EU) deforestation-free supply chain policy.
He said that in spite the country’s potential as a major palm oil producer, infrastructural deficiencies, limited digital adoption, weak policy enforcement and fragmented supply chains hindered effective traceability.
According to him, the challenges disproportionately affect smallholder farmers and local millers, limiting their access to lucrative export markets while risking non-compliance with global standards. Freedom Online
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