Palm oil news. September 2023
CSPO Watch
For all the news on the global palm oil industry. September 2023
Makin' it easy for you to monitor developments in the palm oil industry
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September 30, 2023
More Than 50 Percent Green Area Preserved While Producing Palm Oil, EUDR Not Relevant: Indonesia
TEMPO.CO, Mumbai, India - Three countries comprised of India, Malaysia, and Indonesia, swore to jointly promote the positive benefits of palm oil to the global community at the Second Sustainable Vegetable Oils Conference (2nd SVOC) held at ITC Maratha Hotel in Mumbai, India, September 27, 2023.
At the conference, Indonesian Deputy Trade Minister Jerry Sambuaga stated that India sees Indonesia and Malaysia as important and strategic partners and that the palm oil products from the two countries have given many added value and positive effects for India.
"These positive effects of palm oil products need to be disseminated throughout the world so that there will be no misconception about palm oil," said Jerry.
He explained that he once argued with the European Union (EU) about them being discriminative against Indonesia's palm oil products by putting up a ban on the use of palm oil because the EU believed that palm oil plantations are linked to deforestation.
"I asked them back about how much green area that they (the EU) preserved. they answered less than 20 percent, meanwhile, Indonesia preserved more than 50 percent green area (while producing palm oil), so the environmental issue (stated by the EU) is not relevant," said Jerry.
Jerry is sure that this palm oil ban by the EU is just because of a matter of competition. "The EU should be more open and also should not have put up the environmental issue and enforcing the EUDR (EU Deforestation-free Regulation) that are not relevant at all. That is why we are grateful that Malaysia and India are willing to unite with Indonesia to ensure that the voice of truth regarding palm oil can be heard more fairly by the world," he stated. Tempo
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Indonesia to forge sustainable path in palm oil sector through biomethane production
JAKARTA (ANN/THE JAKARTA POST) – PGN, a subsidiary of the Indonesian state-owned oil and gas corporation, along with three Japanese companies, is looking produce biomethane derived from palm oil mill effluent (POME) in an effort to meet the growing demand for natural gas while simultaneously reducing the country’s methane emissions.
Under the consortium comprising PGN, JGC Holdings Corporation, Osaka Gas, and Inpex Corporation, the companies are currently engaged in a study to commercialise the product in Indonesia by 2025.
They plan to leverage PGN’s established natural gas distribution network for this purpose. The primary source of raw material for this venture will be oil palm plantations located in South Sumatra.
The project’s core objective is to capture methane emissions released into the atmosphere from POME, process it into high-quality biomethane, and distribute it to consumers through natural gas pipelines and existing infrastructure.
This approach not only addresses the rising natural gas demand but also contributes significantly to mitigating environmental concerns related to methane emissions.
Untreated POME releases methane, which is more than 25 times as potent as carbon dioxide at trapping heat in the atmosphere, according to the United States’ Environmental Protection Agency.
“The biomethane produced from this project is not only expected to meet industrial gas and consumer demand but also to serve as proof that Pertamina Group and its partners, in this case, JGC, Inpex and Osaka Gas, are committed to encouraging renewable energy development,” Harry Budi Sidharta, PGN director of strategy and business development, said in a statement on Monday. Borneo Bulletin
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Godrej Agrovet to set up Rs 300 cr integrated palm oil complex in Telangana
Godrej Agrovet Ltd (GAVL) on Saturday said it will set up an integrated palm oil complex in Telangana with an investment of Rs 300 crore over the next 3-4 years.
The palm oil complex, to be set up in the Khammam district of Telangana, is spread over 125 acres and will consist of a crude palm oil mill along with the provision of setting up a refinery in the near future, GAVL said in a statement.
The company will also establish a nursery with a capacity of up to 7 lakh saplings per year in addition to the seed production and research unit, it added.
"Telangana's ambitious oil palm mission aims to bring 20 lakh acres under cultivation across the state. The mission will improve income for more than 5 lakh farm households, while at the same time contributing to the nation's deficit for edible oils.
Business Standard
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Palm oil does not threaten health
Health
Palm oil does not threaten health
Staff EditorStaff EditorSep 30, 2023 - 09:17Updated: Sep 30, 2023 - 09:180
Facebook Twitter
Palm oil does not threaten health
Palm oil is a very common product. It appears in thousands of food products and is sold and used all around the world without issue. Unfortunately, there is a lot of misinformation surrounding palm oil. Some people, possibly with a vested commercial interest in seeing palm oil fail (perhaps because they would benefit financially from companies selling other products rivalling palm oil) appear to enjoy promoting transparently false and scaremongering narratives about palm oil.
A recent example of this swept through India. A large number of WhatsApp users received a message declaring to be an exposé on various health issues with palm oil. It said it was written by Dr Tejas Patel, a respected cardiologist, and it warned that consumers should avoid palm oil because it is “more dangerous than alcohol and tobacco”. It went on to list a number of ways it alleges palm oil damages human health.
There are many problems with the narrative promoted in the viral WhatsApp message. Firstly, it was not written by Dr Patel. In fact, in a Facebook video, Dr Patel denounced the video, its contents and its unknown authors. He declared publicly that he had no knowledge of where the message came from and he even approached the cyber crime police to report the incident, since the message had used his name without consent.
The alleged authorship of Dr Patel is not the only thing the authors of this WhatsApp message lied about. In fact, the message contained a litany of false statements about palm oil. It is a clear attempt to stoke fear about palm oil and warn consumers away from using it. It states, for example, that India is the largest importer of palm oil in the world. This is unsurprising, since palm oil is used in so many consumer products and India has the largest population of any country in the world.
The claims made in the message about the health risks of consuming palm oil have no scientific basis whatsoever. There are several false claims which are easy to disprove with even preliminary research. The message discusses palmitic acid, for example, alleging that since palm oil contains palmitic acid, consumers should stay away. This mirrors a narrative perpetrated elsewhere in the world, such as in the UK’s Guardian and Mirror newspapers, which have claimed in the past that palmitic acid has links to cancer. Weekly Mail
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More Than 50 Percent Green Area Preserved While Producing Palm Oil, EUDR Not Relevant: Indonesia
TEMPO.CO, Mumbai, India - Three countries comprised of India, Malaysia, and Indonesia, swore to jointly promote the positive benefits of palm oil to the global community at the Second Sustainable Vegetable Oils Conference (2nd SVOC) held at ITC Maratha Hotel in Mumbai, India, September 27, 2023.
At the conference, Indonesian Deputy Trade Minister Jerry Sambuaga stated that India sees Indonesia and Malaysia as important and strategic partners and that the palm oil products from the two countries have given many added value and positive effects for India.
"These positive effects of palm oil products need to be disseminated throughout the world so that there will be no misconception about palm oil," said Jerry.
He explained that he once argued with the European Union (EU) about them being discriminative against Indonesia's palm oil products by putting up a ban on the use of palm oil because the EU believed that palm oil plantations are linked to deforestation.
"I asked them back about how much green area that they (the EU) preserved. they answered less than 20 percent, meanwhile, Indonesia preserved more than 50 percent green area (while producing palm oil), so the environmental issue (stated by the EU) is not relevant," said Jerry.
Jerry is sure that this palm oil ban by the EU is just because of a matter of competition. "The EU should be more open and also should not have put up the environmental issue and enforcing the EUDR (EU Deforestation-free Regulation) that are not relevant at all. That is why we are grateful that Malaysia and India are willing to unite with Indonesia to ensure that the voice of truth regarding palm oil can be heard more fairly by the world," he stated. Tempo
----------
Indonesia to forge sustainable path in palm oil sector through biomethane production
JAKARTA (ANN/THE JAKARTA POST) – PGN, a subsidiary of the Indonesian state-owned oil and gas corporation, along with three Japanese companies, is looking produce biomethane derived from palm oil mill effluent (POME) in an effort to meet the growing demand for natural gas while simultaneously reducing the country’s methane emissions.
Under the consortium comprising PGN, JGC Holdings Corporation, Osaka Gas, and Inpex Corporation, the companies are currently engaged in a study to commercialise the product in Indonesia by 2025.
They plan to leverage PGN’s established natural gas distribution network for this purpose. The primary source of raw material for this venture will be oil palm plantations located in South Sumatra.
The project’s core objective is to capture methane emissions released into the atmosphere from POME, process it into high-quality biomethane, and distribute it to consumers through natural gas pipelines and existing infrastructure.
This approach not only addresses the rising natural gas demand but also contributes significantly to mitigating environmental concerns related to methane emissions.
Untreated POME releases methane, which is more than 25 times as potent as carbon dioxide at trapping heat in the atmosphere, according to the United States’ Environmental Protection Agency.
“The biomethane produced from this project is not only expected to meet industrial gas and consumer demand but also to serve as proof that Pertamina Group and its partners, in this case, JGC, Inpex and Osaka Gas, are committed to encouraging renewable energy development,” Harry Budi Sidharta, PGN director of strategy and business development, said in a statement on Monday. Borneo Bulletin
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Godrej Agrovet to set up Rs 300 cr integrated palm oil complex in Telangana
Godrej Agrovet Ltd (GAVL) on Saturday said it will set up an integrated palm oil complex in Telangana with an investment of Rs 300 crore over the next 3-4 years.
The palm oil complex, to be set up in the Khammam district of Telangana, is spread over 125 acres and will consist of a crude palm oil mill along with the provision of setting up a refinery in the near future, GAVL said in a statement.
The company will also establish a nursery with a capacity of up to 7 lakh saplings per year in addition to the seed production and research unit, it added.
"Telangana's ambitious oil palm mission aims to bring 20 lakh acres under cultivation across the state. The mission will improve income for more than 5 lakh farm households, while at the same time contributing to the nation's deficit for edible oils.
Business Standard
---------
Palm oil does not threaten health
Health
Palm oil does not threaten health
Staff EditorStaff EditorSep 30, 2023 - 09:17Updated: Sep 30, 2023 - 09:180
Facebook Twitter
Palm oil does not threaten health
Palm oil is a very common product. It appears in thousands of food products and is sold and used all around the world without issue. Unfortunately, there is a lot of misinformation surrounding palm oil. Some people, possibly with a vested commercial interest in seeing palm oil fail (perhaps because they would benefit financially from companies selling other products rivalling palm oil) appear to enjoy promoting transparently false and scaremongering narratives about palm oil.
A recent example of this swept through India. A large number of WhatsApp users received a message declaring to be an exposé on various health issues with palm oil. It said it was written by Dr Tejas Patel, a respected cardiologist, and it warned that consumers should avoid palm oil because it is “more dangerous than alcohol and tobacco”. It went on to list a number of ways it alleges palm oil damages human health.
There are many problems with the narrative promoted in the viral WhatsApp message. Firstly, it was not written by Dr Patel. In fact, in a Facebook video, Dr Patel denounced the video, its contents and its unknown authors. He declared publicly that he had no knowledge of where the message came from and he even approached the cyber crime police to report the incident, since the message had used his name without consent.
The alleged authorship of Dr Patel is not the only thing the authors of this WhatsApp message lied about. In fact, the message contained a litany of false statements about palm oil. It is a clear attempt to stoke fear about palm oil and warn consumers away from using it. It states, for example, that India is the largest importer of palm oil in the world. This is unsurprising, since palm oil is used in so many consumer products and India has the largest population of any country in the world.
The claims made in the message about the health risks of consuming palm oil have no scientific basis whatsoever. There are several false claims which are easy to disprove with even preliminary research. The message discusses palmitic acid, for example, alleging that since palm oil contains palmitic acid, consumers should stay away. This mirrors a narrative perpetrated elsewhere in the world, such as in the UK’s Guardian and Mirror newspapers, which have claimed in the past that palmitic acid has links to cancer. Weekly Mail
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September 29, 2023
Indonesia, Malaysia Seek to Counter Negative Perception of Palm Oil in India
Mumbai. Indonesia and Malaysia are determined not to lose the palm oil market in India, the biggest importer of the commodity, due to perceptions of their products being unsustainable.
Sustainability has become a crucial issue because palm oil plantations in Indonesia and Malaysia, the world's two largest crude palm oil (CPO) producers, have often faced allegations of deforestation. Both countries have requested the revocation of the European Union Deforestation Regulation (EUDR), which they believe has adverse effects on plantation products like palm oil and rubber. Currently, the EU, Malaysia, and Indonesia have formed a joint task force to discuss the fairness of the EUDR.
In recent times, negative campaigns against palm oil in India have intensified. Besides sustainability issues, there has been a growing campaign highlighting the alleged adverse health effects of CPO products among Indian consumers.
Last year, during a shortage of edible oil in Indonesia, the government imposed export restrictions to secure domestic supplies. This move surprised India, which heavily relies on Indonesia for palm oil supplies, with imports totaling 5 million tons in 2022. Jakarta Globe
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Godrej Agrovet gains on tie-up with Malaysian firm, Sime Darby, for palm oil seeds
Godrej Agrovet has said Sime Darby Plantation Berhad will supply oil palm seeds and also set up a state-of-the-art seed production unit in India
Godrej Agrovet was trading higher on September 29 morning, a day after the company entered into a strategic partnership with a Malaysian firm for the supply of oil palm seeds.
In a regulatory filing, Godrej Agrovet said the company has entered into a strategic partnership agreement with Sime Darby Plantation Berhad (SDP), the largest producer of Certified Sustainable Palm Oil (CSPO) in the world. SDP would supply high-quality oil palm seeds to Godrej Agrovet's oil palm business units and would also set up a state-of-the-art seed production unit in India at a later date. Money Control
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Time is running out for an effective EUDR
In Europe and in countries where coffee, cocoa, rubber, soy, palm oil, wood, beef and leather are produced, supply chain actors are busy preparing for the upcoming European Deforestation Regulation (EUDR)… Or they should be.
Gert van der Bijl is Senior EU Policy Advisor at Solidaridad.
From December 2024 onwards the aforementioned products can only be sold on the European market if they are deforestation free, legally produced and companies can demonstrate that they are traceable all the way back to the production plot. This is no small feat: the total annual import value involved will be around 85 billion euros, or 70% of all agricultural imports to the EU. This can’t be done overnight- not well.
Game changer or a new challenge for smallholders?
If introduced carefully and with the right accompanying measures, the EUDR can be a real game changer in global agricultural chains, supporting the social and environmental transformation we need to see as a species. However, without these necessary accompanying measures, the regulation could become a huge challenge for smallholders and other vulnerable groups, who face tremendous negative consequences. This is something even the people who designed this law were aware of. The regulation text itself regularly underlines the importance of “the needs of indigenous peoples, local communities and smallholders”. EURACTIV
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Netherlands tops EU importers list for third country products linked to deforestation
The Netherlands is the EU’s largest importer of products with a high risk of deforestation from third countries, including soy, palm oil and cocoa, the country’s statistics agency CBS reported on Thursday.
Brazil is the largest third-country exporter of deforestation-linked goods to the Netherlands, delivering products – especially soy and wood – worth €3.2 billion in 2022. The United States was the second largest source of deforestation products, followed by Côte d’Ivoire.
“The Netherlands is the largest EU importer of soy, palm oil and cocoa from non-EU countries in terms of import value,” the agency stated on its website.
“The Netherlands is also the second EU importer of wood and beef from non-EU countries, and the sixth EU importer of coffee (much of which comes in via Germany and Belgium),” it added.
While 28% of deforestation-related products are immediately re-exported, 33% are re-exported after processing in the Netherlands, and 39% remain in the country, with timber, coffee and beef mainly falling into the latter category. EURACTIV
Indonesia, Malaysia Seek to Counter Negative Perception of Palm Oil in India
Mumbai. Indonesia and Malaysia are determined not to lose the palm oil market in India, the biggest importer of the commodity, due to perceptions of their products being unsustainable.
Sustainability has become a crucial issue because palm oil plantations in Indonesia and Malaysia, the world's two largest crude palm oil (CPO) producers, have often faced allegations of deforestation. Both countries have requested the revocation of the European Union Deforestation Regulation (EUDR), which they believe has adverse effects on plantation products like palm oil and rubber. Currently, the EU, Malaysia, and Indonesia have formed a joint task force to discuss the fairness of the EUDR.
In recent times, negative campaigns against palm oil in India have intensified. Besides sustainability issues, there has been a growing campaign highlighting the alleged adverse health effects of CPO products among Indian consumers.
Last year, during a shortage of edible oil in Indonesia, the government imposed export restrictions to secure domestic supplies. This move surprised India, which heavily relies on Indonesia for palm oil supplies, with imports totaling 5 million tons in 2022. Jakarta Globe
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Godrej Agrovet gains on tie-up with Malaysian firm, Sime Darby, for palm oil seeds
Godrej Agrovet has said Sime Darby Plantation Berhad will supply oil palm seeds and also set up a state-of-the-art seed production unit in India
Godrej Agrovet was trading higher on September 29 morning, a day after the company entered into a strategic partnership with a Malaysian firm for the supply of oil palm seeds.
In a regulatory filing, Godrej Agrovet said the company has entered into a strategic partnership agreement with Sime Darby Plantation Berhad (SDP), the largest producer of Certified Sustainable Palm Oil (CSPO) in the world. SDP would supply high-quality oil palm seeds to Godrej Agrovet's oil palm business units and would also set up a state-of-the-art seed production unit in India at a later date. Money Control
---------
Time is running out for an effective EUDR
In Europe and in countries where coffee, cocoa, rubber, soy, palm oil, wood, beef and leather are produced, supply chain actors are busy preparing for the upcoming European Deforestation Regulation (EUDR)… Or they should be.
Gert van der Bijl is Senior EU Policy Advisor at Solidaridad.
From December 2024 onwards the aforementioned products can only be sold on the European market if they are deforestation free, legally produced and companies can demonstrate that they are traceable all the way back to the production plot. This is no small feat: the total annual import value involved will be around 85 billion euros, or 70% of all agricultural imports to the EU. This can’t be done overnight- not well.
Game changer or a new challenge for smallholders?
If introduced carefully and with the right accompanying measures, the EUDR can be a real game changer in global agricultural chains, supporting the social and environmental transformation we need to see as a species. However, without these necessary accompanying measures, the regulation could become a huge challenge for smallholders and other vulnerable groups, who face tremendous negative consequences. This is something even the people who designed this law were aware of. The regulation text itself regularly underlines the importance of “the needs of indigenous peoples, local communities and smallholders”. EURACTIV
---------
Netherlands tops EU importers list for third country products linked to deforestation
The Netherlands is the EU’s largest importer of products with a high risk of deforestation from third countries, including soy, palm oil and cocoa, the country’s statistics agency CBS reported on Thursday.
Brazil is the largest third-country exporter of deforestation-linked goods to the Netherlands, delivering products – especially soy and wood – worth €3.2 billion in 2022. The United States was the second largest source of deforestation products, followed by Côte d’Ivoire.
“The Netherlands is the largest EU importer of soy, palm oil and cocoa from non-EU countries in terms of import value,” the agency stated on its website.
“The Netherlands is also the second EU importer of wood and beef from non-EU countries, and the sixth EU importer of coffee (much of which comes in via Germany and Belgium),” it added.
While 28% of deforestation-related products are immediately re-exported, 33% are re-exported after processing in the Netherlands, and 39% remain in the country, with timber, coffee and beef mainly falling into the latter category. EURACTIV
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September 28, 2023
EU urged to implement inclusive deforestation regulations to support smallholders
MUMBAI (Sept 28): Solidaridad Asia has called on the European Union (EU) to take a comprehensive approach in implementing the EU Deforestation Regulation (EUDR) that will primarily benefit smallholders.
Speaking at the second Sustainable Vegetable Oils Conference (SVOC) in Mumbai, Solidaridad managing director Dr Shatadru Chattopadhayay said it is crucial to set inclusivity data that would ensure that a specific percentage of palm oil imports to the EU come from smallholders in Malaysia and Indonesia.
Another measure is comprehensive support for smallholders, including pre-financing, to facilitate investment in sustainable farming practices, technical assistance to improve farming practices and a guaranteed market for carbon credits generated through sustainability efforts.
“EUDR risks marginalising smallholder farmers and undermining the livelihoods of millions of smallholders,” Chattopadhayay said, adding that they often depend on the crop not only for their income but also for their own food security.
“Palm oil plays a crucial role in addressing nutrition security for billions of less prosperous people mainly in Asia. It is an interesting crop for smallholders — more profitable than other crops... but in a volatile and challenging market, with rising input prices, income is precarious and sustainability challenges persist. The Edge Malaysia
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Palm oil discrimination harms Indonesia's national interests: Official
Mumbai, India (ANTARA) - Deputy Trade Minister Jerry Sambuaga said on Wednesday that discrimination against Indonesia's palm oil hampers the country's national interests.
He said that palm oil is a strategic national interest as it contributes 3.5 percent to Indonesia's gross domestic product (GDP).
"Therefore, discriminating against palm oil means harming our national interests and security," he said during the 2nd Sustainable Vegetable Oils Conference (SVOC) in Mumbai, India.
Millions of small farmers in Indonesia are heavily dependent on palm oil commodities, so the government will not stand idle in situations that disrupt their livelihoods, he said.
"We will not burden them, as this goes against our Constitution," he stressed, alluding to the European Union Deforestation Regulation (EUDR).
Sambuaga pointe out that Indonesia's palm oil has the capacity to meet the global demand for sustainable vegetable oils.
However, he stressed the need to rectify the negative image associated with the commodity.
With Indonesia producing 46.7 million tons of palm oil in 2022, the country holds a strategic position to be a "determinant" of global palm oil supply and become a major producer of palm oil, he said. Antara News
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Demand-side actors in agricultural supply chain sustainability: an assessment of motivations for action, implementation challenges, and research frontiers
In this article the authors explore how demand-side actors within globalized supply chains see limitations in knowledge and barriers to progress in the context of forest-risk commodities.
Agricultural supply chains of forest-risk commodities such as soy, palm oil, and cocoa have risen to the top of the global sustainability agenda. Demand-side actors, including consumer-goods companies, retailers, and civil society organizations have coalesced around a growing number of sustainable supply chain policies. However, despite rapid advances in tools and methods to convert data into useful information about impacts and policy effectiveness, and their implementation for decision-making is lagging. There is an urgent need to examine such demand-led action and understand how to accelerate progress towards agricultural supply chain sustainability.
In this article the authors explore how demand-side actors within globalized supply chains see limitations in knowledge and barriers to progress in the context of forest-risk commodities. SEI
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Nigeria-Gov Otu’s proposed 3.5million free seedlings excite oil palm growers in Cross River
The Oil Palm Growers Association of Nigeria (OPGAN) has conveyed profound gratitude for Governor Senator Bassey Otu’s initiative to distribute 3.5 million free oil palm seedlings to legitimate oil palm farmers in Cross River State.
The Association also acknowledged the concluded plans by the governor to establish a permanent branch office of the Nigeria Institute for Oil Palm Research (NIFOR) in the state, aimed at assisting farmers in achieving high-quality yields.
National president of OPGAN, Joe Onyiuke in a town hall meeting with state leaders and members of OPGAN in Cross River, noted that it takes a governor who means well for the ordinary citizen to commit investment to the Oil Palm industry and economy.
He said OPGAN members are excited because genuine farmers have been given the needed lift to grow and expand for the general good of the economy of the State and Nation.
He said the governor in a speech he delivered to mark his hundred days in office, affirmed that his administration is already in partnership with the ORGAN as he commenced the planting of 3.5 million hybrid oil palm seedlings in 13 identified locations across the state. The Nation OnlineNG
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Introduce effective oil palm growing mechanisms to improve yields – OPGAN to Cross River govt
The Oil Palm Growers Association of Nigeria, OPGAN has urged the Cross River State government to build coherent oil palm programs to regain its pre-eminent position as the number one oil palm state in Nigeria.
The National President of OPGAN, Joe Onyiuke who made the call at the flag-off of a Town Hall event in Calabar on Tuesday said Cross River State has always been the most fertile environment for oil palm development, raising the need for oil palm growers to partner the Nigerian Institute for Oil Palm Research (NIFOR) to trigger growth in the sector
“Cross River State has always been a fertile environment for oil palm development and it is time for Cross River State to build coherent oil palm programs to regain its pre-eminent position as the number one oil palm state in the country. Daily PostNG
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EU urged to implement inclusive deforestation regulations to support smallholders
MUMBAI (Sept 28): Solidaridad Asia has called on the European Union (EU) to take a comprehensive approach in implementing the EU Deforestation Regulation (EUDR) that will primarily benefit smallholders.
Speaking at the second Sustainable Vegetable Oils Conference (SVOC) in Mumbai, Solidaridad managing director Dr Shatadru Chattopadhayay said it is crucial to set inclusivity data that would ensure that a specific percentage of palm oil imports to the EU come from smallholders in Malaysia and Indonesia.
Another measure is comprehensive support for smallholders, including pre-financing, to facilitate investment in sustainable farming practices, technical assistance to improve farming practices and a guaranteed market for carbon credits generated through sustainability efforts.
“EUDR risks marginalising smallholder farmers and undermining the livelihoods of millions of smallholders,” Chattopadhayay said, adding that they often depend on the crop not only for their income but also for their own food security.
“Palm oil plays a crucial role in addressing nutrition security for billions of less prosperous people mainly in Asia. It is an interesting crop for smallholders — more profitable than other crops... but in a volatile and challenging market, with rising input prices, income is precarious and sustainability challenges persist. The Edge Malaysia
---------
Palm oil discrimination harms Indonesia's national interests: Official
Mumbai, India (ANTARA) - Deputy Trade Minister Jerry Sambuaga said on Wednesday that discrimination against Indonesia's palm oil hampers the country's national interests.
He said that palm oil is a strategic national interest as it contributes 3.5 percent to Indonesia's gross domestic product (GDP).
"Therefore, discriminating against palm oil means harming our national interests and security," he said during the 2nd Sustainable Vegetable Oils Conference (SVOC) in Mumbai, India.
Millions of small farmers in Indonesia are heavily dependent on palm oil commodities, so the government will not stand idle in situations that disrupt their livelihoods, he said.
"We will not burden them, as this goes against our Constitution," he stressed, alluding to the European Union Deforestation Regulation (EUDR).
Sambuaga pointe out that Indonesia's palm oil has the capacity to meet the global demand for sustainable vegetable oils.
However, he stressed the need to rectify the negative image associated with the commodity.
With Indonesia producing 46.7 million tons of palm oil in 2022, the country holds a strategic position to be a "determinant" of global palm oil supply and become a major producer of palm oil, he said. Antara News
---------
Demand-side actors in agricultural supply chain sustainability: an assessment of motivations for action, implementation challenges, and research frontiers
In this article the authors explore how demand-side actors within globalized supply chains see limitations in knowledge and barriers to progress in the context of forest-risk commodities.
Agricultural supply chains of forest-risk commodities such as soy, palm oil, and cocoa have risen to the top of the global sustainability agenda. Demand-side actors, including consumer-goods companies, retailers, and civil society organizations have coalesced around a growing number of sustainable supply chain policies. However, despite rapid advances in tools and methods to convert data into useful information about impacts and policy effectiveness, and their implementation for decision-making is lagging. There is an urgent need to examine such demand-led action and understand how to accelerate progress towards agricultural supply chain sustainability.
In this article the authors explore how demand-side actors within globalized supply chains see limitations in knowledge and barriers to progress in the context of forest-risk commodities. SEI
---------
Nigeria-Gov Otu’s proposed 3.5million free seedlings excite oil palm growers in Cross River
The Oil Palm Growers Association of Nigeria (OPGAN) has conveyed profound gratitude for Governor Senator Bassey Otu’s initiative to distribute 3.5 million free oil palm seedlings to legitimate oil palm farmers in Cross River State.
The Association also acknowledged the concluded plans by the governor to establish a permanent branch office of the Nigeria Institute for Oil Palm Research (NIFOR) in the state, aimed at assisting farmers in achieving high-quality yields.
National president of OPGAN, Joe Onyiuke in a town hall meeting with state leaders and members of OPGAN in Cross River, noted that it takes a governor who means well for the ordinary citizen to commit investment to the Oil Palm industry and economy.
He said OPGAN members are excited because genuine farmers have been given the needed lift to grow and expand for the general good of the economy of the State and Nation.
He said the governor in a speech he delivered to mark his hundred days in office, affirmed that his administration is already in partnership with the ORGAN as he commenced the planting of 3.5 million hybrid oil palm seedlings in 13 identified locations across the state. The Nation OnlineNG
----------
Introduce effective oil palm growing mechanisms to improve yields – OPGAN to Cross River govt
The Oil Palm Growers Association of Nigeria, OPGAN has urged the Cross River State government to build coherent oil palm programs to regain its pre-eminent position as the number one oil palm state in Nigeria.
The National President of OPGAN, Joe Onyiuke who made the call at the flag-off of a Town Hall event in Calabar on Tuesday said Cross River State has always been the most fertile environment for oil palm development, raising the need for oil palm growers to partner the Nigerian Institute for Oil Palm Research (NIFOR) to trigger growth in the sector
“Cross River State has always been a fertile environment for oil palm development and it is time for Cross River State to build coherent oil palm programs to regain its pre-eminent position as the number one oil palm state in the country. Daily PostNG
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September 27, 2023
New EU Deforestation Laws May Negatively Impact Vulnerable Farmers The Most
The European Union’s new law banning the import of commodities linked to deforestation is still a little over a year away from taking effect, but already the problems are mounting. Big names companies like Lavazza and chocolate maker Mondelez have already pushed back on the laws, stating that they won’t have the systems in place to comply with the new regulations.
Some industry watchdogs agree with the companies’ unpreparedness and are raising concerns that producers may suffer the majority of the law’s negative impact.
As reported by Reuters, the law doesn’t take effect until the end of 2024, where it will then require EU-based companies to show that the commodities they are bringing in—including things like coffee, cocoa, beef, soy, rubber and palm oil—are not linked with deforestation somewhere on the planet. If they are unable to prove the sustainability of their imports, the companies face rather sizable fines, up to “4% of a company’s turnover in an EU member state.”
With some companies already throwing in the towel and admitting their won’t be ready, many in the coffee industry are worried the producers will be the ones ultimately impacted. According to the Coffee Barometer, a bi-annual report produced by NGOs Conservation International and Solidaridad, instead of putting traceability mechanisms in place, these companies may simply shift their focus to producers that already have such systems, leaving many of small-scale producers without the major buyers they have relied on. Sprudge
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EU DEFORESTATION REGULATION
Few in market looking at critical new environmental rules
The new regulation 2023/1115, or EUDR, has an extraterritorial reach and is relevant to a considerable number of stakeholders. It covers seven commodities (palm oil, soya, wood, cocoa, coffee, cattle and rubber) and their derived products, as noted in a previous instalment of the Deforestation Act series.
Not getting ready now may have severe adverse consequences for companies involved with the relevant commodities and other relevant products (i.e., derived products). The ripple effects may reach financial institutions that have financial commitments to those companies.
“There are other regulations which get more attention. This regulation should probably be up there at the same levels as certain other regulations,” said Björn ten Seldam, an associate in the EU financial & competition law practice of Arendt & Medernach during an interview on 31 August 2023 in Kirchberg. It is true that the regulatory department of large firms have been inundated with a tsunami of complex ESG regulations and it is “difficult for market players to stay up to date to every single regulation.”
Has your product been produced after 31 December 2020, the cut-off date? Delano
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‘Not the most practical approach’: Stricter palm oil regulation will have serious food supply and cost implications – RSPO
27-Sep-2023 By Pearly Neo
The implementation of stricter regulations for palm oil, one of the food sector’s most essential commodities, will lead to major supply and cost implications in APAC and beyond, says the Roundtable on Sustainable Palm Oil (RSPO). Food Navigator Asia
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Indonesia and Malaysia in Talks with India Amid EU Market Restrictions
Mumbai. Representatives from the world's largest crude palm oil (CPO) producers, Indonesia and Malaysia, were in India on Wednesday to attend a related conference and seek opportunities to enhance market access. This move comes as sales to the European Union have been hindered by the Deforestation Regulation.
Indonesia and Malaysia, both prominent CPO-producing countries, are the founding members of the intergovernmental organization Council of Palm Oil Producing Countries (CPOPC). Recently, they welcomed Papua New Guinea as a new member and are awaiting the accession of Honduras as the fourth member.
The purpose of the visit to India is to convince the world's largest CPO importer that products from Indonesia and Malaysia adhere to sustainable production practices and to dispel negative stereotypes associated with palm plantations in both countries, CPOPC Secretary-General Rizal Affandi Lukman said in Mumbai. Jakarta Globe
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Indonesia to produce biomethane from palm oil in 2025
Pertamina subsidiary PGN and three Japanese companies are looking to produce biomethane from palm oil mill effluent (POME) to meet rising natural gas demand and reduce methane emissions. The consortium of PGN, JGC Holdings Corporation, Osaka Gas and Inpex Corporation is currently working on a study for the commercialization of such a product in Indonesia in 2025, using PGN’s natural gas distribution network.
The raw material is to come from oil palm plantations in South Sumatra. The Jakarta Post
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Indonesia to pursue legal action against palm firms that use land illegally
JAKARTA, Sept 26 (Reuters) - Indonesia's government will pursue legal action against palm oil companies that use land illegally if they do not submit required paperwork related to land use by November, a senior minister Mahfud MD said on Tuesday.
Indonesia earlier this year identified 3.3 million hectares (8.1 million acres) of the country's nearly 17 million hectares of palm oil plantation were located in areas designated as forest.
The illegal use of land has cost the Indonesian economy 42 trillion rupiah in losses, Mahfud said.
"If they violate the rules and don't want to cooperate until the specified time, yes, in November there will be legal action," Mahfud said.
Under a 2020 law, plantations inside Indonesia's forest areas can be recognised as legal if they meet a number of requirements and pay fines. Reuters
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Indonesia to Co-host Second Vegetable Oils Conference Held in Mumbai, India
TEMPO.CO, Mumbai, India - The fastest-growing food commodity, vegetable oils, plays a fundamental role in supporting humanity’s needs, both for consumption and various applications. However, it is now facing the challenge of meeting demand that increasingly outruns the supply. Swift and decisive action is required from vegetable oil-producing countries to address immediate challenges and enhance future resilience in providing sustainable vegetable oils.
To facilitate this action, the Council of Palm Oil Producing Countries (CPOPC) and Indonesian Palm Oil Association (GAPKI) will co-host the 2nd Sustainable Vegetable Oils Conference (2nd SVOC), aligning with the G20 meetings and back-to-back with the Globoil India 2023.
After its first conference last year in Bali in November, the Second Sustainable Vegetable Oils Conference this year will be held in Mumbai, India, on September 27, at the ITC Maratha Hotel. Tempo
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ISPO Presidential Decree Will Be Replaced, GAPKI Raises Voice
JAKARTA, INDONESIAN SAWIT The Indonesian Palm Oil Entrepreneurs Association (GAPKI) supports the government's move to cover the costs of Indonesian Sustainable Palm Oil (ISPO) Plantation Certification for farmers.
With ISPO certification, companies and all palm oil stakeholders can demonstrate their commitment to accelerating efforts to reduce greenhouse gas emissions, as well as increasing the acceptability and competitiveness of Indonesian palm oil products and derivatives in national and international markets. This provision is one of the proposals for the revision of Presidential Regulation (Perpres) no. 44 of 2020.
General Chairman of Gapki, Eddy Martono, said that by covering the costs of certification for farmers by the government, it could maximize the participation of oil palm farmers who currently still have minimal access to such certificates.
"So if there is no change in the revision for plantation companies up to PKS, the meaning is still the same, what has changed is the existence of downstream ISPO and also for bioenergy and also for palm oil farmers the ISPO is funded by the government," said Eddy, Wednesday (27/9/2023) .
According to him, the revision of the ISPO Presidential Decree is positively funded by the government both from the Indonesian State Revenue and Expenditure Budget (APBN) as well as from the Palm Oil Plantation Fund Management Agency (BPDPKS).
"The issue of sustainability is a demand of the world market, right? So if it is not sustainable, this will also be a problem for the company because it has to accept the farmers' fruit. In the revised Presidential Decree, we are always invited to provide input. We don't have any problems in the company regarding ISPO. Well, just farmers. "Because the burden on the company is heavy," said Eddy. Sawit Indonesia
New EU Deforestation Laws May Negatively Impact Vulnerable Farmers The Most
The European Union’s new law banning the import of commodities linked to deforestation is still a little over a year away from taking effect, but already the problems are mounting. Big names companies like Lavazza and chocolate maker Mondelez have already pushed back on the laws, stating that they won’t have the systems in place to comply with the new regulations.
Some industry watchdogs agree with the companies’ unpreparedness and are raising concerns that producers may suffer the majority of the law’s negative impact.
As reported by Reuters, the law doesn’t take effect until the end of 2024, where it will then require EU-based companies to show that the commodities they are bringing in—including things like coffee, cocoa, beef, soy, rubber and palm oil—are not linked with deforestation somewhere on the planet. If they are unable to prove the sustainability of their imports, the companies face rather sizable fines, up to “4% of a company’s turnover in an EU member state.”
With some companies already throwing in the towel and admitting their won’t be ready, many in the coffee industry are worried the producers will be the ones ultimately impacted. According to the Coffee Barometer, a bi-annual report produced by NGOs Conservation International and Solidaridad, instead of putting traceability mechanisms in place, these companies may simply shift their focus to producers that already have such systems, leaving many of small-scale producers without the major buyers they have relied on. Sprudge
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EU DEFORESTATION REGULATION
Few in market looking at critical new environmental rules
The new regulation 2023/1115, or EUDR, has an extraterritorial reach and is relevant to a considerable number of stakeholders. It covers seven commodities (palm oil, soya, wood, cocoa, coffee, cattle and rubber) and their derived products, as noted in a previous instalment of the Deforestation Act series.
Not getting ready now may have severe adverse consequences for companies involved with the relevant commodities and other relevant products (i.e., derived products). The ripple effects may reach financial institutions that have financial commitments to those companies.
“There are other regulations which get more attention. This regulation should probably be up there at the same levels as certain other regulations,” said Björn ten Seldam, an associate in the EU financial & competition law practice of Arendt & Medernach during an interview on 31 August 2023 in Kirchberg. It is true that the regulatory department of large firms have been inundated with a tsunami of complex ESG regulations and it is “difficult for market players to stay up to date to every single regulation.”
Has your product been produced after 31 December 2020, the cut-off date? Delano
---------
‘Not the most practical approach’: Stricter palm oil regulation will have serious food supply and cost implications – RSPO
27-Sep-2023 By Pearly Neo
The implementation of stricter regulations for palm oil, one of the food sector’s most essential commodities, will lead to major supply and cost implications in APAC and beyond, says the Roundtable on Sustainable Palm Oil (RSPO). Food Navigator Asia
---------
Indonesia and Malaysia in Talks with India Amid EU Market Restrictions
Mumbai. Representatives from the world's largest crude palm oil (CPO) producers, Indonesia and Malaysia, were in India on Wednesday to attend a related conference and seek opportunities to enhance market access. This move comes as sales to the European Union have been hindered by the Deforestation Regulation.
Indonesia and Malaysia, both prominent CPO-producing countries, are the founding members of the intergovernmental organization Council of Palm Oil Producing Countries (CPOPC). Recently, they welcomed Papua New Guinea as a new member and are awaiting the accession of Honduras as the fourth member.
The purpose of the visit to India is to convince the world's largest CPO importer that products from Indonesia and Malaysia adhere to sustainable production practices and to dispel negative stereotypes associated with palm plantations in both countries, CPOPC Secretary-General Rizal Affandi Lukman said in Mumbai. Jakarta Globe
---------
Indonesia to produce biomethane from palm oil in 2025
Pertamina subsidiary PGN and three Japanese companies are looking to produce biomethane from palm oil mill effluent (POME) to meet rising natural gas demand and reduce methane emissions. The consortium of PGN, JGC Holdings Corporation, Osaka Gas and Inpex Corporation is currently working on a study for the commercialization of such a product in Indonesia in 2025, using PGN’s natural gas distribution network.
The raw material is to come from oil palm plantations in South Sumatra. The Jakarta Post
----------
Indonesia to pursue legal action against palm firms that use land illegally
JAKARTA, Sept 26 (Reuters) - Indonesia's government will pursue legal action against palm oil companies that use land illegally if they do not submit required paperwork related to land use by November, a senior minister Mahfud MD said on Tuesday.
Indonesia earlier this year identified 3.3 million hectares (8.1 million acres) of the country's nearly 17 million hectares of palm oil plantation were located in areas designated as forest.
The illegal use of land has cost the Indonesian economy 42 trillion rupiah in losses, Mahfud said.
"If they violate the rules and don't want to cooperate until the specified time, yes, in November there will be legal action," Mahfud said.
Under a 2020 law, plantations inside Indonesia's forest areas can be recognised as legal if they meet a number of requirements and pay fines. Reuters
---------
Indonesia to Co-host Second Vegetable Oils Conference Held in Mumbai, India
TEMPO.CO, Mumbai, India - The fastest-growing food commodity, vegetable oils, plays a fundamental role in supporting humanity’s needs, both for consumption and various applications. However, it is now facing the challenge of meeting demand that increasingly outruns the supply. Swift and decisive action is required from vegetable oil-producing countries to address immediate challenges and enhance future resilience in providing sustainable vegetable oils.
To facilitate this action, the Council of Palm Oil Producing Countries (CPOPC) and Indonesian Palm Oil Association (GAPKI) will co-host the 2nd Sustainable Vegetable Oils Conference (2nd SVOC), aligning with the G20 meetings and back-to-back with the Globoil India 2023.
After its first conference last year in Bali in November, the Second Sustainable Vegetable Oils Conference this year will be held in Mumbai, India, on September 27, at the ITC Maratha Hotel. Tempo
---------
ISPO Presidential Decree Will Be Replaced, GAPKI Raises Voice
JAKARTA, INDONESIAN SAWIT The Indonesian Palm Oil Entrepreneurs Association (GAPKI) supports the government's move to cover the costs of Indonesian Sustainable Palm Oil (ISPO) Plantation Certification for farmers.
With ISPO certification, companies and all palm oil stakeholders can demonstrate their commitment to accelerating efforts to reduce greenhouse gas emissions, as well as increasing the acceptability and competitiveness of Indonesian palm oil products and derivatives in national and international markets. This provision is one of the proposals for the revision of Presidential Regulation (Perpres) no. 44 of 2020.
General Chairman of Gapki, Eddy Martono, said that by covering the costs of certification for farmers by the government, it could maximize the participation of oil palm farmers who currently still have minimal access to such certificates.
"So if there is no change in the revision for plantation companies up to PKS, the meaning is still the same, what has changed is the existence of downstream ISPO and also for bioenergy and also for palm oil farmers the ISPO is funded by the government," said Eddy, Wednesday (27/9/2023) .
According to him, the revision of the ISPO Presidential Decree is positively funded by the government both from the Indonesian State Revenue and Expenditure Budget (APBN) as well as from the Palm Oil Plantation Fund Management Agency (BPDPKS).
"The issue of sustainability is a demand of the world market, right? So if it is not sustainable, this will also be a problem for the company because it has to accept the farmers' fruit. In the revised Presidential Decree, we are always invited to provide input. We don't have any problems in the company regarding ISPO. Well, just farmers. "Because the burden on the company is heavy," said Eddy. Sawit Indonesia
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September 26, 2023
Technology can’t solve everything but more Africa agrifoodtech investment is critical as climate change impacts and food insecurity worsen
September 25, 2023 Louisa Burwood-Taylor
Last week we published our second Africa agrifoodtech investment report and it was a bumper edition of over 50 pages showcasing when and where investors are placing bets on the region’s food and agriculture startup community.
Seemingly immune to the downturn across venture capital markets in 2022 – when Africa agrifoodtech investment reached a record-breaking $636m – things looked less rosy in the first half of this year. Hopefully, it’s just a delayed response to the tightening venture capital markets because investment in the region’s food and agriculture industry is more critical than ever.
We’ve all felt the impacts of climate change this season but they’re especially pronounced in Africa; of the 20 nations ranked as most vulnerable to climate change, all but four are African, according to the Notre Dame Global Adaptation Initiative.
Climate change is a key long-term contributor to the worsening food security situation across the continent that has spiked in the past year, according to the World Food Programme. Acute food insecurity – when a lack of food puts lives or livelihoods in immediate danger – increased by 60% in East Africa in 2022 after missing its rainy season for the fourth year running, contributing to the worst drought in 40 years.
Some 22 million people across Ethiopia, Kenya, and Somalia face high levels of acute food insecurity due solely to the drought, according to the WFP. The rate of food insecurity is only marginally better in West Africa where it still increased 40% in 2022. Local conflicts, heavy debt burdens following the COVID-19 pandemic, rising prices, and war in Ukraine have all contributed to food insecurity too. AgFunderNews
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ASEAN courts Africa amid China slowdown: business council chief
Companies examine investment opportunities in 'nontraditional' markets
JAKARTA -- Southeast Asian companies are assessing potential investments in African markets to support growth and seek new opportunities amid China's slowdown, the head of a regional business lobby told Nikkei Asia.
Speaking during a recent interview, Arsjad Rasjid, chairman of the ASEAN Business Advisory Council, lamented that China's slowdown "definitely" impacts the Southeast Asian region, which has strong trade ties with the world's second-largest economy. But at the same time, he said that "We can look at it positively."
"What is important to see is that we are now looking at other nontraditional markets," Rasjid said, adding, "We've talked about Africa."
With a population of over 1 billion, Africa is seen as filled with potential future markets by companies from the rest of the world.
In late August, Indonesian President Joko Widodo made his first trip to Africa as leader of Southeast Asia's biggest economy. His tour to Kenya, Tanzania, Mozambique and South Africa marked a turn in Indonesia's economic diplomacy as it searches for new export markets for pharmaceutical products and commodities such as palm oil. Nikkei Asia
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Malaysia: Is boosting palm oil flow to China defeat for EU?
Malaysia intends to double the quantity of palm oil it exports to China, in an effort to counterbalance the EU's push to cut down on its own imports.
The European Union (EU) intends to phase out imports of palm-oil-based biofuel by 2030 — while deforestation legislation adopted in Brussels earlier this year will impose considerable administrative burdens on palm oil exporters wanting to sell their goods in the bloc.
The new rules aim to remove deforestation from the supply chains of a range of everyday items sold in the EU, including palm oil.
Malaysia and neighboring Indonesia, the world's two largest palm oil producers, have reacted angrily to what they perceive as European protectionism.
There are concerns that intended environmental benefits of EU legislation could be nullified if the two palm oil producers come to depend on China for their exports.
Palm oil boost for China
Investment deals between Malaysia and China to the tune of €3.9 billion ($4.1 billion) were inked earlier this month at the China-ASEAN Expo. DW
---------
Indonesia Threatens Legal Action Against Palm Oil Companies For Illegal Land Use
26-9-2023 (JAKARTA) The Indonesian government has issued a warning to palm oil companies that fail to submit the necessary paperwork related to land use. Senior minister Mahfud MD announced on Tuesday that if these companies do not comply by November, legal action will be taken against them.
Earlier this year, Indonesia identified approximately 3.3 million hectares (8.1 million acres) of palm oil plantations located in areas designated as forests. This illegal use of land has resulted in significant losses amounting to 42 trillion rupiah for the Indonesian economy, according to Mahfud.
“If they violate the rules and refuse to cooperate within the given timeframe, legal action will be taken in November,” stated Mahfud.
In accordance with a 2020 law, plantations situated within Indonesia’s forest areas can be deemed legal if they meet certain requirements and pay fines. The ASEAN Daily
---------
PASPI Proposes Revision of ISPO Presidential Decree in Accordance with UN Sustainability
JAKARTA, SAWIT INDONESIA – PalmOil Agribusiness Strategic Policy Institute (PASPI) asks the government to carry out a comprehensive revision of Presidential Regulation (Perpres) no. 44 of 2020 concerning the Indonesian Sustainable Palm Oil Plantation Certification System. In these regulations, Indonesian Sustainable Palm Oil Plantation Certification (ISPO) must follow the sustainability paradigm adopted by the United Nations, namely the Sustainable Development Goals (SDGs) which were adopted by all UN members since 2015.
PASPI Executive Director Tungkot Sipayung said that the SDGs sustainability concept is a concept of relative sustainability, not absolute sustainability. Meanwhile, the current ISPO adheres to the concept of absolute sustainability, namely sustainable or unsustainable.
"This is not realistic so it needs to be changed to a relative sustainability concept that is realistic, objective and honest. No one knows what absolute sustainability looks like. Absolute sustainability only exists in text books, the world of theory and does not exist in the real world. "Market realities (consumers) for palm oil/its derivative products throughout the world differ in their demands for the degree of sustainability," said Tungkot when contacted, Tuesday (26/9/2023). Sawit Indonesia
---------
The True Impact of Palm Oil: Land Use and Consumer Awareness Revealed
Palm oil is the world’s most produced and consumed vegetable oil, but replacing it with rapeseed oil would require a significant increase in land use. A study conducted in Germany found that consumers struggle to understand the consequences of their buying choices, even with extra information provided. The study also revealed that product information and labeling can be confusing and misleading for consumers. Customers are often attracted to products labeled as “free from palm oil.”
Palm oil is the most produced and consumed vegetable oil globally.
Replacing palm oil with rapeseed oil would require a four to five-fold increase in land use.
Consumers find it difficult to understand the consequences of their buying choices, even with extra information.
Product information and labeling can be confusing and misleading for consumers.
Is There More to Palm Oil Than Deforestation?
The study conducted in Germany investigated consumer attitudes towards palm oil and its environmental impact. It found that consumers struggle to fully understand the consequences of their buying choices, even when provided with extra information. Bolly Inside
Technology can’t solve everything but more Africa agrifoodtech investment is critical as climate change impacts and food insecurity worsen
September 25, 2023 Louisa Burwood-Taylor
Last week we published our second Africa agrifoodtech investment report and it was a bumper edition of over 50 pages showcasing when and where investors are placing bets on the region’s food and agriculture startup community.
Seemingly immune to the downturn across venture capital markets in 2022 – when Africa agrifoodtech investment reached a record-breaking $636m – things looked less rosy in the first half of this year. Hopefully, it’s just a delayed response to the tightening venture capital markets because investment in the region’s food and agriculture industry is more critical than ever.
We’ve all felt the impacts of climate change this season but they’re especially pronounced in Africa; of the 20 nations ranked as most vulnerable to climate change, all but four are African, according to the Notre Dame Global Adaptation Initiative.
Climate change is a key long-term contributor to the worsening food security situation across the continent that has spiked in the past year, according to the World Food Programme. Acute food insecurity – when a lack of food puts lives or livelihoods in immediate danger – increased by 60% in East Africa in 2022 after missing its rainy season for the fourth year running, contributing to the worst drought in 40 years.
Some 22 million people across Ethiopia, Kenya, and Somalia face high levels of acute food insecurity due solely to the drought, according to the WFP. The rate of food insecurity is only marginally better in West Africa where it still increased 40% in 2022. Local conflicts, heavy debt burdens following the COVID-19 pandemic, rising prices, and war in Ukraine have all contributed to food insecurity too. AgFunderNews
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ASEAN courts Africa amid China slowdown: business council chief
Companies examine investment opportunities in 'nontraditional' markets
JAKARTA -- Southeast Asian companies are assessing potential investments in African markets to support growth and seek new opportunities amid China's slowdown, the head of a regional business lobby told Nikkei Asia.
Speaking during a recent interview, Arsjad Rasjid, chairman of the ASEAN Business Advisory Council, lamented that China's slowdown "definitely" impacts the Southeast Asian region, which has strong trade ties with the world's second-largest economy. But at the same time, he said that "We can look at it positively."
"What is important to see is that we are now looking at other nontraditional markets," Rasjid said, adding, "We've talked about Africa."
With a population of over 1 billion, Africa is seen as filled with potential future markets by companies from the rest of the world.
In late August, Indonesian President Joko Widodo made his first trip to Africa as leader of Southeast Asia's biggest economy. His tour to Kenya, Tanzania, Mozambique and South Africa marked a turn in Indonesia's economic diplomacy as it searches for new export markets for pharmaceutical products and commodities such as palm oil. Nikkei Asia
---------
Malaysia: Is boosting palm oil flow to China defeat for EU?
Malaysia intends to double the quantity of palm oil it exports to China, in an effort to counterbalance the EU's push to cut down on its own imports.
The European Union (EU) intends to phase out imports of palm-oil-based biofuel by 2030 — while deforestation legislation adopted in Brussels earlier this year will impose considerable administrative burdens on palm oil exporters wanting to sell their goods in the bloc.
The new rules aim to remove deforestation from the supply chains of a range of everyday items sold in the EU, including palm oil.
Malaysia and neighboring Indonesia, the world's two largest palm oil producers, have reacted angrily to what they perceive as European protectionism.
There are concerns that intended environmental benefits of EU legislation could be nullified if the two palm oil producers come to depend on China for their exports.
Palm oil boost for China
Investment deals between Malaysia and China to the tune of €3.9 billion ($4.1 billion) were inked earlier this month at the China-ASEAN Expo. DW
---------
Indonesia Threatens Legal Action Against Palm Oil Companies For Illegal Land Use
26-9-2023 (JAKARTA) The Indonesian government has issued a warning to palm oil companies that fail to submit the necessary paperwork related to land use. Senior minister Mahfud MD announced on Tuesday that if these companies do not comply by November, legal action will be taken against them.
Earlier this year, Indonesia identified approximately 3.3 million hectares (8.1 million acres) of palm oil plantations located in areas designated as forests. This illegal use of land has resulted in significant losses amounting to 42 trillion rupiah for the Indonesian economy, according to Mahfud.
“If they violate the rules and refuse to cooperate within the given timeframe, legal action will be taken in November,” stated Mahfud.
In accordance with a 2020 law, plantations situated within Indonesia’s forest areas can be deemed legal if they meet certain requirements and pay fines. The ASEAN Daily
---------
PASPI Proposes Revision of ISPO Presidential Decree in Accordance with UN Sustainability
JAKARTA, SAWIT INDONESIA – PalmOil Agribusiness Strategic Policy Institute (PASPI) asks the government to carry out a comprehensive revision of Presidential Regulation (Perpres) no. 44 of 2020 concerning the Indonesian Sustainable Palm Oil Plantation Certification System. In these regulations, Indonesian Sustainable Palm Oil Plantation Certification (ISPO) must follow the sustainability paradigm adopted by the United Nations, namely the Sustainable Development Goals (SDGs) which were adopted by all UN members since 2015.
PASPI Executive Director Tungkot Sipayung said that the SDGs sustainability concept is a concept of relative sustainability, not absolute sustainability. Meanwhile, the current ISPO adheres to the concept of absolute sustainability, namely sustainable or unsustainable.
"This is not realistic so it needs to be changed to a relative sustainability concept that is realistic, objective and honest. No one knows what absolute sustainability looks like. Absolute sustainability only exists in text books, the world of theory and does not exist in the real world. "Market realities (consumers) for palm oil/its derivative products throughout the world differ in their demands for the degree of sustainability," said Tungkot when contacted, Tuesday (26/9/2023). Sawit Indonesia
---------
The True Impact of Palm Oil: Land Use and Consumer Awareness Revealed
Palm oil is the world’s most produced and consumed vegetable oil, but replacing it with rapeseed oil would require a significant increase in land use. A study conducted in Germany found that consumers struggle to understand the consequences of their buying choices, even with extra information provided. The study also revealed that product information and labeling can be confusing and misleading for consumers. Customers are often attracted to products labeled as “free from palm oil.”
Palm oil is the most produced and consumed vegetable oil globally.
Replacing palm oil with rapeseed oil would require a four to five-fold increase in land use.
Consumers find it difficult to understand the consequences of their buying choices, even with extra information.
Product information and labeling can be confusing and misleading for consumers.
Is There More to Palm Oil Than Deforestation?
The study conducted in Germany investigated consumer attitudes towards palm oil and its environmental impact. It found that consumers struggle to fully understand the consequences of their buying choices, even when provided with extra information. Bolly Inside
|
|
|
September 25, 2023
President Jokowi Approves Changes to ISPO Presidential Decree, Here Are Three Considerations
JAKARTA, SAWIT INDONESIA – The government is planning to replace Presidential Regulation (Perpres) Number 44 of 2020 concerning the Indonesian Sustainable Palm Oil Plantation Certification System. This new regulation is planned to cover the upstream to downstream and bioenergy sectors to implement ISPO certification.
"In line with the dynamics of increasing consumer demands for sustainable and environmentally friendly palm oil and its derivative products. "So an ISPO certification system is needed in the downstream sector, this is very important and is also a follow-up to the direction of the President (Joko Widodo)," said Acting Deputy for Food and Agribusiness Coordination at the Indonesian Coordinating Ministry for the Economy, Dida Gardera, in the Public Consultation on the Draft Amendment to the ISPO Presidential Decree, in Jakarta, Wednesday (20 September 2023).
Dida Gardera said that the Indonesian Coordinating Ministry for the Economy had sent a letter to the President of the Republic of Indonesia Joko Widodo regarding changes to Presidential Decree 44/2020 regarding ISPO on January 31 2023. There are three reasons for changes to the ISPO Presidential Decree; First, palm oil certification must reach the palm oil supply chain, including downstream products. Second, related to improving and restructuring the ISPO institution so that its credibility can be recognized by other countries and international organizations.
"The third aspect relates to the reformulation of ISPO certification financing so that there is clarity," he explained. Sawit Indonesia
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New EU sustainability rules will impact ASEAN industries
The Corporate Sustainability Reporting Directive, as well as the upcoming Corporate Sustainability Due Diligence Directive, are the most comprehensive measures imposed by the EU regarding trade and the environment so far.
JAKARTA – Two recent developments in the European Union will affect ASEAN, namely the Corporate Sustainability Reporting Directive (CSRD) and the draft of Corporate Sustainability Due Diligence Directive (CSDD). There is a criterion within both of these those directives that requires non-EU companies to comply with EU conditions.
The CSRD has been in force since January of this year while the CSDD, if passed, may come into effect in 2025.
The CSRD requires companies to report on their sustainability performance, including their social and environmental impacts. Meanwhile, the CSDD obliges companies to conduct due diligence toward their environmental and human rights impacts. As such, the two documents are highly interlinked; the due diligence processes introduced by the CSDD are expected to inform the sustainability reporting required by the CSRD.
Under CSRD, non-EU companies may be required to disclose detailed sustainability information that concerns both internal and external impacts and should therefore involve not only the company’s perspective but also the perspectives of its stakeholders and the world at large through “double materiality”.
The European Financial Reporting Advisory Group (EFRAG) is still discussing how to conduct assessments, including on double materiality, under CSRD. Asia News
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Malaysia Boosts China Palm Oil Exports Under EU Pressure
Malaysia will increase palm oil exports to China by 500,000 tons a year as it faces pressure from new European Union restrictions targeting deforestation, a senior minister told AFP on Monday. The trading bloc introduced new rules this year that ban goods from land that has been deforested, throwing its muscle into the fight against climate change and environmental destruction. Palm oil is blamed by environmentalists for fuelling the destruction of rainforests in Malaysia and Indonesia, which together produce 85 percent of global output.
But the EU rules have been highly controversial in producer countries, with both Malaysia and Indonesia protesting the move. AFP/Barrons
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Deputy Minister of Plantation and Commodities Siti Aminah Aching said Malaysian companies, therefore, are encouraged to export finished products as compared with palm oil commodities.
KUALA LUMPUR: The country’s palm oil industry is encouraged to explore and expand into niche markets to capture higher market value and targeted coverage.
Deputy Minister of Plantation and Commodities Siti Aminah Aching said Malaysian companies, therefore, are encouraged to export finished products as compared with palm oil commodities. The Sun Daily
President Jokowi Approves Changes to ISPO Presidential Decree, Here Are Three Considerations
JAKARTA, SAWIT INDONESIA – The government is planning to replace Presidential Regulation (Perpres) Number 44 of 2020 concerning the Indonesian Sustainable Palm Oil Plantation Certification System. This new regulation is planned to cover the upstream to downstream and bioenergy sectors to implement ISPO certification.
"In line with the dynamics of increasing consumer demands for sustainable and environmentally friendly palm oil and its derivative products. "So an ISPO certification system is needed in the downstream sector, this is very important and is also a follow-up to the direction of the President (Joko Widodo)," said Acting Deputy for Food and Agribusiness Coordination at the Indonesian Coordinating Ministry for the Economy, Dida Gardera, in the Public Consultation on the Draft Amendment to the ISPO Presidential Decree, in Jakarta, Wednesday (20 September 2023).
Dida Gardera said that the Indonesian Coordinating Ministry for the Economy had sent a letter to the President of the Republic of Indonesia Joko Widodo regarding changes to Presidential Decree 44/2020 regarding ISPO on January 31 2023. There are three reasons for changes to the ISPO Presidential Decree; First, palm oil certification must reach the palm oil supply chain, including downstream products. Second, related to improving and restructuring the ISPO institution so that its credibility can be recognized by other countries and international organizations.
"The third aspect relates to the reformulation of ISPO certification financing so that there is clarity," he explained. Sawit Indonesia
---------
New EU sustainability rules will impact ASEAN industries
The Corporate Sustainability Reporting Directive, as well as the upcoming Corporate Sustainability Due Diligence Directive, are the most comprehensive measures imposed by the EU regarding trade and the environment so far.
JAKARTA – Two recent developments in the European Union will affect ASEAN, namely the Corporate Sustainability Reporting Directive (CSRD) and the draft of Corporate Sustainability Due Diligence Directive (CSDD). There is a criterion within both of these those directives that requires non-EU companies to comply with EU conditions.
The CSRD has been in force since January of this year while the CSDD, if passed, may come into effect in 2025.
The CSRD requires companies to report on their sustainability performance, including their social and environmental impacts. Meanwhile, the CSDD obliges companies to conduct due diligence toward their environmental and human rights impacts. As such, the two documents are highly interlinked; the due diligence processes introduced by the CSDD are expected to inform the sustainability reporting required by the CSRD.
Under CSRD, non-EU companies may be required to disclose detailed sustainability information that concerns both internal and external impacts and should therefore involve not only the company’s perspective but also the perspectives of its stakeholders and the world at large through “double materiality”.
The European Financial Reporting Advisory Group (EFRAG) is still discussing how to conduct assessments, including on double materiality, under CSRD. Asia News
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Malaysia Boosts China Palm Oil Exports Under EU Pressure
Malaysia will increase palm oil exports to China by 500,000 tons a year as it faces pressure from new European Union restrictions targeting deforestation, a senior minister told AFP on Monday. The trading bloc introduced new rules this year that ban goods from land that has been deforested, throwing its muscle into the fight against climate change and environmental destruction. Palm oil is blamed by environmentalists for fuelling the destruction of rainforests in Malaysia and Indonesia, which together produce 85 percent of global output.
But the EU rules have been highly controversial in producer countries, with both Malaysia and Indonesia protesting the move. AFP/Barrons
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Deputy Minister of Plantation and Commodities Siti Aminah Aching said Malaysian companies, therefore, are encouraged to export finished products as compared with palm oil commodities.
KUALA LUMPUR: The country’s palm oil industry is encouraged to explore and expand into niche markets to capture higher market value and targeted coverage.
Deputy Minister of Plantation and Commodities Siti Aminah Aching said Malaysian companies, therefore, are encouraged to export finished products as compared with palm oil commodities. The Sun Daily
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September 22, 2023
CCC called for informed decision-making to counter negative palm oil perception
KUALA LUMPUR: Consumers must empower themselves with accurate and comprehensive information before forming opinions about everyday products like palm oil, said a non-profit consumer advocacy group.
The Consumer Choice Center (CCC) representative Tarmizi Anuwar said consumers and industries alike must also be diligent in 'cutting through the noise' to reveal the true value of products.
"In this era of quick judgments, both sectors have a responsibility to maintain credibility to avoid false allegations from preceding factual information," he said in a statement.
Tarmizi was commenting on a recent article in Berita Harian by Dr Roger Clemens, highlighting the misunderstandings and misinformation surrounding palm oil.
"Palm oil is a staple in drug development, vital for medical advances, and a case study in the growing need for sustainable practices.
"However, the story around palm oil today is rife with misinformation and false allegations. New Straits Times
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Fact Check: Is palm oil a leading cause for heart attacks in India?
Fact Checked By Garima Dev Verman
Does palm oil cause heart attacks?
Not really. Palm oil when consumed in moderation as part of a balanced diet, is not directly linked to causing heart attacks. However, diets high in saturated fats, including palm oil, can contribute to elevated cholesterol levels, which are a risk factor for heart disease. It's essential to consume palm oil and other saturated fats in moderation and prioritise a heart-healthy diet rich in fruits, vegetables, whole grains, and lean proteins to reduce the risk of heart attacks.
An influencer’s post on LinkedIn claims that palm oil is in everything in India and is the reason for heart attacks in Indians. We fact checked it and found this claim to be Mostly False.
The ClaimAn account with the name Revant Himatsingka (Food Pharmer) posted a video om LinkedIn with a caption saying that” One of the reasons behind heart attack in India is high consumption of palm oil’. The video shared on LinkedIn suggests that palm oil is extensively utilized in India, and the accompanying caption implies that elevated consumption of palm oil is one of the contributing factors to heart attacks. The Healthy Indian Project
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Biden's IRA drives surge in US imports of Chinese used cooking oil
BEIJING, Sept 22 (Reuters) - U.S. incentives to boost consumption of more environmentally friendly fuel has created a new market for used Chinese cooking oil, worth almost $390 million in the last 12 months and growing rapidly, China's customs data shows.
China has been shipping more waste oil to the U.S. since October 2022, two months after the Biden administration passed the Inflation Reduction Act (IRA) to promote clean energy, which included tax credits for production of sustainable aviation fuel (SAF) and extended incentives for biodiesel.
In the first eight months of 2023, Chinese exports of used cooking oil (UCO) to the U.S. totalled almost 384,000 metric tons, customs data shows. That accounted for around 65% of U.S. imports through August, data from shiptracking firm Kpler showed.
Used cooking oil can be refined into fuels such as biodiesel and SAF, which can be blended with conventional fuels to reduce carbon emissions. It is also a feedstock for renewable diesel, which is chemically equivalent to petroleum-based diesel. Reuters
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Malaysian Minister to Visit India To Strengthen Bilaterial Ties Collaborate in Plantations and Commodities Sector
KUALA LUMPUR: Plantation and Commodities Minister and Deputy Prime Minister Datuk Seri Fadillah Yusof is scheduled to embark on an official visit to India from Sept 24 to 28, 2023.
In a statement today, the Ministry of Plantation and Commodities said the visit is to strengthen bilateral ties and explore opportunities for collaboration in the plantation and commodities sector between both nations.
The visit will also encompass a series of high-level meetings with key government officials and other relevant stakeholders, focusing on discussions regarding trade, agriculture, food security and safety.
“One of the highlights of the visit will be engagements with the Telangana state government and the Telangana oil palm farmers and smallholders.
“This engagement will discuss various collaboration and cooperation opportunities as well as market access for Malaysian palm oil in the region,” the ministry said.
Fadillah will be accompanied by a high-level delegation, including representatives from the Malaysian Palm Oil Board, Malaysian Palm Oil Council, Malaysian Rubber Board and Federal Land Development Authority (Felda). The Sun Daily
CCC called for informed decision-making to counter negative palm oil perception
KUALA LUMPUR: Consumers must empower themselves with accurate and comprehensive information before forming opinions about everyday products like palm oil, said a non-profit consumer advocacy group.
The Consumer Choice Center (CCC) representative Tarmizi Anuwar said consumers and industries alike must also be diligent in 'cutting through the noise' to reveal the true value of products.
"In this era of quick judgments, both sectors have a responsibility to maintain credibility to avoid false allegations from preceding factual information," he said in a statement.
Tarmizi was commenting on a recent article in Berita Harian by Dr Roger Clemens, highlighting the misunderstandings and misinformation surrounding palm oil.
"Palm oil is a staple in drug development, vital for medical advances, and a case study in the growing need for sustainable practices.
"However, the story around palm oil today is rife with misinformation and false allegations. New Straits Times
---------
Fact Check: Is palm oil a leading cause for heart attacks in India?
Fact Checked By Garima Dev Verman
Does palm oil cause heart attacks?
Not really. Palm oil when consumed in moderation as part of a balanced diet, is not directly linked to causing heart attacks. However, diets high in saturated fats, including palm oil, can contribute to elevated cholesterol levels, which are a risk factor for heart disease. It's essential to consume palm oil and other saturated fats in moderation and prioritise a heart-healthy diet rich in fruits, vegetables, whole grains, and lean proteins to reduce the risk of heart attacks.
An influencer’s post on LinkedIn claims that palm oil is in everything in India and is the reason for heart attacks in Indians. We fact checked it and found this claim to be Mostly False.
The ClaimAn account with the name Revant Himatsingka (Food Pharmer) posted a video om LinkedIn with a caption saying that” One of the reasons behind heart attack in India is high consumption of palm oil’. The video shared on LinkedIn suggests that palm oil is extensively utilized in India, and the accompanying caption implies that elevated consumption of palm oil is one of the contributing factors to heart attacks. The Healthy Indian Project
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Biden's IRA drives surge in US imports of Chinese used cooking oil
BEIJING, Sept 22 (Reuters) - U.S. incentives to boost consumption of more environmentally friendly fuel has created a new market for used Chinese cooking oil, worth almost $390 million in the last 12 months and growing rapidly, China's customs data shows.
China has been shipping more waste oil to the U.S. since October 2022, two months after the Biden administration passed the Inflation Reduction Act (IRA) to promote clean energy, which included tax credits for production of sustainable aviation fuel (SAF) and extended incentives for biodiesel.
In the first eight months of 2023, Chinese exports of used cooking oil (UCO) to the U.S. totalled almost 384,000 metric tons, customs data shows. That accounted for around 65% of U.S. imports through August, data from shiptracking firm Kpler showed.
Used cooking oil can be refined into fuels such as biodiesel and SAF, which can be blended with conventional fuels to reduce carbon emissions. It is also a feedstock for renewable diesel, which is chemically equivalent to petroleum-based diesel. Reuters
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Malaysian Minister to Visit India To Strengthen Bilaterial Ties Collaborate in Plantations and Commodities Sector
KUALA LUMPUR: Plantation and Commodities Minister and Deputy Prime Minister Datuk Seri Fadillah Yusof is scheduled to embark on an official visit to India from Sept 24 to 28, 2023.
In a statement today, the Ministry of Plantation and Commodities said the visit is to strengthen bilateral ties and explore opportunities for collaboration in the plantation and commodities sector between both nations.
The visit will also encompass a series of high-level meetings with key government officials and other relevant stakeholders, focusing on discussions regarding trade, agriculture, food security and safety.
“One of the highlights of the visit will be engagements with the Telangana state government and the Telangana oil palm farmers and smallholders.
“This engagement will discuss various collaboration and cooperation opportunities as well as market access for Malaysian palm oil in the region,” the ministry said.
Fadillah will be accompanied by a high-level delegation, including representatives from the Malaysian Palm Oil Board, Malaysian Palm Oil Council, Malaysian Rubber Board and Federal Land Development Authority (Felda). The Sun Daily
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MPOC Europe Alert No. 43
21 September 2023
EU legislators reach political agreement on the EU’s proposed Directive as regards empowering consumers for the green transition
On 20 September 2023, the European Commission, the European Parliament, and the Council of the EU reached provisional agreement on the European Commission’s Proposal for a Directive as regards Empowering Consumers for the Green Transition. The Proposal had been published on 30 March 2022 and foresees to amend the EU’s Unfair Commercial Practices Directive (UCPD) as well as the EU’s Consumer Rights Directive (CRD) with the objective of enhancing consumers’ rights and curbing unfair commercial practices.
The proposed Directive would aim at addressing, inter alia, misleading environmental claims known as ‘greenwashing’ and early obsolescence of products. Notably, the Council stated that the agreed text “improves the credibility of sustainability labels by defining the key elements of the certification scheme they have to be based on unless established by public authorities”. The agreed text further foresees measures aimed at increasing transparency of environmental performance claims and banning practices related to greenhouse gas emissions offsetting.
In addition, the future rules will ban specific misleading marketing practices. Generic environmental claims, such as “environmentally friendly”, “natural”, and “biodegradable” must not be used “without proof of recognised excellent environmental performance relevant to the claim”. The provisional agreement also addresses misleading claims regarding durability, consumable replacements, software updates, and false representations of repairability.
The provisional agreement still needs to be officially adopted by the European Parliament and the Council before it can enter into force. EU Member States will then have 24 months to transpose the Directive into national law. A separate legislative Proposal on ‘Green Claims’, published by the Commission in March 2023, foresees to include certain “generic environmental claims” in the list of unfair commercial practices and would further regulate the substantiation of ‘Green Claims’.
Possible actions: The Directive as regards Empowering Consumers for the Green Transition lays the foundations for the ‘Green Claims’ Directive that will “further specify the conditions for making environmental claims”. EU rules on generic and unsubstantiated environmental claims could be an important ground to challenge the ‘palm oil-free’ and ‘no palm oil’ claims. Malaysia should support these legislative initiatives and engage with EU Member States’ regulators to ensure that the new rules, once in force, are swiftly implemented and systematically enforced. MPOC EU
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Vietnam's cashew 'capital' takes action to comply with EU's anti-deforestation regulations
Binh Phuoc Province, dubbed as Vietnam's "capital" of cashew and rubber trees, has issued a document on the implementation of an action plan framework in response to the European Union Deforestation-Free Regulation (EUDR).
The regulation, approved by the European Commission (EC) on May 16, 2023, is the latest by the EU regarding green, sustainable development, specifically deforestation-free agricultural products.
It sets mandatory due diligence rules for all operators and traders who place, make available or export the following commodities from the EU market: palm oil, cattle, wood, coffee, cocoa, rubber and soy.
The rules also apply to a number of derived products such as chocolate, furniture, printed paper, and selected palm oil-based derivatives (used for example as components in personal care products).
They will be applicable to most companies from December 2024. Micro-enterprises and small-medium enterprises would have an additional six months to comply with the regulation's requirements.
Binh Phuoc's key products like rubber, cashew nuts, coffee, pepper, durian, and wood and wood products are expected to be impacted by the requirements.
Under the document, the chairwoman of the provincial People's Committee Tran Tue Hien asked relevant agencies, localities, organizations and individuals to closely monitor risk-prone areas, and step up inspections over forest protection. VN Express
21 September 2023
EU legislators reach political agreement on the EU’s proposed Directive as regards empowering consumers for the green transition
On 20 September 2023, the European Commission, the European Parliament, and the Council of the EU reached provisional agreement on the European Commission’s Proposal for a Directive as regards Empowering Consumers for the Green Transition. The Proposal had been published on 30 March 2022 and foresees to amend the EU’s Unfair Commercial Practices Directive (UCPD) as well as the EU’s Consumer Rights Directive (CRD) with the objective of enhancing consumers’ rights and curbing unfair commercial practices.
The proposed Directive would aim at addressing, inter alia, misleading environmental claims known as ‘greenwashing’ and early obsolescence of products. Notably, the Council stated that the agreed text “improves the credibility of sustainability labels by defining the key elements of the certification scheme they have to be based on unless established by public authorities”. The agreed text further foresees measures aimed at increasing transparency of environmental performance claims and banning practices related to greenhouse gas emissions offsetting.
In addition, the future rules will ban specific misleading marketing practices. Generic environmental claims, such as “environmentally friendly”, “natural”, and “biodegradable” must not be used “without proof of recognised excellent environmental performance relevant to the claim”. The provisional agreement also addresses misleading claims regarding durability, consumable replacements, software updates, and false representations of repairability.
The provisional agreement still needs to be officially adopted by the European Parliament and the Council before it can enter into force. EU Member States will then have 24 months to transpose the Directive into national law. A separate legislative Proposal on ‘Green Claims’, published by the Commission in March 2023, foresees to include certain “generic environmental claims” in the list of unfair commercial practices and would further regulate the substantiation of ‘Green Claims’.
Possible actions: The Directive as regards Empowering Consumers for the Green Transition lays the foundations for the ‘Green Claims’ Directive that will “further specify the conditions for making environmental claims”. EU rules on generic and unsubstantiated environmental claims could be an important ground to challenge the ‘palm oil-free’ and ‘no palm oil’ claims. Malaysia should support these legislative initiatives and engage with EU Member States’ regulators to ensure that the new rules, once in force, are swiftly implemented and systematically enforced. MPOC EU
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Vietnam's cashew 'capital' takes action to comply with EU's anti-deforestation regulations
Binh Phuoc Province, dubbed as Vietnam's "capital" of cashew and rubber trees, has issued a document on the implementation of an action plan framework in response to the European Union Deforestation-Free Regulation (EUDR).
The regulation, approved by the European Commission (EC) on May 16, 2023, is the latest by the EU regarding green, sustainable development, specifically deforestation-free agricultural products.
It sets mandatory due diligence rules for all operators and traders who place, make available or export the following commodities from the EU market: palm oil, cattle, wood, coffee, cocoa, rubber and soy.
The rules also apply to a number of derived products such as chocolate, furniture, printed paper, and selected palm oil-based derivatives (used for example as components in personal care products).
They will be applicable to most companies from December 2024. Micro-enterprises and small-medium enterprises would have an additional six months to comply with the regulation's requirements.
Binh Phuoc's key products like rubber, cashew nuts, coffee, pepper, durian, and wood and wood products are expected to be impacted by the requirements.
Under the document, the chairwoman of the provincial People's Committee Tran Tue Hien asked relevant agencies, localities, organizations and individuals to closely monitor risk-prone areas, and step up inspections over forest protection. VN Express
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September 20, 2023
Sustainable investing that goes beyond divestment or engagement does most
New research shows tactics like getting the attention of larger investors and pressuring companies to do better than their competitors can have the most impact.
In the sustainable investing world, motivating companies to do better has happened through two basic strategies: divestment and engagement — and new research shows that using elements of both can accomplish the most.
That won’t be news to investment providers and advocacy groups that specialize in sustainable investing — some have spent decades refining ways to prod corporations into action, whether that’s improving environmental practices or treating workers more equitably. But to asset managers that offer only a taste of sustainable options, or for investors just getting started on ESG, the findings could provide a road map.
The paper, The Impact of Sustainable Investing: A Multidisciplinary Review, was published in the Journal of Management Studies. The authors outline what they call “field building,” a combination of strategies to improve sustainability by using elements of portfolio screening and shareholder engagement.
“Field building means that investors influence companies by changing the (1) stakeholders and (2) assumptions, norms and rules that surround companies, thereby exerting their influence on companies indirectly,” the authors wrote in an overview of their research in the Harvard Business Review. Investment News
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Sustainability Is Disrupting the Toilet Paper and Tissue Market, Finds NRDC’s “Issue with Tissue” 2023 Report & Scorecard
Half of Top-Ranked Brands in NRDC’s Report Launched in the Past 5 Years. Meanwhile, P&G’s Charmin Is Still Bringing Up the Rear & Gets “F” Grade
WASHINGTON – NRDC (Natural Resources Defense Council) today released the fifth edition of its Issue with Tissue report and sustainability scorecard (grading at-home toilet paper brands from “A+” to “F”). Large volumes of pulp from Canada’s climate-critical boreal forest are used to make toilet paper – the ultimate disposable product. Since NRDC started scoring tissue brands in 2019, increased consumer awareness has led investors, retailers, and consumers to push the toilet paper and tissue market to embrace solutions for greater forest protection in the face of extensive clearcutting, wildfires, and habitat loss.
“Sustainability is proving to be a disruptive force in the toilet paper and tissue market. Half the toilet paper brands that received A and B grades in NRDC’s 2023 Issue with Tissue scorecard launched within the past five years,” said Ashley Jordan, NRDC’s Boreal Corporate Campaign Advocate. “Embracing transformative innovation remains not only a vital step toward creating a more forest-friendly and climate-safe economy–it’s essential for companies like P&G to stay competitive in an increasingly sustainability-conscious marketplace.”
The top three major American tissue makers—P&G, Kimberly-Clark, and Georgia-Pacific—earned “F” scores across each of their flagship brands like Charmin, Cottonelle, and Quilted Northern across all five editions of NRDC’s Issue with Tissue scorecard.
P&G has a particularly egregious record on sustainable tissue sourcing. In 2020, shareholders passed a landmark resolution directing the company to report on if and how it can eliminate deforestation and forest degradation from its supply chains. Despite this clear order from two-thirds of voting. NRDC
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Companies Might Be Forced to Report Their Impact on Nature. A New Framework Aims to Help.
Reporting biodiversity impact is complicated. A U.N. task force is looking to help businesses boost transparency and act to mitigate risks and support nature.
New nature-reporting recommendations aim to help companies assess their impact on and risks from the world’s natural systems. It could become mandatory one day, much as the climate framework it builds upon.
The Taskforce on Nature-Related Financial Disclosures, or TNFD, on Monday issued its final reporting framework, which aims to make it easier for companies to identify their impact on nature, and take action to mitigate it. The recommendations were developed over the last 18 months through a series of consultations with corporate stakeholders, and cover issues including deforestation, pollution, water stress and overfarming.
The task force—a market-led effort to protect biodiversity but funded by the United Nations—builds on a similar framework for climate emissions, the Task Force on Climate-Related Financial Disclosures, which was created in 2015 and eventually used in developing standards for mandatory climate reporting.
“Nature risk is financial risk,” said Elizabeth Mrema, co-chair of TNFD. Some $44 trillion of global economic value is moderately or highly dependent on nature, according to the World Economic Forum, while the World Bank has warned that the collapse of natural systems could wipe $2.7 trillion a year from the global economy by 2030. WSJ
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Indonesia to Accelerate Smallholders` Palm Oil Replanting Program
TEMPO.CO, Jakarta - Plantation DG at the Ministry of Agriculture Andi Nur Alamsyah stated that the national palm oil productivity only reached 3 to 4 million tonnes per hectare. Thus, the government intends to push for the smallholders' palm oil replanting program (PSR).
"With no innovation to boost palm oil productivity, the future of this industry is threatened," he said as quoted from a press release on Monday, September 18, 2023.
Currently, palm oil farmers only dominate 42% of the Indonesian palm oil industry. This created a huge gap in productivity between palm oil companies and local farmers. Thus the government will accelerate the PSR through the partnership program. "I hope palm oil companies could provide technology transfer, cultivation knowledge, market access, and mapping to smallholders," Andi said. Tempo
Sustainable investing that goes beyond divestment or engagement does most
New research shows tactics like getting the attention of larger investors and pressuring companies to do better than their competitors can have the most impact.
In the sustainable investing world, motivating companies to do better has happened through two basic strategies: divestment and engagement — and new research shows that using elements of both can accomplish the most.
That won’t be news to investment providers and advocacy groups that specialize in sustainable investing — some have spent decades refining ways to prod corporations into action, whether that’s improving environmental practices or treating workers more equitably. But to asset managers that offer only a taste of sustainable options, or for investors just getting started on ESG, the findings could provide a road map.
The paper, The Impact of Sustainable Investing: A Multidisciplinary Review, was published in the Journal of Management Studies. The authors outline what they call “field building,” a combination of strategies to improve sustainability by using elements of portfolio screening and shareholder engagement.
“Field building means that investors influence companies by changing the (1) stakeholders and (2) assumptions, norms and rules that surround companies, thereby exerting their influence on companies indirectly,” the authors wrote in an overview of their research in the Harvard Business Review. Investment News
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Sustainability Is Disrupting the Toilet Paper and Tissue Market, Finds NRDC’s “Issue with Tissue” 2023 Report & Scorecard
Half of Top-Ranked Brands in NRDC’s Report Launched in the Past 5 Years. Meanwhile, P&G’s Charmin Is Still Bringing Up the Rear & Gets “F” Grade
WASHINGTON – NRDC (Natural Resources Defense Council) today released the fifth edition of its Issue with Tissue report and sustainability scorecard (grading at-home toilet paper brands from “A+” to “F”). Large volumes of pulp from Canada’s climate-critical boreal forest are used to make toilet paper – the ultimate disposable product. Since NRDC started scoring tissue brands in 2019, increased consumer awareness has led investors, retailers, and consumers to push the toilet paper and tissue market to embrace solutions for greater forest protection in the face of extensive clearcutting, wildfires, and habitat loss.
“Sustainability is proving to be a disruptive force in the toilet paper and tissue market. Half the toilet paper brands that received A and B grades in NRDC’s 2023 Issue with Tissue scorecard launched within the past five years,” said Ashley Jordan, NRDC’s Boreal Corporate Campaign Advocate. “Embracing transformative innovation remains not only a vital step toward creating a more forest-friendly and climate-safe economy–it’s essential for companies like P&G to stay competitive in an increasingly sustainability-conscious marketplace.”
The top three major American tissue makers—P&G, Kimberly-Clark, and Georgia-Pacific—earned “F” scores across each of their flagship brands like Charmin, Cottonelle, and Quilted Northern across all five editions of NRDC’s Issue with Tissue scorecard.
P&G has a particularly egregious record on sustainable tissue sourcing. In 2020, shareholders passed a landmark resolution directing the company to report on if and how it can eliminate deforestation and forest degradation from its supply chains. Despite this clear order from two-thirds of voting. NRDC
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Companies Might Be Forced to Report Their Impact on Nature. A New Framework Aims to Help.
Reporting biodiversity impact is complicated. A U.N. task force is looking to help businesses boost transparency and act to mitigate risks and support nature.
New nature-reporting recommendations aim to help companies assess their impact on and risks from the world’s natural systems. It could become mandatory one day, much as the climate framework it builds upon.
The Taskforce on Nature-Related Financial Disclosures, or TNFD, on Monday issued its final reporting framework, which aims to make it easier for companies to identify their impact on nature, and take action to mitigate it. The recommendations were developed over the last 18 months through a series of consultations with corporate stakeholders, and cover issues including deforestation, pollution, water stress and overfarming.
The task force—a market-led effort to protect biodiversity but funded by the United Nations—builds on a similar framework for climate emissions, the Task Force on Climate-Related Financial Disclosures, which was created in 2015 and eventually used in developing standards for mandatory climate reporting.
“Nature risk is financial risk,” said Elizabeth Mrema, co-chair of TNFD. Some $44 trillion of global economic value is moderately or highly dependent on nature, according to the World Economic Forum, while the World Bank has warned that the collapse of natural systems could wipe $2.7 trillion a year from the global economy by 2030. WSJ
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Indonesia to Accelerate Smallholders` Palm Oil Replanting Program
TEMPO.CO, Jakarta - Plantation DG at the Ministry of Agriculture Andi Nur Alamsyah stated that the national palm oil productivity only reached 3 to 4 million tonnes per hectare. Thus, the government intends to push for the smallholders' palm oil replanting program (PSR).
"With no innovation to boost palm oil productivity, the future of this industry is threatened," he said as quoted from a press release on Monday, September 18, 2023.
Currently, palm oil farmers only dominate 42% of the Indonesian palm oil industry. This created a huge gap in productivity between palm oil companies and local farmers. Thus the government will accelerate the PSR through the partnership program. "I hope palm oil companies could provide technology transfer, cultivation knowledge, market access, and mapping to smallholders," Andi said. Tempo
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September 18, 2023
Indonesia-European Union Sustainability Demands Are Unrealistic, PASPI
The European Union demands absolute palm oil sustainability practices. In reality, demands are difficult to implement in the real world. As a result, palm oil faces competition from price (price competition) to non-price competition.
This was conveyed by the Chairman of the Board of Trustees of the Palm Oil Agribusiness Strategic Policy Institute (PASPI) Prof. Bungaran Saragih in Palm Oil Advocacy and Palm Oil Myths vs Facts Book Launch which was held in Jakarta, Monday (14/8/2023). This activity was held by PASPI and the Palm Oil Plantation Fund Management Agency (BPDPKS), and supported by Indonesian Palm Oil Magazine.
Bungaran explained that if the negative perception towards palm oil continues, it will risk the fate of around IDR 1,600 trillion in value of national oil palm plantation assets and more than IDR 1,000 trillion in value of downstream palm oil industry assets.
"Let's not risk the future of 2.5 million palm oil farming households and 17 million workers," said Bungaran in his presentation.
He stated that the impact of the palm oil industry is undoubtedly huge on the national economy. State revenues reached US$50 billion, sourced from palm oil exports of US$39 billion and foreign exchange savings from mandatory biodiesel of US$10.3 billion.
He said that the palm oil industry had contributed greatly to creating the trade balance surplus Indonesia had enjoyed in the last three years, especially during the Covid-19 pandemic. "Palm palm was one of the saviors of the Indonesian economy during the last Covid," he said. Sawit Indonesia
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Malaysia to double palm oil exports to China, dodge EU restrictions
The two Asian nations sign infrastructure investment deals worth $4.2bn
KUALA LUMPUR -- Malaysia says it will double palm oil exports to China to half a million tonnes annually as the Southeast Asian nation moves against European restrictions on a commodity used in everything from cookies to cosmetics.
The plan was made public on Sunday at the 20th China-ASEAN Expo in the southern Chinese city of Nanning, where representatives of the countries signed investment deals worth 19.84 billion ringgit ($4.23 billion) to develop warehousing, logistics and waste-to-energy power plants in Malaysia.
Among the deals is a 2.5 billion-ringgit memorandum of understanding (MOU) between Malaysia's state-owned Sime Darby Oils International and GuangXi Beibu Gulf International Port Group, which will build a trading and distribution center for refined palm oil in the Chinese city of Qinzhou. The facility will have an annual transaction volume of 500,000 tonnes to meet growing demand across the country.
China is among the top importers of palm oil from Malaysia -- the world's second-biggest producer -- alongside India, Turkey, Kenya and Japan.
Since 2009, China has been Malaysia's top trading partner. Last year, the Southeast Asian nation's exports to China grew 9.4% to 210.6 billion ringgit.
Also, the countries together have built joint industrial parks in both countries to boost ties.
China has moved to increase trade with Southeast Asia in the face of soaring tensions with the U.S. and other developed economies. Asia Nikkei
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Malaysia-Sime Darby Oils and Beibu Gulf Port Explore Opportunities for Palm Oil in Guangxi Region
Opportunities include trading and distribution of shortening and refined palm oil, among others, into China
Nanning, Guangxi China, 18 September 2023 - A memorandum of understanding (MOU) signed between Sime Darby Oils International Limited (SDO) and Guangxi Beibu Gulf International Port Group Ltd (BGP), underscores the companies’ intention to collaborate in three main areas:
Leveraging on the port, logistics, trade and other advantages of BGP in the Beibu Gulf Economic Region to explore the possibility of establishing a shortening trading distribution center in the Qinzhou Free Trade Zone of Guangxi Zhuang Autonomous Region in the People's Republic of China;
Utilising existing bonded warehouses as a refined palm oil trading and distribution center in the Qinzhou Free Trade Zone and applying to become the delivery warehouse of the Dalian Commodity Exchange. SDO and BGP also intend to fully utilise the preferential policies under Guangxi Free Trade Zone for the said refined palm oil trading and distribution center; and
Both companies are looking at marketing health products such as tocotrienol and red oil extracted from palm oil into the domestic market of the People’s Republic of China.
The MOU aspires for a combined target trading volume for shortening and refined palm oil of approximately 500,000 metric tons a year.
SDO’s Managing Director, Mohd Haris Mohd Arshad said, the collaboration presents an exciting opportunity for palm oil products from the company to be sold and distributed in major consumer areas in mainland China, such as South China, Southwest China, and Northwest China through the Qinzhou Port. China has a combined population of about 1.4 billion. SDO is a wholly-owned subsidiary of Sime Darby Plantation Berhad, the world’s largest producer of certified sustainable palm oil.
“With the growing demand for palm oil products and the increasing trade volumes between China and Malaysia, we anticipate that this partnership will promote growth of sustainable supply chain and spur greater demand for palm oil in China” Mohd Haris said. He added that a successful collaboration with BGP would be another milestone for SDO as it builds its position as the preferred supplier of certified-sustainable, high value palm oil products for the global market.
The MoU was signed by Mr. Amir Hamzah, SDO’s Head of Strategy and Business Development and Mr. Ma Zhengyou, BGP Group’s Vice President, and witnessed by Mr. Zhou Shaobo, the Chairman of BGP Group. Under the MoU, both companies intend to collaborate for a period of one year, after which an extension of the collaboration may be considered subject to mutual agreement. Sime Darby Plantation
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Indonesia-European Union Sustainability Demands Are Unrealistic, PASPI
The European Union demands absolute palm oil sustainability practices. In reality, demands are difficult to implement in the real world. As a result, palm oil faces competition from price (price competition) to non-price competition.
This was conveyed by the Chairman of the Board of Trustees of the Palm Oil Agribusiness Strategic Policy Institute (PASPI) Prof. Bungaran Saragih in Palm Oil Advocacy and Palm Oil Myths vs Facts Book Launch which was held in Jakarta, Monday (14/8/2023). This activity was held by PASPI and the Palm Oil Plantation Fund Management Agency (BPDPKS), and supported by Indonesian Palm Oil Magazine.
Bungaran explained that if the negative perception towards palm oil continues, it will risk the fate of around IDR 1,600 trillion in value of national oil palm plantation assets and more than IDR 1,000 trillion in value of downstream palm oil industry assets.
"Let's not risk the future of 2.5 million palm oil farming households and 17 million workers," said Bungaran in his presentation.
He stated that the impact of the palm oil industry is undoubtedly huge on the national economy. State revenues reached US$50 billion, sourced from palm oil exports of US$39 billion and foreign exchange savings from mandatory biodiesel of US$10.3 billion.
He said that the palm oil industry had contributed greatly to creating the trade balance surplus Indonesia had enjoyed in the last three years, especially during the Covid-19 pandemic. "Palm palm was one of the saviors of the Indonesian economy during the last Covid," he said. Sawit Indonesia
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Malaysia to double palm oil exports to China, dodge EU restrictions
The two Asian nations sign infrastructure investment deals worth $4.2bn
KUALA LUMPUR -- Malaysia says it will double palm oil exports to China to half a million tonnes annually as the Southeast Asian nation moves against European restrictions on a commodity used in everything from cookies to cosmetics.
The plan was made public on Sunday at the 20th China-ASEAN Expo in the southern Chinese city of Nanning, where representatives of the countries signed investment deals worth 19.84 billion ringgit ($4.23 billion) to develop warehousing, logistics and waste-to-energy power plants in Malaysia.
Among the deals is a 2.5 billion-ringgit memorandum of understanding (MOU) between Malaysia's state-owned Sime Darby Oils International and GuangXi Beibu Gulf International Port Group, which will build a trading and distribution center for refined palm oil in the Chinese city of Qinzhou. The facility will have an annual transaction volume of 500,000 tonnes to meet growing demand across the country.
China is among the top importers of palm oil from Malaysia -- the world's second-biggest producer -- alongside India, Turkey, Kenya and Japan.
Since 2009, China has been Malaysia's top trading partner. Last year, the Southeast Asian nation's exports to China grew 9.4% to 210.6 billion ringgit.
Also, the countries together have built joint industrial parks in both countries to boost ties.
China has moved to increase trade with Southeast Asia in the face of soaring tensions with the U.S. and other developed economies. Asia Nikkei
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Malaysia-Sime Darby Oils and Beibu Gulf Port Explore Opportunities for Palm Oil in Guangxi Region
Opportunities include trading and distribution of shortening and refined palm oil, among others, into China
Nanning, Guangxi China, 18 September 2023 - A memorandum of understanding (MOU) signed between Sime Darby Oils International Limited (SDO) and Guangxi Beibu Gulf International Port Group Ltd (BGP), underscores the companies’ intention to collaborate in three main areas:
Leveraging on the port, logistics, trade and other advantages of BGP in the Beibu Gulf Economic Region to explore the possibility of establishing a shortening trading distribution center in the Qinzhou Free Trade Zone of Guangxi Zhuang Autonomous Region in the People's Republic of China;
Utilising existing bonded warehouses as a refined palm oil trading and distribution center in the Qinzhou Free Trade Zone and applying to become the delivery warehouse of the Dalian Commodity Exchange. SDO and BGP also intend to fully utilise the preferential policies under Guangxi Free Trade Zone for the said refined palm oil trading and distribution center; and
Both companies are looking at marketing health products such as tocotrienol and red oil extracted from palm oil into the domestic market of the People’s Republic of China.
The MOU aspires for a combined target trading volume for shortening and refined palm oil of approximately 500,000 metric tons a year.
SDO’s Managing Director, Mohd Haris Mohd Arshad said, the collaboration presents an exciting opportunity for palm oil products from the company to be sold and distributed in major consumer areas in mainland China, such as South China, Southwest China, and Northwest China through the Qinzhou Port. China has a combined population of about 1.4 billion. SDO is a wholly-owned subsidiary of Sime Darby Plantation Berhad, the world’s largest producer of certified sustainable palm oil.
“With the growing demand for palm oil products and the increasing trade volumes between China and Malaysia, we anticipate that this partnership will promote growth of sustainable supply chain and spur greater demand for palm oil in China” Mohd Haris said. He added that a successful collaboration with BGP would be another milestone for SDO as it builds its position as the preferred supplier of certified-sustainable, high value palm oil products for the global market.
The MoU was signed by Mr. Amir Hamzah, SDO’s Head of Strategy and Business Development and Mr. Ma Zhengyou, BGP Group’s Vice President, and witnessed by Mr. Zhou Shaobo, the Chairman of BGP Group. Under the MoU, both companies intend to collaborate for a period of one year, after which an extension of the collaboration may be considered subject to mutual agreement. Sime Darby Plantation
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September 17, 2023
China will support Malaysia's New Industrial Master Plan, PM Anwar
NANNING: China will support Putrajaya's efforts to implement the New Industrial Master Plan (NIMP) 2030, says Prime Minister Datuk Seri Anwar Ibrahim (pic).
"China will support the Malaysian government to implement NIMP 2030," said Anwar in a press conference at Nanning Marriott Hotel on Sunday (Sept 17) after a bilateral meeting with Chinese Premier Li Qiang.
NIMP 2030 outlines plans to transform Malaysia into a high-tech nation in seven years' time, requiring a total investment of RM95bil.
According to Anwar, Li wants more Chinese companies to actively invest in Malaysia and emphasise on upskilling efforts.
"Their (Chinese companies) views about Malaysian professionals, engineers, technicians and IT experts are very good, as they are known for their dedication and discipline.
"Upskilling is crucial. Therefore, in meetings with the China Communications Construction Company (CCCC), Geely and Huawei, I stressed efforts to increase research and also special training programmes in Malaysia," said Anwar.
Anwar also among the highlights of the three MOUs worth a total of RM19.84bil signed with Chinese companies was the request to increase the purchase of palm oil from Malaysia by 500,000-tonnes. The StarMY
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Nigeria-Palm Oil Imports Negate Forex Gains from Cashew, Cocoa
September 17, (THEWILL) – Despite strict forex restrictions against palm oil, the commodity has remained a major foreign exchange consumer in the Nigerian merchandise trade, data by the National Bureau of Statistics (NBS) have shown.
THEWILL had tracked the trend in palm oil imports in recent times, which revealed continued increase in the shipment of the commodity into Nigeria, a country known for abundant oil palm in many parts of the country.
Besides, palm oil falls under the nation’s foreign exchange restrictions; it is among the 43 import items banned by the Central bank of Nigeria (CBN) for Forex Exchange. This implies that importers sourced their foreign exchange from alternative channels such as the parallel market where the Naira exchanged N750/$ against N467/$ in the then official window – pointing to the important role the commodity plays in the economy.
The 2023 Second quarter (Q2) Foreign Trade in Goods Statistics (FGTS) released by NBS recently showed that agricultural imports have continued to increase, with palm oil constituting a major component.
Palm oil imported during the period, from Malaysia, was valued at N19.60 billion. This was 33.9 percent higher than the N14.64 billion worth of the commodity imported, from Cote d’Ivoire, in the corresponding period of the preceding year.
The figure for Q1 2023 was not provided, however, data by the Malaysia Palm Oil Council, however, showed that Nigeria’s palm oil imports from Malaysia rose by 353 percent in the first four months of 2023.
Specifically, between January and April 2023, Nigeria’s palm oil imports from Malaysia increased to 92,961 tons, up to 72,448 tons from 20,513 tons in the same period in 2022. The country imported 227,035 tons of palm oil from Malaysia for the whole year 2022. The WillNG
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Edo Seeks Partnership To Increase Investments In Oil Palm Value Chain
The Edo State Government in conjunction with the British High Commission Abuja, and Propcom+ is working to boost production and scale up value chain activities…
The Edo State Government in conjunction with the British High Commission Abuja, and Propcom+ is working to boost production and scale up value chain activities in its oil palm sector.
The Managing Director of Edo State Investment Promotion Office (ESIPO), Mr Kelvin Uwaibi, in a recent meeting with key representatives of the partners deliberated on the state’s visionary agenda on the oil palm economy.
According to him, the strategic alliance was aimed at increasing investments, especially in the state oil palm value chain and other vital commodities, ultimately diversifying the state’s revenue streams.
“Edo State recognises the strategic imperative of diversification, incorporating additional commodities like cocoa, rubber, and cassava. Other crop products like maize and rice are also being considered by the government in a move geared towards empowering smallholder farmers, facilitating quicker returns on their investments while prioritising sustainability over mere business profitability.”
Speaking on investors reception to the Round Table on Sustainable Palm Oil (RSPO) stipulations for oil palm ventures and the related challenges, Uwaibi expressed optimism about burgeoning support from partners.
He stressed the need for a pivotal role in comprehensive corporate social responsibility guideline, envisioning Edo State as a pioneering model for sustainable business practices. Daily TrustNG
China will support Malaysia's New Industrial Master Plan, PM Anwar
NANNING: China will support Putrajaya's efforts to implement the New Industrial Master Plan (NIMP) 2030, says Prime Minister Datuk Seri Anwar Ibrahim (pic).
"China will support the Malaysian government to implement NIMP 2030," said Anwar in a press conference at Nanning Marriott Hotel on Sunday (Sept 17) after a bilateral meeting with Chinese Premier Li Qiang.
NIMP 2030 outlines plans to transform Malaysia into a high-tech nation in seven years' time, requiring a total investment of RM95bil.
According to Anwar, Li wants more Chinese companies to actively invest in Malaysia and emphasise on upskilling efforts.
"Their (Chinese companies) views about Malaysian professionals, engineers, technicians and IT experts are very good, as they are known for their dedication and discipline.
"Upskilling is crucial. Therefore, in meetings with the China Communications Construction Company (CCCC), Geely and Huawei, I stressed efforts to increase research and also special training programmes in Malaysia," said Anwar.
Anwar also among the highlights of the three MOUs worth a total of RM19.84bil signed with Chinese companies was the request to increase the purchase of palm oil from Malaysia by 500,000-tonnes. The StarMY
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Nigeria-Palm Oil Imports Negate Forex Gains from Cashew, Cocoa
September 17, (THEWILL) – Despite strict forex restrictions against palm oil, the commodity has remained a major foreign exchange consumer in the Nigerian merchandise trade, data by the National Bureau of Statistics (NBS) have shown.
THEWILL had tracked the trend in palm oil imports in recent times, which revealed continued increase in the shipment of the commodity into Nigeria, a country known for abundant oil palm in many parts of the country.
Besides, palm oil falls under the nation’s foreign exchange restrictions; it is among the 43 import items banned by the Central bank of Nigeria (CBN) for Forex Exchange. This implies that importers sourced their foreign exchange from alternative channels such as the parallel market where the Naira exchanged N750/$ against N467/$ in the then official window – pointing to the important role the commodity plays in the economy.
The 2023 Second quarter (Q2) Foreign Trade in Goods Statistics (FGTS) released by NBS recently showed that agricultural imports have continued to increase, with palm oil constituting a major component.
Palm oil imported during the period, from Malaysia, was valued at N19.60 billion. This was 33.9 percent higher than the N14.64 billion worth of the commodity imported, from Cote d’Ivoire, in the corresponding period of the preceding year.
The figure for Q1 2023 was not provided, however, data by the Malaysia Palm Oil Council, however, showed that Nigeria’s palm oil imports from Malaysia rose by 353 percent in the first four months of 2023.
Specifically, between January and April 2023, Nigeria’s palm oil imports from Malaysia increased to 92,961 tons, up to 72,448 tons from 20,513 tons in the same period in 2022. The country imported 227,035 tons of palm oil from Malaysia for the whole year 2022. The WillNG
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Edo Seeks Partnership To Increase Investments In Oil Palm Value Chain
The Edo State Government in conjunction with the British High Commission Abuja, and Propcom+ is working to boost production and scale up value chain activities…
The Edo State Government in conjunction with the British High Commission Abuja, and Propcom+ is working to boost production and scale up value chain activities in its oil palm sector.
The Managing Director of Edo State Investment Promotion Office (ESIPO), Mr Kelvin Uwaibi, in a recent meeting with key representatives of the partners deliberated on the state’s visionary agenda on the oil palm economy.
According to him, the strategic alliance was aimed at increasing investments, especially in the state oil palm value chain and other vital commodities, ultimately diversifying the state’s revenue streams.
“Edo State recognises the strategic imperative of diversification, incorporating additional commodities like cocoa, rubber, and cassava. Other crop products like maize and rice are also being considered by the government in a move geared towards empowering smallholder farmers, facilitating quicker returns on their investments while prioritising sustainability over mere business profitability.”
Speaking on investors reception to the Round Table on Sustainable Palm Oil (RSPO) stipulations for oil palm ventures and the related challenges, Uwaibi expressed optimism about burgeoning support from partners.
He stressed the need for a pivotal role in comprehensive corporate social responsibility guideline, envisioning Edo State as a pioneering model for sustainable business practices. Daily TrustNG
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September 16, 2023
China-ASEAN Expo sparks talk of trade boost
China-ASEAN Expo sparks talk of trade boost
By Zhong Nan | China Daily | Updated: 2023-09-16 07:16
A view of the venue for the 20th China-ASEAN Expo, which will be held in Nanning, South China's Guangxi Zhuang autonomous region. PENG HUAN/FOR CHINA DAILY
Biz leaders see BRI, RCEP as big positives for both region and rest of world
Fueled by substantial trade complementarity, entwined interests and vast economic cooperation potential, enriched economic and trade ties between China and the Association of Southeast Asian Nations will benefit not only the two sides but also the rest of the world in the long run, said analysts and business leaders ahead of the 20th China-ASEAN Expo.
The event will be held from Saturday to Tuesday in Nanning, capital of Guangxi Zhuang autonomous region.
Thanks to the development brought by the Belt and Road Initiative and the full implementation of the Regional Comprehensive Economic Partnership agreement, as well as various regional connectivity activities, the economic integration between China and ASEAN has made significant strides, marked by intensified collaboration within industrial and supply chains, said Huo Jianguo, vice-chairman of the Beijing-based China Society for World Trade Organization Studies. China Daily
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Imports from Russia doubles to $25.69 billion in Apr-Aug on oil, fertiliser
From a market share of less than 1 per cent in India's import basket before the start of the Russia-Ukraine conflict, Russia's share of India's oil imports rose to over 40 per cent.
The country's imports from Russia almost doubled to USD 25.69 billion during the April-August period this fiscal due to increasing inbound shipments of crude oil and fertiliser, according to the commerce ministry data.
With this, Russia has become India's second-largest import source during the first five months of this fiscal.
Business Standard
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MPOB: Action will be taken if Palm Oil mill found to have caused pollution in Sg Pukin
KUALA LUMPUR: The Malaysian Palm Oil Board (MPOB) will take action in accordance with its legislation if a palm oil mill is found to be the cause of pollution in Sungai Pukin, Rompin, Pahang.
MPOB director-general, Datuk Dr Ahmad Parveez Ghulam Kadir, said it was seeking more information on the pollution incident in the river, suspected to be caused by the release of untreated palm oil factory effluent.
"MPOB has been informed of a complaint from Pengurusan Air Pahang Berhad (PAIP) on August 18 regarding the cloudy colour of the water in Sungai Pukin.
"The Environment Department in Rompin, Pahang had conducted an investigation into the pollution that occurred in Sungai Pukin, however, the results found there is no strong evidence to show that the discharge of effluent from the palm oil mill caused the water pollution," read the statement issued by MPOB today (September 15).
MPOB said it takes the preservation of the environment very seriously and urged palm oil mills to comply with the MPOB legislation including that of the Environment Department with regard to the effluent treatment system at all times.
Any complaints can be submitted to the MPOB via email at [email protected] or by calling 03-8769 4400. – Bernama/ New Straits Times
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Coffee Firms Won't Be Ready To Comply With EU Deforestation Law: Report
September 15, 2023 1:15 PM
By Reuters
Most global coffee firms will not be ready to comply with the European Union's new law preventing imports of commodities linked to deforestation, and small farmers may suffer as a consequence, a major coffee sector report has found.
The EU's landmark law, which comes into effect at end-2024, requires importers of commodities like coffee, cocoa, beef, soy, rubber and palm oil to produce a due diligence statement proving their goods are not contributing to the destruction of forests – a major source of climate change – or risk hefty fines.
According to the biennial Coffee Barometer, prepared by a group of NGOs, coffee firms' lack of preparedness for the law might prompt them to shift sourcing to more developed regions like Brazil that have better traceability, leaving the millions of mostly small scale, poverty stricken farmers in the lurch.
It called on both the EU and coffee firms to ensure this does not happen, not least because desperate farmers might be forced, in such a scenario, to expand into forested areas to increase output in order to make ends meet. ESM Magazine
China-ASEAN Expo sparks talk of trade boost
China-ASEAN Expo sparks talk of trade boost
By Zhong Nan | China Daily | Updated: 2023-09-16 07:16
A view of the venue for the 20th China-ASEAN Expo, which will be held in Nanning, South China's Guangxi Zhuang autonomous region. PENG HUAN/FOR CHINA DAILY
Biz leaders see BRI, RCEP as big positives for both region and rest of world
Fueled by substantial trade complementarity, entwined interests and vast economic cooperation potential, enriched economic and trade ties between China and the Association of Southeast Asian Nations will benefit not only the two sides but also the rest of the world in the long run, said analysts and business leaders ahead of the 20th China-ASEAN Expo.
The event will be held from Saturday to Tuesday in Nanning, capital of Guangxi Zhuang autonomous region.
Thanks to the development brought by the Belt and Road Initiative and the full implementation of the Regional Comprehensive Economic Partnership agreement, as well as various regional connectivity activities, the economic integration between China and ASEAN has made significant strides, marked by intensified collaboration within industrial and supply chains, said Huo Jianguo, vice-chairman of the Beijing-based China Society for World Trade Organization Studies. China Daily
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Imports from Russia doubles to $25.69 billion in Apr-Aug on oil, fertiliser
From a market share of less than 1 per cent in India's import basket before the start of the Russia-Ukraine conflict, Russia's share of India's oil imports rose to over 40 per cent.
The country's imports from Russia almost doubled to USD 25.69 billion during the April-August period this fiscal due to increasing inbound shipments of crude oil and fertiliser, according to the commerce ministry data.
With this, Russia has become India's second-largest import source during the first five months of this fiscal.
Business Standard
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MPOB: Action will be taken if Palm Oil mill found to have caused pollution in Sg Pukin
KUALA LUMPUR: The Malaysian Palm Oil Board (MPOB) will take action in accordance with its legislation if a palm oil mill is found to be the cause of pollution in Sungai Pukin, Rompin, Pahang.
MPOB director-general, Datuk Dr Ahmad Parveez Ghulam Kadir, said it was seeking more information on the pollution incident in the river, suspected to be caused by the release of untreated palm oil factory effluent.
"MPOB has been informed of a complaint from Pengurusan Air Pahang Berhad (PAIP) on August 18 regarding the cloudy colour of the water in Sungai Pukin.
"The Environment Department in Rompin, Pahang had conducted an investigation into the pollution that occurred in Sungai Pukin, however, the results found there is no strong evidence to show that the discharge of effluent from the palm oil mill caused the water pollution," read the statement issued by MPOB today (September 15).
MPOB said it takes the preservation of the environment very seriously and urged palm oil mills to comply with the MPOB legislation including that of the Environment Department with regard to the effluent treatment system at all times.
Any complaints can be submitted to the MPOB via email at [email protected] or by calling 03-8769 4400. – Bernama/ New Straits Times
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Coffee Firms Won't Be Ready To Comply With EU Deforestation Law: Report
September 15, 2023 1:15 PM
By Reuters
Most global coffee firms will not be ready to comply with the European Union's new law preventing imports of commodities linked to deforestation, and small farmers may suffer as a consequence, a major coffee sector report has found.
The EU's landmark law, which comes into effect at end-2024, requires importers of commodities like coffee, cocoa, beef, soy, rubber and palm oil to produce a due diligence statement proving their goods are not contributing to the destruction of forests – a major source of climate change – or risk hefty fines.
According to the biennial Coffee Barometer, prepared by a group of NGOs, coffee firms' lack of preparedness for the law might prompt them to shift sourcing to more developed regions like Brazil that have better traceability, leaving the millions of mostly small scale, poverty stricken farmers in the lurch.
It called on both the EU and coffee firms to ensure this does not happen, not least because desperate farmers might be forced, in such a scenario, to expand into forested areas to increase output in order to make ends meet. ESM Magazine
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September 15, 2023
Indonesia-Coffee firms won't be ready to comply with EU deforestation law - report
Most global coffee firms will not be ready to comply with the European Union's new law preventing imports of commodities linked to deforestation, and small farmers may suffer as a consequence, a major coffee sector report has found. The EU's landmark law, which comes into effect at end-2024, requires importers of commodities like coffee, cocoa, beef, soy, rubber and palm oil to produce a due diligence statement proving their goods are not contributing to the destruction of forests - a major source of climate change - or risk hefty fines. According to the biennial Coffee Barometer, prepared by a group of NGOs, coffee firms' lack of preparedness for the law might prompt them to shift sourcing to more developed regions like Brazil that have better traceability, leaving the millions of mostly small scale, poverty stricken farmers in the lurch. The Jakarta Post
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Côte d’Ivoire introduces National Coffee and Cocoa Traceability System
(Ecofin Agency) - The Ivoirian government has just adopted a decree establishing a National Coffee-Cocoa Traceability System. This system aligns with the Marketing flow management improvement program initiated by the Coffee-Cocoa Council (CCC).
According to the authorities, the national coffee and cocoa traceability system includes a computerized system for recording commercial transactions and a system for labeling bags of coffee and cocoa. This move will enable the producer and origin of the products to be identified, thus tracking their journey from the production area to the end customer.
"Specifically, this system will determine the origin of coffee and cocoa products at each level of the marketing chain, enforce the guaranteed minimum purchase price at the field's edge for producers, secure financial transactions in the coffee and cocoa sector, and preserve product quality by promoting compliance with minimum sustainability standards," explains the statement.
Overall, this initiative reflects the executive's commitment to comply with the new European Union (EU) law on imports of products linked to deforestation, which is due to come into force by the end of 2024.
As a reminder, this European law requires importers of products such as coffee, cocoa, beef, soy, rubber, and palm oil to provide a certified verification statement proving that their goods do not contribute to deforestation. Ecofin Agency
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Malaysia penalises 400 companies so far this year for violating labour laws
Human Resources Minister V Sivakumar says firms have been fined more than $500,000 over breaches in 2023.
Malaysia has taken action against 400 companies so far this year for violating labour laws, state news agency Bernama has reported, citing Human Resources Minister V Sivakumar.
The ministry’s labour department issued fines totalling 2.17 million ringgit ($463,000) against 272 employers, while the courts fined 128 employers a combined 242,000 ringgit ($51,700), Bernama cited Sivakumar as saying on Thursday.
The labour violations included illegal wage deductions, Sivakumar said.
The minister did not name the companies, nor did he give details of the labour offences.
Malaysia is a key link in the global supply chain, manufacturing everything from palm oil to medical gloves and semiconductor chips.
Malaysian companies have faced bans from the United States in recent years over allegations of abuses against migrant workers, who are employed widely in the country’s manufacturing and plantation industries. Al Jazeera
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BASF signs future-oriented partnership supporting Indonesian smallholders in sustainable palm cultivation
Regenerative agriculture in smallholder oil palm farms BASF
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Kellogg’s latest to freeze Indonesian supplier over palm oil violations
JAKARTA — U.S. food giant Kellogg’s is the latest major consumer brand to suspend its purchases of palm oil from Indonesian plantation giant Astra Agro Lestari, following reports of environmental and social violations. The cereal maker joins the likes of Hershey’s, PepsiCo, and Oreo maker Mondelēz in distancing itself from AAL, the second-largest palm oil company in Indonesia.
The move is the latest fallout from a 2022 report published by Walhi, Indonesia’s largest environmental NGO, and Friends of the Earth U.S., which says three AAL subsidiaries engaged in land grabbing, environmental degradation, and the criminal persecution of environmental and human rights defenders.
According to the report, the subsidiaries — PT Mamuang, PT Agro Nusa Abadi (ANA) and PT Lestari Tani Teladan — claim or occupy more than 6,700 hectares (16,700 acres) of land without having obtained the free, prior and informed consent (FPIC) of local communities on the island of Sulawesi. It also alleges that they failed to dispose of waste properly, and exacerbated flooding by clearing forests in water catchment areas.
The Central Sulawesi chapter of Walhi recorded at least 10 people facing criminal charges brought by the companies — most for allegedly stealing oil palm fruit, occupying land without a permit, and making threats. Mongabay
Indonesia-Coffee firms won't be ready to comply with EU deforestation law - report
Most global coffee firms will not be ready to comply with the European Union's new law preventing imports of commodities linked to deforestation, and small farmers may suffer as a consequence, a major coffee sector report has found. The EU's landmark law, which comes into effect at end-2024, requires importers of commodities like coffee, cocoa, beef, soy, rubber and palm oil to produce a due diligence statement proving their goods are not contributing to the destruction of forests - a major source of climate change - or risk hefty fines. According to the biennial Coffee Barometer, prepared by a group of NGOs, coffee firms' lack of preparedness for the law might prompt them to shift sourcing to more developed regions like Brazil that have better traceability, leaving the millions of mostly small scale, poverty stricken farmers in the lurch. The Jakarta Post
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Côte d’Ivoire introduces National Coffee and Cocoa Traceability System
(Ecofin Agency) - The Ivoirian government has just adopted a decree establishing a National Coffee-Cocoa Traceability System. This system aligns with the Marketing flow management improvement program initiated by the Coffee-Cocoa Council (CCC).
According to the authorities, the national coffee and cocoa traceability system includes a computerized system for recording commercial transactions and a system for labeling bags of coffee and cocoa. This move will enable the producer and origin of the products to be identified, thus tracking their journey from the production area to the end customer.
"Specifically, this system will determine the origin of coffee and cocoa products at each level of the marketing chain, enforce the guaranteed minimum purchase price at the field's edge for producers, secure financial transactions in the coffee and cocoa sector, and preserve product quality by promoting compliance with minimum sustainability standards," explains the statement.
Overall, this initiative reflects the executive's commitment to comply with the new European Union (EU) law on imports of products linked to deforestation, which is due to come into force by the end of 2024.
As a reminder, this European law requires importers of products such as coffee, cocoa, beef, soy, rubber, and palm oil to provide a certified verification statement proving that their goods do not contribute to deforestation. Ecofin Agency
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Malaysia penalises 400 companies so far this year for violating labour laws
Human Resources Minister V Sivakumar says firms have been fined more than $500,000 over breaches in 2023.
Malaysia has taken action against 400 companies so far this year for violating labour laws, state news agency Bernama has reported, citing Human Resources Minister V Sivakumar.
The ministry’s labour department issued fines totalling 2.17 million ringgit ($463,000) against 272 employers, while the courts fined 128 employers a combined 242,000 ringgit ($51,700), Bernama cited Sivakumar as saying on Thursday.
The labour violations included illegal wage deductions, Sivakumar said.
The minister did not name the companies, nor did he give details of the labour offences.
Malaysia is a key link in the global supply chain, manufacturing everything from palm oil to medical gloves and semiconductor chips.
Malaysian companies have faced bans from the United States in recent years over allegations of abuses against migrant workers, who are employed widely in the country’s manufacturing and plantation industries. Al Jazeera
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BASF signs future-oriented partnership supporting Indonesian smallholders in sustainable palm cultivation
- Project partners join forces in the promotion of sustainable palm and palm kernel oil cultivation in Indonesia
- Program to involve 100 independent smallholders
Regenerative agriculture in smallholder oil palm farms BASF
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Kellogg’s latest to freeze Indonesian supplier over palm oil violations
JAKARTA — U.S. food giant Kellogg’s is the latest major consumer brand to suspend its purchases of palm oil from Indonesian plantation giant Astra Agro Lestari, following reports of environmental and social violations. The cereal maker joins the likes of Hershey’s, PepsiCo, and Oreo maker Mondelēz in distancing itself from AAL, the second-largest palm oil company in Indonesia.
The move is the latest fallout from a 2022 report published by Walhi, Indonesia’s largest environmental NGO, and Friends of the Earth U.S., which says three AAL subsidiaries engaged in land grabbing, environmental degradation, and the criminal persecution of environmental and human rights defenders.
According to the report, the subsidiaries — PT Mamuang, PT Agro Nusa Abadi (ANA) and PT Lestari Tani Teladan — claim or occupy more than 6,700 hectares (16,700 acres) of land without having obtained the free, prior and informed consent (FPIC) of local communities on the island of Sulawesi. It also alleges that they failed to dispose of waste properly, and exacerbated flooding by clearing forests in water catchment areas.
The Central Sulawesi chapter of Walhi recorded at least 10 people facing criminal charges brought by the companies — most for allegedly stealing oil palm fruit, occupying land without a permit, and making threats. Mongabay
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September 14, 2023
EU says financial firms unwilling to support new deforestation law
LONDON, Sept 13 (Reuters) - The European Commission said on Wednesday that financial institutions are not backing the EU's new deforestation law, which has faced a backlash from producing countries concerned it will create unfair trade barriers.
The landmark law requires importers of commodities like coffee, cocoa, beef, soy, rubber and palm oil to produce a due diligence statement proving their goods are not contributing to the destruction of forests, or risk hefty fines.
Deforestation is responsible for about 10% of global greenhouse gas emissions that drive climate change, and the law, which comes into effect at end-2024, aims to tackle the European Union's contribution.
"Clearly there's a price to pay. We're putting lots of money in (to help producing countries), but financial institutions are not following," said Leonard Mizzi, head of unit at the Commission's department for International Partnerships. Reuters
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Bunge Bondholders at Risk as EU Rules Aim to Protect Rainforests
(Bloomberg) -- Investors in Bunge Ltd.’s $2.9 billion of bonds are the most exposed to the European Union’s plan to ban imports of raw materials produced on deforested land.
That’s the warning, at least, of analysts at the Anthropocene Fixed Income Institute who say the crop trader’s investors are among those at risk of the credit impact of the EU’s efforts. The new rules require companies that sell certain commodities in the region to prove they’ve avoided using deforested land.
The regulation could lead to costly penalties and the loss of market access for firms that struggle meet the standards — and the risk is high for soy traders including Bunge and Brazil’s Andre Maggi Participacoes SA, according to analysts Stéphanie Mielnik and Thomas White.
“Credit deterioration and higher borrowing costs could be significant for investors,” they wrote in a Wednesday note. “These heightened risks do not appear to be reflected in current credit spread levels.” Yahoo
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How the EU can prevent its deforestation-free law from being a half measure
As the EU shifts sustainable agricultural practices to protect nature and biodiversity, it ought to still look out for the small-scale producers and their livelihoods, writes Jonathan Mockshell.
Jonathan Mockshell is the project leader at the Alliance of Bioversity International & CIAT.
Since the EU adopted a law banning goods linked to deforestation at the end of June, the timer has been counting the 18 months within which companies must comply.
But the ban only tells half the story, focusing on those responsible for importing and selling the commodities in question, such as coffee, cocoa and wood.
At the other end of the supply chain are those who produce them in the first place, a large majority of whom are small-scale producers.
To avoid any unintended impacts on those at the start of the chain, including some of the most resource-poor and vulnerable people in the world, the deterrent must also come with measures that enable these producers to shift towards sustainable and inclusive production. EURACTIV
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Kenya-KALRO to distribute 2.5 million palm seedlings as it seeks to enhance local production
Farmers in Busia have been encouraged to embrace the cultivation of palm trees as one of the ways to increase the local production of edible oil in the country.
The KALRO Alupe Agricultural and Livestock Research Institute is now in the process of producing 2.5 million palm seedlings for the project.The institute has 100,000 palm seedlings planted so far ready for sale to farmers. Lessons on palm farming are ongoing in the Agricultural and Livestock Training Institute located in Teso South Constituency.
The Institute has a hundred thousand palm seedlings planted so far, ready for sale to farmers.
Workers work daily to put soil on these sheets, plant palm trees, apply fertilizer, and spray water on the seedlings.
The director of the Institute, Patrice Mudavadi, say the type of palm seeds suit the region urging farmers embrace the project.
“Kenya has been importing edible oils. But through this project, we hope that we can be able to be self-sufficient and even supply to the external market,” Patrice said.
Market planting of palm oil will greatly benefit Kenyans, considering that Kenya has been buying the oil from foreign countries. KBC KE
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Malaysia and the Netherlands: Partners for Sustainable Agriculture & Food Security.
NI-SCOPS: National Initiatives to Stimulate and Scale up Smallholder Climate-smart Agriculture in Oil Palm Landscapes in Malaysia
NI-SCOPS is a Dutch government supported, public private partnership programme, initiated in 2019 and focused on Indonesia, Malaysia, Nigeria and Ghana. It works in close collaboration with those countries’ governments, through jointly negotiated, government to government agreements.
Delivering on the Amsterdam Declaration commitments, the aim of NI-SCOPS is to demonstrate that the palm oil sector can contribute to the SDGs and Paris Agreement climate ambitions, while improving the livelihoods of smallholder farmers and workers. NI-SCOPS focuses on landscapes with large numbers of independent smallholders and mills, which are unlikely to be able to get certified.
The aim is that these palm oil-producing areas, or landscapes, will become more economically robust and socially just, while protecting and restoring valuable natural resources, leading to a reduction of greenhouse gas (GHG) emissions from agriculture and land-use change. NI-SCOPS works with these smallholders and mills, strengthening existing partnerships, and building new ones, with the close support of national and subnational governments.
In Malaysia, a national working group was established that includes all relevant ministries and agencies and have reached bilateral agreements with the Netherlands in 2019. In addition, cooperation agreements have been signed between the national governments and IDH and Solidaridad to implement the NI-SCOPS program. Netherlands and You
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MPOC Europe Alert
13 September 2023
The European Parliament formally adopts the revised Renewable Energy Directive (RED III)
On 12 September 2023, the European Parliament officially adopted the revised EU Renewable Energy Directive (RED III) with 470 votes in favour, 120 against, and 4 abstentions. This follows the provisional agreement reached by the Council of the EU and the European Parliament on 30 March 2023. The Council of the EU had approved the RED III on 16 June 2023.
The RED III will increase the target for the share of renewable energy in the EU’s overall energy consumption from 32% to 42.5% by 2030 “with an additional 2.5% indicative top up that would allow to reach 45%”. The RED III sets a binding combined sub-target of “5.5% for advanced biofuels (generally derived from non-food-based feedstocks) and renewable fuels of non-biological origin (mostly renewable hydrogen and hydrogen-based synthetic fuels) in the share of renewable energies supplied to the transport sector”.
Regarding transport, the RED III allows EU Member States to choose between either a binding target of 14.5% reduction of greenhouse gas (GHG) intensity in transport from the use of renewables by 2030 or a binding target of at least 29% share of renewables within the final consumption of energy in the transport sector by 2030.
Regarding the Delegated Regulation (EU) 2019/807 as regards the determination of high ILUC-risk feedstock for which a significant expansion of the production area into land with high carbon stock is observed and the certification of low ILUC-risk biofuels, bioliquids and biomass fuels, the RED III foresees a review of the Delegated Act every three years, which should, if appropriate, lead to an amendment of the criteria established in the Delegated Act. According to the RED II and RED III, the Commission was to conduct the review the criteria by 1 September 2023.
Possible actions: The revised RED III maintains the EU’s approach to discriminate against oil palm crop-based biofuel and palm oil as a biofuel feedstock.
Malaysia should continue engaging with the European Commission and with key EU Member States to ensure that sustainable palm oil be part of the world’s and of the EU’s ‘green’ transition. This may soon become a matter of negotiation should the expected WTO decision, in the palm oil dispute brought by Malaysia against the EU, be adjudicated in favour of Malaysia. MPOC EU
EU says financial firms unwilling to support new deforestation law
LONDON, Sept 13 (Reuters) - The European Commission said on Wednesday that financial institutions are not backing the EU's new deforestation law, which has faced a backlash from producing countries concerned it will create unfair trade barriers.
The landmark law requires importers of commodities like coffee, cocoa, beef, soy, rubber and palm oil to produce a due diligence statement proving their goods are not contributing to the destruction of forests, or risk hefty fines.
Deforestation is responsible for about 10% of global greenhouse gas emissions that drive climate change, and the law, which comes into effect at end-2024, aims to tackle the European Union's contribution.
"Clearly there's a price to pay. We're putting lots of money in (to help producing countries), but financial institutions are not following," said Leonard Mizzi, head of unit at the Commission's department for International Partnerships. Reuters
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Bunge Bondholders at Risk as EU Rules Aim to Protect Rainforests
(Bloomberg) -- Investors in Bunge Ltd.’s $2.9 billion of bonds are the most exposed to the European Union’s plan to ban imports of raw materials produced on deforested land.
That’s the warning, at least, of analysts at the Anthropocene Fixed Income Institute who say the crop trader’s investors are among those at risk of the credit impact of the EU’s efforts. The new rules require companies that sell certain commodities in the region to prove they’ve avoided using deforested land.
The regulation could lead to costly penalties and the loss of market access for firms that struggle meet the standards — and the risk is high for soy traders including Bunge and Brazil’s Andre Maggi Participacoes SA, according to analysts Stéphanie Mielnik and Thomas White.
“Credit deterioration and higher borrowing costs could be significant for investors,” they wrote in a Wednesday note. “These heightened risks do not appear to be reflected in current credit spread levels.” Yahoo
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How the EU can prevent its deforestation-free law from being a half measure
As the EU shifts sustainable agricultural practices to protect nature and biodiversity, it ought to still look out for the small-scale producers and their livelihoods, writes Jonathan Mockshell.
Jonathan Mockshell is the project leader at the Alliance of Bioversity International & CIAT.
Since the EU adopted a law banning goods linked to deforestation at the end of June, the timer has been counting the 18 months within which companies must comply.
But the ban only tells half the story, focusing on those responsible for importing and selling the commodities in question, such as coffee, cocoa and wood.
At the other end of the supply chain are those who produce them in the first place, a large majority of whom are small-scale producers.
To avoid any unintended impacts on those at the start of the chain, including some of the most resource-poor and vulnerable people in the world, the deterrent must also come with measures that enable these producers to shift towards sustainable and inclusive production. EURACTIV
---------
Kenya-KALRO to distribute 2.5 million palm seedlings as it seeks to enhance local production
Farmers in Busia have been encouraged to embrace the cultivation of palm trees as one of the ways to increase the local production of edible oil in the country.
The KALRO Alupe Agricultural and Livestock Research Institute is now in the process of producing 2.5 million palm seedlings for the project.The institute has 100,000 palm seedlings planted so far ready for sale to farmers. Lessons on palm farming are ongoing in the Agricultural and Livestock Training Institute located in Teso South Constituency.
The Institute has a hundred thousand palm seedlings planted so far, ready for sale to farmers.
Workers work daily to put soil on these sheets, plant palm trees, apply fertilizer, and spray water on the seedlings.
The director of the Institute, Patrice Mudavadi, say the type of palm seeds suit the region urging farmers embrace the project.
“Kenya has been importing edible oils. But through this project, we hope that we can be able to be self-sufficient and even supply to the external market,” Patrice said.
Market planting of palm oil will greatly benefit Kenyans, considering that Kenya has been buying the oil from foreign countries. KBC KE
---------
Malaysia and the Netherlands: Partners for Sustainable Agriculture & Food Security.
NI-SCOPS: National Initiatives to Stimulate and Scale up Smallholder Climate-smart Agriculture in Oil Palm Landscapes in Malaysia
NI-SCOPS is a Dutch government supported, public private partnership programme, initiated in 2019 and focused on Indonesia, Malaysia, Nigeria and Ghana. It works in close collaboration with those countries’ governments, through jointly negotiated, government to government agreements.
Delivering on the Amsterdam Declaration commitments, the aim of NI-SCOPS is to demonstrate that the palm oil sector can contribute to the SDGs and Paris Agreement climate ambitions, while improving the livelihoods of smallholder farmers and workers. NI-SCOPS focuses on landscapes with large numbers of independent smallholders and mills, which are unlikely to be able to get certified.
The aim is that these palm oil-producing areas, or landscapes, will become more economically robust and socially just, while protecting and restoring valuable natural resources, leading to a reduction of greenhouse gas (GHG) emissions from agriculture and land-use change. NI-SCOPS works with these smallholders and mills, strengthening existing partnerships, and building new ones, with the close support of national and subnational governments.
In Malaysia, a national working group was established that includes all relevant ministries and agencies and have reached bilateral agreements with the Netherlands in 2019. In addition, cooperation agreements have been signed between the national governments and IDH and Solidaridad to implement the NI-SCOPS program. Netherlands and You
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MPOC Europe Alert
13 September 2023
The European Parliament formally adopts the revised Renewable Energy Directive (RED III)
On 12 September 2023, the European Parliament officially adopted the revised EU Renewable Energy Directive (RED III) with 470 votes in favour, 120 against, and 4 abstentions. This follows the provisional agreement reached by the Council of the EU and the European Parliament on 30 March 2023. The Council of the EU had approved the RED III on 16 June 2023.
The RED III will increase the target for the share of renewable energy in the EU’s overall energy consumption from 32% to 42.5% by 2030 “with an additional 2.5% indicative top up that would allow to reach 45%”. The RED III sets a binding combined sub-target of “5.5% for advanced biofuels (generally derived from non-food-based feedstocks) and renewable fuels of non-biological origin (mostly renewable hydrogen and hydrogen-based synthetic fuels) in the share of renewable energies supplied to the transport sector”.
Regarding transport, the RED III allows EU Member States to choose between either a binding target of 14.5% reduction of greenhouse gas (GHG) intensity in transport from the use of renewables by 2030 or a binding target of at least 29% share of renewables within the final consumption of energy in the transport sector by 2030.
Regarding the Delegated Regulation (EU) 2019/807 as regards the determination of high ILUC-risk feedstock for which a significant expansion of the production area into land with high carbon stock is observed and the certification of low ILUC-risk biofuels, bioliquids and biomass fuels, the RED III foresees a review of the Delegated Act every three years, which should, if appropriate, lead to an amendment of the criteria established in the Delegated Act. According to the RED II and RED III, the Commission was to conduct the review the criteria by 1 September 2023.
Possible actions: The revised RED III maintains the EU’s approach to discriminate against oil palm crop-based biofuel and palm oil as a biofuel feedstock.
Malaysia should continue engaging with the European Commission and with key EU Member States to ensure that sustainable palm oil be part of the world’s and of the EU’s ‘green’ transition. This may soon become a matter of negotiation should the expected WTO decision, in the palm oil dispute brought by Malaysia against the EU, be adjudicated in favour of Malaysia. MPOC EU
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September 13, 2023
Indonesia-PTPN IV partners reNIKOLA to develop 4 CBG plants in North Sumatra
KUALA LUMPUR: PT Perkebunan Nusantara (PTPN IV) collaborates with reNIKOLA Holdings Sdn Bhd (reNIKOLA) to develop compressed biomethane gas (CBG) plants in North Sumatra.
This partnership was established through a memorandum of understanding (MoU) which was signed by both parties on June 30, 2023, witnessed by Dwi Sutoro, marketing director of PTPN III (Holdings).
Based on the MoU, reNIKOLA will support PTPN IV to uphold the principles of environmental, social, and governance (ESG). This includes plans to build, own and operate four CBG plants at PTPN IV’s palm oil mills, namely PKS Tinjowan, PKS Pulu Raja, PKS Dolok Sinumbah & PKS Pabatu.
In the process, each CBG plant will utilise PTPN IV’s palm oil mill effluent (POME) as a raw material to produce biomethane.
According to PTPN IV director Sucipto Prayitno, PTPN IV, as a subsidiary of PTPN Holding which operates in the oil palm plantation sector, took the initiative to carry out this collaboration, in line with the green house gas (GHG) reduction roadmap launched by the PTPN group to reduce emissions in Business as Usual (BAU) plantation activities, as well as to support government programs to reduce GHG emissions by 29% (own capabilities) or 41% (with international assistance) by 2030 according to NDC (Nationally Determined Contribution). The Sun Daily
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Malaysia's planters can expect stronger demand rest of 2023
KUALA LUMPUR: The local plantation sector is expected to see a stronger demand throughout the remaining months in 2023, according to Public Investment Bank Bhd (PublicInvest)
This is underpinned by the wide gap between palm oil and soybean oil prices as well as concerns over the El-Nino pattern.
In a surprise development, Malaysia's palm oil inventories reportedly surged the most in two years to enter the 2 million tonnes threshold on the basis of stronger production for second straight month and weaker exports.
Palm oil stocks rose to seven month high, up 22.5 per cent month-on-month (MoM) to 2.12 million tonnes, the highest since January this year.
As for weak exports, it was dragged by China and India and partially offset by demand from European Union, the Middle East and the US.
"India's palm oil imports rose from 1.09 million tonnes in July to 1.12 million tonnes in August, the highest in nine months, as refiners built up inventories ahead of upcoming festival as well as concerns over local soybean and groundnut production as the country experienced its driest August in more than a century," it said.
The average crude palm oil price has gone down from RM3,890 per tonne to RM3,799 per tonne in August which recorded a 2.3 per cent decline from July.
PublicInvest is calling for a comprehensive review of the windfall levy's price threshold, levy rate and oil palm replanting. New Straits Times
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Indonesia-PTPN IV partners reNIKOLA to develop 4 CBG plants in North Sumatra
KUALA LUMPUR: PT Perkebunan Nusantara (PTPN IV) collaborates with reNIKOLA Holdings Sdn Bhd (reNIKOLA) to develop compressed biomethane gas (CBG) plants in North Sumatra.
This partnership was established through a memorandum of understanding (MoU) which was signed by both parties on June 30, 2023, witnessed by Dwi Sutoro, marketing director of PTPN III (Holdings).
Based on the MoU, reNIKOLA will support PTPN IV to uphold the principles of environmental, social, and governance (ESG). This includes plans to build, own and operate four CBG plants at PTPN IV’s palm oil mills, namely PKS Tinjowan, PKS Pulu Raja, PKS Dolok Sinumbah & PKS Pabatu.
In the process, each CBG plant will utilise PTPN IV’s palm oil mill effluent (POME) as a raw material to produce biomethane.
According to PTPN IV director Sucipto Prayitno, PTPN IV, as a subsidiary of PTPN Holding which operates in the oil palm plantation sector, took the initiative to carry out this collaboration, in line with the green house gas (GHG) reduction roadmap launched by the PTPN group to reduce emissions in Business as Usual (BAU) plantation activities, as well as to support government programs to reduce GHG emissions by 29% (own capabilities) or 41% (with international assistance) by 2030 according to NDC (Nationally Determined Contribution). The Sun Daily
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Malaysia's planters can expect stronger demand rest of 2023
KUALA LUMPUR: The local plantation sector is expected to see a stronger demand throughout the remaining months in 2023, according to Public Investment Bank Bhd (PublicInvest)
This is underpinned by the wide gap between palm oil and soybean oil prices as well as concerns over the El-Nino pattern.
In a surprise development, Malaysia's palm oil inventories reportedly surged the most in two years to enter the 2 million tonnes threshold on the basis of stronger production for second straight month and weaker exports.
Palm oil stocks rose to seven month high, up 22.5 per cent month-on-month (MoM) to 2.12 million tonnes, the highest since January this year.
As for weak exports, it was dragged by China and India and partially offset by demand from European Union, the Middle East and the US.
"India's palm oil imports rose from 1.09 million tonnes in July to 1.12 million tonnes in August, the highest in nine months, as refiners built up inventories ahead of upcoming festival as well as concerns over local soybean and groundnut production as the country experienced its driest August in more than a century," it said.
The average crude palm oil price has gone down from RM3,890 per tonne to RM3,799 per tonne in August which recorded a 2.3 per cent decline from July.
PublicInvest is calling for a comprehensive review of the windfall levy's price threshold, levy rate and oil palm replanting. New Straits Times
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September 12, 2023
Who will pay? APAC cocoa industry says EU Deforestation Regulation could create ‘two-tier market’
12-Sep-2023 By Pearly Neo
The cocoa and chocolates industry in Asia Pacific is concerned that the EU Deforestation Regulation could lead a two-tier market for cocoa beans, which could have far-ranging cost and pricing implications. Food Navigator Asia
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Indonesian President, Jokowi asks Dutch govt to support low-carbon tech, EUDR abolition
Jakarta (ANTARA) - Indonesian President Joko Widodo (Jokowi) has asked the Dutch government to support the development of low-carbon technology in Indonesia and to push for the abolition of the European Union Deforestation Regulation (EUDR).
He conveyed this during a bilateral meeting with Dutch Prime Minister Mark Rutte on the sidelines of the G20 Summit in New Delhi, India, on Saturday, according to a statement released by the Presidential Secretariat Press Bureau on Sunday.
"I hope that the Netherlands can support the development of low-carbon technology and the conversion of steam power plants to renewable energy as a follow-up to the JETP cooperation, and encourage the abolition of EUDR so it does not discriminate against Indonesia's main commodities," he said.
The Just Energy Transition Partnership (JETP) is a cooperation between Indonesia and a group of international partners, led by the United States and Japan, aimed to accelerate energy transition in Indonesia.
Jokowi also asked Rutte to support Indonesia's application to become a member of the Organization for Economic Cooperation and Development (OECD). Antara News
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Indonesian Court Upholds Decision to Curb Expansion of Oil Palm Plantation in Papua
An Indonesian court has ruled in favor of curbing the expansion of the Tanah Merah mega oil palm plantation project in Papua. The court rejected lawsuits filed by two plantation companies involved in the project, PT Megakarya Jaya Raya (MJR) and PT Kartika Cipta Pratama (KCP). As a result, the companies are legally required to stop clearing forests in their concessions and preserve what remains.
The Tanah Merah project covers an area of 280,000 hectares and is divided into seven concessions in the province of South Papua. It aims to establish the largest block of oil palm plantations in Indonesia. However, development has been slow, and the government included MJR and KCP on its list of concessions to be revoked in 2022 due to their lack of progress.
In response to the government’s decision, the companies filed a lawsuit but were unsuccessful in challenging the ruling. The companies argued that the revocation of permits harmed their business and claimed they intended to develop the plantations. They also disputed the authority of the Ministry of Environment and Forestry to issue the order.
Despite the ruling in favor of curbing expansion, communities in the concession areas still do not have legal recognition of their ancestral rights to the forests. Activists and Indigenous Awyu people living in the area have called on the government to formally recognize their ancestral rights and ensure the permits of the companies are revoked.
The court’s decision to uphold the government’s efforts to reduce deforestation aligns with the country’s goal of turning its forests into a net carbon sink by 2030. It also highlights the importance of preserving forests for the livelihoods and cultures of indigenous communities. Energy Portal
Who will pay? APAC cocoa industry says EU Deforestation Regulation could create ‘two-tier market’
12-Sep-2023 By Pearly Neo
The cocoa and chocolates industry in Asia Pacific is concerned that the EU Deforestation Regulation could lead a two-tier market for cocoa beans, which could have far-ranging cost and pricing implications. Food Navigator Asia
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Indonesian President, Jokowi asks Dutch govt to support low-carbon tech, EUDR abolition
Jakarta (ANTARA) - Indonesian President Joko Widodo (Jokowi) has asked the Dutch government to support the development of low-carbon technology in Indonesia and to push for the abolition of the European Union Deforestation Regulation (EUDR).
He conveyed this during a bilateral meeting with Dutch Prime Minister Mark Rutte on the sidelines of the G20 Summit in New Delhi, India, on Saturday, according to a statement released by the Presidential Secretariat Press Bureau on Sunday.
"I hope that the Netherlands can support the development of low-carbon technology and the conversion of steam power plants to renewable energy as a follow-up to the JETP cooperation, and encourage the abolition of EUDR so it does not discriminate against Indonesia's main commodities," he said.
The Just Energy Transition Partnership (JETP) is a cooperation between Indonesia and a group of international partners, led by the United States and Japan, aimed to accelerate energy transition in Indonesia.
Jokowi also asked Rutte to support Indonesia's application to become a member of the Organization for Economic Cooperation and Development (OECD). Antara News
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Indonesian Court Upholds Decision to Curb Expansion of Oil Palm Plantation in Papua
An Indonesian court has ruled in favor of curbing the expansion of the Tanah Merah mega oil palm plantation project in Papua. The court rejected lawsuits filed by two plantation companies involved in the project, PT Megakarya Jaya Raya (MJR) and PT Kartika Cipta Pratama (KCP). As a result, the companies are legally required to stop clearing forests in their concessions and preserve what remains.
The Tanah Merah project covers an area of 280,000 hectares and is divided into seven concessions in the province of South Papua. It aims to establish the largest block of oil palm plantations in Indonesia. However, development has been slow, and the government included MJR and KCP on its list of concessions to be revoked in 2022 due to their lack of progress.
In response to the government’s decision, the companies filed a lawsuit but were unsuccessful in challenging the ruling. The companies argued that the revocation of permits harmed their business and claimed they intended to develop the plantations. They also disputed the authority of the Ministry of Environment and Forestry to issue the order.
Despite the ruling in favor of curbing expansion, communities in the concession areas still do not have legal recognition of their ancestral rights to the forests. Activists and Indigenous Awyu people living in the area have called on the government to formally recognize their ancestral rights and ensure the permits of the companies are revoked.
The court’s decision to uphold the government’s efforts to reduce deforestation aligns with the country’s goal of turning its forests into a net carbon sink by 2030. It also highlights the importance of preserving forests for the livelihoods and cultures of indigenous communities. Energy Portal
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September 11, 2023
Big business are under pressure come clean over their impact on nature and biodiversity
Big businesses are doing boot camps to prepare for a world demanding they come clean over their impact on nature and biodiversity.
Fonterra, Genesis Energy, Mercury, ANZ, Westpac, Silver Fern Farms and Zespri are all boot-camping in preparation for the next big thing in company reporting; Nature-related financial disclosure.
Corporate New Zealand continues to gear up for the first year of legally-mandated climate-related financial disclosure, which requires them to reveal their emissions, and the risks that climate change poses to their business.
But in September, the first global standards for nature-related financial disclosure will be published by the Taskforce on Nature-related financial disclosures, which is funded by multi-national companies, and some governments, including Australia, but not New Zealand. Stuff NZ
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World’s richest nations host majority of people living in modern slavery, study finds
THE world’s richest nations host the majority of people living in modern slavery, according to a damning new report.
Analysis published on Saturday by international human rights group Walk Free shows Saudi Arabia to have the highest level of modern slavery in the G20 richest nations.
Modern slavery is defined as living in extreme exploitation including forced labour, forced marriage, and human trafficking.
Walk Free’s G20 scorecard ranks the estimated number of people living in modern slavery compared with the population.
For every 1,000 people in Saudi Arabia, 21.3 are living in modern slavery. Turkey, Russia and India follow close behind.
The research also showed that the purchasing practices of the world’s wealthiest nations are fuelling exploitation in lower-income countries at the start of global supply chains.
Walk Free director Grace Forrest said: “The G20 accounts for over half of all people living in modern slavery and imports half a trillion dollars of products connected to modern slavery annually. Morningstar
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Sustainable agriculture supports biodiversity conservation, IUCN study confirms.
The comparative analysis was conducted across 20 farms situated within three micro-watersheds located in the western Guatemalan Highlands. This region is particularly vulnerable to the impacts of climate change and is characterized by elevated poverty rates.
Guatemala City, September 9th, 2023 (IUCN): On World Agriculture Day 2023, IUCN (International Union for the Conservation of Nature) reveals the findings of a comparative study aimed at evaluating biodiversity within agricultural landscapes of the Guatemalan highland.
The research focused on just over 192 hectares of agricultural land in the Balanyá, Quiejel, and Pixcayá Pampumay micro-watersheds, located in the upper part of the Motagua River in Chimaltenango. In these territories, 10 plots implementing Ecosystem-Based Adaptation (EbA) actions were randomly selected, together with 10 plots where conventional agriculture is practiced. IUCN
Big business are under pressure come clean over their impact on nature and biodiversity
Big businesses are doing boot camps to prepare for a world demanding they come clean over their impact on nature and biodiversity.
Fonterra, Genesis Energy, Mercury, ANZ, Westpac, Silver Fern Farms and Zespri are all boot-camping in preparation for the next big thing in company reporting; Nature-related financial disclosure.
Corporate New Zealand continues to gear up for the first year of legally-mandated climate-related financial disclosure, which requires them to reveal their emissions, and the risks that climate change poses to their business.
But in September, the first global standards for nature-related financial disclosure will be published by the Taskforce on Nature-related financial disclosures, which is funded by multi-national companies, and some governments, including Australia, but not New Zealand. Stuff NZ
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World’s richest nations host majority of people living in modern slavery, study finds
THE world’s richest nations host the majority of people living in modern slavery, according to a damning new report.
Analysis published on Saturday by international human rights group Walk Free shows Saudi Arabia to have the highest level of modern slavery in the G20 richest nations.
Modern slavery is defined as living in extreme exploitation including forced labour, forced marriage, and human trafficking.
Walk Free’s G20 scorecard ranks the estimated number of people living in modern slavery compared with the population.
For every 1,000 people in Saudi Arabia, 21.3 are living in modern slavery. Turkey, Russia and India follow close behind.
The research also showed that the purchasing practices of the world’s wealthiest nations are fuelling exploitation in lower-income countries at the start of global supply chains.
Walk Free director Grace Forrest said: “The G20 accounts for over half of all people living in modern slavery and imports half a trillion dollars of products connected to modern slavery annually. Morningstar
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Sustainable agriculture supports biodiversity conservation, IUCN study confirms.
The comparative analysis was conducted across 20 farms situated within three micro-watersheds located in the western Guatemalan Highlands. This region is particularly vulnerable to the impacts of climate change and is characterized by elevated poverty rates.
Guatemala City, September 9th, 2023 (IUCN): On World Agriculture Day 2023, IUCN (International Union for the Conservation of Nature) reveals the findings of a comparative study aimed at evaluating biodiversity within agricultural landscapes of the Guatemalan highland.
The research focused on just over 192 hectares of agricultural land in the Balanyá, Quiejel, and Pixcayá Pampumay micro-watersheds, located in the upper part of the Motagua River in Chimaltenango. In these territories, 10 plots implementing Ecosystem-Based Adaptation (EbA) actions were randomly selected, together with 10 plots where conventional agriculture is practiced. IUCN
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September 10, 2023
“Global South” objects to EU deforestation focus and 'risk assessment' qualification policies
Argentina was part of the “Global South”, which this week made a presentation before the European Union expressing deep concern about the distorting effects of the new EU ruling, from June 2023, referred to goods that are demanded to be free of deforestation consequences.
The “Global South”, is made up of Brazil, Bolivia, Colombia, Ivory Coast, Ecuador, Guatemala, Indonesia, Malaysia, Mexico, Nigeria, Paraguay, Peru, Dominican Republic and Thailand, and the goods involved are seven, palm oil, soybeans, beef cattle, coffee, cacao, wood and rubber.
The purpose of “Global South” is to establish a significant dialogue with partners to jointly address the impact of the legislation and its application instruments.
The EU norm is considered controversial not only because of its unilateral inclusion in the above list of products, but also because it plans to establish, a “qualification system”, by which the different regions are qualified according to a deforestation “risk level”, high, standard and low. “Global South”, pretends to be consulted on the risk assessment process. Merco Press
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EUDR: Malaysia, 16 other countries convey concern to EU
JAKARTA: Seventeen Like-Minded Countries (LMCs) including Malaysia have requested the European Union (EU) to consider producing countries' concerns in the implemention of the EU Deforestation Regulation (EUDR).
According to the Indonesian Embassy in Brussels, the producing countries collectively expressed their concerns regarding the regulation, which came into force on June 29, via a joint letter signed by their ambassadors.
Besides Malaysia, the signatories are Argentina, Brazil, Bolivia, Colombia, the Dominican Republic, Ecuador, Ghana, Guatemala, Honduras, Indonesia, Ivory Coast, Mexico, Nigeria, Paraguay, Peru, and Thailand.
"The producing countries encourage EU leaders to intensify engagement with producing countries in formulating clear and detailed implementing acts and guidelines for the EUDR, including differentiated compliance and due diligence regimes for commodities and products from smallholders in producing countries," the embassy said in a statement. New Straits Times/ Bernama
“Global South” objects to EU deforestation focus and 'risk assessment' qualification policies
Argentina was part of the “Global South”, which this week made a presentation before the European Union expressing deep concern about the distorting effects of the new EU ruling, from June 2023, referred to goods that are demanded to be free of deforestation consequences.
The “Global South”, is made up of Brazil, Bolivia, Colombia, Ivory Coast, Ecuador, Guatemala, Indonesia, Malaysia, Mexico, Nigeria, Paraguay, Peru, Dominican Republic and Thailand, and the goods involved are seven, palm oil, soybeans, beef cattle, coffee, cacao, wood and rubber.
The purpose of “Global South” is to establish a significant dialogue with partners to jointly address the impact of the legislation and its application instruments.
The EU norm is considered controversial not only because of its unilateral inclusion in the above list of products, but also because it plans to establish, a “qualification system”, by which the different regions are qualified according to a deforestation “risk level”, high, standard and low. “Global South”, pretends to be consulted on the risk assessment process. Merco Press
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EUDR: Malaysia, 16 other countries convey concern to EU
JAKARTA: Seventeen Like-Minded Countries (LMCs) including Malaysia have requested the European Union (EU) to consider producing countries' concerns in the implemention of the EU Deforestation Regulation (EUDR).
According to the Indonesian Embassy in Brussels, the producing countries collectively expressed their concerns regarding the regulation, which came into force on June 29, via a joint letter signed by their ambassadors.
Besides Malaysia, the signatories are Argentina, Brazil, Bolivia, Colombia, the Dominican Republic, Ecuador, Ghana, Guatemala, Honduras, Indonesia, Ivory Coast, Mexico, Nigeria, Paraguay, Peru, and Thailand.
"The producing countries encourage EU leaders to intensify engagement with producing countries in formulating clear and detailed implementing acts and guidelines for the EUDR, including differentiated compliance and due diligence regimes for commodities and products from smallholders in producing countries," the embassy said in a statement. New Straits Times/ Bernama
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September 08, 2023
Indonesia, Brazil Demand Seat at EU’s Green Rules Implementation
(Bloomberg) -- Indonesia and Brazil led over a dozen countries in seeking a voice in the European Union’s implementation of the bloc’s anti-deforestation law.
In a joint letter, 17 countries asked for the bloc to involve commodity-producing nations when drafting the implementing rules, Indonesia’s foreign ministry said in a Friday statement. The countries also urged the EU to avoid worsening trade disruptions and administrative burden including from requirements for traceability.
The world’s top food producers are pushing back against the law that bans imports of raw materials from newly deforested land anywhere in the world, part of the EU’s effort to use trade to pursue climate goals beyond its borders. The rule demands a complex tracking system that could raise costs and sideline millions of small farmers across Asia, Latin America and Africa who may be unable to comply.
The letter of concern was signed in Brussels on Thursday by Argentina, Brazil, Bolivia, Ecuador, Ghana, Guatemala, Honduras, Indonesia, Colombia, Malaysia, Mexico, Nigeria, Ivory Coast, Paraguay, Peru, Thailand and the Dominican Republic. Bloomberg
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EU's Deforestation Regulation poses risks for companies and investors
The EU’s Deforestation Regulation is set to impose new burdens on companies that import some commodities and products made from them and will also have significant implications for investors, according to research by Jefferies.
EUDR came into force on June 29 and all EU member states have new legal obligations to implement it and start preparing to enforce it when it starts to apply to the private sector on December 30 2024.
The regulation will ban the entry of forest-risk commodities – palm oil, beef, coffee, cocoa, soya, wood and rubber – into the EU if their production has driven deforestation or forest degradation since December 31 2020.
European companies are getting ready for the regulation, which will require extensive reporting requirements, risk assessments and risk mitigation that could change trade flows as compliance will be enforced with checks and potentially fines.
Large and medium-sized organisations have 18 months to comply with the measures and smaller companies have two years. The cost for companies to set up due diligence is estimated at €5,000 to €90,000, depending on the complexity of their supply chains, the report said.
The regulation could also reshape ESG-labelled debt issuance as companies incorporate new targets to highlight compliance as data availability increases on deforestation risks in global supply chains.
The Global Forests Report 2023 published by non-profit CDP, formerly the Carbon Disclosure Project, included reporting from more than 1,000 companies on their management of deforestation risk in 2022. It shows that while more than 60% of companies disclosed some risk caused by deforestation, 90% were not prepared, despite the incoming regulation. IFR
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New Regulation on Revenue Sharing Funds for Palm Oil Plantations in Indonesia
The Indonesian government recently issued a regulation on revenue sharing funds for palm oil plantations, Government Regulation No. 38 of 2023 dated July 24, 2023, regarding Palm Oil Plantation Revenue Sharing Fund (“Palm Oil RSF”) (“GR 38/2023”).
Before the enactment of GR 38/2023, only two types of revenue sharing funds were recognized under Minister of Finance (“MOF”) Regulation No. 139/PMK.07/2019 dated October 7, 2019, regarding Management of Revenue Sharing Funds, General Allocation Funds and Special Autonomy Funds, as last amended by MOF Regulation No. 86/PMK.07/2022 dated May 24, 2022. These two types of revenue sharing funds are:
Source of Funds and Calculation
Palm Oil RSF derives from export levies and duties on palm oil, crude palm oil, and/or its derivative products. Generally, the ceiling fund is determined based on the state income realized from the previous year, but it shall not amount to less than 4% of the overall state income. The exact amount of the minimum Palm Oil RSF allocation shall be stipulated by the MOF.
The Palm Oil RSF shall be distributed in the producing areas according to the following percentages: Lexology
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Pertamina, Pelindo tie up on Jakarta 'green' terminal
Indonesian state-owned refiner Pertamina, through its subsidiary Pertamina International Shipping, and state-owned port operation company Pelindo have agreed to jointly develop the Jakarta Integrated Green Terminal (JIGT) in Kalibaru, north Jakarta.
The terminal is projected to have a storage capacity of up to 6.3mn bl and is designed to store fuels such as LPG, gasoline, biodiesel, LNG, crude palm oil and used cooking oil as well as petrochemical products, said Pertamina's president-director Nicke Widyawati. It will also complement the Plumpang integrated terminal, which "currently serves as the backbone of petroleum infrastructure in western Java," according to Pertamina.
The JIGT is designed "to anticipate the increasing energy demands following the national economic growth targets," said Widyawati. Widyawati in June said Indonesia's middle class is growing and its energy demand is increasing by 2-3pc/yr, so more energy is required to maintain economic growth. Argus Media
Indonesia, Brazil Demand Seat at EU’s Green Rules Implementation
(Bloomberg) -- Indonesia and Brazil led over a dozen countries in seeking a voice in the European Union’s implementation of the bloc’s anti-deforestation law.
In a joint letter, 17 countries asked for the bloc to involve commodity-producing nations when drafting the implementing rules, Indonesia’s foreign ministry said in a Friday statement. The countries also urged the EU to avoid worsening trade disruptions and administrative burden including from requirements for traceability.
The world’s top food producers are pushing back against the law that bans imports of raw materials from newly deforested land anywhere in the world, part of the EU’s effort to use trade to pursue climate goals beyond its borders. The rule demands a complex tracking system that could raise costs and sideline millions of small farmers across Asia, Latin America and Africa who may be unable to comply.
The letter of concern was signed in Brussels on Thursday by Argentina, Brazil, Bolivia, Ecuador, Ghana, Guatemala, Honduras, Indonesia, Colombia, Malaysia, Mexico, Nigeria, Ivory Coast, Paraguay, Peru, Thailand and the Dominican Republic. Bloomberg
---------
EU's Deforestation Regulation poses risks for companies and investors
The EU’s Deforestation Regulation is set to impose new burdens on companies that import some commodities and products made from them and will also have significant implications for investors, according to research by Jefferies.
EUDR came into force on June 29 and all EU member states have new legal obligations to implement it and start preparing to enforce it when it starts to apply to the private sector on December 30 2024.
The regulation will ban the entry of forest-risk commodities – palm oil, beef, coffee, cocoa, soya, wood and rubber – into the EU if their production has driven deforestation or forest degradation since December 31 2020.
European companies are getting ready for the regulation, which will require extensive reporting requirements, risk assessments and risk mitigation that could change trade flows as compliance will be enforced with checks and potentially fines.
Large and medium-sized organisations have 18 months to comply with the measures and smaller companies have two years. The cost for companies to set up due diligence is estimated at €5,000 to €90,000, depending on the complexity of their supply chains, the report said.
The regulation could also reshape ESG-labelled debt issuance as companies incorporate new targets to highlight compliance as data availability increases on deforestation risks in global supply chains.
The Global Forests Report 2023 published by non-profit CDP, formerly the Carbon Disclosure Project, included reporting from more than 1,000 companies on their management of deforestation risk in 2022. It shows that while more than 60% of companies disclosed some risk caused by deforestation, 90% were not prepared, despite the incoming regulation. IFR
---------
New Regulation on Revenue Sharing Funds for Palm Oil Plantations in Indonesia
The Indonesian government recently issued a regulation on revenue sharing funds for palm oil plantations, Government Regulation No. 38 of 2023 dated July 24, 2023, regarding Palm Oil Plantation Revenue Sharing Fund (“Palm Oil RSF”) (“GR 38/2023”).
Before the enactment of GR 38/2023, only two types of revenue sharing funds were recognized under Minister of Finance (“MOF”) Regulation No. 139/PMK.07/2019 dated October 7, 2019, regarding Management of Revenue Sharing Funds, General Allocation Funds and Special Autonomy Funds, as last amended by MOF Regulation No. 86/PMK.07/2022 dated May 24, 2022. These two types of revenue sharing funds are:
- tax revenue sharing funds, which include income tax, land and building tax, and excise from tobacco products; and
- revenue sharing funds from natural resources, which include forestry, mineral and coal, oil and gas, geothermal, and fisheries.
Source of Funds and Calculation
Palm Oil RSF derives from export levies and duties on palm oil, crude palm oil, and/or its derivative products. Generally, the ceiling fund is determined based on the state income realized from the previous year, but it shall not amount to less than 4% of the overall state income. The exact amount of the minimum Palm Oil RSF allocation shall be stipulated by the MOF.
The Palm Oil RSF shall be distributed in the producing areas according to the following percentages: Lexology
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Pertamina, Pelindo tie up on Jakarta 'green' terminal
Indonesian state-owned refiner Pertamina, through its subsidiary Pertamina International Shipping, and state-owned port operation company Pelindo have agreed to jointly develop the Jakarta Integrated Green Terminal (JIGT) in Kalibaru, north Jakarta.
The terminal is projected to have a storage capacity of up to 6.3mn bl and is designed to store fuels such as LPG, gasoline, biodiesel, LNG, crude palm oil and used cooking oil as well as petrochemical products, said Pertamina's president-director Nicke Widyawati. It will also complement the Plumpang integrated terminal, which "currently serves as the backbone of petroleum infrastructure in western Java," according to Pertamina.
The JIGT is designed "to anticipate the increasing energy demands following the national economic growth targets," said Widyawati. Widyawati in June said Indonesia's middle class is growing and its energy demand is increasing by 2-3pc/yr, so more energy is required to maintain economic growth. Argus Media
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September 07, 2023
India's top palm oil buyer expects 26% jump in imports to record 10 million tons
MUMBAI, Sept 6 (Reuters) - India's palm oil imports are set to jump 26% to a record high in the 2022/23 year ending on Oct. 31, as a recovery in consumption and competitive prices prompt refiners to increase purchases, the country's top palm oil buyer told Reuters on Wednesday.
Higher purchases by the world's biggest importer of palm oil could help to lower inventories in top producing Indonesia and Malaysia and support benchmark futures .
"Refiners are increasing their purchases for the upcoming festivals. We could see imports of around 1.8 million metric tons in the next two months," said Sanjeev Asthana, chief executive officer at Patanjali Foods Ltd (PAFO.NS).
If India imports 1.8 million tons in the next two months, the total shipments for the 2022/23 marketing year ending on Oct. 31 would be 10 million tons, surpassing the previous high of 9.5 million tons made in 2014/15, he said. Reuters
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Nusantara could be ‘double-edged sword’ for East Malaysia’s oil palm plantations
KUCHING (Sept 6): Key industry experts say the upcoming development of Indonesia’s planned capital city, Nusantara, in Kalimantan could be a double-edged sword for East Malaysia’s palm oil sector.
In a panel session hosted at Bursa Malaysia’s East Malaysia Palm and Lauric Oils Price Outlook Conference and Exhibition 2023 (emPOC 2023), key palm oil industry stakeholders and experts discussed the challenges and opportunities in East Malaysia’s palm oil sector.
Kicking off the discussion on this topic, Malaysian Palm Oil Board (MPOB) Director General Datuk Dr Ahmad Parveez Ghulam Kadir highlighted his belief the arrival of a new Indonesian capital in Kalimantan would act as a catalyst for the region’s palm oil industry growth, especially in the areas of downstream products and its derivatives.
He pointed out that while the market in Nusantara will take some time to grow, its potential market size is far larger than Malaysia’s local market size, which presents an opportunity for local players to potentially capture through export or collaboration. The Borneo Post
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Malaysian Palm Oil Green Conservation Foundation to allocate RM2mil to elephant and orangutan conservation efforts in Sabah
KOTA KINABALU: Over RM2mil has been allocated for the population survey of elephants and orangutans in Sabah.
This funding by the Malaysian Palm Oil Green Conservation Foundation (MPOGCF), is to help various non-government organisations and government agencies such as the Sabah Wildlife Department (SWD) get the latest population count of the two animals.
For the Borneon Elephant Population Survey that is set to run for three years from 2023 to 2026, more than RM1.16ml has been allocated while over RM1.23mil is for the Borneon Orangutan Population survey which will take place for two years until 2025.
MPOGCF acting general manager Hairulazim Mahmud said there is a need to study human-wildlife conflict for both species and devise a new paradigm for the awareness programme that has been carried out by the SWD together with other stakeholders. The Star
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Sime Darby Plantation Celebrates Milestone under Bumiputera Empowerment Agenda
Successful harvesting of Morris pineapples by a Bumiputera entrepreneur on land provided by Sime Darby Plantation
Petaling Jaya, 7 September 2023 - Sime Darby Plantation Berhad (SDP) is pleased to announce a significant milestone in its commitment to the Bumiputera Empowerment Agenda (BEA).
SDP recently celebrated the successful harvesting of Morris pineapples by one of their Bumiputera entrepreneurs, Yusoff Saari, at a small event at Kalumpong Estate, Bagan Serai, Perak.
This achievement is a testament to the dedication and hard work of this entrepreneur, who has been an active participant in the Bumiputera Entrepreneur Development Programme (BEDP) initiated by Sime Darby Plantation in 2019.
The BEDP aims to empower small and medium scale Bumiputera entrepreneurs, as well as individuals who see agriculture as a potential and attractive business, by providing the land for their business to elevate their income through cash crops sales.
The ceremony was officiated by SDP’s Group Managing Director (GMD), Datuk Mohamad Helmy Othman Basha, who underscored the company's unwavering commitment to fostering economic growth and empowerment among Bumiputera entrepreneurs in Malaysia.
“I want to congratulate Mr Yusoff, for all his hard work, clearing 6 acres of land, planting and managing his Morris pineapple plants which have yielded the results we witnessed today. Sime Darby Plantations
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Musim Mas Collaborates with Stakeholders to Deal with Forest and Land Fires
SINGAPORE, Sept. 6, 2023 /PRNewswire/ -- In anticipation of forest and land fires in Indonesia this year, one of the largest integrated palm oil companies globally, Musim Mas, ramped up its training and simulations in June 2023, attended by the Musim Mas' Firefighting team and its Fire-Free Village Program (FFVP). The group's approach is aligned with initiatives from the Indonesian government.
The group recognized the need to change behaviors in communities that traditionally relied on burning to clear lands. To that end, Musim Mas developed its FFVP to promote its "zero burning" policy, provide know-how and resources, and change behaviors for at-risk communities. Musim Mas has trained 75 villages spread across an area exceeding 450,000 hectares to date. Every participating village that successfully maintains a fire-free environment throughout a calendar year becomes eligible for a financial incentive of IDR 25 million per village. These funds can be directed toward procuring fire prevention and control equipment or supporting various community projects. Asia One
India's top palm oil buyer expects 26% jump in imports to record 10 million tons
MUMBAI, Sept 6 (Reuters) - India's palm oil imports are set to jump 26% to a record high in the 2022/23 year ending on Oct. 31, as a recovery in consumption and competitive prices prompt refiners to increase purchases, the country's top palm oil buyer told Reuters on Wednesday.
Higher purchases by the world's biggest importer of palm oil could help to lower inventories in top producing Indonesia and Malaysia and support benchmark futures .
"Refiners are increasing their purchases for the upcoming festivals. We could see imports of around 1.8 million metric tons in the next two months," said Sanjeev Asthana, chief executive officer at Patanjali Foods Ltd (PAFO.NS).
If India imports 1.8 million tons in the next two months, the total shipments for the 2022/23 marketing year ending on Oct. 31 would be 10 million tons, surpassing the previous high of 9.5 million tons made in 2014/15, he said. Reuters
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Nusantara could be ‘double-edged sword’ for East Malaysia’s oil palm plantations
KUCHING (Sept 6): Key industry experts say the upcoming development of Indonesia’s planned capital city, Nusantara, in Kalimantan could be a double-edged sword for East Malaysia’s palm oil sector.
In a panel session hosted at Bursa Malaysia’s East Malaysia Palm and Lauric Oils Price Outlook Conference and Exhibition 2023 (emPOC 2023), key palm oil industry stakeholders and experts discussed the challenges and opportunities in East Malaysia’s palm oil sector.
Kicking off the discussion on this topic, Malaysian Palm Oil Board (MPOB) Director General Datuk Dr Ahmad Parveez Ghulam Kadir highlighted his belief the arrival of a new Indonesian capital in Kalimantan would act as a catalyst for the region’s palm oil industry growth, especially in the areas of downstream products and its derivatives.
He pointed out that while the market in Nusantara will take some time to grow, its potential market size is far larger than Malaysia’s local market size, which presents an opportunity for local players to potentially capture through export or collaboration. The Borneo Post
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Malaysian Palm Oil Green Conservation Foundation to allocate RM2mil to elephant and orangutan conservation efforts in Sabah
KOTA KINABALU: Over RM2mil has been allocated for the population survey of elephants and orangutans in Sabah.
This funding by the Malaysian Palm Oil Green Conservation Foundation (MPOGCF), is to help various non-government organisations and government agencies such as the Sabah Wildlife Department (SWD) get the latest population count of the two animals.
For the Borneon Elephant Population Survey that is set to run for three years from 2023 to 2026, more than RM1.16ml has been allocated while over RM1.23mil is for the Borneon Orangutan Population survey which will take place for two years until 2025.
MPOGCF acting general manager Hairulazim Mahmud said there is a need to study human-wildlife conflict for both species and devise a new paradigm for the awareness programme that has been carried out by the SWD together with other stakeholders. The Star
---------
Sime Darby Plantation Celebrates Milestone under Bumiputera Empowerment Agenda
Successful harvesting of Morris pineapples by a Bumiputera entrepreneur on land provided by Sime Darby Plantation
Petaling Jaya, 7 September 2023 - Sime Darby Plantation Berhad (SDP) is pleased to announce a significant milestone in its commitment to the Bumiputera Empowerment Agenda (BEA).
SDP recently celebrated the successful harvesting of Morris pineapples by one of their Bumiputera entrepreneurs, Yusoff Saari, at a small event at Kalumpong Estate, Bagan Serai, Perak.
This achievement is a testament to the dedication and hard work of this entrepreneur, who has been an active participant in the Bumiputera Entrepreneur Development Programme (BEDP) initiated by Sime Darby Plantation in 2019.
The BEDP aims to empower small and medium scale Bumiputera entrepreneurs, as well as individuals who see agriculture as a potential and attractive business, by providing the land for their business to elevate their income through cash crops sales.
The ceremony was officiated by SDP’s Group Managing Director (GMD), Datuk Mohamad Helmy Othman Basha, who underscored the company's unwavering commitment to fostering economic growth and empowerment among Bumiputera entrepreneurs in Malaysia.
“I want to congratulate Mr Yusoff, for all his hard work, clearing 6 acres of land, planting and managing his Morris pineapple plants which have yielded the results we witnessed today. Sime Darby Plantations
---------
Musim Mas Collaborates with Stakeholders to Deal with Forest and Land Fires
SINGAPORE, Sept. 6, 2023 /PRNewswire/ -- In anticipation of forest and land fires in Indonesia this year, one of the largest integrated palm oil companies globally, Musim Mas, ramped up its training and simulations in June 2023, attended by the Musim Mas' Firefighting team and its Fire-Free Village Program (FFVP). The group's approach is aligned with initiatives from the Indonesian government.
The group recognized the need to change behaviors in communities that traditionally relied on burning to clear lands. To that end, Musim Mas developed its FFVP to promote its "zero burning" policy, provide know-how and resources, and change behaviors for at-risk communities. Musim Mas has trained 75 villages spread across an area exceeding 450,000 hectares to date. Every participating village that successfully maintains a fire-free environment throughout a calendar year becomes eligible for a financial incentive of IDR 25 million per village. These funds can be directed toward procuring fire prevention and control equipment or supporting various community projects. Asia One
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September 06, 2023
Projected to Reach $420.47 Billion by 2028, the Global Vegetable Oil Market Nourishes Diets and Industries Alike
Dublin, Sept. 05, 2023 (GLOBE NEWSWIRE) -- The "Global Vaccine Market, Size, Global Forecast 2023-2028, Industry Trends, Growth, Impact of Inflation, Opportunity Company Analysis" report has been added to ResearchAndMarkets.com's offering.
The global Vegetable Oil Market is anticipated to reach a valuation of US$ 420.47 billion by 2028. Vegetable oils play a crucial role in global diets, serving as a significant source of fats that contribute to around 10% of daily caloric intake, equivalent to about 300 kcal per day. Vegetable oils are the second most important food group after cereals. They offer essential nutritional benefits, being rich in omega-3 and omega-6 fatty acids, as well as vitamins E and K.
Beyond their culinary applications, vegetable oils provide an affordable alternative for less affluent consumers who might not be able to afford more expensive options like butter or animal fat-based products. The global trade of vegetable oils is substantial, with imports accounting for approximately 40% of global consumption, surpassing other commodities like grains, where imports make up less than 20%. Yahoo
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APPEC: Industry uncertain on using palm oil as SAF feedstock
Sustainability concerns may hinder palm oil uptake
Neste looks to other feedstocks for its SAF plans
Platts assessed PFAD-based SAF at $1,571/mt Sep 5
The use of palm oil to make sustainable aviation fuel would provide more flexibility to producers in terms of feedstocks, but sustainability concerns are a major impediment to its use, trade heads said at the Asia Pacific Petroleum Conference 2023 organized by S&P Global Commodity Insights.
"We should take a pragmatic approach based on science and evidence, instead of an ideological approach based on pre-conceived bias and dogma," Chee said, speaking on developing sustainable transport.
The industry view on palm oil as a SAF feedstock was less optimistic, however, citing problems with the EU's perception of deforestation risks in Indonesia and Malaysia, the two largest palm oil producers in the world.
"The question of crude palm oil [as a feedstock] is highly challenging but residue and waste are not. We have novel vegetable oil and lignocellulosic biofuels which don't affect land use availability, Sami Jauhiainen acting EVP and vice president APAC, Renewable Aviation, Neste told S&P Global.
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Despite the EU deforestation regulation, companies are investing more in palm oil. Why?
Something strange is happening in the palm oil sector.
Despite the impending enforcement of the EU Deforestation Regulation (EUDR), numerous companies are intensifying their investment in landscape initiatives.
This phenomenon is surprising as many of us feared that the EUDR would push companies away from sourcing from higher forest-risk jurisdictions.
Some companies are segregating mills and refineries for Europe and focussing on sourcing from plantations distant from remaining forest, and away from smallholder supply.
But others are making new investments in landscape initiatives in Indonesia and Malaysia which include many thousands of small farmers. Euronews
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Amid global backlash against palm oil, Sarawak premier calls on stakeholders to work together to overcome challenges
KUCHING, Sept 5 — Sarawak Premier Tan Sri Abang Johari Openg today called on government agencies, industry associations, non-governmental organisations, and local communities to collaborate in overcoming challenges facing the palm oil industry worldwide.
He said stakeholders, by working together, can address environmental and social issues, improve best practices, and promote responsible palm oil production amid growing consumer awareness and demand for sustainably sourced products.
“The palm oil industry has faced criticism due to its association with deforestation, wildlife habitat destruction, and greenhouse gas emissions,” he said in his address at the East Malaysia Palm and Lauric Oils Price Outlook Conference and Exhibition here.
“Building and maintaining consumer trust through transparent and traceable supply chains is vital for the industry’s future growth and market access.” Malay Mail
Projected to Reach $420.47 Billion by 2028, the Global Vegetable Oil Market Nourishes Diets and Industries Alike
Dublin, Sept. 05, 2023 (GLOBE NEWSWIRE) -- The "Global Vaccine Market, Size, Global Forecast 2023-2028, Industry Trends, Growth, Impact of Inflation, Opportunity Company Analysis" report has been added to ResearchAndMarkets.com's offering.
The global Vegetable Oil Market is anticipated to reach a valuation of US$ 420.47 billion by 2028. Vegetable oils play a crucial role in global diets, serving as a significant source of fats that contribute to around 10% of daily caloric intake, equivalent to about 300 kcal per day. Vegetable oils are the second most important food group after cereals. They offer essential nutritional benefits, being rich in omega-3 and omega-6 fatty acids, as well as vitamins E and K.
Beyond their culinary applications, vegetable oils provide an affordable alternative for less affluent consumers who might not be able to afford more expensive options like butter or animal fat-based products. The global trade of vegetable oils is substantial, with imports accounting for approximately 40% of global consumption, surpassing other commodities like grains, where imports make up less than 20%. Yahoo
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APPEC: Industry uncertain on using palm oil as SAF feedstock
Sustainability concerns may hinder palm oil uptake
Neste looks to other feedstocks for its SAF plans
Platts assessed PFAD-based SAF at $1,571/mt Sep 5
The use of palm oil to make sustainable aviation fuel would provide more flexibility to producers in terms of feedstocks, but sustainability concerns are a major impediment to its use, trade heads said at the Asia Pacific Petroleum Conference 2023 organized by S&P Global Commodity Insights.
"We should take a pragmatic approach based on science and evidence, instead of an ideological approach based on pre-conceived bias and dogma," Chee said, speaking on developing sustainable transport.
The industry view on palm oil as a SAF feedstock was less optimistic, however, citing problems with the EU's perception of deforestation risks in Indonesia and Malaysia, the two largest palm oil producers in the world.
"The question of crude palm oil [as a feedstock] is highly challenging but residue and waste are not. We have novel vegetable oil and lignocellulosic biofuels which don't affect land use availability, Sami Jauhiainen acting EVP and vice president APAC, Renewable Aviation, Neste told S&P Global.
---------
Despite the EU deforestation regulation, companies are investing more in palm oil. Why?
Something strange is happening in the palm oil sector.
Despite the impending enforcement of the EU Deforestation Regulation (EUDR), numerous companies are intensifying their investment in landscape initiatives.
This phenomenon is surprising as many of us feared that the EUDR would push companies away from sourcing from higher forest-risk jurisdictions.
Some companies are segregating mills and refineries for Europe and focussing on sourcing from plantations distant from remaining forest, and away from smallholder supply.
But others are making new investments in landscape initiatives in Indonesia and Malaysia which include many thousands of small farmers. Euronews
---------
Amid global backlash against palm oil, Sarawak premier calls on stakeholders to work together to overcome challenges
KUCHING, Sept 5 — Sarawak Premier Tan Sri Abang Johari Openg today called on government agencies, industry associations, non-governmental organisations, and local communities to collaborate in overcoming challenges facing the palm oil industry worldwide.
He said stakeholders, by working together, can address environmental and social issues, improve best practices, and promote responsible palm oil production amid growing consumer awareness and demand for sustainably sourced products.
“The palm oil industry has faced criticism due to its association with deforestation, wildlife habitat destruction, and greenhouse gas emissions,” he said in his address at the East Malaysia Palm and Lauric Oils Price Outlook Conference and Exhibition here.
“Building and maintaining consumer trust through transparent and traceable supply chains is vital for the industry’s future growth and market access.” Malay Mail
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September 05, 2023
Palm oil buying lifts India's August edible oil imports to record -dealers
MUMBAI, Sept 4 (Reuters) - India's edible oil imports in August rose 5% to a record 1.85 million metric tons as refiners purchased more than 1 million tons of palm oil for the second consecutive month to build stocks for upcoming festivals, four dealers told Reuters.
Higher purchases by the world's biggest importer of vegetable oils could help to lower palm oil stocks in Indonesia and Malaysia and support benchmark futures . The buying has helped strengthen soybean oil futures and could reduce inventories in sunflower oil-producing Black Sea countries.
India's average monthly edible oil imports in the 2021/22 marketing year were 1.17 million tons, trade body Solvent Extractors' Association of India (SEA) said. In July, India imported 1.76 million tons, which was also a record high.
Palm oil imports increased from 1.09 million tons in July to 1.12 million tons in August, the highest in nine months, according to average estimates from the dealers.
The SEA is likely to publish its August vegetable oil import data by mid-September. Reuters
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How biofuels could help Brazil mitigate greenhouse gas emissions
Regulation of Brazil’s carbon credit market could stimulate the development of local biofuels.
That is according to Rodolfo Taveira and Rodrigo Borges, principal and manager of energy and natural resources, respectively, at consultancy firm Oliver Wyman.
The consultants say the environmental benefits of low-carbon fuels could be better perceived if there was a carbon price.
"Currently, in the case of ethanol, for example, the benefit is only analyzed in terms of energy equivalence. With a price on carbon, ethanol could be [economically] viable in states where it isn't today," Borges told BNamericas.
Another growth front for biofuels in Brazil is the increase in the mandatory mix for ethanol and biodiesel in gasoline and diesel.
Today, the mandatory portion of anhydrous ethanol in gasoline is 27.5%, and the government is studying increasing it to 30%.
The mandatory mix of biodiesel in diesel is 12%, and the plan is to increase it to 13% next April, 14% in April 2025 and 15% in April 2026. BNAmericas
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Singapore supports use of palm oil in sustainable aviation fuel production
[JAKARTA] PALM oil should be included as feedstock for the production of sustainable aviation fuel (SAF), said Acting Transport Minister Chee Hong Tat.
He made the comments at a regional meeting of transport ministers from the Association of South-east Asian Nations (Asean).
“We should take a pragmatic approach based on science and evidence, instead of an ideological approach based on pre-conceived bias and dogma,” said Chee, who was speaking on developing sustainable transport with his Asean counterparts on Monday (Sep 4).
This is in contrast to the European Union (EU), which has banned the use of palm oil to manufacture SAF on the basis that palm oil production has been associated with deforestation.
The EU has imposed several rules over the years restricting palm oil imports, often sparking protests from Malaysia and Indonesia, the world’s top palm oil producers.
The use of palm oil as a feedstock in SAF production has been controversial. While there are concerns over whether palm oil has been sourced sustainably, it is the most abundant feedstock. Business TimesSG
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IPB researchers look into palm waste fabric
Researchers at IPB University in Bogor, West Java, are looking into turning empty palm fruit bunch waste into threads with economic value for the fashion and creative industries. Siti Nikmatin, one of the researchers, said the biomass could be turned into valuable biomaterial for use in shoes, bags and hats, among other products. “It is environmentally friendly and low-emission, but it is also produced without [harmful] chemicals, which should make it economical and competitive in the market,” Siti told The Jakarta Post on Monday.
Empty fruit bunch (EFB) is a biomass created during the palm oil production process. As fresh fruit bunches are turned into oil in the mill, wastes primarily in the form of EFB are produced, amounting to around 20 to 25 percent weight per weight. Manufacturers have been looking for alternative uses of the EFB and have increasingly used it as fuel. EFB commonly has a high moisture content, which lowers the combustion temperature and reduces energy efficiency. Researchers around the world have also started to extract fibers from oil palm parts, including EFB, for use in making hard board-like items, such as a pallet. Jakarta Post
Palm oil buying lifts India's August edible oil imports to record -dealers
MUMBAI, Sept 4 (Reuters) - India's edible oil imports in August rose 5% to a record 1.85 million metric tons as refiners purchased more than 1 million tons of palm oil for the second consecutive month to build stocks for upcoming festivals, four dealers told Reuters.
Higher purchases by the world's biggest importer of vegetable oils could help to lower palm oil stocks in Indonesia and Malaysia and support benchmark futures . The buying has helped strengthen soybean oil futures and could reduce inventories in sunflower oil-producing Black Sea countries.
India's average monthly edible oil imports in the 2021/22 marketing year were 1.17 million tons, trade body Solvent Extractors' Association of India (SEA) said. In July, India imported 1.76 million tons, which was also a record high.
Palm oil imports increased from 1.09 million tons in July to 1.12 million tons in August, the highest in nine months, according to average estimates from the dealers.
The SEA is likely to publish its August vegetable oil import data by mid-September. Reuters
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How biofuels could help Brazil mitigate greenhouse gas emissions
Regulation of Brazil’s carbon credit market could stimulate the development of local biofuels.
That is according to Rodolfo Taveira and Rodrigo Borges, principal and manager of energy and natural resources, respectively, at consultancy firm Oliver Wyman.
The consultants say the environmental benefits of low-carbon fuels could be better perceived if there was a carbon price.
"Currently, in the case of ethanol, for example, the benefit is only analyzed in terms of energy equivalence. With a price on carbon, ethanol could be [economically] viable in states where it isn't today," Borges told BNamericas.
Another growth front for biofuels in Brazil is the increase in the mandatory mix for ethanol and biodiesel in gasoline and diesel.
Today, the mandatory portion of anhydrous ethanol in gasoline is 27.5%, and the government is studying increasing it to 30%.
The mandatory mix of biodiesel in diesel is 12%, and the plan is to increase it to 13% next April, 14% in April 2025 and 15% in April 2026. BNAmericas
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Singapore supports use of palm oil in sustainable aviation fuel production
[JAKARTA] PALM oil should be included as feedstock for the production of sustainable aviation fuel (SAF), said Acting Transport Minister Chee Hong Tat.
He made the comments at a regional meeting of transport ministers from the Association of South-east Asian Nations (Asean).
“We should take a pragmatic approach based on science and evidence, instead of an ideological approach based on pre-conceived bias and dogma,” said Chee, who was speaking on developing sustainable transport with his Asean counterparts on Monday (Sep 4).
This is in contrast to the European Union (EU), which has banned the use of palm oil to manufacture SAF on the basis that palm oil production has been associated with deforestation.
The EU has imposed several rules over the years restricting palm oil imports, often sparking protests from Malaysia and Indonesia, the world’s top palm oil producers.
The use of palm oil as a feedstock in SAF production has been controversial. While there are concerns over whether palm oil has been sourced sustainably, it is the most abundant feedstock. Business TimesSG
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IPB researchers look into palm waste fabric
Researchers at IPB University in Bogor, West Java, are looking into turning empty palm fruit bunch waste into threads with economic value for the fashion and creative industries. Siti Nikmatin, one of the researchers, said the biomass could be turned into valuable biomaterial for use in shoes, bags and hats, among other products. “It is environmentally friendly and low-emission, but it is also produced without [harmful] chemicals, which should make it economical and competitive in the market,” Siti told The Jakarta Post on Monday.
Empty fruit bunch (EFB) is a biomass created during the palm oil production process. As fresh fruit bunches are turned into oil in the mill, wastes primarily in the form of EFB are produced, amounting to around 20 to 25 percent weight per weight. Manufacturers have been looking for alternative uses of the EFB and have increasingly used it as fuel. EFB commonly has a high moisture content, which lowers the combustion temperature and reduces energy efficiency. Researchers around the world have also started to extract fibers from oil palm parts, including EFB, for use in making hard board-like items, such as a pallet. Jakarta Post
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September 04, 2023
Tanzania bolsters research on palm oil seeds to enhance production of edible oil
The government of Tanzania has embarked on a program to strengthen agricultural research institutes to enable them to carry out research on the production of high-quality palm oil and sunflower seeds to enhance the production of edible oil locally, a senior official told parliament on Friday.
Deputy Minister for Industry and Trade Exaud Kigahe said the move was aimed at ending heavy dependence on imported edible oil.
Kigahe said the government was collaborating with stakeholders to implement strategies to develop the palm oil and sunflower sub-sector-the leading producers of edible oil in the country.
Apart from inviting investors in the production of edible oil, he said, the government has been working to enable the use of modern technology to increase the production of edible oil in the country.
He said the government embarked on a plan in 2021 to improve palm oil seeds production in Kigoma region where it was envisaged to plant 20 million tree seedlings in a period of four years. News Ghana
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Indonesia, Malaysia push biofuel to offset palm oil price downturn
Falling prices hurt companies; risks loom from El Nino and EU deforestation law
JAKARTA/KUALA LUMPUR -- Weak prices for palm oil, a worsening outlook and a backlash against the commodity over deforestation concerns are pushing Indonesia and Malaysia -- the world's biggest producers -- to boost domestic use through developing jet fuels and expanding biodiesel programs.
Widely used in Indonesia for cooking oil and applications such as personal care and cleaning products, palm oil is an important sector in Southeast Asia's largest economy with the industry employing millions of workers. Indonesia is the world's largest exporter and it is the country's top export commodity, apart from coal. Palm oil is similarly important in neighboring Malaysia, the world's second-largest producer and exporter.
The benchmark crude palm oil (CPO) price in Malaysia ranged from 3,500 ringgit ($755) to 4,200 ringgit per tonne between January and June. That is compared to the all-time high in April 2022 of almost 7,000 ringgit per tonne, following the launch of Russia's invasion of Ukraine, which sent prices of all edible oils skyrocketing. That run-up in prices for palm oil, traditionally the cheapest among vegetable oils, was a continuation of one caused by pandemic-related disruptions since late 2020. Nikkei Asia
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Indonesia and Malaysia Start Negotiations with EU on Palm Oil Regulation
Negotiations have begun between Indonesia, Malaysia, and the European Union (EU) to address concerns related to a new deforestation law that would make it more challenging for palm oil to enter European markets. As the world’s top two palm oil producers, Indonesia and Malaysia account for 85% of global palm oil exports, and they would be heavily affected by the EU Deforestation-Free Regulation (EUDR), which restricts imports into the EU of commodities sourced from deforested areas.
During the first meeting of the joint task force, delegates discussed the risk classification given to producer countries by the EUDR, as well as the role of sustainability certification schemes such as the Roundtable on Sustainable Palm Oil (RSPO) in meeting the regulation’s requirements. Indonesian officials expressed their concerns that the EUDR discriminates against small farmers who manage a significant portion of the country’s plantations and would have difficulty complying with the strict requirements of the regulation. Energy Portal
Tanzania bolsters research on palm oil seeds to enhance production of edible oil
The government of Tanzania has embarked on a program to strengthen agricultural research institutes to enable them to carry out research on the production of high-quality palm oil and sunflower seeds to enhance the production of edible oil locally, a senior official told parliament on Friday.
Deputy Minister for Industry and Trade Exaud Kigahe said the move was aimed at ending heavy dependence on imported edible oil.
Kigahe said the government was collaborating with stakeholders to implement strategies to develop the palm oil and sunflower sub-sector-the leading producers of edible oil in the country.
Apart from inviting investors in the production of edible oil, he said, the government has been working to enable the use of modern technology to increase the production of edible oil in the country.
He said the government embarked on a plan in 2021 to improve palm oil seeds production in Kigoma region where it was envisaged to plant 20 million tree seedlings in a period of four years. News Ghana
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Indonesia, Malaysia push biofuel to offset palm oil price downturn
Falling prices hurt companies; risks loom from El Nino and EU deforestation law
JAKARTA/KUALA LUMPUR -- Weak prices for palm oil, a worsening outlook and a backlash against the commodity over deforestation concerns are pushing Indonesia and Malaysia -- the world's biggest producers -- to boost domestic use through developing jet fuels and expanding biodiesel programs.
Widely used in Indonesia for cooking oil and applications such as personal care and cleaning products, palm oil is an important sector in Southeast Asia's largest economy with the industry employing millions of workers. Indonesia is the world's largest exporter and it is the country's top export commodity, apart from coal. Palm oil is similarly important in neighboring Malaysia, the world's second-largest producer and exporter.
The benchmark crude palm oil (CPO) price in Malaysia ranged from 3,500 ringgit ($755) to 4,200 ringgit per tonne between January and June. That is compared to the all-time high in April 2022 of almost 7,000 ringgit per tonne, following the launch of Russia's invasion of Ukraine, which sent prices of all edible oils skyrocketing. That run-up in prices for palm oil, traditionally the cheapest among vegetable oils, was a continuation of one caused by pandemic-related disruptions since late 2020. Nikkei Asia
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Indonesia and Malaysia Start Negotiations with EU on Palm Oil Regulation
Negotiations have begun between Indonesia, Malaysia, and the European Union (EU) to address concerns related to a new deforestation law that would make it more challenging for palm oil to enter European markets. As the world’s top two palm oil producers, Indonesia and Malaysia account for 85% of global palm oil exports, and they would be heavily affected by the EU Deforestation-Free Regulation (EUDR), which restricts imports into the EU of commodities sourced from deforested areas.
During the first meeting of the joint task force, delegates discussed the risk classification given to producer countries by the EUDR, as well as the role of sustainability certification schemes such as the Roundtable on Sustainable Palm Oil (RSPO) in meeting the regulation’s requirements. Indonesian officials expressed their concerns that the EUDR discriminates against small farmers who manage a significant portion of the country’s plantations and would have difficulty complying with the strict requirements of the regulation. Energy Portal
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September 03, 2023
New European Regulation Poses Risks to African Farmers
By Editor / September 2, 2023 / Top 10 News
The European Union regulation on deforestation-free products (EUDR), adopted by the European Parliament and Council in April and May this year, means large companies will need to comply with the regulations by December 2024. Regulation that aims to ensure the European Union no longer imports commodities directly linked to deforestation is to be welcomed. It is an opportunity to ensure that we all play a part in halting and reversing deforestation across production landscapes everywhere. However, agricultural commodities covered by the regulation – cattle, cocoa, coffee, palm oil, soy, wood, rubber, charcoal and printed paper products – are also key economic drivers to many African countries, where up to 25% of GDP comes from agriculture, and sometimes 60% of employment. Africa
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Indonesia and Malaysia Start Negotiations with EU on Palm Oil Regulation
Negotiations have begun between Indonesia, Malaysia, and the European Union (EU) to address concerns related to a new deforestation law that would make it more challenging for palm oil to enter European markets. As the world’s top two palm oil producers, Indonesia and Malaysia account for 85% of global palm oil exports, and they would be heavily affected by the EU Deforestation-Free Regulation (EUDR), which restricts imports into the EU of commodities sourced from deforested areas.
During the first meeting of the joint task force, delegates discussed the risk classification given to producer countries by the EUDR, as well as the role of sustainability certification schemes such as the Roundtable on Sustainable Palm Oil (RSPO) in meeting the regulation’s requirements. Indonesian officials expressed their concerns that the EUDR discriminates against small farmers who manage a significant portion of the country’s plantations and would have difficulty complying with the strict requirements of the regulation.
The establishment of the palm oil task force aims to address these concerns and find solutions that satisfy all parties involved. The discussions also focused on the need for the EU to recognize existing certification schemes like RSPO and Indonesia’s own ISPO (Indonesian Sustainable Palm Oil) in order to avoid the need for new compliance standards.
The Indonesian government highlighted the importance of ensuring that palm oil exports to the EU meet the latter’s standards while emphasizing the traceability of palm oil to the plantation level. The EU delegation showed a positive attitude toward Indonesia’s proposals during the meeting, indicating a potential for successful negotiations. Energy Portal
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New European Regulation Poses Risks to African Farmers
By Editor / September 2, 2023 / Top 10 News
The European Union regulation on deforestation-free products (EUDR), adopted by the European Parliament and Council in April and May this year, means large companies will need to comply with the regulations by December 2024. Regulation that aims to ensure the European Union no longer imports commodities directly linked to deforestation is to be welcomed. It is an opportunity to ensure that we all play a part in halting and reversing deforestation across production landscapes everywhere. However, agricultural commodities covered by the regulation – cattle, cocoa, coffee, palm oil, soy, wood, rubber, charcoal and printed paper products – are also key economic drivers to many African countries, where up to 25% of GDP comes from agriculture, and sometimes 60% of employment. Africa
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Indonesia and Malaysia Start Negotiations with EU on Palm Oil Regulation
Negotiations have begun between Indonesia, Malaysia, and the European Union (EU) to address concerns related to a new deforestation law that would make it more challenging for palm oil to enter European markets. As the world’s top two palm oil producers, Indonesia and Malaysia account for 85% of global palm oil exports, and they would be heavily affected by the EU Deforestation-Free Regulation (EUDR), which restricts imports into the EU of commodities sourced from deforested areas.
During the first meeting of the joint task force, delegates discussed the risk classification given to producer countries by the EUDR, as well as the role of sustainability certification schemes such as the Roundtable on Sustainable Palm Oil (RSPO) in meeting the regulation’s requirements. Indonesian officials expressed their concerns that the EUDR discriminates against small farmers who manage a significant portion of the country’s plantations and would have difficulty complying with the strict requirements of the regulation.
The establishment of the palm oil task force aims to address these concerns and find solutions that satisfy all parties involved. The discussions also focused on the need for the EU to recognize existing certification schemes like RSPO and Indonesia’s own ISPO (Indonesian Sustainable Palm Oil) in order to avoid the need for new compliance standards.
The Indonesian government highlighted the importance of ensuring that palm oil exports to the EU meet the latter’s standards while emphasizing the traceability of palm oil to the plantation level. The EU delegation showed a positive attitude toward Indonesia’s proposals during the meeting, indicating a potential for successful negotiations. Energy Portal
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September 01, 2023
EU Deforestation Regulation (EUDR) must not ignore needs of African farmers
Regulation that ensures Europe does not import products directly linked to deforestation is welcome, but it poses risks to African farmers that must be resolved.
Regulation is a hot topic in the corporate board rooms and conferences of Europe as well as the community halls and government offices across Africa. Why? The European Union regulation on deforestation-free products (EUDR), adopted by the European Parliament and Council in April and May this year, means large companies will need to comply with the regulations by December 2024.
Regulation that aims to ensure the European Union no longer imports commodities directly linked to deforestation is to be welcomed. It is an opportunity to ensure that we all play a part in halting and reversing deforestation across production landscapes everywhere.
And we need to acknowledge the role that agricultural commodity development plays as a driver of deforestation, and the impact this has on regional and global climate, as well as on the people and communities who live in and rely on the forests.
Threats to African agriculture African Business
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Indonesia-East Aceh supports ‘PPI Compact’ as commitment to sustainable development
The East Aceh administration together with key stakeholders signed a memorandum of understanding (MoU) on Aug. 30 regarding the advancement of sustainable production, protection of forest areas and social inclusion (PPI), referred to as the PPI Compact, for the development of sustainable commodities in East Aceh. The signing of the PPI Compact was conducted directly by East Aceh acting regent Mahyuddin, together with East Aceh Regional People’s Representative Council (DPRK) chairman Fattah Fitri, Aceh Region III Forest Management Unit (KPH) head Fajri, Sustainable Trade Initiative (IDH) chairman Nassat D. Idris, Leuser Conservation Forum (FKL) head M. Isa, chairman of the East Aceh Indonesian Palm Oil Association (GAPKI) Denny Ramadhan Nasution, and chairman of the East Aceh Andalan Fisherman and Farmers Community (KTNA) Amir Aziz.
Mahyuddin explained that the institutionalization of the PPI Compact in East Aceh has gone through several stages of work. Since February, a series of informal and formal discussions have been conducted with various stakeholders to map out issues and needs related to sustainable production, protection of forest areas and social inclusion in East Aceh. The Jakarta Post
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PepsiCo returns to Indonesia with $200m investment four years after ending 30-year JV
01-Sep-2023 By Gill Hyslop
The Lay’s and Cheetos maker has earmarked a substantial investment in the Southeast Asia island nation over a 10-year period and has broken ground for a new snack factory in the West Java town of Cikarang. Bakery and Snacks
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B30 biodiesel mandate pencilled in for 2030 in Malaysia
The Malaysian government has launched the second phase of its National Energy Transition Roadmap (NETR).
This was launched by Prime Minister Datuk Seri Anwar Ibrahim and the NETR includes the implementation of a B30 biodiesel blending mandate.
This has a target date of 2030 for B30 biodiesel to be mandated “when POGO [palm oil vs low-sulphur gas oil] spreads are projected to be economically viable,” according to one of the key initiatives of the programme.
B30 biodiesel first came to light in February 2020 by then Prime Minister Tun Dr Mahathir Mohamad at the launch of the 2020 National Automotive Policy (NAP), that stated B30 biodiesel was to be rolled out in Malaysia by 2025.
In addition to B30 biodiesel implementation, the green mobility (heavy vehicles) energy transition lever also aims to introduce future powertrains for heavy vehicles, which is to track the advancement in technology for future fuel powertrains.
The future fuel powertrains initiative also aims to “explore the utilisation of hydrogen for long-haul trucks and battery-electric vehicles (BEV) for short- to medium-haul trucks.” Biofuels News
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Malaysia's palm oil sector to benefit from UK's CPTPP entry
The Malaysian palm oil industry will benefit from the UK’s entry into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), according to an analyst quoted by The Star.
Malaysia’s successful bid to get the UK to cut its palm oil tariffs from its current rate of up to 12% to nil immediately on entering the pact would drive up exports to the UK, SPI Asset Management managing partner Stephen Innes was quoted as saying in the 19 July report.
Bilateral trade between the two countries exceeded US$7.3bn (RM33.4bn) in 2022 with the UK recording a trade surplus of around US$786M (RM3.5bn), The Star wrote.
The Malaysian Palm Oil Board (MPOB) expects palm oil exports to increase by 3.7% to 16.3M tonnes this year due to continuous demand from importing countries, according to the report.
“The UK is not self-sufficient in food production; it imports 48% of the total food consumed and the proportion is rising. Therefore, as a food-trading nation, the UK relies on imports,” Innes said.
Malaysian national news agency Bernama quoted Dr Mohd Afzanizam Abdul Rashid, Bank Muamalat Malaysia chief economist and social finance head, as saying the CPTPP should help to promote two-way trade and investment as the cost of doing business would be more cost-effective following the UK’s admission into the pact. OFI
Palm oil news. September 2023. CSPO Watch
EU Deforestation Regulation (EUDR) must not ignore needs of African farmers
Regulation that ensures Europe does not import products directly linked to deforestation is welcome, but it poses risks to African farmers that must be resolved.
Regulation is a hot topic in the corporate board rooms and conferences of Europe as well as the community halls and government offices across Africa. Why? The European Union regulation on deforestation-free products (EUDR), adopted by the European Parliament and Council in April and May this year, means large companies will need to comply with the regulations by December 2024.
Regulation that aims to ensure the European Union no longer imports commodities directly linked to deforestation is to be welcomed. It is an opportunity to ensure that we all play a part in halting and reversing deforestation across production landscapes everywhere.
And we need to acknowledge the role that agricultural commodity development plays as a driver of deforestation, and the impact this has on regional and global climate, as well as on the people and communities who live in and rely on the forests.
Threats to African agriculture African Business
---------
Indonesia-East Aceh supports ‘PPI Compact’ as commitment to sustainable development
The East Aceh administration together with key stakeholders signed a memorandum of understanding (MoU) on Aug. 30 regarding the advancement of sustainable production, protection of forest areas and social inclusion (PPI), referred to as the PPI Compact, for the development of sustainable commodities in East Aceh. The signing of the PPI Compact was conducted directly by East Aceh acting regent Mahyuddin, together with East Aceh Regional People’s Representative Council (DPRK) chairman Fattah Fitri, Aceh Region III Forest Management Unit (KPH) head Fajri, Sustainable Trade Initiative (IDH) chairman Nassat D. Idris, Leuser Conservation Forum (FKL) head M. Isa, chairman of the East Aceh Indonesian Palm Oil Association (GAPKI) Denny Ramadhan Nasution, and chairman of the East Aceh Andalan Fisherman and Farmers Community (KTNA) Amir Aziz.
Mahyuddin explained that the institutionalization of the PPI Compact in East Aceh has gone through several stages of work. Since February, a series of informal and formal discussions have been conducted with various stakeholders to map out issues and needs related to sustainable production, protection of forest areas and social inclusion in East Aceh. The Jakarta Post
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PepsiCo returns to Indonesia with $200m investment four years after ending 30-year JV
01-Sep-2023 By Gill Hyslop
The Lay’s and Cheetos maker has earmarked a substantial investment in the Southeast Asia island nation over a 10-year period and has broken ground for a new snack factory in the West Java town of Cikarang. Bakery and Snacks
---------
B30 biodiesel mandate pencilled in for 2030 in Malaysia
The Malaysian government has launched the second phase of its National Energy Transition Roadmap (NETR).
This was launched by Prime Minister Datuk Seri Anwar Ibrahim and the NETR includes the implementation of a B30 biodiesel blending mandate.
This has a target date of 2030 for B30 biodiesel to be mandated “when POGO [palm oil vs low-sulphur gas oil] spreads are projected to be economically viable,” according to one of the key initiatives of the programme.
B30 biodiesel first came to light in February 2020 by then Prime Minister Tun Dr Mahathir Mohamad at the launch of the 2020 National Automotive Policy (NAP), that stated B30 biodiesel was to be rolled out in Malaysia by 2025.
In addition to B30 biodiesel implementation, the green mobility (heavy vehicles) energy transition lever also aims to introduce future powertrains for heavy vehicles, which is to track the advancement in technology for future fuel powertrains.
The future fuel powertrains initiative also aims to “explore the utilisation of hydrogen for long-haul trucks and battery-electric vehicles (BEV) for short- to medium-haul trucks.” Biofuels News
---------
Malaysia's palm oil sector to benefit from UK's CPTPP entry
The Malaysian palm oil industry will benefit from the UK’s entry into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), according to an analyst quoted by The Star.
Malaysia’s successful bid to get the UK to cut its palm oil tariffs from its current rate of up to 12% to nil immediately on entering the pact would drive up exports to the UK, SPI Asset Management managing partner Stephen Innes was quoted as saying in the 19 July report.
Bilateral trade between the two countries exceeded US$7.3bn (RM33.4bn) in 2022 with the UK recording a trade surplus of around US$786M (RM3.5bn), The Star wrote.
The Malaysian Palm Oil Board (MPOB) expects palm oil exports to increase by 3.7% to 16.3M tonnes this year due to continuous demand from importing countries, according to the report.
“The UK is not self-sufficient in food production; it imports 48% of the total food consumed and the proportion is rising. Therefore, as a food-trading nation, the UK relies on imports,” Innes said.
Malaysian national news agency Bernama quoted Dr Mohd Afzanizam Abdul Rashid, Bank Muamalat Malaysia chief economist and social finance head, as saying the CPTPP should help to promote two-way trade and investment as the cost of doing business would be more cost-effective following the UK’s admission into the pact. OFI
Palm oil news. September 2023. CSPO Watch
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