KUALA LUMPUR – The Malaysian government will be engaging with the European Union (EU) to introduce Malaysia’s existing certification scheme, Malaysian Sustainable Palm Oil (MSPO), in the hope of fulfilling new EU regulations on palm oil-based biofuel imports.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani (Titiwangsa-BN) told the Dewan Rakyat that after the World Trade Organisation announced its results regarding Malaysia’s complaints against the EU’s renewable energy directive (RED) II, the EU has shifted its specifications and will soon issue a new regulation regarding the export of palm oil-based biofuels under the EU deforestation regulation (EUDR).
“Under EUDR, palm oil plantations areas must not be areas cleared from deforestation after 2020; oil palm must have a traceability system in place (able to trace plantation, factory, and refinery); each plantation must have a legitimate land title; and requirements regarding labour.
“So these four processes, we will engage with the EU, including to introduce our MSPO. If they accept our MSPO standards, then all our products are good to go (to be exported to the EU).
“I want to stress that we must conduct this engagement. We cannot wait until the end. From the start… now that they just mulled to introduce a new regulation, EUDR, this is the time that we need to engage.
“I believe, after engaging with them about MSPO, MSPO will become a requirement for those who want to export,” he said.
Johari said this during the Minister’s Question Time when answering Teresa Kok (Seputeh-PH), who asked if Malaysia has the expertise to change the EU’s policy to prohibit palm oil-based biofuels by imports by EU nations by 2030.
Under the Delegated Act under EU RED II, palm oil-based biofuels were categorised as High Indirect Land Use Change (ILUC), resulting in the EU imposing the phasing out of palm oil-based biofuel imports by 2030 if it remains under the same category by then.
However, Johari said the prohibition is seen as flawed in terms of transparency, and scientific reliability, besides giving a wrong image of Malaysia’s sustainability practices.
Currently, only the Roundtable on Sustainable Palm Oil (RSPO) is internationally recognised, while the MSPO is only recognised by certain regions, Johari added.
As such, he said, one of the ministry’s strategies is to explain to the other regions, including the EU, that MSPO has higher standards, covering a wider spectrum as it also includes smallholders.
According to a report by the Malaysian Palm Oil Board (MPOB), Malaysia’s export ofl palm oil-based biofuels to the EU in 2023 is at 5% (134,302 tonnes) from the total palm oil and palm oil-based product exports. – March 21, 2024
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