Palm oil fruits are seen placed on a wheelbarrow at a palm oil farm in Klang, outside Kuala Lumpur, February 19, 2014. REUTERS/Samsul Said/Files
PETALING JAYA: The Malaysian Palm Oil Council (MPOC) is elated on the latest development in the European Union (EU) which deferred the proposed total ban on palm biofuel to 2030 from the earlier date of 2021.
Chief Executive Officer Datuk Dr. Kalyana Sundram said on June 14, 2018, the EU trilogue between the EU Parliament, European Council and European Commission reached an agreement that completely removed from the EU’s final Renewable Energy Directive (RED) text the proposed 2021 palm oil biofuel ban.
“The palm biofuel ban directive was part of an ambitious EU goal to increase the use of renewable energy by 2030.
“The trilogue deliberations were keenly monitored by palm oil producing nations, including Malaysia, since the EU Parliament voted strongly to ban the use of palm biofuels by 2021.
“The debate on palm oil has been ongoing for almost 18 months and the current decision in not banning palm biofuel in 2021 is much welcomed and timely,” he told reporters here today.
Kalyana said Malaysia and other palm oil producers had rallied against the proposed palm oil biofuel ban and the opposition was mobilised through the Plantation Industries and Commodities Ministry and its palm oil agencies, including MPOC, Malaysian Palm Oil Board and Malaysian Palm Oil Certification Council.
“We protested that EU was practising crop apartheid against palm oil while other oils and fats feedstock were allowed in biofuels until 2030.
“Another strong complaint was that these EU actions were non-World Trade Organisation (WTO) compliant and hindered the very principles of free trade,” he said.
Kalyana also said although the EU had stated that palm oil biofuel would be phased out by 2030, MPOC and other stakeholders would review the details to ensure WTO compliance and compatibility with any other special trade arrangements, such as the EU-Malaysia free trade agreement that could emerge in the near future.
“We plan to enhance our engagement with palm oil end-users in Europe to better understand their specific challenges and requirements, while drawing up greater collaborative programmes that will keep them loyal to palm oil,” Kalyana said, adding that MPOC would also aggressively develop alternate markets for Malaysian palm oil in the run up to 2030.
The MPOC CEO remained confident that Malaysian palm oil would continue to remain a competitive, vibrant and a much sought after commodity.
In a separate development, Kalyana opined that the annual average crude palm oil (CPO) price would linger around RM2,400 to RM2,500 per tonne.
“The recent lower CPO export figures were also seen as temporary, factoring in the ringgit’s strength and weaknesses where the commodity’s price is denominated in US dollar,” he added. – Bernama