The Challenges Are Ahead

The Challenges Are Ahead

InfoSAWIT, KUALA LUMPUR - CEO of Malaysian Palm Oil Council (MPOC), Wan Aishah Wan Hamid thought, the raising of sustainability issues would not be cooling down because there are challenges ahead waiting for in palm oil industries.

She mentioned, palm oil industries face many challenges in sustainability in the past few decades, starting from deforestation, and lack of wild animals, the global warming, biofuel sustainability in palm oil – base, and the forced labor which KITA recently discussed.

Of the challenges in palm oil industries, there recently published regulations about climate change and international deforestation which potentially be the trade obstacles.

The regulations were the outcome from those countries that are trying to minimize the bad impact of climate change by eliminating carbon, limiting global warming, and realizing neutral carbon or zero carbon in 2050.

“Some developing regulations that came up, for instance, European Green Deal in 2021 that covered Carbon Border Adjustment Mechanism, which was designed to put tax on imported goods with higher green-house gas (GHG) emission,” Wan Aishah said in her speech at International Palm Oil Sustainability Conference (IPOSC) 2022 on Tuesday (13/9), as quoted from The Edge Mareket.

Besides she also told, the European Union regulation about free deforestation products (will be published) and United States Draft about forestry would sentence every product which the supply chain is found the deforestation factors.

“The policy and regulation would block the direct trade because the developing countries, such as, Malaysia would be fined on higher numbers of obedience to get the market access. Palm oil would be one of few commodities that would be researched because its role may manage deforestation,” Wan Aishah told. (T2)