InfoSAWIT, KUALA LUMPUR – The Malaysian Palm Oil Council (MPOC) has welcomed the European Union’s decision to delay the implementation of the Regulation on Deforestation-free Products (EUDR) by 12 months. However, MPOC has called on the EU to classify Malaysia as a low-risk country under the newly introduced four-tier assessment system.
“The delay provides an opportunity for the EU to collaborate with Malaysia to ensure that smallholders are not marginalized from international supply chains,” said MPOC CEO Belvinder Sron in a statement cited by InfoSAWIT on Saturday, November 16, 2024.
EUDR, aimed at preventing products from deforested land from entering the EU market, now includes a new “no risk” category in its assessment system. According to Ms. Sron, this category could potentially allow the EU to shield domestic companies while imposing stricter burdens on international trading partners.
“This two-tier approach is a form of covert protectionism. Malaysia has made significant efforts to comply with the EUDR, and such discriminatory treatment sends the wrong message to the global community,” she said.
MPOC is urging the EU to recognize the Malaysian Sustainable Palm Oil (MSPO) certification as an effective compliance tool for the EUDR. The MSPO, the world’s first legally mandated national environmental standard, aims to enhance traceability and sustainability within the palm oil industry.
Currently, MSPO covers more than 80% of Malaysia’s palm oil sector, including the majority of the country’s 450,000 smallholders who manage approximately 27% of the total oil palm plantation area.
“The MSPO scheme has made a significant impact in reducing deforestation. We hope the EU will acknowledge this standard in its benchmarking system,” Belvinder Sron added.
According to Global Forest Watch data, Malaysia reduced primary forest loss by 57% in 2022. Additionally, the country’s oil palm plantation area decreased by 4.2% over the past four years, contributing to stable palm oil production levels below 19.85 million tonnes since 2019.
This decline reflects Malaysia’s commitment to environmental preservation, including halting the expansion of new plantation areas. “Malaysia continues to strengthen its position as a low-risk country under the EUDR benchmark system,” Belvinder Sron concluded. (T2)
