MPOC develops alternate markets as EU phases out palm oil by 2030

19.06.2018

The Malaysian Palm Oil Council (MPOC) will continue to aggressively market palm oil to other countries in view of the European Union’s (EU) decision to end palm oil use for its transport sector by 2030.

MPOC chief executive officer Datuk Dr Kalyana Sundram noted on 14th June 2018, the EU lawmakers agreed not to ban palm oil from January 2021 but had proposed to phase out palm oil biofuel by December 2030.

"The EU has stated that palm oil biofuel will be phased out by 2030. The EU will probably re-engage with new demands and we will continue to address these via the EU Commission, Parliamentarians and the EU Council," he said.

He also said MPOC along with other stakeholders will review these conditions to ensure they comply with World Trade Organisation rules and compatible with the EU-Malaysia free trade agreement that could emerge in the future.

He then assured that MPOC will enhance engagement with palm oil consumers in Europe to better understand their specific challenges and requirements while drawing up greater collaborative programmes that will keep them loyal to palm oil.

"We will continue to aggressively develop alternate markets for Malaysian palm oil in the run up to 2030," he told reporters in a briefing here today.

Earlier this year, the European Parliament had called for a total ban on palm oil usage in transportation from January 2021.

The EU felt that it had become too reliant on using palm oil as a feedstock for biofuels over its locally produced rapeseed.

According to data from Copenhagen Economics, half of the EU’s 6 billion euros worth of palm oil imports are used for biodiesel.

Malaysia is the world’s second largest palm oil producer after Indonesia, and the two nations account for nearly 90 per cent of global output of 60 million tonnes.


nst

Readers choice: TOP-5 articles of the month by UkrAgroConsult