Indonesia & Malaysia condemn EU’s support of palm oil ban

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On Thursday the 18th of January, top palm oil producers Indonesia and Malaysia, criticised the EU for supporting a ban on the use of palm oil in biofuels. According to a Malaysian minister, it is a form of “crop apartheid” and a protectionist trade barrier.

On Wednesday, European lawmakers approved draft measures to reform the power market there and minimise energy consumption to satisfy more ambitious climate goals. In addition, the plan involves a ban on the use of palm oil in motor fuels from 2021.

Malaysia and Indonesia are the world’s top two palm oil producing countries, and account for approximately 90% of global supply. A large part of European palm oil imports are used to make biofuels, therefore providing the industry’s top two producers cause for concern due to the fear that overall demand will fall.

However, yesterday, Monday the 22nd of January, Malaysia stated that it would work with other producers in different countries to voice significant concerns to the World Trade Organization as a result of EU’s backing the ban on using palm oil to create biofuels.