Changes in EU curbs on palm biofuel being tracked


The Malaysian government will monitor any changes to the EU’s regulations to bring it into line with the WTO’s findings, and pursue compliance proceedings if necessary, Johari said.

KUALA LUMPUR: Malaysia says it will closely monitor how the European Union (EU) responds to a World Trade Organisation (WTO) ruling that supported the bloc’s stance that palm oil-based biodiesel should not count as a renewable biofuel, but sought changes in how it implemented that decision.

A WTO adjudicating panel, in its first ruling related to deforestation, on Tuesday rejected Malaysia’s claims against the EU decision, but accepted its complaints over how the measures had been prepared, published and administered.

The EU will need to make adjustments, but need not withdraw its measures, following the WTO ruling.

The Malaysian government will monitor any changes to the EU’s regulations to bring it into line with the WTO’s findings, and pursue compliance proceedings if necessary, Plantations and Commodities Minister Datuk Seri Johari Abdul Ghani said in a statement yesterday.

Malaysia, the world’s second largest producer of palm oil, has described the EU’s renewable energy directive as discriminatory, and in 2021 asked the WTO to examine the rules restricting the bloc’s use of palm oil-based biofuels. Under the regulations, palm oil-based fuels can no longer be considered as renewable transport fuel and are to be phased out by 2030, as the EU has determined that palm oil cultivation resulted in excessive deforestation.Johari said the WTO report found fault with the EU’s rules on indirect land use change to ban palm oil biofuels, and with the bloc’s approach to notifying and consulting with other economies when introducing new trade measures.

“This ruling from the WTO demonstrates that Malaysia’s claims of discrimination are indeed justified,” he said, adding that the government would continue to defend the interests of palm oil biofuels industry players against trade barriers. — Reuters

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

   

Next In Business News

Oil trades in tight range ahead of US election
China shares jump, dollar skittish with all eyes on US Election Day
Bank Negara unveils key principles to harness Islamic finance for economic growth
Aneka Jaringan unit secures RM39mil contract for KL project
Xin Hwa says transport unit's vehicle operator licence suspended
T7 Global unit bags ExxonMobil contract
FBM KLCI lifts as investors shop for oversold blue chips
Australia's central bank holds rates, stays vigilant on inflation
Toyota to post first profit drop in 2 years as demand cools after big run
China's services activity picks up as conditions improve, Caixin PMI shows

Others Also Read