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<\/a><\/p>\nPalm oil producing countries such as Indonesia and Malaysia have been taking steps to improve in the areas singled out by the EU, such as deforestation and labor \u200b, but so far there remains no signs that the EU is willing to compromise or ease up on the pressures being placed on palm oil, including a rampant \u2018Palm Oil Free\u2019 labeling campaign with a strong impact on food and beverage products.<\/p>\n
At the recent international Palm Oil Sustainability Debate, held as part of the Dubai World Expo, supply chain expert Professor Pietro Paganini, who hails from Italy, called out the EU for being \u2018discriminatory\u2019 in its policies against palm oil, and trying to cut off the sector without having a suitable alternative available to meet consumer needs.<\/p>\n
\u201cEurope is striving very hard to achieve sustainability goals, and is taking a very proactive approach to this \u2013 but we need to also look at the unintended consequences of this approach,\u201d<\/em>\u200b said Prof Paganini, who is also the Founder of Competere – Policies for Sustainable Development, a think tank focused on supply chain sustainability.<\/p>\n\u201cAs it is, we can see that the prices of goods and the levels of inflation in Europe are very high, and it should at least be considered that some of the proposed sustainability policies need to be reviewed and given some rational thought [as] some of the EU\u2019s current decisions are not science-based but more emotionally-driven – They are starting from a point of needing to save the planet, but fail to consider the needs of the 7.6 billion people living on the planet.\u201d<\/em>\u200b<\/p>\nAccording to Prof Paganini, the EU\u2019s Green Deal is looking at reducing greenhouse gas emissions by 2050 which is to save the environment, but it also needs to remember that by 2050 the global population is expected to rise to 10 billion people \u2013 people that need nutrients and energy to continue to live.<\/p>\n
\u201cThis is not energy to say press a light switch or turn on a projector, but energy to live and survive, plain and simple, and nutrients are needed to do get this energy, e.g. sugar, protein, fat, and so on,\u201d<\/em>\u200b he said.<\/p>\n\u201cSo when they talk about reducing the demand for palm oil, a vegetable oil that can provide the energy that people need, and phasing this out by 2030, there must somewhere else for them to channel this demand to which has sufficient supply to meet these needs \u2013 and this alternative must be sufficient in supply, healthy, sustainable and affordable, just like palm oil is offering.<\/em>\u200b<\/p>\n\u201cSo is there such an alternative available now? The answer is no, there is no credible alternative to palm oil at the moment, as we have seen people try to turn to other oils like rapeseed but production is not sufficient here due to its own supply chain issues, or sunflower but this also requires land and can only be harvested once a year. <\/em>\u200b<\/p>\n\u201cTechnology might be on the way that can offer new alternatives, but the fact is that at this point in time there isn\u2019t one, so it is not a [scientifically] feasible move.\u201d<\/em>\u200b<\/p>\nIn addition to the consumer angle, Prof Paganini also voiced concerns over impact of the EU\u2019s actions on its trade activities.<\/p>\n
\u201cWithin the Green Deal the EU has proposed many things like a zero-deforestation policy which will first affect items like palm oil, cocoa, coffee, wood, cattle and derived products (leather and chocolate); as well as a benchmarking system to classify goods as high or low risk based on deforestation,\u201d<\/em>\u200b he said.<\/p>\n\u201cOf the six items affected by this policy, all but one are not produced in the EU \u2013 which basically means that it is making these demands on goods that don\u2019t come from the EU, otherwise these products will be barred from entry. <\/em>\u200b<\/p>\n\u201cBut if you want these producing countries to become more sustainable, you cannot tell them \u2018you must be sustainable but your products are not welcome in my country [because you are high risk]\u2019 \u2013 that doesn\u2019t work, you need to allow or even guarantee entry to these sustainable products, otherwise it is unfair competition. <\/em>\u200b<\/p>\n\u201c[The] Palm Oil Free labeling campaign is a good example of discrimination against palm oil [when] so much sustainability work has been done for this commodity, and the benchmarking will also have very negative impacts on consumers \u2013 imagine them going to a supermarket and seeing products from a \u2018black\u2019-labeled country, what will the impact on their purchasing decision be?<\/em>\u200b<\/p>\n\u201cThe imposition of any strict limits without allowing supply chain players time to adapt means that these players are being excluded from the market, so why would the producing countries invest in sustainability when there is no guarantee that [the EU] will buy their products? Why should they sell to you (the EU), when they may as well go elsewhere where the demands are lower.\u201d<\/em>\u200b<\/p>\nAs it is, this is already happening with major palm oil producers such as Malaysia starting to seek out alternative markets to export palm oil to such as the Middle East and other South East Asian countries.<\/p>\n
\u201cBut [if this happens] and no more palm oil [goes to the EU], how will local consumer demand for [oils and fats] be fulfilled when there is no credible alternative available?\u201d<\/em>\u200b stressed Prof Paganini.<\/p>\n\u201cThe Green Deal proposal\u2019s Farm-to-Fork project also highlights that care and attention must be given to primary producers [to ensure their livelihoods], and that the affordability of food must be preserved and fair trade promoted. It must be remembered that many of these primary producers come from countries such as Malaysia, Indonesia, Central America and so on, and if no one is to be left behind, as the Green Deal states, they must be considered as well.\u201d<\/em>\u200b<\/p>\nWho will pay?\u200b<\/strong><\/p>\nEven more importantly, Prof Paganini reminded the floor that even though sustainability is at the heart of all of these new policies, the driver will still need to be the cost \u2013 and the EU needs to think about who will be paying these costs.<\/p>\n
\u201cIf we\u2019re looking at just big companies, they might or might not have the resources to implement all of these new things, but what about small companies, can they afford this and who will pay if not \u2013 [if sustainability is the most important factor here], then this is a question not just for the producing countries but also the EU,\u201d<\/em>\u200b he said.<\/p>\n\u201cIn fact, I doubt that the big companies will be able or willing to absorb all these economic costs, and it should also be noted that all of this is coming at a time in the EU when the prices of things are skyrocketing, so again, who will pay? Will consumers have to take the brunt, or will governments be subsidising for the sake of sustainability?<\/em>\u200b<\/p>\nAll in all, he called for rational, non-discriminatory economic thinking to be applied to the crafting and review of these policies, to ensure that these are wise and can avoid unintended consequences.<\/p>\n
\u201cThe first thing here is the necessity for the EU and the producing countries to have a partnership agreement in the designing and imposing of these policies \u2013 there is no way you can just tell people what to do and expect them to do it, it needs to be done together,\u201d<\/em>\u200b Prof Paganini said.<\/p>\n\u201cThe same applies to benchmarking, as it makes no sense to benchmark someone and rank them, but not include them in the process. The legislation governing all of this also must be clear and fair, and not see changes every other day.<\/em>\u200b<\/p>\n\u201cIt\u2019s important to remember that most food in the EU comes from outside of the EU and most supply chains are not short, so if sustainability is the end-goal, working together is crucial.\u201d<\/em>\u200b<\/p>\nSource: foodnavigator-asia.com<\/p>\n","protected":false},"excerpt":{"rendered":"
It is no secret that the palm oil sector has been facing substantial pressures from the European Union (EU) which has been churning out policies which are expected to affect international trade in the name of sustainability.<\/p>\n","protected":false},"author":1,"featured_media":21391,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","neve_meta_reading_time":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[3708,3709],"tags":[],"class_list":["post-21390","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-publication","category-recent-news"],"yoast_head":"\n
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The stringent sustainability credentials law will have a debilitating impact on palm oil exporters, particularly in Indonesia and Malaysia. Palm oil is\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/02\/palmoil_thai-german-cooperation.info_.png?fit=918%2C524&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/02\/palmoil_thai-german-cooperation.info_.png?fit=918%2C524&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/02\/palmoil_thai-german-cooperation.info_.png?fit=918%2C524&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/02\/palmoil_thai-german-cooperation.info_.png?fit=918%2C524&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":30116,"url":"https:\/\/gapki.id\/en\/news\/2025\/08\/07\/eu-recognizes-sustainability-of-ris-palm-oil-products\/","url_meta":{"origin":21390,"position":2},"title":"EU Recognizes Sustainability Of RI\u2019s Palm Oil Products","author":"admin","date":"August 7, 2025","format":false,"excerpt":"JAKARTA \u2014 The trade ministry (Kemendag) said that the European Union (EU) had stated its commitment to recognize Indonesian palm oil as sustainable commodity within the cooperative framework of Indonesia\u2013European Union Comprehensive Economic Partnership Agreement (IEU-CEPA). Kemendag\u2019s International Trade Negotiation Director General Djatmiko Bris Witjaksono said that the EU\u2019s recognition\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/07\/palmoil_oilpalm_sawit_pg.jpg?fit=918%2C532&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/07\/palmoil_oilpalm_sawit_pg.jpg?fit=918%2C532&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/07\/palmoil_oilpalm_sawit_pg.jpg?fit=918%2C532&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/07\/palmoil_oilpalm_sawit_pg.jpg?fit=918%2C532&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":31419,"url":"https:\/\/gapki.id\/en\/news\/2026\/05\/19\/green-transformation-breathes-new-life-into-palm-industries\/","url_meta":{"origin":21390,"position":3},"title":"Green Transformation Breathes New Life Into Palm Industries","author":"admin","date":"May 19, 2026","format":false,"excerpt":"JAKARTA \u2013 The transformation towards green economy has breathed new life into Indonesian palm oil industries. The sector, which has been long known as the backbone of the country's foreign exchange earnings, is beginning to assert its focus on sustainable growth by protecting the environment and keeping attention to the\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/sawit_palmoil_gapki.id_.jpg?fit=1013%2C607&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/sawit_palmoil_gapki.id_.jpg?fit=1013%2C607&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/sawit_palmoil_gapki.id_.jpg?fit=1013%2C607&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/sawit_palmoil_gapki.id_.jpg?fit=1013%2C607&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":32478,"url":"https:\/\/gapki.id\/en\/news\/2026\/10\/27\/iucn-land-use-germany-iran-century-pledge\/","url_meta":{"origin":21390,"position":4},"title":"What if Palm Oil Were Simply Banned? Here Is the IUCN\u2019s Answer Regarding Land Use","author":"ZA Hermes","date":"October 27, 2026","format":false,"excerpt":"IUCN infographic: land needed per ton of vegetable oil (source: iucn.org) Discussions about palm oil often boil down to a single question: what if we simply ban it? When we examine land-use data, however, the answer is far more complex. An infographic released by the International Union for Conservation of\u2026","rel":"","context":"In "Recent News"","block_context":{"text":"Recent News","link":"https:\/\/gapki.id\/en\/news\/category\/recent-news\/"},"img":{"alt_text":"IUCN infographic on land requirements per ton of vegetable oil","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/10\/iucn_landuse_169.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/10\/iucn_landuse_169.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/10\/iucn_landuse_169.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/10\/iucn_landuse_169.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/10\/iucn_landuse_169.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":19634,"url":"https:\/\/gapki.id\/en\/news\/2021\/01\/06\/ri-asked-to-take-10-steps-against-eus-palm-oil-biased-policy\/","url_meta":{"origin":21390,"position":5},"title":"RI Asked To Take 10 Steps Against EU\u2019s Palm Oil Biased Policy","author":"admin","date":"January 6, 2021","format":false,"excerpt":"JAKARTA \u2013 The Indonesian government should prepare a roadmap on how to respond to the European Union\u2019s (EU) discriminatory policy against the palm oil, an economist said last week. Bustanul Arifin, an economist of the Institute for Development of Economics and Finance (Indef), said that Indonesia needs to prepare retaliatory\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/11\/palm_oil_orissa-international.com_.jpg?fit=800%2C457&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/11\/palm_oil_orissa-international.com_.jpg?fit=800%2C457&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/11\/palm_oil_orissa-international.com_.jpg?fit=800%2C457&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/11\/palm_oil_orissa-international.com_.jpg?fit=800%2C457&ssl=1&resize=700%2C400 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"jetpack_featured_media_url":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/04\/palmoil_wongkito.co_.jpg?fit=940%2C555&ssl=1","_links":{"self":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/21390","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/comments?post=21390"}],"version-history":[{"count":0,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/21390\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/media\/21391"}],"wp:attachment":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/media?parent=21390"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/categories?post=21390"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/tags?post=21390"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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