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<\/a><\/p>\nPalm oil has long been associated with land clearing in biodiverse forests and continues to be a major driver of deforestation. How will the palm oil sector be impacted by the incoming legislation?<\/p>\n
Palm oil in an \u2018advantageous\u2019 situation\u200b<\/strong><\/p>\nLast month, a provisional agreement was reached between the European Parliament and the Council on due diligence legislation. All companies selling products coming from cattle, poultry, cocoa, coffee, soy, maize, and palm oil, amongst others, are implicated.<\/p>\n
The legislation has received with mixed reactions\u200b. But sustainable palm oil organisation Roundtable on Sustainable Palm Oil (RSPO) is \u2018absolutely supportive\u2019.<\/p>\n
\u201cThe goal of this legislation is to minimise the European Union\u2019s contribution to deforestation\u2026The contribution of the EU to deforestation through consumption is around 10-15%, which is significant and disproportional,\u201d <\/em>\u200bRuben Brunsveld, deputy director of EMEA at RSPO, told FoodNavigator.<\/p>\nDespite palm oil\u2019s longstanding association with deforestation in tropical regions \u2013 85% of global supply comes from Indonesia and Malaysia \u2013 the sector is not expected to be most heavily impacted by the incoming laws. In fact, the palm oil sector could find itself in a better position than other commodities on the list, explained Brunsveld.<\/p>\n
\u201cPalm oil is in a bit more of an advantageous situation I would say, compared to a lot of the other commodities,\u201d <\/em>\u200bhe told this publication. This is because 93% of all palm oil imported into Europe for food, feed, cleaning products and cosmetics is already certified sustainable. \u201cFrom that perspective, it won\u2019t change much for the palm oil sector.\u201d<\/em>\u200b<\/p>\nUnfortunately for palm oil in Europe, this statistic is not well-known, lamented the deputy director. \u201cThat is really something we need to recognise, that Europe is almost completely reliant on sustainable certified palm oil. And we need to make sure we keep that up.\u201d<\/em>\u200b<\/p>\nRegulation an \u2018opportunity\u2019 for palm oil sector\u200b<\/strong><\/p>\nFrom a reputational standpoint, the incoming regulation represents an obvious opportunity for the palm oil sector.<\/p>\n
Palm oil is produced in 44 countries globally, with the vast majority sourced from just two: Indonesia and Malaysia. These Southeast Asian nations have both made \u2018huge strides\u2019 over the last decade in reducing deforestation rates, explained Brunsveld.<\/p>\n
Indeed, in Indonesia deforestation peaked in 2016 and fell below pre-2004 levels in 2017-2019. The regulation, therefore, offers an opportunity to \u2018present those successes to the European market\u2019, we were told.<\/p>\n
\u201cPeak [global] deforestation was 30 years ago, and since then deforestation has declined. But in Europe, we\u2019re still hanging onto that image when it comes to palm oil. This legislation will be an opportunity change that narrative\u2026\u201d <\/em>\u200b<\/p>\nAnother positive expected to come from the forthcoming legislation relates to its focus on deforestation across the board. Its aim is for no commodity associated with deforestation \u2013 whether legal or illegal \u2013 to enter European supply chains.<\/p>\n
The UK\u2019s Environment Act, as a comparison, is focused on eliminating illegal deforestation rather than legal deforestation.<\/p>\n
\u201cWe want to address deforestation and forest degradation regardless of whether it is legal or illegal in the country of production,\u201d<\/em>\u200b <\/em>\u200bexplained Diego Torres, international relations officer at the European Commission\u2019s Directorate-General for Environment (DG ENV) at the recent RTRS Meeting Point.<\/p>\n\u201cThis is a major shift in terms of our policymaking\u2026and we have done this for several reasons, [including] that a lot of deforestation going on in producing countries is legal, or is legalised after a certain number of years \u2013 as has happened many times.\u201d<\/em>\u200b<\/p>\nFor RSPO\u2019s Brunsveld, the EU\u2019s focus on both illegal and legal deforestation is a \u2018strong\u2019 element of the legislation. The EMEA deputy director suggested there have been learnings from the EU Timber Regulation.<\/p>\n
\u201cWe know, for instance, that in the Timber Regulation previously \u2013 which focused on illegal deforestation \u2013 there were just too many ways that products associated with deforestation were still entering the EU market.<\/em>\u200b<\/p>\n\u201cI think it was, as such, a good choice \u2013 from a sustainability perspective \u2013 to include both legal and illegal deforestation.\u201d<\/em>\u200b<\/p>\nCould high-risk suppliers be blacklisted by Europe?\u200b<\/strong><\/p>\nRSPO has backed the due diligence legislation from the get-go. But that does not mean the sustainable palm oil organization does not foresee potential challenges for members of the palm oil supply chain.<\/p>\n
In the short-term, for example, it will be \u2018tough\u2019 for companies to get their supply chains ready, explained Brunsveld, \u201cthere is no doubt about it\u201d. <\/em>\u200bBut, this is not an impossible task.<\/p>\n\u201cIt\u2019s also true to say that with the implementation deadline as it is set up on 18 months [for large companies] and 24 months for small and micro enterprises, that will be doable, and the sector will [abide by its] obligations.\u201d<\/em><\/p>\nAnother potential risk could relate to the benchmarking system incorporated in the new legislation. According to the forthcoming law, the Commission will classify countries and regions as low-, standard-, or high-risk, depending on the commodity in question.<\/p>\n
Might such a system mean that buyers decide against purchasing palm oil from high-risk areas, and instead opt for low-risk supply?<\/p>\n
\u201cWe know that risk exists. We hear it from our members, we hear it from their clients,\u201d <\/em>\u200bsaid Brunsveld.<\/p>\n\u201cFor that reason, it\u2019s really important that in the coming period, the Commission engages with the Malaysian and Indonesian government, and other producing countries for that matter, to get a really good insight into the progress the sector has made in the last couple of years and take that into account.\u201d<\/em>\u200b<\/p>\nAnother unintended outcome could be that the high-risk areas associated with deforestation continue to sell palm oil to other countries that don\u2019t have stringent due diligence requirements.<\/p>\n
But the deputy director doesn\u2019t foresee this to be a risk. \u201cThe palm oil sector, through its producers and processors and traders, have committed to have its entire supply chain internationally [and not just in for Europe] deforestation-free by 2030. So that would close that leakage market.\u201d<\/em>\u200b<\/p>\nShaking off palm oil\u2019s negative image\u200b<\/strong><\/p>\nIn preparation for the legislation, certification schemes could play a valuable role.<\/p>\n
While in RSPO\u2019s case, its certification goes beyond deforestation to include other environmental and social requirements, Brunsveld suggested certification schemes could prove effective tools in helping producers prepare for enforcement.<\/p>\n
\u201cWe see a great interest [in our certification scheme] from companies. Third-party certification has been recognised as a tool that companies can use in their risk assessment.\u201d<\/em>\u200b<\/p>\nThis does not mean that certification schemes provide a \u2018green lane\u2019 for the EU validation requirements. Rather, that certification schemes can be one of the tools companies can leverage to show their compliance<\/p>\n
The legislation will also put to bed questions around consumers\u2019 willingness to pay a premium for sustainable produced palm oil. In Europe, this legislation will create a level playing field, explained Brunsveld.<\/p>\n
\u201cWhether consumers are willing to pay or not, this is going to happen. Everybody has to comply with it, and that\u2019s just a fact.\u201d<\/em>\u200b<\/p>\nEurope is central to maintaining the sustainable palm oil market, with 46% of the production of certified sustainable palm oil entering its supply chains. RSPO\u2019s hope is that the legislation will shine a light on sustainability in the sector and that ultimately, consumer attitudes\u200b will change.<\/p>\n
\u201cIf we look at the European market, the sustainability element is the most important. [We want to] show the progress that palm oil has made and finally turn away from the negative [image] that palm oil still has in Europe.\u201d<\/em>\u200b (*)<\/p>\nSource: foodnavigator.com<\/a><\/em><\/p>\n <\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
In an effort to stamp out environmental and human rights violations from European supply chains, a new due diligence law\u200b is expected to be enforced as early as 2024.<\/p>\n","protected":false},"author":1,"featured_media":22733,"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-22732","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-publication","category-recent-news"],"yoast_head":"\n
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Subsequently, 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\/2022\/10\/palmoil_tbs_moneycontrol.com_.jpg?fit=1003%2C584&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/10\/palmoil_tbs_moneycontrol.com_.jpg?fit=1003%2C584&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/10\/palmoil_tbs_moneycontrol.com_.jpg?fit=1003%2C584&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/10\/palmoil_tbs_moneycontrol.com_.jpg?fit=1003%2C584&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":22349,"url":"https:\/\/gapki.id\/en\/news\/2022\/11\/25\/ispo-mspo-certifications-will-strengthen-due-diligence-law\/","url_meta":{"origin":22732,"position":1},"title":"ISPO & MSPO Certifications Will Strengthen Due Diligence Law","author":"admin","date":"November 25, 2022","format":false,"excerpt":"Tropical forests are being presented as a needed solution to fight climate change Markets including the European Union, the United Kingdom and the US are seeking to reduce the impact of their imported goods on tropical forests The European Union in particular, has a proposal to stop imported deforestation through\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\/2022\/11\/ISPO_MSPO_logo.png?fit=782%2C389&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/11\/ISPO_MSPO_logo.png?fit=782%2C389&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/11\/ISPO_MSPO_logo.png?fit=782%2C389&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/11\/ISPO_MSPO_logo.png?fit=782%2C389&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":19920,"url":"https:\/\/gapki.id\/en\/news\/2021\/03\/15\/special-analysis-greenpeace-report-disregards-factual-information\/","url_meta":{"origin":22732,"position":2},"title":"SPECIAL ANALYSIS: Greenpeace Report Disregards Factual Information","author":"admin","date":"March 15, 2021","format":false,"excerpt":"Earlier this week Greenpeace released a broad ranging report taking aim at certification schemes worldwide. The report is a major attack on certification schemes, covering palm, soy and timber. But make no mistake, this is an attack on palm oil and palm oil certification. Palm oil is mentioned almost twice\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\/2021\/03\/palmoil_thepalmscribe.id_.jpg?fit=933%2C497&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2021\/03\/palmoil_thepalmscribe.id_.jpg?fit=933%2C497&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2021\/03\/palmoil_thepalmscribe.id_.jpg?fit=933%2C497&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2021\/03\/palmoil_thepalmscribe.id_.jpg?fit=933%2C497&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":22552,"url":"https:\/\/gapki.id\/en\/news\/2023\/01\/16\/fadillah-to-visit-ri-for-follow-up-meeting-on-palm-oil-campaigns\/","url_meta":{"origin":22732,"position":3},"title":"Fadillah To Visit RI For Follow-up Meeting On Palm Oil Campaigns","author":"admin","date":"January 16, 2023","format":false,"excerpt":"PUTRAJAYA --\u00a0Deputy Prime Minister and\u00a0Plantation and Commodities Minister\u00a0Datuk\u00a0Seri Fadillah Yusof\u00a0will leave for\u00a0Indonesia by February 2023\u00a0to meet his counterpart and other stakeholders to fight the anti-palm oil lobby. He will be strategizing and strengthening efforts to fight negativity surrounding the commodity. Fadillah\u2019s impending visit is likely to be seen as a\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\/01\/fadhilah_theborneopost.com_.png?fit=1004%2C614&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/01\/fadhilah_theborneopost.com_.png?fit=1004%2C614&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/01\/fadhilah_theborneopost.com_.png?fit=1004%2C614&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/01\/fadhilah_theborneopost.com_.png?fit=1004%2C614&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":26335,"url":"https:\/\/gapki.id\/en\/news\/2023\/06\/13\/gapki-seeking-new-markets-to-tackle-eu-restrictions\/","url_meta":{"origin":22732,"position":4},"title":"GAPKI Seeking New Markets To Tackle EU Restrictions","author":"admin","date":"June 13, 2023","format":false,"excerpt":"JAKARTA \u2013 The Indonesian Palm Oil Association (GAPKI) is now seeking new export markets for palm oil products to compensate the potential reduction in European Union (EU) market which has been increasingly restricted following the application of EU deforestation-free regulation (EUDR). GAPKI Chairman Eddy Martono said that the palm oil\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\/01\/palmoil_oilpalm_bangkokpost.com_.png?fit=939%2C597&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/01\/palmoil_oilpalm_bangkokpost.com_.png?fit=939%2C597&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/01\/palmoil_oilpalm_bangkokpost.com_.png?fit=939%2C597&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/01\/palmoil_oilpalm_bangkokpost.com_.png?fit=939%2C597&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":22598,"url":"https:\/\/gapki.id\/en\/news\/2023\/01\/26\/gapki-ri-not-worried-over-eu-other-markets-up-for-grabs\/","url_meta":{"origin":22732,"position":5},"title":"GAPKI: RI Not Worried Over EU, Other Markets Up For Grabs","author":"admin","date":"January 26, 2023","format":false,"excerpt":"JAKARTA \u2013 The Indonesian Palm Oil Association (GAPKI) has stated that they are not worried over the new deforestation-free law adopted by the European Union (EU) recently. The new EU regulation will ban the imports of products, including the palm oil, which are considered causing deforestation.\u00a0\u00a0 \u201cThe global market of\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\/01\/gapki_indonesiapalmoilfacts.com_.png?fit=1060%2C637&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/01\/gapki_indonesiapalmoilfacts.com_.png?fit=1060%2C637&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/01\/gapki_indonesiapalmoilfacts.com_.png?fit=1060%2C637&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/01\/gapki_indonesiapalmoilfacts.com_.png?fit=1060%2C637&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/01\/gapki_indonesiapalmoilfacts.com_.png?fit=1060%2C637&ssl=1&resize=1050%2C600 3x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/22732","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=22732"}],"version-history":[{"count":0,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/22732\/revisions"}],"wp:attachment":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/media?parent=22732"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/categories?post=22732"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/tags?post=22732"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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<\/a><\/p>\n