The Malaysian palm oil sector is calling for greater transparency from the EU regarding the Deforestation Regulation (EUDR) amidst a high-risk listing debate. The EUDR, approved last year, poses challenges for countries like Malaysia and Indonesia that produce palm oil, coffee, and cocoa. These countries are likely to be classified as high-risk deforestation markets by the EU, which would subject them to costly and complicated guidelines. Malaysia and Indonesia have protested against the EUDR, but Malaysia is now focused on avoiding the high-risk listing.
According to Belvinder Sron, CEO of the Malaysian Palm Oil Council (MPOC), Malaysia’s sustainable palm oil supply chains meet most of the EUDR criteria, and the government-mandated Malaysian Sustainable Palm Oil (MSPO) standard is followed by 96% of plantations in Malaysia. Malaysia’s forest cover is more than the commitment made at the 1992 Earth Summit, and oil palm plantation expansion has slowed down. However, Sron argues that the EUDR’s treatment of Malaysia does not reflect the progress being made, and she calls for more transparency in the criteria for the high-risk listing.
The EUDR has faced accusations of discrimination against producer countries, driven by protectionist motives for local commodities. Supporting Sron’s argument, the World Resources Institute’s Global Forest Review Forest Pulse study shows that Indonesia and Malaysia have made significant improvements in primary forest loss reduction. Indonesia reduced its primary forest loss by 64%, and Malaysia by 57%. However, on a global scale, tropical primary rainforest loss increased in 2022 compared to 2021, indicating the need for concrete action beyond political commitments.
In conclusion, the Malaysian palm oil sector seeks transparency from the EU regarding the Deforestation Regulation. Malaysia has made significant progress in meeting sustainability criteria, and scientific data supports its efforts to reduce primary forest loss. The EUDR’s treatment of Malaysia should reflect these accomplishments.