Indonesia to establish palm oil one map, to harmonize land data and to respond public criticism - Photo by MPOC

JAKARTA (TheInsiderStories)European Union (EU) softened its stance on the use of palm oil among its member countries starting 2030 from earlier proposed a ban by 2021.

EU have the reason on the proposal. It said, the commission wants the EU to lead the clean energy transition. For this reason the EU has committed to cut CO2 emissions by at least 40 percent by 2030 while modernizing the EU’s economy and delivering on jobs and growth for all European citizens.

The EU has set itself a 20 percent energy savings target by 2020. On Nov. 30, 2016 the commission proposed an update to the Energy Efficiency Directive including a new energy efficiency target for 2030, and measures to update the Directive to make sure the new target is met.

In a statement released on Tuesday (19/06), EU said the legislative agreed the new regulatory framework includes an energy efficiency target for the EU for 2030 of 32.5 percent with an upwards revision clause by 2023.

This new objective shows the EU’s high level of ambition and demonstrates the remarkable pace of change of new technologies and reduced costs through economies of scale.

It said, together with the recently agreed 32 percent renewable energy target for the EU for 2030, Europe will be equipped to complete the clean energy transition and meet the goals set by the Paris Agreement.

Commissioner for Climate Action and Energy Miguel Arias Cañete said: Europe is by far the largest importer of fossil fuel in the world. Today we put an end to this. This deal is a major push for Europe’s energy independence.”

He continued, the new target of 32.5 percent will boost our industrial competitiveness, create jobs, reduce energy bills, help tackle energy poverty and improve air quality.

“Our path to real energy security and climate protection begins here at home, and this deal shows that Europe’s determination to build a modern economy that is less dependent on imported energy and with more domestically produced clean energy,” he said.

Furthermore he stated, this new policy will extend the annual energy saving obligation beyond 2020, which will attract private investments and support the emergence of new market actors. Its also will deliver real energy savings in the next period 2021-2030 and beyond, coming from new energy efficiency renovations or other measures undertaken in the next decade

Following this political agreement, the text of the Directive will have to be formally approved by the European Parliament and the Council. Once endorsed by both co-legislators in the coming months, the updated Energy Efficiency Directive will be published in the Official Journal of the Union and will enter into force 20 days after publication.

Member States will have to transpose the new elements of the Directive into national law 18 months after its entry into force.

CEO of the Malaysian Palm Oil Council (MPOC) Datuk Dr Kalyana Sundram commenting, the palm biofuel ban directive was part of an ambitious EU goal to increase the use of renewable energy by 2030.

He argued, the debate on palm oil has been ongoing for almost 18 months and the current decision in not banning palm biofuel in 2021 is much welcomed and timely.

Although the EU had stated that palm oil biofuel would be phased out by 2030, he said, MPOC and other stakeholders would review the details to ensure World Trade Organization compliance and compatibility with any other special trade arrangements could emerge in the near future.

Beside Malaysia, the organization was banned Indonesian palm oil in order to prevent deforestation and meet their ambitious climate goals.

Responding on the policy, Indonesia’s governments threatened to fight back against EU in palm oil ban by cutting imports from the region. Minister of Trade Enggartiasto Lukita said the offensive policy to handle this issue already approved by the Vice President Jusuf Kalla.

Furthermore, Indonesia will consolidate with the Malaysia’s Governments to take a step against palm oil ban by EU. The government will delegate the ambassador for Malaysia to discuss this issue further.

The palm oil ban potentially harm Indonesia and Malaysia’s economy since the both are the biggest palm oil exporters in the world. For the both countries, the EU is the second biggest palm oil importer after India.

Last year, Indonesian exported a total of 28 million tonnes of crude palm oil (CPO), valued US$23 billion, contributed to 12 percent of the country’s export. While Malaysia produced around 19.5 million tonnes last year with an export value of $25 billion.