Malaysia, Indonesia head to Brussels to object to biofuel curbs

Malaysia and Indonesia together supply about 85 per cent of the world's palm oil.
Malaysia and Indonesia together supply about 85 per cent of the world's palm oil.PHOTO: REUTERS

KUALA LUMPUR (BLOOMBERG) - Officials of top palm oil growers Malaysia and Indonesia will visit Brussels next week to voice their objection to the European Union's delegated act that restricts the use of the edible oil in biofuel, according to a statement from Malaysia's Ministry of Primary Industries.

A joint mission from Malaysia and Indonesia, which together supply about 85 per cent of the world's palm oil, will travel to Brussels April 8-9, in a trip that was discussed earlier this year.

The European Commission plans to restrict the types of biofuels from palm oil that may be counted toward the EU's renewable-energy goals and has toughened goals to reduce greenhouse gases blamed for climate change.

A council of producing nations called the law "scientifically flawed" and they have stepped up their lobbying against the provision in recent weeks.

Malaysia and Indonesia have warned that they are ready to retaliate against what they see as "discriminatory" rules.

"Such misleading interpretation of the production of palm oil will be detrimental towards countries which depend on this industry to raise the socio-economic well-being of their people, and ignores the sustainable efforts undertaken to achieve the United Nation Sustainable Development Goals," according to the ministry.