Malaysia’s palm oil lobby hails reprieve from EU deforestation law: ‘victory for common sense’

The delay gives producers more time to comply with the complex regulations, which were originally set to come into effect on December 30

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Workers load harvested palm oil fruit bunches onto a truck at a plantation in Selangor, Malaysia. Photo: Bloomberg

Published: 6:30pm, 4 Oct 2024

Malaysia’s leading palm oil lobby group expressed its approval of the European Union’s decision to postpone a strict deforestation law that it said threatened the economic viability of the industry, calling it a “victory for common sense” and a reprieve for small farmers of the commodity.

The EU Deforestation Regulation (EUDR) aims to ensure products consumed by its citizens do not contribute to global deforestation or forest degradation by banning the import of seven commodities – coffee, cocoa, soy, beef, rubber, wood, and palm oil – that are sourced from deforested areas.

The new rule will mandate paperwork to prove commodities can be traced to their original plot of land via satellite coordinates and maps. This documentation must be submitted before products or raw materials are exported to the EU market.

Originally scheduled to come into effect on December 30, the regulation has been postponed by twelve months to 2025 following a surprise announcement by the European Commission on Wednesday.

Malaysia and Indonesia, the two largest palm oil producers, vociferously opposed the law, arguing the original 2024 deadline was not feasible and put undue pressure on smallholders.

The Malaysian Palm Oil Council (MPOC), the main promotional and marketing vehicle of the commodity, used in everything from soaps to foods, said the delay was a “sensible and much-needed step”, providing relief for businesses that require additional time to prepare for compliance with the complex regulatory demands of the EUDR.