Malaysia to Sue EU Over Palm Biofuel Restrictions

Mei Mei Chu
Wednesday, July 1, 2020

Malaysia, the world's second-largest palm oil producer, will take legal action against the European Union's restrictions on palm oil-based biofuels with the World Trade Organization (WTO), calling the policy a "discriminatory action."

Plantation Industries and Commodities Minister Mohd Khairuddin Aman Razali said on Wednesday the EU's renewable energy directive "restricts free trade practices."

"The policies adopted by the EU in the Delegation Regulation under the European Union Renewable Energy Directive II have created unreasonable restrictions on Malaysia's sustainability efforts," he said in a statement.

The Southeast Asian nation will challenge the EU via the WTO's dispute settlement mechanism, he added.

The European Commission concluded last year that palm oil cultivation results in excessive deforestation and passed a law to phase out its use as transport fuel between 2023 and 2030.

Palm's biggest producer Indonesia challenged the law at the WTO in December, claiming the bloc’s restrictions were unfair.

Malaysia will act as a third party in Indonesia' WTO case as a sign of solidarity and its commitment to address the "anti-palm oil campaign", Mohd Khairuddin said.

Neighbours Indonesia and Malaysia together produce 85% of the world's palm oil.

EU consumption of palm oil in food has been in steady decline, but its use as a biofuel has increased.

 (Reporting by Mei Mei Chu; editing by Jason Neely and Mark Potter)

Categories: Legal Energy Activity Asia Malaysia Indonesia Biofuel

Related Stories

Petronas Awards PSCs for Nine Fields and One Exploration Block off Malaysia

CNOOC Brings Bohai Sea Oil Field On Stream

Seatrium Delivers Fifth Jack-Up to Borr Drilling

CNOOC Starts Production at Another Oil Field in South China Sea

Velesto Teams Up with SLB to Enhance Drilling Rig Capabilities

MCDermott Gets Pipelines and Cables Job at Qatar's Giant Gas Field

Nong Yao C Development Bolsters Valeura’s Production Rates Off Thailand

Mitsubishi Boosts Stake in Petronas’ Malaysia LNG Plant

CNOOC Ticks Another Milestone in Ultra-Deepwater Gas Exploration

Transocean Scoops $123M Drillship Deal in India

Current News

Offshore Service Vessels: What’s in Store in 2025

ABS Approves Hanwha Ocean’s FPSO Design

AI & Offshore Energy: The Higher the Stakes, the More Value AI Creates

Floating LNG Conversion Job Slips Out of Seatrium’s Hands

Transocean’s Drillship to Stay in India Under New $111M Deal

INEOS Picks Up CNOOC’s US Assets in $2B Deal

Sunda Energy, Timor-Leste Gov Plan Accelerated Chuditch Gas Development

RINA to Conduct Pre-FEED Study for Petronas’ CCS Project in Malaysia

TotalEnergies Wraps Up Acquisition of SapuraOMV’s Gas Assets

Kuwaiti Oil and Gas Firm Exploring More Opportunities in Indonesia's Natuna Sea

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com