LogIn LogOut

Malaysia to Sue EU Over Palm Biofuel Restrictions

July 1, 2020

Image Credit: helivideo/AdobeStock
Image Credit: helivideo/AdobeStock

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)

Current News

Uzma's SVP Nets Well Services Deal with SEA Hibiscus

Uzma's SVP Nets Well Services Deal with SEA Hibiscus

OPEC+ Moves Closer to Compromise on 2021 Oil Policy

OPEC+ Moves Closer to Compromise on 2021 Oil Policy

Centus Marine Orders Fast Crew Boat from Strategic Marine

Centus Marine Orders Fast Crew Boat from Strategic Marine

Ex-Lockheed Martin CEO Joins Chevron Board

Ex-Lockheed Martin CEO Joins Chevron Board

Australia: Triangle Energy Restarts Oil Output from Cliff Head Field Well

Australia: Triangle Energy Restarts Oil Output from Cliff Head Field Well

MHI Vestas, CIP Lease 5000 sqm Site in Taiwan for Offshore Wind Turbine Works

MHI Vestas, CIP Lease 5000 sqm Site in Taiwan for Offshore Wind Turbine Works

Reuters: Malaysia Probing Aker Solutions over Petronas Dealings

Reuters: Malaysia Probing Aker Solutions over Petronas Dealings

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