KUALA LUMPUR (Nov 8): Malaysia is likely to be listed as a low-risk country under the benchmarking system for the European Union Deforestation-free Regulation (EUDR), which grades countries on their rate of deforestation and forest degradation, the rate of expansion of agricultural land for relevant commodities, and the production trends of relevant commodities and products.
According to Malaysian Palm Oil Council (MPOC) chief executive officer Belvinder Kaur Sron, the European Union (EU) categorises countries as "low", "medium" or "high" risk under the EUDR benchmarking system.
Citing data from the World Bank, Belvinder said Malaysia’s forest cover of 58% is far higher than the EU's forest area of 39.9%.
“The data are clear on this. Global Forest Watch has described Malaysia’s forest preservation as a success story for a number of years now. Their data also indicate that deforestation rates in Malaysia have reduced by 57%,” she told The Edge on the sidelines of the MPOB International Palm Oil Congress and Exhibition 2023 (PIPOC 2023).
Regarding the criteria for the rate of expansion of agricultural land for relevant commodities, Belvinder said Malaysia has imposed a cap on land allocated for oil palm cultivation, effectively restricting any further expansion.
Combined with Malaysia’s government-enforced commitment to maintain 50% of land as forest cover, it is clear that Malaysia cannot be viewed as a "high risk" under the EUDR.
“The area of oil palm cultivation in Malaysia is stable, and expansion is capped. Increasing yields and new technology means that Malaysian palm oil production will rise without using new land, and without deforestation. This is the very definition of a ‘low risk’ commodity: food production increases but land-use does not.
The EU’s landmark deforestation law bans the import of coffee, beef, soy and other commodities into the bloc unless companies can provide “verifiable” information that the products were not grown on land that was deforested after 2020.
Meanwhile, Belvinder stressed that the mandatory Malaysian Sustainable Palm Oil (MSPO) certification standard provides the assurance that all Malaysian palm oil, including that sourced from small farmers, is sustainably farmed.
“All major Malaysian exporters to Europe are also double-certified via the independent Roundtable Sustainable Palm Oil (RSPO) scheme. No other country has such a comprehensive approach to certifying a commodity; no other country has such a sustained commitment to protecting forests (Malaysia’s promise to retain 50% of land as forest dates back to 1992 at the Rio Earth Summit) .
“Decisions on benchmarking under the EUDR must be taken on the basis of facts and data; not dictated by politics or pressure groups. The facts clearly demonstrate that Malaysia is a low-risk country, and the EUDR benchmarking system should reflect that reality.
“This country will be ready to face those challenges with a very open heart because we have decided that in the long term, the future for this country and this industry is nothing less than ensuring that we continue to produce certified sustainable palm oil for the world,” Belvinder added.