Jakarta/Brussels — The leaders of Indonesia and Malaysia, the world’s two biggest palm oil producers, have taken issue with the EU over its decision to no longer consider palm oil as a green fuel. In March, the European Commission determined that palm oil has resulted in excessive deforestation and that it should no longer be considered a renewable transport fuel, albeit with some exemptions. It will become law unless a majority in the European Parliament or in the group of EU countries objects. So far, there are no indications that either will do so. Indonesia and Malaysia have both threatened a World Trade Organisation (WTO) challenge against the EU plan. “Both our governments view this as a deliberate, calculated and adverse economic and political strategy to remove palm oil from the EU marketplace,” Indonesian President Joko Widodo and Malaysian Prime Minister Mahathir Mohamad said in an April 5 letter to the EU. “Should this delegated regulation enter into force our governmen...

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Cancel anytime.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.