KUALA LUMPUR: Oil palm-producing countries have emphasised that the European Union Deforestation Regulation (EUDR) should ensure smallholders’ inclusivity when it is implemented.
The Council of Palm Oil Producing Countries (CPOPC) said although the new regulation is a major milestone showing the commitment of the EU to contribute to reducing global deforestation, it has created a potential risk of exclusion of smallholders from the supply chain.
“The co-legislators of the EU, the European Commission, the European Parliament and the member states have to establish approaches and measures to ensure the smallholder inclusivity to minimise risks of exclusion from the EU market.
“This is in line with the spirit of ‘leave no one behind’ of the United Nations Sustainable Development Goals (UNSDG),” it said in a statement yesterday.
CPOPC said it is pivotal to build strong and structured partnerships between the EU and the palm oil-producing countries to create an enabling environment for compliance with the EUDR in recognising the efforts taken to ensure the sustainable production of palm oil in producing countries.
“The palm oil producing countries respect the EU rationale of reducing deforestation and forest degradation.
“Thus, we urge the EU to also acknowledge the efforts and actions taken by palm oil producing countries for the conservation of forest and biodiversity as well as to enhance the sustainable development of the palm oil industry,” said CPOPC.
It further said the EU should consider recognising the Indonesian Sustainable Palm Oil (ISPO) and the Malaysian Sustainable Palm Oil (MSPO) as important certification schemes conforming to the legality requirements of the producing countries.
The producing countries welcome cooperation with the EU to conduct assessments on challenges and potential impacts of the EUDR on oil palm smallholders in order to develop practical measures and mitigation actions to warrant the participation of smallholders.
The introduction of systems and mechanisms for sourcing certified sustainable palm oil from smallholders is one key element to minimise the risks.
Oil palm smallholders account for about 41 per cent and 27 per cent of total oil palm planted areas in Indonesia and Malaysia respectively.
Smallholders account for 35 per cent to 40 per cent of the global production of palm oil.
“The EU could consider innovative instruments to support and enhance the sustainable development of oil palm smallholders.
“This includes, among others, capacity building, solutions to ensure traceability of the supply chain without compromising the personal data protection legislation and development of innovative mechanisms for technical and financial support to ensure continuous improvement of oil palm smallholders,” it said.
Meanwhile, CPOPC in partnership with international civil society organisation Solidaridad and MVO, representing the Netherlands Oils and Fats Industry, published a briefing paper with recommendations and possible solutions to ensure the inclusivity of the oil palm smallholders in the supply chain for the EU market under the EUDR.
The briefing paper has been circulated to policymakers of the EU as part of the efforts of CPOPC to enhance the welfare of oil palm smallholders.
It noted that Article 28 of the EUDR provides for partnerships and cooperation mechanisms to facilitate compliance with the requirements of the EUDR.
“The CPOPC is ready for a dialogue with the EU on actions and measures to safeguard the interest of oil palm smallholders in supplying to the EU market,” it said.
On Dec 6, 2022, the EU reached an agreement on a new law to prevent companies from placing commodities linked with deforestation and forest degradation onto the EU market or exporting them from the EU. – BERNAMA
