EUDR a challenge for the global palm oil industry

Published 2024년 11월 8일

Tridge summary

The palm oil industry, particularly in Indonesia and Malaysia, is under pressure due to the European Union Deforestation Regulation (EUDR). This policy requires palm oil products entering the EU to be free from deforestation traces from the harvest stage to export, leading to increased production costs and potential shift in global trade flows towards countries with looser sustainability standards. The regulation also impacts sustainability certification schemes like ISPO and MSPO, and could potentially increase the financial burden on consumers and companies. The severity of country risk classification in the EUDR could also affect the competitiveness of commodities from high-risk countries and reduce the global market share for palm oil.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The palm oil industry, especially Indonesia and Malaysia, is facing major pressure from the European Union Deforestation Regulation (EUDR) policy. The regulation requires palm oil products entering the European Union to be free from deforestation traces from the harvest stage to export. ADVERTISEMENT In which, the entire process must be neatly documented and in accordance with high sustainability standards. Also Read: IPOC 2024: Palm Oil Industry Synergizes to Support Biodiesel Program “For many companies, this is not just an administrative challenge, but a significant increase in production costs. Indonesia's export value to the European Union was recorded at USD 4.4 billion in 2023, around 75% of its total exports are palm oil. Meanwhile, Malaysia, another major exporter, contributes around USD 2.5 billion and 75% of it consists of palm oil to the European Union," said Rizal Affandi Lukman, Secretary General of the Council of Palm Oil Producing Countries (CPOPC) at the 2024 ...

Source: Wartaekonomi