Malaysia kicks against Norway’s planned ban on palm-based biodiesel

Malaysia kicks against Norway's planned ban on palm-based biodiesel
Illustrative picture. PHOTO CREDIT: shutterstock

Malaysia on Friday described the stand taken by Norway against palm oil as ‘unfair’ and ‘unjust’, saying the move is against free and fair trade.

The Scandinavian country plans to ban biofuels containing palm oil from 2020.

Malaysia’s Primary Industries Minister, Teresa Kok, who stated this in a statement noted that the plan will adversely affect bilateral trade relations between Malaysia and the European Free Trade Association of which Norway is a member.

She said, “The stand taken by Norway against palm oil will adversely affect bilateral trade relations between Malaysia and the European Free Trade Association.

“This decision is unfair, unjust and goes against free and fair trade. It is certainly not something we will take lightly.”

Malaysia and Indonesia had early 2018, criticized the European Union for supporting a ban on palm oil usage in biofuels from 2021. Nearly 90 percent of global palm oil is produced by Indonesia and Malaysia.

EU negotiators later agreed that palm oil usage in transport fuels would be capped at 2019 levels until 2023, and reduced to zero by 2030.

Palm oil is used as feedstock for the making of biodiesel, as well as in everything from cookies and soap to lipstick. The palm oil industry is often linked by environmental groups with deforestation and displacement of wildlife and indigenous communities.

 

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