MARKET DEVELOPMENT
Moving Forward With MSPO
Moving Forward With MSPO
09/06/2017 (The Star) - The issue of environment is not the sole domain of the developed world. Malaysia may be a small nation but we are big in our commitment and execution to fight global warming. I find the decision by the United States of America to withdraw from the Paris Agreement disappointing because as the world’s second largest polluter, US leadership is pivotal. However, this decision has also strengthened the resolve of other countries, notably China and India, to reduce greenhouse gas emissions.
A participant of the United Nations Framework Convention on Climate Change (UNFCCC), Malaysia signed and ratified the Kyoto Protocol negotiated in 1997, and in 2009, our Prime Minister further committed to a voluntary reduction of up to 40% in terms of greenhouse gas (GHG) emissions intensity per unit of GDP by 2020 during the 15th Conference of the Parties (COP 15) in Copenhagen.
We are also one of the 195 countries that signed and one of the 148 countries who has also ratified the Paris Agreement agreed during COP 21 in 2015 respectively, committing to lower up to 45% in GHG emissions intensity per unit of GDP by 2030. As at 2015, we have already recorded a 33% reduction.
Unfortunately, despite our commitment and track record, the palm oil industry has been wrongly singled out as an alleged culprit of global warming. In fact, this is the furthest from the truth, believe me.
Methane is the most harmful GHG
The United States’ Environmental Protection Agency (EPA), no less, says methane accounts for 16% of GHG emissions, with carbon dioxide produced primarily by the use of fossil fuel and industrial processes, recording the biggest share at 76%. However, methane is roughly 30 times more potent as a heat-trapping gas compared to carbon dioxide, making it one of the main culprits of global warming.
And what produces the most methane? The Food and Agricultural Organisation (FAO) of the United Nations says the 1.5 billion cows that roam the Earth account for 65% of all livestock methane emission. Methane is created as a by-product when a cow burps as part of its food digestion.
Livestock is the real culprit for deforestation
Not only do livestock, including cows, generate global-warming GHG, it is also the leading culprit in deforestation. At 3.45 billion hectares, pasture makes up 69% of global agriculture land, which stands at 5 billion hectares. In comparison, oil palm hectarage stands at 18.87 million hectares, or 0.38% of global agriculture land. And Malaysia’s oil palm footprint is merely 0.11% of global agriculture land at 5.74 million hectares.
Clearly, the large majority of the members of the European Parliament did not have a complete view of the palm oil situation, when they voted 640 to 18, with 28 abstentions, to introduce a single certification scheme for palm oil entering the EU market and phase out the use of palm biodiesel by 2020
As I have said before, this is essentially a trade issue but it has been portrayed as an environmental one and it must be addressed comprehensively. This is despite the FAO validating Malaysia’s forest cover of 55.5% and if you include agriculture tree cover, a total green canopy of 85% which is amongst the highest in the world.
In my visit to Europe this coming week, I will be strongly putting forward our case and will work towards correcting the misconceptions some may have and also counter these allegations that can damage the livelihood more than two million Malaysians involved on the palm oil value chain including 644,522 smallholders, if left to fester.
Oil Palm is up to 7.5 times higher in yield
The world population is expected to grow from 7.4 billion in 2016 to 9.9 billion in 2050. More food needs to be produced and ideally, with the least extension of agriculture land and the world needs oil palm to step up and help feed the world efficiently. In fact, food security is an overriding concern for many countries.
As at 2016, oil palm uses the least land area and yet produces the highest yield per hectare. Oil palm yields 4.3 times, 5.4 times and 7.5 times higher than rapeseed, sunflower and soya respectively. When you look at the four major oil crops in total, oil palm utilises 9% of total land area but produces 39% of total oil. In contrast, soya uses 61% of total land area yet produces only 34% of total oil.
In fact, another study shows that if a moratorium on oil palm is enforced between 2013 and 2023, the rising demand of oils and fats will need to be harvested from additional 97 million hectares, 58 million hectares or 49 million hectares of new land area for soya, rapeseed or sunflower respectively, compared to merely another 8.8 million hectares of oil palm without a moratorium.
We are all for sustainability
Malaysia has continued to iterate that the palm oil industry is predicated on the 3P principles – People, Planet and Profit. In fact, this has been the case even before the birth of United Nations’ Sustainable Development Goals (SDGs) in 2016. The palm oil industry is a key catalyst to alleviate poverty, ensure no one goes hungry and provide decent work and economic growth.
Our sustainability initiatives, spearheaded by the Malaysian Sustainable Palm Oil (MSPO) initiative that will be mandatory by end 2019, help us address the issues of global warming and biodiversity of life on land.
MSPO is premised on seven principles, which are highly universal in nature, ranging from management commitment and responsibility, transparency and compliance to legal requirements and best practices to social responsibility, health, safety, employment conditions, environment, natural resources and biodiversity.
As Malaysian smallholders make up almost 40% of palm oil hectarage, MSPO is also a key bridge to ensure compliance to sustainable standards keeping in mind that what is best for the environment is best for Malaysians.
The European Union must understand that Malaysia is a committed partner. We do not turn our backs to our key trading partners. It would be in the EU’s interest to work with us especially on certification but they must embrace the effort in good faith, rather than imposing a single unilateral standard on us. Beyond the issue of sovereignty, certification must not be done at the expense of those who rely on it for their livelihood.
Let us move forward with MSPO.
Datuk Seri Mah Siew Keong is Minister of Plantation Industries and Commodities. Commodities Today and Beyond is his op-ed to share his views, hope and vision for commodities with everyday Malaysians.
A participant of the United Nations Framework Convention on Climate Change (UNFCCC), Malaysia signed and ratified the Kyoto Protocol negotiated in 1997, and in 2009, our Prime Minister further committed to a voluntary reduction of up to 40% in terms of greenhouse gas (GHG) emissions intensity per unit of GDP by 2020 during the 15th Conference of the Parties (COP 15) in Copenhagen.
We are also one of the 195 countries that signed and one of the 148 countries who has also ratified the Paris Agreement agreed during COP 21 in 2015 respectively, committing to lower up to 45% in GHG emissions intensity per unit of GDP by 2030. As at 2015, we have already recorded a 33% reduction.
Unfortunately, despite our commitment and track record, the palm oil industry has been wrongly singled out as an alleged culprit of global warming. In fact, this is the furthest from the truth, believe me.
Methane is the most harmful GHG
The United States’ Environmental Protection Agency (EPA), no less, says methane accounts for 16% of GHG emissions, with carbon dioxide produced primarily by the use of fossil fuel and industrial processes, recording the biggest share at 76%. However, methane is roughly 30 times more potent as a heat-trapping gas compared to carbon dioxide, making it one of the main culprits of global warming.
And what produces the most methane? The Food and Agricultural Organisation (FAO) of the United Nations says the 1.5 billion cows that roam the Earth account for 65% of all livestock methane emission. Methane is created as a by-product when a cow burps as part of its food digestion.
Livestock is the real culprit for deforestation
Not only do livestock, including cows, generate global-warming GHG, it is also the leading culprit in deforestation. At 3.45 billion hectares, pasture makes up 69% of global agriculture land, which stands at 5 billion hectares. In comparison, oil palm hectarage stands at 18.87 million hectares, or 0.38% of global agriculture land. And Malaysia’s oil palm footprint is merely 0.11% of global agriculture land at 5.74 million hectares.
Clearly, the large majority of the members of the European Parliament did not have a complete view of the palm oil situation, when they voted 640 to 18, with 28 abstentions, to introduce a single certification scheme for palm oil entering the EU market and phase out the use of palm biodiesel by 2020
As I have said before, this is essentially a trade issue but it has been portrayed as an environmental one and it must be addressed comprehensively. This is despite the FAO validating Malaysia’s forest cover of 55.5% and if you include agriculture tree cover, a total green canopy of 85% which is amongst the highest in the world.
In my visit to Europe this coming week, I will be strongly putting forward our case and will work towards correcting the misconceptions some may have and also counter these allegations that can damage the livelihood more than two million Malaysians involved on the palm oil value chain including 644,522 smallholders, if left to fester.
Oil Palm is up to 7.5 times higher in yield
The world population is expected to grow from 7.4 billion in 2016 to 9.9 billion in 2050. More food needs to be produced and ideally, with the least extension of agriculture land and the world needs oil palm to step up and help feed the world efficiently. In fact, food security is an overriding concern for many countries.
As at 2016, oil palm uses the least land area and yet produces the highest yield per hectare. Oil palm yields 4.3 times, 5.4 times and 7.5 times higher than rapeseed, sunflower and soya respectively. When you look at the four major oil crops in total, oil palm utilises 9% of total land area but produces 39% of total oil. In contrast, soya uses 61% of total land area yet produces only 34% of total oil.
In fact, another study shows that if a moratorium on oil palm is enforced between 2013 and 2023, the rising demand of oils and fats will need to be harvested from additional 97 million hectares, 58 million hectares or 49 million hectares of new land area for soya, rapeseed or sunflower respectively, compared to merely another 8.8 million hectares of oil palm without a moratorium.
We are all for sustainability
Malaysia has continued to iterate that the palm oil industry is predicated on the 3P principles – People, Planet and Profit. In fact, this has been the case even before the birth of United Nations’ Sustainable Development Goals (SDGs) in 2016. The palm oil industry is a key catalyst to alleviate poverty, ensure no one goes hungry and provide decent work and economic growth.
Our sustainability initiatives, spearheaded by the Malaysian Sustainable Palm Oil (MSPO) initiative that will be mandatory by end 2019, help us address the issues of global warming and biodiversity of life on land.
MSPO is premised on seven principles, which are highly universal in nature, ranging from management commitment and responsibility, transparency and compliance to legal requirements and best practices to social responsibility, health, safety, employment conditions, environment, natural resources and biodiversity.
As Malaysian smallholders make up almost 40% of palm oil hectarage, MSPO is also a key bridge to ensure compliance to sustainable standards keeping in mind that what is best for the environment is best for Malaysians.
The European Union must understand that Malaysia is a committed partner. We do not turn our backs to our key trading partners. It would be in the EU’s interest to work with us especially on certification but they must embrace the effort in good faith, rather than imposing a single unilateral standard on us. Beyond the issue of sovereignty, certification must not be done at the expense of those who rely on it for their livelihood.
Let us move forward with MSPO.
Datuk Seri Mah Siew Keong is Minister of Plantation Industries and Commodities. Commodities Today and Beyond is his op-ed to share his views, hope and vision for commodities with everyday Malaysians.