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Renewable Energy Policy: Consider The Smallholders
Renewable Energy Policy: Consider The Smallholders
13/07/2013 (Business Times) - Malaysia hopes the European Commission and Parliament will consider the plight of the thousands of oil palm smallholders who would be adversely affected by the proposed changes to the Renewable Energy Directive (RED).
Another prospective directive change in Europe that the 300,000 smallholders as well as the Malaysian oil palm industry dread are changes to the directive on fuel quality.
The environment committee of the European Parliament voted on Thursday to limit the level of biofuel that can be used to meet the EU's renewable transport fuel.
News reports said the committee, which voted to raise the cap to 5.5 per cent from 10 per cent before, has also voted back the proposal requiring companies to measure the amount of Indirect Land Use Change (ILUC) that their fuels cause.
According to a Reuters report, biofuel producers and their suppliers are furious at the policy u-turn, and said the proposed limit of 5.5 per cent of total transport fuel use is far too low and will lead to plant closures and job losses.
FEDIOL, the EU vegetable oil industry body that supplies the raw material for biodiesel, warned that the industry will stop investing in advanced biofuels if the EU keeps sending conflicting signals.
The EU had targeted to to get 10 per cent of transport fuel from renewable sources by 2020, mostly from first generation biofuels made from sugar, cereals and oilseeds.
"Malaysia believes that the proposed revision of directives 98/70/EC and 2009/28/EC will unduly impact the economic and social development that has taken place in Malaysia as a result of palm oil development... it will also disproportionately impact small farmers," said the Malaysian Palm Oil Council.
It said the introduction of the concept of ILUC will have an equally chilling impact on the European biofuels industry.
"It will lead to greater cross-border trade disputes with EU's trading partners and it will undermine the ability of the European Union to meet greenhouse gases (GHG) reduction targets."
ILUC, it argued, does not have a scientifically measurable concept, despite in-depth studies and modelling exercises by both the European Commission and scientists and researchers.
Another prospective directive change in Europe that the 300,000 smallholders as well as the Malaysian oil palm industry dread are changes to the directive on fuel quality.
The environment committee of the European Parliament voted on Thursday to limit the level of biofuel that can be used to meet the EU's renewable transport fuel.
News reports said the committee, which voted to raise the cap to 5.5 per cent from 10 per cent before, has also voted back the proposal requiring companies to measure the amount of Indirect Land Use Change (ILUC) that their fuels cause.
According to a Reuters report, biofuel producers and their suppliers are furious at the policy u-turn, and said the proposed limit of 5.5 per cent of total transport fuel use is far too low and will lead to plant closures and job losses.
FEDIOL, the EU vegetable oil industry body that supplies the raw material for biodiesel, warned that the industry will stop investing in advanced biofuels if the EU keeps sending conflicting signals.
The EU had targeted to to get 10 per cent of transport fuel from renewable sources by 2020, mostly from first generation biofuels made from sugar, cereals and oilseeds.
"Malaysia believes that the proposed revision of directives 98/70/EC and 2009/28/EC will unduly impact the economic and social development that has taken place in Malaysia as a result of palm oil development... it will also disproportionately impact small farmers," said the Malaysian Palm Oil Council.
It said the introduction of the concept of ILUC will have an equally chilling impact on the European biofuels industry.
"It will lead to greater cross-border trade disputes with EU's trading partners and it will undermine the ability of the European Union to meet greenhouse gases (GHG) reduction targets."
ILUC, it argued, does not have a scientifically measurable concept, despite in-depth studies and modelling exercises by both the European Commission and scientists and researchers.