19/09/2024 (Business Today) - The Malaysian Palm Oil Council has urged the European Commission to delay the implementation of the EU Deforestation Regulation (EUDR) with the deadline of implementation set for30th December 2024.

The council said the deadlines is not only unrealistic but also poses significant challenges for small farmers, businesses, and governments worldwide. Without action, it said EUDR risks causing severe disruptions, particularly for smallholders who play a crucial role in sustainable palm oil production.

“The EU Commission must heed the growing calls for a delay to the EUDR. A postponement is the only responsible path forward to protect small farmers, provide stability to businesses, and give governments the time they need to prepare. A chaotic implementation in January 2025 will cause more harm than good,” said Belvinder Sron, CEO of MPOC.

Malaysia has consistently highlighted the discriminatory nature of the EUDR, which disproportionately affects developing nations. The rigid December 2024 deadline fails to account for the operational and technical challenges facing palm oil producers, especially smallholders. A range of governments, industries, and experts, both within Europe and globally, have echoed Malaysia’s stance, supporting a delay to allow for a more practical and inclusive implementation.

As it currently stands, the EUDR introduces non-tariff barriers that bring excessive administrative burdens. Without clear compliance guidelines from the EU, the regulation risks excluding small farmers from the EU supply chain entirely.

To address these pressing issues, MPOC said the EU must take immediate action by providing meaningful exemptions for smallholders to prevent their exclusion from global supply chains. Additionally, the EU should establish clear and credible criteria to classify sustainable commodities, such as Malaysian palm oil, as “low risk”. Recognising the Malaysian Sustainable Palm Oil (MSPO) standard as a compliance tool under the EUDR would further facilitate market access for sustainable, zero-deforestation palm oil, ensuring that smallholders are not unfairly burdened.

The EU Deforestation Regulation (EUDR) mandates that all imports into the EU, starting from 30th December 2024, meet stringent requirements including geolocation data, polygon mapping, and comprehensive due diligence. These demands MPOC said places a disproportionate burden on smallholders, many of whom lack the technical capacity to comply. Economic analyses estimate that the annual cost of EUDR compliance for the palm oil sector could reach $650 million, with $260 million falling directly on small farmers.

The government’s MSPO standard currently already guarantees legality and zero-deforestation commitments, while also supporting small farmers.

https://www.businesstoday.com.my/2024/09/19/mpoc-calls-on-eu-to-delay-the-implementation-of-eudr/