2018/8, 9 February 2018
On 17 January, EU Parliament proposed a ban of the use of unsustainable sources of palm oil in biofuels as of 2021. According to European parliamentarians, palm oil from such sources has driven deforestation and increased greenhouse gas emissions. Indonesia and Malaysia account for 80 percent of the EU’s imports. If the ban is implemented, Indonesia will experience a shortfall of about 4.37 million tons (17 percent of its palm oil exports) while Malaysia will suffer a shortfall of about 2.09 million tons (13 percent of its palm oil exports). Reportedly, Malaysia could lose as much as RM10 billion in export revenue, as the EU is the country’s second-largest export market.
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