PETALING JAYA: The Malaysian Palm Oil Council (MPOC) is urging the European Commission to delay the implementation of the European Union Deforestation Regulation (EUDR) in response to mounting global concerns.
In a statement today, MPOC said the current implementation deadline of Dec 30, 2024 is not only unrealistic but also poses significant challenges for small farmers, businesses, and governments worldwide.
Without action, 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 MPOC CEO Belvinder Sron.
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, Belvinder 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, she said.
Giving a background to the issue, MPOC said the EUDR mandates that all imports into the EU starting from Dec 30, 2024, must meet stringent requirements including geolocation data, polygon mapping, and comprehensive due diligence. These demands place 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 US$650 million, (RM2.7 billion) with US$260 million falling directly on small farmers.
The MSPO standard already guarantees legality and zero-deforestation commitments, while also supporting small farmers. Recognising MSPO as a compliance tool for the EUDR would allow the EU to meet its environmental objectives without excluding smallholders from the supply chain, MPOC said.
