Kontan Harian, 3 October 2018
The European Union (EU) is planning to implement a new renewable energy regulation that will take into account factors including Indirect Land Use Change (ILUC) in assessing high-risk palm oil-based biodiesel. Under the new regulation, replacing plants in an established plantation with another type of plant to produce biofuel such as oil palm trees is considered non-environmentally friendly as it might generate higher level of carbon emission.
Members of the Council of Palm Oil Producing Countries (CPOPC), including Indonesia, have expressed their concerns that the EU and the US will exploit the ILUC directive to discriminate against palm oil and its derivatives. Indonesian Palm Oil Board (DMSI) Deputy Chair Sahat Sinaga said palm oil industry will shift focus to other countries to minimise impact of the negative campaign carried out by European countries and the US.