Petaling Jaya: The Malaysian Palm Oil Council (MPOC) has urged the European Commission to delay the implementation of the European Union Deforestation Regulation (EUDR) in response to growing global concerns.
In a statement today, MPOC said the current implementation deadline of 30 December 2024 is not only unrealistic but also poses significant challenges for smallholder farmers, businesses and governments around the world.
If left unaddressed, the EUDR risks causing particularly severe disruption to smallholder farmers, who play a vital role in sustainable palm oil production.
“The EU Commission needs to listen to the growing calls for an EUDR extension. A delay is the only responsible way to protect small farmers, provide stability for businesses and give governments the time they need to prepare. A disorderly implementation in January 2025 would do more harm than good,” said Belvinder Sron, CEO of MPOC.
Malaysia has consistently highlighted the discriminatory nature of the EUDR, which disproportionately impacts developing countries. The hard deadline of December 2024 does not take into account the operational and technical challenges faced by palm oil producers, especially smallholders. Various governments, industry and experts within and outside Europe echo Malaysia’s position and support an extension to allow for a more pragmatic and comprehensive implementation.
As it stands, the EUDR introduces non-tariff barriers that create excessive administrative burdens, and without clear compliance guidelines from the EU, the regulation risks completely excluding smallholder farmers from EU supply chains.
To address these pressing issues, Belbinder said the EU needs to take immediate steps, including creating meaningful exemptions to prevent smallholder farmers from being excluded from global supply chains. Additionally, the EU should establish clear and credible criteria for classifying sustainable commodities such as Malaysian palm oil as “low risk.”
Recognising the Malaysian Sustainable Palm Oil (MSPO) standard as a means of complying with the EUDR would further facilitate market access for sustainable, deforestation-free palm oil and ensure that smallholder farmers are not unfairly burdened, she said.
Providing background on the issue, MPOC said the EUDR mandates that all agricultural products imported into the EU after 30 December 2024 meet stringent requirements, including geolocation, polygon mapping and comprehensive due diligence. These requirements place a disproportionate burden on smallholder farmers who lack the technical capacity to comply. An economic analysis estimates that the annual cost of complying with the EUDR for the palm oil sector could reach US$650 million (RM2.7 billion), of which US$260 million will be directly borne by smallholder farmers.
The MSPO standard already ensures legality and zero deforestation commitments while supporting smallholder farmers. Recognizing MSPO as a compliance tool for the EUDR will enable the EU to meet its environmental targets without excluding smallholder farmers from supply chains, MPOC said.
