THE Malaysian Palm Oil Council (MPOC) has criticised the European Commission’s decision to classify Malaysia as a ‘standard risk’ country under the European Union Deforestation Regulation (EUDR), calling it unfair and lacking transparency.
MPOC chairman DatUukCarl Bek-Nielsen said the classification overlooked Malaysia’s substantial efforts to reduce deforestation, including the mandatory MSPO certification scheme.
“The European Commission knows that we have a far better record on this than some European states. And yet the European Commission has rewarded its own members with ‘low risk’ status. This apparent favouritism will inevitably cause resentment instead of building bridges for closer cooperation,” he said.
MPOC CEO Belvinder Sron said the industry was “deeply disappointed” by the decision and will seek clarity on the EU’s benchmarking methodology.
“We will request clarification from the European Commission on its full benchmarking methodology used in its assessment. This will be our top priority. The ‘standard risk’ status for Malaysia does not recognise at all the progress and achievements made by the Malaysian palm oil industry in reducing deforestation and producing sustainable palm oil for European consumers,” she said.
Citing data from Satelligence and Global Forest Watch, she noted Malaysia has reduced primary forest loss by 65% between 2014 and 2023, with a further 13% drop in 2024 alone.
Belvinder added, “The European Commission’s decision discredits the whole country benchmarking system. The EUDR should encourage genuine progress, especially from countries like Malaysia that have already shown leadership in sustainable forest management.”
The EUDR, adopted in 2023, aims to prevent goods linked to deforestation from entering the EU market.
The benchmarking mechanism is intended to guide companies’ due diligence obligations, with a ‘low risk’ designation reducing regulatory burdens for exporters.
Malaysia’s placement in the ‘standard risk’ category now means that local palm oil producers may face stricter scrutiny when exporting to Europe. —TMR
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