Madrid, SAWIT INDONESIA – The Council of Palm Oil Producing Countries (CPOPC), hosted a meeting at the Embassy of the Republic of Indonesia in Madrid, Spain, this morning for the officials from the Spanish government and industry players to exchange information and views on the latest development of the readiness of the European Union Deforestation Regulation (EUDR) implementation at the EU member state level and other challenges faced by the oil palm industry.
CPOPC Deputy Secretary General, Datuk Nageeb Wahab, moderated the meeting that raised various concerns and issues particularly in the initial phase of implementation of EUDR set for 30 December 2024. The meeting noted that even with the passage of time, the level of readiness of Member States, in particular Spain, and producer countries, is unclear towards complying with the EUDR, but agreeing that this is due to the lack of clarity on the implementation guidelines from the European Commission. In this regard, CPOPC expressed concern on the uncertainties surrounding this issue, although they are optimistic on the preparations taking place in its member countries such as the development of the National Dashboard in Indonesia and Malaysia’s e-MSPO to comply with the regulation.
In his welcoming remarks, the Ambassador Extraordinary and Plenipotentiary of the Republic Indonesia to the Kingdom of Spain, Dr Muhammad Najib, highlighted that although palm oil is an issue and being the subject of EUDR, the industry should be understood that it can be sustainable and its main producing countries, Indonesia and Malaysia, are doing their utmost to ensure environmental sustainability.
CPOPC Secretary General, Dr Rizal Affandi Lukman, spoke of the importance of collaboration between the producing and consuming countries in implementing the EUDR. CPOPC SG viewed the next seven months as a very critical time to avoid supply disruption and to ensure the smallholder’s inclusion in the supply chain. CPOPC SG urged the European Commission to consider the difficulties faced by smallholders and also the efforts made by producing countries, particularly Indonesia and Malaysia, in improving its sustainable credentials through the development of traceability platforms in both countries.
The Executive Advisor of the Spanish Foundation for Sustainable Palm Oil, Horacio González – Alemán, and the Executive Advisor of the Spanish Foundation for Sustainable Palm Oil, Horacio González, both highlighted oil palm as an irreplaceable vegetable oil in the EU market. Responsible sourcing through the EUDR is considered not an easy way and therefore, collaboration is required to address the issue and fill the gap between the producing and consuming countries.
For the official from the government, Responsible for the Forest Policy and Combating Desertification of the Spanish Ministry for Ecological Transition which is the Spanish Competent Authority of EUDR, Marta Angoloti, and the Sustainability of agricultural raw materials and International CSR at the Dutch Ministry of Agriculture, Julius Seinen, both express appreciation on the efforts taken by the producing countries to comply the EUDR.
The industry stakeholders noted the importance of palm oil and other raw materials affected by the Regulation in their manufacturing processes, and the risks that disruption of supply could have on their businesses, especially at the start of the EUDR implementation. CPOPC also expressed concern about the possible exclusion of smallholders, who represent more than 40 per cent of total area for oil palm production in Indonesia and Malaysia.
Earlier in the week, the Secretary General, Deputy SG, and accompanying CPOPC staff also had meetings with Astrid Schomaker, Director for Green Diplomacy and Multilateralism, European Commission, in Brussels, Belgium, and officials from the Competent Authority of EUDR in the Netherlands, the Dutch Food and Consumer Product Safety Authority (NVWA) under the Ministry of Agriculture, Nature and Food Quality of the Netherlands, in The Hague, the Netherlands. CPOPC SG briefed Mrs. Schomaker and the NVWA officials on the progress of developing traceability tools that connect the supply chain in producing countries with the operator in consuming countries. The NVWA officials agreed to hold a technical meeting, to be facilitated by CPOPC, with the relevant authorities in Indonesia and Malaysia to discuss further the available traceability tools to comply with EUDR.
CPOPC meeting in Spain, was organised with the support of the Spanish Foundation for Sustainable Palm Oil, also served to give voice to the Foundation’s new project: A practical guide for the application of the EUDR, which will focus on designing the system of obligations to be fulfilled by companies, in the simplest and most efficient way possible; establishing a permanent body for dialogue and collaboration with the administrations responsible for applying the standard in Spain; and connecting with the European Institutions in the development of the Regulation.