On 6 December 2022, the European Commission, European Parliament, and the European Council reached a provisional agreement on the EU Deforestation-free Regulation (EUDR), a proposal to minimize the risk of deforestation and forest degradation associated with products, including palm oil, that are imported into or exported from the European Union (EU).
Although the new regulation is a major milestone showing the commitment of the European Union to contribute to reducing global deforestation, it has created a potential risk of exclusion of smallholders from the supply chain.
Smallholders, an important stakeholder of the palm oil supply chain, will most likely be excluded from the EU market when the EUDR is implemented. The co-legislators of the EU, the European Commission, the European Parliament and Member States have to establish approaches and measures to ensure the smallholder inclusivity to minimise risks of exclusion in the EU market. This is in line with the spirit of “leave no one behind” of the United Nations Sustainable Development Goals.
It is pivotal to build strong and structured partnerships between the EU and the palm oil producing countries to create an enabling environment for compliance with the EUDR in recognising the efforts taken to ensure the sustainable production of palm oil in producing countries. The palm oil producing countries respect the rationale of reducing deforestation and forest degradation of the EU and thus, we urge the EU to also acknowledge the efforts and actions taken by palm oil producing countries for conservation of forest and biodiversity as well as to enhance the sustainable development of the palm oil industry.
The first step towards cooperation is through positive and constructive engagement to find a win-win solution which are mutually agreeable by both parties. The EU should consider recognising the Indonesian Sustainable Palm Oil (ISPO) and the Malaysian Sustainable Palm Oil (MSPO) as important certification schemes conforming to the legality requirements of the producing countries. The producing countries welcome the cooperation with the EU to conduct assessment on challenges and potential impacts of the EUDR on oil palm smallholders in order to develop practical measures and mitigation actions to warrant the participation of smallholders. In addition, the introduction of systems and mechanisms to sourcing certified sustainable palm oil from smallholders is one key element to minimise the risks.
(Selengkapnya dapat dibaca di Majalah SAWIT INDONESIA, Edisi 138)