In a statement, plantation and commodities minister Johari Ghani said Malaysia is committed to key global sustainability goals which include the retention of at least 50% of forest cover and achieving net-zero greenhouse gas emissions by 2050.
Putrajaya is also committed to reducing carbon intensity against gross domestic product by 45% and global methane emission by 30%, both by 2030, he said.
“Malaysia’s palm oil sector adopts stringent sustainability standards through our sustainability certification scheme, the Malaysian Sustainable Palm Oil (MSPO).
“This initiative not only demonstrates our commitment to transparency and traceability across the supply chain, but also seeks to ensure the industry is fully prepared for the regulation.”
Johari’s comments came after the EU announced it will proceed to implement its Deforestation Regulations (EUDR) despite strong opposition from several countries.
He said Malaysia will focus on four key areas to ensure the sustainability of the country’s palm oil products. These are ensuring the traceability of products, avoiding the use of forest land for cultivation, using land which has legitimate title, and applying good labour practices.
He also said 73% of the 5.7 million hectares planted with oil palm in the country were in the hands of large corporations, which have the requisite knowledge to comply with the regulations governing export to the European market.
However, he anticipated that the 450,000 smallholders who produce the remaining 27% will face unique challenges in adapting to the evolving regulatory landscape.
Johari said his ministry is actively working on capacity-building initiatives to assist in their transition towards EUDR compliance.
Such measures are important to ensure the livelihood of these smallholders will not affected by the implementation of the regulation, he said.
“Malaysia remains committed to working closely with our international partners to ensure a mutually beneficial outcome and combat climate change and deforestation.”
Set to take effect from Dec 30, the EUDR is expected to have a significant impact on the country’s palm oil and rubber industry. The policy seeks to prevent deforestation-linked commodities from entering the EU market.
China and the US have opposed the EUDR, specifically its traceability requirements. Countries like Brazil, Australia, New Zealand and Indonesia have also expressed concern over the regulations.