Lang
SD Guthrie Bhd has called for an end to the distorted, negative portrayal of palm oil as an "environmental villain," warning that this skewed narrative is pushing global markets away from the vital commodity.
In a speech delivered at today's Sustainable Palm Oil Roundtable, Group Managing Director Datuk Mohammad Helmy Othman Basha pointed to a glaring inconsistency in how environmental issues are addressed. "Over the past three decades, while palm oil has been portrayed as one of the great environmental villains, fossil fuel producers — whose emissions are by far the biggest direct cause of climate change — have often escaped an equivalent level of moral outrage, even though their impact is far greater and global in scale," he said.
Mohammad Helmy criticised the double standards applied to environmental and economic issues, explaining: "While fossil fuel use is frequently excused in the name of 'energy security', sustainable palm oil is banned in the name of 'deforestation'." He warned that these double standards, which developing nations cannot afford to fight, have given rise to a new challenge threatening the global availability of palm oil.
The group managing director noted that Indonesia, the world's largest palm oil producer, has begun moving towards self-sufficiency. "Anti-palm oil campaigners may soon get what they wished for, because the world is already witnessing palm oil gradually disappearing from the global market," he predicted.
He acknowledged that palm oil has often been linked to deforestation, but stressed that the narrative has shifted to show that the environmental problems facing the world are not confined to palm oil alone. He explained that "if every hectare of palm oil plantation in the world were returned to forest, the world would be far worse off," noting that this would lead to greater deforestation to grow less efficient alternative crops to meet global demand for vegetable oils, in addition to the social and economic challenges it would pose for thousands of smallholders.
Mohammad Helmy cited data from the World Resources Institute and Global Forest Watch showing a significant decline in primary forest loss in Malaysia and Indonesia over the past decade. He noted that deforestation in Malaysia has fallen by more than 60% from its peak, while Indonesia has seen an annual decline in deforestation, resulting in forest cover exceeding 50% in both countries.
He criticised the implementation of the EU's Deforestation Regulation, saying: "Despite a record of declining deforestation and maintaining forest cover above 50%, Malaysia was given a standard risk rating. Yet other countries with worse records and less forest cover were classified as low risk." He described the application of stricter standards to poorer or developing nations as "economic apartheid."
He stressed that the only fair and ethical solution for poorer nations is to allow them to use their natural resources and to permit them to lose some of their forests in order to stimulate economic activity for their people.
Mohammad Helmy also addressed the issue of biodiesel blending, noting that higher blending rates mean more palm oil is being used domestically for energy production, reducing the amount available for export. Indonesia is looking to mandate B60 for biodiesel, while Malaysia is targeting B30.
He concluded: "Analysts estimate that if Indonesia reaches B50, that alone could absorb an additional three to four million tonnes of palm oil annually. So while the Global North argues over whether palm oil should be 'phased out', the two biggest producers are blending it for fuel." He asked: "Is this the outcome anti-palm oil lobby groups wanted? The world is losing access to the most efficient, productive and sustainably produced vegetable oil."
Source: Al Mal Forum