MPOC decries EU deforestation risk rating, calls it 'highly questionable'

New Straits Times

23-05-2025

KUALA LUMPUR: Malaysia's palm oil producers have strongly criticised the European Commission's decision to assign the country a "standard risk" status under the European Union Deforestation Regulation (EUDR), saying it overlooks Malaysia's progress in reducing deforestation.
The commission's announcement confirmed earlier speculation that Malaysia, despite its efforts in sustainable practices, would not receive a "low risk" status under the EUDR country benchmarking system.
The Malaysian Palm Oil Council (MPOC) said the decision appears inconsistent, noting that countries with weaker records on forest loss, including some EU member states, were granted the more favourable "low risk" classification.
MPOC chairman Datuk Carl Bek-Nielsen said Malaysian palm oil producers, including smallholders, have made substantial efforts to reduce primary forest loss and degradation.
He cited the mandatory Malaysian Sustainable Palm Oil (MSPO) certification, implemented since 2020, as proof of these efforts.
"The European Commission knows that we have a far better record on this than some European states. Yet it has rewarded its own members with 'low risk' status,"" he said.
"This apparent favouritism will inevitably cause resentment instead of building bridges for closer cooperation," Bek-Nielsen said in a statement.
MPOC chief executive officer Belvinder Sron said the outcome was disappointing and not what the industry had expected.
"We are deeply disappointed at what we feel is a highly questionable decision," she said.
"What concerns us most is the accompanying documentation outlining the data used by the commission in making this decision."
Belvinder said MPOC will request clarification from the European Commission on its benchmarking methodology.
She said the "standard risk" label fails to recognise Malaysia's progress in reducing deforestation and producing sustainable palm oil for the European market.
"Malaysia has consistently demonstrated measurable commitment to forest conservation, achieving a significant reduction in deforestation over the past decade," she said.
Citing independent satellite data from Satelligence, she said Malaysia's palm oil sector has improved its environmental footprint.
Even older United Nations data, used by the EU, acknowledged Malaysia's strong performance, she added.
Belvinder also pointed to Global Forest Watch data, which shows Malaysia retains more primary forest than many historically industrialised nations and performs better at preserving it.
Between 2014 and 2023, Malaysia reduced primary forest loss by 65 per cent, outpacing global peers.
In 2024 alone, the country recorded a further 13 per cent reduction, marking the first time it fell out of the global top 10 for tropical primary forest loss.
"Since 2019, we've also seen a decline in total planted area for oil palm. Under the MSPO 2022 standard, we mandated zero conversion of natural forests, protected areas and High Conservation Value areas after Dec 31, 2019."
She said Malaysia's sustainability policies are fully aligned with the deforestation-free and legality criteria of the EUDR and with its broader climate commitments under the Paris Agreement.
"The European Commission's decision discredits the entire benchmarking system. The EUDR should encourage genuine progress, especially from countries like Malaysia that have already shown leadership in sustainable forest management."