G/TBT/W/730  
 
12 March  2020 
(20-1966) Page: 1/2 
Committee on Technical Barriers to Trade  Original: English  
 
EUROPEAN UNION — AMENDMENTS TO THE DIREC TIVE 2009/28/EC, REN EWABLE 
ENERGY DIRECTIVE  
STATEMENT BY MALAY SIA TO THE COMMITTEE ON TECHNICAL BARRIERS T O TRADE  
26 – 27 FEBRUARY 202 0 
The following communication, dated 12 March  2020, is being circulated at the request of the 
delegation of  Malay sia. 
 
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1.  Malaysia  regrets having  to once again  raise our concern on the development of the 
Directive  (EU) 2018/2001 of the Europea n Parliament and of the Council of 11 December 2018 on 
the promotion of the use of energy from renewable sources and the Commission Delegated 
Regulation (EU) 2019/807 of 13 March 2019.  
2.  The legislation has  negatively impacted the oil palm industry and Mala ysia's trade interest. Th is 
has resulted in several countries enforc ing additional legislation to discriminate biodiesel produced 
from palm oil against biodiesel produced from other vegetable oils in terms of fiscal incentives 
without substantiated by scientific evidence.  
3.  The measure has culminated into a technical barrier to trade that  distorts the market and pricing 
system. This is a measure which is against the principle of free trade that is unfavourable to palm 
oil. We remain troubled as this creates the arbitrary or unjustifiable discrimination disguised 
restriction on internationa l trading of palm oil and its products. This is taking into consideration that 
the delegated regulation creates unnecessary obstacles which are more trade restrictive than 
necessary and more burdensome for producers of palm oil -based biofuels and bioliquid s including 
Malaysia.  
4.  We have been engaging with the European Union in all possible fora to provide scientific evidence, 
facts and information as well as to exchange views to find a mutually beneficial and mutually 
acceptable way forward to ensure continue d market access for Malaysian palm biodiesel.  
5.  Although we appreciate the European Union for their willingness for open discussion and dialogue, 
the continuous engagements have not resulted in a fair treatment for palm oil produced in Malaysia.  
6.  We urge the  European Union to observe the principles of fairness, justice, openness, 
transparency and non -discrimination in conducting international trade. We also urge the European 
Union to provide an equitable treatment across all oil crops biofuels and bioliquids in line with the 
principle of non -discrimination which stipulates that a member shall not discriminate between "like" 
products from different trading partners.  
7.  We are very serious in combating climate change. Under the Paris Agreement, Malaysia has 
committ ed our ambitious Nationally Determined Commitment (NDC) to reduce emissions intensity 
of gross domestic product (GDP) by 45% by 2030 relative to the emission intensity of GDP in 2005. 
We are pleased to share that Malaysia is on track to achieve our NDC by 2030.  
8.  Malaysia is also committed to realising the 2030 Agenda for Sustainable Development and 
its 17 Sustainable Development Goals. The Sustainable Development Goals are a universal call to 
action to end poverty, protect the planet and ensure that all peo ple enjoy peace and prosperity.  G/TBT/W/730  
 
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  In this context, the oil palm industry plays a very important role in contributing positively and 
constructively towards achieving the Sustainable Development Goals.  
9.  In March 2019, the Government of Malaysia had agreed with  the new policy in ensuring that 
Malaysian oil palm is cultivated in a sustainable manner. The measures included to cap oil palm 
cultivated area to 6.5 million hectares; to put a stop on conversion of permanent forest reserved 
area; to halt planting of oil  palm in the new peatland area and further strengthen regulations with 
regard to existing oil palm cultivated on peat; and to make available oil palm plantation maps for 
public access that demonstrate further transparency in the supply chain.  
10.  Malaysia wishes to emphasise that the Malaysian oil palm industry is committed to produce 
palm oil in accordance with sustainable principles and criteria under the Malaysian Sustainable 
Palm Oil (MSPO) certification scheme, which has been implemented on a mandatory basis 
since 1 January  2020.  
11.  Malaysia has put in place policy framework and legislation to ensure sustainable development 
balancing the protection of the environment and socioeconomic development. This is evident through 
the implementation of var ious programmes and initiatives for conservation and preservation of 
forests and biodiversity including among others, national forestry initiatives namely, The Central 
Forest Spine and Heart of Borneo, reforestation through replanting of forest tree specie s, 
establishment of wildlife corridors and reduction of greenhouse gas (GHG) emission.  
12.  The Central Forest Spine covers 5.3 million hectares in Peninsular Malaysia and the Heart of 
Borneo is a trilateral cooperation between Brunei, Indonesia and Malaysia co vering an area of over 
20 million hectares. These initiatives help to strengthen the world 's resilience to climate change by 
conserving carbon sinks and creating a huge green lung for the world while at the same time 
protecting the livelihoods for the fore st dependent communities.  
13.  Malaysia reiterates its commitment made at the Rio Summit in 1992 to retain at least 50% of 
the land area under forest cover.  
14.  The Malaysian Budget 2020 which was tabled on 11 October 2019 had also included the strategy 
on promoti ng environmental sustainability. The Government of Malaysia had allocated budget for 
preservation of Malaysia 's pristine forests and natural biodiversity as well as protection of 
endangered species such as Malayan tiger and orang -utan which demonstrate our  commitment and 
seriousness in taking action to address the issue.  
15.  Also, we will commence a survey project that aims to undertake a new population survey of the 
orang-utan and pygmy elephants in Sabah. This survey will bring together wildlife experts, sci entists 
and researchers to take part in an extensive study on the population of the state 's iconic wildlife.  
16.  Currently, Malaysia has also committed to plant one million forest tree species within the next 
ten (10)  years particularly in degraded lands as we ll as protecting the wildlife population which the 
projects will be sponsored primarily by the palm oil industry players. On the other hand, Malaysia is 
now in the midst of setting up a specific fund for green initiatives, especially for tree planting and 
wildlife conservation.  
17.  We urge the European Union to acknowledge and recognise the efforts and commitment in 
sustainable production of Malaysian palm oil as well as our contributing towards protection and 
conservation of forest and biodiversity.  
18.  We remain  fully open and  committed to negotiating in a sincere and constructive manner in 
ensuring a non -discriminatory treatment against palm products and to prevent the unnecessary 
barrier for market access of palm products into the European Union.  
19.  Malaysia will  continue to monitor the development and we look forward to the response from 
the European Union . 
 
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