G/TBT/W/548  
 
5 July  2018 
(18-4232) Page: 1/2 
Committee on Technical Barriers to Trade  Original: English  
 
EUROPEAN UNION — AMENDMENTS TO THE DI RECTIVE 2009/28/EC,  
RENEWABLE ENERGY DIRECT IVE 
STATEMENT BY MALAYSIA  TO THE COMMITTEE ON TECHNICAL BARRIERS T O TRADE  
20 AND 21  JUNE 2018 
The following communication, dated 5 July  2018, is being circulated at the request of the 
delegation of Malaysi a. 
 
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1.  It is with regret that Malaysia is compelled to raise for the second time the issue of   
discriminatory treatment of biofuels and bioliquids from palm oil under the propos ed amendments 
of the Directive of the European Parliament and of the Council on the Promotion of the Use of 
Energy from Renewable Sources. We would also wish to make reference to our previous statement 
at the last TBT Meeting highlighting the concerns on s uch intended amendments to the Directive 
be captured in the Minutes of Meeting.  
2.  Malaysia had shown our utmost flexibility and made serious efforts to work constructively with 
the European Commission in finding a mutually acceptable way forward bilaterally;  both in Geneva 
and Brussels as well as through the various WTO Committees. However, since our last meeting, 
the results; with some exceptions, had been disappointing.  
3.  Despite that, Malaysia commends the recent political agreement on the ambitious binding  
renewable energy target for the European Union of 32% and a target of 14% for renewable energy 
in transport by 2030, reached at the trialogue negotiations in Brussels, Belgium on 14 June 2018.  
4.  Malaysia however, wishes to reiterate our concerned with the discriminatory treatment of 
biofuels from palm oil under the updated Renewable Energy Directive (RED II). While we 
understand that the final text of the Directive will have to be formally approved by the European 
Parliament and the Council, Malaysia is of the view that the amendments, particularly on the 
provisions affecting palm oil is discriminatory and negatively impact the reputation of palm oil.  
5.  The press release of the European Parliament on 14 June 2018 and I quote, [Food -crop biofuels 
like palm oil , which have a high "indirect land use change " (ILUC, i.e. changing how land from 
non-crop cultivation, such as grasslands and forests, with a negative impact on CO2 emissions, is 
used), will be phased out through a certification process for low ILUC biofu els, which is to be set 
up].  
6.  The calculations of emissions from indirect land use change (ILUC) are questionable. Firstly, 
ILUC models give very inconsistent results as shown by studies done and commissioned by the 
European Commission. In this context, th e European Commission has thus refrained from inclusion 
of ILUC in its computations of GHG emissions until now. Secondly, there is so much of 
uncertainties with respect to the assumptions used including among others, the methodologies, 
assumptions inputs r egarding oil palm plantations and in estimating the greenhouse gas (GHG) 
emissions in the production of palm oil and projections of oil palm expansion types of land that will 
be used. Thirdly, due to the geography of Malaysia as well as other palm oil prod ucing countries, 
there is a possibility that palm oil -based biofuels be disqualified under the EU RED due to the land 
conversion criteria. Additionally, palm oil planted on certain type of soil that naturally emits more G/TBT/W/548  
 
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  greenhouse gases (due to the soil 's composition) is likely to fall foul of this requirement and 
subsequently, the EU 's GHG criteria.  
7.  The statement to single out palm oil as having high ILUC is discriminatory and unfair. This 
tarnishes the reputation and image of the oil palm industry. There is no precedent for a phase out 
of the use of a specific crop. As such, the Malaysian oil palm industry is being penalised by 
unjustified allegations. Malaysia, with its long standing and established diplomatic and trade 
relations with the European Union, reiterates our readiness to engage and have dialogue to 
address the concern through science -based evidence.  
8.  Based on the troubling and seemingly inexplicable development, the only conclusion Malaysia 
could reach at this point is that the compromise agreem ents were unwarranted barriers to trade 
and the situation needed to be rectified.  
9.  As we indicated in the past, Malaysia among several other members that are most likely to be 
affected by the proposed related measures on palm oil. Such, we again call on th e EU notify the 
draft measures to the TBT Committee, in accordance with the obligation of Article 2.9 of 
Agreement, swiftly. Receiving more information on the draft measures at an early stage before 
they are finalised and adopted would not only give opport unity to Malaysia; but other Members to 
comment on the draft measures.  
10.  Malaysia will continue to monitor the development of the intended amendments of the EU 
RED. 
11.  We look forward to the response from the EU.  
 
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