G/TBT/W/575  
 
4 Dec ember 2018  
(18-7633) Page: 1/2 
Committee on Technical Barriers to Trade  Original: English  
 
EUROPEAN UNION — AMENDMENTS TO THE DIREC TIVE 2009/28/EC,  
RENEWABLE ENERGY DIR ECTIVE  
STATEMENT BY MALAYSI A TO THE COMMITTEE ON TECHNICAL BARRIERS T O TRADE  
14 AND 15  NOVEMBER  2018 
The following communication, dated 3 Dec ember 2018 , is being circulated at the request of the 
delegation of Malaysia.  
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1.  Malaysia remains concerned w ith the recast of the Directive of the European Parliament and of 
the Council on Promotion of the use of energy from renewable sources or common ly known as 
Renewable Energy Directive II (RED II) which was adopted by the European Parliament early this 
week in Strasbourg. Malaysia is concerned with the development of RED II that may adversely affect 
the development of the Malaysian oil palm industry . We would also wish to refer to our statements 
made at the previous TBT Meetings highlighting the concerns on such amendments to the Directive 
be captured in the Minutes of Meeting.  
2.  Malaysia would like to thank the European Union for the opportunity to wo rk constructively with 
the European Union in finding a mutually acceptable way forward bilaterally;  both in Geneva and 
Brussels as well as through the various WTO Committees.  In this context, Malaysia wishes to 
reiterate our willingness for a balanced and positive dialogue to resolve the concern on the criteria 
for certification of the low - and high - indirect land use change risk biofuels to be developed by the 
European Commission in the delegated act of RED II. This is taking into consideration that the 
indirect land use change would very likely discriminate against palm oil and affect the market access 
of biofuels and bioliquids produced from palm oil into the European Union.  
3.  While Malaysia recognises the importance of environmental protection and conserv ation, t he 
indirect land use change methodology is a debat able pseudoscience modelling approach , and it is 
not a recognised international standard. Indirect land use change cannot be measured but is based 
on many assumptions which resulted in uncertainties  and controversial outcomes. For that reason , 
Malaysia seeks clarification from the European Union on the adoption of such questionable 
methodology  as part of the RED II for implementation post 2020.  
4.  We also urge the European Union, in accordance with Arti cle 2.9 of the Agreement on TBT, 
particularly, Articles 2.9.3 and 2.9.4 which include among others, to provide the proposed technical 
regulation of the indirect land use change which is not an international standard and allow reasonable 
time for comments a nd discussion with other Members. We also urge the European Union to be  
transparen t in the development of criteria for certification for indirect land use change.  
5.  With the adoption of the RED II in the plenary on 13 November 2018, the European Commission, 
under the delegated act, will set up the criteria for certification for low - and high - indirect land use 
change risk biofuels. Currently, biofuels and bioliquids have to be certified under voluntary schemes 
to demonstrate compliance with the sustainability  and greenhouse gas emission saving criteria 
stipulated under the existing Renewable Energy Directive. Thus, the additional criteria for 
certification of indirect land use change will result in creating unnecessary obstacles to international 
trade of biofu els and bioliquids to the European Union. It is more trade restrictive than necessary 
and more burdensome for producers of biofuels and bioliquids including Malaysia that produces 
biofuels and bioliquids from palm oil.  Malaysia seeks clarity from the European Union as to whether 
such certification would be  applicable to all biofuels.  G/TBT/W/575  
 
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  6.  In addition, t he ILUC certification will impose additional cost which will be more burdensome for 
the Malaysian oil palm industry , particularly to the smallholder s which accounts for 40% of the 
planted area . Malaysia as a major exporter of palm products to the European Union continues to 
have concern over  the increasingly restrictive measures on palm oil as outlined in the European 
Union RED II . We request  the Euro pean Union to undertake measures that are in line with Article s 
2.1 and 2.2  of the TBT Agreement . 
7.  Malaysia is committed to realising the 2030 Agenda for Sustainable Development and its 17 
Sustainable Development Goals and has developed the National Sustain able Development Goals 
Roadmap. The Sustainable Development Goals are a universal call to action to end poverty, protect 
the planet and ensure that all people enjoy peace and prosperity. In this context, the oil palm 
industry plays a very important role in  contributing positively and constructively towards achieving 
the Sustainable Development Goals. The Malaysian oil palm industry contributes significantly to 
Malaysia 's economy and provides a key source of income for our 650,000 smallholders.  
8.  Malaysia is committed to maintain at least 50% of our land under forested areas as pledged in 
the 1992 Rio Earth Summit, reiterated at the United Nations Climate Change Conference, the 
fifteenth session of the Conference of the Parties (COP 15), Copenhagen in 2009 and  the twenty -
first session of the Conference of the Parties (COP 21), Paris in 2015. In this context, we are proud 
to share that we have 55.3% of our land under forested areas as of today. Malaysia is also committed 
to protection and conservation of the cou ntry's rich biodiversity.  
9.  Malaysia would like to re emphasise our readiness to establishing a balanced and constructive 
dialogue with the European Union to ensure a non -discriminatory treatment against palm products 
and to prevent the unnecessary technical barriers to trading of palm products into the European 
Union.  
10.  On that note,  we look forward to the response from the E uropean Union. 
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