G/TBT/W/665  
 
19 July 2019  
(19-4816) 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 MALAY SIA TO THE COMMITTEE ON  TECHNICAL BARRIERS TO TRADE  
20 AND 21 JUNE 2019  
The following communication, dated 19 July 2019, is being circulated at the request of the delegation 
of Malay sia. 
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1.  Malaysia remains very concerned with the development related to the Commission Delegated 
Regulation (EU) 2019/807 of 13 March 2019 supplementing Directive (EU) 2018/20 01 of the 
European Parliament and of the Council as regards the determination of high indirect land use change 
risk feedstock for which a significant expansion of the production area into land with high carbon 
stock is observed and the certification of low  indirect land use change risk biofuels, bioliquids and 
biomass fuels which was published in the Official Journal of the European Union on 21 May 2019, 
which entered into force on the twentieth day following that of its publication.  
2.  We appreciate the Europ ean Union for their willingness for open discussion to exchange facts, 
information and views. However, the continued bilateral engagement with the European Union with 
the aim to find a mutually beneficial and mutually acceptable way forward had not resulte d in a fair 
treatment for palm oil produced in Malaysia.  
3.  The delegated regulation is evidently inconsistent with the national treatment and the most 
favoured nation treatment (MFN) obligations under Article 2.1 of the Technical Barriers to Trade 
(TBT) Agr eement and Article III of the General Agreement on Tariffs and Trade (GATT) 1994.  
4.  The delegated regulation categorised palm oil as a high indirect land use change risk feedstock 
while the other major oil crops namely, rapeseed oil, soybean oil and sunflow er oil are categorised 
as low indirect land use change risk feedstock. High indirect land use change feedstock will not be 
taken into consideration for contributing towards the renewable energy targets of the EU and will 
not be eligible for financial suppo rt under the Directive (EU) 2018/2001.  
5.  Therefore, the delegated regulation has culminated into a technical barrier to trade that distorts 
the market and pricing system. The delegated regulation is a measure which is against the principle 
of free trade tha t is unfavourable to palm oil. We remain troubled as this creates the arbitrary or 
unjustifiable discrimination disguised restriction on international trading of palm oil and its products. 
This is taking into consideration that the delegated regulation cre ates unnecessary obstacles which 
are more trade restrictive than necessary and more burdensome for producers of palm oil -based 
biofuels and bioliquids including Malaysia.  
6.  We urge the European Union to provide an equitable treatment across all oil crops bio fuels 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.  Malaysia wishes to reiterate that we recognise the importance and the urge nt need for the 
protection of the environment and the conservation of biodiversity. In this connection, Malaysia 
wishes to emphasise that we are very serious and committed in combating climate change and global 
warming.  G/TBT/W/665  
 
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  8.  We have put in place policy framewo rk and implementing sustainable practices and measures to 
ensure the protection of the environment including among others, reducing greenhouse gas 
emission, prevention of pollution and environmental degradation, and efficient management of 
resources and wa stes.  
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 conve rsion of permanent forest reserved 
area and peatland for oil palm cultivation; to further strengthen regulations with regard to existing 
oil palm cultivated on peat; and to make available oil palm plantation maps for public access and to 
demonstrate furthe r transparency in the supply chain.  
10.  We also wish to underline that the Malaysian oil palm industry is one of the best regulated in 
the world with more than 60 laws and regulations related to its development. The Malaysian oil palm 
industry is also committe d to produce palm oil in a sustainable manner.  
11.  Malaysia continues to maintain 55.3% of its land area under forest cover, which exceeds 
Malaysia 's commitment to retain at least 50% at the Rio Earth Summit in 1992. This is far higher 
than the forest cover in  most large countries of the European Union including France, Germany, Italy 
and the United Kingdom.  
12.  Under the Paris Agreement, Malaysia has committed our ambitious Nationally Determined 
Commitment (NDC) to reduce emissions intensity of gross domestic prod uct (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. In this context, we request to European Union to take into consideration 
the continuous efforts to mit igate climate change.  
13.  Malaysia remains fully 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 E uropean Union.  
14.  On that note, we look forward to the positive response from the European Union.  
 
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