The Strategist

Indonesia complains to WTO about EU's ban on palm oil-based biofuels

12/16/2019 - 08:21

The reason for the appeal was a ban imposed by European authorities on the use of palm oil-based biofuels.

According to the report of the Indonesian Ministry of Trade, the country's authorities consider the ban unjust. In addition, it is regarded as an unscrupulous attempt by the EU leadership to protect their own goods from competition.

The ban is introduced under the European Second Renewable Energy Directive (RED II), which entered into force a year ago. The paper implies that by 2030 biofuels, including those based on palm oil, will disappear from the EU market. Europe believes that although it is itself environmentally friendly, growing raw materials for such fuel takes up too much sown area, and this leads to deforestation, destruction of swamps and peat bogs, that is, it causes serious damage to nature.

In April this year, the presidents of Indonesia and Malaysia signed a joint letter of objection to the European Union’s plan to phase out the use of palm oil in renewable fuels.