Tuesday, 18 February 2020 | 21:00 WIB

Vincent Guerend Affirms EU Remains Palm Oil Market for Indonesia

EU Ambassador to Indonesia Vincent Guerend.

JAKARTA, NNC - EU Ambassador to Indonesia Vincent Guerend stressed that the EU remains the most open market for Indonesian palm oil.

In a written statement in Semarang on Saturday (6/16/2018) night, it was mentioned that it was based on the outcome of a meeting between the European Commission, the European Parliament and the European Union Council on the revision to the EU Renewable Energy Directive (RED II) which was implemented on June 14.

As the EU's efforts to combat climate change, the meeting has agreed on a revised EU Renewable Energy Directive including a gradual reduction of certain categories of biofuels or certain biofuels that are calculated to meet ambitious renewable energy use target of 32 percent by 2030.

"Biofuel will be studied with the same treatment, without looking at the source. The text of RED II will not distinguish or ban palm oil," said Ambassador Guerend as quoted by Antara.

The EU explains that there is no specific or explicit reference to palm oil in the RED II Text. This means, there is no prohibition or restriction on palm oil imports or palm oil based biofuels.

The relevant provisions in RED II are only aimed at regulating the extent to which certain biofuels can be calculated by EU member states to achieve their sustainable energy targets.

"The EU market remains open for palm oil imports. For Indonesia, the EU is the second largest export market of palm oil, and EU imports have increased significantly in 2017 by 28 percent," Guerend said.

Also included within the new regulatory framework is a binding renewable energy target for the European Union at least 32 percent by 2030 compared to the previous 27 percent. This percentage may be increased again after review in 2023.

This will enable Europe to retain its role as a leader in the fight against climate change, in transitioning to environmentally friendly energy, and in meeting the objectives set by the Paris Agreement, that is, limiting global warming to two degrees Celsius, and achieving a balance between sources and sinks of greenhouse gases in the second half of the century on the basis of equity, sustainable development, and poverty alleviation efforts.

After a political agreement was made on June 14, 2018, the RED II directive text shall be formally approved by the European Parliament and the Council of the European Union.

Upon ratification by the two legislatures in the coming months, updated Renewable Energy Directive will be published in the Official Journal of the European Union and will come into force 20 days after publication.

EU Member States should take new elements of RED II and make it part of the national law no later than 18 months after the date of its entry into force.