Indonesia may give greater priority to Asian, Eastern European and Middle Eastern palm oil buyers
Indonesia may give greater priority to Asian, Eastern European and Middle Eastern palm oil buyers because of possible new environmental regulations in the United States and Europe, the Indonesian palm oil association (Gapki) said.
“We threat (threaten) EU and US to move our product to other regions because of too many non-tariff barriers,” said Gapki official Tofan Mahdi.
The Southeast Asian palm oil industry failed in late January to meet greenhouse gas saving standards to qualify for the U.S. renewable fuels programme.
The U.S. Environmental Protection Agency (EPA) said palm oil converted into biofuels in Indonesia and Malaysia cut up to 17 percent of climate warming emissions, falling short of a 20 percent requirement to enter the world’s largest energy market.
Gapki officials fear U.S. efforts to limit palm oil’s uses based on environmental concerns could spread to Europe.