JOURNAL MONITOR EDITION 23 : THE PALM OIL PHASE-OUT PLAN, TRIGGERS AN INCREASE IN EMISSIONS AND GLOBAL DEFORESTATION
Journal Pages Number
Journal Document Type
Various attempts have been made by the European Union to hostile and inhibit the trade of palm oil in the EU countries. After failing to spread the negative issue of oil palm in the health sector, EU Commission issued policy regarding palm oil and its derivative products (especially palm oil biodiesel) that linked with environmental issue, namely RED II-ILUC. Based their indicator used in the ILUC Delegated Regulation, palm oil is classified as a high risk Indirect Land Use Change (ILUC) so that palm oil must be phase out in the use of European biodiesel.
The policy is considered to discriminate against palm oil. To fight discrimination against palm oil by the European Commission, the Indonesian government filed a lawsuit against the WTO. However, we need to know the paradigm contained in the EU policy, such as whether it is true that replacing palm oil to other vegetable oils is a solution that is in favor of the environment or it will further cause environmental damage.
FAO (2013) study concluded that palm oil has advantages when compared to soybean oil and rapeseed oil. The advantage of palm oil is that it is more efficient in the use of production inputs, land, and energy so that it will produce less pollution and emissions. It means if we compared with production of soybean oil and rapeseed oil, palm oil production more safer for the environment (ecofriendly). And then, the study become a basic to simulatiom of replacing palm oil. Simulation result show that replacing palm oil into soybean oil or rapeseed oil, it will actually have an impact on increasing pollution and emissions as well as increasing deforestation that occurs in various countries, especially producing and exporting countries of soybean oil and rapeseed oil. The bad impact of replacing palm oil will further exacerbate global environmental damage.
This means that the aims and objectives of the EU RED II policy to reduce ILUC emissions are in contrast to the impact resulting from replacing palm oil, namely increasing pollution, emissions and deforestation. In other words, the EU RED II policy by replacing palm oil has actually resulted in even more environmental damage in various countries in the world.