JOURNAL MONITOR VOL.2 NO.6 : PALM OIL: BIOFUELING THE WORLD
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In the last two decades, many countries have developed biofuels such as biodiesel. Policy and incentives support provided by the government have an impact on positive trends in global biodiesel production from 31.1 million kiloliters in 2015 to 44.7 million kiloliters in 2020.
The top-5 biodiesel producers in the world are the European Union, United States, Indonesia, Brazil, and Argentina, respectively. Biodiesel production in each country depends on the availability of raw materials (feedstock), such as United States, Brazil, and Argentina develop soybean-based biodiesel, European Union develop rapeseed-based biodiesel or mixed-based biodiesel and Indonesia develops palm oil-based biodiesel. However, through global trade, biodiesel industry in various countries have the opportunity to enjoy and utilize feedstocks that are considered more competitive, such as palm oil.
In fact, palm oil’s share in global feedstock market continue to increase. With several advantages of palm oil in the world vegetable oil market such as competitive prices, large volumes, and stable supply, it has enabled palm oil to be able to play a role as a provider of bio-fueling for the global community. Two important roles/contributions of palm oil as global bio-fueling are producing palm oil biodiesel and/or biodiesel feedstock both in it’s oil or Used Cooking Oil (UCO) as waste from the use of palm cooking oil, and also has the potential to prevent a food-fuel trade-off in the development of biodiesel.
This further shows that the palm oil-based biodiesel in addition to reducing dependence on fossil fuel, but also contributes to the achievement of SDGs, especially SDG-7 (affordable and clean energy), and also contributes to other goals such as SDG-1 (No Poverty), SDG-8 (decent work and economic growth) and SDG-13 (climate action).