KUALA LUMPUR (Reuters) -Malaysia’s state palm oil agency said on Thursday that it welcomed the European Union’s proposal to delay the launch of its anti-deforestation law for a second time.
The decision will allow time for the EU to address concerns about the implementation of the regulation, as well as its significant operational and structural flaws, the Malaysian Palm Oil Council said in a statement.
The EU deforestation regulation, known as EUDR, will ban the imports of commodities including soy, beef, cocoa and palm oil that are linked to forest destruction.
The MPOC questioned the viability of the regulation after heavy investment by companies seeking to comply with the law and broader industry efforts to improve sustainability.
“Despite these efforts, the current EUDR framework contains numerous operational deficiencies, which fail to reward responsible leadership in sustainable practices,” it said.
The EU had already delayed the law by a year, amid opposition from industry and trade partners like Brazil, Indonesia and the United States, who complained about the cost of compliance.
Malaysia, one of the world’s largest producers of palm oil, has previously raised objections about the burden of complying with the law as well as its classification by the EU as a “standard risk” country.
Under the EU regulations, 3% of all shipments from “standard risk” countries need to be inspected by the authorities, while “low risk” countries face less stringent due diligence rules.
(Reporting by Rozanna Latiff; Editing by David Stanway)
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