European Moves to Restrict Palm Oil Have Enraged Malaysia and Indonesia
By Joe Sandler Clarke
"Don't expect us to continue buying European products," Malaysia's former plantations minister Mah Siew Keong told reporters in January last year. His comments came just after he had accused the EU of "practising a form of crop apartheid."
A few months later Luhut Pandjaitan, an Indonesian government minister close to President Joko 'Jokowi' Widodo, warned his country would retaliate if it was "cornered" by the EU.
In the past two years the European Commission and several European countries have weighed up plans to restrict imports of palm oil amid growing concern about the environmental impact of the crop. But the world's biggest producers launched an aggressive diplomatic pushback, threatening to cancel deals worth billions for everything from salmon to fighter jets.
Groups backed by the Malaysian government launched social media campaigns against European government officials and a well-known supermarket, at the same time.
Unearthed has pieced together the story of the diplomatic spat through conversations with stakeholders, politicians and official emails.
Palm oil is a cheap and versatile vegetable oil, derived from the oil palm tree that grows easily in the tropics. It has seeped into everything over the last two decades, from chocolate bars to jet fuel.
In the 20 years from 1995 to 2015, global palm oil production increased from 15.2 million tons to 62.6 million tons. It's been estimated that 50 percent of all packaged goods sold in western supermarkets contain palm oil.
Some conservationists say palm oil is a good alternative to other environmentally unfriendly crops, because it uses less land than other vegetable oils.
However, its environmental impact on Indonesia and Malaysia, which together produce about 85 percent of the world's palm oil, has been marked; contributing to a big increase in deforestation in both countries. Today, Indonesia is the world's fifth biggest emitter of greenhouse gases, mainly due to land use change. According to Global Forest Watch, from 2001 to 2017 the country lost 24.4 million hectares (Mha) of tree cover, equivalent to 2.44 gigatons of CO₂ emissions. Malaysia lost 7.29Mha of tree cover in the same period.
A study published in February last year in the journal Cell Biology found that 150,000 Borneo orangutans were lost between 1999 and 2015, partly as a result of the expansion of the palm oil trade. The IUCN states that 193 critically endangered, endangered or vulnerable animals — including African forest elephants and chimpanzees — are directly threatened by palm oil.
As well as the obvious environmental disruption, the dramatic growth of the palm oil sector has reshaped the political and economic systems of both Malaysia and Indonesia.
Today palm oil exports make up between 5 percent and 7 percent of GDP in both countries. Helena Varkkey, a senior lecturer in international relations at the University of Malaya, explains that over the last two decades "palm oil has become intrinsically linked to development in Malaysia, both as a vehicle for economic growth and as a way for the state to get smallholder farmers out of poverty."
Varkkey says the growth of the industry in southeast Asia has created a powerful and well-connected political lobby, backed up by nationalistic pride and an ideological commitment to the crop.
Diplomatic pressure from Malaysia and Indonesia intensified at the start of last year, when MEPs voted to phase-out palm oil in biofuels from counting towards the EU's new renewable energy guidelines, which will take effect in 2020.
These rules pose a particular problem to palm oil companies, because a decade or so ago analysts predicted a glowing future for biofuels. In 2010 the EU drafted its first renewable energy directive, setting clean energy rules and targets for member states, and providing an incentive for member states to switch to palm oil-based biodiesel for cars.
In anticipation, palm oil producers stepped up production and created new plantations. These plantations have now reached maturity, but with scientists and legislators increasingly aware of the environmental impact of crops like palm oil, the expected biofuels boom has not materialized, leaving producers with a mounting oversupply problem.
Chris Malins, a consultant on alternative fuels explains: "The biggest potential growth area for palm oil is fuels. This is a growing industry in the medium and long term, and nothing Europe does will change that, but if we stop layering on additional demand for palm oil in biofuels that will limit those more aggressive demand scenarios."
The vote in the European Parliament set off a major lobbying effort by the Indonesian and Malaysian governments and palm oil interests both in Brussels and in European capitals, as the European Commission deliberated over the final shape of the new green energy rules.
In the UK Indonesian and Malaysian officials appeared to dangle a post-Brexit trade deal in an effort to get the UK to oppose the EU move on palm oil in biofuels, according to government emails from early February 2018.
Foreign Office officials said a few days later that "every minister engaging with Malaysia" should expect to be lobbied on palm oil, including Theresa May, who was due to meet then Malaysian Prime Minister Najib Razak at the Commonwealth heads of government meeting in April 2018. In the end, Razak was unable to attend the event.
British diplomats also feared that the EU fight could torpedo a multi-billion pound deal for Malaysia to replace its aging fighter jet fleet with Eurofighter Typhoon jets manufactured by BAE Systems. And Foreign Office staff complained about both countries putting pressure on diplomats to hit back on a move by Iceland supermarket to remove palm oil from its own-brand goods.
With a number of European countries considering their own moves to limit palm oil imports on environmental reasons, the push-back on the continent was similarly intense.
This January, Malaysia's new-elected premier, Mahathir Bin Mohamed, sent a personal letter to Emmanuel Macron threatening the suspension of free trade talks and "regrettable economic and trade consequences" for €6 billion of French exports, because of the French "de facto ban" on palm oil. In early summer 2018, French politicians moved to cap and progressively phase-out imports of the commodity.
The move came two-and-a-half-years after French politicians scrapped plans for a tax on unsustainable palm oil in 2016 after being warned that passing the law could lead to the execution of a French citizen convicted of drug trafficking in Indonesia, as reported here.
When the Norwegian parliament asked the government to develop measures to exclude biofuels with a high risk of deforestation, both Indonesia and Malaysia tried to hit back.
Mahathir wrote to the Norwegian prime minister Erna Solberg in January warning that the country's plan to phase out palm oil from biofuels in 2020 could have "regrettable economic and trade consequences" both for Malaysia's smallholder farmers and for Norway. Malaysia's new primary industries minister, Teresa Kok, warned that free trade negotiations with European Free Trade Association (EFTA) states (which includes Norway, as well as Iceland, Liechtenstein and Switzerland) could be "adversely affected."
Art direction: Georgie Johnson. Illustration: Freya Morgan
Speaking to reporters after the signing of the Indonesia-EFTA trade deal in December last year, Indonesian trade minister Enggartiasto Lukita said palm oil had been a major sticking point in negotiations.
Lukita added that he had threatened to leave Norwegian salmon out of the deal if EFTA states restricted access for palm oil. "I said, we've gone a long way. You will benefit from this and I too. So if you don't open up for our palm, let's just forget about this."
The Norwegian government declined to comment when approached by Unearthed.
'Don't Be Like Richard'
These high-level diplomatic spats have been matched by an online campaign established by Malaysia's smallholder associations and Malaysian government agencies targeting the EU, key member states and private companies.
Last spring, after Iceland supermarket announced its high-profile palm oil move, a group called Human Faces of Palm Oil began spreading messages on social media about the company's Executive Director Richard Walker. One video posted on Twitter and YouTube ran with the line: "Richard only wants to attack poor palm oil small farmers in Africa and Asia. Don't be like Richard."
Why Iceland and Mr Walker are wrong about palm oil, in one short video. https://t.co/SpYvoNIaUN— Faces of Palm Oil (@Faces of Palm Oil)1524088665.0
As the Times reported, while Human Faces of Palm Oil describes itself as a platform to tell the stories of Malaysia palm oil smallholders, it was set up by several Malaysian groups, including two government agencies: Federal Land Development Authority (FELDA) and the Sarawak Land Consolidation and Rehabilitation Authority (SALCRA).
The Malaysian Palm Oil Council (MPOC), an official trade body, is also listed online as one of the groups behind the Human Faces of Palm Oil. MPOC operates from the same physical address as the economic and industry division of the Malaysian Palm Oil Board (MPOB), a government agency.
MPOC made its presence felt during free trade agreement negotiations in Europe last autumn, when CEO Kalyana Sundram dominated discussions that were supposed to be led by plantations minister Teresa Kok, according to one senior European political figure at the table, who asked to remain anonymous.
"It was weird because this lobbyist was interfering a lot in the discussions," the official explained. "He would say stuff like 'the minister wants to tell you …' or [he would] translate what she had tried to say. I found it peculiar because normally the minister is the boss of the lobbyist but it seemed as if the lobbyist was in charge of the minister."
Neither Kok nor Sundram responded to a request for comment from Unearthed.
Farmers Unite, another online campaign publicly backed by MPOC, launched with three full-page ads in the run-up to Christmas in the London free newspaper City AM, calling on Iceland boss Walker to end his "colonial crusade" against palm oil.
The group's founder Thompson Ayodele wrote a series of op-eds in Asia and west Africa, at the same time, decrying moves in Europe to restrict palm oil imports. Ayodele is the founder of the Nigerian thinktank the Initiative for Public Policy Analysis (IPPA) and in 2015 authored research for Malaysia's Sime Darby Plantation.
The National Association of Smallholders (NASH) is another Malaysian group publicly backing both the Human Faces of Palm Oil and Farmers Unite campaigns. Over the last 12 months, NASH has placed several ads in Politico Europe, a magazine that reaches power brokers in Brussels, denouncing the EU's palm oil policy as "crop apartheid."
Unearthed approached NASH, Thompson Ayodele and MPOC for a comment on this story, but received no response.
Farmers Unite did, however, issue the following tweet.
.@JSandlerClarke @ArthurNeslen the constant attacks from @foeeurope , @icelandrichard and others are discriminatory… https://t.co/AgqBQ72C33— PalmOilFarmersUnite (@PalmOilFarmersUnite)1552443169.0
Last Wednesday, after all the diplomatic wrangling, the European Commission recommended that palm oil should be phased-out from transport fuel on environmental grounds. The EU measure places limits on what types of palm oil biofuels can count towards member states' renewable energy targets.
The Malaysian government called the move a "calculated political act" and threatened to bring a World Trade Organization challenge if it goes ahead.
A statement from the country's foreign ministry read: "Such an aggressive trade barrier targeted at Malaysia's national interests, and our 650,000 small farmers, cannot pass without a strong response."
What’s Worse Than Palm Oil for the Environment? Other Vegetable Oils, IUCN Study Finds https://t.co/Hr1LvfA2FS @RAN @orangutans @opfuk— EcoWatch (@EcoWatch)1530755705.0
Reposted with permission from our media associate Unearthed.
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EcoWatch Daily Newsletter
By Mark Hertsgaard
What follows are not candidate endorsements. Rather, this nonpartisan guide aims to inform voters' choices, help journalists decide what races to follow, and explore what the 2020 elections could portend for climate action in the United States in 2021 and beyond.
Will the White House Turn Green?<p>Whether the White House changes hands is the most important climate question of the 2020 elections. President Donald Trump rejects climate science, is withdrawing the United States from the Paris Agreement, and has accelerated fossil fuel development. His climate policy seems to be, as he tweeted in January when rejecting a U.S. Army Corps of Engineers proposal to protect New York City from storm surges, "Get your mops and buckets ready."</p><p>Joe Biden, who started the 2020 campaign with a climate position so weak that activists gave it an "F," called Trump a "climate arsonist" during California's recent wildfires. Biden backs a $2 trillion plan to create millions of jobs while slashing emissions—a Green New Deal in all but name. Equally striking, his running mate, California Senator Kamala Harris, has endorsed phasing out fossil fuel production—a politically explosive scientific imperative.</p><p>The race will be decided in a handful of battleground states, five of which already face grave climate dangers: Florida (hurricanes and sea-level rise), North Carolina (ditto), Texas (storms and drought), Michigan (floods), and Arizona (heat waves and drought). <a href="https://climatecommunication.yale.edu/visualizations-data/ycom-us/" target="_blank">Public concern is rising</a> in these states, but will that concern translate into votes?</p>
Will Democrats Flip the Senate, and by Enough to Pass a Green New Deal?<p>With Democrats all but certain to maintain their majority in the U.S. House of Representatives, the Senate will determine whether a potential Biden administration can actually deliver climate progress. Democrats need to pick up three seats to flip the Senate if Biden wins, four if he doesn't. But since aggressive climate policy is shunned by some Democrats, notably Joe Manchin of coal-dependent West Virginia, Democrats probably need to gain five or six Senate seats to pass a Green New Deal.</p><p>Environmentalists, including the League of Conservation Voters, are targeting six Republicans who polls suggest are vulnerable.</p><ul><li>Steve Daines of Montana, who denies climate science</li><li>Martha McSally of Arizona</li><li>Thom Tillis of North Carolina</li><li>Susan Collins of Maine</li><li>Joni Ernst of Iowa (bankrolled by Charles Koch)</li><li>John James of Michigan (also a Koch beneficiary)</li></ul><p>Republican Senators are even at risk in conservative Kansas and Alaska. In both states, the Democratic candidates are physicians—not a bad credential amid a pandemic—who support climate action. In Kansas, Barbara Bollier faces an incumbent funded by Charles Koch. In Alaska, Al Gross urges a transition away from oil, though his openness to limited drilling in the Arctic National Wildlife Preserve dims his appeal to green groups. He faces incumbent Republican Dan Sullivan, who receives an 8 percent lifetime voting record from the League of Conservation Voters.</p>
Will Local and State Races Advance Climate Progress?<h4>THE CLIMATE HAWKS</h4><p>Under Democratic and Republican leadership alike, Washington has long been a graveyard for strong climate action. But governors can boost or block renewable energy; the Vermont and New Hampshire races are worth watching. Attorneys general can sue fossil fuel companies for lying about climate change; climate hawks are running for the top law enforcement seats in Montana and North Carolina. State legislatures can accelerate or delay climate progress, as the new Democratic majorities in Virginia have shown. Here, races to watch include Pennsylvania, North Carolina, and Colorado.</p><h4>THE CLIMATE POLICY MAKERS</h4><p>Perhaps the most powerful, and most overlooked, climate policy makers are public utility commissions. They control whether pipelines and other energy infrastructure gets built; they regulate whether electric utilities expand solar and energy efficiency or stick with the carbon-heavy status quo. Regulatory capture and outright corruption are not uncommon.</p><p>A prime example is Arizona, where a former two-term commissioner known as the godfather of solar in the state is seeking a comeback. Bill Mundell argues that since Arizona law permits utilities to contribute to commissioners' electoral campaigns, the companies can buy their own regulators. Which may explain why super-sunny Arizona has so little installed solar capacity.</p><p>In South Dakota, Remi Bald Eagle, a Native American U.S. Army veteran, seeks a seat on the South Dakota Public Utilities Commission, which rules on the Standing Rock oil pipeline. And in what <em>HuffPost</em> called "the most important environmental race in the country," Democrat Chrysta Castaneda, who favors phasing out oil production, is running for the Texas Railroad Commission, which despite its name decides what oil, gas, and electric companies in America's leading petro-state can build.</p>
Will the Influencers Usher in a Green New Era?<h4>THE UNCOUNTED</h4><p>The story that goes largely under-reported in every U.S. election is how few Americans vote. In 2016, some 90 million, <a href="https://www.pewresearch.org/politics/2018/08/09/an-examination-of-the-2016-electorate-based-on-validated-voters/" target="_blank" rel="noopener noreferrer">roughly four out of every 10 eligible voters</a>, did not cast a ballot. Attorney Nathaniel Stinnett claims that 10 million of these nonvoters nevertheless identify as environmentalists: They support green policies, even donate to activist groups; they just don't vote. Stinnett's <a href="https://www.environmentalvoter.org/" target="_blank" rel="noopener noreferrer">Environmental Voter Project</a> works to awaken this sleeping giant.</p><h4>THE SUNRISE MOVEMENT</h4><p>Meanwhile, the young climate activists of the <a href="http://www.sunrisemovement.org/" target="_blank" rel="noopener noreferrer">Sunrise Movement</a> are already winning elections with an unabashedly Green New Deal message. More than any other group, Sunrise pushed the Green New Deal into the national political conversation, helping Representative Alexandria Ocasio-Cortez and Senator Ed Markey draft the eponymous congressional resolution. In 2020, Sunrise has helped Green New Deal champions defeat centrists in Democratic primaries, with Markey dealing Representative Joe Kennedy Jr. the first defeat a Kennedy has ever suffered in a Massachusetts election. But can Sunrise also be successful against Republicans in the general elections this fall?</p><h4>THE STARPOWER</h4><p>And an intriguing wild card: celebrity firepower, grassroots activism, and big-bucks marketing have converged behind a campaign to get Latina mothers to vote climate in 2020. Latinos have long been the U.S. demographic most concerned about climate change. Now, <a href="https://votelikeamadre.com/" target="_blank" rel="noopener noreferrer">Vote Like A Madre</a> aims to get 5 million Latina mothers in Florida, Texas, and Arizona to the polls. Jennifer Lopez, Salma Hayak, and Lin-Manuel Miranda are urging mothers to make a "pinky promise" to vote for their kids' climate future in November. Turning out even a quarter of those 5 million voters, though no easy task, could swing the results in three states Trump must win to remain president, which brings us back to the first category, "Will the White House Turn Green?"</p>
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By Tony Carnie
South Africa is home to around 1,300 of the world's roughly 7,100 remaining cheetahs. It's also the only country in the world with significant cheetah population growth, thanks largely to a nongovernmental conservation project that depends on careful and intensive human management of small, fenced-in cheetah populations. Because most of the reserves are privately funded and properly fenced, the animals benefit from higher levels of security than in the increasingly thinly funded state reserves.
Vincent van der Merwe at a cheetah translocation. Endangered Wildlife Trust
Under Pressure<p>Cheetah populations elsewhere in Southern Africa have not prospered over the past 50 years. In Zimbabwe, cheetah numbers have crashed from 1,500 in 1975, to just 170 today. Botswana's cheetah population has held steady at around 1,500 over the same period, but illegal capture for captive breeding and conflicts with farmers and the growing human population are increasing. In Namibia, there were an estimated 3,000 cheetah in in 1975; roughly 1,400 remain today.</p><p>In contrast, South Africa's cheetah numbers have grown from about 500 in 1975 to nearly 1,300 today. Van der Merwe, who is also a Ph.D. student at the University of Cape Town's Institute for Communities and Wildlife in Africa (iCWild), says he's confident that South Africa will soon overtake Namibia and Botswana, largely because the majority of South African cheetahs are protected and managed behind fences, whereas most of the animals in the neighboring countries remain more vulnerable on mainly unfenced lands.</p><p>Wildlife researchers Florian Weise and colleagues have reported that private stock owners in Namibia still trap cheetahs mainly for translocation, but there are few public or private reserves large enough to contain them. Weise says that conservation efforts need to focus on improving tolerance toward cheetahs in commercial livestock and game farming areas to reduce indiscriminate trapping.</p><p>Van der Merwe says fences can be both a blessing and a curse. While these barriers prevent cheetahs and other wild animals from migrating naturally to breed and feed, they also protect cheetahs from the growing tide of threats from humanity and agriculture.</p><p>To simulate natural dispersion patterns that guard against inbreeding, the trust helps landowners swap their animals with other cheetah reserves elsewhere in the country. The South African metapopulation project has been so successful in boosting numbers that the trust is having to look beyond national boundaries to secure new translocation areas in Malawi, Zambia and Mozambique.</p><p>Cheetah translocations have been going on in South Africa since the mid-1960s, when the first unsuccessful attempts were made to move scores of these animals from Namibia. These relocations were mostly unsuccessful.</p>
Charli de Vos uses a VHF antenna to locate cheetahs in Phinda Game Reserve. Tony Carnie for Mongabay
Swinging for the Fences<p>But other wildlife conservation leaders have a different perspective on cheetah conservation strategy.</p><p>Gus Mills, a senior carnivore researcher retired in 2006 from SANParks, the agency that manages South Africa's national parks, after a career of more than 30 years in Kalahari and Kruger national parks. He says the focus should be on quality of living spaces rather than the quantity of cheetahs.</p><p>Mills, who was the founder of the Endangered Wildlife Trust's Carnivore Conservation Group in 1995, and who also spent six years after retirement studying cheetahs in the Kalahari, says it's more important to properly protect and, where possible, expand the size of existing protected areas.</p><p>He also advocates a triage approach to cheetah conservation, in which scarce funds and resources are focused on protecting cheetahs in formally protected areas, rather than diluting scarce resources in an attempt to try and save every single remaining cheetah population.</p><p>"People have an obsession with numbers. But I believe that it is more important to protect large landscape and habitats properly," Mills said.</p><p>He suggests that cheetahs enclosed within small reserves live in artificial conditions: "It's almost like glorified farming."</p><p>"In the long run we have to focus on consolidating formally protected areas," he added. "Africa's human population will double by 2050, so cheetah populations in unfenced areas will become unsustainable if they are eating people's livestock."</p>
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