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EU Parliament’s Resolution to Ban Palm by 2020 ? R. Vasuthewan & Team ISCC System GmbH

ISCC Regional Stakeholder Dialogue 7th ISCC Technical Committee Meeting Southeast Asia October 25, 2017, Jakarta, Indonesia

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Outline

An overview of The European Parliament Resolution of April 2017 to ban Biofuels based on palm & other vegoils that drive deforestation-\

The outlook & implications for Palm/Palm based Biofuel arising from this.

Will there be specific Sustainability Requirements for Palm in future ?

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Thegeneralpercerp,onoftheMEPResolu,on...AnexampleofwhatthePress(Guardian)says

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However

TheOfficialEuropeanParliamentresolu,onof4thApril2017“PalmoilandDeforesta,onofrainforests“(2016/2222(INI)passed640to18with28absten,onsismorenuancedwithits-27Observa,ons-25Considera,ons-54Recommenda,ons

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Highlights from these Observations

ThattheEUiscommiVedthroughvariousinterna,onaldeclara,onsanditsownAgendatohaltdeforesta,onandtorestoredegradedland

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Observations

whereasnearlyhalf(49%)ofallrecenttropicaldeforesta,onistheresultofillegalclearingforcommercialagricultureandthis……..produces1,47gigatonnesofcarboneachyear–theequivalentof25%oftheEU’sannualfossilfuel-basedemissions&contributedtowildfiresinIndonesia/Borneo,

whereasnearlyhalf(49%)ofallrecenttropicaldeforesta,onistheresultofillegalclearingforcommercialagricultureandthis……..produces1,47gigatonnesofcarboneachyear–theequivalentof25%oftheEU’sannualfossilfuel-basedemissions&contributedtowildfiresinIndonesia/Borneo,

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HighlightsfromtheseObserva,ons….

60%ofEUpalmoilimportsin2014,with46%ofimportedpalmoilusedasfuelfortransport(asix-foldincreaseon2010)and15%forpowerandheatgenera,on;-es,matedthatby2020theamountoflandthatwillbeconvertedgloballytoproducepalmoilforbiodieselwillbe1Mha(millionhectares),ofwhich0,57Mhawillbeconvertedfromvirginforestdeforesta,onofrainforestsisdestroyingthenaturalhabitatsofmorethanhalfoftheworld’sanimalspeciesandmorethantwothirdsofitsplantspeciesandendangeringtheirsurvival;mul,pleinves,ga,onsrevealwidespreadabusesofbasichumanrightsduringtheestablishmentandopera,onofpalmoilplanta,onsinmanycountries,includingforcedevic,ons,armedviolence,childlabour,debtbondageordiscrimina,onagainstindigenouscommuni,es

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HighlightsfromTheGeneralConsidera,ons(3,4,5&6verba,m)

3.Notesthecomplexityofthedrivingfactorsofglobaldeforesta,on,suchasclearinglandforcaVleorarablecrops,inpar,culartoproducesoyafeedforEUlivestock,aswellaspalmoil,urbansprawl,loggingandotherintensiveagriculturalac,vity

4.Notesthat73%ofglobaldeforesta,onarisesfromtheclearingoflandforagriculturalcommodi,es,with40%ofglobaldeforesta,oncausedbyconversiontolarge-scalemonoculturaloilpalmplanta,ons

5.Notesthatpalmoilexploita,onisnotthesolecauseofdeforesta,on,withtheexpansionofillegalloggingac,vi,esanddemographicpressuresalsoresponsible

6.Observesthatotherplant-basedoilsproducedfromsoybeans,rapeseedandothercropshaveamuchhigherenvironmentalfootprintandrequiremuchmoreextensivelandusethanpalmoil;notesthatotheroilcropstypicallyentailamoreintensiveuseofpes,cidesandfer,liser;

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Thecul,va,onofpalmoilcandeliverposi,vecontribu,onstotheeconomicdevelopmentofcountriesandofferviableeconomicopportuni,esforfarmers,providedthatitiscarriedoutresponsiblyandsustainably…’

thattheexistenceofdifferentschemesRSPO,ISPOandMSPOisconfusingforconsumersandthattheul,mateobjec,veshouldbethedevelopmentofasinglecer,fica,onscheme,whichwouldimprovethevisibilityofsustainablepalmoilforconsumers

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Themainrecommenda,onisacallontheCommissiontohonourtheEU’sinterna,onalcommitments:-COP21-theUNForumonForests(UNFF)1,-theUNConven,ononBiologicalBiodiversity(UNCBD)2,-theNewYorkDeclara,ononForests-theSustainableDevelopmentGoaltohaltdeforesta,onby2020

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SomeoftheotherRecommenda,ons….

allMemberStates……todemonstratetheircommitmenttoworkingtowardstheestablishmentofanEU-widena,onalcommitmentofsourcing100%cer,fiedsustainablepalmoilby2020….and….companiesthatcul,vatepalmoiltoadheretotheBangkokAgreementonaUnifiedApproachtoImplemen,ngNoDeforesta,onCommitments

launchinforma,oncampaignsandtoprovideconsumerswithcomprehensiveinforma,onontheposi,veenvironmental,socialandpoli,calconsequencesofsustainablepalmoilproduc,on

Acknowledgestheposi,vecontribu,onmadebyexis,ngcer,fica,onschemes,butobserveswithregretthatRSPO,ISPO,MSPO,andallotherrecognisedmajorcer,fica,onschemesdonoteffec,velyprohibittheirmembersfromconver,ngrainforestsorpeatlandsintopalmplanta,ons

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Some of the other Recommendations….

CallsfortheEUtointroduceminimumsustainabilitycriteriaforpalmoilandproductscontainingpalmoilthatentertheEUmarket,(noecosystemdegrada<on,nochangesinlandmanagementprac<ceswithnega<veenvironmentalimpacts,notgivingrisetoeconomic,socialandenvironmentalproblemsandconflicts,includingthepar<cularproblemsofchildlabour,forcedlabour,landgrabbingortheevic<onofindigenousorlocalcommuni<es)

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…Some of the other Recommendations

increasethetraceabilityofpalmoilimportedintotheEUand,un,lthesinglecer,fica,onschemeisapplied,

toconsiderapplyingdifferentcustomsdutyschemesthatmoreaccuratelyreflecttherealcostsassociatedwiththeenvironmentalburden;

askstheCommissiontoalsoconsidertheintroduc,onandapplica,onofnon-discriminatorytariffandnon-tariffbarriersbasedonthecarbonfootprintofpalmoil;callsforthe‘polluterpays’principletobefullyappliedinrela,ontodeforesta,on

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SomeoftheotherRecommenda,ons

Noteswithconcernthat46%oftotalpalmoilimportedbytheEUisusedfortheproduc,onofbiofuelsandthatthisrequirestheuseofaboutonemillionhectaresoftropicalsoils;callsontheCommissiontotakemeasurestophaseouttheuseofvegetableoilsthatdrivedeforesta,on,includingpalmoil,asacomponentofbiofuels,preferablyby2020;

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Workcloselywithothersignificantconsumersofpalmoil,suchasChina,Indiaandtheproducingcountries,soastoraisetheirawarenessandtoexplorecommonsolu,onstotheproblemoftropicaldeforesta,onandforestdegrada,on;

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Finally….

Notesthatsimplybanningorphasingouttheuseofpalmoilmaygiverisetoreplacementtropicalvegetableoilsbeingusedforbiofuelproduc,on,whichwould,inallprobability,begrowninthesameecologicallysensi,veregionsaspalmoilandwhichmayhaveamuchhigherimpactonbiodiversity,landuseandgreenhousegasemissionsthanpalmoilitself;

….recommendsfindingandpromo,ngmoresustainablealterna,vesforbiofueluse,suchasEuropeanoilsproducedfromdomes,callycul,vatedrapeandsunflowerseeds

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WhatcouldbefuturescenariosforPalm/PalmBiofuel? UnlikelythattherewillbeanimmediatebanonPalm/PalmBiodieselbuttherecouldbesignificantfrom2020underREDII.

Foodcropbasedbiofuelsmaybereducedorphasedout(Biodieselmarketinanycasemayshrinkduetostringentemissionrequirements/acceleratedgrowthofElectriccars)

Cer,fica,onmaybecomemandatoryfornonbiofuelsaswell(ISCCPlusisalreadybeingusedbyCompaniesforthis).UnclearhowMSPO/ISPOwillbetreated.

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What does RED II say about this?

“MemberStatesmay…dis0nguishbetweendifferenttypesofbiofuels,bioliquids,andbiomassfuelsproducedfromfoodandfeedcrops,forinstancebyse>ngalowerlimitforthecontribu0onfromfoodorfeedcropbasedbiofuelsproducedfromoilcrops,takingintoaccountindirectlandusechange”.

-meansthateachindividualEUGovernmentwouldhavetheabilitytopickandchooselimitsfordifferenttypesofbiofuels.

-Mostlikelyvic,mswillbePalm&SoyBiodiesel

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ButthePalmIndustryhastoproac,velyaddresstheareasofconcern.NobusinessasusualMorestringencyonneedtoensureNoDeforesta,on.Exis,ngmethodsforcheckingthiswillneedtobestrengthened.(ISCChasalreadydevelopedasatellitebasedRiskanalysistoolforthis“GRAS”)

MorestringentauditonLabourPrac,ces,LandTitle/rights(GRASisbeingenhancedwiththiscapabilityinthisareaaswell)

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R. Vasuthewan ISCC e.V Vasu.Board@iscc-system.org

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Many thanks for your attention!