European Commission urged to recognise Malaysian Sustainable Palm Oil certification to enhance compliance with EU Deforestation Regulation

The European Commission (EC) has been urged to recognise the Malaysian Sustainable Palm Oil (MSPO) certification in order to promote greater acceptance of the European Union Deforestation Regulation (EUDR).

Malaysian Palm Oil Council (MPOC) chief executive officer Belvinder Kaur Sron said the MSPO certification effectively prohibited deforestation for palm oil production post-2019, and studies also show a high degree of convergence between the certification and EUDR standards.

“Recognising convergent national certification schemes (such as MSPO) as EUDR-compliant would streamline compliance obligations for producers, remove unnecessary duplication, and reduce due diligence obligations for buyers to the minimum,” she told Bernama.

Belvinder also urged the EC to accept Malaysia’s sustainability achievements, and classify the country as low-risk, under the EUDR’s country benchmarking system.

“Several international organisations, including the United Nations Food and Agriculture Organization and the World Resources Institute, have indicated a significant decline in Malaysia’s forest loss, which is consistent with ‘low risk’ status.

“In this regard, Malaysian palm oil is no longer a driver of deforestation, and ‘low-risk’ status is a needed tool to simplify EUDR compliance, while alleviating the burden on EU buyers and Malaysian producers,” she said in response to the EC’s announcement to simplify EUDR implementation via an updated guideline and frequently asked questions (FAQs) on April 15.

The MPOC acknowledges the simplifications made, but this will only be meaningful if these simplifications trickle down to producers in Malaysia and reduce unnecessary, duplicative compliance burdens.

“The reality is, the EUDR imposes a significant administrative burden on palm oil producers, particularly smallholders in Malaysia.

“Therefore, simplification efforts for all stakeholders, including the producing countries, are most important, instead of targeted simplification for certain stakeholders in the supply chain,” said Belvinder.

On another note, Malaysian Palm Oil Board (MPOB) director general Datuk Dr Ahmad Parveez Ghulam Kadir said the updated guideline provides greater clarity to implement the EUDR, which benefits mainly EU companies and Malaysian exporters by reducing ambiguity and aligning practices with regulatory requirements.

“We appreciate the move to allow companies to submit due diligence statements annually instead of for every shipment or batch placed on the EU market. However, it is important to emphasise that the core obligations and requirements outlined in the main text of the EUDR remain unchanged.

“Malaysian exporters to the EU will still need to comply with the EUDR,” he said, adding that the estimated 30% fall in administrative costs will primarily benefit EU companies.

Ahmad Parveez said these clarifications may assist in understanding the implementation process, but they do not significantly reduce the compliance burden, especially among small- and medium-sized companies.

“Malaysian exporters are still required to meet stringent compliance requirements, including detailed geolocation data and proof of deforestation-free sourcing.

“Therefore, the industry continues to advocate greater recognition of national sustainability certifications, such as the MSPO certification, and for transparent benchmarking criteria to ensure fair treatment under the EUDR,” he added.

Originally set to apply in December 2024, the EUDR is now scheduled to enter into force at the end of 2025 for member states, operators and traders. Hence, the EC published new guidance documents to facilitate this.

“The updated guidance and FAQs will provide companies, EU member states’ authorities and partner countries with additional simplified measures and clarifications on how to demonstrate that their products are deforestation-free.

“Both documents reflect the input from member states, partner countries, businesses, and industry. This will also guarantee harmonised implementation of the law across the EU,” said the EC.