Palm Oil Powerhouses: Why the EU’s Deforestation-Free Regulation Does Not Work in Southeast Asia | New Perspectives on Asia | CSIS

The European Union (EU)’s palm oil ban is well underway, and Indonesia and Malaysia are taking action to protect their global palm oil exports, filing complaints to the World Trade Organization (WTO). Though pivoting toward a sustainable future, Indonesia and Malaysia cannot phase out palm oil production until they further develop their economic advancement and climate plans. As Malaysia and Indonesia consider alternative trade options to protect their palm oil exports, the EU should restructure dialogues with both nations to generate solutions that encourage sustainable palm oil production, mitigating future tensions with the region while maintaining its strength as a global climate leader. In June 2023, the EU enforced the EU Deforestation-Free Regulation (EUDR), a ban on products linked to deforestation. The EU mandates that anyone importing or exporting commodities linked to forest degradation into or out of the EU market must prove that the products do not originate from recently

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• Benjamin Ma