Oil Palm Industry Economic Journal Vol. 8 (2) September 2008 p. 1-7

EU’s Renewable Energy Directive : Possible Implications on Malaysian Palm Oil Trade

Mohd Basri Wahid, Faizah Mohd Shariff, N Balu and Nazlin Ismail
Received:    Accepted:    Available Online:


Concerns about high oil prices, energy security and increasing import costs have encouraged the development of biofuel programmes worldwide. Brazil, the European Union (EU) and USA are among the countries that have launched significant biofuel programmes as a means of reducing their dependence on imported oil. In Asia, since 2006, biofuel policies have been considered as they have impact on energy security, employment and income. However, with countries pursuing various programmes on biofuel, questions of sustainability of feedstocks, deforestation and competition with food uses have led to stricter rules and regulations being drafted in the importing countries, these also affecting the vegetable oils trade. This article attempts to assess the new EU’s Renewable Energy Directive and their possible implications on the vegetable oils trade, especially that of palm oil.

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