ROTTERDAM: The Malaysian Palm Oil Board (MPOB) is actively developing technology solutions to help smallholders meet the additional requirements of the European Union Deforestation Regulation (EUDR).

MPOB director-general Datuk Ahmad Parveez Ghulam Kadir said that the EUDR, which came into effect in June 2023, introduced new requirements for geolocation and traceability.

"Regarding deforestation, smallholders need to meet deforestation-related standards. However, one of the biggest challenges lies in geolocation, mapping, and polygonal data, as well as traceability," he told Malaysian reporters at the 3rd Sustainable Vegetable Oils Conference (SVOC), organised by the Council of Palm Oil Producing Countries (CPOPC).

Ahmad Parveez added that MPOB is conducting canopy mapping to document oil palm cultivation areas accurately.

"We are preparing for the changes by using satellite imagery to identify all oil palm plantations. We can differentiate oil palm from other crops, such as coconut, based on the planting techniques. By analysing spacing, we can also estimate the age of the trees," he said.

EUDR: Challenges for smallholders

Despite being a crucial step in preventing deforestation, the stringent requirements of the EUDR pose a challenge for smallholders, potentially threatening their income and position in the supply chain due to their limited resources for compliance.

"We want to improve the livelihoods of smallholders and help them become better farmers. To achieve this, we need to invest in our supply chains so that smallholders can eventually meet the necessary requirements to enter the European Union's (EU) supply chain," said Muslim Mas Group director of sustainability Olivier Tichit during the panel discussion on effective EUDR implementation and smallholder inclusivity at the SVOC on Tuesday.

The Muslim Mas Group operates Indonesia's largest independent smallholder programme, providing farmers with the knowledge and resources to enhance productivity and sustainability.

Tichit emphasised that while the process involves significant effort, the segregation of supply chains creates an unnecessary burden.

"It's a lot of work and, frankly, inefficient. We should be focusing on more critical issues rather than creating a gold-standard supply chain just for the EU," he added.

Meanwhile, Indonesia Ambassador to Germany Arif Havas explained that for smallholders to meet all the EUDR requirements, including knowledge of EU discussions, significant resources, especially financial ones, are required, which is simply unattainable for many.

He pointed out that the EUDR is a legal framework addressing only two primary factors, legality and being deforestation-free, without providing legal obligations for operators to support smallholders.

"Claims that smallholders can meet these complex and burdensome EUDR requirements should be viewed with caution," the ambassador said.

Update in EUDR implementation

Henriette Faergemann, the first counsellor for Environment, Climate Action, and Digital Cooperation for the EU delegation to Indonesia, said as the EUDR moves closer to its implementation phase, which will take effect by the end of this year, the EU Commission is focusing heavily on execution.

"We are working on various aspects related to implementation," she said, underscoring the ongoing efforts.

Next week, the EU will publish a new version of its guidelines, including 30 additional frequently asked questions. These questions have been compiled based on interactions with various producer countries.

Faergemann also mentioned that a comprehensive guidance document covering key aspects of the regulation's operation is being prepared for release soon.

The EU will conduct in-person training sessions starting this month, with the system opening for user registration in early November. This allows producers ample time to be fully prepared before the regulation's official application at the end of the year.

Faergemann said that beginning in December, producers will be able to submit due diligence statements, and the system is being fine-tuned for interconnection with other platforms via application programming interfaces (APIs).

"Benchmarking will help competent authorities focus their enforcement efforts and ensure resources are used where most needed," she said, referring to the tool's value in enhancing regulatory efficiency.

Meanwhile, Faergemann said that since Dec 31, 2020, all products entering the European market must be certified as deforestation-free as of the cut-off date and comply with the laws of their country of production.

She explained that any product can be accepted into the European market, provided it is legal, deforestation-free, and traceable.

"This cut-off date was carefully chosen because it aligns with Sustainable Development Goal 15.2, which has been globally agreed upon to halt deforestation by that date," Faergemann noted.

Faergemann clarified that the European Union does not mandate specific geolocation tools or traceability systems for compliance, and producers have the freedom to choose whatever tools they are comfortable with as long as they meet the necessary due diligence requirements.

Faergemann highlighted the need for aggregate traceability for mixed or composite products to ensure that every component contributing to a consignment can be tracked.

"It's crucial that compliant products are not mixed with those of questionable origin," she stressed.

In conclusion, Faergemann underscored the importance of international cooperation, particularly with producer countries like Indonesia and Malaysia.

"We've engaged in extensive outreach and technical cooperation with these nations, and we're extremely grateful for the progress made," she concluded, pointing to the long-standing multi-stakeholder platform for deforestation as a key part of these efforts.

- BERNAMA

https://www.nst.com.my/business/economy/2024/09/1104477/mpob-developing-tech-solutions-help-smallholders-meet-eudr