JakartaGlobe-Jan 4

World’s largest palm oil producer Indonesia is confident about winning its biofuel lawsuit against the European Union (EU) while saying that the ongoing dispute will not affect the negotiations on the long-awaited trade pact with the 27-membered bloc. In 2019, Indonesia filed a World Trade Organization (WTO) lawsuit against the EU, claiming that the bloc’s Renewable Energy Directive II was discriminatory. The RED II sees the EU phasing out palm oil-based biofuel by 2030, claiming that such products might be at high risk of indirect land use changes (ILUC). The EU alleges that biofuel production might take place on cropland previously destined for food. This can lead to farmers extending the production of agricultural land into areas with high carbon stock such as forests, potentially negating the emission savings from biofuel use. The biofuel may be exempt from the limitations if the palm oil is classified as low-risk of ILUC.  Read more athttps://jakartaglobe.id/business/indonesia-confident-about-winning-eu-lawsuit-on-palm-oil-biofuel