SINGAPORE (Feb 5): Palm oil players and analysts have warned that the European Parliament’s draft measures two weeks ago to ban palm oil in biodiesel after 2020 could lead to the “cobra effect”.

In a presentation at a seminar of the Malaysian Palm Oil Board earlier this month, renowned palm oil analyst James Fry of LMC International pointed out that it would not be easy for the European Union (EU) to cut out palm methyl ester (PME) or palm biodiesel.

This is because if European vehicles do not burn PME, they would have to replace it with local rapeseed oil. Note that while palm oil will be phased out from biodiesel, other crop oils will still be allowed.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook