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Malaysian palm oil farmers face uncertainty with new EU law to curb deforestation

With the European Union’s push towards sustainability and reduction of deforestation rates, new regulations are being put in place to ensure that imported goods are responsibly sourced. However, this proposed legislation could pose a serious threat to the livelihood of palm oil farmers who have been accused of causing deforestation. As the EU considers implementing these new laws, the question remains: can the preservation of rainforests coexist with the success and prosperity of palm oil farmers?


Reta Lajah, a Malaysian palm oil farmer, has undertaken a year-long journey to become certified as green and ethical. Her farm, located in the Sungai Judah village on Carey Island, has implemented measures to protect wildlife and forests, resolve any land disputes, and use sustainable growing methods. Despite this, the European Union’s (EU) decision to enforce new regulations on deforestation may prove to be a major obstacle for Reta and other global suppliers of commodities like palm oil, soy, and cocoa.

The new law, which was agreed upon in December and is set to take effect within two years, will require global suppliers to prove that their supply chains are not contributing to forest destruction. This has caused concern among many producers, as the EU is a major market for high-end products like palm oil, which is used in a wide range of food and cosmetic products. Failure to comply with the new regulations could result in the loss of significant revenue for these suppliers.

While Reta’s certification is a step in the right direction, it does not guarantee her ability to continue selling to Europe’s premium-paying buyers. This is because the certification process focuses on sustainability and ethical practices, but does not necessarily address the issue of deforestation. This is where the new EU law comes into play, as it specifically targets the role that supply chains play in deforestation.

To comply with the new regulations, suppliers will need to demonstrate that the commodities they are providing are not causing deforestation through careful sourcing and tracing of their products. This will likely require significant investment in new technologies and processes, as well as a significant shift in the way suppliers approach their businesses. The hope is that this will help deter deforestation and promote sustainable practices across the industry.

The impact of this new law will be significant, as it will affect not only the palm oil industry, but also other commodities like soy and cocoa. These global industries have been known to contribute to deforestation, which has devastating effects on wildlife, local communities, and the environment at large. By enforcing this new law, the EU is taking a bold step towards addressing this issue and promoting sustainability across the board.

In conclusion, Reta Lajah’s journey towards sustainable and ethical certification is an important step in the right direction, but the new EU regulations on deforestation pose a significant challenge for global suppliers of commodities like palm oil, soy, and cocoa. It is, however, a necessary step towards promoting sustainable practices and deterring deforestation across the industry. The hope is that this will lead to a more sustainable, responsible, and environmentally-conscious future for all.

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