The European Union has pledged to offer incentives to Indonesia’s palm oil producers that promote an eco-friendly management to slash emissions.
EU Ambassador and Head of Delegation to Indonesia and Brunei Darussalam Julian Wilson said Friday the emission cut target requirement would not hurt Indonesian exporters.
“We don’t hurt [palm oil] industries in Indonesia,” Wilson said. “So, all palm oil exporters continue to enjoy exactly the same access at the same tariff rate as before regardless of how they produce and process the palm oil.”
The EU office has invited the Indonesian government, palm oil producers and environmental activists to discuss the newly launched EU Renewable Energy Directive (RED).
Wilson said the pledged incentives, such as investment aid, tax exemption or tax refund, would be additional benefits for palm oil companies that manage to slash their greenhouse gas emissions by 35 percent.
The RED, approved by member states and their parliaments last year, requires a 10 percent mandatory target for the use of renewable energy such as biofuel in the transport sector in each member country.
It says the requirement to cut emissions by 35 percent could be calculated using total emissions from the cultivation, land use, processing and palm oil distribution to the carbon capture.
Program manager for natural resources and the environment at the EU, Thibaut Portevin, said the palm oil harvested from land containing high biodiversity value would not be eligible for the incentives. “And [there will be] no conversion of land with high carbon stocks,” he said.