The Malaysian Palm Oil Council (MPOC) has welcomed the European Union’s decision to delay the enforcement of its deforestation regulation by one year, pushing the implementation date from December 2025 to December 2026. While the delay provides a grace period, the MPOC expressed concern that continued uncertainty over the regulation’s implementation creates an unsustainable burden for responsible businesses.
The EU Deforestation Regulation (EUDR) is designed to ensure that products like palm oil, cocoa, and soy are not linked to deforestation. Malaysian palm oil companies have already made significant investments to prepare for compliance but remain in limbo. The MPOC’s chief executive called on European policymakers to create a more equitable and scientifically sound framework.
Despite Malaysia strengthening its sustainability standards through the Malaysian Sustainable Palm Oil (MSPO) certification scheme, which prohibits new planting in natural forests, the country remains classified as a “standard risk” under the EUDR. The MPOC argues that this classification does not reflect Malaysia’s progress on deforestation, citing data showing a 57% decline in primary forest loss between 2015-17 and 2020-22. The council is urging the EU to use the extended timeline to reform its classification system to better reward sustainable practices and reflect real-world environmental outcomes.