Last week, the EU agreed on a package of legislation to increase the use of renewable energy in Europe, including the gradual elimination of palm oil in transport fuel by 2030.

The decision presents a delicate balance between the EU's environmental protection goals and relations with palm oil exporters Malaysia and Indonesia.

In January, the European Parliament voted to ban the use of palm oil in biofuel by 2020. The decision sparked outcry in Malaysia, one of the world's largest palm oil exporters with €16.7 billion ($19.4 billion) worth of palm oil exported in 2017.

In statement released in January, Malaysia's Plantations Minister Mah Siew Keong said "the EU is practicing a form of crop apartheid."

Read more: French farmers picket Total refineries in palm oil protests

January's statement also said the EU Parliament's plan would "risk expanding bilateral trade and other strategic interests in Southeast Asia," adding that the Malaysian government would take any action necessary to protect the country's palm oil sector, which has "lifted millions of Malaysians out of poverty."

In proposing the phase out, EU lawmakers said that palm oil production is one of the main drivers of deforestation. The environmental lobby and the majority of EU parliamentarians wanted to eliminate palm oil in EU biofuel as quickly as possible.

However, in trying to find a compromise, last week's collective decision by the EU Parliament, Commission and Council allows significantly more time for the phase out.

The percentage of palm oil in EU biofuel is to be kept at 2019 levels and gradually reduced starting in 2023. Under current regulations, palm oil used in the EU must come from certified sustainable plantations.

Watch video 12:06 Share Palm Oil plantations threaten the rainforest Send Facebook google+ Whatsapp Tumblr linkedin stumble Digg reddit Newsvine Permalink https://p.dw.com/p/1HHtW Palm Oil plantations threaten the rainforest

Trade before conservation?

Environmental activists contend that the decision does not do enough to protect the rainforest. The EU Commission and member states were both against a strict timeline for the phase-out.

Bas Eickhout, a European Green Party lawmaker involved in the negotiations, told DW that he had hoped for a quicker departure from palm oil use in the EU.

"Certified or not, the use of palm oil from an environmental protection standpoint is more detrimental than the use of fossil fuels," said Eickhout, adding that the EU plan was a "remarkable breakthrough."

Read more: New palm oil figures: Biodiesel use in EU fueling deforestation

According to Eickhout, the resistance of the member states and the EU Commission to the quick elimination of palm oil was "definitely" a result of free trade negotiations with Malaysia and Indonesia.

Eickhout added that the word "palm oil" did not appear in the text, in order to not harm trade rules. He said the terminology referred to food and feed crops that would no longer be counted as sources of renewable energy, as they displace carbon-rich soil (humus). "These are oil palms," he said.

The diversity of natural resources Glorious and useful While the world still produces a lot of its energy from fossil fuels, nature produces plenty of renewable resources constantly. Although plant lovers enjoy sunflowers for their splendour and chefs use the oil for cooking, industry uses the tall yellow flower to produce lubricants or in biodiesel. The sunflower is a renewable resource that is grown on about 400,000 hectares of farmland in Germany.

The diversity of natural resources One of the oldest resources Forests supply a resource mankind has been using for a very long time: wood. To whittle spears or to kindle a fire - wood was indispensable for our ancestors. It is still a popular building material: About 15 percent of new buildings in Germany are constructed out of wood.

The diversity of natural resources Raw materials produce heat Wood is a renewable resource that also supplies energy. Over the past decade, wood pellets have become increasingly popular to heat stoves - a good example for how renewables as an energy source can reduce mineral oil consumption.

The diversity of natural resources A lubricant for steam engines Rapeseed is a member of the cabbage family. Humans have been using the plant for many centuries. The seed has been a source for oil since the Middle Ages, used for instance in lamps. In the 19th century, rapeseed oil was used as a lubricant for steam engines.

The diversity of natural resources The downside of the biogas boom Using renewable resources as an energy supplier has given rise to quite some criticism. Huge fields of corn and rapeseed are planted to run biogas plants. As a result, the landscape in regions like northeastern Germany has radically changed, and many wild plants and animals have lost their habitat.

The diversity of natural resources The all-rounder Corn, originally from Latin America, is one of the most widely cultivated crops in the world. It is not just planted on vast fields for renewable energy purposes: its main use is animal feed and food for humans. Industry has also discovered corn as an ingredient for glue and adhesives.

The diversity of natural resources Plant-based plastics Plastic made of corn, potatoes or sugar cane: nowadays, many products are made of bioplastics, including garbage bags and joghurt containers, but also products such as disposable razors. Environmental activists support improving and consistently recycling bioplastics to ensure they are really environmentally friendly.

The diversity of natural resources From biscuits to biodiesel Palm fruit is pressed to win palm oil, an edible vegetable oil. It is an ingredient in many different types of food, including margarine, pizza and biscuits. Palm oil is used as a raw material in candles, cosmetics and washing powder. The product is also increasingly used for biodiesel production.

The diversity of natural resources Palm trees replace rainforests Palm oil is the one renewable resource that is most strongly criticized. Oil palms grow well in hot, humid climates, just like rainforests, rich in species and home to rare animals such as orangutans. Over the past years, rainforests have been felled extensively in Malaysia and Indonesia to make way for palm oil plantations.

The diversity of natural resources Weaving, not smoking Many people know hemp only as a recreational drug. But there is a form of hemp for industrial use that has no intoxicating effect. It is grown, for instance, in France, where the fibers are used to make special paper and clothing, like hemp jeans.

The diversity of natural resources Keeping the heat in Insulating material can also be made of hemp fiber. The blocks here can't be used on the outside of a house because they don't tolerate moisture, but the hemp is well-suited to insulate walls, ceilings or the roof of a house from the inside. Hemp fibers also help keep the house cool in the summer. Author: Alexandra Hostert / db



'Guarded optimism'

In palm oil export countries like Malaysia and Indonesia, the extended deadline on a fuel phase-out was met with guarded optimism. The Malaysian Palm Oil Council (MPOC) issued a press release saying the decision not to ban palm oil biofuel in 2021 was "very welcomed" and came at the right time.

Among palm oil famers the EU decision has shifted the tone away from January's "crop apartheid" outrage. Dato Aliasak, the chairman of Malaysia's small farmer's association, said that "Malaysia's small farmers are glad that the EU has withdrawn its plan to ban palm oil. We are waiting for the details of the directive, but we have guarded optimism."

Incidentally, the EU never proposed a general palm oil ban, but in export countries this impression had spread.

The MPOC also said it would "aggressively market" palm oil to other countries to make up for the expected block of the European biofuel market in 2030. This shouldn't present a big problem, considering the growing demand for biofuel in major import countries like India and China.

Read more: EU agrees on biofuels cap

According to the MPOC, Malaysia is the world's second-largest palm oil producer after Indonesia, and the two nations account for nearly 90 percent of global output of 60 million tons.

Vincent Guérend, the EU ambassador to Indonesia was quoted by the Indonesian news agency Antara, saying the EU market for Indonesian palm oil remains wide open.

Agricultural experts have pointed out that the EU's 2030 deadline could be related to the natural cycle of palm oil plantations.

Around 2005, Indonesia began the expansion of palm oil production in response to the massive demand for biofuel in the EU. Oil palms have a commercial lifecycle of around 25 years.

This compromise between trade and environmental interests is a cause for concern among environmental groups. According to a 2015 study carried out on behalf of the European Commission, the production and use of palm oil biodiesel causes three times the carbon emissions of fossil diesel.

Additional reporting by Brenda Haas.