Malaysia to file WTO complaint against EU biofuel policy by November

Malaysia is planning to submit a complaint to the World Trade Organization (WTO) by November to challenge the European Union (EU)'s restrictions on palm biofuel, according to Primary Industries Minister Teresa Kok.

She said documents related to the complaint were currently with the Attorney-General's Chambers (AGC), Bernama news agency reported on 15 July.

"We have already had a discussion with the AGC. They are assisting and helping us identify some experts who can argue the case [we want to file] with the WTO. A lot of things are in place now," she told a press conference after the opening of 9th International Planters Conference.

The EU published its recast of its Renewable Energy Directive (RED II) in December, and plans to start phasing out first generation biofuels from this year until 2030.

A delegated act published on 21 May to supplement RED II classifies palm oil from large plantations as a high indirect land use change (ILUC)-risk feedstock that should be capped at its 2019 level of consumption.

The delegated act has drawn fire from Malaysia and Indonesia, the world’s two largest palm oil producers.