EU pledges incentives for Indonesian CPO producers

The European Union (EU) has pledged to offer incentives to Indonesia’s palm oil companies that use eco-friendly ways to produce palm oil, which would slash emissions and help deal with climate change. The EU office invited the Indonesian government, palm oil producers and environmental activists to discuss the newly launched EU Renewable Energy Directive (RED), which has a mandatory target of using 10% renewable energy, such as biofuel, in each member state. Incentives, such as investment aid, tax exemption or refunds, would be an additional benefit to palm oil companies, who could slash emissions by a minimum of 35%, calculated from the total emissions, from cultivation, land use, processing and palm oil distribution, to carbon capture. EU Natural Resources and Environment Program Manager Thibaut Portevin said the palm oil from land containing high biodiversity value would not be eligible for the incentives. (July 25, 2009)