New EU biofuel directive requires traceability report

The European Unions new directive on renewable energy will require Malaysian palm oil producers to provide a comprehensive report of their biofuel or biofuel feedstock, as well as product sustainability. Ilmari Lastikka, stakeholder relations manager in Neste Oil Corporations renewable fuels division, said companies in Europe cannot use palm oil as biodiesel unless they showed traceability of the palm oil that had been used. Palm oil exporters, for example, could sell into the European market by having the Roundtable on Sustainable Palm Oil (RSPO) certificate, which confirms that a company had adhered to sustainable practices in the planting of oil palm and production of palm oil. He said part of the proposed EU sustainability criteria for the new directive would not permit the use of raw material from high biodiversity areas, such as rainforest. (August 26, 2008)