PALMOILMAGAZINE, JAKARTA Deforestation remains a pressing global environmental challenge, with millions of hectares of forests being cleared annually due to illegal logging, agricultural activities, and development. The consequences extend across climate, natural conservation, and indigenous communities. Recognizing the urgency to tackle this issue, the European Union (EU) has taken a proactive step by introducing the European Union Deforestation Regulation (EUDR).
The EUDR mandates that every consumer and producer within specific commodity supply chains undergo due diligence and risk assessment to ensure their products are not linked to deforestation. One of the sectors significantly affected by this regulation is the palm oil industry in Indonesia, the world’s largest producer. The EUDR enforces inspections and penalties in phases based on identified risks, with Indonesia being classified as a high-risk country.
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Jon Trask, the founder and CEO of Dimitra Inc. on Nasdaq, pointed out that only 1% of smallholders in Indonesia meet the regulation’s criteria. If the EUDR is officially enforced, many smallholders in Indonesia could lose access to the European market. Smallholders in the global south, including Indonesia, express concerns that the EUDR may inadvertently disrupt the delicate balance between natural conservation and their livelihoods.
But the regulation would potentially create unwanted consequences, such as deforestation and product relocation to countries that have loose regulations, such as India and China. This would raise concern about the effectiveness of EUDR in realizing the deforestation mitigation goal around the globe.
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- CPOPC Urges Government Action Against Palm Oil Free Label Violations in Indonesia
- Minister Amran Encourages Unity of Palm Associations at ASPEKPIR Inaugural Event
- Minister of Agriculture Amran Sulaiman Supports Palm Oil Development to Downstreaming
In such tension as this, the solution in AgTech and blockchain-based solutions offers new hope. Blockchain could be applied to trace the origins of palm oil materials and confirm that the product(s) do not derive from deforestation. While AgTech would escalate agricultural productivity and minimize environmental impacts.
Such technology implementation in every palm oil plantation scale would start with smallholders until big companies. The technology would have the potential to solve environmental challenges and contribute to a sustainable future. Through collaboration among governments, industries, and technology innovators, there would be holistic solutions that support every effort around the globe to face the deforestation crisis and realize sustainability. (*)
For further information, please contact InfoSAWIT or DIMITRA
