AreaIndonesia

Commodity GroupBiofuels

CommodityBiodiesel

Date01/12/2019

Policy CategoryRenewable energy

Policy InstrumentTrade differences (vs. European Union)

DescriptionFormally requested WTO dispute consultations with the European Union regarding measures adopted by the EU and certain member states in the renewable energy sector relating to biofuels – notably the classification of palm oil as a ‘high indirect land use change (ILUC)-risk’ biofuel feedstock.

NotesINDONESIA / EUROPEAN UNION – trade dispute (EU renewable energy policies): On 16 December, Indonesia formally requested WTO dispute consultations with the European Union regarding measures adopted by the EU and certain member states in the renewable energy sector relating to biofuels (see above items on the EU and France) – notably the classification of palm oil as a ‘high indirect land use change (ILUC)-risk’ biofuel feedstock (see MPPU Mar./May/July’19). Indonesia deems the measures adopted by the EU and France to be discriminatory to its palm oil sector and hence inconsistent with existing WTO rules. Government officials claimed that, besides directly hurting Indonesia’s palm oil exports, the EU’s policies could tarnish the image of palm oil products globally, eventually harming all palm oil producing countries.