AreaMalaysia
Commodity GroupBiofuels
CommodityPalm oil-based biodiesel
Date01/06/2021
Policy CategoryRenewable energy
Policy InstrumentBioenergy policies
DescriptionAnnounced that the nationwide introduction of B20 biodiesel (i.e. regular transport diesel blended with 20 percent of palm oil-based diesel) would only be completed towards end-2022. Delays in the programmes rollout were attributed to i) the outbreak of COVID-19 and related movement restrictions; ii) the prioritization of measures to help industries recover from the pandemic; and iii) the firmness of palm oil prices, which affected the oils competitiveness as biodiesel feedstock.
NotesMALAYSIA biofuel policy: The Government expects nationwide implementation of its B20 biodiesel programme (which requires the blending of regular transport diesel with 20 percent of palm oil-based diesel as opposed to the established 10 percent rate) to be completed by end-2022. While the B20 rollout began in March 2020 in some parts of the country, the programmes country-wide application was affected by i) the outbreak of COVID-19 and related movement restrictions, ii) the prioritization of measures to help industries recover from the pandemic, and iii) the firmness of palm oil prices, which reduced the competitiveness of palm oil as biodiesel feedstock. (See also MPPU Mar./Nov.20 & Apr.21)
