Indonesia burns the image of biodiesel

German producers are critical of the cessation of the moratorium on palm oil production in peat areas

Berlin, 18 February 2009 – Notwithstanding the global public outcry concerning the use of raw materials from certain origins for the production of bio-fuel, AP reports that the Indonesian government has revoked the moratorium prohibiting the production of palm oil in peat areas, which had been in force for many years. The drainage of these areas as a precondition for palm oil the establishment of plantations in these areas and the related depletion of humus in these soils will directly cause the release of more CO2 into the atmosphere. The Indonesian government is aware of this situation.

The Union zur Förderung von Oel und Proteinpflanzen e. V. (UFOP) recalls that the question of utilizing protected areas and in this case, in particular, peat area,had been the subject of intensive debate between the European Council and Parliament at the time when the conditions for subsidies under the new Renewable Energies directive were defined. The consequences of this change of land use are reflected in the standard values in the annex to the directive concerning CO2 emission in the production of biodiesel from palm oil.

UFOP therefore demands that internationally agreed and accepted certification systems be established as quickly as possible to ensure, at least, by identifying the origin of raw materials, the production of biomass for conversion to bio fuel does not add to the release of greenhouse gases in excess of what is normal. The decision of the Indonesian government confirms that the displacement effects can obviously not be controlled by certification systems. Therefore, talks between the EU and producing countries such as Indonesia on the use of land for the production of raw materials should start now.

At first, UFOP feels that the mineral oil industry as main buyer is duty bound. It should ensure that only raw materials produced by sustainable methods are used as bio fuels admixture to either biodiesel or for the production of hydrogenated vegetable oils. UFOP is convinced that it cannot be tolerated that raw materials are produced by sustainable methods meeting high standards of ecology and society in the European Union whereas exporting countries such as Indonesia are systematically undermining these efforts already now. UFOP calls upon the mineral oil industry to give preference to indigenous and European raw materials because this ensures that bio fuels from sustainable raw material production are used.