SABAH’s move for a full compliance of the Certified Sustainable Palm Oil (CSPO) by 2025 is to ensure the survival of the sector, state forestry director Sam Mannan said.

The move will also make Sabah the first in the world to adopt CSPO, with the state cabinet approving the resolution on October 25, 2015.

Part of the decision was also based on the state’s experience on the collapse of Sabah timber industry in the 1990s, where the state paid a big price for not having the Forest Stewardship Council certification for six months.

European nations refused to buy timber from Malaysia causing Sabah to lose millions of ringgit.

Sam said the decision to adopt CSPO over the Malaysia Sustainable Palm Oil  (MSPO) certification scheme was done as land matters is a state matter as enshrined in the special rights of Sabah under the Malaysia Agreement 1963.

“Forestry in Sabah and Sarawak is 100% under its respective governments. So (for the certification) we choose what we think is best for the state,” he said

Sabah’s decision came ahead of the European Parliament non-binding resolution last April to phase out vegetable oils in biodiesel by 2020 over concerns on deforestation.

This includes palm oil, an important commodity in Sabah, which produces 30% of Malaysia’s supply, with 12.8% of the produce coming from its smallholders. 

The European parliament’s motion called for a single CSPO scheme for Europe-bound palm and other vegetable oil exports

However, the European Parliament resolution have caused a backlash in Indonesia and Malaysia, which accounts t for 90% of the global supply of palm oil.

On Monday, news outlets reported vice-president of the Asia-Pacific Parliamentarians’ Conference on Environment and Development (Appced), Marcus Mojigoh as saying the resolution is expected to be ratified by the European parliament this month.

This makes it possible for European nations to legislate laws to block palm oil from Malaysia.

Mojigoh who is also the Putatan MP said the country could lose RM10 billion in palm oil exports if the resolution is ratified.

The lawmaker made no mention of the CSPO initiative in Sabah, putting in the spotlight whether the European Parliament has rejected other forms of certification, such as the federal government’s push for a full compliance of the MSPO certification by 2019.

But a statement by the European Union Delegation of the European Union to Malaysia has denied the resolution would be ratified.

Mojigoh was part of a bipartisan Malaysian parliamentary committee to speak to the European Parliament in Brussels from October 13-21. – November 3, 2017.