PALM oil should not be discriminated against in the trade system as the European Union moves to renew its energy directives, said Swedish Entrepreneur and Innovation Minister Mikael Damberg.

He said Sweden recognised palm oil as an important industry in Malaysia, and was aware of the initiatives taken to propel it in the global system.

“Sweden really appreciates the Malaysian government’s efforts to ensure sustainability in the palm oil industry,” he told reporters on the sidelines of the 2nd Sweden-Southeast Asia Business Summit in Kuala Lumpur today.

Present was International Trade and Industry Minister Mustapa Mohamed.

On January 17, the European Parliament had voted to phase out palm biofuels from the EU energy mix after 2020.

Reports said the final decision would be made in a tripartite meeting with the EU Council and European Commission.

Mustapa said consumer sentiment could be bogged down by the move taken by EU members of parliament to restrict the use of palm oil.

“Now, it’s still at the discussion stage. If this were to happen, it would undoubtedly affect our exports as the EU is a big market.”

China, the EU and India are the three major markets for Malaysian palm oil.

Last year, two million tonnes, or 15%, of Malaysia’s palm oil exports, worth RM10.3 billion, were shipped to the EU. – Bernama, February 6, 2018.