KONTAN.CO.ID - KUALA LUMPUR. Malaysia is committed to progressively raising its biodiesel mandate, its commodities minister said at a meeting with global palm oil producers on Wednesday.

The world largest palm oil producers Indonesia and Malaysia use the edible oil as blending for biodiesel, with Indonesia in February raising its mandate to a 35% palm oil mix and Malaysia maintaining its mandate at a 20% mix.

"Malaysia continues its commitment to the implementation of the biodiesel program, progressively incorporating increased biodiesel blending ratios," Fadillah Yusof, who is also deputy prime minister, said at a ministerial meeting of the Council of Palm Oil Producing Countries (CPOPC).

He said the expansion will be done in phases based on the readiness of biodiesel blending facilities across Malaysia.

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Indonesia and Malaysia, the founding members of CPOPC, will send envoys to the European Union at the end of May to discuss the impact of the bloc's new deforestation law on their palm oil sectors.

The EU in April approved a deforestation law to block imports of coffee, beef, soy and other commodities if they are linked to recent destruction of the world's forests.

Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto said consumer countries are tightening entry requirements for palm oil.

"While trying to improve the environmental practices, we seek cooperation of all the stakeholders to pay premium for product that adopts sustainability practice," Airlangga said.

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Boycotting palm oil will not provide a long-term solution for the environment, he added.

The CPOPC also welcomed Honduras as its third full member into the organization.

Honduras is the third-largest producer and exporter in Latin America, and eighth-largest globally, said Honduran agriculture minister Laura Suazo.

Editor: Wahyu T.Rahmawati