The Ministry of Plantation and Commodities (KPK) is drafting the National Biomass Action Plan 2022-2030 in line with the National Energy Transition Roadmap.

Deputy Prime Minister, who is also the Minister of Plantation and Commodities, Datuk Seri Fadillah Yusof said biomass played an important role in ensuring that energy resources would be obtained from biomass sources.

“Therefore, we will set up one-stop centres to collect oil palm biomass and the raw material will be processed into bio-fertilisers, animal feed, energy generation and other value-added products,” he said when winding the debate on the Mid-Term Review of the 12th Malaysia Plan (12MP) in Dewan Rakyat today.

He said the initiative is one of the country’s new sources of income.

On the issue of palm oil cess burdening the palm oil industry, Fadillah said the ministry is aware of the windfall tax imposition on the palm oil industry.

“However, the ministry is carrying out a study on the taxation of the palm oil industry and hopes that it will be completed next year. This matter was also discussed with the Ministry of Finance,” he said.

Besides that, he said the ministry also took seriously the issue of threats from the European Union (EU) and its implications for the palm oil industry.

He said various actions have been taken to ensure the palm oil industry is not affected, including intensifying efforts to have the EU recognise Malaysian Sustainable Palm Oil (MSPO) certification as a key condition for compliance with the European Union’s EU Deforestation Regulation (EUDR).

“To demonstrate Malaysia’s commitment to produce palm oil according to sustainable principles and criteria under MSPO, KPK through the Malaysian Sustainable Palm Oil Certification Council is improving the certification through MSPO 2.0,” he added.

Source: BERNAMA News Agency