Biodiesel By Region - Malaysia

Malaysia

The biodiesel industry has been identified as one of the 12 National Key Economic Activities (NKEA) under the Tenth Malaysia Plan.

Projects requiring Malaysian and Indonesian palm oil as feedstocks have been criticized by some environmental advocates. Friends of the Earth has published a report asserting that clearance of forests for oil-palm plantations is threatening some of the last habitat of the orangutan. Also, in a column for The Guardian, writer George Monbiot claimed that land clearance by cutting and burning large forest trees frees large amounts of carbon dioxide that is never reabsorbed by the smaller oil palms. If true, then biodiesel production from plantation-grown palm oil may be a net source of atmospheric carbon dioxide. How these issues are resolved may determine whether Malaysia eventually becomes a major producer of biodiesel.

The palm oil industry has recognized this concerned and in conjunction with the WWF has formed the Roundtable of Sustainable Palm Oil (RSPO) which endeavours to ensure development of palm oil in a sustainable way.