Malaysia to launch MSPO Impact Alliance by 3Q to boost demand for certified palm oil ahead of EU deforestation law

The MSPO Impact Alliance, led by the Malaysian Sustainable Palm Oil (MSPO), is set to launch in the third quarter of this year to align with the European Union Deforestation Regulation (EUDR). The alliance will focus on initiatives like green financing, digital traceability, deforestation monitoring, and inclusive sourcing for smallholders. Partnerships with NGOs, accreditation bodies, financial institutions, tech providers, and multinational companies are expected to enhance the standard of palm oil. Meanwhile, Nestlé Malaysia aims to source 30% of its cocoa beans domestically by 2034, with current local production being relatively small and requiring significant expansion and improvement in farmers' yields.

The MSPO Impact Alliance is expected to be launched by the third quarter of this year ahead of the implementation of the European Union Deforestation Regulation (EUDR), said Plantation Industries and Commodities Minister Datuk Seri Johari Abdul Ghani. Spearheaded by the Malaysian Sustainable Palm Oil (MSPO) — formerly known as the Malaysian Palm Oil Certification Council — the alliance will serve as a platform to pilot key initiatives such as green financing for certified producers, digital traceability solutions, deforestation monitoring tools, and inclusive sourcing incentives for smallholders. These efforts aim to align with the requirements of the EUDR through collaboration with non-governmental organisations, accreditation bodies, financial institutions, technology providers, and multinational fast-moving consumer goods companies, including Nestlé (Malaysia) Bhd (KL:NESTLE). “Most of the multinational companies operating in our country manufacture a range of products — ...