Towards cleaner fuel: Johari launching SD Guthrie’s B30 biodiesel pilot project in Carey Island. Also present are Nik Norzrul (left) and SD Guthrie’s group managing director Datuk Mohamad Helmy Othman Basha (fourth from right).
Ministry to step in as high costs stall land conversion for 50,000
BANTING: Some 50,000 smallholders have yet to convert their land status from rubber to oil palm plantations because of the high costs involved, says Datuk Seri Johari Abdul Ghani.
The Plantation and Commodities Minister said his ministry was currently discussing with state governments to help the smallholders convert the status of their lands.
“I want state governments to re-evaluate some of the land planted with oil palm, which is still classified as rubber plantation land,” Johari told reporters after launching SD Guthrie Bhd’s B30 biodiesel pilot project in Carey Island yesterday.
Johari said it was crucial to aptly convert the land status according to what was being cultivated in order to obtain the Malaysian Sustainable Palm Oil (MSPO) certification in line with the European Union Deforestation Regulation standards.
“The smallholders have to pay the state governments a premium sometimes ranging from RM30,000 to RM40,000 and this does not include penalties for the delay in converting the land status,” Johari explained.
One for the album: Johari (fourth from right) taking a group photo with Nik Norzrul (fourth from left) and SD Guthrie’s group managing director Datuk Mohamad Helmy Othman Basha (third from left) after the launch of SD Guthrie’s B30 biodiesel pilot project (below) in Carey Island. — KK SHAM/The Star
In order to help the smallholders to overcome the stumbling block, Johari said negotiations would be held with the state governments involved seeking financial solutions as well as possible penalty waivers.
“Perhaps I can negotiate a waiver of the penalty charges given that the palm oil industry is very important,” said Johari, adding that a list was being compiled to identify smallholders who have yet to convert their land status.
On another matter, Johari, who is also acting Natural Resources and Environmental Sustainability Minister, said amendments were being made to the National Climate Change Bill.
“It is still in draft form and I have not brought it to the Cabinet yet,” he said, adding that it is expected to be tabled in Parliament this year.
According to Johari, the Bill will include every aspect of climate change.
Johari said the proposed Bill will include incentives for companies that complied with climate change efforts.
“Companies will receive incentives such as carbon credits if they can prove that they are able to reduce carbon emissions,” the minister added.
He said there will also be legally binding provisions in the Bill to boost encouragement among public listed companies to actively partake in efforts to attain net-zero carbon emissions by 2050.
On the pilot project, Johari said it was an important move towards achieving the nation’s commitment towards the global sustainability agenda.
“I welcome SD Guthrie’s initiative that is part of the country’s commitment to initiate sustainable energy use and the carbon reduction agenda of achieving net-zero emission by 2050,” reiterated Johari.
He said biodiesel usage would reduce dependence on fossil fuels and empower smallholders.
Meanwhile, SD Guthrie Bhd chairman Tan Sri Nik Norzrul Thani Nik Hassan Thani said the B30 biodiesel project was not merely the conglomerate’s effort to make a switch to cleaner fuel.
“It is part of a larger Guthrie carbon reduction plan in line with the commitment to achieve net-zero goals by 2050,’’ said Nik Norzrul in his speech.
He added Guthrie was the very first palm oil company globally to receive the “net-zero” target validation from the Science Based Targets initiative (SBTi) which was a significant achievement in tandem with the company’s efforts.
“Hence, the launch of the B30 pilot project is reflective of our strong commitment towards contributing solutions for the climate change problems affecting the world,’’ he said.
