Abstract:
The objective of this study is to describe trade discrimination enacted by the European Union (EU) on Renewable Energy Directive 2009 (RED 2009) policy. Renewable Energy Directive 2009 , a replacement intended for existing Renewable Energy Dirrective (RED) 2001/77/EC and biofuels directive (2003/EC) promotes renewable sources usage for electricity production, heating and cooling, and transportation. The directive states a 35% threshold with fossil fuel set as default value. According to these values, palm oil did not reach the threshold stated (default value 19%). However, when certain production patterns (e.g.: methane gas trap at factories) were used, the biofuel derived from palm oil was shown to comply with the aforementioned requirement.
The author used data originating from multiple legitimate sources to analyze the trade barriers/discrimination enacted by EU toward the assessments of emission generated by Crude Palm Oil ; that is, by purposefully overlooking plant productivity, fertilizing, and other in-production energy sources utilization when comparing it to vegetable oil in term of biodiesel production.
Furthermore, the analysis showed that this discrimination is based on massive investments on development of renewable energy, especially biofuels, that started since 1977. A wide range of support in effect of Common Agricultural Policy schemes are set aside requirement, various tax exemption policies, manufacturing installation, etc.
