This article first appeared in The Edge Malaysia Weekly on January 17, 2022 - January 23, 2022

As the world moves towards ensuring green and sustainable economies, technologies heralded as game changing such as hydrogen fuel and renewables such as solar and wind, and electrification have been increasingly adopted by more and more countries. 

In the automotive world, a number of European countries have already set timelines to stop selling internal combustion engine (ICE) vehicles, giving auto players and car buyers notice of their intent.

Carmakers that have previously continued to manufacture ICE vehicles, but worked to make them more fuel efficient and/or use lower carbon fuels, have been quick to pivot. 

Countries such as Indonesia and Malaysia, which have been looking to biofuels in their quest for cleaner tailpipe emissions — not to mention to support their palm oil — may need to rethink their policies.

Malaysia, for instance, set a target mandate of 10% palm oil blend in diesel, or B10, which was implemented in 2019. 

But adoption has been slow. Because of the Covid-19 pandemic, the implementation of B20 biodiesel in Peninsular Malaysia was postponed in 2020, although the mandate is expected to be rolled out this year. 

In recent years, the campaign against palm oil on the grounds of excessive deforestation, particularly in Europe, has proven to be a major stumbling block. Also, biodiesels do not appear a priority now in the drive towards a cleaner environment. 

In December last year, the European Commission said biofuel consumption in the European Union (EU) is set to fall by 2031 as road transport moves away from fossil fuel. Under the EU’s renewable energy directive, palm oil-based fuels are to be phased out by 2030. 

Given the shift in focus, will biodiesel mandates become less relevant in the reduction of greenhouse gas emissions? This is because with government support and advancement in technology, other options such as electric, solar photovoltaic and hydrogen vehicles are slowly becoming more accessible.

The current biodiesel mandate is already almost two years behind schedule. Should we continue to pursue higher mandates — such as B30, which Indonesia has adopted — when cleaner renewable technologies beckon?

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