KUALA LUMPUR: The Malaysian Palm Oil Certification Council (MPOCC), an independent body similar in nature to the Malaysian Timber Certification Council (MTCC), is expected to be operational by the first quarter of next year.

The MPOCC was set up to regulate the Malaysian Sustainable Palm Oil (MSPO) certification scheme, Plantation Industries and Commodities Minister Datuk Amar Douglas Uggah Embas told the press after opening the Oils and Fats International Congress 2014, which is organised by the Malaysian Oil Scientists and Technologists Association, yesterday.

“The reason for establishing this council is to indicate to the world that it (MPOCC) is independent and therefore has the integrity to be able to provide a credible certification for our palm oil,” he said.

“If this duty falls to the Malaysian Palm Oil Board, it has some interests in palm oil developments. We have seen the success of the MTCC and we would like to emulate it,” he added.

The MSPO certification scheme will come into effect from Jan 1, and will be an alternative to the currently available sustainability certification schemes.

“We have done pilot projects to see how it will be implemented and some of the teething problems we came across have been resolved. So we think it will be ready to be rolled out next year,” said Uggah.

According to a statement from his office, a pilot audit carried out between April and October this year showed that three mills, three plantations and two smallholders had successfully complied with MSPO requirements.

“MSPO can be used for government-to-government negotiations and trade ... equally important is the fact that MSPO can be used to support the branding of Malaysian palm oil, which will gain Malaysia a larger share of the edible oils and fats markets,” the statement read.

On a separate matter, Uggah said the government is looking to implement the B10 biodiesel, a blend of fuel comprising 10% palm oil methyl ester with 90% petroleum diesel, here soon. He said there are still teething problems that needed to be sorted out before the new blend of fuel was introduced.

“I am confident that those issues will be worked out by the middle of next year, and the timeline for implementation will be announced accordingly,” he said, noting the transition period from B7 to B10 for blending facilities would be about one month.

The government had last Saturday implemented the B7 biodiesel mandate to be introduced in stages, starting with Peninsular Malaysia. It will be implemented in Sabah, Sarawak and Labuan by December.

When asked if weakened crude palm oil prices would have an impact on the biodiesel mandate, Uggah said the government had reserved a certain amount of resources to support the programme, and the programme would make use of bands which could be adjusted accordingly to accommodate fluctuations in palm oil prices.

However, he declined to comment on whether the government would extend the tax-free exports of crude palm oil beyond the year-end.

This article first appeared in The Edge Financial Daily, on November 7, 2014.