Indonesia Files Complaint Over RED II in WTO

GENEVE--Indonesia filed a complaint at the World Trade Organization (WTO) over the European Union’s policy on Renewable Energy Directives/RED II. Indonesia regards RED II as a trade barrier for palm oil and its derivative products to enter 28 countries in the European Union (EU).

Delegation of Indonesia to WTO filed the complaint at the Committee on Technical Barriers to Trade (TBT) meeting in Geneve, Swiss, 14-15 November 2018. RED II establishes an overall policy for the production and promotion of energy from renewable sources in the EU.

It requires the EU to fulfill at least 20% of its total energy needs with renewables by 2020 – to be achieved through the attainment of individual national targets. All EU countries must also ensure that at least 10% of their transport fuels come from renewable sources by 2020.

Therefore, Indonesia regards RED II is not compatible with the WTO provisions since it constitutes a restriction on palm oil. On a press release, delegation of Indonesia led by Hasan Kleib, Permanent Representative/Ambassador to the United Nations, WTO and Other International Organization in Geneve, said that RED II is discriminatory to Indonesian palm oil.

The decision on RED II favours EU vegetable oil products only which is produced from EU feedstock, mainly from rapeseed. Complaint from Indonesia delegation was also supported by Malaysia, Honduras, Colombia, and Thailand. In response to the complaint, the EU promised to conduct consultations with WTO members affected by the negative impact of RED II. ***