GlobEcon Research Papers
01-2010
European Policies towards Palm Oil – Setting the record straight
Biofuel use is increasing throughout the European Union. This increased use has raised some concerns about the environmental impact of these fuels. Of particular concern is palm oil, a biofuel derived from palm trees in tropical regions.
Policymakers and the general public, concerned about greenhouse gas emissions, have been seeking alternatives to carbon-rich fuels. Biofuels have emerged as an attractive alternative in Europe’s deliberations about green energy. Yet, the EU Renewable Energy Directive is discriminatory from the outset against foreign biomass and the greenhouse gas saving values and their interpretation are based on incorrect assumptions and faulty calculations.
This paper analyzes the many claims about palm oil's harmful environmental impact and finds them seriously flawed. In addition the paper analyzes questions of economic growth and development related to palm oil that are overlooked by the critics of palm oil.

