With demand for crude oil dropping sharply, leading to a steep fall in crude oil prices, the viability of the biodiesel business has also weakened significantly, putting both Malaysia and Indonesia’s biodiesel mandates under pressure.

However, there is a silver lining in the dark clouds, as the world has seen the benefits of an almost 5.5% reduction in greenhouse gas emissions during the global lockdown due to the COVID-19 pandemic, said Sumwin Group founder and chief executive officer (CEO) UR Unnithan.

“This has got climate change experts, policymakers, non-governmental organisations and consumers thinking about a new world, towards a greener economy with a greater share for renewables, which augurs well for the palm oil industry,” he said.

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The Edge Markets