What is it about?

The palm industry is a key source of revenue for the country, wherein 2009 the industry was responsible for generating 8% of the gross national income per capita. The interest in palm-based biodiesel can be traced back to the early 1980s, however, it was only in 2006 that Malaysia officially formulated its first National Biofuel Policy (NBP) as a strategic government intervention to drive development and implementation of palm biodiesel as a substitute to regular fossil-based diesel. The policy in its current form assumes that all biofuels are sustainable and therefore fails to provide assurances that the fossil diesel will be replaced by a more sustainable energy source. Here it has been argued that a market-based policy approach would be better than a technology-forcing mechanism.

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Why is it important?

A policy is a form of strategic government intervention. The general role of policy is to provide direction and guide decisions and actions in a particular area. Public policies provide a strategic vision to align supporting functional institutions such as laws, regulations, funding priorities, resource allocations and others in order to advance the policy goals. The formal objectives of the National Biofuel Policy (NBP) are twofold, those are: a) Use of environmentally friendly, sustainable and viable sources of energy to reduce the dependency on depleting fossil fuels; & b) Enhanced prosperity and well being of all the stakeholders in the agriculture and commodity-based industries through stable and remunerative prices.

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This page is a summary of: A detailed survey of the palm and biodiesel industry landscape in Malaysia, Energy, November 2014, Elsevier, DOI: 10.1016/j.energy.2014.09.007.
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