Indonesia marks a key win after the World Trade Organization ruled in favor of its case against the European Union (EU) over palm oil-based biodiesel. This has emerged as a significant victory for Indonesia, as it means the EU will have to review its controversial regulations targeting Indonesian palm oil based biodiesel. Indonesia hopes this decision will trigger a policy adjustment by the EU towards compliance with WTO recommendations.

Background of the Dispute

This case started when, in 2019, the EU voted on phasing out palm oil based biodiesel from 2030. It used deforestation problems linked with its production as its ground for imposing restrictions. Since the world’s biggest palm oil producer was Indonesia, they fought against the proposition, which would allegedly unfairly deprive it of this form of business. Indonesian representatives argued that this is a climate based issue camouflage since it hampers the protectionist approach against unrestricted international trade.

Also read: Indonesia to Enter International Carbon Trading Market in January 2025

The matter was taken to the WTO, with Indonesia attempting to contest the EU’s strict policies. As a result, the WTO’s decision is making the EU reconsider how they implement such policies, particularly about palm oil biodiesel treatment.

WTO’s Ruling on the EU’s Measures

The WTO panel found that the EU’s focus on reducing greenhouse gas emissions was legitimate. However, it also identified several flaws in how the EU implemented its policies. One of the key issues was that the EU failed to review data in a timely manner. Additionally, the EU did not meet transparency obligations, making its decision making process unclear.

The panel also noted that the EU’s measures discriminated against palm oil biodiesel from Indonesia. They were found to treat Indonesian biodiesel less favorably than similar products from the EU or other third countries.

Indonesia’s Response to the Ruling

Indonesia’s Trade Minister, Budi Santoso, expressed satisfaction with the WTO’s decision. He indicated that the ruling was a positive step for global trade. The Indonesian government hopes this will set a precedent, preventing other countries from implementing similar protectionist policies.

Indonesia also emphasized that it will monitor the EU’s regulatory changes closely. The country expects the EU to revise its regulations to comply with the WTO’s recommendations and ensure fair trade practices moving forward.

Origen Power Limited, a pioneering provider of limestone-based carbon removal solutions, has successfully raised $13 million in Series A funding. The funding round was led by Barclays Climate Ventures and saw participation from Shell Ventures, Exascale Fund (Exa), Elemental Impact, and Hatch.

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Origen is scaling its innovative limestone-based direct air capture (DAC) technology, one that absorbs carbon dioxide from the atmosphere. This will enable the company to expand and develop commercial projects worldwide. Additionally, Origen plans to enhance its technology through further research at its technology and research centre in Bristol.

A Unique Approach to Carbon Removal

Origen’s DAC technology utilizes limestone’s natural chemistry to absorb CO₂ from the air. Carbon is sequestered underground in the form of mineral lime and continues to lock away more CO₂ from the atmosphere with each passing year. This creates a carbon removal solution that not only works but is also sustainable enough to help mitigate emissions in difficult-to-decarbonize sectors like manufacturing, shipping, and construction.

Ben Riddle-Turner, CEO of Origen said, “Efficiently enabled by the technology we have developed at Origen, limestone can act as a natural sponge for carbon dioxide in our atmosphere.”

He added, “The challenge is that we need investment to deliver at scale. This funding gives us the runway we need to streamline our process and reduce costs to deliver the carbon reductions that our planet needs.”

Also read: Origen Partners with EERC to Accelerate Direct Air Capture Technology

Groundbreaking Projects and Partnerships

Origen has already begun significant projects, including a partnership with the Energy and Environmental Research Center (EERC) to capture 1,000 tons of CO2 annually at a facility in North Dakota. This approach incorporates proprietary technology across various stages, ensuring scalable and adaptable carbon removal solutions.

Origen is collaborating with Shell and Mitsubishi on the Pelican Gulf Coast Carbon Removal project, aiming to remove up to 50,000 tons of CO2 annually—more than any other operating DAC facility in the US. The project also includes potential offtake of advanced carbon removal credits valued at up to $3 million.