Case Studies

According to a 2024 article by Euractiv, there are significant issues raised by the amount of used cooking oil (UCO) imported by the UK and Ireland from Malaysia. Under EU rules, biofuels made from waste materials, including UCO, can be double counted towards renewable energy targets, which has incentivised producers to label palm oil (which is cheaper) as UCO and to charge more for it. Ireland, in particular, is heavily reliant on biofuels to decarbonise its transport system. The discrepancies between collected and imported UCO has raised concerns of biofuel fraud. Indeed, Malaysia has reported collecting 48-71 kilotonnes of UCO annually, while British and Irish authorities show 151 million litres of UCO imported from Malaysia in 2020. This troubling discrepancy suggests that substances such as palm oil, which are restricted in the EU, might be fraudulently labelled as UCO. Observing such gaps between export and import data, the International Council for Clean Transportation (ICCT) and Farm Europe have indicated potential fraud. To combat this issue, the European Biodiesel Board (EBB) has indicated support for the creation of a biofuels database to improve traceability. Meanwhile, the Irish government has set up a working group to address biofuel sustainability and potential fraud. 

Keywords: South East Asia & Pacific, Malaysia, palm oil, primary production, tax evasion, fraudulent documentation, forgery

Sources:  https://www.euractiv.com/section/fuels/news/discrepancy-in-british-and-irish-used-cooking-oil-imports-raises-biofuel-fraud-concerns/ 

https://www.euractiv.com/section/agriculture-food/news/to-tackle-biofuel-fraud-ireland-takes-matters-into-its-own-hands/