Panels & Furniture Asia September/October 2024

SUSTAINABILITY

Addressing challenges in palm wood classification and certification

Regulation (EUDR) and similar international regulations necessitate stringent verification processes. Palm wood, being a relatively new material, is not adequately addressed by existing regulatory frameworks. The lack of specific Harmonized System (HS) codes for palm wood exacerbates this issue. Currently, stakeholders are advised to use timber codes such as those for blockboard and plywood. This classification as timber brings two primary concerns: First, by being classified under timber codes, palm wood products are subject to compliance with international regulations like the EUDR, Lacey Act, and European Union Timber Regulation (EUTR). These regulations require comprehensive third-party verification to ensure legality and sustainability, which can be challenging given the nascent status of palm wood certification. Second, the classification as timber also entails liability for timber export cess. This is a concern for businesses pioneering the use of oil palm trunk as raw material as they face additional

The potential global market for carbon sequestering palm wood is promising as industries seek sustainable alternatives to traditional timbers. However, the path to certification and compliance with international regulations is fraught with challenges. These challenges are critical not only for ensuring market access but also for reinforcing sustainable practices within the industry. CURRENT ISSUES Unclear certification bodies and standards: The fledgling palm wood sector faces a challenge in determining which bodies are responsible for its certification. Timber certification organisations such as the

Forestry Stewardship Council (FSC), the Programme for the Endorsement of Forest Certification (PEFC), and the Malaysian Timber Certification Council (MTCC) do not extend their certification to palm wood or materials derived from oil palms. Consequently, the Malaysian Sustainable Palm Oil (MSPO) scheme emerges as a potential alternative. Yet, it is not explicitly designed for palm wood products. This ambiguity leaves stakeholders uncertain about how to obtain the necessary product and legality certification.

Doors made with palm wood

financial burdens despite their contributions to sustainability.

Definitions and the dilemma faced by palm wood material: There are no established definitions nor standards for palm wood currently. What we can clearly claim is that ‘palm wood’ is not timber, and is derived from the repurposing of biomass generated by normal oil palm cultivation. Therefore, as a biomass material it does not fall under the jurisdiction of the EUDR nor of other timber regulations. The dilemma is

Regulatory compliance challenges: The European Union Deforestation

56 PANELS & FURNITURE ASIA | SEPTEMBER / OCTOBER 2024

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