Indonesia and Malaysia have questioned a U.S. decision  that their palm oil fails to meet regulatory greenhouse gas reduction standards, website Antaranews.com reported.

They disagreed with the U.S. Environmental Protection Agency's (EPA) ruling that biofuels from Indonesia and Malaysia cut only 17% of climate emissions, falling short of the 20% needed for the world's largest energy market.

Indonesia Palm Oil Committee chairperson Rosediana Soeharto,  claimed the EPA had miscalculated.

"The model (of study) used is not correct and does not match with that used by the European Union and creates uncertainty," she was quoted as saying.

She said the Indonesia government would submit scientific date and evidence showing that palm oil green house gas reduction standards is more than 40%.

Soeharto claimed 25 government institutions, associations, research institutes and academics were currently preparing against the EPA ruling to meet an extended feedback deadline from Feb. 27 to Mar. 28.

The Malaysian Palm Oil Board is also putting forward a response based on its own calculations of carbon emissions.

The EPA December ruling said biodiesel and renewable diesel products from palm oil only delivered greenhouse gas emission reductions of 17% and 11% respectively.

The Agency pointed out that palm oil production produces wastewater effluent that eventually decomposes, creating methane which is high in greenhouse gases.

It also highlighted the expansion of palm plantations onto to carbon-rich peat soil would increase harmful emissions into the atmosphere.

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Photo: Agricorner.com

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