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In January 2026, Indonesia's Bappenas signed an agreement with the Chinese Society of Environmental Sciences to develop Low Emission Palm Oil Mills (PaMER) aimed at reducing emissions by up to 79%. However, the initiative faces challenges due to upstream deforestation linked to biofuel projects.

Indonesia's significant tree cover loss since 2001 highlights the environmental risks. Experts urge China to halt funding for deforestation-associated biofuel projects and implement stricter financing measures to promote sustainable practices in palm oil production.