Journal of Energy Bioscience 2024, Vol.15, No.4, 243-254 http://bioscipublisher.com/index.php/jeb 248 agricultural sector, including mandates for POME treatment and deforestation prevention (Szulczyk and Khan, 2018). Internationally, agreements such as the Paris Agreement drive countries to adopt policies that reduce GHG emissions, indirectly promoting the use of biodiesel (Szulczyk and Khan, 2018; Ramirez-Contreras et al., 2020). Additionally, the European Union and the United States have renewable energy policies that significantly impact global palm oil production and trade (Rulli et al., 2019). 5.3.2 Incentives and subsidies Incentives and subsidies are essential for the economic viability of palm oil biodiesel. Governments in major producing countries provide financial support to offset the high production costs and encourage the adoption of biodiesel. For instance, Malaysia's subsidy of RM 1.09 per liter for biodiesel production is a critical measure to make it competitive with traditional diesel (Szulczyk and Khan, 2018). Such incentives not only support the biodiesel industry but also help achieve environmental goals by reducing reliance on fossil fuels and lowering GHG emissions (Szulczyk and Khan, 2018; Ramirez-Contreras et al., 2020). 6 Case Studies 6.1 Successful implementations of palm oil biodiesel Malaysia has been a leading example in the successful implementation of palm oil biodiesel. The country has developed a robust palm oil sector, which is a significant contributor to its economy, accounting for more than 5% of its GDP. The Malaysian government has successfully implemented the B5 and B7 biodiesel programs and is now focusing on the B10 blend (10% biodiesel, 90% petroleum diesel). These programs have increased the use of renewable energy sources and are expected to further boost the productivity of palm oil and biodiesel implementation in the country (Zulqarnain et al., 2020). Additionally, Malaysia's collaboration with Colombia in the biodiesel sector highlights the potential for international cooperation to enhance biodiesel policies and strategies (usoff et al., 2020). Indonesia has also made significant strides in palm oil biodiesel production. The country implemented the B30 program in early 2020 to reduce its dependency on fossil fuels and protect its palm oil market. This initiative has shown positive results, with an average energy return on investment (EROI) of 3.92 for palm oil-based biofuel, indicating a positive energy return (Prananta and Kubiszewski, 2021). Furthermore, the integration of biomass residues in biodiesel production has improved the cost competitiveness of the industry, reducing dependency on government subsidies and enhancing resource efficiency (Harahap et al., 2019). Indonesia's efforts in palm oil biodiesel production have also been supported by life cycle assessments to ensure environmental sustainability (Wahyono et al., 2020) (Figure 2). Figure 2 Map of the oil palm plantation in the Banyuasin Regency (Adopted from Wahyono et al., 2020)
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