The government has called on countries producing palm oil to strengthen cooperation following new European Union (EU) legislation aimed at reducing the use of palm oil-based fuels.

The EU is a key palm oil importer but demand is expected to fall significantly within the next 10 years due to a renewable energy directive to phase out palm-based transport fuels by 2030 over perceived links to deforestation.

The bloc last month agreed on a new law that prevents the...