Environmental Impacts of Palm Acid

Palm oil production has been documented as a cause of substantial and often irreversible damage to the natural environment. Its impacts include: deforestation, habitat loss of critically endangered species such as the Orangutan and Sumatran Tiger, and a significant increase in greenhouse gas emissions. The pollution is exacerbated because many rainforests in Indonesia and Malaysia lie atop peat bogs that store great quantities of carbon that are released when the forests are cut down and the bogs drained to make way for plantations. Environmental groups such as Greenpeace claim that the deforestation caused by making way for oil palm plantations is far more damaging for the climate than the benefits gained by switching to biofuel.

The Roundtable on Sustainable Palm Oil (RSPO)is an organisation that was formed in 2004 with the objective promoting the growth and use of sustainable oil palm products through credible global standards and engagement of stakeholders. It has over 450 member organisations that are from the different stakeholders in the palm oil supply chain from the Palm Oil Growers to the Palm Oil Processors and Traders, Banks and Investors, Consumer Goods Manufactures, Retailers, Environmental Organisations (NGOs) and Social Organisations (NGOs). RSPO practices a consensus based decision making philosophy. The seat of the association is in Zurich, Switzerland, while the secretariat is currently based in Kuala Lumpur with a satellite office in Jakarta. This video done by WWF a environmental NGO gives a balance view of the industry and RSPO. Many of the major companies in the vegetable oil economy participate in the Roundtable on Sustainable Palm Oil, which is trying to address this problem, though their efforts so far have done almost nothing to change or slow the escalating situation and have been likened to green-washing. Even so, in 2008 Unilever, a member of the RSPO group, committed to use only palm oil which is certified as sustainable, by ensuring that the large companies and smallholders that supply it convert to sustainable production by 2015. On 1 June 2011, RSPO launched its trademark for use by its members. With this trademark producers of products such as chocolate, margarine and cosmetics can show their commitment towards sustainable palm oil through the use of the trademark. On 1 July 2011, PT Carrefour Indonesia reiterated its commitment to exclusively source for sustainable palm oil products by 2015. In August of that same year, RSPO marked one million hectares of certified sustainable land (and brought the volume of sustainable oil to over 5 million tonnes) with the certification of the Agropalma company in Brazil. It was also the first RSPO certification received by Brazil.

Meanwhile, much of the recent investment in new palm plantations for biofuel has been part-funded through carbon credit projects through the Clean Development Mechanism; however the reputational risk associated with unsustainable palm plantations in Indonesia has now made many funds wary of investing there.

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