Social and environmental impact of palm oil
[1] Palm oil plantations, typically monoculture crops are under increasing scrutiny for their effects on the environment, including loss of carbon-sequestering, biodiverse forest land.
[3][4] An estimated 1.5 million small farmers grow the crop in Indonesia, along with about 500,000 people directly employed in the sector in Malaysia, plus those connected with related industries.
Deforestation in Indonesia for palm oil (and illegal logging) is so rapid that a 2007 United Nations Environment Programme (UNEP) report said that most of the country's forest might be destroyed by 2022.
[8][9] It allows small landholders to participate in the cash economy[10] and often results in improvements to local infrastructure and greater access to services such as schools and health facilities.
[14] In the Sarawak state of Malaysian Borneo, there has been debate over whether there was an appropriate level of consultation with the Long Teran Kanan community prior to the development of local land for palm oil plantations.
[14] Additionally, some Indonesian oil palm plantations are dependent on imported labor or undocumented immigrants, which has raised concerns about the working conditions and social impacts of these practices.
[21] Animal wildlife has been most affected in areas where significant amounts of land, for commercial palm oil purposes, have been cleared to allow the trees to be planted.
[27] In tropical countries such as Malaysia and Indonesia, where a majority of palm oil plantations are located,[36] there are continual rain showers and sun exposure throughout the day.
[39] The untreated water that the local villagers are exposed to can potentially cause detrimental health effects, including diseases such as cholera, E. coli and lead poisoning.
[8] In Indonesia, rising demand for palm oil and timber has led to the clearing of tropical forest land in Indonesian national parks.
[59] POME contains high nutrient concentrations and can foster the growth of algae blooms, which deplete oxygen levels and can have negative implications for aquatic life, and consequently alter ecosystems.
[64] Damage to peatland, partly due to palm oil production, is claimed to contribute to environmental degradation, including four percent of global greenhouse gas emissions[65] and eight percent of all global emissions caused annually by burning fossil fuels,[66] due to the clearing of large areas of rainforest for palm oil plantations.
[67] The process of draining peatlands and the growth of young palms results in 50 percent greater greenhouse gas emissions when compared to mature plantations.
[67] This is a growing concern among ecologists and environmentalists as more tropical peatlands are being converted into plantations due to land shortage, in order to meet the increasing demand for palm oil.
[68] Researchers are looking for possible, more environmentally friendly, solutions and ways to help the situation and have suggested that if enough land is conserved and there remain large enough areas of primary forest reserves, the effects of the palm oil industry may not have as much of an impact on wildlife and biodiversity.
[69][70] Greenpeace identified Indonesian peatlands—unique tropical forests whose dense soil can be burned to release carbon emissions—which are being destroyed to make way for palm oil plantations.
Greenpeace argues the peatlands represent massive carbon sinks, and they claim the destruction already accounts for four percent of annual global CO₂ emissions.
[72][citation needed] Greenpeace recorded peatland destruction in the Indonesian province of Riau on the island of Sumatra, home to 25 percent of Indonesia's palm oil plantations.
Greenpeace claims this would have devastating consequences for Riau's peatlands, which have already been degraded by industrial development and store a massive 14.6 billion tonnes of carbon, roughly one year's greenhouse gas emissions.
[74][75] Haze, a form of air pollution, is a major recurrent issue across Southeast Asia, partly linked to burning of rainforest and peat swamp forest to clear land for palm oil plantations.
[77] As a result of Malaysia's commitment to retain natural forest cover on at least 50% of the nation's land, the growth of new palm oil plantations has slowed in recent years.
The United Nations Food and Agriculture program is encouraging small farmers across Africa to grow palm oil, because the crop offers opportunities to improve livelihoods and incomes for the poor.
[87] Biodiesel made from palm oil grown on sustainable non-forest land and from established plantations reduces greenhouse gas emissions.
[1] In The Economist in 2010, the RSPO was criticized for not setting standards for greenhouse-gas emissions for plantations and because its members account for only 40 percent of palm oil production.
Additionally, Indonesia announced plans to create its own organization similar to the RSPO, which, as a government certification system, will introduce mandatory regulation for all Indonesian palm oil producers.
In July 2020 scientists show via detailed analysis of satellite images that certified "sustainable" palm oil production resulted in deforestation of tropical forests of Sumatra and Borneo and endangered mammals' habitat degradation in the past 30 years.
SPOTT is a free, online platform that evaluates commodity producers, processors, and traders on their public disclosure on environmental, social, and governance (ESG) issues.
[109] SPOTT evaluates the public disclosure of 100 palm oil producers, processors, and traders in terms of their organization, policies, and practices relating to environmental, social, and governance (ESG) issues.
These companies have expressed concern about the potential impact of low consumer demand on the cost and future availability of sustainable palm oil.
The 2010 report estimates that protecting the 13,000,000 hectares (50,000 sq mi) of mostly tropical forest that are lost annually worldwide would boost American agricultural revenue by $190–270 billion between 2012 and 2030.
