Social and environmental impact of palm oil
Palm oil production drives deforestation, biodiversity loss, and social conflicts.
Palm oil, derived from the oil palm, serves as a fundamental income source for many farmers across Southeast Asia, Central and West Africa, and Central America. Its cultivation and production, often conducted as monoculture on previously forested land, are frequently linked to human rights abuses, displacement of populations, and significant environmental harm. The crop is notable for producing 38% of the world's vegetable-oil output on just 6% of the world's vegetable-oil farmland, with its products widely used in cosmetics.
Deforestation
The production of palm oil requires intensive deforestation, leading to a gradual loss of flora and fauna in cleared areas. Tropical rainforests in countries such as Malaysia and Indonesia provide the most suitable climate with ample rainfall and sunshine, making them ideal for large plantations. The diverse biodiversity of these rainforests has diminished rapidly, as fauna is often fragile and easily affected by deforestation. Animals have been forced to relocate and increasingly come into contact with humans while searching for food; some species have not adapted, leading to significant population declines and disruption of symbiotic relationships. Deforestation leaves relatively low species richness in primary forests compared to undisturbed forests. One critically endangered species of particular concern is the Bornean orangutan. A 2018 study showed that from 1999 to 2015, over 100,000 orangutans were lost due to unsustainable natural resource exploitation, including the palm oil industry. Nest counts declined from 22.5 nests per kilometer at the start of the study to 10.1 nests per kilometer by the end. Additionally, E. guineensis cultivation helps push species invasions, such as Anoplolepis gracilipes in Southeast Asia. Biodiversity suffers in almost all taxa, including ants, bats, primates, bees, beetles, birds, dung beetles, isopods, lizards, mosquitoes, moths, and small mammals.
Other environmental issues
In Indonesia, rising demand for palm oil and timber has led to clearing of tropical forest land in national parks. Malaysia, the second largest producer, has pledged to conserve a minimum of 50 percent of its total land area as forests; as of 2010, 58 percent of Malaysia was forested. Palm oil cultivation has been criticized for greenhouse gas emissions, as deforestation in tropical areas accounts for an estimated 10 percent of manmade emissions. It also causes habitat destruction leading to the demise of critically endangered species such as the Sumatran elephant, Sumatran tiger, Sumatran rhinoceros, and Sumatran orangutan, and reduces biodiversity, including damage to biodiversity hotspots. Cultivation occurs on land belonging to indigenous people in Sarawak, Kalimantan, and Sabah. The increase in outbreaks of zoonotic diseases is linked with deforestation in tropical countries. In some states, lax enforcement of environmental legislation leads to encroachment into riparian strips and release of pollutants such as palm oil mill effluent (POME). POME contains high nutrient concentrations that foster algae blooms, depleting oxygen and negatively affecting aquatic life. Anaerobic treatment of POME can allow biogas production and electricity generation, but maintaining optimum growth conditions for the anaerobic organisms that break down acetate to methane is very difficult.
National differences
In Indonesia and Malaysia, which together account for over 80% of world oil palm production, smallholders account for 35–40% of the total planted area and as much as 33% of output. In West African countries producing mainly for domestic and regional markets, smallholders produce up to 90% of the annual harvest. Due to Malaysia's commitment to retain natural forest cover on at least 50% of the nation's land, growth of new plantations has slowed; significant expansion is no longer possible, and farmers focus on increasing production without expansion. In 2008, the CEO of the Malaysian Palm Oil Council wrote to the Wall Street Journal stating awareness of the need for sustainability. Since then, Malaysia has increased production of certified sustainable palm oil (CSPO) and is recognized by the Roundtable on Sustainable Palm Oil as the largest producer, supplying 50% of the world's CSPO and accounting for 40% of CSPO growers; Indonesia produces 35% of the world's CSPO. In Indonesia, the Indigenous Peoples' Alliance of the Archipelago (AMAN) under Mina Susana Setra has fought for policies balancing economic need and indigenous rights; 99% of palm oil concessions concern land occupied by indigenous people. The UN Food and Agriculture program encourages small farmers across Africa to grow palm oil, as it offers opportunities to improve livelihoods and incomes.
Sustainability
By 2016, voluntary sustainability certifications—including the Roundtable on Sustainable Palm Oil (RSPO), Rainforest Alliance, and organic labels—covered at least 17.4% of global palm oil fruit production. In 2008, palm oil meeting its standards began to be labeled certified sustainable palm oil (CSPO). Yet in the first year of certification, only 30% of the sustainable oil was actually sold as CSPO. In 2010, The Economist faulted the RSPO for failing to set greenhouse-gas emission rules for plantations and noted that its members accounted for just 40% of global output. After Norway contributed $1 billion, Indonesia announced in May 2010 a two-year halt on new permits to clear natural forests and peatlands, and said it would create its own mandatory certification system for all Indonesian producers. In 2011, Malaysia began developing the Malaysia Sustainable Palm Oil (MSPO) certification, targeting small and medium producers, with a planned 2014 launch. Malaysia also started environmental assessments of its palm oil industry using Life Cycle Assessment methods, covering seedlings, fresh fruit bunches, crude and refined oils, and downstream products like biodiesel. In July 2020, scientists analyzing satellite images revealed that even certified “sustainable” palm oil production had driven deforestation in Sumatra and Borneo and degraded habitats of endangered mammals over the prior three decades.
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