Key Recommendations:
1. Several U.S.-based companies have announced their commitment to sustainability of palm oil supplies by future dates such as 2012 or 2015. This is a positive trend, but eventually these commitments need to be linked to a credible third party certification program, such as those with the characteristics of the RSPO, or RSB. [2]
2. As shown in Figure 1 below, the profitability of palm will be a major driver in its expansion. U.S.-based multi-lateral assistance agencies such as the World Bank, and private banks should ensure that financing of palm oil expansion leads to actual social benefits and does not increase rates of deforestation, dislocation of indigenous communities, or create substantial new sources of greenhouse gas emissions.
3. Latin America, especially northern Brazil, will experience a dramatic increase in the palm oil sector and provide new supply chains to the U.S. Brazil is making strong efforts to ensure expansion occurs on appropriately zoned degraded lands so as not to undercut their national goals for reducing deforestation or protect existing forest reserves. However, many challenges remain. U.S. companies and suppliers should support Brazilian producers who respect the process of agro-ecological zoning, land titling, forest code enforcement, and the application of RSPO standards.
4. The concept of sustainability is rapidly evolving to include the greenhouse gas (GHG) impacts of agricultural commodities such as palm oil. In particular, where palm oil is being cultivated and marketed as a biofuel to meet GHG reduction targets, accurate GHG accounting protocols must be followed, including any direct or induced deforestation. Carbon neutrality cannot be assumed for all palm oil supply chains.
5. The RSPO, which currently certifies about 5% of global production, has made many improvements but changes are still needed to protect its legitimacy. U.S. companies can help and encourage the RSPO to become stronger in the four areas of: governance, verification, forest and peatlands protection, and greenhouse gas accounting.
Notes:
[1] “Rise of sustainability bullish for palm oil” by Dorab Mistry August 30, 2010, Commodity Online.
http://www.commodityonline.com/news/Rise-of-sustainability-bullish-for-palm-oil-31308-3-1.html
[2] Roundtable on Sustainable Palm Oil (RSPO), http://www.rspo.org/; Roundtable on Sustainable Biofuels (RSB), http://www2.epfl.ch/energycenter-jahia4/page65660.html
[3] Butler, R. A. and Laurance, W. F. 2009. Is oil palm the next emerging threat to the Amazon? Tropical Conservation Science Vol.2 (1):1-10. www.tropicalconservationscience.org
Original Work:
Title of the Study: “Food, Fuel, or Forests? Charting a Responsible U.S. Role in Global Palm Oil Expansion”
Authors: Eric Palola & Nathalie Walker, NWF
Check this link for the Full Study: http://www.nwf.org/Global-Warming/Policy-Solutions/Forests-and-Farms/Tropical-Deforestation/~/media/PDFs/Global%20Warming/Policy-Solutions/NWF_Palm_Oil2.ashx
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Source: National Wildlife Federation (NWF).
