While we may not always realize it, palm oil is likely an ingredient in many of the products we use daily. Yet its production carries a heavy environmental cost. This is the palm oil paradox. Do you remember around 10 years ago the big push back by society around palm oil? Because of the devastating effects it has on rainforests, such as deforestation and habitat loss? This post is going to be a deep dive with recent statistics and studies. Discussing why we may not like palm oil but why we also need it and why we all use it.
The Ubiquity of Palm Oil: Why it’s Everywhere?
What is it?
Palm oil is a vegetable oil, which people produce from the fruit of the palm trees (Elaeis guineensis). These evergreen trees are highly efficient as farmers can harvested them year-round.
Producers
Palm Oil plantations are found across the tropical climates of Southeast Asia, Africa, and South America. In 2021, the world produced 80.58 million tonnes (Mt) of palm oil. To put that into perspective, it’s around the weight of 12 Great Pyramids of Giza. With Indonesia (49.71 Mt) and Malaysia (18.12 Mt) being the highest producers. Thailand (2.94 Mt), Colombia (1.75 Mt) and Nigeria (1.35 Mt) followed. This post will focus on the production and impact of palm oil forest in Indonesia and Malaysia.
Importers
The largest importers of palm oil are India (9.17 Mt) and China (4.94 Mt), followed by USA (1.69 Mt). These countries use the oil mainly in food processing industries and for general cooking.
Comparing Land Use: Palm Oil vs Other Oils
Palm oil has the highest land use efficiency compared to other oils like rapeseed, soy, and coconut. One hectare (ha) of land produces 2.99 tonnes palm oil.
Out of all of the land used for vegetable oil production palm oil uses 8.6% of that land and produces 36% of the world’s vegetable oils. This means farmers can produce more palm oil on less land than any other type of oil.
Palm Oil Properties
Palm oil also has many unique properties which make it so popular. It also has a balanced with 50-50 of saturated and unsaturated fats. Companies fraction crude palm oil into liquid and solid oil, which they can use in processed foods. Palm oil has a high smoke point around 230 degrees C. Which makes it ideal for frying like high oleic oils. It also helps increase the shelf life of processed foods.
From Kitchens to Cars: The Many Uses of Palm Oil
Food and Everyday Items
Palm oil is a common ingredient in everyday foods. Such as chocolate, cookies, margarine, instant noodles, pizza dough and packaged bread. Companies also included palm oil in soap, detergents, lipstick, and shampoo.
Biodiesel
Companies are using Palm oil create biofuels. Driven by the worlds need to find fuel sources other than ones that release fossil fuels. Crude palm oil (CPO) is mixed with methanol over a few steps to create the final biodiesel product. There is debate about whether the deforestation to produce some of this biodiesel outweighs the reduced emissions from producing biofuel.
Agricultural food
Palm kernel expeller (PKE) a byproduct from palm oil production. Countries like Indonesia then ship PKE around the world as supplementary animal feed because of its good nutritional value. Farmers use PKE for intensively farmed livestock like dairy cows, pigs, and poultry.
Palm Oils Land Footprint: A Global Overview
Palm oil plantations covered 30.02 million ha(Mha) of land in 2022. This is roughly the size of Italy. Indonesia had 14.95 Mha, Malaysia had 5.14 Mha and Thailand had 948,060 ha of land used for palm oil production in 2022.
Palm Oil vs Other Oils: Land Use
It may come as a surprise but in 2022 Palm oil was only the 5th largest land user for vegetable oils worldwide. With 30.02 Mha of land used. Worldwide, Soybean oil production has the largest land area among all oi crops, 133.79 Mha. This is roughly the size of Peru.
Deforestation: The Rainforests Under Threat
Between 1973 and 2015 in Indonesian and Malaysian Borneo, scientists estimate that 18.7 Mha of old-growth rainforest were cleared. Of Borneo’s 73.7 Mha, 7.9 Mha are in oil palm plantations, representing just under 10% of the islands total land.
Rows of Green: Understanding Palm Oil Monoculture
In monoculture plantations, farmers only plant one type of crop or tree for example palm and pine forests. This may make the landscape look green, but it lacks biodiversity. Resulting in a few species who can live in these repetitive environments. Compared to the vast array of species in an old rainforest.
Nature under pressure: Palm Olis Environmental Effects
Biodiversity
By now you may know that rainforests are one of the most biodiverse places in the world. You may be thinking about how deforestation and conversion into monoculture crops affect this beautiful landscape. In a paper called the Ecological Impacts of Palm Oil Expansion in Indonesia. The authors explain topics that affect biodiversity which I will summarise below. If you want more information, I will highly recommend reading the full paper.
Rainforests
Southeast Asia could lose as much as 42% of biodiversity and 75% of its established rainforests by 2100. Biodiversity loss is linked to deforestation, in Indonesia.
Deforestation reduces habitat ranges and creates more patches of forests. This affects species as populations can become separated which reduces the gene flow, resulting in inbreeding. This also means animals like the Sumatran tiger and Sumatran elephant may have to venture out from the forests to get food. Which can cause human-wildlife conflicts with local people as the animals may eat their stock or plantations.
Between 1984 and 2007 Sumatran Elephant populations declined by 84% with as few as 210 individuals in 2007. Sumatran Tiger populations dropped 70% between 1982 and 2007 with as few as 192 individuals remaining.
Orangutans have become symbols of the protection of forests in Southeast Asia. To achieve this goal organisations such as WWF, Rainforest Trust, Conservation International and The Nature Conservancy are working in the region.
Ecological Imbalance: The Dangers of Single-Species Plantations
The ecology of a plantation is simple, there is only one major tree type. With the same height for a canopy and little growing beneath these trees. Palm oil plantations had the lowest amount of biodiversity compared to other plantations like coffee, rubber, and cocoa.
Species Loss
Only 15-23% of the species that are naturally found in untouched rainforests are supported in plantations. As they lack the food and habitat for many specialised forest species. This has resulted in a 77% decrease in bird species. Species like the Sundra Blue Flycatcher may be decreasing.
Plantations result in absences or reduced populations of many species. Such as Sumatran Rhino, Cinnamon Gliding Hawkmoth, Chocolate Albatross butterflies, Peppermint Pikehead Gourami fish and the Harlequin Tree Frog.
What is a peatland and why is it important to conservation?
A Peatland is a type of wetland ecosystem. In a low-oxygen environment where organic matter decomposes which forms peat with thick, black carbon. Peatlands are only found on 3% of land on Earth but hold onto almost a third of the world’s carbon. Of the worlds tropical peatlands, around 40% are found in Southeast Asia like Borneo and Sumatra.
Climate Change and Carbon Emissions: Palm Olis Contribution
Rainforests absorb more carbon than they release. Making them one of the largest carbon sinks in the world. Between soil and vegetation, tropical rainforests store 428 giga tonnes of Carbon. But tropical land use changes are responsible for 12-20% of the world’s heat-trapping greenhouse gas (GHG) emissions. Which is the second biggest source in the world.
Palm Oils Contribution to GHG emissions
The palm oil industry is producing GHG emissions through deforestation and the processing of palm oil.
Deforesting the world’s rainforest ecosystems and converting this land is the largest source of GHGs related to palm oil plantations. It releases carbon which is in vegetation and the soil. Affecting the stability of our climate, as less carbon will be absorbed into this precious ecosystem.
Factories that process palm fruit into palm oil, are run by fossil fuels. Which produces GHGs. Wastewater from the mill produces methane emissions and nitrous oxide is produced from fertiliser application. These are both incredibly strong heat trapping gasses.
Peatlands, Rainforests, Soils and Carbon Stocks
Ecosystem can pull a certain amount of carbon from the atmosphere, which is called a carbon stock. Compared to global rainforests, Indonesia has the third largest area of tropical rainforests and carbon stocks. Untouched Indonesian forest ecosystems store around 158 tonnes of Carbon stored per ha. Peat forests are even more important for carbon storage with on average 180 tonnes of carbon stored per ha.
Soil is also especially important for storing carbon. Mineral soils can store between 72 and 198 tonnes of Carbon per ha just in the top 30cm. When untouched rainforests are converted into cropland there is a 25% loss in the soil carbon.
Palm Oil Carbon Stocks
Palm oil plantations, only hold 20% of the original carbon locked in branches, leaves and bark found in untouched rainforests. Plantations have 24 tonnes of carbon per ha which is much less than rainforest or peat forests.
Peat Forest Convert and Carbon Loss
Peat forests have lots of dead organic matter in flooded and low-oxygen soils. Once drained, peatlands are exposed to oxygen which increases the decomposition of the dead organic matter. Over 20 years this can release 573 tonnes of carbon per ha. These releases of CO2 are around three times more than deforestation.
This CO2 loss from Southeast Asian peat forests being drained is contributing to around 2% of the GHGs. There have been high rates of peat conversion in Southeast Asia. With around 1/3 of new palm oil plantations being planted on peat soils. Peat forests can burn very easily. The emissions released can be 207 T of CO2 per ha to 1500 T CO2 ha.
Indonesia, GHGs and Biofuel
In Indonesia, there is an estimation that over 75% of its GHGs, are from land use changes and peatland destruction. Indonesia wants to reduce their GHGs by using bio-oil which needs lots of palm oil. This may not counter the GHGs emitted by plantations. Therefore by increasing the amount of bio-oil production could actually increases Indonesia’s emissions.
Pollution
Regional Haze: The Spread of Air Pollution from Plantations
You may be wondering how can palm oil trees create air pollution. They do pull CO2 out of the air, which is a good thing. But palm oil plantations directly contribute to 20% of the wildfires in Indonesia.
Causes of Wildfires
Slash and Burn Agriculture
This is from slash-and-burn agriculture. The process of cutting down rainforests and the remaining vegetation is burned. In order to create carbon and nutrient-rich ash for farmers to then plant their trees on. There are regulations on these practices, but it still occurs as one of the main methods of deforestation.
Climate Change
Climate change is also increasing tropical temperatures. Causing forests to be drier and less humid than we know them to be. 2021 had the highest global loss of forests from fires, with 9.3 million ha being lost. That trend has been increasing over the past 20 years.
Draining Peatlands
Drained peatlands are wetlands where the soils are waterlogged preventing decomposition. These can create soils rich in carbon for farmers to plant plantations on. But this high carbon content is extremely easy to burn which creates a lot of smoke.
Dangers of Smoke
Wildfire smoke has many harmful substances like Carbon Monoxide, Nitric Oxide and Nitrogen Dioxide. According to the Pollutant Standards Index (PSI), a score over 300 is hazardous to people. When there are wildfires in Indonesia the PSI can range from 400-2,000.
Health Impacts of Wildfire Smoke
The effects of wildfire smoke are similar for both animals wild and domestic and humans. With effects like burns, eye and skin irritation, disorientation, both cardiovascular and respiratory issues and death.
In southeast Asia, estimates are saying that 110,000 people die per year because of health effects stemming from Wildfire Haze.
Plantation Pollution: Water and Soil Degradation
Palm Plantations are a horticultural practice. Which means farmers need to deal with problems like pests, infections, growth, and production rates of the palm trees. As the higher the production and growth the better income the farmers can make.
Causes of Soil and Water Pollution
Agrochemical Application
Farmers can apply agrochemicals like rodenticides, pesticides, and fertilizers to keep the Palm crop healthy. These chemicals have many negative effects on the soil and water health of the immediate and surrounding areas.
All these agrochemicals can leach into soils and waterways which contaminates drinking water supplies. Some of the chemicals may also have metals that can build up in the food chain. Which can result in issues like lead poisoning in humans and wild animals. Fertilizers have elevated levels of NPK which are essential plant nutrients. When these leach, they can cause excessive amounts of plant growth in aquatic areas. Resulting in low oxygen and algae blooms in waterways, especially lakes. This can kill the fish local people and animals rely on for a food source and pollute the waterways.
Palm Oil Mill Effluent
The processing of palm fruit creates Palm Oil Mill Effluent (POME). This is wastewater, held in ponds that can overflow in heavy rain into waterways. POME also has heavy metals as I said before may result in bioaccumulation. Important ecosystems like wetlands, peatlands, rivers, and coastal regions can be affected by this pollution.
Health Impacts of Working on Palm Oil Plantations
A lack of proper safety equipment puts these workers at significant risk. It is generally women who are working with these agrochemicals which increases their exposure rate. When working with these chemicals especially if pregnant women will suffer health consequences. Some health effects from a few chemical classes of agrichemicals are lung damage, chemical burns, many cancers, reproductive and developmental effects.
Palm Oil and Power: The Social Inequalities of Plantations
The palm oil industry contributes a considerable amount to the local GDP and employment. However, the economic benefits are only distributed to a small group of people, which creates economic unbalance.
Some injustices involved with the palm oil industry are abuse of human rights, unjustified debt on smallholders, retaining promised benefits and compensation and degrading water and land resources, which reduces the local community’s quality of life.
Native Customary Rights acknowledges Indigenous Peoples’ and Local Communities’ rights to access traditional land and resources. Companies sometimes ignore these rights when converting land to Palm Plantations. And they don’t tell Indigenous Communities about planned deforestation which leads to conflict between communities and Palm oil companies.
Indigenous communities may have to change their way of life. As they are finding it hard to access their forest resources. The degradation of the soil, forest and freshwater environments creates many problems that Indigenous communities must face.
Palm Oil and Jobs
Palm oil production supports the lives of many Indonesian farmers, families, and communities. The production supports smallholders. Who are small-scale farmers or forest keepers in this case that manage 1 to 10ha of land. Across Indonesia’s 17,000 islands, there are 2.3 million smallholders who employ 4.6 million people on these farms. Smallholding palm oil farms are seen all over Southeast Asia supporting the livelihoods of many communities.
Can sustainable Palm Oil save our Rainforests?
So, by this point, you may be thinking, should I run away from palm oil as fast as I can? Well, it’s complicated and entirely your choice.
But if we look at the bigger picture, we are always going to need oil and Palm oil produces the highest yield per ha which is amazing. But all the other environmental effects look terrifying.
So, are there any solutions? Can we still produce palm oil, by only using the land that has already been deforested? Or any degraded farmland all while protecting the incredible rainforest ecosystems and species that live in them? All alongside acknowledging Native Customary Rights, paying living wages and allowing for the economic development of these developing countries.
As you can see it is going to take conversations with everyone involved and may need support from developed countries. With legally binding laws and protections. But from what I have read in the research and from the work of passionate individuals, there is hope for this challenge.
Solutions and Mitigations
Law Enforcement and Mitigations
The first step here needs to be stricter law enforcement and regulations to decrease deforestation and protect biodiversity. There needs to be mitigation to reduce the negative impacts that affect these ecosystems from human activity.
To protect the remaining rainforest, companies should move from deforesting more untouched rainforest (primary forests). To planting on land that has regenerated after human impacts (secondary forests). Companies should also look at growing their plantations on degraded land which can increase the carbon fixation of that land.
High Conservation Value Land
Biodiversity hotspots that have a High Conservation Value (HCV) should be the focus when there are plans for plantation lands. HCV land is where there is an abundance of species in a certain place.
Allowing connectivity of Ecosystems
For example wildlife corridors can connect patches of forest together. This is done by making sure there is pathways of native forest and habitat. This could be next to rivers or the boundaries of farms and plantations. This means that many species can move between habitats with little human conflicts. This means that animals can reproduce with mates from different places which can move the genes. This flow of genes increases genetic diversity which is critical for endangered species with a low population.
Farmers can add biodiversity to palm forests, if they are encouraged to leave plants to grow around palm trees. These plants could be epiphytes which can grow up the tree or on the tree. Epiphytes can help increase the diversity of habitats and food sources increasing diversity of species. Also allowing forests to naturally regenerate brings biodiversity back.
Cooperation
All these solutions require laws, legal enforcement and planning. With cooperation between governments, environmental organizations and palm oil farmers and companies.
Are other oils better for the environment compared to palm oil?
Not necessarily. While some other oil sources may be able to be grown on land that hasn’t recently been deforested. They all need a much higher land use compared to palm oil. Which could increase the amount of land we use to grow our food on, if we used more alternative oils. If the world keeps the land that we grow food on to the smallest amount. Then we can start letting natural ecosystems like rainforests regenerate. As we need less land to support the worlds food needs.
So, should we continue using palm oil, or boycott it?
What is the world doing to help?
RSPO
The RSPO stands for the Roundtable on Sustainable Palm Oil which was started in 2004.
RSPO gives certification to those who apply with the RSPO standards. From the plantation and through the supply chain. These organisations also have to go through an annual audit process by accredited certification bodies. They also have to keep improving their compliance to show that they are always making improvements.
Some benefits of the RSPO are the protection of workers’ rights, increased yield, reduced GHGs and pesticide use, reduction of workplace accidents, better waste management and supporting smallholders.
RSPO weaknesses
There have been a few concerns with the RSPO. The way it has weak enforcement, cost barriers for smallholders, and lack of transparency, they also don’t help reduce fire rates and greenwashing concerns. As RSPO doesn’t fully ban peatland development which can be considered greenwashing as it is unsustainable practices.
ISPO
The ISPO stands for Indonesia Sustainable Palm Oil. Which has been running for 10 years to help Indonesian sustainable, environmental, social, and economic goals. The ISPO-certified area deals with over 33% of Indonesia’s Palm oil plantations. This is based on seven principles that were discussed between palm oil growers, governments, NGOs, academia, and stakeholders. The ISPO is working directly with the United Nations Development Programme to help achieve their sustainable palm oil goals.
MSPO
This stands for Malaysian Sustainable Palm Oil. This is the national certification scheme for Malaysia. There is a 13-member board which is composed of the Government, NGOs, smallholder organisations, the Palm oil industry, civil society and academic and R&D institutes. The MSPO certification has been made to promote sustainable and fair palm oil production in Malaysia. This is achieved through transparency, industry compliance and widespread trust in the certification scheme.
Rainforest Alliance
The Rainforest Alliance also has a certification programme. Where their crops are produced with all three pillars of sustainability (environmental, social and economic) in mind. They work with many crops including but not limited to coffee, cocoa, bananas, herbs and spices and palm oil. They have two certifications for Palm oil these are The Universal Mill List. Which shows most of the palm oil mills around the world for supply chain and traceability. Also the New Approach to Palm Oil. Which is moving to support smallholders, increase transparency improve smallholder livelihoods and reduce deforestation.
World Wildlife Fund
The WWF has a Palm Oli Buyers Scorecard which looks at a variety of companies. Which is used to see if their commitments to use sustainable palm oil aligns with their actions. You can click on this link to see which brands are leading the way or lagging. Companies like Mars Inc., Ferrero Group, Cérélia, Beiersdorf AG, The Estee Lauder Companies and Marks and Spencer are leading the way in the last scorecard in 2024.
What can you do?
Your Consumer Power
You can demand with your voice and your dollar with how you want palm oil to be produced. By only buying products that have one of the certification labels above, shows producers what you want. They will listen by investing more into making sure their products keep up with these standards, leading to increased profit.
Buy local
If you have the resources to buy locally produced oils this is another great way. Not just for deforestation. There is also a smaller carbon footprint as it has travelled a shorter distance. By supporting local, you can ask your farmer how the oil was produced. Also you can support the farms which give back to nature e.g. planting natives by rivers for pollinators, birds, and freshwater health.
Grow your own
If you have the resources, have a go growing your olives for olive oil or other oils etc. The benefits of growing your food and oil it promotes a healthier lifestyle for yourself and your family. It also reduces food waste, food cost and carbon footprint. It is also amazing for your mental health to go out planting and harvesting produce.
Support Organisations
Adopt an orangutan through the WWF or another animal found in the rainforests of Southeast Asia. Or you can give money to organisations that support sustainable palm oil production, and protect the rainforest and animals in it. Also, you and your family may consider flying over to Malaysia to volunteer in conservation projects.
Thank You!!
Thank you for reading this blog post.
Please let me know what your opinion is on palm oil. Are you going to look for sustainable palm oil products? Or are you going to volunteer to help on the ground. To make a difference for the amazing species in Southeast Asia.
Georgia xo
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