Palm Oil is Unavoidable. But It Can Be Sustainable

Palm Oil is Unavoidable

But It Can Be Sustainable

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Index What’s the deal with Palm oil? ............................. 4 How Did This Started? .............................................. 6 Addressing the Political Economy .................... 8 The Impact of Palm oil ........................................... 10 Environmental .................................................................. 11 Economy .............................................................................. 15 Social ..................................................................................... 20 What’s the solution? ................................................ 22

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What’s the Deal With Palm Oil?

Palm oil came from an edible vegetable primarily derived from the pulp of the fruit of Elaeis guineensis and to a lesser extent from the American oil palm Elaeis oleifera and the maripa palm Attalea maripa. They grow naturally in tropical rainforest areas, but they also are being planted and farmed especially to produce more palm oil. Oil palm trees are planted and harvested on more than 15 million hectares (almost 40 million acres) of tropical area around the world – mostly in Indonesia and Malaysia where 86% of all palm oil is

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produced, but increasingly in South and Central America, Africa, as well as other parts of Asia.

Palm oil is naturally reddish in color because of a high betacarotene content. It is not to be confused with palm kernel oil derived from the kernel of the same fruit or coconut oil derived from the kernel of the coconut palm (Cocos nucifera). The differences are in color (raw palm kernel oil lacks carotenoids and is not red), and in saturated fat content: palm mesocarp oil is 49% saturated, while palm kernel oil and coconut oil are 81% and 86% saturated fats,

respectively. However, crude red palm oil that has been refined, bleached and deodorized, a common commodity called RBD palm oil, does not contain carotenoids.

It is the world’s most popular edible oil, and is an ingredient in around 50 per cent of products on Australian supermarket shelves, including food, cosmetics and toiletries, and is also gaining traction in the biofuel industry.

Palm oil’s popularity is due to a longer shelf life than butter and other vegetable oils, and because it’s cheap. Oil palms produce

more vegetable oil per hectare of land than other crops. Dr Emma Keller from the World Wide Fund for Nature (WWF) - a charity that works to protect the planet - told Newsround: “Palm oil is in close to half of the products we buy in the supermarkets - in everything from shampoos and soaps, to pizzas and biscuits. It’s everywhere.”

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How Did This Start?

To understand the crisis it is valuable to look back to 1967.

Then, in order to facilitate access for principally foreign firms to Indonesia’s vast natural resources and thereby generate hard currency, the New Order regime passed a law that designated 70% of the country as state forest.

In one fell swoop this vast area, home to millions, came under the direct control of the government. Under this regime, the government has since been leasing indigenous lands to private companies to clear forest and cultivate palm oil.

The situation grew worse in the years after the fall of the regime in the late 1990s. A programme of decentralisation of power created hundreds of fiefdoms governed by locally elected officials. These bupatis, or regents require cash to fund notoriously costly elections.

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They exercise almost complete control over land allocation and use it to facilitate access for plantation companies, irrespective of environmental criteria or the desires of their electorate.

They also routinely come under investigation by the state’s corruption watchdogs.

In-depth research into the way the government allocates land has revealed a rich vein of criminality in the plantation sector. While legal mechanisms do exist to limit and mitigate the impacts of concessions, they are routinely ignored by companies in an effort to maximise their landholdings.

They are able to do so only because of the complicity of government officials in the first instance, and because enforcement apparatus in the country refuses to bring the law to bear.

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Addressing the political economy This is, then, a problem exploited by the private sector rather than created by it. By extension, the private sector cannot solve it alone.

The zero-deforestation firms would be the first to admit they need regulatory support for their new values to make them sustainable.

For several years, companies setting aside ecologically sensitive areas within their landbanks have seen them reallocated by local governments to other companies.

Without a legal basis for these principles, they cannot be effectively spread across the industry, and even into others.

It is therefore a positive step that the zero-deforestation firms have begun actively engaging the Indonesian government to find ways to embed their progressive principles in law. Several major

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palm oil growers have now signed the Indonesian Palm Oil Pledge, which commits them to lobbying for improved policies.

However, to institute lasting reform, the government must also confront some difficult questions about the corruption involved in land allocation and the absence of law enforcement. There is a risk that improved policies will be fundamentally undermined by the brazen criminality of bupatis and the opaque firms in league with them.

Even more pressing than jailing corrupt officials, Indonesia needs to institute radical transparency in the process of land allocation. We need the chance to identify and preempt damaging and criminal developments before they occur, to give communities the opportunity to make informed economic decisions for themselves.

The palm oil frontier is pushing into increasingly remote areas of southeast Asia and West Africa. In these places, the forests are rich and forestdependent communities are less able to adapt to a life of plantation work.

The need to end the unaccountable and unconstitutional theft of customary forests has never been greater.

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The Impact of Palm oil With the high demand of palm oil, it also causes some impact not only to the environment but also to the socio-economic side.

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Environmental impact Logging and Deforestation One of the main problem with palm oil plantation is the amount of deforestation that happened to Indonesian forests. Since agricultural land is limited, in order to plant monocultures of oil palms, land used for other cultivations or the tropical forest need to be cleared. Of the total logging in Indonesia, up to 80% is reported to be performed illegally. A major environmental threat is then the destruction of rainforests in Indonesia, which was estimated at 0.84 Mha of primary forest per year from 2000 to 2012. From 1990 to 2005, 108,110 square miles of Indonesian forest were taken down from logging, 77% of this forest had never even been touched. WWF Australia estimates around 300 football fields worth of forest are cleared every hour to make way for palm oil production.

Deforestation also makes Indonesia one of the biggest emitters of greenhouse gases.

Carbon Dioxide is released in the atmosphere massively with

the cutting of tropical peatlands, which are carbon sinks, according to Greenpeace. Deforestation is also caused by illegal forest fires to clear land for palm oil plantations. According to WWF for example, in 1997 around 0.81 to 2.57 gigatons of carbon were released by the fires which represented “13-40% of the mean annual global carbon emissions from fossil fuels that year�.

As of 2013, Indonesia ranked number eight among countries worldwide for overall greenhouse gas emissions. According to the World Resources Institute, 65.5% of these greenhouse gas emissions can be attributed to land use change and forestry; the palm oil industry in Indonesia is a major contributing factor towards this trend.

Industrial palm tree plantations also impacts negatively the quality of soils, water and the air because they often rely on the use of agrochemicals products, such as pesticides or fertilizers.

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Environmental impact

Carbon Sinks The drainage, burning, and plantation building on former peat lands releases large quantities of carbon dioxide, so negating their value as socalled ‘carbon sinks’ (stores of carbon).

The carbon sinks “store more carbon per unit area than any other ecosystem in the world”.

One study found that destroying the carbon sink peat bogs in Southeast Asia could release as much carbon as nine years of fossil fuel that is used globally.

Air Pollution Smoke and carbon dioxide are released into the atmosphere when forests are burned to create palm oil plantations. The fires are not easy to put out in remote areas and it affects both animal life and human populations.

A report for the Bank of England, which considered using palm oil in the production of the new £20 note, explained: “Forest fires, started to clear land for oil palm, release high levels of carbon dioxide and black carbon (soot) into the atmosphere, contributing to climate change.”

Burning forests like this was blamed for extreme air pollution levels in Singapore in June 2013, when a thick haze covered the city. Children had to stay inside to protect themselves from the unclean air

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Environmental impact

Soil and Water Pollution

Land Erosion

2.5 metric tons of effluent or liquid waste is made for every metric ton of palm oil that is produced. This effluent affects freshwater furthermore affecting downstream wildlife and humans. Pesticides and fertilizers can further cause issues for downstream water pollution.

A majority of Indonesia’s palm oil plantations are on steep slopes, causing “increased flooding and silt deposits in rivers and ports”.

Repair of infrastructures such as roads and housing are effects of land erosion to local communities.

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Animals Many animals native to Southeast Asia and Indonesia are impacted by the effects of the palm oil industry and deforestation often facing threats of extinction. Deforestation entails a reduction in biodiversity and an alteration of ecosystems which causes the destruction of the habitats of endangered species such as Borneo pygmy elephants, Sumatran elephants, Sumatran tigers, Sumatran rhinoceroses, Malayan sun bear and the various species of orangutan that can be found only on the forests of Borneo and Sumatra. Some of these animals such as the orangutan are arboreal and try to stay in the trees, often being burned alive during slash and burn of forests. Other animals like the orangutans are introduced to new threats as palm oil fields increase in size.

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Social impact

Impacts on local communities The expansion of the palm oil industry is driven by its profitability, and it has the potential to develop new jobs and improve the standards of living of people and small-holders when conducted sustainably. According to the UNDP, there are about 16 million jobs that depend on the palm oil sector.

On the other side, deforestation for oil palm plantation development also endangers indigenous tribes and local communities as it entails the destruction of living spaces or land appropriation. For example, in regions like Kalimantan, the local livelihoods of Dayak communities and their traditions of shifting cultivation, are undermined by the development of palm oil production and monocultures. This often results in human rights violations and confrontation between large-scale producers and local communities whose land is appropriated.

Colchester, for example, found that in 2010, there had been more than 630 land disputes linked to oil palm production in Indonesia

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Social impact

Social Implications The palm oil industry in Indonesia has been shown to have contribute to state revenue, provide employment for people in rural areas, and increase farmers income. However, these benefits only seem to be seen with more experienced plantations and farmers, so the industry tends to favor migrant smallholders rather than the indigenous people. The indigenous people tend to see more negative social impacts such as food insecurity, human rights abuse, land disputes, and disregard for the local environment.

Human Rights The palm oil industry is growing in industry need and output, and palm oil and palmbased ingredients are found in more than 50 percent of common consumer products, from shampoo and lipstick to packaged bread and ice cream. Indonesia is the largest producer of palm oil across the world and is rapidly expanding its plantations and workforce to face a growing global demand.

In attempting to meet this demand, systemic human rights violations are consistently traced to Indonesian palm oil producers, including forced labor and child labor, gender discrimination, and worker exploitation.

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Social impact

Worker Exploitation and Forced Labor While Indonesia has legal requirements regarding hours worked per week and overtime, minimum wages are set by province, and in North Sumatra and Central Kalimantan, the provinces were plantations are located, these minimum wages are insufficient to meet a family’s needs.

Plantation workers are paid using a twopronged system based on time worked and worker output. Workers are given “output targets� and if these targets are met, workers receive their full pay If they are not met, the worker may lose a portion of his salary or annual bonus, regardless of the amount of time worked. These targets are set by individual company and are not regulated. It has also been found that harvesters regularly work longer than the legal limit, often working 10-12 hours a day. The legal limit in Indonesia is 40 hours per week.

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Social impact

Dangerous Working Conditions Pesticide and herbicide use is a common practice among palm oil plantations, including paraquat, an herbicide banned throughout Europe. Personal protective equipment is not always provided to workers.

Some companies in Indonesia do not provide any equipment, while others do not replace the equipment after excessive use. Workers are found to have no knowledge or information regarding the health risks posed by the chemicals they use.

Mental Health Impacts and Health Rights Violations Some companies in Indonesia have been found to test employees’ blood for chemical exposure. Workers will be told if they have “abnormal” blood; however, they do not receive a copy of the results or any further explanation. Workers with such abnormalities are often moved to different tasks without an explanation. This has been found to cause heightened anxiety among plantation workers about their health.

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Gender Discrimination Women are particularly vulnerable to abuses.

In Indonesia, women are often hired under casual arrangements, exempting them from permanent employment, health insurance, pensions, and other social security benefits.

One of women’s main roles on plantations is herbicide, pesticide, and fertilizer application, placing these women at a higher risk for chemical toxicity and other harms.

Women are often unpaid for some of their work, including collecting fruit from the ground during harvests, for they are often also helping their husbands meet their targets to ensure the family receives the husband’s full salary.

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Economy impact

Profit Increase

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According to the Ministry of Environment and Forestry, 8.4 million people are employed in the palm oil industry in Indonesia, from farmers and mill workers to service goods suppliers. That number is likely to rise, with the industry projected to expand by 3 per cent over the next 10 years.

Bambang is the director general of plantations at the Ministry of Environment and Forestry. He shares how, in comparison with other types of farmers, oil palm growers in Indonesia receive a higher salary,

and have a higher than average wage growth. “Oil palm farmer incomes increased from IDR 14 million/hectare/year (US$966) in 2009 to IDR 31 million/hectare/ year (US$2,140) in 2013, while those who produce rice and rubber have only increased from IDR 4.6 million/hectare/year to IDR 7.2 million over the same period,� he says.

Syahrul Fitra is a researcher at non-governmental organisation Auriga Nusantara, which focuses on natural resource conservation.

He believes that Indonesians, especially those in rural areas,

understand that oil palm is an economic commodity and a source of livelihood for many people.

According to Fitra, however, there are still many oil palm growers living in poverty, especially planters who own less than two hectares of land. “The gap in land tenure between companies and planters in this sector is very high,” he says.

Fitra believes that many Indonesian palm oil workers are being exploited. “Wages earned are not reflected by the high work risks, and many do not receive

health insurance, work accident insurance, or pensions. But what worries us more is the use of women and children in the labour force.”

“If managed correctly according to sustainability standards, we support the existence of oil palm plantations as a solution to alleviate poverty in Indonesia,” says Fitra. “But the fact is that they don’t often alleviate poverty.”

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What’s the solution?

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It is believed that the amount of palm oil that people around the world will consume is expected to go up over the coming years. Work is being done to stop palm oil production from damaging the planet.

A group called the Roundtable on Sustainable Palm Oil (RSPO) was formed in 2003 to get those in the palm oil industry to work together to do this. Members of the group, which the WWF help to set up, are given strict guidelines about how they produce their palm oil.

Some manufacturers have said they will only buy palm oil that they know has been produced in a sustainable way - meaning in a way that won’t damage the planet. But many say it is difficult to know for sure whether or not farmers have actually followed the rules.

There has also been a change to make people who are buying things in the supermarket more aware of palm oil.

In the past, labels on food didn’t used to have to say if palm oil had been used as an ingredient. They only had to say ‘contains vegetable oil’. But at the end of 2014, EU labelling laws changed so that products now have to state specifically if they contain palm oil.

Campaigners say that it is difficult when looking at a palm oil product on a shelf to know if the oil has been produced in a way that is damaging the planet or not.

So should we just avoid palm oil completely?

The expert Emma does not think that the solution is to do this. She thinks we should still produce and use palm oil - as it is more efficient to produce than alternative vegetable oils - but do more to make sure that the palm oil being bought and sold is sustainable and certified.

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What can you do to help?

Next time you go shopping read the label! Palm oil is listed under the ingredients so all you have to do is read and not purchase products that contain it. At first this will add some time to your shopping routine, but over time you will remember what brands not to buy from. By taking this little bit of extra time you are sending a message to companies that they need to change their ways. If more people stop supporting companies contributing to deforestation they will become more sustainable to stay in business.

Also be sure to look out for the RSPO symbol on products that use sustainable palm oil. When you buy those products you are sending a message to companies that they are making the right decision by helping the planet.

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Roundtable on Sustainable Palm Oil (RSPO) The Roundtable on Sustainable Palm Oil (RSPO) was created as a lobby group by industry in 2004 following concerns raised by non-governmental organizations about environmental impacts related to palm oil production. The organization has established international standards for sustainable palm oil production. Products containing Certified Sustainable Palm Oil (CSPO) can carry the RSPO trademark. Members of the RSPO include palm oil producers, environmental groups, and manufacturers who use palm oil in their products.

Palm oil growers who produce Certified Sustainable Palm Oil have been critical of the organization because, though they have met RSPO standards and assumed the costs associated with certification, the market demand for certified palm oil remains low. Low market demand has been attributed to the higher cost of Certified Sustainable Palm Oil, leading palm oil buyers to purchase cheaper non-certified palm oil. Palm oil is mostly fungible. In 2011, 12% of palm oil produced was certified “sustainable�, though only half of that had the RSPO label.

Even with such a low proportion being certified, Greenpeace has argued that confectioners are avoiding responsibilities on sustainable palm oil, because it says that RSPO standards fall short of protecting rain forests and reducing greenhouse gases.

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What can you do to help?

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What can you do to help?

Mandatory Labelling Environmental activist groups want consumers to have a choice when buying food containing non-sustainable palm oil. Under current legislation, palm oil can be listed as “vegetable oil” in the ingredients panel, making it almost impossible to know if what a consumer is buying contains the product.

Some companies, like Woolworth’s ‘Select’ brand, do choose to list it as a specific ingredient. The high proportion of saturated fats is also a health concern. Companies involved in RSPO are members. Members using sustainable palm oil in their products are “RSPO certified.”

Globally, 14 per cent of palm oil is now certified by the RSPO, however there are some concerns among palm oil activist groups over the RSPO’s standards of regulation.

Activist groups routinely release lists of companies and products that use palm oil as an ingredient.

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Which Everyday Products Contain Palm Oil?

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You might not cook with it, but you almost certainly eat or use palm oil. Palm oil is the most widely consumed vegetable oil on the planet, found in many packaged products sold in the supermarket.

Below is the list of the products that can be produced using palm oil.

Lipstick

Palm oil is used in lipstick as it holds color well, doesn’t melt at high temperatures, and has a smooth application and virtually no taste.

Pizza

Palm oil is added to both frozen and fresh pizza dough to stop it from sticking together and to enhance texture.

Instant Noodles

Palm oil is up to 20% of the weight of a pack of instant noodles. It’s used to pre-cook the noodles so that all you have to do is add hot water.

Shampoo

Palm oil is used as a conditioning agent that helps restore the natural oils of the hair that are stripped away by most shampoos.

Ice cream

Palm oil makes ice cream smooth and creamy.

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Which everyday products contain palm oil?

Detergent

Palm oil is refined to create soaps, washing powder and other cleaning products.

Margarine

Palm oil is used in margarine because it is solid at room temperature and is free of trans fats.

Chocolate

Palm oil helps create a smooth and shiny appearance in some chocolate and keeps it from melting.

Cookies

Semi-solid at room temperature, palm oil is used to give baked goods a creamy taste and texture.

Biodiesel Soap

Packaged bread 30

Palm oil can be used to produce biodiesel and biofuel.

Palm oil is used for its ability to remove oil and dirt from hair and skin as well to moisturize.

Palm oil is now widely used to make bread because it is solid at room temperature, easy to bake with and inexpensive.

Which everyday products contain palm oil?

However, many products that use palm oil aren’t clearly labeled. Palm oil and its derivatives can appear under many names, including:

Ingredients

Vegetable Oil, Vegetable Fat, Palm Kernel, Palm Kernel Oil, Palm Fruit Oil, Palmate, Palmitate, Palmolein, Glyceryl, Stearate, Stearic Acid, Elaeis Guineensis, Palmitic Acid, Palm Stearine, Palmitoyl Oxostearamide, Palmitoyl Tetrapeptide-3, Sodium Laureth Sulfate, Sodium Lauryl Sulfate, Sodium Kernelate, Sodium Palm Kernelate, Sodium Lauryl Lactylate/ Sulphate, Hyrated Palm Glycerides, Etyl Palmitate, Octyl Palmitate, Palmityl Alcohol

Contained

Palm oil

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Palm Oil is Unavoidable. But It Can Be Sustainable