The Palm Oil

Oil palm, Elaeis guineensis, was introduced to Malaya in 1870 from West Africa. This hardy crop starts bearing fruit within 2 1/2 to 3 years and keeps bearing fruit for up to 25 years, making it the longest yielding crop in the world.

The fleshy outer layer produces crude palm oil and the seed yields palm kernel oil.

Palm oil is used in a variety of industries from the commercial manufacturing of food and beauty products to the manufacturing of non-food products.
Showing posts with label environmental. Show all posts
Showing posts with label environmental. Show all posts

Sunday, April 24, 2011

RSPO: Labeling Palm Oil As An Ingredient Is Fine, Provided Other Oils Are Labeled Too

22/04/2011 (Mongabay.com) - The Roundtable on Sustainable Palm Oil (RSPO), a body that sets criteria for social and environmental certification of palm oil, weighed in on the debate over Australia's proposal to require listing of palm oil as an ingredient on package labels. At the same time, the RSPO announced its own labeling initiative to distinguish products that use RSPO-certified palm oil from those that do not.

Darrel Webber, Secretary General of the RSPO, said that if the purpose of the bill is to encourage the adoption of "greener" palm oil, rather than discourage use of all palm oil, the RSPO supports the bill. But he added truth-in-labeling should apply to all vegetable oils.

"Distinguishing palm oil as the only edible oil that requires labeling implies that other edible oils do not face similar challenges," Webber said in a statement. "RSPO takes a strong view against this supposition as issues surrounding environmental destruction, social concerns and wildlife conservation are prevalent across the board with cultivation of any type of monoculture crops."

"Further to this, such a labeling exercise that singles out palm oil may only serve to ostracize agricultural farmers in developing countries such as Indonesia, Malaysia, Papua New Guinea, South America, West Africa, etc. whose key source of income comes from palm oil. These smallholders need to be educated, guided, encouraged and inspired to adopt sustainable standards and solutions, rather than have their livelihoods affected. RSPO certification program aims to support smallholders in this light."

Webber added that if the bill causes a shift away from palm oil, the vegetable oils that replace it would also need to be evaluated on their social and environmental performance. As the world's highest yielding oilseed, palm oil produces more oil per unit of area than any other crop. As such the palm oil industry argues its crop requires less land to produce the same amount of oil as canola/rapeseed, soy, coconut, and corn.

"The long term repercussion of this proposed Bill may decrease the demand for palm oil but will not eliminate the key reasons this proposal is aimed at addressing in the first place," he said. "This is because edible oil is a key ingredient in most consumer products. Demand would merely shift to other vegetable oils, increasing the sustainability problems connected to these other particular crops."

Webber took the opportunity to announce the RSPO trademark, which will be used on product packaging and labels which contain RSPO Certified Sustainable Palm Oil (CSPO). The label will be available later this year.

"The trademark will enable consumers to confirm very quickly that the products they buy contribute to sustainable production of palm oil," said the RSPO statement. "The trademark logo could end up on the packaging of thousands of consumer products worldwide."

Up to half of packaged products in some markets contain palm oil.

RSPO also announced record production of certified palm oil, which reached 4.7 million metric tons in the year to date, up from 2.8 million tons for all of 2010.

The RSPO

RSPO was formed in 2004 as a response to concern from environmentalists who maintain that oil palm production has driven large-scale destruction of rainforests across southeast Asia over the past two decades, triggering the release of billions of tons of carbon dioxide emissions and imperiling rare species, including the Sumatran tiger and the orangutan. RSPO has created a set of criteria to make palm oil production less damaging to the environment and local communities. These include using natural pests and composting in place of synthetic pesticides and fertilizers whenever possible, implementing no burn policies, sparing high conservation value forests from development, taking measures to reduce air pollution, and creating catchment ponds to prevent palm oil mill effluent from entering waterways where it would damage aquatic habitats. The hope is that CSPO can be sold at a premium to recoup the increased costs that certification entails.

RSPO has at times been criticized for being slow to act when members are found to be operating in violation of productions standards, but the body has recently rebuked IOI Group, a Malaysian producer, and Golden Agri Resources (GAR), a Singapore-based firm, for social and environmental transgressions. GAR has since taken steps to come back into compliance, including establishing a new forest policy.

The RSPO
Unmasking The Rountable of Sustainable Palm Oil: Principle and Criteria of RSPO in the GroundCase Studies in Sustainability Management and StrategyAgrofuels in the AmericasOrganogenesis in Development, Volume 90 (Current Topics in Developmental Biology)Green Gone Wrong: How Our Economy Is Undermining the Environmental RevolutionAgrarian Angst and Rural Resistance in Contemporary Southeast Asia (Routledge ISS Studies in Rural Livelihoods)Making Sustainability Work: Best Practices in Managing and Measuring Corporate Social, Environmental and Economic Impacts (Business)Making Healthy Places: Designing and Building for Health, Well-being, and Sustainability

Tuesday, April 19, 2011

World Bank Group Adopts New Approach For Investment In Palm Oil Sector

11/04/2011 (MMD Newswire) - The World Bank Group today announced the adoption of a World Bank Group Framework and IFC Strategy to guide future engagement in the global palm oil sector. The new framework and strategy were developed following extensive consultations with a wide range of stakeholders including environmental and social NGOs, farmers, indigenous communities, private sector companies, and governments.

Feedback received affirmed that, when guided by rigorous environmental and social protections, the palm oil sector can be an important contributor to economic development and poverty reduction.

"Throughout the consultations," said Rachel Kyte, IFC Vice President for Business Advisory Services, "many voices in the private, public, and civil sectors recognized the potential of the palm oil production to contribute to poverty reduction when good environmental and social practices are followed. Stakeholders look to the World Bank Group to support a new model for financing in the sector to benefit the poor and protect the environment. This is what we have committed to do."

Palm oil is produced by and employs over six million rural poor worldwide. Small farmers dominate production and continue to enter the industry in increasing numbers. Some 70 percent of palm oil production is used as staple cooking oil by poor households in Asia and Africa.

"Even though the World Bank is a small player in the palm oil sector," said Inger Andersen, World Bank Vice President for Sustainable Development, "we can make a contribution to strengthening the sector's sustainability. Our focus on supporting small farmers and improving productivity - particularly that of degraded plantations - can help poor rural communities benefit while also helping the environment."

Stakeholder consultations, held around the world over the last year, focused on a range of social and environmental issues facing the palm oil sector and the role the World Bank Group could play to address them. The consultations helped to shape key areas of focus for Bank Group engagement in the sector, including:

* regulatory and governance reforms;

* responsible private investments;

* improved benefit sharing with smallholders and communities; and

* development and widespread adoption of environmentally and socially sustainable standards and codes of practice.

The World Bank Group Framework and IFC Strategy for Engagement in the Palm Oil Sector will give priority to institutional and market initiatives that support smallholders and foster benefit sharing with rural communities. This will take place by helping to strengthen smallholder producer organizations, promoting their access to finance and markets, improving their agronomy practices and productivity, and fostering fair contractual arrangements with larger companies.

To help protect forests and biodiversity and to move palm oil expansion from forested areas and peat lands, the Bank Group will give priority to initiatives that encourage production on degraded lands and seek to improve productivity of existing plantations.

The new approach also includes new analytical "tools", such as a joint World Bank-IFC Country Situation Analysis and IFC's Risk Screening and Assessment procedure. This will enable an assessment of key opportunities and risks, particularly around the issues of land use and acquisition, governance, community concerns, and working conditions. These tools will guide the Group's decisions on whether to engage, the level of appropriate engagements, and measures to avoid or reduce potential risks.

In order to develop the new engagement approach, the World Bank Group suspended its new investments in the palm oil sector in September, 2009 to review lessons learned and to consult with stakeholders. With the adoption of the new Framework and Strategy, it is now lifting that suspension.

The World Bank Group 
The World Bank Group's Response to the Global Economic Crisis: Phase I (Independent Evaluation Group Studies)Climate Change and the World Bank Group: Phase II - the Challenge of Low-carbon Development (Independent Evaluation Group Studies)The Road to Sustained Growth in Jamaica (World Bank Country Study)The Money Lenders (Institutional: HS/Libraries/Community Groups)The IMF, The World Bank Group And The Question Of Human RightsEnvironmental Sustainability: An Evaluation of World Bank GroupImproving Investment Climates: An Evaluation of World Bank Group Assistance (Operations Evaluation Studies) (World Bank Independent Evaluation Group)