Like it or Not, Palm Oil is Here to Stay

In recent years, palm oil has been blamed for everything from clear-cut rainforests to homeless orangutans. Consumers are urged to help save ecologically dense rainforests by boycotting products containing palm oil and demand for alternatives. 

But what if the alternatives are even worse? 

 Despite palm oil’s bad reputation amongst vegetable oils, a recent analysis published by the International Union for Conservation of Nature (IUCN), an international organization that promotes conservation and the sustainable use of natural resources, finds that palm oil is here to stay and sustainable practices need to be implemented.

The study conducted by the Palm Oil Task Force analyzes the relationship between increasing deforestation rates driven by palm oil development. The increasingly commercialized palm oil industry has led to the loss of vital animal and plant species that contribute to the functioning of rainforest ecosystems.

The study aims to better inform actors within the palm oil supply chain, ranging from producers, to corporations, of the devastating environmental impacts while also providing insight on how the industry can be made more sustainable.

 Despite its consequences, palm oil is not going anywhere. Global demand for vegetable oils is the fastest growing commodity today. Palm oil demand is expected to grow 1.7% each year until 2050. The study found that demand for palm oil is projected to be especially high for countries with a growing middle class. Urbanization will spur demand for packaged goods, creating a growing market for vegetable oils. Palm oil will play a significant role in meeting these demands, especially in growing Southeast Asian countries, due to its high yields and low cost of production.

The IUCN report mentions a strategy of maximizing yields on existing plantations. Although maximizing yields will help in keeping up with demand, it will also make palm oil more attractive. Higher yields and higher profits can lead to an increase in business interests to expand operations, further threatening tropical forests. Tighter governance protecting rainforests from agricultural uses are needed.

IUCN researchers also advocate for the use of sustainable palm oil instead of opting for alternatives. Alternatives can result in greater losses of biodiversity and rainforest because oils like soy and sunflower require more land. This matters because every minute, over three football fields of the Amazon are lost. Agriculture is the direct driver for 80% of tropical rainforest loss— using vegetable alternatives will only drive up this statistic. 

So, what does sustainable palm oil production look like?

 In the past two decades, there have been several environmental governance initiatives that aim to minimize environmental damage throughout the palm oil supply chain. The Roundtable on Sustainable Palm Oil (RSPO), for example, is a voluntary certification process that holds businesses to sustainable standards. Some standards include no new growing on peatland, no use of fire, and fair wages. Today 19% of all globally traded palm oil is certified by RSPO.  

 Consumer pressure and consciousness can also lead to changes in behavior from businesses. Consumers can apply pressure by purchasing goods that are labeled “RSPO certified” or “Palm Done Right”. Although these certification organizations have been criticized for not being stringent enough, they represent progress by attempting to hold companies accountable and spreading awareness to consumers.

 Protecting our rainforests and the species that live in them is no easy task, especially with the increasing growth in the palm oil industry. These issues demand actions from governments to enact policies and businesses to make informed decisions.

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