Tackling the problem of palm oil
Until the 1960s, the cultivation of palm oil trees was largely limited to West Africa.
By the early 1990s, palm oil had been transformed from a commodity barely traded on the international market to a lucrative agribusiness sector, grown on industrial plantations in the tropics and supplying an insatiable global demand.
Today, it is a phenomenally successful commodity, particularly in the food manufacturing industry. In 2018, according to the United States Department of Agriculture (USDA), the EU consumed seven million tonnes of palm oil.
Palm oil is an extremely versatile ingredient now found in literally thousands of products, ranging from soaps and cosmetics to foodstuffs; it’s in everything from pizzas, chocolate and ice cream to lipsticks, soap and shampoo.
According to estimates, 50 per cent of products on our supermarket shelves contain palm oil or palm kernel oil in some form, where it might be labelled as vegetable oil, vegetable fat, palm kernel, palm kernel oil, palmate or a variety of other aliases.
The growth of the palm oil business in Indonesia
Palm oil plantations have caused devastating levels of deforestation in Indonesia
EIA’s work to combat deforestation due to the palm oil industry is focused on Indonesia. The country is currently the largest producer and exporter of palm oil worldwide. Here, the palm oil industry has grown at a dizzying rate.
In 2000, palm oil plantations covered around four million hectares of the country. By 2018, official figures from the Indonesian Government revealed that plantations took up 14 million hectares, although palm oil industry watchdog Sawit Watch estimates the figure to be much higher – nearer 21 million hectares.
Why is palm oil bad for the environment and for society?
Palm oil’s success comes at a high cost. In Indonesia, as in other countries where palm oil is an important crop, the industry is widely linked to deforestation, illegal logging, forest fires, biodiversity loss and human rights abuses.
- Deforestation: replacing natural forests with palm oil plantations
The tropical rainforests of Indonesia are ‘natural forests’, made up of a wide variety of different native trees that have taken many years to become established. They sequester and hold carbon from the atmosphere, helping to mitigate climate change.
One hectare of land converted from rainforest into an oil palm plantation equates to a loss of 174 tonnes of carbon.
"The quantity of carbon released when just one hectare of forest is cleared to grow oil palms is roughly equivalent to the amount of carbon produced by 530 people flying from Geneva to New York in economy class," says Thomas Guillaume, lead author of a study on the environmental impact of oil palm cultivation in Indonesia.
- Illegal logging: plantations open the way for illicit timber
The conversion of rich forests to make way for oil palm plantations has driven a wave of illegal logging in Indonesia, as we demonstrated in our 2014 report Permitting Crime: How palm oil expansion drives illegal logging in Indonesia.
The unprecedented growth of plantations has been characterised by illegality. Successive attempts to bring order to land acquisition practices and deforestation have been undermined by a combination of corruption and incompetence. This has driven rates of deforestation in Indonesia to become some of the highest in the world.
- Forest fires: releasing carbon and a threat to life
In Indonesia, peat-rich forests are drained to make space for palm oil plantations. The remaining peatland is highly flammable and fires can last for weeks. Fires can start accidentally during the dry season; however, many are also set deliberately to clear the ground for plantations.
As we have reported, forest fires seriously exacerbate the effects of climate change. They threaten wildlife within the forest and lead to an average of 36,000 premature deaths a year in the human populations across Indonesia, Singapore and Malaysia.
- Biodiversity loss: sweeping away vital habitats for plants and wildlife
The tropical rainforests of Indonesia are biodiversity hotspots that provide vital habitats for a vast range of plants and wildlife, many of which are only found in that region.
A single hectare of tropical rainforest in Indonesia contains over 200 plant species.
Endangered wildlife reliant on the tropical rainforest include Sumatran tigers, rhinos and orangutans. When the rainforest is cleared to make way for palm oil plantations, their home disappears.
Our 1998 report The Politics of Extinction: The Orangutan Crisis, the Destruction of Indonesia’s Forests, revealed how widespread deforestation had already destroyed more than 80 per cent of orangutans’ forest habitat.
- Human rights abuses: appropriating land and committing violence
Human rights violations are all too common in the palm oil sector, from appropriating local communities’ land to unfair working conditions, child labour, violence, rape and other crimes.
In 2019, Sarah Agustio, from our Indonesian partner Kaoem Telapak, reported:
In this land-greedy and capital-intensive palm oil plantations industry, human rights problems are not only limited to encroachment but violence, criminalisation, shooting and intimidation. The human rights aspects are broad and fundamental.
Our work to combat palm oil deforestation
For more than two decades, EIA has worked tenaciously to combat the devastating environmental and social impacts of the palm oil industry in Indonesia.
Our focus includes highlighting widespread illegality in palm oil plantations in Indonesia and triggering formal grievance or law enforcement mechanisms where possible. We also help to strengthen national laws and palm oil production standards in Indonesia, including the Indonesian Sustainable Palm Oil (ISPO) Government certification scheme.
Holding the RSPO to account
The Roundtable on Sustainable Palm Oil (RSPO) is an industry body with a mission to reassure consumers that palm oil bearing its certificate of approval is free from links with primary forest destruction, damage to endangered species’ habitats or abuses of the rights of indigenous peoples and communities.
Our first Who Watches the Watchmen? (2015) report revealed major flaws in the system of scrutiny which underpins the RSPO’s guarantee of sustainable production.
In 2019, we followed up with Who Watches the Watchmen? 2,
which detailed the continuing incompetence of the RSPO’s assurance systems.
Our investigations established a catalogue of failures within the RSPO certification system meant to assure consumers that all palm oil bearing its stamp of approval is free from destructive impacts. It accused the RSPO of effectively giving false environmental credibility to its products, commonly known as ‘greenwashing’.
The RSPO initially claimed that our report contained “glaring inaccuracies”. However, it has now pledged to investigate our allegations.
Through our research and undercover operations, we have compiled many detailed reports on forest and other environmental crimes across Indonesia related to the palm oil industry.
In 2009, our Up for Grabs: Deforestation and exploitation in Papua’s plantations boom report argued that Indonesia’s policy on plantations posed a greater threat to Papua’s forests than illegal logging. Through field investigations carried out in conjunction with our partner, Telapak, we revealed that indigenous Papuan communities were being enticed, tricked and sometimes coerced into releasing large swathes of forested land to powerful conglomerates, backed by overseas investors and facilitated by central and provincial governments.
In 2014, we revealed how the clear-cutting of forests to make way for palm oil plantations was driving illegal logging in Indonesia. The Permitting Crime: How palm oil expansion drives illegal logging in Indonesia report showed how a widespread culture of corruption and poor law enforcement was generating a flood of illicit timber as plantations surged into frontier forests. It included in-depth case studies of blatant violations of licensing procedures and other laws in Central Kalimantan, a hotspot for forest crime.
In 2017, we followed up with Still Permitting Crime, a joint report with our partner, JPIK, the Independent Forest Monitoring Network. This revealed how an illegal palm oil plantation was continuing to clear forests with impunity.
In markets which consume palm oil, we are working to enhance the EU’s pledged initiative on deforestation and forest degradation and we monitor company compliance with new trade policies, seeking enforcement where justified.
Finally, we’re continuing to lobby the EU to introduce regulatory measures to reduce the deforestation footprint of the commodities placed on its market, including palm oil. Our In Our Palms: Ensuring ‘no deforestation’ in EU commodity supply chains (2018) briefing argued that existing methods to alleviate the negative environmental and social impacts of palm oil, such as certification schemes, have failed to stop deforestation sufficiently to qualify as ‘sustainability’.