PALM OIL HAS SAVED THE WORLD FROM AN ECOLOGICAL DISASTER

During my recent visit to India to join the annual Globoil conference, I met with high-level delegations from Indonesia, Malaysia and India, led by the respective ministers. Moreover we visited farmers and grassroots organizations deeply rooted in the palm oil sector – these visits triggered me to review my understanding of realities. Being a good listener to local stakeholders Solidaridad could take steps to bring our global partnerships to the next level.

Time for disruptive thinking: palm oil as avoided deforestation

Imagine a world where the need for affordable vegetable oil was covered by rapeseed, soybean or sunflower oil from the moderate climate zones. Or by another less productive vegetable oil variety from the tropics, like the palm tree. These low productivity crops would have created an ecological disaster of an unimaginable size. 

Productivity data reveal that oil palm is the most efficient crop in converting solar energy into vegetable oil.

In fact, it is 8-10 times more productive per hectare of land than other vegetable oils. With less land, palm oil producers can produce significantly more than their competitors.

Source: Oil World (2008) Oil World Statistic ISTA Mielke GmBh Hamburg

For sure, palm oil production has damaged forest landscapes. But at the same time, it has saved many forest areas. For alternative crops the land seizure would have been much bigger, and the loss of biodiversity and forests much greater. 

A proud farmer told me “palm oil has saved the world from an ecological disaster.” I immediately understood that there was some truth in his disruptive thinking. Farmers’ wisdom can help you to demystify the rhetoric of dark green campaigners and dominant thinking, which sees palm oil as the main driver of deforestation. 

Time for building stronger partnerships: national frameworks in the lead

The main reason for my trip to Mumbai was to mark the next step in deepening the cooperation between the Indonesian and the Malaysian governments – as the main producers – and the Indian palm oil sector – as a major client – in the promotion of sustainable palm oil production and trade between their markets. 

Signing an ambitious Memorandum of Understanding (MoU) will bring this cooperation to the next level. The MoU seeks to promote sustainable production and consumption in Malaysia and India using domestic standards. It is a movement that Solidaridad appreciates and seeks to support as it makes sustainability a locally-owned agenda rather than something that has, in the past, been perceived as a ‘Western agenda’.

National frameworks like Indonesian Sustainable Palm Oil (ISPO), Malaysian Sustainable Palm Oil (MSPO) and the Indian Palm Oil Sustainability Framework (IPOS) have for a long time been ignored, or even denied a voice, by the international community. However, these national frameworks have the potential to bring speed and scale to the transformation process for a more sustainable palm oil economy by raising the floor, instead of raising the bar.

Working together is more inclusive and involves even those independent smallholder farmers whose supply is not linked to the Western companies who demand certified palm oil. 

Moreover, it places the responsibility where it belongs. Namely with the governments operating from their democratic mandates. I have witnessed that producer and sector organizations are pushing governments at different levels to offer ‘good governance’ – doing the right things at the right time. Global sustainability specialist organizations like Solidaridad need to engage and support these initiatives to be even more effective.

Time to overcome polarization: the EU ban has done a lot of damage

Greenpeace campaigns blocking palm oil cargo from arriving in European harbours and pressurizing the EU institutions to ban palm oil for biofuels have done a lot of damage to the reputation of the crop, and the relations between Europe and Asia. In my opinion, East-West polarization will not bring any solutions, nor joined efforts.

In reality, the EU resolution to ban palm oil for biodiesel by 2030 is an example of the greenwashing of politics. Market realities are more important to understand the real world. The market reality is that Europe has set ambitious targets for the electrification of traffic. 2020 will be the year that a broad spectrum of electric cars is introduced; moving electrification from niche to mainstream. This process will phase out gasoline and diesel engines and, consequently, biodiesel. In other words, the EU ban on palm oil by 2030 is not relevant and for this reason, there was majority support; biodiesel will be phased out in any case. 

Electrification is the winning game and for good reasons; cleaner cities and lower carbon emissions.

So I advised our Asian partners not to play the losing game, linking palm oil to the old economy for fossil fuels. Palm oil is a plant-based product. For this reason, it clearly deserves a place in the new economy, moving to plant-based food and showing growth in luxury products like shampoos and cosmetics. When you are in the wrong corner, you will suffer, and changing the narrative will be costly. 

Some voices advocate a ‘trade war’ to avenge the ban on palm oil. Cancelling an Airbus order in favor of Boeing airplanes, for example. In my view, trade wars are counterproductive. We already see too much of this. Renewed respect and collaboration are a better route. Ministers of Indonesia heard my advice – perhaps they will listen.

Time for nuance: standing up to false marketing

After my return home, while I was doing my Saturday morning shopping, I saw a new item on the shelves of my supermarket. A new margarine with a loud, provocative message: ‘Eat plants not palm please’ – the start of a new phase in the political branding of products. So-called ‘palm oil free’ products are already well known in the marketplace. The next step turns out to be an even more proactive ‘anti-palm oil’ branding. On the trendy packaging, there’s a ‘no palm’ sticker and ‘spread your sandwich without palm oil’ statements underline the core message. Shea butter from the Savanna is the branded ingredient, while in fact the major part of the vegetable oil component is sunflower oil from European sources. 

The slogan: ‘Eat plants not palm’ is a factual contradiction. Palm oil is from the fruit of a plant, called a palm tree. This marketing strategy may help the introduction of a new product in an overfed market but, in essence, works against millions of farmers trying to escape from poverty. Not only in Asia, but also farmers in the Andes region who have switched from coffee to palm crops in an attempt to escape persistently low coffee prices. Or farmers in West Africa who are suffering from low returns on cocoa cultivation. 

The trendy packaging of a new palm oil-free margarine suggest you ‘butter your bread without palm oil’.

Three world biomes of eminent importance for saving the planet

History shows that, unfortunately, deforestation was a habitual process and part of development practice in every country. Mainland Europe experienced deforestation before the 1500s. Deforestation in North America mainly took place in the 1620-1920 period. In the (semi-) tropical regions of Africa, Latin America and Asia deforestation has increased since the 1980s, in the name of development and in response to population growth. 

Urbanization, infrastructure, the development of grazing areas, and the growing of sugarcane, soy and palm are seen as the main causes of global deforestation. After centuries of widespread deforestation, the world’s population is facing a critical situation having only three biomes left: the Amazon, the Congo Basin, and the tropical forest of the Asian archipelago. These three remaining forest areas are defined as the lungs of the world and are the stabilizers of global climate. If we lose these vital functions, the world’s climate will be destroyed, perhaps creating irreversible damage. 

From a regional perspective, the preservation of forests can be seen as a lost opportunity, ‘just doing the same as has already been done elsewhere’. From a global perspective, the loss of the last three biomes would be irresponsible and affect us all. 

This dilemma can only be solved by payments from the international community for the ecological services delivered by the last rare biomes and/or the development of agroforestry systems creating a new business case, generating green jobs while maintaining the forest. Without this type of solution, the pressure on forests will continue in spite of all efforts made. 

Palm oil farmers can be part of the solution to save the forests – they can act as custodians, safeguarding these precious environments. As an international community, we will have to reward the growers for these efforts. 

Let’s continue to distinguish myth from fact, and join hands to find common solutions. 

Read more about palm oil in one of my earlier articles.