Expanding Sustainable Palm Oil Production: RSPO's Focus on Asia's Developing Economies
The Roundtable on Sustainable Palm Oil (RSPO), a global organization committed to promoting sustainable palm oil production, has been active for two decades. With over 6,000 members, including palm oil growers, buyers, investors, and non-governmental organizations, RSPO has made significant strides in its mission.
Recently, RSPO's President, D'Cruz, addressed the state of sustainability in key palm oil markets. While he did not specify a timeline or goals for achieving sustainability in India, he emphasized that the conversation about sustainability is indeed happening in the country.
In Europe, over 90% of the imported palm oil is now RSPO-certified, a testament to the demand for sustainable palm oil in the region. This demand is primarily driven by Europe and North America. However, in contrast, only 9% and 3% of palm oil entering China and India, respectively, have been certified under RSPO's scheme. Certified sustainable palm oil uptake is growing steadily in China, with notable partnerships such as China's largest dairy producer Yili partnering with Yihai Kerry to bring in the nation's first shipment of sustainable palm oil from a single identifiable RSPO-certified source.
D'Cruz mentioned that significant change to improve sustainability in large producer markets like Indonesia and Malaysia will require national standards to be in place. RSPO is currently working with the provincial government in Indonesia to obtain Indonesian Sustainable Palm Oil (ISPO) certification for smallholders in Jambi.
RSPO's objective is not solely focused on certification as a tool, but rather on the sustainability of the industry as a whole. Under the EU Deforestation Regulation (EUDR), RSPO credits will not be recognized. This underscores the need for a comprehensive approach to sustainability, going beyond certification alone.
Price sensitivities have been a key limiting factor for the uptake of RSPO-certified palm oil in emerging markets. D'Cruz stated that RSPO's role is not to market a subset of products, but to convince the entire industry to become more sustainable. Since 2008, over 16 million metric tonnes of palm oil have been given RSPO's stamp of approval.
However, RSPO has not set specific targets for sustainable palm oil uptake in China and India due to the complexity of doing so. D'Cruz did not express an expectation for RSPO-certified palm oil to exceed 20% of global volumes. He also did not specify whether RSPO will continue to engage with countries outside of Indonesia and Malaysia for sustainability initiatives.
Despite these challenges, D'Cruz emphasized that RSPO will need to double down efforts in large producer markets that are also large consumption markets, such as Indonesia and Malaysia. As the world continues to grapple with the environmental impact of palm oil production, the work of organizations like RSPO remains crucial in driving towards a more sustainable future.
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