SUSTAINABLE PALM OIL MANIFESTO Initiators : Asian Agri IOI Corporation Berhad Kuala Lumpur Kepong Berhad Musim Mas Group Sime Darby Plantation Cargill Unilever Apical Group Wilmar International Greenpeace STEERING COMMITTEE Source: http://www.carbonstockstudy.com/Structure/The-Steering-Committee Note- All Steering Committee Members agreed to: Stop all new plantings on potential HCS areas Implement its principal recommendations HIGH CARBON STOCK STUDY DRAFT SYNTHESIS REPORT Authors: John Raison The Mullion Group, Canberra Philippa Atkinson Independent author, consultant and researcher in Liberia Jerome Chave Laboratoire Evolution et Diversité Biologique, Toulouse Ruth DeFries Columbia University, New York Goh Kah Joo Applied Agricultural Resources Sdn Bhd, Malaysia Hans Joosten University of Greifswald, Greifswald Peter Navratil Remote Sensing Solutions, GmbH, Munich Released for Public Comment 1st June to 31st July 2015 Florian Siegert Ludwig-Maximilians-Universität München, Munich BACKGROUND Agus, et. al., 2013: - Indonesia / Malaysia / Papua New Guinea Land conversion Oil Plam 20% of GHGs Gunarso, et. al., 2013: Natural Forest Oil Palm Development Logging, Forest Fires, and Others - Must be sustainable - Eradicate poverty Degraded Forest Oil Palm Plantations Meet United Nations (2015) sustainable Development Goal PAST / PRESENT APPROACHES Best Management Practices (BMPs) Improved Sustainability of Oil Palm Roundtable for Sustainable Oil Palm (RSPO) Free Prior and informed consent (FPIC) New Players: Indonesian Sustainable Palm Oil (ISPO) Malaysian Sustainable Palm Oil (MSPO) Other Certification Schemes 6 PAST / PRESENT APPROACHES HCS APPROACH – Proposed by GAR/TFT/GP (2012, 2013) - Golden Agri Resources - PT SMART - The Forest Trust - Green Peace Note: - This study aims to conserve as much forests as possible Uses HCS Threshold of 40tC/ha All vegetation that is NOT scrub or grassland should be conserved Used in fragmented forests RECENT DEVELOPMENT ISSUES Roundtable for Sustainable Palm Oil: (RSPO) o Global not for profit o Multi-stakeholders initiative o Transform the oil palm markets by making sustainable palm oil the norm o Over 2000 members RSPO Criterion 5 Estates must regularly report mitigation measures RSPO Criterion 7 New planting must meet criteria o Deforestation and GHG Emissions o No Peat Development o Focus more on conservation OTHER NEW DEVELOPMENTS Indonesian Sustainable Palm Oil (ISPO) Malaysian Sustainable Palm Oil (MSPO) Can they be = RSPO or RSPO+ DEFINITIONS FPIC o Free, prior and informed consent o A community has the right to give OR withhold its consent to a proposed project HCV o High Conservation Value: - Biological, Ecological, Social & Cultural RSPO o Roundtable for Sustainable Palm Oil: - Certified Palm Oil SUSTAINABLE DEVELOPMENT o Developments that meets the needs of the present without compromising the need of future generations FOREST DEFINITIONS Forest definitions differs between agencies: UNFCCC – United Nations Framework Convention on Climate Change o Forest can have very low carbon stock o Young natural stands and all plantations which have yet to reach a crown density of 10-30% OR tree height of 2-5 meters o Areas normally forming part of the forests which are temporarily unstocked due to human intervention or natural causes o Conversion of old growth forest to oil palm is not deforestation. i.e., OK to plant oil palm FAO – Food and Agriculture Organisation Excludes stands of trees established primarily for agricultural production, and oil palm is ‘non-forest plantations’, but rubber wood plantations are OK, but rubber cannot be converted to oil palm CARBON STOCK = BIOMASS Above Ground Vegetation (AGB) Below Ground Vegetation (BGB) (Soil Peat) Total Carbon Stock HCS + looks at Carbon Stock Not Emissions But Potential Emission SOILS: Sandy Soils Deep Peat = <100 tC/ha = Many Thousands tC/ha HCS+ METHODOLOGY o o o o Differs from the GAR / TFT / GP - HCS Approach Does not apply strict definitions of “Forest” Forests can have different carbon stocks Uses Carbon Stock to define plantable areas Approximate range of carbon stocks held in biomass (AGB) and soil carbon (BGB) in tropical forests. HCS+ METHODOLOGY (continued) Provides an approach how to use socio-economic factors when balancing GHG Emissions with local development impacts Example of how changing the threshold for agreed levels of C emissions from biomass and soils can markedly affect the area of land potentially available for development. HCS+ METHODOLOGY (continued) Contrasting relationships between the area of forest land converted, and total GHG emissions. HCS+ METHODOLOGY (continued) o Uses information on potential GHG Emissions o Socio-economic impacts of applying different emission levels o Work with RSPO, who are currently further developing these approaches to GHG Emissions in oil palm sector o Biodiversity NOT fully used, except in forests with high carbon stocks HCS+ METHODOLOGY (continued) o HCS+ only concerned with GHG Emissions within CONCESSION o Does not consider N2O emissions from fertilizers CH4 emissions from processing CO2 emissions from transport Occurs in all plantations Do not help differentiate in choice of land to be developed o Emissions only considered first 25 years cycle o Emissions can be expressed per unit of land area o OR per ton of oil produced If per ton of oil used – productivity of the land is accounted for. Highly productive land may have greater emissions/ha, But lower lower emissions/t oil produced DECISION PROCESS SETTING THRESHOLD FOR CARBON EMISSION FRAMEWORK FOR BALANCING THE CLIMATIC AND SOCIO-ECONOMIC EFFECTS o High Emissions e.g., Peatlands – Regardless of depth o High biomass forests o Off-setting not allowed C stock >230-420tC/ha o o o o Important Socio-benefits Small adverse increase in impact Can be off-set by additional storage of Carbon in forests outside Purchase of Carbon Credits o Degraded land with low Carbon Stock e.g., Grassland / Scrub land Notes: Forests after selective logging contain ⅔ of original Carbon ABG >100tC/ha ABG >100tC/ha = Total Biomass >150tC/ha (includes roots, stumps, fallen logs) Old growth forest = 230-420tC/ha SOCIO-ECONOMICS ASPECTS COMPANIES: o Abide by FPIC process o Ensure equitable benefit/sharing - Access to local communities/amenities - Fair wages/compensation - Pursue favorable models o Develop additional capacity within company All above recommendations apply to all new developments KEY STEPS IN IMPLIMENTING HCS+ METHODOLOGY Map Vegetation/Land use High resolution Remote-Sensing – e.g., Rapid-eye Map/Estimate Above Ground Biomass (ABG) Calibrated-LIDAR (> 0.25ha accuracy) Map soil types Estimate below group Carbon Stock - Terrain/Vegetation/Ground survey/Locate peat/HCS areas Map/Estimate Potential GHG Emission (Soil + Biomass) for making land use decisions Map areas potentially available for conservation under different GHG Thresholds 75 tC AGB, 75 tC BGB, 100 tC ABG Produce refined map indicating land available for development Map of Oil Palm Concession - - Land use cover/Land use Hydrological catchments - Adjacent conservation areas Forest/Agriculture/Roads/Settlements/Infrastructures Map of potential land available for development or retention as forest CRITICAL INPUTS AND PROCESS REQUIRED FOR LAND USE DECISION Note: 1) LIDAR provides accurate estimates of spatial distribution of AGB at a concession sizes of 5,000 – 50,000 ha (Cost: USD 5 – 15/ha) 2) Data Elevation Model (DEM) for slope analysis can be derived form LIDAR - Drainage pattern - Erosion risk and etc. OVERVIEW AND COST OF REMOTE SENSING PRODUCTS Overview Cost IMPLICATIONS FOR MALAYSIA 1) No new areas of peat can be developed. Question: Why are temperate peats being used/mined ? 2) All proposed development MUST follow the HCS+ plan. Plan looks at Carbon Stocks to determine if an area can be developed to oil palm. 3) Exercise will be costly as LIDAR Technology/Soil mapping must be done. Question: Do we have to use foreign experts to do this? Can Government/Remote Sensing Institute/MPOB provide this data free/discounted rate to Malaysian Estates ? Question: Does this exercise infringe on National Security ? Carbon Stock does not reflect Emissions. 4) Malaysia already agreed to keep the 50% Forests we have. Holland has 10% of forest Why not these countries U.K. has 20% of forest reforest to 50% also ? 5) Malaysia/Indonesia should ban buying of Carbon Credits by developed nations. MORE QUESTIONS IPCC Global Threshold of 40tC/ha unfair to Tropical Countries Stephens, et. al., (1984) Estimate that a subsidence rate of 3cm/year in the Everglades should be equal to 8 cm/year in Tropics due to different temperature. i.e., Subsidence rate hence GHG Measurements. (Low) Boreal/Temperate Tropics (High) 2.7 times higher 1) Tropical Countries (hot throughout the year) - Give out more CO2/ha/yr compared to temperate countries - Replace the Carbon Stock faster than temperate countries Paramananthan. S., 2005 2) 75 tC/ha Carbon Stock How much GHG Emission. MORE QUESTIONS Vegetable Oil Demand 3) Soybean/Rapeseed/Sunflowers produce 0.6 – 1t oil/ha/yr Oil Palm 4 – 6t oil/ha/yr What happens when in 2050 World population reaches 9.0 Billion, We need additional 29 Million ton /year (12kg Vegetable oil per head) To produce this we require: Oil Palm: Current yield 8 million ha of new planting Best Yields 5.8 million ha Rapeseed: Soybean: 50 million ha 75 million ha CASE FOR SARAWAK Chief Minister o No new approvals for logging and plantations o Land already alienated mostly NCR land o No more new land alienation in peat areas o Existing alienated land can be planted o Peninsula/Sabah and Sarawak – Malaysia will NOT having new alienation on peat o HCS Study no longer applicable in Malaysia CONCLUSIONS o Default values for tropics should be 2.7 times that for temperate areas o Cut-off of 75 tC/ha is too low for tropics o Will be expensive for companies to do study, unless Government helps o Land is STATE matter, and Federal Government has little say – can only recommend o Malaysia has committed to retain our 50% forests o Temperate/Developed countries should do the same (retain 50% of forest) o New peat classification MSPO’s implication o What do we do in 2050 Oil Palm Rapeseed Soybean THANK YOU