The Palm Oil Action Group Volunteer Pack The Palm Oil Action Group (POAG) Volunteer Pack This pack includes: • Why do we care? • About POAG • What you can do to help • Letter to the Minister for the Environment, Heritage and the Arts, Tony Burke • Letter to the Minister for Health and Ageing, Nicola Roxon • Letter to Food Standards Safety Australia and New Zealand (FSANZ) • Letter to the Indonesian Ambassador, Primo Alui Joelliant • Letter to the Minister for Foreign Affairs, Kevin Rudd • Letter to Coles • Letter to Woolworths • Palm Oil Fact Sheet • Palm Oil Stickers • POAG poster 1) Why do we care? Despite palm oil’s potential to become a “major source of sustainable and renewable raw material for the world’s food, oleochemical and biofuel industries”1, its production has resulted in mass deforestation, social upheaval and the near extinction of several animal species.2 These endangered species include the Sumatran tiger (Panthera tigris sumatrae)3, the Sumatran Orang-­‐utan (Pongo abelii) and the Bornean Orang-­‐utan (Pongo pygmaeus)4 (Figure 1). Indonesia has the second highest rate of deforestation in the world.5 Between 1990 and 2000, 1.3 million ha of forest was lost every year.6 Between 2000 and 2005 this rate accelerated to 1.8 million ha per year, representing a 2% annual deforestation rate.7 Yusof Basiron, ‘Palm oil Production through Sustainable Plantations’ (2007) 109 European Journal of Lipid Science and Technology 289. 2 K.T. Tan, K.T. Lee, A.R. Mohamed, S. Bhatia, ‘Palm oil: Addressing issues and towards sustainable development’ (2009) 13 Renewable and Sustainable Energy Reviews 420. 3 Eyes on the Forest, Asia Pulp & Paper/ Sinar Mas Group Threatens Senepis Forest, Sumatran Tiger Habitat, and Global Climate: Investigative Report’ (2008) Available at www.eyesontheforest.or.id. 4 Craig Hilton-­‐Taylor, The International Union for Conservation of Nature (IUCN) Red List of Threatened Species (2002) < www.iucnredlist.org> accessed 2 October 2009. 5 Muhammad Zikri, ‘An Economic Model for Deforestation in Indonesia’ Working Paper in Economics and Development Studies (2009). 6 Muhammad Zikri, ‘An Economic Model for Deforestation in Indonesia’ Working Paper in Economics and Development Studies (2009). 7 Indonesia Forest Figures (2006) Mongabay. Come <http://rainforests.mongabay.com/20indonesia.htm>accessed 29 July 2010. 1
1 The Palm Oil Action Group Volunteer Pack A report published by the United Nations Environment Programme (UNEP) in 2007 stated that palm oil plantations are currently the leading cause of rainforest destruction in Malaysia and Indonesia.8 THE SUMATRAN TIGER The loss of the Bali Tiger (Panthera tigris balica) in the 1940s and the Java Tiger (Panthera tigris sondaica) in the 1980s has been largely attributed to human-­‐
induced habitat fragmentation.9 The Sumatran Tiger is currently facing a similar fate due to the expansion of palm oil plantations, listed as critically endangered on the International Union for Conservation of Nature (IUCN) Red list.10 The species inhabits approximately 58,321 km² of forested habitat in 12 ‘Tiger Conservation Landscapes’ totalling 88,351 km².11 In 2004, the Sumatran tiger population was estimated at 400 to 500 in the Indonesian government’s first and second national tiger action plans. 12 THE SUMATRAN ORANGUTAN The Sumatran Orang-­‐utan is also listed as critically endangered on the IUCN Red list.13 There are currently around 7,300 occupying 20,552 km² of forest.14 THE BORNEAN ORANGUTAN The Bornean Orang-­‐utan is listed as endangered on the IUCN Red list, with estimates of between 45,000 and 69,000 individuals, living in 86,000 km² of suitable habitat.15 The Bornean Orang-­‐utan populations have declined by over 50% in the last 60 years due to agricultural expansion and human induced fires.16 The decline of the species is predicted to continue at this rate.17 It has been estimated that approximately 1000 Orang-­‐utans die every year due to habitat degradation, forest fires, illegal logging, encroachment and mining.18 Degradation of the Orang-­‐utans natural habitat often forces them into unsuitable forest, resulting in higher death rates and fewer birth rates.19 On the occasion that they refuse to leave their former territory, they are often killed by farmers protecting newly planted crops.20 G Nellerman, L Miles, BP Kalternborn, M Virtue, H Ahlenius (Eds) The Last Stand of the Orang-­utan-­ State of Emergency: Illegal Logging, Fire, Palm Oil in Indonesia’s National Parks (2007). 9 Linkie, M. and Martyr, D.J and Holden, J and Yanuar, A and Hartana, A.T and Sugardjito, J and Leader-­‐Williams, N. (2003) Habitat destruction and poaching threaten the Sumatran tiger in Kerinci Seblat National Park, Sumatra. Oryx, 37 (1). pp. 41-­‐48. 10 Linkie, M., Wibisono, H.T., Martyr, D.J. & Sunarto, S. 2008. Panthera tigris ssp. sumatrae. In: IUCN 2010. IUCN Red List of Threatened Species. Version 2010.1. <www.iucnredlist.org>. accessed 28 June 2010. 11
Government of Indonesia. 2007a. Conservation Strategy and Action Plan of Sumatran Tiger 2007-­‐2017 (in Bahasa Indonesia). 12
C. R., Shepherd, and N, Magnus., Nowhere to hide: The Trade in Sumatran Tiger (2004) A TRAFFIC Southeast Asia Report. 13 Singleton, I., Wich, S.A. & Griffiths, M. 2008. Pongo abelii. In: IUCN 2010. IUCN Red List of Threatened Species. Version 2010.1. <www.iucnredlist.org>. accessed 28 June 2010. 14 Ibid. 15 Ancrenaz, M., Marshall, A., Goossens, B., van Schaik, C., Sugardjito, J., Gumal, M. & Wich, S. 2008. Pongo pygmaeus. In: IUCN 2010. IUCN Red List of Threatened Species. Version 2010.1. <www.iucnredlist.org>. Downloaded on 28 June 2010. 16 Ibid. 17 Ibid. 18 Speech by Sen Nick Xenophon on the 23rd of November 2009. 19 K.T. Tan, K.T. Lee, A.R. Mohamed, S. Bhatia, ‘Palm oil: Addressing issues and towards sustainable development’ (2009) 13 Renewable and Sustainable Energy Reviews 420. 20 Ibid. 8
2 The Palm Oil Action Group Volunteer Pack Figure 1. A Sumatran Orang-­‐utan with a tranquilizer dart in its side in order for rangers to relocate him to a different part of Borneo island, away from this palm oil plantation. Photo was taken on November 19, 2008. (AFP/AFP/Getty Images). Source: http://animal.kukuchew.com/category/orangutans/ In 2007, the United Nations Environment Program (UNEP) predicted that if current trends continue, Orang-­utans will be extinct in the wild within two decades (Figure 2).21 Figure 2. Changes in Orang-­‐utan distribution from 1930-­‐2004. Source: C,Nelleman., L, Miles., B, P, Kaltenborn., M, Virtue. And H, Ahlenius. (Eds.)., ‘The last stand of the orang-­‐utan-­‐ State of emergency: Illegal Logging, Fire and palm Oil in Indonesia’s National Parks’ 2007. United Nations Environment Programme, GRID-­‐Arendal, Norway, www.grida.no. 21
C,Nelleman., L, Miles., B, P, Kaltenborn., M, Virtue. And H, Ahlenius. (Eds.)., ‘The last stand of the orang-­‐utan-­‐ State of emergency: Illegal Logging, Fire and palm Oil in Indonesia’s National Parks’ 2007. United Nations Environment Programme, GRID-­‐Arendal, Norway, www.grida.no. 3 The Palm Oil Action Group Volunteer Pack 2) About POAG POAG is an independent not-­‐for-­‐profit organisation that endeavours to spread awareness about the impacts of unsustainable palm oil and instigate change in the industry. We educate consumers about the implications of their choices through our website and our continuous attention to queries from concerned members of the public. We respond individually to questions raised by people from around the world and encourage them to become involved in our campaigns. POAG employs the following strategies to achieve our ultimate goal of ceasing deforestation in South-­‐east Asia for the establishment and expansion of palm oil plantations: • Education Accurately informing the public about the impact of unsustainable palm oil plantations, particularly in South-­‐east Asia, is one of POAGs core objectives. We have made a sincere commitment to providing the latest research on the issue. This research is conducted using a variety of sources including internet based resources, newspaper and magazine articles, and communication with like-­‐minded organisations. We have also created a palm oil free list of products to help consumers make informed, ethical choices. • Lobbying the Government POAG advocates for the mandatory labelling of palm oil on all products sold in Australia. It is crucial that consumers be given a choice to purchase sustainably produced alternatives to generic products that contain ingredients from destructive sources. In order to achieve the mandatory labelling of palm oil we actively lobby the government to amend legislation on the labelling of palm oil. We have also worked in conjunction with Nick Xenophon in his labelling campaign. • Lobbying Companies In order to change corporate practices on the sourcing and labelling of palm oil, we continually remind companies about the issue. We encourage companies to source only Roundtable on Sustainable Palm Oil (RSPO) certified sustainable Palm oil (CSPO), replace palm oil with a sustainable alternative or completely remove palm oil from their products. If a company is RSPO certified it is prohibited for them to clear rainforest for the production and expansion of unsustainable palm oil. We also provide people with resource packs to facilitate this process. 4 The Palm Oil Action Group Volunteer Pack Public Involvement We provide the public with resource kits containing letters to the government and companies, brochures, fact sheets, posters and stickers. This both facilitates public pressure and empowers individuals to generate positive change. 3) What you can do to help • Spread Awareness Talk to as many people as possible about palm oil and the impacts of unsustainable plantations. Send around an email with our fact sheet, put up a poster in your work place or at school or University. Why not give a presentation at school, university or a hobby club? POAG has a 10 minute power-­‐point presentation summarising the issues involved for your convenience. Be part of the sticker campaign by putting stickers on products that contain unsustainable palm oil in a supermarket near you. This spreads awareness and allows consumers to make informed choices about the products they purchase. Hand out information sheets at markets and festivals. The fact sheet is included in this volunteer pack. • Lobby the Government Send letters to the Australian government requesting they change legislation so that it is mandatory to label palm oil on products sold in Australia. Letters should be addressed to: Tony Burke The Minister for the Environment, Heritage and Arts Nicola Roxon The Minister for Health and Ageing Kevin Rudd The Minister for Foreign Affairs Primo Alui Joelianto The Indonesian Ambassador These letters are included in this volunteer pack. If you really want to make an impact, (calling and reinforcing your message) phoning can be very powerful. Encouraging your colleagues, friends and family to do the same will increase the chances of the government taking this very serious issue on board. • Lobby Companies Sending letters and calling companies requesting them to source only RSPO certified sustainable Palm oil (CSPO), replace palm oil with a sustainable 5 The Palm Oil Action Group Volunteer Pack alternative or completely remove palm oil from their products is a very powerful effective way to apply consumer pressure. Letters to a select number of companies have been included in this volunteer pack. 4) Letter to the Minister for the Environment, Heritage and the Arts, Tony Burke EMAIL: Tony.Burke.MP@aph.gov.au POST: PO Box 6022 House of Representatives
Canberra ACT 2600 PHONE: (02) 6277 7640 Dear Tony Burke, The environmental, social and economic impacts of the palm oil industry are devastating and extensive. The increasing expansion of palm oil plantations is rapidly contributing to the demise of some of the world’s most bio-­‐diverse tropical rainforest, exacerbating global climate change, promoting wide-­‐spread social unrest and facilitating a vicious cycle of corruption. Despite palm oil’s potential to become a “major source of sustainable and renewable raw material for the world’s food, oleochemical and biofuel industries”22, its production has instead resulted in mass deforestation, social upheaval and the near extinction of several animal species.23 These endangered species include the Sumatran tiger (Panthera tigris sumatrae) 24, the Sumatran Orang-­‐utan (Pongo abelii) and the Bornean Orang-­‐utan (Pongo pygmaeus)25. Yusof Basiron, ‘Palm oil Production through Sustainable Plantations’ (2007) 109 European Journal of Lipid Science and Technology 289. 23 K.T. Tan, K.T. Lee, A.R. Mohamed, S. Bhatia, ‘Palm oil: Addressing issues and towards sustainable development’ (2009) 13 Renewable and Sustainable Energy Reviews 420. 24 Eyes on the Forest, Asia Pulp & Paper/ Sinar Mas Group Threatens Senepis Forest, Sumatran Tiger Habitat, and Global Climate: Investigative Report’ (2008) Available at www.eyesontheforest.or.id. 25 Craig Hilton-­‐Taylor, The International Union for Conservation of Nature (IUCN) Red List of Threatened Species (2002) < www.iucnredlist.org> accessed 2 October 2009. 22
6 The Palm Oil Action Group Volunteer Pack A report published by the United Nations Environment Programme (UNEP) in 2007 stated that palm oil plantations are currently the leading cause of rainforest destruction in Malaysia and Indonesia.26 Palm oil production is increasingly being promoted in sustainable energy campaigns worldwide. With the rapidly increasing oil prices after 2000, the demand for bio-­‐diesel from palm oil significantly increased. It has been estimated that annual world biodiesel requirement by 2050 could be as much as 277 million tonnes, twice the vegetable oil production in 2008 and seven times the total palm oil production.27 Fuel-­‐orientated companies have assumed prominent roles in the emerging industry.28 I am writing to ask you to urgently introduce legislation to mitigate the importation of unsustainable palm oil for use as a biofuel. I would be grateful if you could inform me about the current use of palm oil as a biofuel in this country, and what measures you will be undertaking to mitigate the influx of unsustainable palm oil as a biofuel into Australia. Yours sincerely, [Insert name] 5) Letter to the Minister for Health and Ageing, Nicola Roxon EMAIL: Nicola.Roxon.MP@aph.gov.au POST: Suite MG 50
Parliament House
Canberra ACT 2600 PHONE: 02 6277 7220 Dear Nicola Roxon, I am writing to express my concern about the detrimental effects of palm oil on human health, particularly given the widespread use of it processed foods and the misleading labelling of it as simply a ‘vegetable oil.’ Palm oil is high in G Nellerman, L Miles, BP Kalternborn, M Virtue, H Ahlenius (Eds) The Last Stand of the Orang-­utan-­ State of Emergency: Illegal Logging, Fire, Palm Oil in Indonesia’s National Parks (2007). 27 Emily B. Fitzherbert, Matthew J. Struebig, Alexandra Morel, Finn Danielsen, Carsten A. Brühl, Paul F. Donald and Ben Phalan, ‘How will Oil Palm Expansion Affect Biodiversity?’ (2008) Trends in Ecology and Evolution 23 (10) pp 538-­‐545. 28Jordan Nikoloyuk, Tom R, and Reinier de Man, ‘The promise and limitations of partnered governance: the case of 26
sustainable palm oil’ (2009) Corporate Governance 10 (1).pp.59-­‐72. 7 The Palm Oil Action Group Volunteer Pack saturated fat, which is the biggest cause of high LDL cholesterol levels.29 As consumers, Australians are eating well above the WHO recommended levels of saturated fats.30 The WHO and the FHO recently released a report that reveals the over-­‐
consumption of saturated fat has been linked to chronic diseases such as cardiovascular diseases, cancers, diabetes and obesity. Chronic diseases contributed approximately 59% of the 56.5 million total reported deaths in the world and 46%of the global burden of disease.31 As an Australian (citizen and consumer), I feel I have a right to know if palm oil is in the products I consume so I can make informed choices concerning my health. Whilst I am aware that saturated fat is currently labelled on food products, many consumers do not have the knowledge to determine what constitutes a high level of saturated fat. The average consumer spends only 1.8 seconds looking at a product before purchase. It would be much easier for the consumer to be able to instantly associate palm oil with high levels of saturated fat. Please take the urgent action necessary to protect the health of all Australians. Insist on palm oil being labelled. The current system is deceptive and potentially harmful to our health. Yours sincerely [Insert name] 6) Letter to the Food Standards and Safety Australia and New Zealand. EMAIL: complaints@foodstandards.gov.au POST: PO Box 7186 Canberra BC ACT 2610 Australia PHONE: (02) 6271 2222 ONLINE FORM: http://www.foodstandards.gov.au/contactus/contactform.cfm?action=filte
r&query=Consumer+enquiries. 29
Lichtenstein AH, Kennedy E, Barrier P, Danford D, Ernst ND, Grundy SM, Leveille GA, Van Horn L, Williams CL, Booth SL. ‘Dietary fat consumption and health’ (1998) Nutritional Review 30
The Honerable Christopher Pyne MP, ‘Australia-­‐New Zealand Collaboration on Transfat Launched’ (Media Release, 12 February 2007). 31
‘WHO/FAO release independent Expert Report on diet and chronic disease’ (2010) World Health Organisation < http://www.who.int/mediacentre/news/releases/2003/pr20/en/. 8 The Palm Oil Action Group Volunteer Pack Dear FSANZ, I am writing to express my concern that it is not currently mandatory to label palm oil on food products. I am not writing because I am concerned about the environmental implications of unsustainable palm oil plantations in Indonesia and Malaysia. Although I am not thrilled about this situation, I am aware that environmental concerns are not within the scope and intention of the FSANZ Act. Moreover, I appreciate the powerful precedent that would be established from such an amendment and the multitude of other environmental issues that could potentially be raised. However, I am concerned about the detrimental impact palm oil has on human health. Palm oil is high in saturated fat, which is the biggest cause of high LDL cholesterol levels.32 As consumers, Australians are eating well above the WHO recommended levels of saturated fats.33 The WHO and the FHO recently released a report that reveals the over-­‐
consumption of saturated fat has been linked to chronic diseases such as cardiovascular diseases, cancers, diabetes and obesity. Chronic diseases contributed approximately 59% of the 56.5 million total reported deaths in the world and 46%of the global burden of disease.34 As an Australian citizen and consumer I feel it is my right to know if palm oil is in the products I consume so that I am able to make informed choices concerning my health. Whilst I am aware that saturated fat is currently labelled on food products, many consumers do not have the knowledge to determine what constitutes a high level of saturated fat. It is much easier for the consumer to simply associate palm oil with high levels of saturated fat to facilitate such a decision. The average consumer spends only 1.8 seconds looking at a product before purchase. Please inform me of a valid argument why palm oil should not be labelled. Kind Regards, [Insert name] 7) Letter to the Indonesian Ambassador, Primo Alui Joelliant 32 Lichtenstein AH, Kennedy E, Barrier P, Danford D, Ernst ND, Grundy SM, Leveille GA, Van Horn L, Williams CL, Booth SL. ‘Dietary fat consumption and health’ (1998) Nutritional Review 33 The Honerable Christopher Pyne MP, ‘Australia-­‐New Zealand
Collaboration on Transfat Launched’ (Media Release, 12 February 2007). 34 ‘WHO/FAO release independent Expert Report on diet and chronic disease’ (2010) World Health Organisation < http://www.who.int/mediacentre/news/releases/2003/pr20/en/. 9 The Palm Oil Action Group Volunteer Pack POST: His Excellency Primo Alui Joelianto
Indonesian Embassy
8 Darwin Avenue, Yarralumla, ACT 2600, Australia PHONE: +612-­62508600 Dear Primo Alui Joelliant, As you are aware, the harmful environmental, social and economic impacts of the palm oil industry are extensive. The increasing expansion of palm oil plantations is rapidly contributing to the demise of some of the world’s most bio-­‐diverse tropical rainforest, exacerbating global climate change, promoting wide-­‐spread social unrest and facilitating a vicious cycle of corruption. Despite palm oil’s potential to become a “major source of sustainable and renewable raw material for the world’s food, oleochemical and biofuel industries”35, its production has resulted in mass deforestation, social upheaval and the near extinction of several animal species.36 These endangered species include the Sumatran tiger (Panthera tigris sumatrae) 37, the Sumatran Orang-­‐
utan (Pongo abelii) and the Bornean Orang-­‐utan (Pongo pygmaeus)38. A report published by the United Nations Environment Programme (UNEP) in 2007 stated that palm oil plantations are currently the leading cause of rainforest destruction in Malaysia and Indonesia.39 I respectfully request that you: • Stop all concessions to palm oil companies to clear rainforest for the establishment and expansion of palm oil plantations. • Invest resources into monitoring the activities of palm oil companies to minimize illegal expansion of palm oil plantations. • Restore peatlands that have been drained and degraded. • Recognise the customary rights of local people. Yusof Basiron, ‘Palm oil Production through Sustainable Plantations’ (2007) 109 European Journal of Lipid Science and Technology 289. 36 K.T. Tan, K.T. Lee, A.R. Mohamed, S. Bhatia, ‘Palm oil: Addressing issues and towards sustainable development’ (2009) 13 Renewable and Sustainable Energy Reviews 420. 37 Eyes on the Forest, Asia Pulp & Paper/ Sinar Mas Group Threatens Senepis Forest, Sumatran Tiger Habitat, and Global Climate: Investigative Report’ (2008) Available at www.eyesontheforest.or.id. 38 Craig Hilton-­‐Taylor, The International Union for Conservation of Nature (IUCN) Red List of Threatened Species (2002) < www.iucnredlist.org> accessed 2 October 2009. 39 G Nellerman, L Miles, BP Kalternborn, M Virtue, H Ahlenius (Eds) The Last Stand of the Orang-­utan-­ State of Emergency: Illegal Logging, Fire, Palm Oil in Indonesia’s National Parks (2007). 35
10 The Palm Oil Action Group Volunteer Pack • Remove plantations from national parks. • Ensure that members of the RSPO maintain the integrity of its aims and objectives. Please take the action necessary to preserve these valuable forests for future generations. Yours sincerely, [Insert name] 7) Letter to the Minister for Foreign Affairs, Kevin Rudd EMAIL: Kevin.Rudd.MP@aph.gov.au POST: PO Box 6022
House of Representatives Canberra ACT 2600. PHONE: 02 6277 7500 Dear Mr Rudd, The environmental, social and economic impacts of the palm oil industry are devastating and extensive. The increasing expansion of palm oil plantations is rapidly contributing to the demise of some of the world’s most bio-­‐diverse tropical rainforest, exacerbating global climate change, promoting wide-­‐spread social unrest and facilitating a vicious cycle of corruption. Despite palm oil’s potential to become a “major source of sustainable and renewable raw material for the world’s food, oleochemical and biofuel industries”40, its production has resulted in mass deforestation, social upheaval and the near extinction of several animal species.41 These endangered species include the Sumatran tiger (Panthera tigris sumatrae) 42, the Sumatran Orang-­‐
utan (Pongo abelii) and the Bornean Orang-­‐utan (Pongo pygmaeus)43. A report published by the United Nations Environment Programme (UNEP) in 2007 Yusof Basiron, ‘Palm oil Production through Sustainable Plantations’ (2007) 109 European Journal of Lipid Science and Technology 289. 41 K.T. Tan, K.T. Lee, A.R. Mohamed, S. Bhatia, ‘Palm oil: Addressing issues and towards sustainable development’ (2009) 13 Renewable and Sustainable Energy Reviews 420. 42 Eyes on the Forest, Asia Pulp & Paper/ Sinar Mas Group Threatens Senepis Forest, Sumatran Tiger Habitat, and Global Climate: Investigative Report’ (2008) Available at www.eyesontheforest.or.id. 43 Craig Hilton-­‐Taylor, The International Union for Conservation of Nature (IUCN) Red List of Threatened Species (2002) < www.iucnredlist.org> accessed 2 October 2009. 40
11 The Palm Oil Action Group Volunteer Pack stated that palm oil plantations are currently the leading cause of rainforest destruction in Malaysia and Indonesia.44 I urge you to implement more stringent conditions on the importation of unsustainable palm oil into Australia. The restriction of these imports will make a significant difference to the extent of deforestation in South-­‐east Asia. Only a decrease in demand for unsustainable palm oil will provide corporations with an incentive to behave in a socially responsible and ethical manner. Yours sincerely [insert name] 8) LETTER TO COLES EMAIL: Sarah Ondaajte, Customer Care Contact Center< Sarah.Ondaatje@coles.com.au> Ian McLeod, CEO of Coles< ian.mcleod@coles.com.au> PHONE: (02) 9281 0844 ONLINE FORM: http://www.coles.com.au/Coles/Coles-­Feedback.aspx Dear Ian McLeod, As I am sure you are aware, the environmental, social and economic impacts of the palm oil industry are extensive. The increasing expansion of palm oil plantations is rapidly contributing to the demise of some of the world’s most bio-­‐
diverse tropical rainforest, exacerbating global climate change, promoting wide-­‐
spread social unrest and facilitating a vicious cycle of corruption. Despite palm oil’s potential to become a “major source of sustainable and renewable raw material for the world’s food, oleochemical and biofuel industries”45, its production has resulted in mass deforestation, social upheaval and the near extinction of several animal species.46 These endangered species include the Sumatran tiger (Panthera tigris sumatrae) 47, the Sumatran Orang-­‐
G Nellerman, L Miles, BP Kalternborn, M Virtue, H Ahlenius (Eds) The Last Stand of the Orang-­utan-­ State of Emergency: Illegal Logging, Fire, Palm Oil in Indonesia’s National Parks (2007). 45
Yusof Basiron, ‘Palm oil Production through Sustainable Plantations’ (2007) 109 European Journal of Lipid Science and Technology 289. 46
K.T. Tan, K.T. Lee, A.R. Mohamed, S. Bhatia, ‘Palm oil: Addressing issues and towards sustainable development’ (2009) 13 Renewable and Sustainable Energy Reviews 420. 47
Eyes on the Forest, Asia Pulp & Paper/ Sinar Mas Group Threatens Senepis Forest, Sumatran Tiger Habitat, and Global Climate: Investigative Report’ (2008) Available at www.eyesontheforest.or.id. 44
12 The Palm Oil Action Group Volunteer Pack utan (Pongo abelii) and the Bornean Orang-­‐utan (Pongo pygmaeus)48. A report published by the United Nations Environment Programme (UNEP) in 2007 stated that palm oil plantations are currently the leading cause of rainforest destruction in Malaysia and Indonesia.49 Coles have made numerous statements to suggest that it is both aware of the problem, and concerned about its role in creating demand for unsustainable palm oil. More specifically, Coles has stated that it aims to use palm oil for Coles branded products that are sourced in line with the Round Table on the Sustainable Production of Palm Oil (RSPO) Principles & Criteria,50 which also has a policy that requires palm oil to be labeled as ‘palm oil’ rather than ‘blended vegetable oil.’51 However, it appears Coles is not following through with its commitments. In 2010, WWF created an Australian ‘Palm Oil Buyers Scorecard’ which assessed the ethical sourcing of six major palm oil manufacturers.52 The assessment was conducted against a range of objective criteria, from their membership status with the RSPO to their usage of sustainable palm oil.53 Coles was in the lowest bracket of all three categories and currently has no policies in place to encourage the responsible use of palm oil. Moreover, Coles does not appear to be using any of the RSPO certified palm oil (CSPO).54 Many of the major players in the food and oleochemical industry have made serious public commitments to addressing this issue in response to consumer demand for ethically and sustainably sourced palm oil. KFC55, McDonalds56 and Cadbury57 have all taken palm oil out of their products. Woolworths58, Arnotts59 and Dove and Magnum60 have committed to sourcing 100% sustainable palm oil by 2015. 48
Craig Hilton-­‐Taylor, The International Union for Conservation of Nature (IUCN) Red List of Threatened Species (2002) < www.iucnredlist.org> accessed 2 October 2009. 49
G Nellerman, L Miles, BP Kalternborn, M Virtue, H Ahlenius (Eds) The Last Stand of the Orang-­‐utan-­‐ State of Emergency: Illegal Logging, Fire, Palm Oil in Indonesia’s National Parks (2007). 50
Palm Oil (2010) Coles < http://www.coles.com.au/About-­‐Coles/Sustainability/Ethical-­‐sourcing.aspx>accessed 25 July 2010. 51
Ibid. 52
Palm Oil Buyers Scorecard (2010) WWF For a Living Planet < http://www.wwf.org.au/ourwork/land/land-­‐clearing-­‐and-­‐palm-­‐
oil/WWF-­‐Palm-­‐Oil-­‐Scorecard>accessed 25 July 2010. 53
Ibid. 54
Palm Oil Buyers Scorecard (2010) WWF For a Living Planet < http://www.wwf.org.au/ourwork/land/land-­‐clearing-­‐and-­‐palm-­‐
oil/WWF-­‐Palm-­‐Oil-­‐Scorecard>accessed 25 July 2010. 55
Kelly Burke, ‘Finally, KFC Opts for the Good Oil’ (July 16 2009) The Sydney Morning Herald. 56
At Long last, McDonald’s to switch to trans-­‐fat-­‐free-­‐oil (2006) Palm Oil Truth Foundation< http://www.palmoiltruthfoundation.com/index.php?option=com_content&task=view&id=215&Itemid=252>accessed 12 October 2010. 57 Cadbury Removes Palm Oil (2009) news. com <http://www.news.com.au/business/cadbury-­‐removes-­‐palm-­‐oil/story-­‐
e6frfm1i-­‐1225764168405> accessed 29 July 2005; Cadbury Takes Palm Oil Out Borneo Orang-­‐utan Survival <http://www.orangutans.com.au/Orangutans-­‐Survival-­‐Information/Cadbury-­‐takes-­‐palm-­‐oil-­‐out.aspx>accessed 27 July 2010. 58 Woolworths Palm Oil Action Group (2010) Green Online<http://www.gmagazine.com.au/blog/1892/woolworths-­‐
palm-­‐oil-­‐action-­‐plan>accessed 12 October 2010. 59 Personal Communication with Pam Mckenzie on the 11 October 2010 <pam_mckenzie@arnotts.com>. 60 Sustainable Palm Oil: Unilever takes the lead (2008) Unilever Global Communications <http://www.unilever.com/images/es_Unilever_PalmOil_v71_tcm13-­‐126357.pdf> accessed 11 October 2010. 13 The Palm Oil Action Group Volunteer Pack I strongly encourage Coles to be a leader in the field to clean up the palm oil industry by: • Using only certified sustainable Palm Oil (CSPO) in house brand products by 2013 • Insisting that all external suppliers label Palm oil by 2014 • Insisting that all Coles external suppliers use only certified sustainable Palm oil(CSPO) by 2015 • Request your supplier to source more CSPO to meet your increased demands and use your company’s ability to negotiate to support whichever supplier is willing to service this request. Yours sincerely, [Insert name] 9) Letter to Woolworths EMAIL: AMardirossian@woolworths.com.au ONLINE FORM: http://www.woolworths.com.au/wps/wcm/connect/website/woolworths/cont
act+us/contact-­‐us PHONE: 1300 767 969 Dear Michael Luscombe, CEO of Woolworths, As I’m sure you are aware, the environmental, social and economic impacts of the palm oil industry are extensive. The increasing expansion of palm oil plantations is rapidly contributing to the demise of some of the world’s most bio-­‐
diverse tropical rainforest, exacerbating global climate change, promoting wide-­‐
spread social unrest and facilitating a vicious cycle of corruption. Despite palm oil’s potential to become a “major source of sustainable and renewable raw material for the world’s food, oleochemical and biofuel industries”61, its production has resulted in mass deforestation, social upheaval and the near extinction of several animal species.62 These endangered species include the Sumatran tiger (Panthera tigris sumatrae) 63, the Sumatran Orang-­‐utan (Pongo Yusof Basiron, ‘Palm oil Production through Sustainable Plantations’ (2007) 109 European Journal of Lipid Science and Technology 289. 62 K.T. Tan, K.T. Lee, A.R. Mohamed, S. Bhatia, ‘Palm oil: Addressing issues and towards sustainable development’ (2009) 13 Renewable and Sustainable Energy Reviews 420. 63 Eyes on the Forest, Asia Pulp & Paper/ Sinar Mas Group Threatens Senepis Forest, Sumatran Tiger Habitat, and Global Climate: Investigative Report’ (2008) Available at www.eyesontheforest.or.id. 61
14 The Palm Oil Action Group Volunteer Pack abelii) and the Bornean Orang-­‐utan (Pongo pygmaeus)64. A report published by the United Nations Environment Programme (UNEP) in 2007 stated that palm oil plantations are currently the leading cause of rainforest destruction in Malaysia and Indonesia.65 Woolworths have made numerous public statements that suggest it is both aware of this problem and concerned about addressing its role in contributing to the demand for unsustainable palm oil. 66 Woolworths has announced its time-­‐
bound policy for converting its private label products to using CSPO by 2015. They have also committed to labelling palm oil within the next 12 months to help customers make informed purchasing choices. The labelling and CSPO criteria is currently being integrated into the product specifications and monitoring processes are being developed by the Quality assurance team.67 Many of the major players in the food and oleochemical industry have made serious commitments to addressing this issue in response to consumer demand for ethically and sustainably sourced palm oil. KFC68, McDonalds69 and Cadbury70 have taken palm oil out of their products. Woolworths71, Arnotts72, Dove, Magnum73, Walmart74 and Coles75 have committed to sourcing 100% sustainable palm oil by 2015. I strongly encourage Woolworths to be a leader in the sustainable palm oil industry by making an ambitious commitment to ensuring its consumers can feel comfortable in the knowledge that they are not contributing to the destruction of the rainforest through their purchases. In particular we request Woolworths: • Use only RSPO certified sustainable Palm Oil (CSPO) in house brand products by 2013. • Insist that all external suppliers label Palm oil by 2014 . • Insist that all external suppliers use only RSPO certified sustainable Palm Craig Hilton-­‐Taylor, The International Union for Conservation of Nature (IUCN) Red List of Threatened Species (2002) < www.iucnredlist.org> accessed 2 October 2009. 65 G Nellerman, L Miles, BP Kalternborn, M Virtue, H Ahlenius (Eds) The Last Stand of the Orang-­utan-­ State of Emergency: Illegal Logging, Fire, Palm Oil in Indonesia’s National Parks (2007). 66 Woolworths Limited (2010) The Round Table on Sustainable Palm Oil <http://www.rspo.org/?q=om/1398>accessed 24 October 2010. 67 Woolworths Limited (2010) The Round Table on Sustainable Palm Oil <http://www.rspo.org/?q=om/1398>accessed 24 October 2010. 68 Kelly Burke, ‘Finally, KFC Opts for the Good Oil’ (July 16 2009) The Sydney Morning Herald. 69 At Long last, McDonald’s to switch to trans-­fat-­free-­oil (2006) Palm Oil Truth Foundation< http://www.palmoiltruthfoundation.com/index.php?option=com_content&task=view&id=215&Itemid=252>accessed 12 October 2010. 70 Cadbury Removes Palm Oil (2009) news. com <http://www.news.com.au/business/cadbury-­‐removes-­‐palm-­‐oil/story-­‐
e6frfm1i-­‐1225764168405> accessed 29 July 2005; Cadbury Takes Palm Oil Out Borneo Orang-­‐utan Survival <http://www.orangutans.com.au/Orangutans-­‐Survival-­‐Information/Cadbury-­‐takes-­‐palm-­‐oil-­‐out.aspx>accessed 27 July 64
2010. 71 Woolworths Palm Oil Action Group (2010) Green Online<http://www.gmagazine.com.au/blog/1892/woolworths-­‐
palm-­‐oil-­‐action-­‐plan>accessed 12 October 2010. 72 Personal Communication with Pam Mckenzie on the 11 October 2010 <pam_mckenzie@arnotts.com>. 73 Sustainable Palm Oil: Unilever takes the lead (2008) Unilever Global Communications <http://www.unilever.com/images/es_Unilever_PalmOil_v71_tcm13-­‐126357.pdf> accessed 11 October 2010. 74 Walmart Unveils Global Sustainable Agriculture Goals Walmart Corporate (2010) <http://walmartstores.com/pressroom/news/10376.aspx> accessed 16 October 2010. 75 Personal Communicatino with Vicky Carambelas on 14 October 2010. 15 The Palm Oil Action Group Volunteer Pack •
oil (CSPO) by 2015. Request your supplier to source more CSPO to meet your increased demands and use your company’s ability to negotiate to support whichever supplier is willing to service this request. Yours sincerely, [insert name] 10) Aldi POST: Aldi Stores, Holly Lane, Atherstone Warwichshire CV9 23Q 0844 406 8800 PHONE: (02)9675 9000 Dear Michael Kloeters, As I am sure you are aware, the environmental, social and economic impacts of the palm oil industry are extensive. The increasing expansion of palm oil plantations is rapidly contributing to the demise of some of the world’s most bio-­‐
diverse tropical rainforest, exacerbating global climate change, promoting wide-­‐
spread social unrest and facilitating a vicious cycle of corruption. Despite palm oil’s potential to become a “major source of sustainable and renewable raw material for the world’s food, oleochemical and biofuel industries”76, its production has resulted in mass deforestation, social upheaval and the near extinction of several animal species.77 These endangered species include the Sumatran tiger (Panthera tigris sumatrae) 78, the Sumatran Orang-­‐
utan (Pongo abelii) and the Bornean Orang-­‐utan (Pongo pygmaeus)79. A report published by the United Nations Environment Programme (UNEP) in 2007 stated that palm oil plantations are currently the leading cause of rainforest destruction in Malaysia and Indonesia.80 Yusof Basiron, ‘Palm oil Production through Sustainable Plantations’ (2007) 109 European Journal of Lipid Science and Technology 289. 77 K.T. Tan, K.T. Lee, A.R. Mohamed, S. Bhatia, ‘Palm oil: Addressing issues and towards sustainable development’ (2009) 13 Renewable and Sustainable Energy Reviews 420. 78 Eyes on the Forest, Asia Pulp & Paper/ Sinar Mas Group Threatens Senepis Forest, Sumatran Tiger Habitat, and Global Climate: Investigative Report’ (2008) Available at www.eyesontheforest.or.id. 79 Craig Hilton-­‐Taylor, The International Union for Conservation of Nature (IUCN) Red List of Threatened Species (2002) < www.iucnredlist.org> accessed 2 October 2009. 80 G Nellerman, L Miles, BP Kalternborn, M Virtue, H Ahlenius (Eds) The Last Stand of the Orang-­utan-­ State of Emergency: Illegal Logging, Fire, Palm Oil in Indonesia’s National Parks (2007). 76
16 The Palm Oil Action Group Volunteer Pack Aldi have made numerous public statements that suggest it is both aware of this problem and concerned about addressing its role in contributing to the demand for unsustainable palm oil. Aldi states that it is a responsible retailer and is committed to sustainable sourcing. Moreover it is aware of the importance of deriving palm oil from sustainable and responsible sources, and are developing a policy that covers this.81 Aldi has stated that they will be reviewing every product in their own label range which contains palm oil with a view to finding alternative or sustainable sources. Moreover, they are developing an on-­‐pack icon that specifies if a product contains certified sustainable palm oil. Aldi has also recently introduced a policy to individually name palm oil in the ingredients list so that customers can clearly identify these products. Many of the major players in the food and oleochemical industry have made serious commitments to addressing this issue in response to consumer demand for ethically and sustainably sourced palm oil. KFC82, McDonalds83 and Cadbury84 have taken palm oil out of their products. Woolworths85, Arnotts86, Dove, Magnum87, Walmart88 and Coles89 have committed to sourcing 100% sustainable palm oil by 2015. I strongly encourage Aldi to be a leader in the sustainable palm oil industry by making an ambitious commitment to ensuring its consumers can feel comfortable in the knowledge that they are not contributing to the destruction of the rainforest through their purchases. In particular we request Aldi: • Use only RSPO certified sustainable Palm Oil (CSPO) in house brand products by 2013. • Insist that all external suppliers label Palm oil by 2014 . • Insist that all external suppliers use only RSPO certified sustainable Palm oil (CSPO) by 2015. • Request your supplier to source more CSPO to meet your increased demands and use your company’s ability to negotiate to support Palm oil products and the weekly shop (2010) BBC Panorama < http://news.bbc.co.uk/panorama/hi/front_page/newsid_8517000/8517093.stm>accessed 23 October 2010. 82 Kelly Burke, ‘Finally, KFC Opts for the Good Oil’ (July 16 2009) The Sydney Morning Herald. 83 At Long last, McDonald’s to switch to trans-­fat-­free-­oil (2006) Palm Oil Truth Foundation< http://www.palmoiltruthfoundation.com/index.php?option=com_content&task=view&id=215&Itemid=252>accessed 12 October 2010. 84 Cadbury Removes Palm Oil (2009) news. com <http://www.news.com.au/business/cadbury-­‐removes-­‐palm-­‐oil/story-­‐
e6frfm1i-­‐1225764168405> accessed 29 July 2005; Cadbury Takes Palm Oil Out Borneo Orang-­‐utan Survival <http://www.orangutans.com.au/Orangutans-­‐Survival-­‐Information/Cadbury-­‐takes-­‐palm-­‐oil-­‐out.aspx>accessed 27 July 81
2010. 85 Woolworths Palm Oil Action Group (2010) Green Online<http://www.gmagazine.com.au/blog/1892/woolworths-­‐
palm-­‐oil-­‐action-­‐plan>accessed 12 October 2010. 86 Personal Communication with Pam Mckenzie on the 11 October 2010 <pam_mckenzie@arnotts.com>. 87 Sustainable Palm Oil: Unilever takes the lead (2008) Unilever Global Communications <http://www.unilever.com/images/es_Unilever_PalmOil_v71_tcm13-­‐126357.pdf> accessed 11 October 2010. 88 Walmart Unveils Global Sustainable Agriculture Goals Walmart Corporate (2010) <http://walmartstores.com/pressroom/news/10376.aspx> accessed 16 October 2010. 89 Personal Communicatino with Vicky Carambelas on 14 October 2010. 17 The Palm Oil Action Group Volunteer Pack whichever supplier is willing to service this request. Yours sincerely [insert name]. Palm Oil Fact Sheet Charlotte Louise Richardson The Palm Oil Action Group The environmental, social and economic impacts of the palm oil industry in Indonesia are extensive. The increasing expansion of palm oil plantations is rapidly contributing to the demise of some of the world’s most bio-­‐diverse tropical rainforest, exacerbating global climate change, promoting widespread social unrest and facilitating a vicious cycle of corruption in South-­‐east Asian nations. The Advantages of Palm Oil Palm oil is obtained from the fruit of the African palm oil tree (Elaeis guineensis)90 (Figure 1). It is the most widely produced edible vegetable oil in the world.91 In 1999, it accounted for 12% of the total consumption of cooking oils in the EU and for approximately 20% of the world production of cooking oils.92 In 2005, it overtook soy oil with an annual production of 33.5 million tonnes.93 In 2008, it accounted for over a third of the 130 million tonnes of vegetable oil produced globally.94 The rapid success of the palm oil as an agricultural crop can be largely attributed to its high productivity rate95, with first harvests just three years after plantation.96 Gerd Schuster, Willie Smits and Jay Ullal, ‘Thinkers of the Jungle: The Orang-­utan Report’ (2007). Sutapa Mukherjee and Analava Mitra, ‘Health Effects of Palm Oil’, J Hum Ecol, 26(3): 197-­‐203 (2009) 92 Mattias Johansson, ‘Sustainable Palm Oil: How does the Indonesian palm oil industry affect Indonesia ecologically, socially and economically?’ (1998) Department of Social and Economic Geography <http://www.geo.umu.se/vg_uppsatser/JohanssonM.pdf.>accessed 27 July 2010. 93 Gerd Schuster, Willie Smits and Jay Ullal, ‘Thinkers of the Jungle: The Orang-­utan Report’ (2007). 94 Palm Oil Buyers Scorecard (2010) WWF For a Living Planet < http://www.wwf.org.au/ourwork/land/land-­‐clearing-­‐
and-­‐palm-­‐oil/WWF-­‐Palm-­‐Oil-­‐Scorecard>accessed 25 July 2010. 95 Yusof Basiron, ‘Palm oil Production through Sustainable Plantations’ (2007) 109 European Journal of Lipid Science and Technology 289. 96 Gerd Schuster, Willie Smits and Jay Ullal, ‘Thinkers of the Jungle: The Orang-­utan Report’ (2007). 90
91
18 The Palm Oil Action Group Volunteer Pack Figure 1. The palm oil fruit (Elaeis guineensis). Source: Lian Pin Koh & David S. Wilcove, ‘Cashing in Palm Oil for Conservation’ (2007) Nature 448 (30). 2.1 Productivity and Potential Sustainability The high photosynthetic rate of the oil palm enables it to produce between eight to ten times more oil per hectare per year (ha/yr) than other oil seeds such as rapeseed or soybean. It has an output-­‐to-­‐input energy ratio of 9:1, compared to 3:1 for other oilseed crops.97 The average yield of palm oil is approximately 4.2 tonnes ha/yr, whereas rapeseed oil and soybean oil produce only 1.2 and 0.4 tonnes respectively (Figure 2). As a result of such high productivity, the oil palm requires less land to produce a higher yield than other oil seed crops. For example, whilst the oil palm occupies 9.2 million ha of agricultural land and produces 31.8% of global oils and fats, the soybean crop would require 10 times this amount of land to produce the same yield.98 Figure 2. The average annual yield of the major vegetable oils per hectare per year between 2004–2006. Source: K.T. Tan, K.T. Lee, A.R. Mohamed, S. Bhatia, “Palm oil: Addressing issues and towards sustainable development” Renewable and Sustainable Energy Reviews 13 (2009) 420–427. Another significant advantage of the oil palm over other oil seeds is its superior ability to absorb carbon dioxide (CO2). The oil palm emits eight to ten times more oxygen (O2) and absorbs up to ten times more CO2 ha/yr than other annual crops Yusof Basiron, ‘Palm oil Production through Sustainable Plantations’ (2007) 109 European Journal of Lipid Science and Technology 289. 98 Ibid. 97
19 The Palm Oil Action Group Volunteer Pack grown in temperate countries.99 Moreover, palm oil requires less fertilizer per unit of output than any other crop.100 2.2 Economic Advantages The prolific growth of the palm oil industry has brought significant economic benefits to Indonesia through its development as an important source of both foreign exchange and employment.101 In 1997, the palm oil industry employed 2 million people and exported 2.9 million tonnes of palm oil, generating an estimated US$1.4 billion. 102 This accounted for 31% of Indonesia’s agricultural exports and 3.5% of total non-­‐oil and gas exports.103 Exports of crude palm oil (CPO) have increased from 1.47 million tons, generating US$745.2 million in 1998, to 6.33 million tonnes, generating US$2.0 billion in 2002. 104 3. The Disadvantages of Palm Oil Despite palm oil’s potential to become a “major source of sustainable and renewable raw material for the world’s food, oleochemical and biofuel industries”105, its production has resulted in mass deforestation, social upheaval and the near extinction of several animal species.106 These endangered species include the Sumatran tiger (Panthera tigris sumatrae) (Figure 3) 107, the Sumatran Orang-­‐utan (Pongo abelii) and the Bornean Orang-­‐utan (Pongo pygmaeus) (Figure 4)108 . Indonesia has the second highest rate of deforestation in the world.109 Between 1990 and 2000, 1.3 million ha of forest was lost every year.110 Between 2000 and 2005 this rate accelerated to 1.8 million ha per year, representing a 2% annual deforestation rate.111 A report published by the United Nations Environment Programme (UNEP) in 2007 stated that palm oil Ibid. Emily B. Fitzherbert, Matthew J. Struebig, Alexandra Morel, Finn Danielsen, Carsten A Bruhl, Paul F. Donald and Ben Phalan, ‘How will oil palm expansion affect biodiversity’ (2008) Trends in Ecology and Evolution 23(10). 101 Anne Casson, ‘Which Way Forward? People, Forests, and Policymaking in Indonesia (2002). 101 Ibid. 102 Ibid. 103 Ibid. 104 Hariadi Kartodihardjo and Agus Supriono, ‘The Impact of Sectoral Development on Natural Forest Conversion and Degradation: The Case of Timber and Tree Crop Plantations in Indonesia’ (2000) Occasional Paper with the Center for International Foresty Research. 105 Yusof Basiron, ‘Palm oil Production through Sustainable Plantations’ (2007) 109 European Journal of Lipid Science and Technology 289. 106 K.T. Tan, K.T. Lee, A.R. Mohamed, S. Bhatia, ‘Palm oil: Addressing issues and towards sustainable development’ (2009) 13 Renewable and Sustainable Energy Reviews 420. 107 Eyes on the Forest, Asia Pulp & Paper/ Sinar Mas Group Threatens Senepis Forest, Sumatran Tiger Habitat, and Global Climate: Investigative Report’ (2008) Available at www.eyesontheforest.or.id. 108 Craig Hilton-­‐Taylor, The International Union for Conservation of Nature (IUCN) Red List of Threatened Species (2002) < www.iucnredlist.org> accessed 2 October 2009. 109 Muhammad Zikri, ‘An Economic Model for Deforestation in Indonesia’ Working Paper in Economics and Development Studies (2009). 110 Muhammad Zikri, ‘An Economic Model for Deforestation in Indonesia’ Working Paper in Economics and Development Studies (2009). 111 Indonesia Forest Figures (2006) Mongabay. Come <http://rainforests.mongabay.com/20indonesia.htm>accessed 29 July 2010. 99
100
20 The Palm Oil Action Group Volunteer Pack plantations are currently the leading cause of rainforest destruction in Malaysia and Indonesia.112 The loss of the Bali Tiger (Panthera tigris balica) in the 1940s and the Java Tiger (Panthera tigris sondaica) in the 1980s has been largely attributed to human-­‐
induced habitat fragmentation.113 The Sumatran Tiger is currently facing a similar fate due to the expansion of palm oil plantations, listed as critically endangered on the International Union for Conservation of Nature (IUCN) Red list.114 The species inhabits approximately 58,321 km² of forested habitat in 12 ‘Tiger Conservation Landscapes’ totalling 88,351 km².115 In 2004, the Sumatran tiger population was estimated at 400 to 500 in the Indonesian government’s first and second national tiger action plans. 116 Figure 3. A critically endangered Sumatran tiger with one paw missing. WWF speculate this was most likely a result of illegal poaching facilitated by shrinking habitat. Source: Deforestation on Sumatra Island (2010) The Guardian.co.uk. <http://www.guardian.co.uk/environment/gallery/2009/oct/06/deforestation-­‐
sumatra-­‐redd?picture=353069780> accessed 31 May 2010. The Sumatran Orang-­‐utan is also listed as critically endangered on the IUCN Red list.117 There are currently around 7,300 occupying 20,552 km² of forest.118 Similarly, the Bornean Orang-­‐utan is listed as endangered on the IUCN Red list, with estimates of between 45,000 and 69,000 individuals, living in 86,000 km² of G Nellerman, L Miles, BP Kalternborn, M Virtue, H Ahlenius (Eds) The Last Stand of the Orang-­utan-­ State of Emergency: Illegal Logging, Fire, Palm Oil in Indonesia’s National Parks (2007). 113 Linkie, M. and Martyr, D.J and Holden, J and Yanuar, A and Hartana, A.T and Sugardjito, J and Leader-­‐Williams, N. (2003) Habitat destruction and poaching threaten the Sumatran tiger in Kerinci Seblat National Park, Sumatra. Oryx, 37 (1). pp. 41-­‐48. 114 Linkie, M., Wibisono, H.T., Martyr, D.J. & Sunarto, S. 2008. Panthera tigris ssp. sumatrae. In: IUCN 2010. IUCN Red List of Threatened Species. Version 2010.1. <www.iucnredlist.org>. accessed 28 June 2010. 115 Government of Indonesia. 2007a. Conservation Strategy and Action Plan of Sumatran Tiger 2007-­‐2017 (in Bahasa Indonesia). 116 Shepherd, C. R. and Magnus, N., Nowhere to hide: The Trade in Sumatran Tiger (2004) A TRAFFIC Southeast Asia Report. 117 Singleton, I., Wich, S.A. & Griffiths, M. 2008. Pongo abelii. In: IUCN 2010. IUCN Red List of Threatened Species. Version 2010.1. <www.iucnredlist.org>. accessed 28 June 2010. 118 Ibid. 112
21 The Palm Oil Action Group Volunteer Pack suitable habitat.119 The Bornean Orang-­‐utan populations have declined by over 50% in the last 60 years due to agricultural expansion and human induced fires.120 The decline of the species is predicted to continue at this rate.121 It has been estimated that approximately 1000 Orang-­‐utans die every year due to habitat degradation, forest fires, illegal logging, encroachment and mining.122 Degradation of the Orang-­‐utans natural habitat often forces them into unsuitable forest, resulting in higher death rates and fewer birth rates.123 On the occasion that they refuse to leave their former territory, they are often killed by farmers protecting newly planted crops.124 Figure 4. A Sumatran Orang-­‐utan with a tranquilizer dart in its side in order for rangers to relocate him to a different part of Borneo island, away from this palm oil plantation. Photo was taken on November 19, 2008. (AFP/AFP/Getty Images). Source: www.boston.com/.../01/scenes_from_indonesia.html. In 2007, the United Nations Environment Program (UNEP) predicted that if current trends continue, Orang-­‐utans will be extinct in the wild within two decades (Figure 4).125 Nasi et al. demonstrated that well-­‐connected networks of natural forest corridors in the plantation landscape are critical in maintaining primate populations.126 The destruction of these corridors for the expansion of palm oil plantations further contributes to the demise of the species. Ancrenaz, M., Marshall, A., Goossens, B., van Schaik, C., Sugardjito, J., Gumal, M. & Wich, S. 2008. Pongo pygmaeus. In: IUCN 2010. IUCN Red List of Threatened Species. Version 2010.1. <www.iucnredlist.org>. Downloaded on 28 June 2010. 120 Ibid. 121 Ibid. 122 Speech by Sen Nick Xenophon on the 23rd of November 2009. 123 K.T. Tan, K.T. Lee, A.R. Mohamed, S. Bhatia, ‘Palm oil: Addressing issues and towards sustainable development’ (2009) 13 Renewable and Sustainable Energy Reviews 420. 124 Ibid. 125
C,Nelleman., L, Miles., B, P, Kaltenborn., M, Virtue. And H, Ahlenius. (Eds.)., ‘The last stand of the orang-­‐utan-­‐ State of emergency: Illegal Logging, Fire and palm Oil in Indonesia’s National Parks’ 2007. United Nations Environment Programme, GRID-­‐Arendal, Norway, www.grida.no. 126
NR Koponen & P Poulsen, ‘Impact of Landscape and Corridor Design on Primates in a Large-­‐scale Industrial Tropical Plantation Landscape’ (2008) 17 (5) Biodiversity and Conservation 105. 119
22 The Palm Oil Action Group Volunteer Pack Figure 4. Changes in Orang-­‐utan distribution from 1930-­‐2004. Source: C,Nelleman., L, Miles., B, P, Kaltenborn., M, Virtue. And H, Ahlenius. (Eds.)., ‘The last stand of the orang-­‐utan-­‐ State of emergency: Illegal Logging, Fire and palm Oil in Indonesia’s National Parks’ 2007. United Nations Environment Programme, GRID-­‐Arendal, Norway, www.grida.no. Palm oil plantations support significantly fewer species than primary forest, degraded landscapes and even other agricultural crops.127 Consequently, palm oil plantations pose a serious risk to the survival of numerous plant and animal species.128 Fitzberg et al. found that across all taxa surveyed, an average of only 15% of species recorded in primary forest could also be found in palm oil plantations. 129 One-­‐hundred and forty six species or 21.9% of all mammals in Indonesia are currently listed as ‘threatened’ on the IUCN Red List.130 Nikoloyuk et al. speculate that the main threat to the biodiversity of Indonesia’s tropical forests is not the forestry industry, but the conversion of forest to agricultural land for palm oil production.131 3.1 Rapid Expansion The palm oil industry in Indonesia has grown at an extremely rapid rate. Palm oil plantations expanded from approximately 106,000 ha in the 1960’s to 2.5 million ha in 1997, implying an average growth rate of 11.2% per annum.132 Whereas in 1985, there were only 600,000 ha of palm oil plantations, there were over 6.5 million ha by 2005 (Figure 5). 133 Moreover, approximately 3.5 million ha of rainforest was destroyed during the establishment of these plantations.134 127
Emily B. Fitzherbert, Matthew J. Struebig, Alexandra Morel, Finn Danielsen, Carsten A Bruhl, Paul F. Donald and Ben Phalan, ‘How will oil palm expansion affect biodiversity’ (2008) Trends in Ecology and Evolution 23(10). 128
Ibid. 129
Emily B. Fitzherbert, Matthew J. Struebig, Alexandra Morel, Finn Danielsen, Carsten A Bruhl, Paul F. Donald and Ben Phalan, ‘How will oil palm expansion affect biodiversity’ (2008) Trends in Ecology and Evolution 23(10). 130 IUCN (World Conservation Union) 2006 IUCN Red List of Threatened Species (IUCN, Gland, Switzerland, 2006). 131 Jordan Nikoloyuk, Tom R, and Reinier de Man, ‘The promise and limitations of partnered governance: the case of sustainable palm oil’ (2009) Corporate Governance 10 (1).pp.59-­‐72. 132 Anne Casson, ‘Which Way Forward? People, Forests, and Policymaking in Indonesia (2002). 132 Ibid. 133 Gerd Schuster, Willie Smits and Jay Ullal, ‘Thinkers of the Jungle: The Orang-­utan Report’ (2007). 134 Ibid. 23 The Palm Oil Action Group Volunteer Pack Figure 5. The amount of rainforest (million ha) that was cleared for palm oil plantations per year in Indonesia between 1985 and 2005. Source: Author. The palm oil industry is driven by the high demand of the export market.135 The world demand for palm oil is expected to increase from 20.2 million tonnes a year to 40 million tonnes in 2020, representing a 4% annual rate of increase (Figure 6).136 With palm oil production costs in Indonesia among the cheapest in the world and the increasing demand for palm oil, foreign investment is expected to increase. Figure 6. The area of palm oil plantations in Indonesia in 2005 and the projected expansion of oil palm area in 2020. Source: Vital Forest Graphics (2009) UNEP/GRID-­‐ARENDAL . Available at http://grida.no/publications/vg/forest/. The growing affluence of India and China, the world’s top two importing nations, will further increase this demand. 137 China and India are now responsible for approximately one third of global palm oil imports (Figure 7).138 Hariadi Kartodihardjo and Agus Supriono, ‘The Impact of Sectoral Development on Natural Forest Conversion and Degradation: The Case of Timber and Tree Crop Plantations in Indonesia’ (2000) Occasional Paper with the Center for International Foresty Research. 136 Marcus Colchester, Norman Jiwan, Andiko, Martua Sirait, Asep Yunan Firdaus, A. Surambo and Herbert Pane, ‘Promised Land: Palm Oil and Land Acquisition in Indonesia: Implications for Local Communities and Indigenous Peoples’ (2006) Forest Peoples Programme, Perkumpulan sawait Watch, HuMA and the World Agroforestry Centre at 15. 137 Howard J. Sargeant, ‘Vegetation Fires in Sumatra, Indonesia. Oil palm agriculture in the wetlands of Sumatra: destruction or development’ (2001) European Union Forest Fire Prevention and Control Project with Dinas Kehutanan Propinsi Sumatera Selatan. European Union and Ministry of Forestry. 138 Palm Oil Buyers Scorecard (2010) WWF For a Living Planet < http://www.wwf.org.au/ourwork/land/land-­‐clearing-­‐
and-­‐palm-­‐oil/WWF-­‐Palm-­‐Oil-­‐Scorecard>accessed 25 July 2010. 135
24 The Palm Oil Action Group Volunteer Pack Figure 7. The amount of palm oil (thousand metric tonnes) imported into China, India, EU-­‐27, Pakistan, Bangladesh, the US, Egypt and others in 2008. Source: China to Support Greener Palm Oil (2009) mongabay.com http://news.mongabay.com/2009/0715-­‐china_palm_oil.html>accessed 28 July 2010. In order to meet such a demand, a further three million ha of new estates must be planted.139 Approximately 1.6 million ha of lowland rainforest in Sumatra and 2.6 million ha in Borneo has already been approved for clearance.140 According to industrial planning, this plantation area will be extended to 16.5 million ha by 2020. The Director of the Sumatra Orang-­‐utan Conservation Programme, Ian Singleton, speculates that the Indonesian government has plans to establish the largest oil palm plantation in the world.141 This would require approximately 845 kilometres of “oil palm fence” to be established along the Malaysian border, which would destroy rainforest allegedly reserved as Orang-­‐utan sanctuaries.142 3.2 Social Conflict Colchester et al. found that large scale palm oil plantations affect local communities in a variety of ways.143 These include: the reallocation of land and resources, alterations in vegetation and ecosystems, foreign investment and new infrastructure, the movement of people and settlements, the transformation of local and international trade, and the influx of government agencies.144 Sargeant found that these impacts have resulted in an increase in ‘outright violence’ Howard J. Sargeant, ‘Vegetation Fires in Sumatra, Indonesia. Oil palm agriculture in the wetlands of Sumatra: destruction or development’ (2001) European Union Forest Fire Prevention and Control Project with Dinas Kehutanan Propinsi Sumatera Selatan. European Union and Ministry of Forestry. 140 Gerd Schuster, Willie Smits and Jay Ullal, ‘Thinkers of the Jungle: The Orang-­utan Report’ (2007). 141 Ibid. 142 Ibid. 143 Marcus Colchester, Norman Jiwan, Andiko, Martua Sirait, Asep Yunan Firdaus, A. Surambo and Herbert Pane, ‘Promised Land: Palm Oil and Land Acquisition in Indonesia: Implications for Local Communities and Indigenous Peoples’ (2006) Forest Peoples Programme, Perkumpulan sawait Watch, HuMA and the World Agroforestry Centre at 11. 144 Marcus Colchester, Norman Jiwan, Andiko, Martua Sirait, Asep Yunan Firdaus, A. Surambo and Herbert Pane, ‘Promised Land: Palm Oil and Land Acquisition in Indonesia: Implications for Local Communities and Indigenous Peoples’ (2006) Forest Peoples Programme, Perkumpulan sawait Watch, HuMA and the World Agroforestry Centre at 11. 139
25 The Palm Oil Action Group Volunteer Pack among local communities.145 Colchester et al. found that a significant majority of the local people interviewed felt palm oil companies had cheated them of their land, persuading them into agreements through false promises and denying them a voice in decision-­‐making.146 The ways in which community land is dubiously acquired by large scale corporation is detailed in table 1. Table 1. Colchester et al. found these mechanisms were most commonly utilized by companies acquiring community land. Source: Marcus Colchester, Norman Jiwan, Andiko, Martua Sirait, Asep Yunan Firdaus, A. Surambo and Herbert Pane, ‘Promised Land: Palm Oil and Land Acquisition in Indonesia: Implications for Local Communities and Indigenous Peoples’ (2006) Forest Peoples Programme, Perkumpulan sawait Watch, HuMA and the World Agroforestry Centre at 15. Dubious mechanisms used to acquire community land Non-­‐recognition of customary rights as land title Circumventing the necessary licences in plantation establishment Not providing information to communities (not being transparent) Refusing to negotiate consensus agreements Manipulating customary leaders into making forced sales Not paying compensation Not providing promised community benefits Not developing smallholders land Encumbering smallholders with unjustifiable debt Carrying out Environmental Impact Statements too late Not developing land within the specified time period Repressing community resistance through coercion Violating human rights Casson argues that companies force local communities to give up their traditional life styles, often without compensation. 147 Similarly, Potter and Lee state that the establishment of palm oil plantations has led to the “systematic dispossession of local people from their land.”148 They argue that this process is facilitated by regional governments who convince local people to surrender their land and participate in company activities.149 Walker speculates the palm oil Howard J. Sargeant, ‘Vegetation Fires in Sumatra, Indonesia. Oil palm agriculture in the wetlands of Sumatra: destruction or development’ (2001) European Union Forest Fire Prevention and Control Project with Dinas Kehutanan Propinsi Sumatera Selatan. European Union and Ministry of Forestry. 146 Marcus Colchester, Norman Jiwan, Andiko, Martua Sirait, Asep Yunan Firdaus, A. Surambo and Herbert Pane, ‘Promised Land: Palm Oil and Land Acquisition in Indonesia: Implications for Local Communities and Indigenous Peoples’ (2006) Forest Peoples Programme, Perkumpulan sawait Watch, HuMA and the World Agroforestry Centre at 15. 145
Anne Casson, ‘Which Way Forward? People, Forests, and Policymaking in Indonesia (2002). Ibid. 148 Lesley Potter and Justin Lee, ‘Tree Planting in Indonesia: Trends, Impacts and Directions’. Occasional Paper No 18. CIFOR, Bogor, Indonesia at x. 149 Ibid. 147
147
26 The Palm Oil Action Group Volunteer Pack industry has led farmers to become “pay-­‐dependent plantation workers whose existence is determined by the global market price of a single plant product.”150 The number and nature of jobs created by the palm oil industry is highly controversial, varying substantially across the literature. By some accounts 4,500,000 people, including workers and immediate families, in Indonesia rely on palm oil plantations as their source of income.151 Others contend the industry has created only 0.12 jobs per hectare, which are often below minimum wage and dangerous.152 There are also concerns that modern, self-­‐funded companies will be less motivated to be socially responsible than previous firms that relied on funds from international agencies or government sources.153 Although all new estates are supposed to be in partnerships with local communities, this requirement is rarely enforced by local authorities.154 Potter and Lee argue that the “behaviour of privately owned, self-­‐funded companies is predominantly profit seeking....with little concern for social issues.”155 3.3 Climate Change Another consequence of the UPPO is the emission of greenhouse gases during plantation establishment and extraction.156 Approximately 15% of all anthropogenic greenhouse gas emissions are a result of global deforestation.157 In order to quickly and efficiently clear land for the establishment of plantations, corporations frequently utilize the ‘controlled burning’ technique. Controlled burning releases large amounts of CO2 into the atmosphere and is hazardous to both workers and existing plantations. The clearing of peat land is even more problematic as it releases considerably more carbon than rainforest.158 Despite a total burning moratorium being implemented by the Indonesian government, many fire `hot spots' in plantation areas are still being observed by satellites.159 Forest and peat fires not only contribute to global warming, but are a major threat to Indonesia’s public health, biodiversity and regional economy.160 Wetlands International has estimated that over 130,000 km2 of peatland forests Eric Wakker, Palm Oil, Crisis and Forest Loss in Indonesia (1998) at 4, http://forests.org/archive/indomalay/oilpalm.htm accessed 15/ 3/10. 151 Howard J. Sargeant, ‘Vegetation Fires in Sumatra, Indonesia. Oil palm agriculture in the wetlands of Sumatra: destruction or development’ (2001) European Union Forest Fire Prevention and Control Project with Dinas Kehutanan Propinsi Sumatera Selatan. European Union and Ministry of Forestry. 152 Gerd Schuster, Willie Smits and Jay Ullal, ‘Thinkers of the Jungle: The Orang-­utan Report’ (2007). 153 Lesley Potter and Justin Lee, ‘Tree Planting in Indonesia: Trends, Impacts and Directions’ (1997) Occasional Paper No 18. CIFOR, Bogor, Indonesia at 23. 154 Ibid. 155 Ibid. 156 Gerd Schuster, Willie Smits and Jay Ullal, ‘Thinkers of the Jungle: The Orang-­utan Report’ (2007). 157 Emily B. Fitzherbert, Matthew J. Struebig, Alexandra Morel, Finn Danielsen, Carsten A. Brühl, Paul F. Donald and Ben Phalan, ‘How will Oil Palm Expansion Affect Biodiversity?’ (2008) Trends in Ecology and Evolution 23 (10) pp 538-­‐545. 158 Emily B. Fitzherbert, Matthew J. Struebig, Alexandra Morel, Finn Danielsen, Carsten A Bruhl, Paul F. Donald and Ben Phalan, ‘How will oil palm expansion affect biodiversity’ (2008) Trends in Ecology and Evolution 23(10). 159 Eric Wakker, Palm Oil, Crisis and Forest Loss in Indonesia (1998) http://forests.org/archive/indomalay/oilpalm.htm accessed 15/ 3/10. 160 ‘Fires in APP/Sinar Mas Concessions Add to Region’s Haze Woes, Threaten New UN Biosphere Reserve’ (Press Release 27 July 2009); Emily B. Fitzherbert, Matthew J. Struebig, Alexandra Morel, Finn Danielsen, Carsten A Bruhl, Paul F. Donald and Ben Phalan, ‘How will oil palm expansion affect biodiversity’ (2008) Trends in Ecology and Evolution 23(10). 150
27 The Palm Oil Action Group Volunteer Pack in south-­‐east Asia has already been deforested and drained.161 Consequently, an average of two giga-­‐tonnes of CO2 is being released annually through decomposition, equivalent to 8% of the total CO2 emissions from fossil fuels. Approximately 90% of these emissions are being released from Indonesia.162 Uryu et al. found the average annual CO2 emissions between 1990 and 2007 emissions from deforestation in the Riau province of Sumatra alone were equivalent to 122% of the Netherlands’ total annual emissions, 58% of Australia’s, 39% that of the UK’s and 26% of Germany’s.163 Figure 8. An Indonesian fire-­‐fighter sprays water on burnt peat land. Peat fires release huge amounts of trapped carbon into the atmosphere. Source: Lands Soaring Carbon Value (2009) Alliance Knowledge Partnersite http://www.google.com.au/imgres?imgurl=http://knowledge.allianz.com/nopi_
downloads/images/peat_land_burning_indonesia_z.jpg&imgrefurl=http://knowl
edge.allianz.com/en/news/viewdetail/peat_lands_carbon_market.html&usg=__h
uM4goBsuP577K76KRO8lzgvmAI=&h=476&w=320&sz=125&hl=en&start=29&i
tbs=1&tbnid=rrDCWSaqzn3EM:&tbnh=129&tbnw=87&prev=/images%3Fq%3D
peat%2Bcauses%2Bemissions%26start%3D18%26hl%3Den%26sa%3DN%26g
bv%3D2%26ndsp%3D18%26tbs%3Disch:1>accessed 20 May 2010. It is estimated that the 1997 fires, which covered 5 million hectares of Indonesia, were responsible for 40% of the total anthropogenic emissions produced that year (Figure 9).164 According to the World Wildlife Fund (WWF) and the Economic and Environment Program for Southeast Asia (EEPSEA) Report165, approximately 80% of the fires in Sumatra and Kalimantan were deliberately Fred Pearce, ‘Bog Barons: Indonesia’s carbon catastrophe’ (2007) New Scientist Ibid. 163 Uryu et al. 2008. Deforestation, Forest Degradation, Biodiversity Loss and CO2 Emissions in Riau, Sumatra, Indonesia. WWF Indonesia Technical Report, Jakarta, Indonesia. Published at: http://www.worldwildlife.org/wildplaces/borneo/updates/disappearingforest.cfm 164 Anne Casson, ‘Which Way Forward? People, Forests, and Policymaking in Indonesia (2002). 164 Ibid. 161
162
Luthfi Fatah and Udiansyah, ‘An Assessment of Forest Management Options For Preventing Forest Fire In Indonesia (2009) Economy and Environment Program for Southeast Asia (EEPSEA) EEPSEA Research Report http://www.idrc.ca/uploads/user-­‐S/12711223671Luthfi_Final_2009-­‐RR9.pdf> accessed 27 June 2010. 165
28 The Palm Oil Action Group Volunteer Pack ignited for the establishment of palm oil plantations.166 Satellite imagery has confirmed these studies.167 Figure 9. A satellite image of atmospheric aerosols, particulate matter, caused by fires in Indonesian peat land forests, between 1997 and 1998. Source: For Peat's Sake! World's Largest Carbon Footprint Revealed! (2008) Red State < http://archive.redstate.com/blogs/vladimir/2007/apr/24/for_peats_sake_worl
ds_largest_carbon_footprint_revealed>accessed 21 May 2010. Recent studies have illustrated that even without fire, the draining of peatland for palm oil plantations emits significant quantities of carbon dioxide.168 This is due to the process of oxidation, whereby deforestation exposes the inorganic molecules in peat to direct sunlight, causing them to decompose.169 This process produces between 130 and 180 tonnes of CO2 per hectare every year. Consequently, each hectare of peatland drained for the establishment of plantations will emit between 3750 and 5400 tonnes over the next decade.170 The palm oil extraction process also releases significant quantities of greenhouse gases. Extraction releases large amounts of methane when the high level of organic matter contained in the waste water decomposes.171 Large quantities of waste water are created when the fruits are removed and sterilized to destroy an enzyme that would cause the palm oil to become rancid.172 3.4 Palm Oil as a Bio-­fuel Palm oil production is increasingly being promoted in sustainable energy campaigns worldwide. With the rapidly increasing oil prices after 2000, the demand for bio-­‐diesel from palm oil significantly increased. It has been estimated that annual world biodiesel requirement by 2050 could be as much as 277 million tonnes, twice the vegetable oil production in 2008 and seven times the total palm oil production.173 Fuel-­‐orientated companies have assumed Eric Wakker, Palm Oil, Crisis and Forest Loss in Indonesia (1998) http://forests.org/archive/indomalay/oilpalm.htm accessed 15/ 3/10. 167 Anne Casson, ‘Which Way Forward? People, Forests, and Policymaking in Indonesia (2002). 167 Ibid. 168 Fred Pearce, ‘Bog Barons: Indonesia’s carbon catastrophe’ (2007) New Scientist. 169 Ibid. 170 Ibid. 171 Yusof Basiron, ‘Palm oil Production through Sustainable Plantations’ (2007) 109 European Journal of Lipid Science and Technology 289. 172 Gerd Schuster, Willie Smits and Jay Ullal, ‘Thinkers of the Jungle: The Orang-­utan Report’ (2007). 173 Emily B. Fitzherbert, Matthew J. Struebig, Alexandra Morel, Finn Danielsen, Carsten A. Brühl, Paul F. Donald and Ben Phalan, ‘How will Oil Palm Expansion Affect Biodiversity?’ (2008) Trends in Ecology and Evolution 23 (10) pp 538-­‐545. 166
29 The Palm Oil Action Group Volunteer Pack prominent roles in the emerging industry.174 Moreover, European countries have promoted the use of palm oil by investing millions of dollars into national subsidies towards biodiesel.175 Consequently, Europe is now a leading importer of palm oil (Figure 10). 176 Ernsting argues that these government subsidies and incentives have artificially boosted the biofuel market.177 Figure 10. The increase in palm oil consumption in EU households. Source: USDA. 2009. Oil Seeds: World Markets and Trade. Circular Series FOP 1-­‐09. Avaliable at Oil Seeds: World Market and Trade Archives (2010) United States Department of Agriculture: Foreign Agricultural Services < http://www.fas.usda.gov/oilseeds_arc.asp>accessed 26 July 2010. However, the long term utilization of palm oil as a biofuel is likely to be unsustainable. The energy saved from using palm oil as a substitute for coal is questionable considering the high energy costs involved with transportation and storage.178 Moreover, clearing one hectare of tropical forest releases between 500 and 900 tonnes of CO2 emissions. As converting a hectare of palm oil into biodiesel saves approximately six tonnes of CO2 emissions annually, it takes 80 to 150 years of production to offset the initial emissions released from deforestation.179 Jordan Nikoloyuk, Tom R, and Reinier de Man, ‘The promise and limitations of partnered governance: the case of sustainable palm oil’ (2009) Corporate Governance 10 (1).pp.59-­‐72. 175 United States Department of Agriculture, Foreign Agricultural Service, Commodity Intelligence Report Indonesia: Palm Oil Production Prospects Continue to Grow (2007) http://www.pecad.fas.usda.gov/highlights/2007/12/Indonesia_palmoil/accessed 19 May 2010. 176 Ibid. 177 Almuth Ernsting, ‘Agrofuels in Asia -­‐ Fuelling poverty, conflict, deforestation and climate change’ (2001) Grain <http://www.grain.org/seedling/?id=479> accessed 17 May 2010. 178 Palm oil must be stored at approximately 50 degrees Celsius in order to keep it in liquid form. (Gerd Schuster, Willie Smits and Jay Ullal, ‘Thinkers of the Jungle: The Orang-­utan Report’ (2007)). 179 Fred Pearce, ‘Bog Barons: Indonesia’s carbon catastrophe’ (2007) New Scientist. 174
30