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News articles on Palm Oil

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Mongabay.com news articles on palm oil in blog format. Updated regularly.

UN says palm oil destroys forests, indigenous cultures in Indonesia, Malaysia
(11/26/2007) Europe's demand for supposedly eco-friendly biodiesel is fueling destruction of biodiverse rainforests in southeast Asia, warns a new report from the United Nations Development Programme (UNDP).


Is the oil-palm industry using global warming to mislead the public?
(11/23/2007) Members of the Indonesian Palm Oil Commission are distributing materials that misrepresent the carbon balance of oil-palm plantations, according to accounts from people who have seen presentations by commission members. These officials are apparently arguing that oil-palm plantations store and sequester many times the amount of CO2 as natural forests, and therefore that converting forests for plantations is the best way to fight climate change. In making such claims, these Indonesian representatives evidently are ignoring data that show the opposite, putting the credibility of the oil-palm industry at risk, and undermining efforts to slow deforestation and rein in greenhouse gas emissions.


Carbon offset returns beat forest conversion for agriculture in Indonesia
(11/21/2007) Conversion of forests and peatlands for agriculture in Indonesia has generated little economic benefit while releasing substantial amounts of greenhouse gases into the atmosphere, reports a new study from the the World Agroforestry Centre (ICRAF), the Center for International Forestry Research (CIFOR) and their Indonesian partners.


Law enforcement key to saving Borneo's rainforests
(11/13/2007) In an interview with mongabay.com, Dr. Rhett Harrison, a Smithsonian Tropical Research Institute (STRI) associate researcher and Secretary for the Asia-Pacific Chapter of ATBC, says that law enforcement could be the key to safeguarding biodiversity contained in Borneo's lowland parks. Harrison says there may be opportunities for conservationists to work with oil palm to developers to ensure that existing forests are not converted for plantations and that palm oil can be produced in a sustainable manner. He also adds that carbon offsets may eventually offer a means to fund conservation and sustainable development efforts in areas that still have standing forest.


Greenwashing the palm oil industry
(11/12/2007) A new report from Greenpeace alleges that members of the Roundtable on Sustainable Palm Oil -- an industry-driven initiative to clean up palm oil production -- are using palm oil derived by clearing endangered rainforests and draining carbon-rich peatlands on the Indonesian island of Sumatra.


Planned logging of Woodlark Island for biofuels opposed by islanders and scientists
(11/12/2007) On Woodlark Island, one-hundred and seventy miles from Papua New Guinea, a struggle is occurring between islanders and biofuel company Vitroplant Ltd. The company is planning to clear much of the island's forest for oil palm plantations to produce biofuels. Vitorplant Ltd.'s contract specifies that they would deforest 60,000 hectares of land for plantations; Woodlark Island is 85,000 hectares in total, meaning over 70% of the island would be converted. Last week, one hundred islanders (out of a total population of 6,000) traveled to the capital of Milne Bay Province, Alotau, to voice their concern over the plans to turn their forested island into plantations.


Oil palm does not store more carbon than forests
(11/8/2007) Officials from the Indonesian ministry of agriculture and the palm oil industry are distributing materials that misrepresent the carbon balance oil palm plantations, according to accounts from people who have seen presentations by members of the Indonesian Palm Oil Commission. Ministry of agricultural officials are apparently arguing that oil palm plantations store and sequester many times the amount of CO2 as natural forests and therefore converting forests for plantations is the best way to fight climate change. In making such claims, these Indonesian officials are ignoring data that show the opposite, putting the credibility of the oil palm industry at risk, and undermining efforts to slow deforestation and reign in greenhouse gas emissions.


Dutch: no subsidies for biofuels-driven rainforest destruction
(10/31/2007) The Dutch government will exclude palm oil from "green energy" subsidies as growing evidence suggests that palm oil is often less sustainable than advertised.


Avoided deforestation beats timber, palm oil, in tax revenue for Indonesia
(10/29/2007) Indonesia could more than double its tax revenue by protecting forests and selling the resulting carbon emission credits instead of timber and palm oil, a University of Michigan researcher told Bloomberg.


Does palm oil alleviate rural poverty in Malaysia?
(10/23/2007) While it is often argued that the economic benefits of oil palm plantations outweigh the environmental costs of converting biodiverse ecosystems to monocultures, new analysis suggests that the role of plantations in reducing rural poverty may be overstated.


Biodiesel demand could destroy world's forests
(10/4/2007) Growing demand for biodiesel could drive large-scale forest conversion for energy crops, warns a study published in Conservation Biology.


Environmentalists and palm oil producers should work together
(9/25/2007) Environmentalists and palm-oil producers are increasingly at odds. Greens groups say palm oil is driving the conversion of tens of thousands of hectares of peatlands and lowland forest in Indonesia, putting wildlife at risk, increasing the vulnerability of forests to fires, and triggering large emissions of greenhouse gases.


Investigation finds evidence of Borneo forest clearing for palm oil
(9/2/2007) An Associated Press investigation found evidence of workers opening up rainforest land for new oil palm plantations in the heart of Borneo.


NGOs should use palm oil to drive conservation
(8/29/2007) Environmentalists view the expansion of oil palm plantations in southeast Asia as one of the greatest threats to the region's forests and biodiversity. Campaigners say oil palm is driving the conversion of tens of thousands of hectares of peatlands and lowland forest in Indonesia and Malaysia, putting wildlife at risk, increasing the vulnerability of the forests to fires, and triggering large emissions of greenhouse gases. Pressure from these groups have in recent months convinced European policymakers to reconsider sourcing energy crop production to the region.


Indonesia's peatlands may offer U.S. firms global warming offsets
(8/29/2007) The following is modified version of a letter I've used to pitch U.S. companies on the concept of carbon finance in Indonesia's peatlands. Discussions are slow and the critical December U.N. climate meeting is fast approaching, so I'm posting this as a tool to help you get American firms interested in avoided deforestation offsets. Please feel free to use, modify, and distribute this letter widely.


How private equity can profit from carbon offsets in Indonesia
(8/29/2007) The emerging carbon market for avoided deforestation presents unprecedented opportunities for private equity to make profitable investments that also help protect the environment. Indeed, for the first time, conservation may be associated with positive financial returns. Here's a brief look at how private equity and other investors can capitalize on this opportunity to earn attractive returns while fighting climate change, protecting ecosystem services, and safeguarding endangered species like orangutans.


Could peatlands conservation be more profitable than palm oil?
(8/22/2007) This past June, World Bank published a report warning that climate change presents serious risks to Indonesia, including the possibility of losing 2,000 islands as sea levels rise. While this scenario is dire, proposed mechanisms for addressing climate change, notably carbon credits through avoided deforestation, offer a unique opportunity for Indonesia to strengthen its economy while demonstrating worldwide innovative political and environmental leadership. In a July 29th editorial we argued that in some cases, preserving ecosystems for carbon credits could be more valuable than conversion for oil palm plantations, providing higher tax revenue for the Indonesian treasury while at the same time offering attractive economic returns for investors.


Is peat swamp worth more than palm oil plantations?
(7/16/2007) Could peat swamp be worth more intact for their carbon value than palm oil plantations for their oil? Quick analysis suggests yes, though binding limits on emissions will be needed to trigger the largest ever flow of money from the industrialized world to developing countries. At stake: the bulk of the world's biodiversity.


Cosmetics retailer announces sustainable palm oil initiative
(7/12/2007) The Body Shop International today introduced a sustainable palm oil initiative, the first for the beauty industry. The company said the move was spurred by growing concerns over the impact of oil palm plantations on biodiversity.


98% of orangutan habitat gone in next 15 years
(6/11/2007) Indonesia is losing more than 2.1 million hectares (5.2 million acres) of forest a year to illegal loggers, states a new report from the U.N. Environment Program (UNEP). The report, which estimates the value of illicit timbering at $4 billion annually, warns that 98 percent of Indonesia's lowland forests will be gone by 2022, putting species like the orangutan at risk of extinction in the wild. The report, Last stand of the Orang-utan: State of Emergency, was released Monday at the Convention on International Trade in Endangered Species meeting in The Hague.


Indonesia: No more rainforest clearing for palm oil
(6/5/2007) Indonesian Minister for Environment Rachmat Witoelar said Indonesia will not allow palm oil producers to clear primary forests for establishing plantations, reports Bloomberg. Indonesia is expected to surpass Malaysia as the world largest producer of palm oil this year. The government hopes to add 7 million hectares of plantations by 2011.


Uganda abandons rainforest logging for palm oil
(5/27/2007) The Ugandan government abandoned plans to log thousands of hectares of rainforest on Bugala island in Lake Victoria for a palm oil plantation, Reuters reported Saturday.


EU will demand sustainable biofuel production
(5/24/2007) The European Commission is planning new criteria to ensure that biofuels are produced in an environmentally-friendly manner, reports Reuters. The move comes a month after the Dutch issued voluntary guidelines for biofuel production.


Experts: Borneo in urgent need of protection
(5/23/2007) A prominent group of 1500 scientists in over 70 countries have called for the urgent conservation of Borneo's forests, which are fast-disappearing on the southeast Asian island due to logging, fires, and conversion for oil palm plantations.


Biofuels displace indigenous people
(5/15/2007) Indigenous people are being pushed off their lands to make way for an expansion of biofuel crops around the world, threatening to destroy their cultures by forcing them into big cities, the head of a U.N. panel said Monday.


Environmental concerns mount as palm oil production grows
(5/15/2007) The booming market for palm oil is driving record production but fueling rising concerns over the environmental impact of the supposedly "green" bioenergy source. The two leading producers of palm oil, Malaysia and Indonesia, have rapidly expanded palm oil production in recent years, often at the expense of biodiverse rainforests and carbon-rich peatlands that store billions of tons of greenhouse gases. Environmentalists say that due to these factors, burning of palm oil can at times be more damaging the global climate than the use of fossil fuels.


UN warns on dangers of bioenergy
(5/9/2007) Biofuels offer "an extraordinary opportunity" to reduce greenhouse gas emissions but could make "substantial demands on the world's land and water resources at a time when demand for both food and forest products is also rising rapidly," said the U.N. in its first assessment on the growing bioenergy industry.


Massive oil palm expansion planned by Indonesia's richest man
(5/8/2007) Indonesia's richest man plans to spend $4 billion to expand his company's palm oil, energy, and pulp and paper holdings, according to a report from Reuters.


Dutch plan restricts biofuels that damage environment
(4/29/2007) The Netherlands has proposed a system to reduce the environmental impact of biofuels production. The country becomes the first in the world to establish such guidelines. Environmentalists have expressed increasing concern for the establishment of energy crops in biodiverse and carbon-rich ecosystems like the peatlands of Indonesia and the Amazon rainforest. They say that conversion of these forests for oil palm and soybeans is threatening endangered species and worsening global warming. Further, they warn, demand for such biomass energy products is driving up prices for food crops.


Dutch will demand rainforest-friendly palm oil
(4/27/2007) In a report scheduled to be released today, the Dutch government will outline criteria for growing biofuels in a more sustainable manner. The guidelines will be closely watched by the rest of Europe, which is currently struggling with the environmental pros and cons of large-scale energy crop production, especially in ecologically-sensitive areas like the Amazon and Indonesian rainforests.


Palm oil doesn't have to be bad for the environment
(4/4/2007) As traditionally practiced in southeast Asia, oil palm cultivation is responsible for widespread deforestation that reduces biodiversity, degrades important ecological services, worsens climate change, and traps workers in inequitable conditions sometimes analogous to slavery. This doesn't have to be the case. Following examples set forth by the Roundtable on Sustainable Palm Oil and firms like Golden Hope Plantations Berhad, a Malaysian palm oil producer, oil palm can be cultivated in a manner that helps mitigate climate change, preserves biodiversity, and brings economic opportunities to desperately poor rural populations.


Eco-friendly palm oil could help alleviate poverty in Indonesia
(4/3/2007) The Associated Press (AP) recently quoted Marcel Silvius, a climate expert at Wetlands International in the Netherlands, as saying palm oil is a failure as a biofuel. This would be a misleading statement and one that doesn't help efforts to devise a workable solution to the multiplicity of issues surrounding the use of palm oil.


Indonesia is 3rd largest greenhouse gas producer due to deforestation
(3/26/2007) Indonesia trails only the United States and China in greenhouse gas emissions, reports a study released Friday by the World Bank and the British government.


Borneo
(2/22/2007) Borneo, the third largest island in the world, was once covered with dense rainforests. With swampy coastal areas fringed with mangrove forests and a mountainous interior, much of the terrain was virtually impassable and unexplored. Headhunters ruled the remote parts of the island until a century ago. In the 1980s and 1990s Borneo underwent a remarkable transition. Its forests were leveled at a rate unparallel in human history. Borneo's rainforests went to industrialized countries like Japan and the United States in the form of garden furniture, paper pulp and chopsticks. Initially most of the timber was taken from the Malaysian part of the island in the northern states of Sabah and Sarawak. Later forests in the southern part of Borneo, an area belonging to Indonesia and known as Kalimantan, became the primary source for tropical timber. Today the forests of Borneo are but a shadow of those of legend and those that remain are highly threatened by the emerging biofuels market, specifically, oil palm.


98% of orangutan habitat in Borneo, Sumatra gone by 2022
(2/6/2007) A report from the United Nations Environment Programme (UNEP) today warns that illegal logging is rapidly destroying the last remaining habitat for orangutans in Borneo and Sumatra. The report says that up to 98 percent may be destroyed by 2022 without urgent action.


Biofuels could decimate environment, stymie developing countries, says report
(1/25/2007) In his State of the Union Address Tuesday night, U.S. President George W. Bush highlighted ethanol fuel production as a means to improve domestic security by reducing dependence on foreign oil while at the same time helping to fight global warming. His call echoes a broader shift in sentiment among business and political leaders who believe that biofuels -- liquid fuels produced 'energy crops' including sugarcane, corn, soybeans, oil palms -- are a key future liquid energy source. In fact, next week, biofuels are likely to take a prominent position at the European Union's 'Sustainable Energy Week' in Brussels when 650 delegates will listen to speeches by the likes of Al Gore and UK foreign minister Margaret Beckett. With all the enthusiasm it may seem that biofuels are the end-all solution. A new report argues that this is not the case. In its briefing, 'International trade in biofuels: Good for development? And good for environment?' the International Institute for Environment and Development (IIED) cautions policymakers not to get caught up in all the hype. IIED warns that serious concerns still remain when it comes to the widespread adoption of these renewable energy sources.


China invests in $5.5B biofuels project in Borneo, New Guinea
(1/18/2007) China has agreed to invest in a $5.5 billion biofuels project on the islands of New Guinea and Borneo. The plan promises to be controversial among environmentalists who say that it will destroy some of the world's most biodiverse -- and threatened -- ecosystems on the planet.


Borneo governor arrested in rainforest for palm oil fraud
(12/20/2006) The governor of East Kalimantan on Indonesian part of the island of Borneo has been suspended and faces life in prison for his involvement in an oil palm plantation scheme that caused the deforestation of a million hectares of tropical rainforest.


Fires in Indonesia kill 1,000 endangered orangutans
(11/6/2006) 1000 orangutans perished this year in forest fires that raged across Borneo and Sumatra according to a conservationist interviewed by Reuters. Willie Smits, an ecologist at the Borneo Orangutan Survival Foundation in Indonesia, told Reuters that the fires forced hungry orangutans into agricultural areas where they were killed as pests. Orangutans are known for feeding on fruit of oil palm and other crops in fields adjacent to forest areas.


Biofuels can lead to deforestation says Unilever executive
(8/11/2006) While biofuels are hyped for their potential to off-set fossil fuel use, the shift toward their use should proceed with caution warns Alan Jope, vice president of consumer products giant Unilever. In an August 7 interview with The Times, Jope said that the environmental drawbacks of biofuels is overlooked.


Saving Orangutans in Borneo
(5/24/2006) A look at conservation efforts in Kalimantan, on the island of Borneo. I'm in Tanjung Puting National Park in southern Kalimantan on the island of Borneo. At 400,000 hectares (988,000 acres) Tanjung Puting is the largest protected expanse of coastal tropical heath and peat swamp forest in southeast Asia. It's also one of the biggest remaining habitats for the critically endangered orangutan, the population of which has been great diminished in recent years due to habitat destruction and poaching. And orangutans have become the focus of a much wider effort to save Borneo's natural environment. We are headed to Campy Leakey, named for the renowned Kenyan paleontologist Louis Leakey. Here lies the center of the Orangutan Research Conservation Project. Established by Birute Mary Galdikas, a preeminent primatologist and founder of the Orangutan Foundation International (OFI), the project seeks to support the conservation and understanding of the orangutan and its rain forest habitat while rehabilitating ex-captive individuals. The Orangutan Research Conservation Project is the public face of orangutan conservation in this part of Kalimantan, the Indonesia-controlled part of Borneo. Borneo, the third largest island in the world, was once home to some of the world's most majestic, and forbidding forests. With swampy coastal areas fringed by mangrove forests and a mountainous interior, much of the terrain was virtually impassable and unexplored. Headhunters ruled the remote parts of the island until a century ago.


Indonesia to have first biodiesel plant by 2008
(5/21/2006) Indonesia plans first to complete its first biodiesel plant by 2008. The $25 million plant, built by PT Bakrie Sumatera Plantations Tbk (BSP) and PT Rekayasa Industri (Rekin), will have a capacity of 60,000 to 100,000 metric tons a year. The plant will use crude palm oil (CPO) and other feedstock.


High oil prices fuel bioenergy push
(5/9/2006) High oil prices and growing concerns over climate change are driving investment and innovation in the biofuels sector as countries and industry increasingly look towards renewable bioenergy to replace fossil fuels. Bill Gates, the world's richest man, has recently invested $84 million in an American ethanol company while global energy gluttons ranging from the United States to China are setting long-term targets for the switch to such fuels which potentially offer a secure domestic source of renewable energy and fewer environmental headaches. Biofuels are fuels that are derived from biomass, including recently living organisms like plants or their metabolic byproducts like cow manure. Unlike fossil fuels -- like coal, petroleum, and natural gas, which are finite resources -- biofuels are a renewable source of energy that can be replenished on an ongoing basis. In general, biofuels are biodegradable and, when burned, have fewer emissions than traditional hydrocarbon-based fuels. Typically, biofuels are blended with traditional petroleum-based fuels, though it is possible to run existing diesel, engines purely on biodiesel, something which holds a great deal of promise as an alternative energy source to replace fossil fuels. Further, because biofuels are generally derived from plants which absorb carbon from the atmosphere as they grow, biofuel production offers the potential to help offset carbon dioxide emissions and mitigate climate change.


Why is palm oil replacing tropical rainforests?
(4/25/2006) In a word, economics, though deeper analysis of a proposal in Indonesia suggests that oil palm development might be a cover for something more lucrative: logging. Recently much has been made about the conversion of Asia's biodiverse rainforests for oil-palm cultivation. Environmental organizations have warned that by eating foods that use palm oil as an ingredient, Western consumers are directly fueling the destruction of orangutan habitat and sensitive ecosystems. So, why is it that oil-palm plantations now cover millions of hectares across Malaysia, Indonesia, and Thailand? Why has oil palm become the world's number one fruit crop, trouncing its nearest competitor, the humble banana? The answer lies in the crop's unparalleled productivity. Simply put, oil palm is the most productive oil seed in the world. A single hectare of oil palm may yield 5,000 kilograms of crude oil, or nearly 6,000 liters of crude.


Borneo rainforest protected, oil palm plantation canceled
(3/28/2006) Today Indonesia announced its would end plans to establish a 1.8 million hectare oil plantation in the rainforest of Borneo. The proposed plan, which was backed by Chinese investments, would have destroyed one of the most biodiverse ecosystems on Earth.


Malaysia's deforestation rate increasing rapidly - 86% jump since 1990s
(12/28/2005) Malaysia's deforestation rate is accelerating faster than any other tropical country in the world according to data from the United Nations.


Eco-friendly palm oil coming soon, criteria could result in cleaner biofuels
(11/23/2005) Consumers can soon enjoy soap, shampoos and many other products containing palm oil with a clean conscience following overwhelmingly acceptance by the Roundtable for Sustainable Palm Oil (RSPO) -- a group of producers, buyers, retailers, financial institutions and NGOs -- on a set of criteria for the responsible production of palm oil.


Bird sanctuary in Malaysia damaged by illegal logging and forest clearing
(9/26/2005) According to the New Straits Times, loggers are illegally clearing the protected forest of Gunung Panti to plant oil palm.


Malaysia to build palm oil biodiesel plants to counter high oil price
(9/26/2005) According to the AFP, Malaysia announced that it will build three plants to produce biodiesel from palm oil, as part of efforts to reduce its dependency on foreign oil and increase demand for domestically produced palm oil.


Palm oil plantations decimating orang-utans says report
(9/23/2005) UK company demand for palm oil, a vegetable oil found in one in ten products on supermarket shelves, is driving the orang-utan towards extinction, new research reveals. The `Oil for Ape Scandal', published today by Friends of the Earth and the world's leading orang-utan conservation groups, concludes that without urgent intervention the palm oil trade could cause the extinction of Asia's only great ape within 12 years.



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