Palm oil is one of the most versaltile and cost efficient vegetable oils, making it the most widely used vegetable oil in the world, particularly in processed foods, but also household cleaners, cosmetics, as well as biofuel and oleochemicals. Palm oil constitutes 36% of the total oil produced worldwide and the demand and production is ever increasing (Lye Chew, 2021). In 1995, 15 million tonnes of palm oil was produced, in 2019 it had increased to 65 million tonnes. The Food and Agriculture Association (FAO) estimates that if we continue along this path, demand will increase to a staggering 156 million tonnes by 2050 (Lye Chew, 2021). The distribution of palm oil is unequally divided with 86% of the world’s supply produced in Malaysia and Indonesia.
Palm oil has played an important role in the socioeconomic development of many of the Asian, Latin American and African regions in which it is produced, creating employment and contributing to poverty reduction. Its production supports the livelihoods of 4.5 million people across Indonesia and Malaysia. Palm oil creates jobs in rural areas where alternative employment is scarce. However, it also has detrimental effects on our environment, causing deforestation as well as community conflict.
The versatility of palm oil expands beyond a food additive, with more than 50% of the palm oil entering Europe being used for biofuel, a renewable and non-toxic fuel (Green Peace, 2019). With a larger yield than other vegetable oils, palm oil is better suited as a biofuel with a potential to produce 3.93 tonnes per hectare per year. This is over three times the yield for rapeseed oil. This is still a land-intensive process. If the rest of the world had the same demand for palm oil biofuel as Europe, a further 4,300,000 hectares of land in the tropics would be needed.
Palm oil contributes to large scale destruction in the tropics through land clearing, deforestation and disruption of biodiversity. To meet the growing demand for palm oil, 5.5 million hectares of forest have been removed for palm oil plantations. It has also threatened the habitat of many endangered species. Half of the Bornean orangutan population has been devastated in the last 16 years as a result and globally, 193 endangered species are threatened by the expansion of palm oil plantations (Green Peace, 2019). 43% of the Tesso Nilo National Park in Sumatra, which is the home of the endangered Sumatran tiger, has been overrun by illegal palm oil plantations (WWF).
Global production of palm oil is also causing harm to air quality, soil and water. This is a result of the excessive pesticide use and liquid waste or effluent that is dumped into waterways, having a knock-on effect on biodiversity and the health of people. In Indonesia, around 25 different pesticides are used with little regulation.
What about sustainable palm oil?
Certified sustainable palm oil (CSPO) is produced by plantations that have been independently audited and certified against the RSPO (Roundtable on Sustainable Palm Oil) standard. Sustainable palm oil is produced under promises that it will not be responsible for any deforestation, peat development or exploitation. However, a debate surrounds sustainable palm oil, with many questioning its sustainability. Many major food companies such as Nestle, use RSPO certified palm oil in their products. The RSPO only banned its members from participating in deforestation in 2018 but many of its plantations are said to still be doing so without consequence. During the forest fires in Indonesia in 2015, many of the palm oil plantations responsible were RSPO certified (Green Peace, 2019).
Sources:
https://www.earthrise.studio/reads/is-palm-oil-the-most-destructive-or-versatile-vegetable-oil
Gatti et al. (2018). Science of The Total Environment. Sustainable palm oil may not be so sustainable
Russell. (2018). Palm Oil: Economic and Environmental Impacts
Chew, C. L., Ng, C. Y., Hong, W. O., Wu, T. Y., Lee, Y. Y., Low, L. E., … & Chan, E. S. (2021). Improving sustainability of palm oil production by increasing oil extraction rate: A review. Food and Bioprocess Technology, 14(4), 573-586.
Greenpeace International. (2019). Greenpeace International Annual Report 2019.