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a. Oil Palm
Palm oil, obtained from the fruits of oil palms, is one of the most abundant vegetable oils in the world, with global production estimated at approximately 46
million tons (2010 estimate, Yushi (Oils and Fats) 2011). In addition to its use in
food products such as cooking oil, margarine, and shortening, it is used as a raw
material for soap and increasingly for the production of biodiesel fuel. The main
producers of palm oil are Indonesia and Malaysia. Although the proportion of their
palm oil output that is used as a raw material for biofuels is relatively small, demand
for food products is growing, and the conversion of forests and peat lands to plantations has become a problem. In view of this, in 2003 the Roundtable on Sustainable
Palm Oil (RSPO) was formed to promote sustainable methods of oil palm cultivation and palm oil production. RSPO members include oil palm growers, palm oil
processors and traders, consumer good manufacturers, retailers, banks and investors, and NGOs. Currently, there are more than 400 members and 110 supporting
members.
RSPO has set forth eight principles and 39 criteria to promote sustainable production and consumption. For example, its environmental standards and indicators
stipulate that after 2005 new plantations must not be converted from virgin forest or
areas of high conservation value and that levels of pollution and waste products
must be reduced. To prove that these standards and indicators are strictly observed,
a certification system was introduced for plantations and extraction plants, and a
COC certification system was introduced for the supply chain. For regular certification, the certifying body visits the plantation or plant to conduct an auditing, during
which they examine documentation and the site/facilities and interview relevant
parties. A summary of the auditing report is then posted on the Internet. For COC
certification, in addition to an identity preserved (IP) system that allows the use of
palm oil produced by certified facilities, segregation (SG) and mass balance (MB)
systems were also adopted. Book and Claim (BC) was also introduced for credit
trading. Also, to promote awareness among consumers, RSPO developed a trademark, which is expected to come into use in 2011. As of January 2011, there were
81 certified processing plants and a total of approximately 760,000 ha of certified
plantations in Malaysia and Indonesia, and 3.8 million tons of palm oil has so far
been certified (Bangan 2011). Nonetheless, RSPO still faces significant problems.
Standards and indicators relating to greenhouse gases are still only under consideration, and the demand for certified palm oil is low relative to the supply.
b. Soybeans
Soybeans account for approximately 29% of the total worldwide production of
vegetable oil, second only to palm oil. Like the palm oil industry, in 2006 the
Roundtable on Responsible Soy (RTRS) was founded, with the aim of promoting
the responsible production and use of soybeans, through the participation of stakeholders and the application of international standards. The membership of RTRS is
made up of growers, the soybean oil industry, traders, financial institutions, and
NGOs, while individuals and governments can participate as observers. As of 2009
the total membership was approximately 110 organizations, of which half were
13 Key Strategies for Policymakers
a. Oil Palm
Palm oil, obtained from the fruits of oil palms, is one of the most abundant vegetable oils in the world, with global production estimated at approximately 46
million tons (2010 estimate, Yushi (Oils and Fats) 2011). In addition to its use in
food products such as cooking oil, margarine, and shortening, it is used as a raw
material for soap and increasingly for the production of biodiesel fuel. The main
producers of palm oil are Indonesia and Malaysia. Although the proportion of their
palm oil output that is used as a raw material for biofuels is relatively small, demand
for food products is growing, and the conversion of forests and peat lands to plantations has become a problem. In view of this, in 2003 the Roundtable on Sustainable
Palm Oil (RSPO) was formed to promote sustainable methods of oil palm cultivation and palm oil production. RSPO members include oil palm growers, palm oil
processors and traders, consumer good manufacturers, retailers, banks and investors, and NGOs. Currently, there are more than 400 members and 110 supporting
members.
RSPO has set forth eight principles and 39 criteria to promote sustainable production and consumption. For example, its environmental standards and indicators
stipulate that after 2005 new plantations must not be converted from virgin forest or
areas of high conservation value and that levels of pollution and waste products
must be reduced. To prove that these standards and indicators are strictly observed,
a certification system was introduced for plantations and extraction plants, and a
COC certification system was introduced for the supply chain. For regular certification, the certifying body visits the plantation or plant to conduct an auditing, during
which they examine documentation and the site/facilities and interview relevant
parties. A summary of the auditing report is then posted on the Internet. For COC
certification, in addition to an identity preserved (IP) system that allows the use of
palm oil produced by certified facilities, segregation (SG) and mass balance (MB)
systems were also adopted. Book and Claim (BC) was also introduced for credit
trading. Also, to promote awareness among consumers, RSPO developed a trademark, which is expected to come into use in 2011. As of January 2011, there were
81 certified processing plants and a total of approximately 760,000 ha of certified
plantations in Malaysia and Indonesia, and 3.8 million tons of palm oil has so far
been certified (Bangan 2011). Nonetheless, RSPO still faces significant problems.
Standards and indicators relating to greenhouse gases are still only under consideration, and the demand for certified palm oil is low relative to the supply.
b. Soybeans
Soybeans account for approximately 29% of the total worldwide production of
vegetable oil, second only to palm oil. Like the palm oil industry, in 2006 the
Roundtable on Responsible Soy (RTRS) was founded, with the aim of promoting
the responsible production and use of soybeans, through the participation of stakeholders and the application of international standards. The membership of RTRS is
made up of growers, the soybean oil industry, traders, financial institutions, and
NGOs, while individuals and governments can participate as observers. As of 2009
the total membership was approximately 110 organizations, of which half were
13 Key Strategies for Policymakers