Forests have been cleared in parts of Indonesia and Malaysia to make space for oil-palm
monoculture. This has
significant impacts on the local ecosystems leading to
deforestation and
biodiversity loss. For example, these processes have resulted in significant acreage losses of the natural habitat of the three surviving species of
orangutan. One species in particular, the
Sumatran orangutan, has been listed as
critically endangered because of habitat loss due to palm oil cultivation.
Social , the forest (F), is being replaced by oil palm plantations (G). These changes are irreversible for all practical purposes (H). In addition to environmental concerns, palm oil development in specific regions that produce it has also led to significant
social conflict. Journalists and NGO researchers have found that regions with fast growing palm oil production have experienced significant violations of indigenous tribe land rights, human trafficking, sexual abuses, and other related human rights violations. The palm oil industry has had both positive and negative impacts on workers,
indigenous peoples, and residents of palm oil producing communities. Palm oil production provides employment opportunities, and has been shown to improve
infrastructure, social services and also help reduce poverty. However, in some cases, oil palm plantations have developed lands without consultation or compensation of the indigenous people inhabiting the land, resulting in social conflict. The use of
illegal immigrants in Malaysia has also raised concerns about working conditions within the palm oil industry. Some social initiatives use palm oil cultivation as part of poverty alleviation strategies. Examples include the UN Food and Agriculture Organisation's hybrid oil palm project in Western Kenya, which improves incomes and diets of local populations, and Malaysia's
Federal Land Development Authority and Federal Land Consolidation and Rehabilitation Authority, which both support rural development.
Food vs. fuel The use of palm oil in the production of biodiesel has led to concerns that the need for fuel is being placed ahead of the need for food, leading to
malnutrition in developing nations. This is known as the food versus fuel debate. According to a 2008 report published in the
Renewable and Sustainable Energy Reviews, palm oil was determined to be a sustainable source of both food and biofuel, and the production of palm oil biodiesel does not pose a threat to edible palm oil supplies. According to a 2009 study published in the
Environmental Science and Policy journal, palm oil biodiesel might increase the demand for palm oil in the future, resulting in the expansion of palm oil production, and therefore an increased supply of food.
Human rights abuses ) in which palm oil is produced. One report indicated numerous allegations of
human rights abuses in the production of palm oil in Indonesia and Malaysia, including exposure to hazardous
pesticides,
child labor,
rape and
sexual abuse, and unsafe carrying loads, among other human rights violations. These incidents may receive no response by the company, police, or other law enforcement group, or are left unreported because victims fear retaliation from their abuser. Pesticides used by palm oil plantations include
paraquat, which has been banned in Europe over links to
Parkinson's disease, and
glyphosate, which has been involved in a US class-action lawsuit regarding cancer (the
European Chemicals Agency (ECHA) classified glyphosate as causing serious eye damage but did not find evidence implicating it as a carcinogen). Reports of indigenous peoples and communities in Indonesia, indicate losing farmland and traditionally significant land due to palm oil industry expansion. In 2017, there were over 650 different land disputes between palm oil plantations and indigenous landowners. Indigenous communities also expressed concern over the loss of natural resources, such as wild rubber, reed, and
adat forests (communal forests). Other concerns when it comes to indigenous communities being impacted include lack of government oversight on palm oil plantations, political corruption, or the lack of enforcement of laws meant to protect indigenous lands. In countries such as Guatemala, palm oil plantations have significant leverage within the local justice system, leading local police to disregard land claims, going as far as using force to break up protests, and even murdering local leaders.
Environmental While only 5% of the world's vegetable oil farmland is used for palm plantations, palm cultivation produces 38% of the world's total vegetable oil supply. In terms of oil yield, a palm plantation is 10 times more productive than
soybean,
sunflower or
rapeseed cultivation because the palm fruit and
kernel both provide usable oil. Palm oil is the most sustainable vegetable oil in terms of yield, requiring one-ninth of land used by other vegetable oil crops. In the future, laboratory-grown microbes might achieve higher yields per unit of land at comparable prices. However, palm oil cultivation has been criticized for its impact on the natural environment, including
deforestation, loss of natural habitats, and
greenhouse gas emissions which have threatened
critically endangered species, such as the
orangutan and
Sumatran tiger.
Slash-and-burn techniques are still used to create new plantations across palm oil producing countries. From January to September 2019, 857,000 hectares of land was burned in Indonesia; peatlands accounted for more than a quarter of the burned area. The widespread deforestation and other environmental destruction in Indonesia, much of which is caused by palm oil production has often been described by academics as an
ecocide. Furthermore, a study of palm oil in Cameroon showed that land occupied by palm oil plantations can reduce ecosystem quality by 30–45% compared to the potential natural vegetation state. This land use change also creates a
carbon debt, which can take approximately 45–53 years to offset greenhouse gas emissions reductions. , to make way for an
oil palm plantation A 2018 study by the
International Union for Conservation of Nature (IUCN) concluded that palm oil is "here to stay" due to its higher productivity compared with many other vegetable oils. The IUCN maintains that replacing palm oil with other vegetable oils would necessitate greater amounts of agricultural land, negatively affecting
biodiversity. The IUCN advocates better practices in the palm oil industry, including the prevention of plantations from expanding into forested regions and creating a demand for certified and sustainable palm oil products. Many of the companies told
The Guardian they were working to improve their performance. A
WWF scorecard rated only 15 out of 173 companies as performing well. In 2020 a study by
Chain Reaction Research concluded that NDPE (No Deforestation, No Peat, No Exploitation) policies cover 83% of palm oil refineries. NDPE policies are according to the Chain Reaction Research the most effective private mechanism to cut the direct link with deforestation, due to the economic leverage refineries have over palm oil growers. Palm oil is one of seven commodities included in the 2023
EU Regulation on Deforestation-free products (EUDR), which aims to guarantee that the products
European Union (EU) citizens consume do not contribute to deforestation or
forest degradation worldwide.
Comparative environmental impacts with fossil fuels Compared to fossil fuels, palm oil systems have lower non-renewable energy consumption,
global warming potential (GWP, excluding land-use change), and acidification potential than fossil fuel alternatives. As a biofuel, palm oil increases
eutrophication potential (EP). ==Production==