Lack of sustainability, Oil palm producers’ impediment to funds, markets
By Yemi Olakitan
Most often in developing countries, the oil palm tree is known for providing high-quality cooking oil. Several food items, detergents, cosmetics, and to some extent, biofuel are all in it. Plantations are still expanding to fulfil demand, but at the expense of forests, across Asia, Africa, and Latin America. Many endangered species depend on these vital ecosystems, and some local human communities in such locations depend on them as well.
According to reports, there are less than 100 Cross River Gorillas left in that area of southern Nigeria. On the one hand, poachers, illegal loggers, people building plantations and clearing the forests, and others have collaborated to rob Nigeria of a potential source of tourism income. On the other hand, these famous species, which are indigenous to Nigeria, are in danger of going extinct.
They have suffered the same fate as other species and priceless woodland as a result of despicable agricultural practises, especially the development of oil palm. It has been blamed for driving deforestation in other parts of the world, including Indonesia, the top producer of the good, for the past 20 years, accounting for a third (3 million hectares) of Indonesia’s loss of old-growth forest.
Environmentalists have waged a relentless battle for years to stop the harm that palm oil production’s explosive growth was causing to the environment. The ecosystem was more at risk of future harm if nothing was done as more people throughout the world became addicted to red oil and its dozens of by-products.
Not only the environment but residents of the places that had to be bought and cleared as oil palm plantations grew. Their rights were not protected, and there were no worries about the risks that these actions would cause to their health or the health of other creatures living in such habitats.
Head of Africa at the Roundtable on Sustainable Palm Oil, Elikplim Agbitor, said, “There was a massive outcry about the devastation of orangutan habitats, one of the great apes (RSPO). They began claiming that palm oil might be found in places where gorillas may exist, even in Africa. Take the unique Cross-River gorilla subspecies, for instance.”
At this moment, according to him, a decision was made to come up with a set of specifications that would allow for the certification of sustainable palm oil producers. If having a clear conscience wasn’t enough of a reward, certification would open up more markets for them, particularly in Europe. It would also provide them access to institutional investors who wouldn’t touch an uncertified plantation with a ten-thousand-mile stick.
Before receiving a certificate, the plantation would implement the certification process and then invite an impartial third party to inspect it.
According to Agbitor, “it gives proof that you are functioning in a way that considers the environment and social equitability.” Forests and the homes of various plant and animal species had been extensively cleared prior to that.
“Now you cannot just go and clear; you must conduct a variety of assessments, including evaluations of high carbon stocks, environmental and social implications, and analyses of changes in land use, so that we are aware of the vegetation of the area prior to your coming there. You are not permitted to touch certain types of vegetation,” he explained.
There were discussions of outlawing or boycotting palm oil before the RSPO guidelines were established, namely in Europe and some regions of North America. However, some producers, like Unilever, teamed up with NGOs like the World Wildlife Fund (WWF) to form the RSPO and become founding members. Their goal was to create a set of criteria that could be used to prove that palm oil wasn’t produced in a way that was harmful to the environment or infringed on the rights of local people.
According to Agbitor, the first requirement for palm oil farmers to get accredited is “to appeal to their conscience. When part of those resources must be preserved for future generations while the rest and the water bodies are to be protected, we simply cannot destroy everything. He adds that reputation is another factor, particularly for large corporations. If they make a mistake, the media might report it, which might not be beneficial for their company’s reputation.
Access to financing is the third factor, which, in his opinion, is particularly crucial in Africa. Access to financing is “one of the key reasons most of them are motivated to come to RSPO,” according to Agbitor. Many financial institutions, including the International Finance Corporation (IFC), would demand that a fund seeking perform an evaluation against RSPO guidelines. With this, they can assess the company’s sustainability before deciding whether to provide financing.
“They don’t want to appear to be supporting a business that is not environmentally and socially responsible. Currently, the majority of financial institutions support sustainability concepts, and in order to obtain financing, you must provide evidence that you are dedicated to sustainability,” he said.
Additionally, if an African palm oil producer wanted to export to the European or North American markets, they would need to be RSPO accredited in order to do so. “You have no choice but to be RSPO approved if Europe or North America is your target market; only then can your products enter,” he asserted.
The production of palm oil, according to the World Wildlife Fund (WWF), is a major contributor to climate change, soil and water pollution, air pollution, and the loss of vital habitat for endangered species.