Sustainable Palm Oil Certification Scheme Frameworks and Impacts: A Systematic Literature Review

Palm Oil (Elaeis guineensis): A Journey through Sustainability, Processing, and Utilization

Palm oil, derived from Elaeis guineensis, is a critical component of the global edible oil and industrial fat market. This review provides a comprehensive overview of the sustainability of the palm oil chain, focusing on industrial applications, environmental implications, and economic sustainability. The processing of palm oil, from fruit pulp to refined oil, is detailed, highlighting the importance of refining in maintaining quality and extending application ranges. While palm oil offers health benefits because of its rich fatty acid composition and antioxidant properties, its production poses significant environmental challenges. This review underscores ongoing efforts to balance technological and culinary demands with environmental stewardship and sustainable economic growth. Emerging trends, including interspecific hybrids such as E. guineensis and E. oleifera, are discussed for their potential to increase sustainability and productivity.

Modeling the impacts of oil palm plantations on water quantity and quality in the Kais River Watershed of Indonesia

Oil palm plantations can impact hydrological processes in many tropical watersheds. The rapid conversion of tropical rainforests for commercial operations in recent decades has been associated with water scarcity, flooding, and polluted rivers. However, this widespread and emerging issue is less studied and underreported due to limited data availability, modeling complexity, and the remote nature of these landscapes. Ecohydrologic modeling enables us to investigate changes in watershed conditions caused by large-scale land cover changes from plantations. This study examines the impact of oil plantations on water quantity and quality using the SWAT+ model in the Kais River Watershed, West Papua, Indonesia. The objective is to assess the hydrological changes concerning land cover conversion to oil palm plantations. Results show that establishing oil palm plantations increased surface runoff by 21 %, and sediment yields rose by 16.9 % compared to the baseline. There was also a significant increase of 78 % in mean annual total nitrogen and 144 % in total phosphorous after the plantations' establishment. The results show that forest conversion to oil palm plantations in the Kais River watershed is a primary driver of change in hydrological regimes, resulting in the deterioration of water quality. There is a need for conservation strategies to mitigate the impacts of significant landscape changes in watershed ecosystems.

Smallholder oil palm plantation sustainability assessment using multi-criteria analysis and unmanned aerial vehicles

Oil palm agriculture has caused extensive land cover and land use changes that have adversely affected tropical landscapes and ecosystems. However, monitoring and assessment of oil palm plantation areas to support sustainable management is costly and labour-intensive. This study used an unmanned aerial vehicles (UAV) to map smallholder farms and applied multi-criteria analysis to data generated from orthomosaics, to provide a set of sustainability indicators for the farms. Images were acquired from a UAV, with structure from motion (SfM) photogrammetry then used to produce orthomosaics and digital elevation models of the farm areas. Some of the inherent problems using high spatial resolution imagery for land cover classification were overcome by using texture analysis and geographic object-based image analysis (OBIA). Six spatially explicit environmental metrics were developed using multi-criteria analysis and used to generate sustainability indicator layers from the UAV data. The SfM and OBIA approach provided an accurate, high-resolution (~5 cm) image-based reconstruction of smallholder farm landscapes, with an overall classification accuracy of 89%. The multi-criteria analysis highlighted areas with lower sustainability values, which should be considered targets for adoption of sustainable management practices. The results of this work suggest that UAVs are a cost-effective tool for sustainability assessments of oil palm plantations, but there remains the need to plan surveys and image processing workflows carefully. Future work can build on our proposed approach, including the use of additional and/or alternative indicators developed through consultation with the oil palm industry stakeholders, to support certification schemes such as the Roundtable on Sustainable Palm Oil (RSPO).

Could global norms enable definition of sustainable farming systems in a transformative international trade system?

This paper aims to support differentiation between sustainable and unsustainable agricultural production, with a view to enabling a transformative agricultural trade system by incentivizing sustainable agricultural production. We argue that transformative governance of corresponding global trade flows will need to provide support to the weaker participants in production systems, above all small-scale farmers in the global South, in order to support their food security and a path out of poverty as well as global environmental goals. The present article seeks to provide an overview of internationally agreed norms that can serve as basis for differentiation between sustainable and unsustainable agricultural systems. Such common objectives and benchmarks could then be used in multilateral and binational trade agreements. We propose a list of objectives, criteria, and benchmarks that could contribute to formulation of new trade agreements that strengthen producers who are currently marginalized in international trade flows. While acknowledging that sustainability cannot be easily measured and defined for all site-specific conditions, we posit that it is nevertheless possible to identify such common objectives and benchmarks, based on internationally agreed norms.

Getting ahead of the pandemic curve: A systematic review of critical determining factors for innovation adoption in ensuring food security

The imminent threat to food security requires immediate intervention toward ensuring societal sustainability especially in combating the pandemic. The rapid spread of COVID-19 cases has caused concern for food security. A recent outlook report produced by Food Agricultural Organization and World Food Programme (FAO-WTP) highlights that there are at least 20 countries that are faced with a looming threat of food availability between the period of March-July 2021. Other factors that pose a significant threat to food security include climate change and natural disasters which could significantly reduce the yield. It is hence imperative to gain an in-depth understanding of factors that influence farmers' choices in innovation adoption for increased yield. A line of research has been conducted across the globe on new technology adoption and effect of innovation that aims to increase productivity and yield. This study examined the key factors, that lead farmers to the adoption of new technology and innovation, reported in studies over the past 15 years. PRISMA-P (Preferred Reporting Items for Systematic Review and Meta-Analysis Protocols) was employed based on the SCOPUS and Web of Science database. In creating the main dataset, a protocol was developed in advance to document the analysis method. Several inclusion (eligibility) and exclusion criteria were set to select related articles from a total of 2,136 papers. The thematic and content analyses were subsequently performed on 392 research articles. The findings indicate 4 over-arching segments, and 12 major determinants, that comprise 62 associate determinants. The paper concludes with the identification of critical factors for innovation adoption amongst farmers.

Smallholders participation in sustainable certification: The mediating impact of deliberative communication and responsible leadership

The initiative to ensure oil-palm smallholders around the world participate in sustainable certification is increasing. Different efforts were strategised including increasing awareness and providing financial support. Despite that, the number of smallholders’ participation in sustainable certification is relatively low. This study embarked on the objective to identify the role of social structure, namely social interaction ties in affecting smallholders’ participative behaviours. Moreover, this study is also looking on the mediating impact of deliberative communication and responsible leadership in explaining the relationship between the two previously stated constructs. Using a quantitative research design, this study collected data from 440 smallholders as its respondents. Samples were randomly selected, and questionnaires were distributed to obtain their responses. Data collected were then analysed using PLS-SEM to test the developed hypothesis. Accordingly, the findings indicate that social interaction ties have a significant impact on smallholders’ decisions to participate in sustainable certification. Furthermore, both deliberative communication and responsible leadership were proven to be significant mediators. This study provides insights on how smallholders’ participation in sustainable certification can be improved by tapping on the social structure elements as well as adopting deliberative communication and responsible leadership as a method to communicate and lead with the smallholders. This shall expand literature related to organisation psychology in rural areas and sustainability.

Incentives for Palm Oil Smallholders in Mandatory Certification in Indonesia

The Indonesian Sustainable Palm Oil (ISPO) is a mandatory certification for palm oil plantations based on compliance with Indonesia’s regulations. Its implementation has been slow, particularly for independent smallholders that face problems of complicated requirements, limited capacity, and limited funding. Meanwhile, limited incentives are in place, either in the form of premium prices, ease of regulation, or funding. This article aims to elaborate on the role of incentives and their options in supporting the acceleration of ISPO implementation to ensure and improve the market access of smallholders. It identifies ways to develop incentives to facilitate the acceleration of ISPO certification and alternative financing sources available to support this. The method of this research is based on qualitative methodology using a literature review, policy document analysis, and in-depth interviews with informants from the government and smallholders. The analysis of this article shows that incentives are needed in the form of funding, regulatory measures, technical assistance, promotion, and rewards for good practices to provide better facilitation and financial support for the regulatory compliance in the legal, managerial and financial aspects of the ISPO. These incentives target government and smallholders. Implications for enabling these incentives include the improvement of government coordination, improved understanding of challenges faced by smallholders, and adoption of innovative approaches to manage financial resources, which are crucial to facilitate smallholders’ capacity and organizational improvement.

The Oil Palm Governance: Challenges of Sustainability Policy in Indonesia

Nowadays, Indonesian palm oil faces agrarian, environmental, and social issues and has been subject to sharp criticism from the international community for many years. To answer this problem, the Indonesian government implemented a strategy through certification which ensured the achievement of sustainability standards, especially on the upstream side of the palm oil supply chain. The implementation of Indonesian Sustainable Palm Oil (ISPO) was an ultimate instrument that applied in particular to smallholders oriented towards managing land legal issues, plantation business licenses, plant seeds, and environmental management and to farmer organizations at the local level. However, this process faced quite complex challenges in the form of structural barriers that are very constraining. This study revealed the occurrence of the phenomenon of hollow governance when regulations are absent or collide with each other. The study also revealed institutional power and multi-level governance that made the governance process ineffective or counterproductive. With a qualitative approach to research conducted in three important palm oil provinces of Indonesia, this article aims to look at the issues of oil palm governance a bit more comprehensively. The study conceptualized what was referred to as low-functioning governance to describe how weak the institutions, organizations, actors, and resources are that support ISPO implementation, especially at the regional and local levels. This paper suggests improving and strengthening the ISPO oil palm governance if Indonesian palm oil companies and smallholders want to gain better credibility on sustainability abroad.

A Review of Key Sustainability Issues in Malaysian Palm Oil Industry

The palm oil industry has contributed enormously to the economic growth of developing countries in the tropics, including Malaysia. Despite the industry being a development tool for emerging economies, the oil palm crop is inundated with allegations of its unsustainable plantation practices and viewed as environmentally detrimental and socially adverse. These negative perceptions are amplified through anti-palm oil campaigns and protectionist trade regulations in developed countries, particularly in the European Union (EU). This situation, if further exacerbated, could potentially affect the export of palm oil and the industry as a whole. As such, this article provides a critical review of the key sustainability issues faced by the Malaysian palm oil industry as the second biggest exporter of palm oil to the global market. The various insights and the interpretations of sustainability are contested according to the contexts and the interests of the countries involved. Hence, palm oil is constantly exposed to bias masked by non-tariff barriers from consumer countries to protect their domestically produced vegetable oils. This could constrain the commodity competitiveness in the international market. As issues on palm oil sustainability continue to evolve, policymakers at key stakeholder agencies need to devise strategies to manage global disruption in the palm oil trade.

Peat Land Oil Palm Farmers’ Direct and Indirect Benefits from Good Agriculture Practices

With economically unsustainable metroxylon sagu (sago palms) found in peat lands, small scale farmers are gradually converting their land to oil palm cultivation. Good agriculture practices (GAP) were inculcated to peat land farmers to ensure that the environmental ecosystem is conserved and oil palm productivity is enhanced, along with the farmer’s well-being. The present study examined the effect of GAP on farm performance and the perceived economic well-being of the peat land oil palm farmers. We interviewed randomly selected farmers with assistance from a locally trained native enumerator to complete the survey questionnaire. We conducted partial least square structural equation modeling (PLS-SEM) to incorporate direct and indirect benefits on farmers’ economic well-being to estimate the significance of GAP. The empirical results show that GAP have direct positive effects on farm performance. Such practices lead to significant positive impacts on the economic well-being of peat land oil palm farmers. This solid evidence makes it much easier for small-scale farmers to convert from conventional farming to environmentally friendly farming, and ensures safe and healthy oil palm cultivation.