Palm oil, an edible vegetable oil, is a globally consumed commodity. It is found in a vast array of products, from food to beauty items and biofuels. Its versatility and high yield per hectare compared to other vegetable oils have made it the most widely produced vegetable oil. However, its rapid expansion raises considerable environmental concerns.
Deforestation and Habitat Destruction
Palm oil cultivation drives deforestation, particularly in tropical rainforests. Clearing forests for new plantations destroys critical habitats for numerous species. This threatens endangered animals, including orangutans, Sumatran tigers, and pygmy elephants. Over 50,000 orangutans in Borneo and Sumatra have died due to palm oil deforestation, with their forest homes often destroyed by heavy machinery or intentionally set alight.
Orangutan populations have significantly declined, with only about 104,000 Bornean and 14,000 Sumatran orangutans remaining from an estimated 230,000. The Sumatran tiger population is also low, with fewer than 400 individuals remaining; nearly two-thirds of their habitat loss between 2009 and 2011 was attributed to oil palm and pulpwood plantation expansion. Land clearing methods, such as slash-and-burn, can lead to uncontrollable forest fires, damaging ecosystems and contributing to air pollution.
Greenhouse Gas Emissions
Palm oil production significantly contributes to greenhouse gas emissions. Clearing and draining peatlands for plantations is a major factor. Peat soils store vast amounts of carbon; when drained, this carbon is exposed to oxygen, releasing large quantities of carbon dioxide. This process contributes between 16.6% and 27.9% of total greenhouse gas emissions from Malaysia and Indonesia, the two largest palm oil producers.
Other emission sources include burning biomass during land clearing and fossil fuels used in cultivation and processing. A typical palm oil mill can produce 637–1,131 kg of CO2 equivalent per tonne of crude palm oil. Palm-driven land use change in Indonesia and Malaysia has emitted approximately 500 million tonnes of CO2 equivalent each year, accounting for about 1.4% of global net CO2 equivalent emissions.
Water and Soil Degradation
Palm oil cultivation also impacts water resources and soil quality. Intensive use of pesticides and fertilizers can pollute water, harming freshwater ecosystems and affecting downstream communities. These chemicals can leach into waterways, altering water chemistry and impacting aquatic life.
Conversion of forests to oil palm plantations often results in significant soil erosion and nutrient depletion. When forests are cleared, protective vegetation cover is removed, leaving bare soil vulnerable to heavy tropical rainfall. This can lead to substantial topsoil loss, with reported erosion rates in oil palm plantations ranging from 1.5 to 78 tonnes per hectare per year depending on soil type and slope. Frequent harvesting activities and removal of ground vegetation can also compact the soil, reducing water infiltration and increasing surface runoff, contributing to soil degradation and nutrient loss.
Global Demand and Production Scale
The environmental impacts of palm oil production are driven by its immense global demand and cultivation scale. Palm oil is the most widely used vegetable oil, found in approximately half of all packaged products, including cookies, margarine, cosmetics, and soaps. Its economic advantages, such as high yields and oxidation resistance, make it a preferred ingredient for food and other industries.
Indonesia and Malaysia collectively produce over 85% of the world’s palm oil, making them central to the global supply. The land devoted to palm oil cultivation globally has increased nearly tenfold between 1970 and 2020, from 3 million to almost 30 million hectares. This rapid expansion, particularly in Southeast Asia, is fueled by increasing per-capita consumption and demand for various applications, including its growing use in biofuels.
Sustainable Sourcing Initiatives
Various initiatives aim to promote more sustainable palm oil production practices. The Roundtable on Sustainable Palm Oil (RSPO), established in 2004, develops and implements global standards for sustainable palm oil. RSPO certification requires compliance with environmental and social criteria, including avoiding deforestation, preventing peat development, and ensuring fair labor practices.
Certified sustainable palm oil (CSPO) aims to reduce negative impacts; RSPO-certified palm oil produces approximately 35% fewer emissions per kilogram than non-certified oil. Other national initiatives, such as Malaysian Sustainable Palm Oil (MSPO) and Indonesia Sustainable Palm Oil (ISPO), also certify sustainable production. While progress has been made, with palm oil-linked deforestation declining in some regions, challenges remain in ensuring widespread adoption and consumer demand for certified products.