For environmentalists, palm oil is a long-time foe, but many people may still be surprised to learn that this ingredient, found everywhere in a number of household products, foods and toiletries, is causing deforestation and the destruction of animal habitats.
Palm oil and wood pulp plantations are the largest contributor to deforestation in Indonesia, bringing many species to the brink of extinction. The loss of tropical forests, among other things, contributes to an increase in global greenhouse gas emissions, which cause climate change.
Moreover, the demand for palm oil has caused indigenous peoples to be forced off their lands — a human rights violation followed by obvious conflicts. In addition, oil palm plantation owners are often accused of underpaying workers and exploiting child labor.
Indonesia has suffered from devastating deforestation effects occurring in the country in recent decades. However, the situation seems to be changing for the better since 2021 has become the first year in the last two decades when the deforestation caused by oil palm plantation in Indonesia was at its lowest. How is that possible if the demand for palm oil remains high?
Where the High Demand for Palm Oil Comes From
Most palm oil is used in the food industry. One of the most prominent examples is Nutella, in which pam oil is a main ingredient. Though, don’t worry as there are plenty of palm oil-free alternatives to Nutella.
The rest is used for the production of hygienic, cosmetic, and household products. It is far from an ideal product from both a dietary and sanitary, environmental and social point of view. So why, then, do agribusinesses still use it in such large quantities? First of all, business is, of course, influenced by price. Oil palm trees farming is extremely profitable, which makes palm oil the cheapest commodity on the vegetable oil market.
In addition, palm oil has become widespread in the agro-industrial complex because of its technological qualities. First of all, it remains in a semi-solid state in the temperate climate. Thus, it is practical in transportation and gives the right properties to different products.
Deforestation as a Consequence of Unsustainable Practices
The expansion of oil palm plantations has caused devastating deforestation in Indonesia in the last couple of decades. The country has lost one-third of its old-growth forestland, which, of course, also contributed to climate change, air pollution, and biodiversity loss. Most palm oil farming activities in Indonesia have started with cutting down the trees to clear the land for production. Thus, the country’s forest cover kept shrinking at an alarming rate. Luckily, modern technologies enable better land management even in remote areas, helping to change the state of things and preserve trees.
Reducing Deforestation Rates: How Did it Happen?
Reduction in deforestation rates in Indonesia is most likely a shared success achieved thanks to different factors. Primarily, it might be stricter regulation of oil palm plantations expansion by the government. Other factors are the global concern and pressure coming from organizations and consumers. Also, the decline in deforestation might have been caused by a drop in the market value of crude palm oil, but the recent rise in palm oil prices has not yet resulted in a palm-driven forest loss.
Environmentalists link the decrease in deforestation to the increased efforts to monitor forests in recent years, especially with the development of satellite monitoring and advanced analytics. A year earlier, such activities had been scaled back because of restrictions related to the coronavirus pandemic. Another change that may have had its impact on reduced deforestation rates is the increased attention to palm oil companies from the global market.
Companies are now very cautious and fearful of clearing land because of the monitoring systems used by such market giants as PepsiCo, Unilever, and others, which have refused to buy palm oil that comes from deforested plantations. Sustainability in production has become a great concern.
Adding to this, according to a study published in Science Advances, a government anti-poverty program in Indonesia reduced illegal logging by 30 %. Back in 2007, authorities launched a program to help the poorest. It provides cash payments to households on a quarterly basis for 6 to 9 years if a number of requirements are met. On average, these funds covered up to 20% of the recipients’ needs. People also received food and medicine under the program.
Although the program itself was not called to protect the environment, the researchers believe it had such a positive impact since it turned out that the extra help reduced the need for the poorest farmers to cut down forests for oil palm cultivation. In the villages where residents participated in the program, logging decreased by 1/3 on average. Despite all this, there is still a lot of work to be done to ensure a sustainable future for the forests of Indonesia.
