Monday, August 17, 2009

Rainforest Preservation Can Be More Profitable Than Palm Oil Plantations: New Study Shows

by Matthew McDermott, New York, NY

photo: chem7 via flickr

Though Indonesia and Malaysia seem hell bent on chopping down their rainforests and replacing them with palm oil plantations, a new study in the journal Conservation Letters shows that selling carbon credits from the intact forests could be just as profitable as converting them to agriculture, and go a long way towards preserving biodiversity (not to mention stopping the orangutan from going extinct):

In the article, report lead author Oscar Venter of the University of Queensland says that oil palm plantations currently threaten some 3.3 million hectares of forest in Kalimantan (the Indonesian part of the island or Borneo).

However his estimates for carbon payments for Reducing Emissions from Deforestation and Degradation (REDD) program could offset the lost profits from palm oil production, at prices of $10-33 per tonne of CO2, or $2-16 per tonne if forest conservation targets only cost-efficient areas.

Proposed Plantations Home to Many Threatened Species
The report points out that some 40 globally threatened mammal species are found within the areas due to be deforested for palm oil, including the Bornean orangutan and the Borneo pygmy elephant.

Deforestation Takes Indonesia Into the Top Tier of Carbon Emitters
It's also worth reminding people that conversion of forest into cropland in Indonesia is such a large source of greenhouse gas emissions, that when these emissions are taken into consideration alongside those from burning fossil fuels, Indonesia is in the top five emitters in the world.

Globally deforestation amounts to almost 30% of greenhouse gas emissions, more than the entire transportation sector.

Adapted from Treehugger.com

WWF to Publish Palm Oil Buyer's Scorecard: Will Out Companies Not Meeting Their Sustainable Oil Commitments

by Matthew McDermott, New York, NY

That palm oil plantation used to be forest... photo: Achmad Rabin Taim via flickr

Saying that only 1% of the sustainably produced palm oil supplies available on the market are actually being purchased, WWF has announced that over the next six months it will be assessing the state of sustainable palm oil, whether companies that have committed to purchasing sustainable oil are doing so, and release a palm oil buyer's scorecard:

This scorecard will,

...rank the commitments and actions of major global retailers, manufacturers and traders that buy palm oil. Companies will be scored on a variety of criteria relating to their commitments to, and actions on, sustainable palm oil. The resulting scores will not only help consumers evaluate the performance of these companies but will also encourage the companies themselves to better support the use of sustainable palm oil.

WWF points out that though some 1.3 million tonnes of certified sustainable palm oil has been produced by members of the Roundtable on Sustainable Palm Oil, less than 15,000 tonnes have actually been sold.

Why Sustainable Palm Oil, In a Nutshell
In case all of this fuss about palm oil is new to you: Indonesia and Malaysia are the two largest producers of palm oil in the world. In the drive to produce more palm oil, for use in food and health products or in biodiesel, more and more forest is chopped down—in the process releasing vast amounts of stored carbon in the soil and reducing the carbon storage potential of the region, as well as destroying habitat for orangutans and other endangered species.

But you don't have to grow oil palms in vast plantations and in an unsustainable manner; which is where the RSPO comes in. Though there has been some controversy surrounding its effectiveness, the RSPO works with some 300 member companies to help ensure that no more rainforest is chopped down for palm oil plantations, that all plantations minimize their environmental impact, and that the rights of local people and plantation workers are respected in producing palm oil.

Adapted from Treehugger.com

Five years to save the orang utan

By David Smith

A shocking UN report details how the booming palm oil industry is wiping out one of man's closest relatives as its forest habitat disappears. David Smith asks if it's too late to save them

The Orang Utan, one of man's closest and most enigmatic cousins, could be virtually extinct within five years after it was discovered that the animal's rainforest habitat is being destroyed even more rapidly than had been predicted.

A United Nations report has found that illegal logging and fires have been overtaken as the primary cause of deforestation by a huge expansion of oil palm plantations, which are racing to meet soaring demand from Western food manufacturers and the European Union's zeal for biofuels.

Palm oil is seen by critics as a cautionary tale about good intentions. As a vegetable oil it can enhance a healthy diet, and as a biofuel it can reduce carbon emissions which contribute to climate change. Yet it transpires that humans' pursuit of an ethical lifestyle could inadvertently mean a death sentence for one of the great apes.

The paradox was brought to world attention by Friends of the Earth, whose ongoing campaign for producers, manufacturers and retailers to commit to sustainable palm oil was recognised at last week's Observer Food Monthly awards with the honour for best ethical contribution to the industry.

The UN's environment programme report, 'The Last Stand of the Orang Utan: State of Emergency', says natural rainforests of Indonesia and Malaysia are being cleared so rapidly that up to 98 per cent may be destroyed by 2022, and the lowland forest strongholds of orang utans much sooner, unless urgent action is taken. This is a full decade earlier than the previous report estimated when it was published five years ago. Overall the loss of orang utan habitat is happening 30 per cent more rapidly than had previously been thought.

Responding to the findings, the Borneo Orang Utan Survival Foundation UK, a charity which works to rescue, rehabilitate and release the animals into protected forest, warned that at the current rate of deforestation by the palm oil industry, orang utans in the wild could be close to extinction by 2012.

Sir David Attenborough, the broadcaster and naturalist, told The Observer: 'Every bit of the rainforest that is knocked down is less space for orangs. They have been reduced very seriously in the past decade. Western governments and companies need to be proactive.'

Satellite images reveal that illegal logging is now taking place in 37 out of 41 national parks in Indonesia and is probably still on the increase. The report says: 'At current rates of intrusions, it is likely that some parks may become severely degraded in as little as three to five years, that is by 2012.'

The UN also highlights the growing threat posed by palm oil harvesting, noting that large areas of Indonesian and Malaysian forest have been cleared to make way for plantations. As consumer awareness about healthy eating and ethical shopping grows, palm oil is an increasingly popular alternative to trans fatty acids - more closely associated with heart disease - and is found in one in 10 supermarket products including margarine, baked goods and sweets, as well as detergents and lipsticks.

There has been much soul searching among environmentalists because palm oil is also in demand for biofuels, seen as one of the best ways of reducing dependence on fossil fuels and so combating global warming. Palm oil is currently considered the most productive source of biodiesel fuel, and Indonesia and Malaysia account for 83 per cent of its global production.

Since 2003 the European Union has been among the chief culprits. Its biofuels progress report earlier this year specified Indonesia among the list of countries for cheap biofuel production, prompting Greenpeace to warn: 'Booming EU demand for biofuels could kill Indonesian forests.' Britain imports one million tonnes every year, double what it did in 1995.

But the new UN report warns: 'Today, the rapid increase in [oil palm] plantation acreage is one of the greatest threats to orang utans and the forests on which they depend. In Malaysia and Indonesia, it is now the primary cause of permanent rainforest loss. The huge demand for this versatile product makes it very difficult to curb the spread of plantations.'

Displaced from their rainforest habitat, the orang utans struggle to survive in the oil palm plantations and are regarded as an agricultural pest. Mindful of the potential loss in profits, farmers have carried out a vicious extermination programme.

Michelle Desilets, director of the Borneo Orang Utan Survival Foundation UK, said: 'They are left hungry so they go in search of food in the plantations and destroy the plants. They become easy targets. Some plantation owners put a bounty of $10 or $20 on the head of orangutans, which is worth a few weeks' salary for the workers.

'Workers don't usually have guns: the orang utans that get shot are the lucky ones. We've seen them beaten to death with wood sticks or iron bars, doused in petrol and set on fire, trussed up in nets or tied up with wire which cuts through their flesh. Often a mother is killed and eaten while its baby is sold on or kept as a pet. In the local plantations where we're working, the managers have now agreed not to offer the bonus. But there's still a macho thing about bringing down an adult male.'

The foundation's struggle to save the animals will be shown in the series Orang Utan Diary starting on BBC2 on 2 April. Desilets said that the palm oil industry was now a severe threat to orang utans' very existence. 'The plantations are huge, the size of a county in England: you can drive for two hours and you're still in one. In the UK, when a product says "vegetable oil" it might mean palm oil, so you're not aware that you might be party to this killing. We put the functional survival of orang utans in the wild at no more than five years. There will always be some remote pockets but the population will be too small to reproduce and in one or two generations it will die out. When the last orang utan dies I will give up all hope in humanity. But for the time being we still have hope.'

Campaigners will move up a gear this week. Hardi Baktiantoro, director of Indonesia's Centre for Orang Utan Protection, has flown to Britain to work with the group Nature Alert to push for greater accountability. He said: 'With my own hands I have rescued countless baby orang utans orphaned by palm oil companies. With my eyes I have witnessed these same companies extinguish all natural life where pristine rainforests once stood. The situation is so desperate in Indonesia that I have come to Great Britain to ask for help with introducing Orang Utan Friendly palm oil into food and other household products.'

After a year of hard campaigning, including demonstrations outside stores, Friends of the Earth persuaded Tesco and other supermarkets to work with producers and manufacturers on a scheme for certifying sustainable palm oil which should include labelling products so consumers can be sure they are not buying from a source which harms orang utans.

Supermarkets said they were trying to tackle the issue although they have been criticised for moving too slowly. A spokesman for Tesco said: 'We are deeply concerned about the loss of rainforest - and the orang utans it supports - and believe that we can make a real contribution to work on this important area. It is a complex problem.'

Sean Sutcliffe, chief executive of the Biofuels Corporation, the biggest biofuels company in the UK, said: 'The existing deforestation is driven by demand from food and cosmetics. Palm oil should be part of the solution: the key is to make sure that standards are put in place.'


Adapted from Guardian.co.uk

Pay No Attention to the Whining Indonesian Palm Oil Industry: The Deforestation, Climate Change & Biodiversity Concerns Are Genuine

by Matthew McDermott, New York

Sometimes you read an industry statement that is so ludicrous that you you can't help but laugh. Such are the remarks in Reuters by the head of the Indonesia Palm Oil Growers Association that environmental NGOs pointing out the unmitigated climate change and biodiversity nightmare of plantation palm oil production might be pawns of Western business interests wanting to gain an advantage in the international biofuels market:

Joefly Bahroeny said,

It's all about business. Palm oil has become a competitor as biofuel not only with rapeseed products but also a real competitor to fossil fuels controlled by Western interests. Do these other people truly care about global warming? Or do they also want to get rich with the excuse of climate change?

Bahroeny went on to say that first is was concerns about orangutans and biodiversity, and now it's climate change. You wonder if Bahroeny inhabits the same planet as the rest of us.

In fact it's all of those things which make the ongoing and accelerating wholesale rape of Indonesia's forests (largely for agriculture, of which palm oil plantations make up a large part) such a pressing problem.

Not to mention that many of the same NGOs criticizing Indonesia's palm oil industry also take issue with the biofuel industries in Western countries on similar climate change and biodiversity grounds. Or that (as in the photo above) they criticize Western companies for dealing with palm oil.

Planting Plantations on Peat a Climate Change Nightmare
A new piece in Mongabay lays out the situation of planting palm oil plantations on the peaty soils underlying the forests of much of Kalimantan in more specific terms, in case you don't already know the story.

But this is the really short version in regards to climate change: When you chop down the forests grown on peat and drain the land to depths sufficient for oil palm cultivation, the soil starts oxidizing and releasing massive amounts of CO2. The plantations replacing the forest do absorb some carbon, but at a vastly lower rate than an intact forest. When all of this is taken into consideration, biodiesel from palm oil grown in these areas has net carbon emissions 8-10 times greater than fossil fuel-based diesel.

Preserving Forests More Profitable Than Palm Oil
Mongabay also points out another twist on why preserving these forests is better than producing palm oil:

conversion of Indonesia's most carbon-dense ecosystems reduces the country's potential to earn compensation under the proposed REDD mechanism for reducing carbon emissions from deforestation and forest degradation. Forest conservation for REDD could prove to be an attractive form of land use on peatlands, competitive economically with returns from palm oil production.

Adapted from Treehugger.com

A Little Bit About Palm Oil


-It is the cheapest cooking oil in the world.

-It is incredibly productive, yielding 3.6 tonnes per hectare

-Borneo is home to 13 primate species, 350 bird species, 150 reptiles and amphibians, and 15,000 plant species, according to Auckland Zoo figures.

-Sumatra is home to Sumatran rhinos, clouded leopards, Sumatran tigers, Asian tapirs, Sumatran elephants, and thousands of other species.

-The wild population of Bornean orangutans is optimistically estimated at 45,000 – 50,000.

-There are about 7,300 Sumatran orangutans in the wild; they are on the list of the top 25 most endangered primates in the world.

The Case Against Palm Oil

By MICHAEL FOX - Stuff.co.nz
PALM OIL: A worker arranges palm fruit harvested in a plantation in Bogor, West Java province. Indonesia is the world's largest palm oil producer.Public concerns over palm oil were highlighted when Cadbury revealed it had started using palm oil in its chocolate, prompting a consumer backlash.

The company finally bowed to consumer pressure today when it announced it would go back to using cocoa butter instead.

But Cadbury's use of palm oil is only the tip of the iceberg in terms of the product's use in New Zealand.

Palm oil is reported to be used in as many as one in ten products on our supermarket shelves.

Conservation advocates say its production is responsible for intensive deforestation in Indonesia and Malaysia, leading to the slaughter of around 50 endangered orangutans a week and making Indonesia the world's third highest man-made carbon emitter, according to Greenpeace.

As bad as the move to palm oil and subsequent negative publicity was for Cadbury, some conservation advocates say it has highlighted their cause.

Auckland Zoo has been campaigning against the use of unsustainable palm oil since 2002, ridding their premises of almost all products containing palm oil and attempting to educate the public about which products contained the ingredient.

Conservation officer Peter Fraser said the Cadbury affair put the spotlight on what is considered one of the world's worst cases of environmental degradation.

"It's been fantastic in that it's bought this to the public's attention. A few years ago no one even knew they were eating palm oil let alone in at least every 10 products," he said.

Palm oil has the highest yield of any oil or oil seed crop, according to WWF, producing 3.6 tonnes a hectare, is cheaper than other oils and is healthier than hydrogenated fats.

But, the problem conservation groups have with palm oil is that it's bad for the environment.

A 2007 United Nations Environment Programme reported that between 1967 and 2000, the total palm oil area in Indonesia grew from less than 2000km2 to more than 30,000 in 2000 and demand for palm oil is expected to double this area by 2020.

To produce it, vast swathes of land must be deforested and replanted, leaving behind a barren l

andscape unsuitable for 90 percent of the areas plethora of wildlife. According to a 2007 Greenpeace report, over 74 million hectares of Indonesia's carbon-intensive forests have been destroyed in the last 50 years – ostensibly for palm oil plantations. As a result of the destruction, around 50 orangutans are dying every week according to Greenpeace.

Orangutans are considered an umbrella species – the poster-species for the fight against the deforestation.

Mr Fraser said that if the habitat of the orangutan could be saved, all the other species which call the rainforests of Sumatra and Borneo home too would also be saved.

Other animals which live in the forest include the endangered Sumatran Tiger, the Sumatran Rhinoceros - the smallest and hairiest of the five rhino species, and the Asian elephant.

"The biggest threat is deforestation and the biggest reason for deforestation is palm plantations," he said.

"Our concern is the pace at which the forest is being replaced. We're going to have orangutans and all the other species that exist in those forests functionally extinct within 10 years."

While Cadbury's move was roundly condemned, with a Facebook group dedicated to boycotting its products gathering over 3000 members, it is not the only company using palm oil.

Statistics New Zealand figures show that last year New Zealand imported 1,104,187 tonnes of palm kernel, a high quality by-product of palm oil extraction, for stock feed.

New Zealand's palm oil comes from Malaysia and Indonesia and is used by dairy farmers in Manawatu, Taranaki, Wairarapa and Wanganui.

Auckland Zoo staff have been putting together a list of all products which do not contain palm oil.

But general estimates show it is present in one in ten products on our supermarket shelves - including cosmetics, shaving creams and sweets. It is often labeled only as "vegetable oil" leading to it being dubbed the "invisible ingredient".

However, it could be even more widespread. A two-month investigation by UK newspaper The Independent said it was confirmed or suspected to be present in 43 of the UK's top-100 grocery brands.

There is a sustainable source for the oil – but that is so far proving to be unpopular and accounts for only one and a half percent of global supply.

WWF vice president of Agriculture David McLaughlin said he was disappointed with the response to the sustainable: "This sluggish demand from palm oil buyers, such as supermarkets, food and cosmetic manufacturers, could undermine the success of sustainability efforts and threatens the remaining natural tropical forests of Southeast Asia, as well as other forests where oil palm is set to expand, such as the Amazon," he said.

According to Mr Fraser from Auckland Zoo the best way to preserve the Indonesian forests was to encourage more sustainable harvesting and clear labeling – and to do that consumers needed to vote with their wallets.

"The consumer is actually a very savvy person and gets information quite quickly and understands complex issues reasonably well," he said.

New Scientist magazine reports that an unprecedented meeting between palm oil producers, conservationists and local government in October is to try and figure out a way to save the orangutan.

Adapted from Stuff.co.nz

Media Release from Cadbury

Cadbury Dairy Milk in New Zealand returns to Cocoa Butter only recipe.

Cadbury New Zealand today announced it is responding to consumers by returning Cadbury Dairy Milk to a recipe containing only cocoa butter.

The move follows hundreds of letters and emails in which consumers told the company they didn’t approve of a new recipe where a small proportion of the cocoa butter was replaced with vegetable fat, including palm oil.

Cadbury New Zealand Managing Director, Matthew Oldham, said the decision to go back to using only cocoa butter in Cadbury Dairy Milk chocolate was in direct response to consumer feedback.

“At the time, we genuinely believed we were making the right decision, for the right reasons. But we got it wrong. Now we’re putting things right as soon as we possibly can, and hope Kiwis will forgive us. Cadbury Dairy Milk's quality is what’s made it one of New Zealand's most trusted brands for many years. Changing the recipe put that trust at risk and I am really sorry.”

Mr Oldham said that Cadbury remains committed to its product quality and environmental and ethical sourcing commitments.

“Cadbury is a responsible business and we purchase certified sustainable palm oil – one of the few companies in New Zealand to do so. But Kiwi consumers have told us they don’t want palm oil in their Cadbury Dairy Milk, so it’s going.” he said.

Production will begin within a few weeks and Cadbury Dairy Milk will shortly, once again, contain only cocoa butter. The wholesale price of Cadbury Dairy Milk chocolate will not be affected as a result of this decision.