Written by Mohd Anuar Bin Amirkadra, MSPO

How Sustainable Palm Oil Contributes to Global Environmental Goals

With climate change posing a critical challenge worldwide, the importance of sustainable practices in agriculture has never been higher. The palm oil industry, often scrutinised for its environmental impact, is making strides toward sustainability, particularly through the Malaysian Sustainable Palm Oil (MSPO) certification. This initiative is a significant step towards aligning palm oil production in Malaysia with global environmental and sustainability goals.

Reducing Deforestation and Protecting Carbon Sinks

Palm oil production has long been associated with deforestation, which significantly contributes to climate change by releasing carbon dioxide (CO₂) stored in trees. MSPO certification addresses deforestation concerns by setting strict land-use practices. A critical regulation prohibits deforestation in natural forests and High Conservation Value (HCV) areas post-December 2019, ensuring sustainable land management.

The MSPO standards align closely with the European Union Deforestation Regulation (EUDR), helping certified palm oil producers meet the requirements of deforestation-free imports into the EU. According to FAO’s Forest Resource Assessment (2020) and the World Resources Institute’s 2023 report, Malaysia has reduced deforestation and even expanded its forested areas since 2010. Global Forest Watch recognised Malaysia as a "success story," indicating that palm oil production is no longer a primary driver of deforestation in the country.

Advancing Sustainable Land Management

To minimise its environmental footprint, MSPO-certified producers follow sustainable land management practices. These practices include soil conservation, maintaining riparian buffer zones, and responsible water management. Such measures are vital for preventing soil erosion, preserving ecosystem health, and reducing greenhouse gas emissions.

Additionally, MSPO certification requires that certified plantations avoid draining peatlands and follow industry best practices, including prohibiting open burning. These steps collectively reduce the carbon footprint of the palm oil sector, aligning it with global climate change goals.

Reducing Greenhouse Gas Emissions in Production

Palm oil processing can produce methane, a potent greenhouse gas. However, MSPO-certified mills are required to implement cleaner production techniques. By capturing methane and converting it into biogas, these mills generate renewable energy, reduce emissions, and promote energy efficiency. Certified entities must report their greenhouse gas emissions annually, demonstrating a commitment to transparency and aligning with Malaysia’s national climate objectives.

Conserving Biodiversity and Protecting Ecosystems

Balancing production with biodiversity conservation is a key challenge for the palm oil industry. MSPO certification requires biodiversity assessments and conservation measures in line with the High Conservation Value (HCV) approach. This includes safeguarding endangered species, conserving natural habitats, and maintaining wildlife corridors that allow safe animal movement.

Protecting biodiversity is essential for climate resilience. Healthy ecosystems offer natural services like water regulation, flood protection, and carbon sequestration. MSPO-certified plantations, by focusing on ecosystem protection, support these critical services and contribute to a more climate-resilient environment.

Empowering Smallholders and Local Communities

Sustainable climate solutions must involve local communities, particularly smallholders who manage palm oil plantations of less than 100 acres and contribute 40% of Malaysia’s palm oil output. MSPO certification helps smallholders adopt sustainable practices by providing training, resources, and technical support from MPOB Tunas officers. Empowering smallholders to sustainably manage their land helps reduce the industry’s carbon footprint and strengthens rural economies, enabling these communities to adapt better to climate impacts.

Conclusion

In the fight against climate change, MSPO certification positions Malaysia as a leader in sustainable palm oil production, aligning the industry with global environmental goals. As demand for sustainability in agriculture grows, MSPO provides a framework for palm oil producers to meet international expectations and support climate goals.

For those interested in collaborating with MSPO or learning more about sustainable palm oil production, please contact us at inp@mspo.org.my. Together, let’s champion a sustainable, environmentally-friendly future for the global palm oil industry.