Abstract
As a major global producer of palm oil products, Malaysia is familiar with criticisms of its palm oil cultivation, poor agricultural practices and decisions during the planting process. Loss of biodiversity and deforestation resulting from unsustainable palm oil practices are perceived as major setbacks for the environment in Malaysia. However, at the same time as Malaysia stands committed to the palm oil industry and its contribution to job growth and poverty reduction, the relevant stakeholders are creating strategies for sustainable production. Together with relevant environmental laws to prevent and control impacts from climate change, loss of biodiversity and deforestation, environmental impact assessment (EIA) procedures to limit environmental impacts are also being applied. Many legal and non-legal measures to ensure sustainable palm oil production practices have been continuously debated, created or implemented over the past decades. These include certification schemes, penalties for environmental offenses, imposing environmental taxes or incentives as corrective and rehabilitative tools, and contributions to an Environmental Fund, as provided in the Environmental Quality Act (EQA) 1974. Furthermore, any new initiatives must ensure that palm oil cultivation practices adhere to and embrace the principles envisaged in the UN Sustainable Development Goals (SDGs) 2030, Roundtable Sustainable Palm Oil (RSPO), and Malaysia Sustainable Palm Oil (MSPO), in order to achieve SDGs 2030.
Highlights
Malaysia has experienced severe forest area loss since the 1970’s, caused by land clearing for palm oil development
Any new initiatives must ensure that palm oil cultivation practices adhere to and embrace the principles envisaged in the UN Sustainable Development Goals (SDGs) 2030, Roundtable Sustainable Palm Oil (RSPO), and Malaysia Sustainable Palm Oil (MSPO), in order to achieve SDGs 2030
According to the Food Sustainability Index (FSI), developed by The Economist Intelligence Unit with the Barilla Center for Food and Nutrition2: “... the cultivation of palm oil, which involves the felling of tropical forests or the burning of peatlands, has played a major role in elevated levels of deforestation in Southeast Asia, and notably in Indonesia and Malaysia, which account for 85% of global palm oil production.”
Summary
Malaysia has experienced severe forest area loss since the 1970’s, caused by land clearing for palm oil development. Malaysia produces about 39% of the world’s palm oil and 44% of world exports. 4.49 million hectares of land are under oil palm cultivation. Problems resulting in harm to the environment and society caused by palm oil activities have repeatedly surfaced over the last two decades. The cultivation of palm oil, which involves the felling of tropical forests or the burning of peatlands, has played a major role in elevated levels of deforestation in Southeast Asia, and notably in Indonesia and Malaysia, which account for 85% of global palm oil production.”. The challenge of resolving environmental impacts arising from palm oil-linked activities in Malaysia involves complexities related to corporate social responsibility, national policies and the legal framework. Economic growth and development aligned with sustainability, as envisaged in the 2030 SDGs Agenda, are well acknowledged concerns for integrating palm oil practices with the sustainable economy
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