Palm Oil & Deforestation: How Does Agriculture Affect Climate Change?

Palm oil has been a key driver of deforestation in Southeast Asia since the 1970s. The oil is highly versatile with applications in food, pharmaceuticals, photographic film, perfume, and hair and beauty products. It is now the world’s most popular vegetable oil, accounting for one-third of global consumption. This has led countries, such as Indonesia and Malaysia, to bulldoze great swathes of rainforest to make way for oil palm plantations.¹

Why is palm oil a factor in deforestation?

Nearly 50 per cent of all common consumer products contain palm oil.² For the period 2019 to 2024, its anticipated compound annual growth rate is 5.9 per cent.³ Health concerns regarding trans fats helped fuel the boom, as palm oil replaced trans fats in many commodities.⁴ The rising global demand for the crop has led to significant deforestation, as space is cleared for plantations.⁵

Where does palm oil come from?

Oil palms grow in Asia, Africa and Latin America.⁶ The tree can only grow in tropical regions, and countries like Indonesia and Malaysia have leapt at the economic opportunity the crop offers. Unfortunately, the fiscal benefits have come at the price of some of the most biodiverse rainforests in the world.⁷ 

Since 1973, nearly 16,000 square miles of Borneo’s rainforests have been bulldozed to make way for oil palm.⁸ Endangered species, like the orangutan, the pygmy elephant and Sumatran rhino, have suffered as monoculture plantations have replaced their habitat.⁹ Between 1999 and 2015, deforestation and hunting caused the deaths of 150,000 critically endangered Bornean orangutans.¹⁰ Since 2000, palm oil has accounted for 47 per cent of deforestation on the island.¹¹

How is palm oil production causing deforestation?

The demand for palm oil production fuels deforestation. Oil palms need dry land to grow, so palm oil companies clear trees and drain the land to make it suitable for the crop. Indonesia’s forests tend to thrive in deep swampy peat, which stores vast quantities of carbon. Destroying the trees and draining the peat releases the sequestered carbon.¹²

What is the link between palm oil and global warming?

The carbon enters the Earth’s atmosphere, where it traps heat and contributes to global warming.¹³ Reducing the number of trees also means less carbon is absorbed. The land that is left is extremely dry and flammable.¹⁴ Sometimes, palm oil companies set fires to clear land for more plantations.¹⁵ These fires release even more carbon dioxide.¹⁶ The smoke can cause other issues too.¹⁷ Indonesian forest fires caused at least 12,000 premature deaths in 2015 alone.¹⁸

Can palm oil be sustainable?

Palm oil is an incredibly efficient crop. It produces between four and 10 times more oil per area of land used than alternative oils, like soy or coconut.¹⁹ Oil palms provide 35 per cent of the world’s vegetable oil, using just 10 per cent of the land cultivated for vegetable oil.²⁰ Boycotting palm oil is, therefore, not the answer.

Making palm oil sustainable lies with training farmers to increase their yield and productivity. Improving the yield per hectare would mean less incentive to cut down more forests. Converting old rubber and coffee plantations to palm oil is also important. Repurposing land used for inferior yield crops can reduce the need to cut down more rainforest.²¹ To ensure the products you purchase use sustainable palm oil, check for a Roundtable on Sustainable Palm Oil’s (RSPO) certification.

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