TAKING care of varied interests in a multi-stakeholder grouping likeThe Roundtable on Sustainable Palm Oil (RSPO) can’t possibly be an easy feat.
Its recent roundtable meeting (RT7) and general assembly (GA6) saw some members threatening to walk out of the RSPO due to greenhouse gas (GHG) emission criteria proposals that did not augur well with oil palm planters while some were adamant on the imposition of such criteria to suit the EU requirements, as it was one of the world’s largest palm oil consuming markets.
Dr Vengeta Rao
‘RSPO has never been a “single” member grouping.’
The RSPO has never been a “single” member grouping and cannot focus on one key sector alone, says secretary-general Dr Vengeta Rao when asked on the mounting pressure it received from producing members to do away with the GHG emission proposals.
He tells StarBizWeek: “As a fair-minded group, our objective is to take care of the entire palm oil supply chain – from the tree to the table.”
The RSPO comprises over 400 members which are producers, refiners, processors, retailers, traders, bankers and environmental NGOs.
Vengeta maintains that RSPO is fundamentally solid as it is the first global initiative to promote the use of sustainable palm oil through credible global standards.
He points out that the growing interest in RSPO is well reflected by the record 811 participants at RT7 and GA6 from last year’s 550.
“So far, none of the members has walked out of its membership despite talk of producing members’ impasse over how to account for GHG emissions from converting forests and peat land to oil palm plantations and some disgruntled members threatening to quit the RSPO,” he adds.
“Like in any big family, we will not be able to see eye-to-eye on every issue but each member will have an equal right to have its say.
“There will be fights but all will be settled amicably in due time because we are working towards a single noble cause – for the production of sustainable palm oil for the world,” Vengeta says.
However, he admits that 19 RSPO members have been suspended for not paying their membership fees on time while some biofuel manufacturers are facing tough times after the biodiesel hype.
According to Vengeta, RSPO members are committed to tackle the GHG emission and plan to optimise their contribution to tackling climate change through flexible but time-defined voluntary actions.
He says that “such actions would follow recommendations of the GHG working group not related to land use change, such as reducing fossil fuel use, cutting methane emission from the palm oil effluent ponds, lowering fertiliser inputs, and the management of peat land ground water levels.”
Meanwhile, Malaysian Palm Oil Association (MPOA), which represents major oil palm oil companies such as Sime Darby Bhd, Kuala Lumpur Kepong Bhd, IOI Corp Bhd and Felda, wants the RSPO to focus on sustainable production of palm oil for “food” use to meet the “3Ps” – profit, people and planet – and not on GHG emissions by the EU legislations meant for biofuel and energy sector.
MPOA chief executive Datuk Mamat Salleh says the EU legislation conveniently left out one “P” – profits – or economic sustainability where the heavily-subsidised biofuel and feedstock in the EU was still considered as sustainable product.
The burden of implementation and costs is on the producers and NGOs will just demand for it while manufacturers do not purchase the certified RSPO palm oil produced.
He says producing members of RSPO feel strongly that the GHG criteria should not be imposed on palm oil used for food since no such requirement is needed for other food. “If not, the planting of rice and rearing of livestock have to be checked for generating GHG emission.
“Not being able to export to the EU for not complying with the carbon emission threshold is one thing but being labelled as unsustainable under RSPO will adversely affect its market competitiveness,” adds Mamat.
By 2020, the potential demand for Malaysian palm oil for biofuel and feedstock in the EU is estimated at a “meager” 500,000 to 1.5 million tonnes, he says. “If it is only for 0.5 million to 1.5 million tonnes to be exported to EU, it is better for Malaysia to implement the biofuel industry for domestic use.”
Many countries are now adopting the domestic use of biofuel as a strategic industry to stabilise commodity prices like sugar in Brazil and rapeseed in the EU.
He points out that biofuel industry based on vegetable oils could only be developed domestically in relation to mandatory legislation, high subsidy and price stabilisation by using the “carbon reduction” as the main justification.
Mamat says Malaysia should focus on second-generation biofuel based on the availability of biomass and biowaste that could enhance the value-added content that does not compete with food, having low carbon intensity and comply with the sustainability criteria.
Source : The Star by Hanim Adnan
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