RSPO Evolution ROUNDTABLE ON SUSTAINABLE PALM OIL Dr. Vengeta Rao

Transcription

1 RSPO Evolution ROUNDTABLE ON SUSTAINABLE PALM OIL Dr. Vengeta Rao

2 The oil and fats we consume Oils/Fat s 2006 Palm Oil 36,733 Palm Kernel Oil 4,308 Soyabean Oil 35,187 Cottonseed Oil 4,917 Groundnut Oil 4,497 Sunf lower Oil 11,094 Rapeseed Oil 18,340 Corn Oil 2,252 Coconut Oil 3,166 Olive Oil 2,746 Castor Oil 524 Sesame Oil 871 Linseed Oil 710 Total Vegetable Oils 125,345 Butter 6,790 T allow 8,446 Fish Oil 988 Lard 7,877 Total Animal Oils/Fats 24,101

3 It has the scent of violets, the taste of olive oil and a color which tinges food like saffron but is more attractive Ca da Mosto,15 th century explorer, on discovering palm oil. slave trade had been abolished in 1807, and the merchants had quickly adapted to offering palm oil as an alternative export to slaves. History of the Niger Delta Well, most of them don't lather that much, because they are good and don't use evil palm oil. And lavender smells funny anyway, no? It smells like old ladies. Blog posting, 17 November 2008 What is palm oil? WHAT IS PALM OIL What is Palm Oil

4 What is palm oil? What is Palm Oil Palm oil is used in more than half of packaged supermarket products today

5 What is palm oil? What is Palm Oil 50 World palm oil production has grown rapidly X 1 million tonnes Source: Oil World, MOPB, MPOC

6 What is palm oil? What is Palm Oil Palm oil is now the world's most-produced vegetable oil Palm Oil... Sunflower 8% Other 19% Rapeseed 14% Soy 29% Palm 30% A highly versatile vegetable oil Used in many food and non-food products World s top selling vegetable oil Source: Oil World

7 What is Palm Oil are highly efficient oil producers... They require less land than other crops to produce the same volume of oil

8 What is palm oil? What is Palm Oil Average yield per year (tonnes of oil per hectare) Oil palm: 3.68 Rapeseed: 0.59 Sunflower: 0.42 Soybean: 0.36 Source: Oil World

9 Increase in global oil

10 Increase in global oil

11 Why sustainable palm oil? 5 billion people use it Large revenue earner for Indonesia and Malaysia, and largest for many rural regions Significant share of market capitilisaton in large producer countries Quarter billion people employed More than 5 million smallholders

12 Why sustainable palm oil? Environmental issues in oil palm cultivation Forest, peatland conversion Climate change Biodiversity loss

13 Why sustainable palm oil? Social issues in oil palm cultivation Land ownership conflicts Worker s rights and conditions Treatment of smallholders

14 Why sustainable palm oil? Global Warming Peat CO 2 Fires & Haze

15 Other Similar Initiatives FSC, etc: Forest Stewardship Council (FSC) MSC: Marine Stewardship Council (MSC) 4C: Common Code for the Coffee Community RSCE: Roundtable for a Sustainable Cocoa Economy RTRS: Roundtable for Responsible Soy Sugar: Better Sugar Cane Initiative Salmon and Shrimp: Better Aquaculture Dialogue BCI: Better Cotton Initiative RSB: Roundtable on Sustainable Biofuels

16 The Roundtable Started in 2003, with 7 members, initially B2B Registered on 8 April 2004 as a not-for-profit Association under Article 60 of the Swiss Civil Code To promote the growth and use of sustainable palm oil through co-operation within the supply chain and open dialogue with its stakeholders Secretariats in Kuala Lumpur (4 staff) and Jakarta (2 staff) Annual budget of USD 1m Multi-stakeholder Voluntary, self-organising Transparent Inclusive Action oriented - tangible results Committed to production and use of sustainable palm oil

17 RSPO Membership Ordinary members from 7 sectors Oil palm growers Palm oil processors and/or traders Consumer goods manufacturers Retailers Banks and investors Environmental/nature conservation NGOs Social/developmental NGOs 2-year membership; 2,000 per year (less for small growers and small NGOs) Affiliate membership: 250 per year

18 RSPO Membership Code of Conduct: Every member supports, promotes and works towards the production, procurement and use of sustainable palm oil Annual progress reports Grievance panel supervises compliance

19 RSPO GOVERNANCE Members General Assembly (GA Executive Board (EB) Sector No of seats Oil Palm Growers 4 Palm Oil Processors 2 Consumer goods manufacturers 2 Retailers 2 Banks/investors 2 Environmental NGOs 2 Social/development NGOs 2 16

20 13 MEMBERS (July 2009) Oridinary : 289 Affilate: Current Issues, Developments and Challenges in RSPO - RSPO Membership Banks/Investors Manufacturers E NGOs Oil Palm Growers Processor/Trader s Retailers Social NGOs Numbers Growth in membership by category Affiliate Banks/Investors Consumer Goods Manufacturers Oil Palm Growers Palm Oil Processors/Traders Retailers Environmental/Na ture Conservation NGOs Social/Developme ntal NGOs 78

21 RSPO Members

22 Certification Systems Principles & Criteria Accreditation Requirements Certification Process Requirements Certified palm oil RSPO

23 RSPO P&C for Sustainable Palm Oil Production Principles Criteria Indicators (CWG) Oct 2005 Indicators (CWG) Oct Transparency Legal Financial viability Best practices Environmental responsibility Social consideration Responsible development Continuous improvement

24 RSPO Challenges ahead CRITERIA BEING REVIEWED Green House Gas Emissions HCV and Biodiversity indicators Integrated weed management

25 RSPO RSPO P&C - National Interpretation National interpretation: Ensuring congruence between P&C and national laws, norms and values National Interpretation (PNG, Malaysia & Indonesia) NI development (Colombia, Ghana, Thailand & Solomon Islands )

26 RSPO RSPO P&C CERTIFICATION LIST OF APPROVED CERTIFICATION BODIES

27 RSPO Unit of Certification CPO mill plus supply base All FFB from directly managed lands must be included from outset For associated smallholders, plan will be presented to verifiers to bring all in compliance within 3 years

28 RSPO RSPO Principles & Criteria for Sustainable Palm Oil RSPO P&C Assessments Certification process in review: New Plantings Procedures in place for P&C assurances Certification System: - Clause (Type and extent of verification required for other units) - Accreditation of Certification Bodies - Surveillance audits

29 The Path to RSPO Certification Audit announcement By Certification Body (CB) Minimum 1 months notice Inform relevant stakeholders in appropriate language and format and direct comments to CB. Announcement on auditee s website (if available) Audit Phase 1 - Documents, declarations, etc. Phase 2 - Physical audit CB to provide competent lead auditor and audit team. Audit Report Peer review Audit Review Panel Summary Report for Public Comment (within 60 days after audit) CB to issue certificates For tonnage of oil. Information logged with Green Palm and Utz Central registry

30 PRODUCER CERTIFICATON Approximate production volumes of RSPO certified palm oil and palm kernels based on certification to May 2009 Company Country Mills CPO (mt) PK (mt)pko (mt) United Plantations Berhad Malaysia 6 185,324 50,195 New Britain Palm Oil (NBPOL) PNG 4 257,338 62,181 Sime Darby Malaysia 5 183,785 41,721 Kulim Bhd Malaysia 3 88,914 24,943 Wilmar/PPB Oil Palms Malaysia 3 122,900 27,400 PT Musim Mas Indonesia 2 135,000 31,250 IOI Corp Malaysia 1 63,000 14,850 SIPEF/ Hargy Oil Palms Ltd PNG 2 78, ,830 Cargill/PT Hindoli Indonesia 2 51,344 12,122 Kuala Lumpur Kepong-KDC Malaysia 2 92,000 22,000 PT London Sumatra Indonesia 4 169,480 30,017 2,772 TOTAL 34 1,427, ,679 8,602

31 SAMPLE RSPO CERTIFICATES

32 SAMPLE RSPO CERTIFICATE

33 Central Database RSPO IP / Segregation; Admin Mass Balance Traceability system Certification Bodies Registration & Management Audit result & certified volume Check & data transfer RSPO Central Data Base Check & data transfer Certificate trading (book & claim) Book & Claim system

34 Supply Chain Certification The palm oil supply chain: Many links Potential for mixing Plantations Smallholders Mill Transport & Shipping Product Manufacturers Refiners & Blenders Ingredient Manufacturers Retailers

35 RSPO From plantation to end user Option 1 : Tradable certificates Supports production of sustainable palm oil RSPO certificates Option 2 : Mass balance Partly sustainable, fully traceable % certified palm oil Volume credit Option 3 : Segregation Fully sustainable, fully traceable Certified palm oil Non certified palm oil

36 Engaging Smallholders RSPO

37 RSPO RSPO Involving Smallholders BRINGING SMALLHOLDERS INTO RSPO 2007 Production distribution (ha) by type of farm Production unit Malaysia % Indonesia % Smallholders 454,896 11% 2,565,135 39% Government estates 1,234,184 30% 687,847 10% Private estates 2,476,135 59% 3,358,632 51% Total 4,165, % 6,611, %

38 RSPO RSPO Smallholder Certification Roundtable on Sustainable Palm Oil Generic Smallholder (Scheme) P&C by TFS 4 th and final draft approved by EB on 2/7/09 Generic Smallholder (Independent) P&C by TFS Expected to be completed in February'10 National Interpretation (Scheme) Indonesia (Ina SWG) - 2 nd 30 days public consultation - Trial auditing in progress Malaysia (My SWG) - 1 st 30 days public consultation PNG (NI WG) draft in review

39 RSPO RSPO Smallholder Certification Roundtable on Sustainable Palm Oil Group Certification Scheme - Based on smallholders coming together as groups and the application of internal control systems - Basis for smallholder groups: cooperatives, independent mills, FFB dealers, etc.

40 RSPO Roundtable on Sustainable Palm Oil RSPO and Governments Following is an extract from the Malaysian Prime Minister's 2009 budget speech on 29 th August 2008 RSPO "Malaysia is one of the largest palm oil producers in the world. To enhance global acceptance of palm oil, there is a need to demonstrate strong social and environmental responsibility in our business practices. In this regard, the government fully support the initiative by palm oil plantations to obtain Roundtable for Sustainable Palm Oil (RSPO) certification. The goverment will allocate RM50 million to provide RSPO Fund to support community prgrammes such as upgrading of schools in plantations, as well as implementing conservation programmes such as enhancing biodiversity in plantations".

41 RSPO RSPO and Governments Roundtable on Sustainable Palm Oil An MoU between the Ministry of Agriculture of Indonesia and RSPO was signed on the 17th February 2009 to enhance fruitful cooperation in the socialisation, training and implementation of the RSPO P&C in Indonesia, in particular by smallholders.

42 RSPO Terima Kasih/Thank you Roundtable on Sustainable Palm Oil RT 7 November 2-4, 2009 Hotel Istana Kuala Lumpur Malaysia Dogmatism domineers, pragmatism prevails We are kindred in our needs and hopes.