China Dialogue has recently published an article exploring whether sustainable palm oil is only affordable to western buyers. Our 2019 report written in collaboration with Proforest and WWF Indonesia was cited in the article, specifically the fact that the premium paid for crude palm oil (CPO) is the lowest when Roundtable on Sustainable Palm Oil’s (RSPO) book and claim supply chain method is used. The article also cited that only in general, bigger companies will find it easier to obtain RSPO’s highest levels of supply chain certification compared to smaller ones, thus allowing the former to reap more benefits from the price premium.
China Dialogue also reached out to Segi Enam principal Khor Yu Leng for additional comments, who explained that many growers have opted for both RSPO and the International Sustainability & Carbon Certification (ISCC) certifications in order to better cater to market demands. She also expects that demand for palm oil from the EU would remain stable despite commitments to end biofuel use by 2030, stating that:
“The premium of certified sustainable palm oil will likely rise if new players, such as fast-moving consumer goods companies from Japan or China, start to buy certified palm oil and its derivatives. That will cause a shortage of certified palm oil rather than an oversupply, and the premium will go higher. That, in turn, could stimulate new supply.”
To read more (and you should! The article is pretty interesting and informative), head over to the following link: "Can only western buyers afford sustainable palm oil?"