Project description

Title: Sustainable Production of Palm Oil for Bioenergy
Commissioned by: Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU)
Country: Thailand
Overall term: 2009 to 2011

Context

Over recent years, vegetable oil, in particular palm oil, has been increasingly used in energy production. This development has received strong political support, including from the Thai government. But there is also criticism of the expansion of planned production areas. It has been argued that rapid production growth is leading to destruction of the rainforests, contributes to the extinction of endangered species and the rising price of foodstuffs, and that in most cases it is taking place under inhumane working conditions.

The development of sustainability standards for bioenergy and of worldwide certification systems therefore has a crucial role to play. Initial approaches include the Roundtable for Sustainable Palm Oil (RSPO), a standard developed by producers, industry, non-governmental organisations, business and banks.

On behalf of the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), GIZ supports its Thai partners in taking full account of the ecological issues and socioeconomic impact of palm oil cultivation.

Objective

Sustainability standards are adapted to local circumstances and Thailand’s (small) farmers receive long-term certification. Palm oil is produced in line with these standards. Both the ecological and social impact of production and the economic feasibility of certification are constantly monitored.

Approach

In order to successfully anchor sustainability standards for palm oil production in Thailand it is essential for local circumstances to be taken into account, in particular the situation faced by the many small farmers. New organisational and management methods are used to optimise their production techniques. In terms of the RSPO standard this means that no areas of rainforest are cut down to make way for cultivated land. It is important that Thailand increases productivity per unit area. Improved cultivation methods and the targeted use of fertilisers have an important role to play in this respect. In addition, harvesting practices and cooperation with mills and intermediate dealers are optimised so as to increase the oil content of the fruit.

Good practice examples and lessons learned are disseminated as a result of training measures for small farmers and through multipliers. At the national level the project initiates a dialogue between various actors from politics and business in the palm oil sector, with a view to establishing and institutionalising the adapted standards. Major authorities as well as private companies and associations from the palm oil industry have already signed up to the project.

Download

• Sustainability is possible! Promotion and certification of smallholders helps sustainable palm oil production
  The brochure provides information on sustainability and examines associated development opportunities for rural areas. The Thai-German project „Sustainable Palm Oil Production“, which is supported by the Climate Initiative of the Federal Ministry for the Environment, is helping the Thai palm oil sector introduce international sustainability standards. (Eschborn 2010)
  2011giz-en-sustainable-palm-oil-production.pdf, 1.06 MB (English)
  2011giz-de-nachhaltige-palmoelproduktion.pdf, 1.03 MB (Deutsch)