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China Sustainable Palm Oil Strategy Report

Currently, palm oil has become the second most consumed plant species in the country. Although palm oil brings economic income to the producing countries and helps lift a large number of local people out of poverty, the environmental and social costs are huge. The deforestation caused by oil palm cultivation has resulted in biodiversity destruction and increased greenhouse gas emissions. At the same time, some plantations are operating with problems such as labor rights violations and conflicts with indigenous people. With increasing awareness of sustainability, the palm oil industry has become aware of the negative impacts of palm oil cultivation, but China is still in its infancy in promoting sustainable palm oil, with a large number of industry stakeholders, a lack of effective mandatory standards and guidelines, and a lack of awareness of sustainable palm oil among Chinese consumers.

 

Based on quantitative information such as trade data, domestic and international industry data, and qualitative interviews with stakeholders, this paper analyzes the current development of China's palm oil industry and the challenges facing the development of sustainable palm oil in China, and makes recommendations for various stakeholders in the industry chain. For NGOs and government agencies, we suggest forming a joint effort to raise public and industry awareness and promote the development of appropriate policies. For enterprises, we suggest strengthening the construction of incentive mechanisms, identifying leading enterprises, and promoting sustainable palm oil from point to point and step by step. For banks and other financial institutions, we suggest strengthening ESG management, conducting relevant case studies and benchmarking, and encouraging financial institutions to join relevant international initiatives.

 

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