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The role of palm oil production in
land-use change in tropical
countries and perspectives for
improvement
XVI Conferencia Internacional Sobre Palma de Aceite
Cartagena - Colombia,
Septiembre 24, 2009
André Faaij
Copernicus Institute - Utrecht University
Task Leader IEA Bioenergy Task 40
Copernicus Institute
Research Institute for Sustainable Development and Innovation
Global debate on palm oil for energy
• Negative side-effects of rapidly
expanding commodities such as palm oil
in Malaysia and Indonesia, or soy
cultivation in Argentina, also ethanol from
sugarcane under investigation
• Overexploitation should be avoided and
sustainability criteria implemented
• Sustainability criteria will have a direct
impact on international bioenergy trade
Copernicus Institute
Research Institute for Sustainable Development and Innovation
Canada E. Europe
W. Europe
& CIS
USA
Japan
South East
ethanol
Ethanol
Asia
Brazil
Pellets
pellets
palm &
Palm oiloil &
agricultural
agricultural
residues
residues
Wood Pellets
Ethanol
Palm Oil & Ag Residues
Copernicus Institute [IEA Task 40; www.bioenergytrade.org]
Research Institute for Sustainable Development and Innovation
Overview of existing certification systems
Forestry: e.g. FSC, PEFC, FFCS…
• Developed over last 10-15 years
• Coverage: niche-market - >95%, depending on region
• Criteria mainly sustainable production
Agriculture: e.g. EUREPGAP, SAN
• produced in environmental sustainable way
• safer or healthier for the consumer
• Some following ‘fair trade’ principles
Green electricity: e.g. EUGENE, Milieukeur, ok-power
• In/exclusion of different biomass types & conversion
technologies
• No criteria so far on biomass production
Copernicus Institute
Research Institute for Sustainable Development and Innovation
Different companies with different focus and
responsibilities for biomass certification:
example of biomass transportation fuels
Copernicus Institute
Research Institute for Sustainable Development and Innovation Source: M. van Vaals, 2006
Introduction
• Discussion of sustainability issues of palm oil
• Attempts to verify sustainability:
– RSPO, international
– RTFO, UK
– Cramer Commission, NL
• 1 Cramer Criterion is GHG balance: bio-
electricity must reduce GHG emissions by at
least 50% to 70% compared to a fossil
reference electricity system
Case study on GHG balance of electricity
from Malaysian CPO and PFAD (Sabah,
Malaysia)
Copernicus Institute
Research Institute for Sustainable Development and Innovation
CPO-Based Electricity
• from OP Plantation (Kalimantan,
Malaysia) CPO Production Chain
• to NG power plant (the Oil palm
Netherlands) plantation
FFB
Palm oil mill
CPO
Co-firing in
power plant
Copernicus Institute
Research Institute for Sustainable Development and Innovation
PFAD-Based Electricity
PFAD Production Chain
CPO
CPO refinery
PFAD
• Main product of CPO refining:
RBD palm oil
• PFAD - by-product
• Transported to NL Co-firing in
power plant
• Co-fired with NG at Essent’s
Copernicus Institute
Claus power plant and Innovation
Research Institute for Sustainable Development
Introduction
• Discussion of sustainability issues of palm oil
• Attempts to verify sustainability:
– RSPO, international
– RTFO, UK
– Cramer Commission, NL
• 1 Cramer Criterion is GHG balance: bio-
electricity must reduce GHG emissions by
30% (2007) and 50% (2011) compared to a
fossil reference electricity system
Case study on GHG balance of electricity
from
Malaysian CPO (Sabah, Malaysia) based on
Copernicus Institute
Cramer methodology
Research Institute for Sustainable Development and Innovation
Methodology
“Cradle-to-Grave” emissions:
– Land use change: Emissions from converting land from one
land type to another (based on IPCC guidelines for national
GHG inventories);
– Plantation: fossil energy inputs, fertilizer production and
application;
– Mill: fossil energy inputs and emissions from by-products;
– Transport: fossil energy input
Net avoided GHG emissions are calculated by comparing
emissions of 1 kWh from the palm oil electricity chain to 1 kWh
from a fossil electricity chain
5 fossil electricity reference systems: Claus power plant with
natural gas only, modern natural gas, coal, Dutch average
Copernicus Institute
electricityforproduction, European average electricity production
Research Institute Sustainable Development and Innovation
Components of GHG Balance of CPO Chain
GHG flows System boundaries Byproducts:
Land use conversion
Oil palm
Fossil energy inputs plantation
Fertilizer production
and application PKS and Fibre
FFB (feedstock for biomass
boiler)
EFB
(spread on field as
Fossil energy inputs Palm oil mill fertilizer)
POME
(methane emissions from
Fossil energy inputs ponding system)
CPO
for transport to NL
Kernels
Animal Soy
Combustion of CPO Co-firing in PKE feed meal
power plant PKO Surfactants Crude
oil
Emission System
Copernicus Institute Carbon Emissions
credit boundaries
neutral
Research Institute for Sustainable Development and Innovation
Components GHG Balance of PFAD Chain
GHG emissions from: CPO Main
product of
Fossil energy inputs refinery:
CPO refinery Allocation of
emissions by
Alternative use of RBD oil market price
PFAD
PFAD Emissions
Fossil energy
inputs for transport Carbon
neutral
to NL
Combustion of PFAD Co-firing in System
boundaries
power plant
System boundaries
Copernicus Institute
Research Institute for Sustainable Development and Innovation
GHG Emissions from Palm-Oil-Based Electricity
vs. Fossil Electricity
Copernicus Institute
Research Institute for Sustainable Development and Innovation
Management Improvements
- Planting oil palm on
degraded land
- Collection of POME
biogas in a closed anaerobic
digester and production of
electricity
- Improved FFB yields
- Reduced inorganic
fertilizer application by
applying POME sludge after
treatment
Copernicus Institute
Research Institute for Sustainable Development and Innovation
GHG Emission Reductions: Comparison
with different fossil reference systems
Copernicus Institute
Research Institute for Sustainable Development and Innovation
GHG Emission Reductions:
Methodological Issues
70%
50%
Copernicus Institute
Research Institute for Sustainable Development and Innovation
GHG Emission Reductions:
Methodological Issues
50%
Copernicus Institute
Research Institute for Sustainable Development and Innovation
Discussion
• Allocation of emissions from land use
change: time period is important
• Allocation vs. system extension: limited
impact on results, only in those cases that
are already borderline
Copernicus Institute
Research Institute for Sustainable Development and Innovation
Discussion
• Different fossil reference systems: low
impact on reaching emission targets, only in
borderline cases
• Sensitivity: land use conversion (above
ground biomass and soil carbon) most
sensitive while emission factors for fertilizer
production have only little effect on results
Copernicus Institute
Research Institute for Sustainable Development and Innovation
Conclusions
• PFAD can already at present fulfill GHG
emission reduction targets of Cramer
Commission, but are not the “silver bullet”
because of limited availability and
underlyung methodological assumptions
• CPO from previously natural rainforest and
peatland have a negative GHG balance
compared to fossil reference systems
Copernicus Institute
Research Institute for Sustainable Development and Innovation
Conclusions
• From a GHG reduction perspective: new oil
palm plantation development should ideally
take place on degraded land: large emission
reductions and even a net CO2 uptake can
be achieved
• Other improvements in management of the
plantation and mill can increase this emission
reduction even further
Copernicus Institute
Research Institute for Sustainable Development and Innovation
Conclusions
• Case study shows that current production of CPO on
logged over forest can reduce GHG emissions by
30% and 50%. compared to various fossil reference
systems
• Improvements in management of the plantation and
mill can increase this emission reduction even further
• When CPO is produced on previously degraded land
large emission reductions and even a net CO2
uptake can be achieved
• CPO from previously natural rainforest and peatland
have a negative GHG balance compared to fossil
reference systems
• Variables of CPO production show large ranges,
which will also cause the GHG emission reductions to
vary significantly.
Copernicus Institute
Research Institute for Sustainable Development and Innovation
Outline
• Introduction
• LUC in IND and MY
• Direct causes and
underlying drivers of LUC
• Projections for future LUC
• Discussions
• Conclusions
• Recommendations
Copernicus Institute
Research Institute for Sustainable Development and Innovation
Introduction
• Sustainability discussion of palm oil production in
general and its energetic use specifically, e.g.:
o Deforestation o Peatland fires
o Loss of biodiversity o Land tenure & human rights conflicts
o GHG emissions o Price increases in cooking oil
Land use change (LUC) is an important factor in
unsustainability problem of palm oil
• Objectives of this study
1) Provide insight into past land use change (LUC) in Indonesia
and Malaysia and the specific role that palm oil plantations
have played in this change
2) Project future LUC induced by possible oil palm expansion
Copernicus Institute
Research Institute for Sustainable Development and Innovation
LUC in IND and MY
Approach
Overview of past developments in land use is based
on data from Indonesian and Malaysian Bureau of
Statistics, other government websites and reports,
FAO STAT, NGO reports, academic literature
Not analysing satellite images, but using results from
satellite image analysis.
Land categories:
o forest cover o permanent crops (w/o palm oil)
o forest plantations o permanent pastures
o shrubland and savannah o mature and immature palm oil
o grassland o degraded land
o arable
Copernicus Institute land o rest category
Research Institute for Sustainable Development and Innovation
LUC in Indonesia
Copernicus Institute
Research Institute for Sustainable Development and Innovation
LUC in Malaysia
Copernicus Institute
Research Institute for Sustainable Development and Innovation
Causes and Drivers
Indonesia Malaysia
Direct causes: Palm oil alone Direct causes:
cannot explain the large loss Palm oil expansion and other
in forest cover but rather a agricultural production
web of interrelated direct (Peninsular Malaysia and
causes (including logging, increasingly in Sabah)
palm oil expansion and other Logging (Sabah and Sarawak)
agricultural production and Shifting agriculture (Sabah
forest fires) is responsible. and Sarawak)
Copernicus Institute
Research Institute for Sustainable Development and Innovation
Causes and Drivers
Indonesia Malaysia
Underlying drivers: Underlying drivers:
Population growth (and Population growth,
transmigration), Economic growth,
Economic growth, Agriculture and forestry
Agriculture and forestry prices,
prices, Policy and institutional
Policy and institutional factors.
factors.
Copernicus Institute
Research Institute for Sustainable Development and Innovation
Projections for 2020
Four projections of palm oil expansion based on literature:
Base Improved Base Improved
Indonesia case case Malaysia case case
Yields 3.5 5.9 Yields 4.3 6.1
(t CPO ha-1 y-1) (t CPO ha-1 y-1)
Expansion (Mha)
Past trends 17.5 6.2 Past trends 2.9 1.5
FAO 7 0.9 FAO 2.7 1.3
IPOC 4.5 0.9 MPOB 1.1 -0.5
Provincial 20 7.4 9th Malaysian 4.6 2.8
plans Plan
(Colchester et
al. 2006)
Copernicus Institute
Research Institute for Sustainable Development and Innovation
Projections for 2020 II
Reference land use projections
BAU (Business as usual): Negative trends of deforestation
and agricultural production
SI (Small improvements): expansion continue
Sus (Sustainability): no deforestation, limited agricultural (w/o
palm oil) expansion according to FAO
projections
Palm oil expansion
BAU: on all land
SI: only on land with previous non-forest cover,
Sus: only on degraded land; assuming that all degraded
land is available (point for discussion)
Copernicus Institute
Research Institute for Sustainable Development and Innovation
Matching land
requirements with land availability
Indonesia Malaysia
Palm oil projections BAU SI Sus BAU SI Sus
base X X X X X
Past trends
improved X
base X X X
FAO
improved X
base
IPOC / MPOB
improved
Provincial plans / base X X X X X
9th MY plan improved X X X
Copernicus Institute
Research Institute for Sustainable Development and Innovation
LUC until 2020 Indonesia
Business as Usual – Sustainability –
Provincial plans (base) Past trends (improved)
Land
area
(Mha)
Projection Projection
Copernicus Institute
Research Institute for Sustainable Development and Innovation
Discussion -
Degraded Land
• Availability?
Uncertainties in, for example, area, location and
level of degradation, and current use affects
availability
• Indirect land use change?
Current users of degraded land may be displaced
(possibly into still forested land)
• Reduced yields?
Use of degraded land is likely to result in reduced
yields which in turn would require more land to
produce the same amount of palm oil as from higher
quality land
Copernicus Institute
Research Institute for Sustainable Development and Innovation
Discussion –
Yield Improvements
How to improve yields ?
– Practise good harvesting standards;
– Quick transport (FFA content of oil);
– Appropriate replanting programme, including
planting the latest high yielding planting materials
– Etc.
Source: Jalani et al. 2002
Copernicus Institute
Research Institute for Sustainable Development and Innovation
Conclusions
• LUC and palm oil expansion
– Data availability problems
– Palm oil has certainly played a role in
LUC
• Degraded land
– Large uncertainties (amount of land,
location, current use and ownership,
and level of degradation)
– Current users
• Palm oil production expansion
– yield improvements are very important
Copernicus Institute
Research Institute for Sustainable Development and Innovation
Recommendations
Research
Palm oil producers – Causes and chain of
– Improve yields; causes of LUC;
– Proper replanting; – Extent and availability of
– Improve oil extraction rate. degraded land; and
– Palm oil production on
degraded land.
Governments and international community
– Stimulate improved management and use of
degraded land by various policies;
– Set up case studies on degraded land; and
– Implement measures to stop deforestation.
Copernicus Institute
Research Institute for Sustainable Development and Innovation
Thank you
for your attention!
For more information see:
• Report:
• Website:
www.chem.uu.nl/nws
Contact information:
b.wicke@uu.nl
Copernicus Institute
Research Institute for Sustainable Development and Innovation
Final remarks (I)
• Future land use for palm (and LUC) depends on:
• the size of the projected expansion
• the kind of land converted.
• best management practices of palm oil production are
implemented
• earlier replanting with higher yielding planting
materials takes place,
• new plantations are being established on degraded
land only.
• Research on expected palm oil yields on degraded
land and how they can be further improved.
Copernicus Institute
Research Institute for Sustainable Development and Innovation
Final remarks (II)
• Strategies for improving the impact of palm oil production growth
on LUC can be incorporated in sustainability certification systems.
RSPO includes management practices (Principle 4) and the use of
degraded land for new plantations is encouraged (Principle 7).
• The use of degraded land for palm oil production, however, should
be combined with an investigation current uses and ownership of
degraded land in order to avoid indirect LUC, land tenure conflicts,
and other possible environmental and social impacts.
• Other direct causes and underlying drivers for LUC, also need to
be implemented.
• include the REDD (reduced emissions from deforestation and
degradation) mechanism in the post-2012 climate change regime
• Key conditions for better land use planning and policy are
improved monitoring of land use and more research to uncover
the complexities and dynamics of the numerous causes and
drivers of LUC.
Copernicus Institute
Research Institute for Sustainable Development and Innovation
Copernicus Institute
Research Institute for Sustainable Development and Innovation
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