The United Nations is urging intense restoration of nature to address climate and biodiversity crises. In launching the UN Decade on Ecosystem Restoration, the UN called on countries to meet commitments to restore 1 billion hectares of land.

The call for restoration at this size is justified as one of the most comprehensive studies on Land Use Change (LUC) by Nature, found out that: 

“About three-quarters of the Earth’s land surface has been altered by humans within the last millennium1,2. Successfully tackling global sustainability challenges such as climate change, biodiversity loss and food security depends on land use change, since it strongly affects carbon sources3 and sinks4,5, causes habitat loss and underpins food production.”

The study is exceptional as it tracked LUC from the Global North to the South over a period from 1960 to 2019. 

This troubling trend will continue according to a new study by Moody’s ESG Solutions which found that thirty eight percent of 5,300 large, publicly traded companies operate at least one facility that is causing a risk to biodiversity due to a loss of habitat.

To address this problem, the European Union which has led the global push to protect biodiversity recently voted overwhelmingly in favour of an EU Biodiversity Law to set the biodiversity governance framework until 2050. 

The “EU Biodiversity Strategy for 2030: Bringing nature back into our lives” to improve biodiversity in Europe noted that nature is declining globally at an unprecedented rate with one million out of an estimated eight million species threatened by extinction. The MEPs welcomed the ambition in the EU Biodiversity Strategy to ensure that by 2050 the world’s ecosystems are restored, resilient, and adequately protected.

As for threats to biodiversity in countries that they trade with, the European Union is looking to adopt both mandatory and voluntary due diligence rules later this year to prevent global deforestation in its imports. The Malaysian Sustainable Palm Oil scheme looks forward to proving its mettle as the EU turns away from its reliance on voluntary schemes.

Certified Malaysian Palm Oil 

The MSPO Standards contains seven principles based on three sound pillars of sustainability which form the requirements of a certification system. That it must be economically viable, socially acceptable, and environmentally sound.

Malaysia is a tropical country that is the custodian of a rich tropical biodiversity. Finding the balance between the needs of the country for development and sustainability has not always been an easy task.

The MSPO as the standard for Malaysian sustainable palm oil, has to be at once, sensitive to the needs for sustainable development and sensitive to the demands of buyers that Malaysian palm oil is sustainably produced. 

As of this writing, 95% of Malaysian palm oil has been certified by the MSPO. While it was relatively easy for the bigger companies to understand the need to become certified by MSPO, it was more difficult to explain to the independent small farmers which make up 40% of Malaysian palm production. 

Smallholders have traditionally opposed certification as they do not see a direct return on their investment. Their presence in the palm oil supply chain is dynamic especially when it comes to biodiversity. The findings of the Meridian Institute’s report on smallholders in Indonesia shows clearly that the environmental impact of the smallholders cannot be underestimated or ignored. 

In a certification scheme that is as transparent as the MSPO, it is crucial to remove any links to deforestation especially illegal deforestation that is carried out in violation of national laws. 

This explains why the Malaysian government is determined to include all smallholders in MSPO certification, to the extent of bearing all certification costs for them. The drive to include smallholders in the MSPO has received some warning that it cannot be sustained in a global market where competing vegetable oils are not subject to the same production costs and standards.

Nevertheless, there is a lot of pride in the MSPO’s achievements in creating a model for mandatory certification of sustainable palm oil. 

Biodiversity Resilience Through Certification and Collaboration

On the biodiversity front, the nationwide implementation of the MSPO has created many opportunities for both conservation and industry groups alike to play a constructive role in preserving Malaysian biodiversity. The task ahead of the global ambition to save biodiversity is daunting. Winning the fight will require all countries and industries to pitch in an earnest effort and this applies to Malaysian biodiversity as well. 

With less than 60 thousand Km2 of Malaysia’s 328,550 Km2 land under palm oil cultivation, the industry’s potential impact to save biodiversity may be questionable when you look at the global Land Use Change of 43 million Km2 yet Malaysia strides on.

The adage that “every tree counts” may sound overused in global conservation campaigns but it remains the basis of Malaysia’s 100 Million Tree Campaign under the Greening Malaysia Campaign. The sustainability of Malaysia’s biodiversity and indeed its palm oil industry has been enhanced in by the contribution of global conservation NGOs working in Malaysia as well as corporations like Unilever and Nestle. 

Recent news coverage from The LEAF Coalition brings encouraging news for everyone that has worked to support conservation:

“Malaysia has managed to reduce deforestation for each of the past four years after bringing in caps on palm plantation areas and harsher punishments for illegal logging.”

Sustainably produced palm oil can reverse biodiversity loss and boost local economies at the same time. As a leading model of jurisdictional certification with physical implementation on the ground, the MSPO provides the right equilibrium between conservation and development. That is not to say that our work is done. We remain open to new thoughts and ideas and welcome those from experts in the fields of sustainable development and sustainable agriculture.