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Malaysia's new sustainable palm oil standards: What plantation players should know

KUALA LUMPUR: Oil palm plantations and palm oil processing facilities need to comply with the standards of the new Malaysian Sustainable Palm Oil (MSPO) 2022 launched last month.

The Malaysian Palm Oil Board (MPOB) director-general Datuk Ahmad Parveez Ghulam Kadir said from Jan 1 2024, MSPO certificate holders would be re- audited based on the enhanced standards of the MSPO 2022.

Ahmad Parveez said the new MSPO 2022 incorporated current sustainability requirements as Malaysia, being the world's second largest producer and exporter of palm oil, aimed to obtain recognition from palm oil importing countries by improving its sustainability practices.

"We have strengthened the standards criteria of the certification. The enhanced standards focus on sustainable practices, taking into account the changes in global sustainability needs.

"MSPO 2022 is now the national certification scheme for oil palm plantations, smallholders and palm oil processing facilities and they need to adhere to the new standards in order to obtain the certification," he said in a statement. 

As of March 31 this year, 97.33 per cent comprising oil palm plantations and smallholders as well as 453 out of the total 464 licenced palm oil mills in the country had received the MSPO certification.

According to Ahmad Parveez, the move to enhance the MSPO certification ensuredp that the management of oil palm plantations and local palm oil products meet the global sustainability standards.

He said in meeting the global demand for sustainability, three elements on economic cycle, forced labour and placement of plantation workers were added in the MSPO 2022, replacing the MSPO issued in 2013.

"MSPO 2022 also sees the palm oil industry adopting the high conservation value (HCV) concept with national interpretation in MSPO HCV guidelines. 

"Other critical requirements involve policies that commit to no deforestation, no peat development, and no exploitation," it said. 

Meanwhile, Ahmad Parveez said the MSPO 2022 included protocol 29 of the International Labour Organisation which was an indicator for labours.

Greenhouse gas (GHG) from land-used change and method to measure GHG had also been included, he said. 

"Other critical requirements added in the MSPO 2022 are the traceability and legality of fresh fruit bunches (FFB) as well as ethical conduct.

"MSPO 2022 also contains an additional standard requirement to assess conformity for FFB dealers and palm oil traders against the MSPO.

"This standard will ensure that all types of dealers under MPOB Licensing, including exporters and importers that purchase and sell oil palm products will not change the chemical properties of the materials," he said. 

The new framework for MSPO 2022 standards has only five principles compared to the previous version of seven principles in order to further streamline the requirements to be consistent with the overall flow.

The MSPO 2022 also counteracts the anti-palm oil campaigns by the non-governmental organisations in the West on product quality and the management of Malaysian oil palm plantations as well as negative perceptions on palm oil.

Ahmad Parveez said MSPO 2022, with enhanced standards, would address the challenges the country's face, particularly with regard to negative perceptions in the West. 

He said it would also ensure superior quality of our palm oil and palm oil-related products and hence, expand Malaysia's export market.

"This new certification will ensure that Malaysian palm oil products are sustainable and acceptable in the global market," he added.

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