DEMAND for sustainable palm oil from major importing countries is likely to rise.
China, the main importer of Malaysia's palm oil, recently agreed to encourage its enterprises to increase the import of sustainably-produced Malaysian palm oil and other related products in accordance with the market rule.
Both countries also agreed to promote palm oil products that adhere to the Malaysian Sustainable Palm Oil (MSPO) certification scheme and the Green Food label.
In Japan, the MSPO certification scheme has been adopted as a tool for the Tokyo Olympics and Paralympic Games Sustainable Sourcing Code for palm oil.
Japan will source edible and non-edible food products with the MSPO and other international certifications for use during both events.
Meanwhile, Europe, one of the country's main palm oil importers, wants to buy only sustainable palm oil.
For the first eight months of this year, the European Union imported 1.34 million tonnes of palm oil from Malaysia. Last year, Malaysia exported around 1.9 million tonnes of palm oil to the EU.
The Amsterdam Declaration, launched in 2015, requires all palm oil shipped into Europe to be certified as sustainably-produced by this year.
The Amsterdam Declaration on Deforestation and the Amsterdam Palm Oil Declaration support private sector commitments to a fully sustainable palm oil supply chain by year end.
The MSPO certification, launched in 2015, is a move towards ensuring Malaysian palm oil is sustainably-produced and safe for consumption.
It aims to reduce the industry's social and environmental impacts and assist independent smallholders in certifying their palm oil for the export market.
The MSPO certification, made mandatory on Jan 1 this year, ensures the country's palm oil industry complies with international sustainability requirements that encompass the whole supply chain — from growers and millers to traders and retailers.
The scheme provides general principles for the production of sustainable palm oil that covers the 3Ps — People, Planet and Profit.
Thus, the production of sustainable palm oil does not involve policies that commit to deforestation, peat development, and exploitation of workers.
The government's efforts to ensure 100 per cent MSPO certification for its palm oil will also see Malaysia moving closer towards achieving the United Nations' Sustainable Development Goals 2030 that promotes sustainable, inclusive and equitable economic growth.
The MSPO certification will ensure better productivity, quality oil palm yield and greater access to international markets that in turn will contribute to higher income for smallholders in particular.
The government has been providing incentives to smallholders to implement the MSPO certification, including the cost of certification, MSPO-related training, provision of chemical storage racks and supply of personal protective equipment.
In fact, the entire cost of the MSPO certification for independent smallholders is borne by the government. The government has also announced an allocation of RM20 million in the 2021 Budget to continue the MSPO certification.
About 5.198 million hectares, or 88.10 per cent, of the 5.9 million hectares under oil palm cultivation in Malaysia have obtained the MSPO certification to date.
A total of 426 oil palm mills, or 94.25 per cent, of the 452 oil palm mills have also received the MSPO certification.
Meanwhile, all 162 Sustainable Palm Oil Clusters (SPOC) nationwide involving 79,623 independent smallholders and covering 243,515ha have obtained the MSPO certification.
SPOC was established by MPOB and the government to facilitate the participation of independent smallholders as a cluster in getting the MSPO certification.
To date, 671,583.90ha, or 98.54 per cent, of 681,532ha under organised smallholders supervised by federal and state agencies have been MSPO-certified.
However, only 30.66 per cent of the 250,000 independent oil palm smallholders have obtained the MSPO certification. More than 150,000 independent oil palm smallholders nationwide have also yet to register for the certification.
They are urged to come forward and register with MPOB for certification purpose by year end.
The implementation of the MSPO will create greater opportunities for all, reduce inequalities, raise basic standards of living and promote integrated and sustainable management of natural resources and the ecosystem.
The writer is the director-general of Malaysian Palm Oil Board