THE European Union, industry stakeholders and consumers across the world must make an effort to recognise the Malaysian Sustainable Palm Oil Certification Scheme (MSPO) as an important contributor in the battle against deforestation.

The Center for Market Education calls on the EU to recognise the hard work Malaysia has done to make its palm oil industry more environmentally sustainable.

It is important to raise this point now as Malaysia begins an official eight-day visit and trade mission to the EU in Brussels, Belgium, and London, led by Plantation and Commodities Minister Fadillah Yusof.

If the EU is truly serious about addressing deforestation issues and ensure the sustainability of palm oil, then it should collectively seek to accept, embrace and promote MSPO as a recognised contributor towards environmental sustainability for the whole sector.

Malaysia’s trade mission is in response to the EU bringing in stringent anti-deforestation rules (EUDR) which aims to prevent deforestation due to agricultural activities. However, the implementation of EUDR will negatively impact free and fair trade as it targets agri-commodity products which could impact millions of smallholders from developing countries, potentially impacting global supply chains.

MSPO is an equitable and practical certification scheme that can further strengthen sustainability practices throughout the palm oil production value chain. The MSPO is inclusive as it aims to bring in smallholder farmers and make them more accountable for their actions and farming practices.

Oil palm is a source of income for over seven million smallholder famers globally and in Malaysia, smallholder production accounts for 40% of total palm oil plantation areas.

While MSPO shares the same objectives and goals with certification schemes like the Roundtable on Sustainable Palm Oil, the core differentiation is in MSPO’s focus towards addressing the needs of smallholder farmers and the demands placed upon them. For one, the significantly lower cost of MSPO certification has made it more attractive to smallholder farmers that depend on palm oil for their livelihoods

Naturally, if it is expensive to be certified, cost-sensitive and financially-limited smallholder farmers will turn away from any form of certification, depriving them of an opportunity to improve their operations in a sustainable manner and potentially impact their access to international markets.

The lower cost factor coupled with making MSPO certification compulsory has resulted in 96% of all palm oil farming in Malaysia being MSPO certified. This means that nearly all companies and smallholders in Malaysia are producing and selling fresh fruit bunches from a planted area that is managed in an environmentally and socially responsible manner.

MSPO is an organisation that requires all participants to adhere to its rules and standards, which are comprehensive and stringent. The MSPO certification scheme requires independent environmental, social impact assessments to be conducted and reviewed prior to land conversion and replanting. Forced or trafficked labour or child labour is strictly forbidden.

The MSPO certificate is only valid for five years and comes with annual surveillance audits. Moreover, the certification scheme itself is reviewed once every five years through a multi-stakeholder consultative approach as a means to remain relevant and updated with industry best practices».

The MSPO is not meant to compete with or replace existing certifications schemes. Nevertheless, we believe that sustainable palm oil can be strengthened further through greater involvement of every participant in the supply chain including nurseries, smallholders, large plantations as well as mills and refineries.
 
To achieve this, policymakers across the world must be progressive in accepting and promoting an inclusive, localised and comprehensive certification scheme like MSPO that can affect tangible change. After all, it all boils down to a matter of supply and demand. – May 31, 2023.

* Dr Carmelo Ferlito is Centre for Market Education CEO.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.