Palm Oil Strategy Review Comments

The Center for International Environmental Law (CIEL) and Accountability Counsel submitted comments on the World Bank Group's draft Framework for Engagement in the Palm Oil Sector, arguing that the proposed strategy is insufficient to prevent systemic harm to people and the environment. The organizations call for a continued moratorium on palm oil lending and the closure of loopholes regarding Financial Intermediaries (FIs) and Advisory Services.

• The World Bank Group's support for the palm oil sector has resulted in systemic problems, including the violation of indigenous land rights, destruction of livelihoods, food insecurity, and environmental degradation such as forest conversion and biodiversity loss.
• CIEL and Accountability Counsel argue that the Draft Framework contains a loophole for Financial Intermediary (FI) and Advisory Services activities, which may be used to bypass policies designed to avoid environmental and social harm. They recommend that palm oil lending through FIs be added to the IFC's exclusion list.
• The authors contend that the World Bank Group must sequence its investments so that no direct or indirect funding occurs in countries lacking adequate policy and regulatory environments, including functioning land registration systems that recognize traditional and indigenous rights.
• The document identifies failures in the IFC's previous palm oil investments, specifically citing the Wilmar Group case where the Compliance Advisor Ombudsman found violations regarding project categorization, inadequate due diligence of supply chains, and failure to follow Performance Standards.
• The authors criticize the World Bank Group's reliance on the Roundtable on Sustainable Palm Oil (RSPO) certification, noting that smallholders lack the capacity for independent certification and that RSPO must improve transparency to prevent 'green washing'.
• The authors argue that 'benefit sharing' initiatives for smallholders and communities are premature and potentially harmful in areas where palm oil companies use violence to seize indigenous land or where such projects increase malnutrition by displacing sustainable gardens.

APA

Center for International Environmental Law (2010). Palm Oil Strategy Review Comments. https://www.ciel.org/wp-content/uploads/2015/04/WBG_PalmOil_Comments_31Aug10.pdf

Chicago

Center for International Environmental Law. Palm Oil Strategy Review Comments. 2010. https://www.ciel.org/wp-content/uploads/2015/04/WBG_PalmOil_Comments_31Aug10.pdf.

Wikipedia

{{cite press release |author=Center for International Environmental Law |title=Palm Oil Strategy Review Comments |date=31 August 2010 |url=https://www.ciel.org/wp-content/uploads/2015/04/WBG_PalmOil_Comments_31Aug10.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{centerforinternationalenvironmentallaw2010palm, author = {{Center for International Environmental Law}}, title = {{Palm Oil Strategy Review Comments}}, publisher = {Center for International Environmental Law}, year = {2010}, month = aug, url = {https://www.ciel.org/wp-content/uploads/2015/04/WBG_PalmOil_Comments_31Aug10.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }