sei-pb-2012-eu-palm-oil-971d092fdce4c30f.pdf
Summary
This policy brief examines the impact of the European Union's Renewable Energy Directive (2009/28/EC) (EU-RED) on palm oil production in Southeast Asia. It argues that the EU's focus on greenhouse gas emissions and its reliance on voluntary certification schemes fail to address severe socio-ecological impacts, including water pollution, land disputes, and the marginalization of local communities and smallholder farmers.
Key insights
- The EU biofuels market has accelerated the growth of oil palm plantations in Southeast Asia. This expansion is driven not only by direct demand for liquid biofuels but also because palm oils are used to replace other food oils that have been diverted for energy use.
- The sustainability criteria established in the EU-RED are inadequate for the Southeast Asian context. Specifically, they focus heavily on greenhouse gas emissions while ignoring the sustainable management of land and water resources outside the EU. Furthermore, the 2008 baseline for land use change failed to account for extensive peatland conversion that occurred prior to that date.
- Voluntary sustainability standards accredited by the EU vary in quality and often lack protections for community rights and natural resources. Because these schemes must appeal to companies to gain market buy-in, they often fail to represent the interests of local populations. Additionally, the high technical and financial costs of certification create barriers for smallholder farmers.
- The Roundtable on Sustainable Palm Oil (RSPO) provides more robust protections for livelihoods and natural resources than many EU-accredited schemes, but it lacks financial incentives because it is not yet eligible for EU tax exemptions. This limits its supply-side response and the motivation of members to follow its principles and criteria.
- Case studies in Southeast Asia demonstrate significant negative impacts of palm oil production: in Central Kalimantan, Indonesia, it has caused toxin pollution and the drying of village wells; in Thailand, plantations compete with rice and other crops on arable land; and in Cambodia, it is linked to increased land disputes and conflicts.
- The EU is criticized for ignoring the precautionary principle of international environmental law by delegating responsibility for environmental and social impacts to voluntary market standards and maintaining weak sustainability criteria.
Cite the original document
- APA
- Stockholm Environment Institute (n.d.). sei-pb-2012-eu-palm-oil-971d092fdce4c30f.pdf. https://www.sei.org/mediamanager/documents/Publications/Rethinking-development/SEI-PB-2012-EU-Palm-Oil.pdf
- Chicago
- Stockholm Environment Institute. sei-pb-2012-eu-palm-oil-971d092fdce4c30f.pdf. n.d. https://www.sei.org/mediamanager/documents/Publications/Rethinking-development/SEI-PB-2012-EU-Palm-Oil.pdf.
- Wikipedia
- {{cite report |author=Stockholm Environment Institute |title=sei-pb-2012-eu-palm-oil-971d092fdce4c30f.pdf |url=https://www.sei.org/mediamanager/documents/Publications/Rethinking-development/SEI-PB-2012-EU-Palm-Oil.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{stockholmenvironmentinstitutendseipb2012eupalmoil971d092fdce4c30fpdf, author = {{Stockholm Environment Institute}}, title = {{sei-pb-2012-eu-palm-oil-971d092fdce4c30f.pdf}}, institution = {Stockholm Environment Institute}, url = {https://www.sei.org/mediamanager/documents/Publications/Rethinking-development/SEI-PB-2012-EU-Palm-Oil.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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