Is Palm Oil Bad For The Environment? Statistics, Trends, Facts & Quotes

Palm oil, a type of vegetable oil derived from the fruit of oil palm trees, is a ubiquitous ingredient found in many products, from food to cosmetics and even biofuel. Despite its widespread use, the production and consumption of palm oil have sparked significant environmental concerns. 

Indonesia and Malaysia account for over 85% of global palm oil production. This crop offers a greater yield at a lower cost of production than other vegetable oils. In 2023, the global palm oil production was around 79,464 thousand metric tons, with Indonesia and Malaysia being the world's largest palm oil-producing nations. 

Palm oil consumption has also increased, with over 71 million metric tons consumed worldwide in 2021/22. In addition, the European Union, a region known for its high palm oil consumption, has experienced a remarkable shift in recent years. Once consuming a staggering 6.6 million metric tons annually between 2015 and 2020, the EU has reduced its appetite for palm oil to just 5 million metric tons in 2021, with little change since then. 

This significant reduction showcases a growing awareness and commitment to sustainability within the European Union as the world grapples with palm oil production's environmental impacts.

This article aims to provide a balanced, in-depth analysis of the environmental implications of palm oil production and consumption. 

Palm oil is an edible vegetable derived from the mesocarp, or reddish pulp, of the fruit of oil palms, specifically the Elaeis guineensis species. It is a highly saturated vegetable fat that is semi-solid at room temperature. It is commonly used in cooking, particularly in the tropical regions of Africa, Southeast Asia, and Brazil. 

Palm oil is a highly versatile ingredient in approximately 60% of all packaged products in supermarkets today. It is used in various products, from food to cosmetics and biofuel.

In the food industry, it is used in various processed foods, including peanut butter and chips, and is often labelled as palm shortening. It is a replacement ingredient for hydrogenated fats in different baked and fried products. In the cosmetics industry, it is found in products like lipstick and soaps, while in the biofuel industry, it is used to a small extent. 

These trees grow in regions around the equator and thrive on sunshine, temperatures between 24 and 32 degrees centigrade, and rainfall evenly distributed throughout the year. 

Palm oil accounted for about 33% of global oils produced from oil crops in 2014, and on average, humans consumed 7.7 kg (17 lb) of palm oil per person in 2015.

According to WWF, palm oil is a versatile product with various uses across various industries. Here are some of the primary uses of palm oil:

It's important to note that palm oil is 100% fat, half of which is saturated. It also contains vitamin E. Red palm oil contains antioxidants called carotenoids, which your body can convert into vitamin A. However, palm oil contains no carbohydrates, protein, or dietary fibre. 

Despite its productivity, the expansion of palm oil plantations often comes at the expense of tropical forests, which form critical habitats for many endangered species. The large-scale conversion of these forests to oil palm plantations has a devastating impact on many plant and animal species, leading to an increase in human-wildlife conflict as populations of large animals are squeezed into increasingly isolated fragments of natural habitat. 

Palm oil production also contributes to pollution. A palm oil mill generates 2.5 metric tons of effluent for every metric ton of palm oil it produces. The direct release of this effluent can cause freshwater pollution, affecting downstream biodiversity and people. Additionally, the indiscriminate application of pesticides and fertilisers can pollute surface and groundwater sources. 

Palm oil production has been a significant driver of deforestation, particularly in tropical regions. According to the Food and Agriculture Organization (FAO), palm oil has contributed to an estimated 5% of tropical deforestation. When considering global deforestation, palm oil contributes to 2.3%. 

In Indonesia, Malaysia, and Papua New Guinea, which produce over 80% of the world's palm oil, deforestation for oil palm cultivation reached a historic high of 400,000 hectares per year between 1997 and 2006. Between 1990 and 2005, 55-60% of oil palm expansion in Indonesia replaced virgin forests, equivalent to more than five million football pitches

However, recent data from Chain Reaction Research (CRR) indicates a decreasing trend for deforestation linked to palm oil. In 2021, deforestation in Indonesia, Malaysia, and Papua New Guinea fell to its lowest since 2017. 

Palm oil production contributes significantly to global carbon emissions. Converting peat swamp forests to palm oil plantations releases large amounts of greenhouse gases (GHGs). 

Research shows that palm oil plantations on peatland contribute between 16.6% and 27.9% of total greenhouse gas emissions from Malaysia and Indonesia, equating to 0.44% and 0.74% of annual global emissions. 

Moreover, the International Council on Clean Transportation estimates that palm-driven land use change in Indonesia and Malaysia has emitted roughly 500 million tonnes of CO2e yearly, contributing 1.4% of global net CO2e emissions. This is almost as high as global emissions from the aviation sector and more than the total GHG emissions from California.

For every metric tonne of palm oil produced, 2.5 metric tonnes of palm oil mill effluent (POME) are generated from the milling process. The release of POME into waterways harms aquatic ecosystems. This means palm oil leads to significant water pollution. 

The palm oil industry plays a significant role in the economies of these countries. For instance, in Indonesia and Malaysia, the palm oil sector employs almost 5 million people directly and 6 million indirectly. 

Here is a list of the top 5 ranking countries based on their metric tons of production. 

Palm oil can be sustainable if produced and managed responsibly. It is the world's most widely used vegetable oil, accounting for 38% of the world's vegetable oil output on just 5% of its farmland. However, palm oil production has positive and negative impacts on the environment, economy, and society.

On the other hand, sustainably produced palm oil can help address the impact problems. For example, the Roundtable on Sustainable Palm Oil (RSPO) certification ensures that labour rights in the value chain are respected and that there is no child labour, forced labour, or discrimination. The Roundtable on Sustainable Palm Oil (RSPO) was established in 2004 to promote the growth and use of sustainable palm oil products through global standards and multistakeholder governance. 

Oil palms can be harvested yearly, providing farming families in tropical areas with a year-round income. However, the palm oil industry has been associated with negative environmental impacts, such as deforestation, loss of biodiversity, and greenhouse gas emissions. 

It is a versatile oil used in various food and cosmetics products. However, whether palm oil is toxic depends on several factors, including its state (fresh or oxidised), consumption levels, and individual health conditions.

Fresh palm oil contains 50% saturated fatty acids but does not promote atherosclerosis and arterial thrombosis. It has many antioxidants, beta-carotene, and vitamin E, which benefit health. Palm oil is naturally trans-fat-free and high in vitamin A, providing 15 to 30 times more vitamin A than carrots and tomatoes. 

However, palm oil, which is 50% saturated, has a more favourable fatty acid composition than palm kernel oil and coconut oil, which are more than 85% saturated. Some studies have found that palm oil consumption produced LDL or "bad" cholesterol in slightly higher amounts than other vegetable oils.

Despite the environmental concerns, palm oil is the most resource-efficient vegetable oil, requiring considerably less land to produce the exact yield than other oils. For instance, every hectare of land that produces 0.7 tonnes of sunflower oil can produce 3.8 tonnes of palm oil. 

Moreover, palm oil production is often economically viable in sites unsuitable for most other crops and generates considerable wealth for some actors. If we were to meet global oil demand from alternatives to palm oil, we would need significantly more land, leading to potentially more significant environmental impacts.

Yes, palm oil can be recycled. In the crude palm oil (CPO) production process, waste materials such as empty fruit bunches (EFB), fibre, shells, and palm oil mill effluent (POME) are generated.

These waste materials can be recycled and used as organic fertilisers and fuel. For example, Golden Agri-Resources has achieved 100% recycling of waste from the CPO production process in their upstream operations since 2015.

Additionally, cooking oil, including palm oil, can be collected and recycled to produce soaps, candles, and renewable energy. It can be collected and brought to recycling centres, which accept cooking oil. 

Moreover, palm oil wastes can be recycled to produce a pozzolanic cement replacement material for concrete. Another study has shown that used palm oil can be recycled to make white bio oil, bio petroleum diesel, and heavy fuel.

One promising alternative to palm oil is PALM-ALT, a plant-based palm fat replacer developed by researchers at Queen Margaret University in Scotland. This alternative is 100% plant-based, can be sourced entirely within the European Union and the United Kingdom, and is healthier and more environmentally friendly than palm oil. 

It is 25% lower in total fat and 88% lower in saturated fat compared to palm oil, offering a healthier option for consumers. 

Notwithstanding, there are several alternatives to palm oil, each with its benefits and drawbacks.

While these alternatives show promise, it's important to note that each has its challenges, including cost, availability, and differences in physical properties. Therefore, combining alternatives and sustainable palm oil production practices may be the most effective approach to addressing the environmental and health concerns associated with palm oil.

Palm oil is a significant commodity in the global market, with a wide range of applications in food, cosmetics, and biofuels.

Here are some key statistics, trends, facts, and quotes related to the palm oil industry: