Council of Palm Oil Producing Countries

Last updated

Council of Palm Oil Producing Countries
Indonesia Malaysia Locator.svg
Indonesia (green) and Malaysia (orange)
Secretariat Jakarta
Membership
3 states
Establishment21 November 2015
Website
www.cpopc.net

The Council of Palm Oil Producing Countries (CPOPC) is an intergovernmental organization founded by Indonesia and Malaysia to collectively promote the global use of palm oil. Together, the two countries produce the majority of the world's palm oil, a product that has come under pressure due to environmental concerns. The CPOPC was founded in 2015 following the establishment of independent palm oil sustainability standards in both countries, and part of its purpose is to harmonize sustainability standards between the two.

Contents

History

An oil palm plantation in Riau, Indonesia Perkebunan kelapa sawit milik rakyat (1).JPG
An oil palm plantation in Riau, Indonesia

Indonesia and Malaysia are globally significant producers of palm oil, together producing 90% of total supplies. [1] With palm oil becoming a contentious environmental issue, both countries independently established palm oil sustainability certifications. The ISPO (Indonesian Sustainable Palm Oil) was launched in March 2011, with audits beginning in May 2012 and all palm oil producers expected to be in compliance by the end of 2014. The MSPO (Malaysian Sustainable Palm Oil) was launched in November 2013, and came into full effect on 1 January 2015, although it was not mandatory for all oil producers. [2] (The MSPO was made mandatory in 2017, with compliance needed by 2019. [3] )

The formation of the CPOPC was announced in 2015 by Indonesia and Malaysia. [2] It was formally founded on 21 November 2015, and reached full operation in 2017. [4]

Objectives

The stated objective of the organization is "To promote, develop and strengthen cooperation in the oil palm cultivation and industry among the Member Countries, and to ensure long term benefits of such palm oil endeavors to the economic development and well being of the people of the Member Countries". [4]

The CPOPC was created with the goals of harmonizing sustainability standards, coordinating production, and developing the palm oil industry. [2] The CPOPC also strengthened government control over the palm oil industry, with Indonesian authorities forcing the dissolution of the existing privately created "Indonesian Palm Oil Pledge", which they accused of being created by a cartel-like system. [3]

The organization plays a role in promoting palm oil abroad. It seeks to combat challenges such as the European Union's EU Deforestation Regulation, which Malaysian deputy prime minister Fadillah Yusof suggests may be protectionist rather than a purely environmental concern. The United States is also seen as potentially restricting palm oil sales. [5]

The CPOPC claimed in 2022 that palm oil in both countries supported 3.6% of GDP, and the employment of 19 million people, including 3.35 million smallholders. [4]

Membership

MemberStatus
Flag of Indonesia.svg Indonesia Member
Flag of Malaysia.svg Malaysia Member
Flag of Honduras.svg Honduras Member [6]
Flag of Papua New Guinea.svg Papua New Guinea Observer
Flag of Colombia.svg Colombia Observer
Flag of Ghana.svg Ghana Observer

Colombia, Ghana, Honduras, and Papua New Guinea have attended meetings as observers, and are expected to become full members. [7] In February 2023 Malaysia, as chair, invited Thailand to join the organisation. [5]

The secretariat is located in Jakarta, the capital of Indonesia. [4]

See also

Related Research Articles

<span class="mw-page-title-main">Palm oil</span> Edible vegetable oil from fruit of oil palms

Palm oil is an edible vegetable oil derived from the mesocarp of the fruit of oil palms. The oil is used in food manufacturing, in beauty products, and as biofuel. Palm oil accounted for about 36% of global oils produced from oil crops in 2014. Palm oils are easier to stabilize and maintain quality of flavor and consistency in ultra-processed foods, so they are frequently favored by food manufacturers. Globally, humans consumed an average of 7.7 kg (17 lb) of palm oil per person in 2015. Demand has also increased for other uses, such as cosmetics and biofuels, encouraging the growth of palm oil plantations in tropical countries.

<span class="mw-page-title-main">Illegal logging</span> Harvest, transportation, purchase, or sale of timber in violation of laws

Illegal logging is the harvest, transportation, purchase, or sale of timber in violation of laws. The harvesting procedure itself may be illegal, including using corrupt means to gain access to forests; extraction without permission, or from a protected area; the cutting down of protected species; or the extraction of timber in excess of agreed limits. Illegal logging is a driving force for a number of environmental issues such as deforestation, soil erosion and biodiversity loss which can drive larger-scale environmental crises such as climate change and other forms of environmental degradation.

<span class="mw-page-title-main">IOI Group</span> Malaysian conglomerate

IOI Corporation Berhad, commonly referred to as IOI, was incorporated on 31 October 1969 as Industrial Oxygen Incorporated Sdn Bhd. IOI is one of Malaysia's biggest conglomerates. It ventured into oil palm plantations in 1983, followed by property development in 1984 and refineries in 1997. IOI was listed on the Kuala Lumpur Stock Exchange (KLSE) and trading as MYX: 1961—now known as Bursa Malaysia—in 1980.

<span class="mw-page-title-main">Environmental issues in Indonesia</span>

Environmental issues in Indonesia are associated with the country's high population density and rapid industrialisation, and they are often given a lower priority due to high poverty levels, and an under-resourced governance.

<span class="mw-page-title-main">Wild Asia</span>

Wild Asia is a social enterprise, headquartered in Kuala Lumpur, focusing on conservation of natural areas and support of local communities dependent upon natural resources.

<span class="mw-page-title-main">Biodiesel by region</span>

This article describes the use and availability of biodiesel in various countries around the world.

<span class="mw-page-title-main">Agriculture in Indonesia</span>

Agriculture in Indonesia is one of the key sectors within the Indonesian economy. In the last 50 years, the sector's share in national gross domestic product has decreased considerably, due to the rise of industrialisation and service sector. Nevertheless, for the majority of Indonesian households, farming and plantation remains as a vital income generator. In 2013, the agricultural sector contributed 14.43% to national GDP, a slight decline from 2003's contribution which was 15.19%. In 2012, the agricultural sector provides jobs to approximately 49 million Indonesians, representing 41% of the country's total labor force.

<span class="mw-page-title-main">Environment of Indonesia</span>

The environment of Indonesia consists of 17,508 islands scattered over both sides of the equator. Indonesia's size, tropical climate, and archipelagic geography, support the world's second highest level of biodiversity after Brazil.

<span class="mw-page-title-main">Biofuels by region</span> Use of biofuel as energy source across the world

The use of biofuels varies by region. The world leaders in biofuel development and use are Brazil, United States, France, Sweden and Germany.

<span class="mw-page-title-main">Deforestation in Malaysia</span> Climate emergency issue in Malaysia

Deforestation in Malaysia is a major environmental issue in the country. British colonial deforestation efforts began in 1880 and were rapidly driven by commercial rubber and palm oil cultivation.

This article addresses various criticisms of Cargill Inc, a privately held agribusiness multinational giant with operations in 70 countries and its headquarters in Minneapolis, Minnesota, in the United States. Cargill Inc has been owned by the Cargill family for 154 years. It is the largest privately-owned corporation in the United States, with an annual revenue of $113.5 billion in 2019.

<span class="mw-page-title-main">Social and environmental impact of palm oil</span> Discussion of impact

Palm oil, produced from the oil palm, is a basic source of income for many farmers in South East Asia, Central and West Africa, and Central America. It is locally used as cooking oil, exported for use in much commercial food and personal care products and is converted into biofuel. It produces up to 10 times more oil per unit area than soybeans, rapeseed or sunflowers.

Wilmar International Limited is a Singaporean food processing and investment holding company with more than 300 subsidiary companies. Founded in 1991, it is one of Asia's leading agribusiness groups alongside the COFCO Group. It ranks amongst the largest listed companies by market capitalisation on the Singapore Exchange (SGX), being the second largest as of September 2010. It was ranked 211th in the Fortune Global 500 list in 2020. It was ranked 3rd in the World's Most Admired Company by Fortune in 2019.

<span class="mw-page-title-main">Deforestation in Indonesia</span>

Deforestation in Indonesia involves the long-term loss of forests and foliage across much of the country; it has had massive environmental and social impacts. Indonesia is home to some of the most biologically diverse forests in the world and ranks third in number of species behind Brazil and the Democratic Republic of Congo.

<span class="mw-page-title-main">Roundtable on Sustainable Palm Oil</span> Agreement on palm oil supply

The Roundtable on Sustainable Palm Oil (RSPO) was established in 2004 with the objective of promoting the growth and use of sustainable palm oil products through global standards and multistakeholder governance. The seat of the association is in Zürich, Switzerland, while the secretariat is currently based in Kuala Lumpur, with a satellite office in Jakarta. RSPO currently has 5,650 members from 94 countries.

<span class="mw-page-title-main">Energy in Indonesia</span>

In 2019, the total energy production in Indonesia is 450.79 million tonnes of oil equivalent, with a total primary energy supply of 231.14 million tonnes of oil equivalent and electricity final consumption of 263.32 terawatt-hours. From 2000 to 2021, Indonesia's total energy supply increased by nearly 60%.

<span class="mw-page-title-main">Palm oil production in Indonesia</span>

Palm oil production is important to the economy of Indonesia as the country is the world's biggest producer and consumer of the commodity, providing about half of the world's supply. In 2016, Indonesia produced over 34.6 million metric tons of palm oil, and exported 25.1 million metric tons of it. Oil palm plantations stretch across at least 12 million hectares. There are several different types of plantations, including small, privately owned plantations, and larger, state-owned plantations. There are a variety of health, environmental, and societal impacts that result from the production of palm oil in Indonesia. A recent publication by the NGO Rainforest Action Network (RAN) indicates that the use of palm oil by some of the biggest chocolate and snacks' producers is increasing this problem.

<span class="mw-page-title-main">Palm oil production in Malaysia</span>

Palm oil production is vital for the economy of Malaysia, which is the world's second- largest producer of the commodity after Indonesia. The Malaysian Palm Oil Board (MPOB) is a government agency responsible for the promotion and development of the palm oil sector in the country. The country's palm oil industry produces about 90 million tonnes of lignocellulosic biomass, including empty fruit bunches, oil palm trunks, and oil palm fronds, as well as palm oil mill effluent (POME). In 2010, in response to concerns about social and environmental impact of palm oil, the Malaysian Government pledged to limit palm oil plantation expansion by retaining at least half of the nation's land as forest cover.

<span class="mw-page-title-main">Musim Mas</span> Indonesian food processing company

Musim Mas Group is an Indonesian food processing company operating globally in the palm oil industry, with a presence in 13 countries spanning Asia-Pacific, Europe, North America, and South America. The group owns a significant network of palm oil refineries and is involved in vegetable oil refining. Additionally, it manufactures consumer goods such as soap and cooking oil brands in Indonesia. The company employes 37,000 people and utilizes a logistics network that includes chemical and coastal tankers, barges, tugboats, and bulk installations at major ports in Indonesia and other strategic locations worldwide.

Green imperialism is a derogatory epithet alluding to what is perceived as a Western strategy to influence the internal affairs of mostly developing nations in the name of environmentalism.

References

  1. Ahmad Parveez Ghulam Kadir (25 January 2023). "Fighting discriminative trade policies through CPOPC". New Straits Times. Archived from the original on 24 March 2023. Retrieved 21 March 2023.
  2. 1 2 3 Rival, Alain; Montet, Didier; Pioch, Daniel (2016). "Certification, labelling and traceability of palm oil: can we build confidence from trustworthy standards?" (PDF). Oilseeds & Fats Crops and Lipids. 23 (6): 8. doi:10.1051/ocl/2016042. Archived (PDF) from the original on 20 October 2021. Retrieved 24 March 2023.
  3. 1 2 Pacheco, Pablo; Schoneveld, George; Dermawan, Ahmad; Komarudin, Heru; Djama, Marcel (May 2017). "The public and private regime complex for governing palm oil supply". CIFOR Infobriefs. 174. doi: 10.17528/cifor/006464 . Archived from the original on 24 March 2023. Retrieved 24 March 2023.
  4. 1 2 3 4 "Regional perspective and challenges of the oil palm industry and GFP-SPO" (PDF). Council of Palm Oil Producing Countries. 29 September 2022. Archived (PDF) from the original on 24 March 2023. Retrieved 21 March 2023.
  5. 1 2 "Malaysia invites Thailand to become CPOPC member". The Sun Malaysia. 28 February 2023. Archived from the original on 24 March 2023. Retrieved 15 March 2023.
  6. "Indonesia welcomes Honduras as CPOPC's third member state". Antara News. 18 May 2023. Retrieved 10 August 2023.
  7. "Four countries set to join CPOPC as full members in May, says exec director". Malay Mail. 5 December 2021. Archived from the original on 24 March 2023. Retrieved 15 March 2023.