Information sheet on palm oil & peatlands

This paper shines light on the issue of greenhouse gas emissions due to conversion of areas with peatsoils for palm oil production, including for biodiesel. The paper will focus on palm oil in Southeast Asia; the most relevant area for vegetable oil production on peatlands, with alarming greenhouse gas emissions as a result.

Biofuel use and palm oil production on peatlands

Increasing demands for vegetable oil have led to a massive expansion in palm oil production. Increased biodiesel use in for instance Europe, will add directly to this global growth in demand, in prices and in production areas. Of all vegetable oil crops, palm oil is the most productive, with by far the highest energy yields per hectare.

In the main production countries; Indonesia and Malaysia, wetland areas with peatsoils qualify very well for palm oil production. Now with techniques to drain them, these are the areas where around 50% of all new large plantations are established.

Palm oil and carbon dioxide emissions: peatlands are the crucial factor

For greenhouse gas emissions caused by plantations, it does matter if it is a virgin forest that is turned into a plantation, or an already logged forest area. But even more important is the question whether it is on peatsoils or not. In peatswamp forest areas that were logged in the past, the remaining peat - carbon stocks are still huge and generally larger than the pristine forest cover. This carbon stock is rapidly lost due to drainage inpalm oil plantations.