The Complex Nexus of Palm Oil, Forestry, and Environment: A Review on Evidence-Based Pathways Toward Sustainable Palm Oil Implementation

Abstract

Palm oil has emerged as one of the most contested yet economically vital commodities in the global South, particularly in Indonesia and Malaysia, where it supports millions of livelihoods and contributes significantly to national economies. However, its expansion has been persistently allegedly linked to deforestation, biodiversity loss, and environmental disasters, creating polarized narratives that often obscure empirical realities. This qualitative literature review critically examines the multifaceted relationships between oil palm cultivation, forestry, and environmental outcomes within the framework of sustainable palm oil implementation. Synthesizing peer-reviewed evidence published since 2020, we analyze spatial production landscapes, ecological trade-offs, and the effectiveness of sustainability governance mechanisms, including the Roundtable on Sustainable Palm Oil (RSPO) and Indonesian Sustainable Palm Oil (ISPO) standards. Our findings reveal that while oil palm has historically driven deforestation, recent trends show a decoupling of plantation expansion from forest loss, with declining deforestation rates following policy interventions and market commitments. The ecological impacts of oil palm are highly context-dependent: converting peat swamp forests generates substantial greenhouse gas emissions and fire risks, whereas expansion on degraded mineral soils entails lower environmental costs