Adapting Global Palm Oil Deforestation-free Trade to Benefit Local Economies and Landscapes

Abstract

Key messages Current practices in palm oil production and trade result in economic and conservation trade-offs. There is an established link between global green deals and environmental certification in palm oil and local economic downturns and environmental benefits in palm-oil-producing countries. This brief recommends that all palm oil producing and market countries adopt policies and practices that align with the UK and EU’s green deal initiatives and the Roundtable of Sustainable Palm Oil certification. Key interventions, which include carbon trading or taxes, ecological fiscal transfers, payments for ecosystem services, and premium palm oil pricing, are necessary to compensate for economic losses at the local landscape.