Stakeholder Perceptions of the Ecosystem Services and Human Well-Being Impacts of Palm Oil Biofuels in Indonesia and Malaysia

Abstract

While the rapid expansion of palm oil cultivation in Indonesia and Malaysia over the last decades has contributed to rural development, serious negative impacts have occurred. As a response, sustainability certification schemes such as the Roundtable on Sustainable Palm Oil (RSPO) have been established. Yet the connections of the oil palm industry with regard to biofuels are complex, and the capacity of certification to truly reduce social and environmental impacts remains questioned. The aim of the chapter is to assess how oil palm production affects the local environment and human well-being, so as to contribute to the ongoing debate regarding the potential role of palm oil biofuel to clean energy provision and local development. We first provide an in-depth literature review about the impacts of oil palm cultivation and palm oil biodiesel production/use for ecosystem services, biodiversity, and human well-being. We then draw on empirical data from RSPO stakeholders regarding their perceptions about the extent/severity of those impacts and the potential of the industry to mitigate them. Our study shows how palm oil biodiesel production/use impacts biodiversity and several ecosystem services in Malaysia and Indonesia, which in turn can compromise the well-being of the local communities that rely upon them. Findings suggest that, far from being homogeneous, RSPO’s stakeholders’ perceptions are very divergent, particularly regarding the industry’s impact on climate and biodiversity. Reconciling these different perceptions is the first step for coming up with mutually acceptable standards and will be the great bet for certification schemes in the future.