South-east Asia palm oil reform pressure will grow
Subject Palm oil sector in South-east Asia. Significance Indonesia, the world's largest palm oil producer, said in August that it would accelerate efforts to impose sustainable environmental practices in vulnerable wetlands, following a weak response from growers. The government fears that the industry may be shut out of advanced markets as international certification systems develop, and new plantation areas begin to challenge South-east Asia's dominance of supply. Impacts Utilising new palm oil plantation areas will require new transport infrastructure. Moves to increase use of biofuels will not necessarily benefit the palm oil sector. Global pressure will grow for rigorous certification systems, but this could hit smaller growers with higher operating costs.