Palm oil production is a key industry in tropical regions, driven by the demand for affordable vegetable oil. Palm oil production has been increasing by 9% every year, mostly due to expanding biofuel markets. However, the oil palm industry has been associated with key environmental issues, such as deforestation, peatland exploitation and biomass burning that release carbon dioxide (CO2) into the atmosphere, leading to climate change. This review therefore aims to discuss the characteristics of oil palm plantations and their impacts, especially CO2 emissions in the Southeast Asian region. The tropical climate and soil in Southeast Asian countries, such as Malaysia and Indonesia, are very suitable for growing oil palm trees. However, due to the scarcity of available plantation areas deforestation occurs, especially in peat swamp areas. Total carbon losses from both biomass and peat due to the conversion of tropical virgin peat swamp forest into oil palm plantations are estimated to be around 427.2 ± 90.7 t C ha−1 and 17.1 ± 3.6 t C ha−1 year−1, respectively. Even though measured CO2 fluxes have shown that overall, oil palm plantation CO2 emissions are about one to two times higher than other major crops, the ability of oil palms to absorb CO2 (a net of 64 tons of CO2 per hectare each year) and produce around 18 tons of oxygen per hectare per year is one of the main advantages of this crop. Since the oil palm industry plays a crucial role in the socio-economic development of Southeast Asian countries, sustainable and environmentally friendly practices would provide economic benefits while minimizing environmental impacts. A comprehensive review of all existing oil plantation procedures is needed to ensure that this high yielding crop has highly competitive environmental benefits.
A Review of Southeast Asian Oil Palm and Its CO2 Fluxes