Sabah’s Green Palm Oil Ambitions Under JCSPO is Failing. Now what?
Rainforests to palm oil in Sabah: Mongabay
- - Sabah’s grand ambition of becoming “the first region in the world to feature Jurisdictional Certified Sustainable Palm Oil (JSCPO)” is failing.
- - Blame it on the EU’s Deforestation Regulations (EUDR).
- - The RSPO introduced the concept of Jurisdictional Certified Sustainable Palm Oil (JCSPO) as primary palm oil producing countries Indonesia and Malaysia introduced their own versions of CSPO under the ISPO and MSPO in 2011 and 2013 respectively.
Winning big as the world’s first green palm oil state, as REUTERS reported in 2022 on Sabah, is a pipe dream now with the EUDR in place. Defining sustainable commodities like palm oil, cocoa or beef, is out of the realm of voluntary certifications by non-profit groups, albeit those with the support of state officials.
For Sabah state, the EUDR impacts more than its palm oil production as the EUDR also targets timber. The timber industry in Sabah remains a top source of revenue along with palm oil but has left a poor legacy according to Mongabay. Sabah’s local Timber Legality Assurance program is questionable as fit for EUDR according to the industry.
It is obvious that Sabah needs the force of the federal government to support its regional programs for sustainable commodities. The two reports below, show how EUDR should be dealt with, on a G2G level instead of merely focusing on one commodity from one producing state.
As for Sabah’s JCSPO dream, a new report from Mongabay, shows just how close, Sabah is, to failing its stated ambition of becoming a world leader in producing sustainable palm oil.
In May, 25 members of a growers’ cooperative in the Tawau region of Sabah became the first in Malaysia to receive certification as a group from the Roundtable on Sustainable Palm Oil.
Though a small step, it was an important milestone in realizing Sabah’s ambitions for statewide certification.
A new certification paradigm
In 2015, Sabah, a Malaysian state on the island of Borneo, became the world’s first region to pilot a jurisdictional certification approach to sustainable palm oil (JCSPO), when the government committed to reaching 100% RSPO certification by 2025. Adopting this model means a significant shift to focus on the sustainability of the landscape as a whole, rather than focusing on certifying individual estates.
Having only 25 members of a cooperative getting certification by the RPSO is bad news considering there are some 500, 000 smallholders in the Malaysian palm oil industry.
The more notable certification paradigm, was the introduction of the Malaysian Sustainable Palm Oil (MSPO) scheme, as an alternative to the RSPO.
A dynamic paradigm shift took place when the Malaysian government upped the certification industry for palm by making it a mandatory scheme in 2017.
The removal of the voluntary aspect was seen as a necessary measure to create confidence in certified sustainable palm oil. The problem with voluntary certification schemes had been identified as early as 2008 when REUTERs reported that:
The issue of “green” palm remains contentious and some conservation groups argue that the current voluntary rules are ineffective in protecting the environment.
National Standards vs Voluntary Programs
The introduction in Mongabay’s new article spelled out how Sabah will fail in its dreams for JCSPO with the RSPO.
The only feasible way for Sabah state to become “the first region in the world to pilot such a jurisdictional approach,” will be if Sabah state uses the MSPO as a standard.
The Malaysian Palm Oil Certification Council (MPOCC) which oversees certification under MSPO, had already noted in 2017, that RSPO is a business-to-business arrangement and voluntary in nature, whereas the MSPO, is a national certification scheme which takes into account domestic laws and regulations, and best practices relating to sustainable production of palm oil.
Regardless of what the WWF may claim, the group does not the means or wherewithal to help Sabah state achieve its goal.
It maybe an appealing fundraiser for the WWF but it should be said here that the debate over whether any deforestation should be allowed for sustainable palm oil is definitely way out of what the WWF or the RSPO can influence as Malaysia stands firmly on the UN’s SDGs in defining sustainable palm oil.
Voluntary certification, even in a jurisdictional approach, has meanwhile been ripped into by Indonesian NGOs. Indonesian NGO, PUSAKA gave ten reasons for the EU to reject certification schemes for the EU’s anti Deforestation Regulations.
The most telling of PUSAKA’s statement is that voluntary “Certification directs resources towards a million-dollar certification industry, while community and smallholder forest and agriculture management are extremely underfunded.”
In contrast, the Malaysian government has allocated funding in its federal budget to help its smallholders to attain MSPO certification.
The achievements of the federal funding to include smallholders in the MSPO program can be seen in this report by Statista. Media reports show that Independent smallholders numbering 174,347 covering 621,269 hectares (ha) nationwide have received the Malaysian Sustainable Palm Oil (MSPO) certification as of June 30, 2022. The latest report shows implementation of MSPO for private smallholders under the supervision of MPOB included 196,607 smallholders with an area of 736,822ha across the country as of September, 2023.
It should be noted at this point, that the success of the MSPO in certifying smallholders in Malaysia, was achieved through the means of group certifications (Sustainable Palm Oil Clusters). The Malaysian Palm Oil Board (MPOB) which was tasked with the certification of smallholders was well aware that the average smallholder may lack the necessary technical and financial resources to meet certification requirements.
While the RSPO may poach the MSPO’s concept of group certification to include more smallholders, voluntary certification to meet the EU’s demands, whether in Deforestation Regulations or Corporate Sustainability Due Diligence Directive, is a dead issue.
As the EU struggles in its trade deal negotiations, the EU-MERCOSUR negotiations will set an example for EU-ASEAN negotiations as written by Bettina Rudloff and Tobias Stoll for SWP Berlin.
For example, the EU should – for reasons of synergy and even more as a sign of appreciation – make greater efforts to utilise and at the same time support existing sustainability approaches on the Mercosur side, such as own certification
These are the same arguments that Malaysia and Indonesia have presented in the context of the EU’s unilateral decisions on greening its imports.
Sabah state maybe one of the biggest palm oil producing regions in Malaysia but if the state government hopes to keep the dream of a “green palm oil state” alive, it would be well advised to drop the JCSPO goal under the RSPO and up its game now with the MSPO.
Published October 2023-CSPO Watch
For Sabah state, the EUDR impacts more than its palm oil production as the EUDR also targets timber. The timber industry in Sabah remains a top source of revenue along with palm oil but has left a poor legacy according to Mongabay. Sabah’s local Timber Legality Assurance program is questionable as fit for EUDR according to the industry.
It is obvious that Sabah needs the force of the federal government to support its regional programs for sustainable commodities. The two reports below, show how EUDR should be dealt with, on a G2G level instead of merely focusing on one commodity from one producing state.
- The demand for an equitable EU-ASEAN green deal as reported by Brasukra G Sudjana, Vriens and Partners and Cazadira F Tamzil, Pijar Foundation.
- EU Deforestation Regulation must address Africa’s needs by Abraham Baffoe, Africa and Global Director, from Proforest.
As for Sabah’s JCSPO dream, a new report from Mongabay, shows just how close, Sabah is, to failing its stated ambition of becoming a world leader in producing sustainable palm oil.
In May, 25 members of a growers’ cooperative in the Tawau region of Sabah became the first in Malaysia to receive certification as a group from the Roundtable on Sustainable Palm Oil.
Though a small step, it was an important milestone in realizing Sabah’s ambitions for statewide certification.
A new certification paradigm
In 2015, Sabah, a Malaysian state on the island of Borneo, became the world’s first region to pilot a jurisdictional certification approach to sustainable palm oil (JCSPO), when the government committed to reaching 100% RSPO certification by 2025. Adopting this model means a significant shift to focus on the sustainability of the landscape as a whole, rather than focusing on certifying individual estates.
Having only 25 members of a cooperative getting certification by the RPSO is bad news considering there are some 500, 000 smallholders in the Malaysian palm oil industry.
The more notable certification paradigm, was the introduction of the Malaysian Sustainable Palm Oil (MSPO) scheme, as an alternative to the RSPO.
A dynamic paradigm shift took place when the Malaysian government upped the certification industry for palm by making it a mandatory scheme in 2017.
The removal of the voluntary aspect was seen as a necessary measure to create confidence in certified sustainable palm oil. The problem with voluntary certification schemes had been identified as early as 2008 when REUTERs reported that:
The issue of “green” palm remains contentious and some conservation groups argue that the current voluntary rules are ineffective in protecting the environment.
National Standards vs Voluntary Programs
The introduction in Mongabay’s new article spelled out how Sabah will fail in its dreams for JCSPO with the RSPO.
- In 2015, the government of Sabah in Malaysian Borneo committed to gaining sustainability certification for 100% of the state’s palm oil by 2025, becoming the first region in the world to pilot such a jurisdictional approach.
- As the deadline nears, getting smallholders certified has proved to be a major challenge; out of an estimated 30,000 smallholders in the state, just 885 have been certified.
- The certification process can be difficult and expensive for small farmers, but NGOs like WWF are working to overcome this barrier by supporting growers’ cooperatives.
- Other obstacles in the statewide certification process include debate over whether any deforestation should be allowed for oil palm, and the continued issuance of licenses to clear forest in the state.
The only feasible way for Sabah state to become “the first region in the world to pilot such a jurisdictional approach,” will be if Sabah state uses the MSPO as a standard.
The Malaysian Palm Oil Certification Council (MPOCC) which oversees certification under MSPO, had already noted in 2017, that RSPO is a business-to-business arrangement and voluntary in nature, whereas the MSPO, is a national certification scheme which takes into account domestic laws and regulations, and best practices relating to sustainable production of palm oil.
Regardless of what the WWF may claim, the group does not the means or wherewithal to help Sabah state achieve its goal.
It maybe an appealing fundraiser for the WWF but it should be said here that the debate over whether any deforestation should be allowed for sustainable palm oil is definitely way out of what the WWF or the RSPO can influence as Malaysia stands firmly on the UN’s SDGs in defining sustainable palm oil.
Voluntary certification, even in a jurisdictional approach, has meanwhile been ripped into by Indonesian NGOs. Indonesian NGO, PUSAKA gave ten reasons for the EU to reject certification schemes for the EU’s anti Deforestation Regulations.
The most telling of PUSAKA’s statement is that voluntary “Certification directs resources towards a million-dollar certification industry, while community and smallholder forest and agriculture management are extremely underfunded.”
In contrast, the Malaysian government has allocated funding in its federal budget to help its smallholders to attain MSPO certification.
The achievements of the federal funding to include smallholders in the MSPO program can be seen in this report by Statista. Media reports show that Independent smallholders numbering 174,347 covering 621,269 hectares (ha) nationwide have received the Malaysian Sustainable Palm Oil (MSPO) certification as of June 30, 2022. The latest report shows implementation of MSPO for private smallholders under the supervision of MPOB included 196,607 smallholders with an area of 736,822ha across the country as of September, 2023.
It should be noted at this point, that the success of the MSPO in certifying smallholders in Malaysia, was achieved through the means of group certifications (Sustainable Palm Oil Clusters). The Malaysian Palm Oil Board (MPOB) which was tasked with the certification of smallholders was well aware that the average smallholder may lack the necessary technical and financial resources to meet certification requirements.
While the RSPO may poach the MSPO’s concept of group certification to include more smallholders, voluntary certification to meet the EU’s demands, whether in Deforestation Regulations or Corporate Sustainability Due Diligence Directive, is a dead issue.
As the EU struggles in its trade deal negotiations, the EU-MERCOSUR negotiations will set an example for EU-ASEAN negotiations as written by Bettina Rudloff and Tobias Stoll for SWP Berlin.
For example, the EU should – for reasons of synergy and even more as a sign of appreciation – make greater efforts to utilise and at the same time support existing sustainability approaches on the Mercosur side, such as own certification
These are the same arguments that Malaysia and Indonesia have presented in the context of the EU’s unilateral decisions on greening its imports.
Sabah state maybe one of the biggest palm oil producing regions in Malaysia but if the state government hopes to keep the dream of a “green palm oil state” alive, it would be well advised to drop the JCSPO goal under the RSPO and up its game now with the MSPO.
Published October 2023-CSPO Watch
Update October 08, 2023
Since the publication of our opinion above, Malaysian media published a new report on Sabah's relationships with the federal government, which supports the call for Sabah to support the federally mandated, MSPO in its dreams of a becoming a green palm oil state.
Quoting Firdausi Suffian, from Sabah's UiTM
Strong federal-state collaboration lies behind the significant economic progress made by Sabah since Hajiji Noor became the chief minister, says Firdausi Suffian.
Political analyst, Oh Ei Sun, was also quoted as saying "Sabah’s government has a history of aligning itself with the federal government, which has contributed to its economic growth."
Sabah's palm oil production stands to lose out if it chooses to pursue state level quality assurance with the RSPO when the MSPO makes a more convincing case in the EUDR.
The MoU signed between Nestlé, the world's world's biggest food and beverage company with the Malaysian Cocoa Board, to promote sustainable regenerative agriculture by cocoa farmers in Sarawak, is a good example of how foreign buyers are leaning towards certification programs that are managed under national mandates for sustainability.
Since the publication of our opinion above, Malaysian media published a new report on Sabah's relationships with the federal government, which supports the call for Sabah to support the federally mandated, MSPO in its dreams of a becoming a green palm oil state.
Quoting Firdausi Suffian, from Sabah's UiTM
Strong federal-state collaboration lies behind the significant economic progress made by Sabah since Hajiji Noor became the chief minister, says Firdausi Suffian.
Political analyst, Oh Ei Sun, was also quoted as saying "Sabah’s government has a history of aligning itself with the federal government, which has contributed to its economic growth."
Sabah's palm oil production stands to lose out if it chooses to pursue state level quality assurance with the RSPO when the MSPO makes a more convincing case in the EUDR.
The MoU signed between Nestlé, the world's world's biggest food and beverage company with the Malaysian Cocoa Board, to promote sustainable regenerative agriculture by cocoa farmers in Sarawak, is a good example of how foreign buyers are leaning towards certification programs that are managed under national mandates for sustainability.
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