TRADE Hub Initiative Reveals Link between Palm Oil Trade and Deforestation Globally

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Illustration of oil palm plantation. Photo by: Sawit Fest 2021 / Anwarudin

PALMOILMAGAZINE, JAKARTA – The initiation of the Trade, Development, and the Environment Hub (TRADE Hub) aims to uncover the repercussions of deforestation linked to agricultural commodity trade across various tropical regions. According to its research, 35% of global deforestation is attributed to the demands for agricultural commodities worldwide.

As reported by Kabar Hutan and the Center for International Forestry Research (CIFOR), Fabiana Spinelli, the Synthesis and Data Officer for TRADE Hub at the United Nations Environment Programme World Conservation Monitoring Centre (UNEP WCMC), presented these findings during a regional stakeholders’ consultation event held in Jakarta, Indonesia, on September 26-27, 2023. In this consultation, TRADE Hub outlined a roadmap towards achieving fair and sustainable global trade in agricultural commodities and wildlife.

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Meanwhile, Senior Programme Officer for Nature and Trade, UNEP-WCMC, Lisen Runsten mentioned that the roadmap would be developed by involving deep studies about the trade system challenges which take place, identifying the main stakeholders, and mapping the power dynamic and responsibility in the system.

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Senior scientist of Center for International Forestry Research dan World Agroforestry (CIFOR-ICRAF), Herry Purnomo that manages TRADE Hub in Indonesia said the imbalance power between marketers and agricultural commodity producers. He emphasized the connection complexity among the power, economy, and trade in the industries within case sample in palm oil sector.

Edi Suhardi, the representative in sustainability, Indonesian Palm Oil Association said that it is important to implement ethics and principles when having trade. Edi also revealed the gap between certified sustainable palm oil production and market access and hoped that the research result by TRADE Hub would help to harmonize the producers’ will and market demands, create more sustainable palm oil trade.

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Mansuetus Darto, General Secretary of Serikat Petani Kelapa Sawit to that the smallholders’ roles in sustainable palm oil practices. But he also told it needs to get supports from the government and companies to get partnership and confirm sustainability in district level. (T2)

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